Reference no: EM131751826

Scenario You are the global marketing vice president at Dyson. You have been asked to attend a meeting with James Dyson, the company's founder. Dyson's CEO and the head of Dyson's New Product Innovation department will also be in attendance. "Thanks for meeting with me today," James says. "Market intelligence has shown that our major competitors—Hoover, Shark, and Bissell—are all developing new cordless vacuum cleaners with a longer battery life than what's currently available." James Dyson looks to you: "I need you to participate in a new cross-functional product development team that will research the feasibility of creating a cordless vacuum cleaner that works for one hour on a single charge. We also need to know if there's even a market for this type of vacuum," he says. "We envision that this new vacuum will be used primarily in the home, but keep in mind, we want to be able to adapt it easily and cheaply for light commercial use. One way of doing this is by using swappable battery packs." "Have an actionable marketing plan ready for me in three weeks," James says. You know that to give the CEO the most thorough report, you'll need to conduct an internal analysis of Dyson and an environmental scan for the new vacuum cleaner. You'll need to have a detailed plan for identifying marketing opportunities, and you'll need to research the home and commercial vacuum cleaner industry, market trends, and Dyson's major global competition.

In the 1960s, the 4Ps of marketing (product, price, promotion, and place or distribution) were developed. The 4Ps are also referred to as the marketing mix. Any change to one of these components was thought to have a profound effect on the other three components. The concept of marketing mix still exists, but today we think about it in a more sophisticated way. The product is now defined in the context of the company's overall offering, which may include a bundle of products and/or services under strong branding. Marketers today are "more focused on solutions than products" (Marshall & Johnston, 2011, p. 12). Place has shifted to include the notion that sophisticated integrated supply chains are crucial to a business' success. Today, price is widely regarded in terms of value. Finally, the Internet and high-tech advanced digital promotional tools have totally changed the concept, scope, and the outreach of promotion (Marshall & Johnston, 2011).

Describe how you would develop the marketing strategy for the new Dyson vacuum cleaner. Given your target market (or markets) and positioning strategy, what factors would you consider when deciding on the marketing strategy for the initial introduction of the new vacuum cleaner? Creating a marketing strategy involves a series of interrelated decisions. See the marketing plan template for a sequence that is used by many organizations.

First, you'll need to consider product or brand strategy. Keep in mind the needs/wants of your target and how you've decided to position your product relative to the competition. Make a plan to develop a detailed product description, that includes all attributes and features of the product. The description should also include the product's brand name, intended packaging, logo, and supplemental products. As you make these branding strategy decisions, it is imperative that you stay focused on the consumer. Remember that Dyson's consumers do not buy features; they buy benefits, both tangible and intangible. It is also critical to understand the consumer: Who makes the purchase? Who influences that decision?

Next, you'll want to think about pricing strategy. Pricing is very strategic as it is the only marketing mix variable that generates income for Dyson. As vice president of marketing, you need to decide on your price objectives and strategies; consider pricing tactics like discounts, bundling, and incentives. When developing a new product, you need to decide whether your initial pricing strategy should be one of skimming, premium, or market penetration. Take into consideration the nature of the vacuum cleaner industry, your competition, and your product. Profit margins and a breakeven analysis will also need to be considered; as well as the perceived value of the product as you determine your final price point. Describe how you would go about making these decisions, and the major issues involved.

Then you'll need to consider distribution and supply chain strategy. These strategic decisions all deal with how consumers acquire your product. Will you market directly to consumers, or have a number of intermediaries? What channels and intermediaries will you use? Will you use exclusive, selective, or intensive distribution? Are you going to promote and sell the vacuum cleaners online? Distribution decisions focus on marketing channels as well as the physical distribution of the vacuum cleaner. Explain the criteria you would use to make these distribution and supply chain strategy decisions.

Finally, you should consider your integrated marketing communications and promotion strategy. The marketing communications and promotion strategy is often the most visible element of a marketing strategy. Dyson's communication strategy involves developing an integrative mix of a number of different tools at your disposal, while keeping in mind the needs and characteristics of the target market(s). The Internet and social media play a crucial role in many product categories and with many consumers. But, you should not fail to consider traditional communication elements such as advertising, personal selling, sales promotion, and publicity/public relations. It is essential that your promotion objectives are clearly defined, and that a holistic and integrated marketing communication approach is used.

Milestone 5: Submit a four-page report outlining how you would develop your marketing mix strategy.