We continuously innovate existing products into exciting and smart reinventions that provide real benefits and make life easier.” This could be a market-based mission statement for Dyson, based on the case study. Dyson seeks to out-think current product design so that they can provide consumers with simple solutions that really work, and in doing so meet their goal of “doubling their annual revenues of $1.5 billion (Dyson case study).” Vacuum cleaners or hand dryers are not new products, but Dyson seeks marketing opportunities where they can “supply an existing product or service in a new or superior way (Kotler & Keller, 2016).” Dyson’s goal is to design sleek and simple products. They challenge themselves to creatively engineer products in a way that will reduce environmental impact, such as vacuum cleaners with no bags and hand dryers that use cold air, as shown in Exhibit 1, and simplify the product life cycle. Their overarching goal is to simplify life for real people with superior engineering of their products and other than TV advertisements that mimic their sleek and simple designs, their objective is let the consumers be a primary source of marketing through positive word of mouth. They also seek to continue their global expansion and have a goal of opening Apple store-like shops to showcase their products.
A business portfolio is defined as, “A company’s set of investments, holdings, products, businesses and brands (“The Difference Between Product Portfolio & Business Portfolio,” n.d.).” Dyson has a number of developed products in multiple areas, including various types of consumer products, such as vacuums; hair dryers; air treatment devices, including fans, heaters, humidifiers and purifiers; as well as asthma and allergy technology. Moreover, the company has business products such as lighting and hand dryers. Accordingly, the Dyson has a business portfolio (“Dyson Vacuum Cleaners, Fans, Heaters & Tools | Official Site,” n.d.).
However, Dyson does not develop its portfolio in the traditional way that its competitors strategically develop their business portfolios, rather the company utilizes its founding principles of developing products that make life easier, utilizing unique approaches to accomplish everyday tasks and infusing excitement into products to turn them from the mundane to innovative (Dyson case study). Consequently, Dyson chooses to invest in technologies that allow it to meet its founding principles – integrating technology into everyday products to make people’s lives easier. For example, the company is now revolutionizing the sink faucet and adding it to its business portfolio.
While other companies choose to build their business portfolios through traditional market research methods, such as focus groups, etc., Dyson uses an approach called “interrogating products” where they test prototypes on real consumers to determine how real people interact with a product (Dyson Case Study). Additionally, Dyson focuses on “no nonsense” promotion to promote products within its business portfolio leaving behind traditional advertising campaigns for more simplistic messaging. With products in the company’s portfolio having a high price point and a reputation for quality, it is clear that Dyson’s business portfolio is on track to bring in over $1 billion in annual revenue.
Dyson’s marketing mix of product, price, promotion and distribution are aligned with its principles and strategies. The company was founded on a three simple principles: 1) each product from Dyson needs to provide real consumer benefits to make their lives easier; 2) each product must have a completely unique approach to accomplishing prevalent, everyday tasks; 3) every Dyson product must install excitement into mundane products that most individuals never consider. Its market-challenger strategy has resulted in the company leapfrogging into new technologies and developing unique, revolutionary products through the process of research and development. Dyson uses a mass customization, high growth strategy of modifying existing consumer goods in order to meet the needs of consumers.
Dyson’s unique approach to building its business portfolio sets it apart from other companies in the market. While traditional methods like focus groups are commonly used for market research, Dyson takes a different route by employing a strategy called "interrogating products." This involves testing prototypes on real consumers to gain insights into how people interact with the product. By directly involving consumers in the testing process, Dyson can gather valuable feedback and ensure that its products meet real consumer needs.
In terms of promotion, Dyson adopts a "no nonsense" approach, eschewing traditional advertising campaigns in favor of more simplistic messaging. This aligns with the company’s focus on delivering high-quality products with a reputation for excellence. With a portfolio of products that command a high price point, Dyson’s marketing strategy is aimed at conveying the value and quality of its offerings to consumers.
Dyson’s marketing mix, consisting of product, price, promotion, and distribution, is closely aligned with its principles and strategies. The company was founded on three key principles: providing real consumer benefits, taking a unique approach to everyday tasks, and instilling excitement into mundane products. These principles guide Dyson’s product development and marketing efforts, ensuring that each product offers tangible benefits to consumers and stands out in the market.
Dyson’s market-challenger strategy has propelled it to leapfrog into new technologies and develop revolutionary products. Through extensive research and development, the company constantly seeks to modify existing consumer goods and meet the evolving needs of consumers. This mass customization approach, coupled with a high-growth strategy, allows Dyson to stay ahead of the competition and deliver innovative solutions that resonate with consumers.
Overall, Dyson’s approach to building its business portfolio is rooted in consumer-centricity, innovation, and delivering exceptional value. By involving consumers in the testing process, adopting a simplistic promotion strategy, and adhering to its guiding principles, Dyson has positioned itself for continued success, with the potential to generate over $1 billion in annual revenue.
Dyson’s market-challenger strategy is based on its ability to identify and seize opportunities in new technologies, which has allowed the company to establish itself as a leader in the consumer goods industry. This strategy involves constantly seeking to modify existing products and meet the evolving needs of consumers. By investing heavily in research and development, Dyson is able to develop revolutionary products that set it apart from its competitors.
One key aspect of Dyson’s success is its approach to mass customization. This strategy allows the company to offer products that are tailored to individual customer preferences, while still maintaining the efficiency and economies of scale associated with mass production. By leveraging advanced manufacturing techniques and technologies, Dyson is able to produce customized products on a large scale, giving consumers the flexibility to choose products that best suit their needs.
In addition to its focus on mass customization, Dyson also adopts a high-growth strategy. This involves aggressively expanding into new markets and product categories, seeking to capture market share and establish itself as a dominant player. By constantly pushing the boundaries of innovation and staying ahead of the competition, Dyson is able to deliver products that resonate with consumers and create a strong demand.
Furthermore, Dyson’s success is also attributed to its consumer-centric approach. The company actively involves consumers in the testing process, seeking their feedback and insights to improve the performance and usability of its products. By understanding and addressing consumer needs, Dyson is able to develop products that truly meet their expectations, resulting in high levels of customer satisfaction and loyalty.
In terms of promotion, Dyson adopts a simplistic approach that focuses on highlighting the unique features and benefits of its products. The company avoids excessive marketing jargon and instead emphasizes the practical value that its products offer. This straightforward and transparent approach helps to build trust with consumers and reinforces Dyson’s reputation as a reliable and innovative brand.
Throughout its growth and expansion, Dyson has remained true to its guiding principles. The company is committed to delivering exceptional value to consumers through its products, ensuring that they are not only technologically advanced but also durable and reliable. This commitment to quality has earned Dyson a strong reputation and a loyal customer base.
Looking ahead, Dyson has the potential to generate over $1 billion in annual revenue. With its market-challenger strategy, consumer-centric approach, and focus on innovation, the company is well-positioned to continue its success and maintain its status as a leader in the consumer goods industry.