MCD2050 Marketing 1 - STP Analysis Assignment Soluion

Introduction 

Dyson Limited was established by Mr. James Dyson in 1991. The company is based in Malmesbury, United Kingdom. Dyson James Ltd. Is the parent company of Dyson Ltd. The company not only manufactures the vacuum cleaners, but also hair dryers. The cyclonic vacuum cleaners manufactured by Dyson Ltd. are also marketed by the company. In addition to that, the company also offers a wide range of other products. These include fans and heaters, air treatment and lighting products. The company aims on serving hotels, offices, transport hubs, and mainly the hospitality and the education sector (Bloomberg, 2019). The vacuum cleaners offered by the company are developed using the modern technology and are more focused towards the health of its customers. This essay sheds light onto the targeting strategy of the company, and other target market decisions, alongside a competitor analysis. The latter section of the essay presents a perceptual map. 

Targeting Strategy 

The quality differentiation strategy of the company has made it successful in today’s world (AbouElgheit, 2012). Dyson has been keeping up to the needs of its consumers for many years now. The brand has been able to convey the value of its products to its customers through its effective marketing communication strategy. The company has distributed its vacuum cleaners in several different parts of the world using various distinct strategies. Dyson has been dependent on global advertising campaigns and word-of-mouth as its major marketing strategies, various combinations of the two in distinct markets, to get its message across the world. Sears, Best Buy, Linens ‘N Things, Amazon, Roebuck & Co., and Target are some of the stores that distribute Dyson’s $399-$500 vacuum cleaners. The company makes TV appearances using unconventional designs and market appearances (Cuneo, 2003).

Three Segment Profiles 

Geographic Characteristics: The market opportunity for growth has been substantial for the company particularly in the Asian pacific region. The company is not only selling in the United Kingdom, but has also expanded to other markets. The company now sells in various international markets through its unique selling proposition and marketing strategy. In 2011, most of the vacuum cleaners that the company sold were in the international market and not in the United Kingdom. More specifically, 85% of the vacuum cleaners and other machines sold by the company were in the international markets. The figure has substantially risen in comparison with 30% of the international sales back in 2005 (BBC News, 2012). Dyson markets its products mainly in the United Kingdom, the United States, Australia and Japan (Hollenson, 2007). Countries like Canada, New Zealand, Northern Europe, Singapore, Easter Europe and Russia make up the most attractive market for the vacuum cleaner sales, expanding the growth potential of the company. Vacuum cleaners are demanded in these countries, especially in Eastern Europe, particularly because of their even walls and carpeted flows (Marsh, 2006).

Demographic Characteristics: The target market of the company has some specific demographic characteristics that has expanded Dyson’s search for its potential customers outside the United Kingdom, in the geographic locations mentioned above. These geographic locations already have some renowned vacuum cleaner brands that retail for up to $125, starting from $95. In comparison to the vacuum cleaner brands retailing within the range, $95 - $125, the vacuum cleaners manufactured by Dyson retail for about $300 - $500. This retail price is about three times as that of its competitors established in the locations that the company is pursuing. Therefore, the company looks for households with high income levels to be able to invest in its vacuum cleaners. Only the high-end consumers will be able to purchase the company’s vacuum cleaners. Since the vacuum cleaners retail for about $300 - $500, the minimum income level of a household shall be $300. In any given household, Dyson mainly targets the adults, or mainly the heads of the families. These are mainly the women and are likely to fall within the age range of 21 – 50 years. Another demographic characteristic revolves around the medical status of the customers (Pizzini). In other words, the company aims to target its vacuum cleaners particularly to those individuals that suffer from asthma or allergies. Dyson has installed HEPS filtration and the most advanced suction technology in its vacuum cleaners. As a result, the vacuum cleaners are able to suck in the fine particles of pet dander and dust. Asthma and Allergy Foundation of America has certified the Dyson vacuum cleaners as amongst the first to be engineered to eliminate allergens (Dyson, 2016). The company targets the pet owners as allergies and asthma can get worse through pet dander.