Business plan for dyson free essay sample

Vacuum cleaners are among the household appliances that are earning global popularity. The market of vacuum cleaners was a bit low before 2010, but the market has risen steadily. This prospect shows that innovations and improvements on vacuum cleaners, will be necessary, in order to cater for the growing market needs. In addition, there is an opportunity in the vacuum cleaners market, which vacuum cleaners manufacturing companies should exploit. One of the most popular vacuum cleaner companies is Dyson Ltd, which has earned popularity in U. K., due to its innovations. The market requires an efficient, high quality, user friendly, eco-friendly and less noisy vacuum cleaner. Product development is a crucial aspect, in achieving sustainability, competitiveness and profitability. Dyson Company is a technology company that deals with designing and manufacturing hand dryers, heaters, vacuum cleaners and bladeless fans. The Company is well-known due to its innovations, which intends to improve customer experience. We will write a custom essay sample on Business plan for dyson or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Dyson has been extremely proactive in market development over the years, and its innovation. As a result, Dyson Company has dominated the UK market and achieved profitability and competitiveness. Market development is complex and requires major adjustment in the mindsets, in order to be successful. In order to establish a new product, combinations of factors are necessary. These include business planning, competitor awareness, market research, product development, market awareness, lifecycle management, customer awareness, acquisitions, forecasting and alliances (Grundy, Tony and Brown 65). In addition, growth drivers, motivation, business strategy and Porter’s five forces, are useful techniques. Dyson Company is well known for its innovations and development of a cylinder cleaner from DC01 up to DC50, is among the examples of Dyson innovations. This product aims at enhancing market attractiveness of vacuum cleaners. DC50 upright vacuum cleaner was developed from the existing DC series, in order to appeal to the market. Dyson carries out market research and uses the feedback from the customers and the needs of the international and national market. Dyson Company is developing a vacuum cleaner that is different from those vacuum cleaners that are present in the market. In order to achieve this objective, the Company has embarked on a short-term goal, which will take one year. The new product development team will work together, using creativity, in order to come up with a product that would fulfill the needs of the customers. Vacuum cleaners are used at home and offices, which makes the market broader. The Company will embark on awareness campaigns and after official launching of the product, the marketing department will engage in various promotional activities. The vacuum cleaner will be user friendly, high quality and cost effective. In addition, it will be an energy saving, which will greatly reduce the electricity bills for the customers. Customers require a product that will fit their needs as well as being fairly priced. 2. Corporate Objectives The corporate strategy starts with a vision, and alignment of the vision with other factors that will lead to achievement of the goal. Dyson Company has a culture of supporting and motivating the employees to achieve the organizational goals. This helps the employees to be more creative and come up with ideas that lead to the development of new products. The Company aims to be among the leading companies in the world, by innovations and improvements of the existing products, to meet the needs of a diverse market. The Company objective acts a guideline to the employees, to innovate products that will be launched in the market. The development and launching of the new products process is a short-term objective, and will take one year. In the first three months, the product will be developed and tested within the company. After this, the product will be taken to the potential buyers, in order to seek their feedback, concerning the product. This will help in making the necessary amendments, in order to enhance the experience of the customers. Dyson has a culture of creativity and innovation, which originated from its founder (Gottlieb 38). The employees are highly encouraged and empowered to be innovative, which has enhanced the success of the company, in the dynamic business environment. Being a highly innovative Company, Dyson will ensure that the new vacuum cleaners will meet the needs of the consumers. In addition, Dyson culture of innovation will come in handy, in case the product is not profitable as initially presumed. This means that the Company can find other alternative products within a shorter time, since they continuously innovate and improve on their products. 3) Market Overview The vacuum cleaner market has become more globalised, compared to other household appliances. Dyson Company is targeting the bag less vacuum market, which according to Jose has great growth prospects. Jose further argues that there is an increase in demand for the vacuum cleaners (Jose 1). However, customers are demanding eco-friendly, ergonomic, efficient and models that produce less noise. According to Transparency Market research, the worldwide vacuum cleaner market will grow and reach US $13. 22 billion value, by 2015 (Transparency Market research 1). This growth is enhanced by elements such as innovations and development of efficient and advanced appliances and increase in income levels of many households. The market volume of vacuum cleaners has increased continually from 2011 and 2012 (Bodimeade 1). The vacuum cleaners market will become more promising in future, due to the innovations and marketing efforts that are being placed in the vacuum cleaner market. Hence, Dyson innovative vacuum cleaners have great future prospects, since they are made of high quality, effective and eco-friendly technology. In addition, Dyson has a strong brand reputation in the UK and enjoys support from its customers. This will help in enhancing the company’s competitiveness, since many customers will remain royal to the Company, over the other competitors and new market entrants. Dyson Company can use this strength and its innovative culture to stay ahead of competition. Market research, which will be conducted during the first five months, will reveal key competitors and their marketing strategies. The market for vacuum cleaners is quite broad since the machine can be used in offices, homes, hotels, hospitals, schools and other institutions. The new product has national and international prospects, and the Company can market the product globally, in order to maximize on the profits. At the initial stages, the company will conduct a market research, in order to establish the market needs. In the fifth month, the Company will use the consumer feedback to make the necessary changes, before the product is finally launched. The new product will be user friendly, cost effective and of high quality, which will make cleaning easier. In addition, the Company will ensure that the customer get after sales services and guarantee for the product. This will help in building customer trust and increase loyalty from the customers. The market environment of vacuum cleaners was as conducive before the year 2010. However, much has changed since 2010 and the market has grown continually. The future of vacuum cleaners will continue growing due to the increase in income levels of the people and shifts in consumer needs. 4) Marketing Audit: Internal and External According to Baker, it is important to analyse the external and internal environment, before developing a new product (Baker 3). External environment includes factors such as political, economic, legal, and technological factors, competition, customer and target market evaluation. This will help the company in formulation of strategic plans to deal with the factors that can affect the success of the new product (Baker 3). 4. 1) Marketing Mix of the New Product Line Product The new design of vacuum cleaners will be developed, researched on and marketed aggressively. This product will aim at meeting the cleaning needs of the market. Place The vacuum cleaners will be available in all leading supermarkets and electronic appliances stores in the United Kingdom. In addition, Dyson will utilize the online business strategies to sell their products globally. Payment and shipments arrangements will be available, in order to deliver the product at an international level. Price The vacuum cleaner will be fairly priced, and of high quality, in order to become affordable to the customers. Promotion Marketing initiatives will include advertisements, trade shows, incentives, public relations and promotional literature (Brand 1). The marketing initiatives will aim at creating awareness of the new product and encouraging potential customers, to buy the product. In addition, the advertisement campaigns will highlight the benefits of using the new vacuum cleaner. The new product will be advertised via television and social media sites, which are frequented by many people. 4. 2) SWOT Analysis of Dyson Company Strengths According to Bodimeade (1), Dyson is the leading vacuum cleaner manufacturer in the United Kingdom (UK). The Company’s major strength lies on its ability to grow shares in its appliances, and its focus on innovative technology (Gottlieb 38). This technology is easy to use, which would make it more preferable in the market. In addition, Dyson has a competitive edge from its engineering research, design engineers and development crew, who are knowledgeable on innovation and development of existing products (Dyson Case Study 3). Dyson is a trusted and well-known brand in Britain and has been in existence for many years. According to Bodimeade, Dyson has a strong reputation, owing to its functionality, design and manufacture of high quality products (Bodimeade 1). Being of UK heritage, Dyson brand enjoys great support in distributing and marketing of its products in the U.K. The Company is popular because it produces high quality products, and is highly innovative. Brand awareness of the Company is high and Dyson products are easily available to customers. This is a major advantage for Dyson, compared to other companies that manufacture similar products. New products that are manufactured by Dyson Company utilize the Company’s strong brand name, to gain customer trust and purchase. The Company is considerably knowledgeable on the vacuum cleaners and the experienced employees and innovation culture is a key competency for the company. Dyson follows consumer trends closely and seeks consumer feedback, when developing new products. This approach ensures that the products are designed in accordance with the needs of the consumers. Weaknesses The products are not available at a global context and the Company has yet to come up with strategies that will ensure global access and convince customers to buy these vacuum cleaners. Opportunities Dyson can use its core competencies to diversify its line of products, in order to become more profitable. Company can take advantage of the global market and market their products globally. This will earn them global recognition and increase their market share. In addition, the use of vacuum cleaners will increase in future and most homes and institutions will prefer buying this product, in order to ease cleaning. This means that if the new product becomes popular in the market, and is widely marketed, the Company will earn national and global recognition. The vacuum cleaner market is expanding and the Company can use this opportunity to venture into foreign markets and globalize their products. In addition, the Company can use social media and internet to market their products and reach many people in the online community. Threats The presence of existing competitors, new market entrants and the threat of substitute products should be assessed. There are other established vacuum cleaner manufacturers, which poses a threat to Dyson’s sales volume. 4. 3 PEST Analysis of the UK Political analysis The UK government has implemented rules and regulations that support business initiatives. Economic Analysis The economic condition in the UK is unstable and recovering from economic inflation. This can affect the spending rate of the people and affect the sale volumes of Dyson. Social analysis The social status of the UK is favorable for the product and many people would use vacuum cleaners for their cleaning needs. Most people have average incomes and can afford the fairy priced vacuum cleaners. Technological analysis UK government is supportive towards technological developments and innovations. Hence, Dyson Company can benefit greatly from the support, since they are innovative and use technology to develop and improve their existing products. Competition Competitors include Kenwood Limited, Black Decker, Sanyo and Samsung companies, BISSELL Homecare Inc and Eureka Forbes Limited (Jose 1). Knowledge of the competitors and their strategies will help in formulating strategies that will help deal with competition, and place Dyson products at a competitive edge. Dyson Company will ensure that their products are of high quality and fairly priced. This will help build consumer trust and loyalty, which enhances competitiveness. 4. 4) Porter’s Five Forces Existing rivalry There are other companies dealing with vacuum cleaners, which challenge the existence and market share of Dyson products. These companies strive to outdo Dyson, in the vacuum cleaning market. Bargaining power of supplier Dyson is involved in much research and experimentation projects, in order to produce new products and improve existing products. These projects require various materials, in order for the product to be manufactured, and the supplier decides the selling prices for these materials. Competition Dyson Company will face competition from the established companies as well as the new market entrants, dealing with similar products. However, Dyson Company has strong brand name, and has gained support in UK over the years, which is a source of competitive advantage. Bargaining power of buyer The prices of Dyson products are fairly priced, according to quality standards. The products may be quite high compared to the prices offered by their competitors, but Dyson products are of high quality, which enhances the reputation and brand name of the company. Threat of substitutes Many companies that deal with electronic and home appliances have ventured into the vacuum cleaners market. These companies price their vacuum cleaners at a lower price than that of Dyson Company, which can affect the performance of the new product. 5) Assumptions 1. The introduction of new products is based on the assumption that potential buyers will accept the product, and the product will meet the needs and expectations of the customers. 2. Another assumption is the market research that will be conducted before the launching of the product will help in determining whether or not, the product will be acceptable in the market. Since the market research reveals a market need that requires to be fulfilled, the people will embrace and support the new product. According to Brand, market research is a crucial element in determining the success of a new product in the market (Brand 1). Market research reveals the market needs, distribution channels, pricing and factors that influence consumer behavior. 6) Promotions The Company will advertise aggressively on social media sites, television and newspapers. Social media sites such as Facebook and You Tube are increasingly popular and the online community will be able to view the adverts and learn about the new product. This will reach many people worldwide since the product targets the local and international markets. These adverts will run throughout the year, in order to create more awareness and prepare potential buyers, psychologically. In addition, the CEO will visit some of the countries in order to create unveil the product and create more awareness to the people. This includes countries like China, which has a great potential and has embraced some of the products from Dyson Company (Yiyao 1). After launching, the product will be priced at a highly discounted price, for a period of six months, in order to attract and gain customer’s trust. The discount will serve as a promotional strategy for the product, but after the promotion period is over, the product will be priced normally. If need be, the Company can offer other promotions, in order to motivate potential buyers. It is important to offer promotional discounts on new products, in order to allow time for the customers to test the product and give feedback. 7) Alternative Plans In case, the product is not successful in the market, Dyson Company will improve the new product in accordance to the customer needs as revealed by the test market. Dyson will make a thorough analysis on the existing vacuum cleaners from other companies, and evaluate the niche for DC50. Market research will help the Company to evaluate the effect that the new product would have on the market. In addition, the Company will continually improve the existing product and create new products that will suit the changing market demands. This will satisfy the needs of the customers and enhance attractiveness of the products. If the market research reveals some shortcomings on the product, the Company will engage in efforts to modify the product to fit into the needs of the target market. This will be done immediately after the market research has been conducted, in order to avoid wasting the new opportunity and resources. The available resources can be used to better the product or innovate other products that were identified during the market research period. 8) Promotional Programme Dyson will focus on meeting the needs of consumers by increasing its campaigns and outdoor events, in order to create awareness of a new product (Scho? ttler 27). This will take a period of 3 months. 9) Measurement and Control The measurement of product development will be done using the lead-time used in the development of the product, market attractiveness, product quality, manufacturing cost and cost of the development initiative (Krishnan and Ulrich 12). The Company will carry out test marketing and learn more about the consumer needs and perceptions for the product (Chapter 11, the Product and Developing New Products. 1). Test marketing will be conducted before the launching of the product, in order to rectify any flaws that are pointed out by the customers. Existing customers and targeted customers will be supplied with questions about Dyson, and will be encouraged to provide information about their preferences on vacuum cleaners. The feedback will be used to decide whether the product will be acceptable or if the company should make the necessary changes, noted during the research process. Test marketing will be done within the first six months, in order to allow for completeness of product development. Appendices Month Activity 1monthConsultation with the engineers and other stakeholders involved in the development of the marketing plan Planning and allocation of resources 2-5 monthConducting of market research on consumer needs and other market dynamics 6-7 monthEvaluating consumer feedback, making necessary amendments and preparing to test marketing and launch the product 8-9monthTest marketing and Launch of the new product  9 -12 monthPromotions. The resources allocated to the project can affect product performance and time used to market the new product. Hence, it is important for the management to allocate adequate resources to the project, in order to enhance the success of the project. †¢Maximal time should be allocated to the most productive stage of the development. The time allocation varies depending on the size of the target market, competitors’ product performance and presence of new and existing products. It is evident in the trends within cleaning equipment market that consumers have a need for cleaning equipment that will help ease cleaning at home and various institutions. The preferred equipment should be convenient to use, affordable and of high quality. Consumers need to involved in the product development process, and their input used to develop a product that will be easy to use. †¢The market trends reveal consumers who are increasingly busy, hence demanding cleaning equipment that are convenient to use and save time. In addition, consumers are looking for equipment that are environmental and user friendly.