CASE ANALYSIS - DYSON
- What is Dyson’s product strategy?
Dyson’s product strategy started way back in mid 1990s when he offered the bagless technology as a way of adding value to his customers and later designed these bags with art decorations and he took it into the market mix. He continued to be more innovative as he now based his marketing strategy on producing highly quality products that are more convenient at a finest price. He used the media to advertise his product but he basically focused on the use of word of mouth and positive media reporting which ensured that he did not spend too much on advertising (Carruthers 2007).
Dyson in his struggle to shift from the long-established vacuum cleaner into the latest robot vacuum cleaner, he decided to place electronics at the centre core of its product developmental strategy. This has seen the company expanding to an extent of increasing more use on the hardware and the software. As the consumer product is increasing its popularity it has attracted the establishment of exploration and developmental centers that are involved in supporting the developing electronic design practice (Zizzo 2015). He has therefore applied much of research and development (R&D) in his market strategy. Throughout his business career he has remained consistent identifying the competitors’ changes and renewing his products but he has remained consistent all through his market strategy which has enabled him to be superior in his financial performance.
- Do Dyson’s new products enhance that strategy? How?
Dyson’s new product has enhanced the use of the product strategy in so many ways. The company has used so much of R&D strategies as the company regards the incorporation of the hardware and the software as so essential in the development of product hence the company advocates for more mastering on the use of technology (O'Brien 2015). In their research and development program they have come up with a strategy that they are planning to implement in homes through the use of intelligence and robotic technology so as to innovate a new standard of intelligent product. The company has ensured that the new product that is the vacuum cleaner is of higher quality than any other product in the market and that it is convenient while the price is at its finest as compared to its competitors.
- How does Dyson differentiate its products? Is it effective? Why?
The company uses technical and well-designed characteristic of the product to position them as finest appliances that are able to compete with other competitors products. Their products are differently designed using aesthetic designs that outstands that of others. The products especially the newly innovated are created in such a way that they possess unique characteristics than other goods and they also have additional advantages to the consumers. After a while the company usually modifies their existing products into better goods while others are newly created (Zizzo 2015). The company’s products are designed to suite the consumers needs and wants as the company engages in an in-depth research on customers specification before production thus they are able to cater for the market effectively. This method of product differentiation is relevant and effective as it sets apart the company from others hence attracting so many customers who are interested in unique properties and highly quality goods. This ultimately results in positive and high rating that attracts other potential customers in the business and in the end the company ends up having so many demands to supply to hence more sales.
- Discuss the impacts of the product lifecycle on Dyson products?
Dyson’s products are involved in several stages in which their new products evolve with time and this process is referred to as the product life cycle. Most of the products in Dyson must follow this cycle. Immediately after Dyson develops a product, they introduce it in the market. This is where the product is made known to the public and the launching process may occur on media or on showcasing event. At the introduction phase there is minimal pressure on profit, however, the company offers promotions to the public with an intention of creating awareness. This process influences the market mix and plan by only distributing goods to the selected customers until the product is accepted that’s when the distribution becomes extensive. Marketing communication is at per so as to create product awareness. There is the establishment of brand and its quality in this stage. The product starts to gain popularity as people starts consuming the product and with time the product grows. When the product has been fully accepted that’s when its sales start increasing with so much pressure from the company for profit. This stage allows the improvement of the products quality and features so as to increase the growth rapidly. At this phase, the competitors may decide to join in the market thus lowering the demand thus the profit. This may lead to the company reducing some of its prices so as to attract their customers. Maturity phase in the company marks the stage when the company makes a turning point in the success of the product in the company.
This phase encourages the aspect of product differentiation where the distribution now turns to be intensive. There is low profits gained and this leads to the decline stage where profitability is at its lowest. This stage results to the discontinuing of sale in the Dyson Company. This marks the last product life cycle in the company. However it is at this point that the company decides to produce a totally new product and the phase begins a fresh.
- Role does pricing play in the product strategy?
Product pricing is core to the success of any business. Therefore for the Dyson’s company they produce their goods at high prices since their products are of high value. This therefore associates the company with an image that portrays that the company produces goods of relatively high quality. Use of prestige pricing allows a company to become more of a tolerant perspective to associate with consumers perceptions. The pricing strategy in Dyson Company uses the best significance of the organization’s projected sales targets and marketing goals. However, price may appear as the core restriction to buyers.
- Discuss the implications of new competitor like Shark on Dyson’s product strategy.
The emergence of Shark as the new competitors in the market, the production of similar product scenario occurs hence resulting to more of competition. Dyson therefore had to lower their pricing so as to be able to be able to compete with Shark. They had also to change some of their market strategies such as the product differentiation strategy so as to be competent.
References
Carruthers, I. (2007). Chapter 8: Marketing: The Dyson Way. In , GBS: Dyson (pp. 141- 166). Marshall Cavendish Limited.
O'Brien, A. (2015). Creative force. Money (Australia Edition), (179), 20-22.
Zizzo, C. (2015). Dyson on fast electronics trajectory. Electronics Weekly, (2613), 10-11.
