A Marketing Report on the Dyson Pure Hot + Cool Link - By Leslie Gugger for BUS105: Introduction to Marketing
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A Marketing Report on the Dyson Pure Hot + Cool Link
By Leslie Gugger for BUS105: Introduction to Marketing
Executive Summary
For the purpose of making recommendations, this report provides a detailed marketing analysis
of the Dyson Pure Hot + Cool Link (DPH+CL), identifying various pricing, distribution and
integrated marketing communication concepts, theories and strategies. Reputable academic
literature and online sources were used to support this report. The DPH+CL’s target market is
highly segmented to women with children who place value on the DPH+CL’s value
proposition: the ability to cool and to heat while purifying the air and capturing 99.95 per cent
of fine particles; and the all-year-round usage, air protection and clean home provided by the
sleek, compact, bladeless DPH+CL. The DPH+CL is a convergence product, an extension on
the Air Multiplier Range (see appendix 9) which is the sole competitor in the Australian market.
Having lower variable costs coupled with a skimming strategy support the DPH+CL’s profit
and market share objectives. The effective use of hierarchy of effects sees the main message
employ a slice-of-life creative appeal, which consistently conveys the main message across the
integrated marketing mix, including advertising, public relations and personal selling. Selective
distribution intensity sees the DPH+CL appropriately and efficiently placed in speciality and
department stores. Dyson have been effective and efficient at creating and providing value,
understanding and communicating to the target segment. The DPH+CL is in the early growth
product lifecycle stage. Effectively consideration of the product’s lifecycle stage is taken
throughout the product, price, promotion and placement aspects of DPH+CL. From this report,
the subsequent recommendations have been made specifically for Dyson:
1. Corporate Social Responsibility (CSR) is a management strategy that businesses infuse
into their practises to achieve and take responsibility for their environmental, economic
and social efforts. An environmental conservation recommendation is to extend on the
current process, where call tags (free postage tags) are sent to consumers enabling them
to post their broken machines to their closest Dyson Service Centre to get repaired. The
extension will see consumers able to post their old and broken machines free of charge,
to centres where they are recycled or fixed and sold on. Coupling the call tag with a
voucher for 15-20 per cent off their next purchase for consumers who participate will
create an opportunity for consumers to recycle responsibly and be rewarded for it. It
also educates consumers on the value placed on recycling by Dyson and will encourage
repeat business through the upgrading of machines.
2. To create a promotional pack that comes complete with information such as leaflets and
the DPH+CL product that is sold to specific allergy and asthma clinics at a very
discounted price. These are establishments that people go to when they are sick,
therefore this product will promote a cleaner and safer environment for not only the
staff but also customers. By placing the product in such places, it will boost the
establishment’s overall cleanliness standards while providing a live product
demonstration to potential consumers.
i
Table of Contents
Executive Summary .................................................................................................................... i
1.0 Introduction .......................................................................................................................... 1
1.1 Authorisation and Purpose ................................................................................................... 1
1.2 Limitations ........................................................................................................................... 1
1.3 Scope .................................................................................................................................... 1
2.0 Background .......................................................................................................................... 1
2.1 Manufacturer and product background ................................................................................ 1
2.2 Business environment analysis ............................................................................................ 1
Table 2.1 SWOT analysis of Dyson .......................................................................................... 1
3.0 Target market ....................................................................................................................... 2
3.1 Market segmentation............................................................................................................ 2
Table 3.1 Private User Segmentation table ................................................................................ 2
4.0 Product ................................................................................................................................. 3
4.1 Three product layers ............................................................................................................ 3
Table 4.1 Core, Actual and Augmented layers of the DPH+CL ............................................... 3
4.2 Product and Innovation classification .................................................................................. 4
4.3 Product lifecycle .................................................................................................................. 6
4.4 Branding............................................................................................................................... 6
Table 4.2 Dyson Pure Hot + Cool Link name breakdown......................................................... 6
5.0 Price ..................................................................................................................................... 6
5.1 The pricing of DPH+CL against competition ...................................................................... 6
Table 5.1 Product and Pricing comparison ................................................................................ 7
5.2 Pricing objectives ................................................................................................................. 7
5.3 Price elasticity and inelasticity............................................................................................. 7
5.4 Economic and competition factors....................................................................................... 8
6.0 Promotions ........................................................................................................................... 8
6.1 Promotion message and creative appeal .............................................................................. 8
ii
6.2 Hierarchy of effects.............................................................................................................. 8
6.3 Integrated Marketing Communication Mix ......................................................................... 9
Table 6.1 DPH+CL Integrated marketing communication mix ................................................ 9
6.4 Unity of messages .............................................................................................................. 10
7.0 Placement ........................................................................................................................... 10
7.1 Channel strategy................................................................................................................. 10
7.2 Distribution Strategy .......................................................................................................... 10
7.3 Distribution Intensity ......................................................................................................... 10
7.4 Selection of retail outlets ................................................................................................... 11
Table 7.1 Retail types and retail classification types ............................................................... 11
8.0 Conclusion ......................................................................................................................... 12
9.0 Recommendations .............................................................................................................. 13
References ................................................................................................................................ 14
Appendices............................................................................................................................... 16
Appendix 1 - Chosen print advert from Women’s Health August 2017 edition...................... 16
Appendix 2 – Dyson Pure Hot + Cool Link product profile from the Promotion Leaflet....... 17
Appendix 3 – Dyson Pure Hot + Cool Link basic features from the Promotion Leaflet......... 18
Appendix 4 – HEPA filter breakdown from the Promotion Leaflet ........................................ 19
Appendix 5 – Actual product layer feature breakdown from the Promotion Leaflet .............. 20
Appendix 6 – Internal components of the Dyson Pure Hot + Cool Link from the Promotion
Leaflet ...................................................................................................................................... 21
Appendix 7 – Quiet Mark approved information from the Promotion Leaflet........................ 22
Appendix 8 – Dyson Link App information from the Promotion Leaflet ............................... 23
Appendix 9 – Complete Dyson Air Multiplier Range from the Promotion Leaflet ................ 24
Appendix 11– Dyson Hot + Cool image and its key features from the Promotion Leaflet..... 25
Appendix 11 – Dyson Cool image and its key features from the Promotion Leaflet .............. 26
Appendix 12 – Image taken 14 September 2017 in Harvey Norman Gympie of the packaging
the DPH+CL comes in ............................................................................................................. 27
Appendix 13 – First of the four pages from the advert suite in Women’s Health ................... 28
Appendix 14 – Second of the four pages in the advert suite in Women’s Health.................... 29
iii
Appendix 15 – Third of the four pages in the advert suite in Women’s Health ...................... 30
Appendix 16 – Fourth of the four pages in the advert suite in Women’s Health ..................... 31
iv
1.0 Introduction
1.1 Authorisation and Purpose
This report is authorised by Dr David Fleischman, Course Coordinator of BUS105 Introduction
to Marketing, at the University of the Sunshine Coast, Queensland, Australia for the purpose
of making recommendations based on the marketing analysis of the Dyson Pure Hot + Cool
Link (DPH+CL).
1.2 Limitations
This report is limited to the BUS105 Introduction to Marketing format guide in relation to the
(DPH+CL) and its print advertisement found within Women’s Health August 2017 edition (see
appendix 1). The analysis is limited to business to consumer marketing and secondary research.
1.3 Scope
This report looks at aspects of the DPH+CL, such as target audience, product layers and
distribution to identify various pricing, distribution and integrated marketing communication
concepts, theories and strategies. Academic sources and online sources are used to provide
theory and evidence. Recommendations are provided.
2.0 Background
2.1 Manufacturer and product background
The DPH+CL was launched in 2016 and is manufactured by UK-based Dyson. Dyson was
founded in 1987, employs over 1000 engineers worldwide and its machines can be found in
over 65 countries (Dyson, n.p.). Dyson began engineering vacuums and have extended into
manufacturing air devices such as humidifiers. The DPH+CL is available from Dyson’s online
store as well as online and in-store from speciality stores like Harvey Norman and from high-
end and everyday department stores like Myer and Target.
2.2 Business environment analysis
A SWOT analysis evaluates the external and internal business environments surrounding a
company. Table 2.1 provides a detailed SWOT analysis specific to Dyson.
Table 2.1 SWOT analysis of Dyson
Strengths 1. Innovation – taking household products and innovatively
improving them to be more efficient
2. Skilled work force – over 1000 engineers
3. Wide distribution with products in 65 countries
4. Strong brand equity
5. Dyson have created a niche market in which they offer an
assortment of household items
Weaknesses 1. Economic climate – the rising cost of production and labour
1
2. Price of products
Opportunities 1. To expand Dyson’s target market using new or adapted products
2. New trends that arise or new health concern breakthroughs
3. Make yet another convergence and add the humidifier element
into the mix when the Air Multiplier Range (see appendix 9) is on
the verge of maturity once more
4. Expand Dyson’s target market, through the creation and expansion
of product lines and ranges by using elements which are
transferable and adaptable such as the ‘Bladeless fan’ technology
Threats 1. Cannibalisation from other products within the Dyson Air
Multiplier range (see appendix 9)
2. Dyson’s new technology could change consumer demand and
potentially decrease the life span and the profitability of other
products in the range
3. Growing number of indirect competition
4. Economic barriers regarding global distribution such as currency,
quality standards, rules, regulations
5. The saturated markets of fan, heating, and air-purifying products
that are competitively priced
6. The introduction of a direct competitor within the Australian
Market, that offers the purifying, heating and cooling features the
DPH+CL offers
From Table 2.1, the high level of innovation and strong brand equity were identified as key
strengths. Potential weaknesses identified were the rising cost of production and labour which
could see a decrease in profitability if not handled correctly. The key opportunities identified
were to expand the target market through the creation and expansion of product lines. The key
threats identified were the saturated and competitively priced indirect markets and its own
goods, changing consumer demand and potentially decreasing the life span and the profitability
of other products.
3.0 Target market
3.1 Market segmentation
Market segmentation separates the total market into smaller segments, based on one or more
shared characteristics. It harnesses segmentation variables, a set of metrics to create
homogenous groups, each with different wants and needs (Solomon et al, 2014). The target
segment is a private user. Using segmentation variables, the typical private user is outlined in
Table 3.1.
Table 3.1 Private User Segmentation table
Segmentation variables Typical Private User
2
Geography Urban, suburban and metropolitan areas, used nationwide in
Australia and other countries
Demographics
Age Aged 25-45 (Predominantly Generation Y, born between 1977
and 1994 and Generation X, born between 1965 and 1976)
Gender Females
Family Structure Married with children
Income Mid to higher end earners
Psychographics Convenience, value and safety driven
Leading a health and wellbeing-orientated life but not suffering
from allergies and asthma.
Women utilise health service more than men, therefore it can
be assumed that women are more concerned with health and
wellbeing (Bertakis, et al. 2000).
Concerned with fulfilling esteem needs and safety needs –
Maslow’s Hierarchy of Needs (Solomon et al. 2014)
Behavioural In home use
Moderate to high usage and used all year round
Other
Innovators
Adoption type Early adopters
User Type End User
From Table 3.1, it can be deduced that the typical private user would be an affluent married
woman, aged 30 with children. Although not suffering from allergies or asthma, she would use
the product in her urban home all year round, to improve her family’s wellbeing, comfortability
and safety. She places value on the convenience of three Dyson products in one.
4.0 Product
4.1 Three product layers
Products can be broken into three layers called the core, the actual and the augmented product.
Table 4.1 provides a detailed breakdown of the three product layers of the DPH+CL.
Table 4.1 Core, Actual and Augmented layers of the DPH+CL
Layer type References Features and benefits
and
definition
Core See Appendix 1-8 1. Air purification (air quality improved)
Dyson, n.p. 2. Heating
Gebhart, A 2016 3. Cooling
3
The core Sevilla, G 2017 4. All year-round usage
product is the 5. Three-in-one product that is convenient and
benefits saves space
obtained 6. Image enhancement
from
7. Safety
possessing or
8. Health and wellbeing improved
using the
product 9. Peace of mind
(Solomon et
al. 2014).
Actual See Appendix 1-8 Purifying:
Dyson, n.p. 1. Improved 360° Glass HEPA filter with
The actual Sevilla, G 2017 activated carbon granules, that captures 99.95
product is all per cent of fine particles (allergens, pet
the features dander, pollen, bacteria, pollutants) and gases
of the like formaldehyde, including formaldehyde,
product, its benzene
quality and 1. Replaceable filter, needing to be replaced
brand name after 4382 hours (roughly 12 months, using it
(Solomon et 12 hours a day)
al. 2014). 2. Purifier easy to maintain and clean purifier
3. Smart sensors, automatically monitor
surroundings – detecting particles and traps
them then reports results Dyson Link App
Heating and Cooling:
4. Bladeless fan
5. Jet Focus airflow control, two settings –
personal use and diffused mode.
6. The only fan heater with Quiet Mark
accreditation by Noise Abatement Society
7. Smooth oscillation, coupled with long-range
projection.
Linking:
8. Dyson App, allows remote controlling of the
product and scheduling of heat, cooling and
purification
9. Automatically monitors indoor and outdoor
air quality and responds to indoor air quality,
adjusting airflow automatically.
10. Daily and weekly reports on usage, filter life
air quality history
Other features:
11. Magnetic remote control
4
12. Night mode (fan level slows and the light
dim)
13. Offered in white/silver and in black/nickel.
14. LED display, an elongated oval shape
15. 60cm tall and the circular base has footprint
of 22cm
16. Claimed high per cent of recycled material
used in Dyson products
Packaging:
Cardboard box with image and copy that highlights
it core, actual and augmented features (see appendix
2)
Augmented Dyson, n.p. 1. 2-year guarantee on parts and labour offered
by Dyson
The augment 2. If products are purchased from the Dyson
product is the website, the guarantee registration is
aftersales and completed automatically and an individual
supporting account is made containing information and
benefits expert advice on how to use the product
offered 3. Dyson offers repair and maintenance service
(Solomon et as after-sale care
al. 2014). 4. Customer support services are offered, for
example, emails containing news, offers and
invitations to test out the latest Dyson
products
5. When purchasing from the Dyson Website,
shipping and returns (within 14 days) are free
6. Recycling of old products/machines handled
by the Dyson Service centres
From Table 4.1, the value proposition can be deduced. With the ability to cool and to heat while
purifying, the air captures 99.95 per cent of fine particles. The sleek, compact bladeless
DPH+CL provides all year-round usage, air protection and a clean home.
4.2 Product and Innovation classification
The DPH+CL is a durable good in the heterogeneous shopping category. Consumers are
likely to shop around and compare prices, features and the quality of such products, therefore
being a home furnishing and having a higher price, the DPH+CL is classified as an attribute-
based shopping item.
The DPH+CL is a dynamically continuous innovation product. With the added benefit of
linking to the Dyson Link App, it is considered a convergence of two individually offered
5Dyson products – the Dyson Hot + Cool (see appendix 10) and the Dyson Pure Cool Link (see
appendix 12) (Barrett, 2016). The DPH+CL is classified as an upward line stretch addition to
the existing Air Multiplier Range (see appendix 9), as it is priced higher and contains more
features than the rest of the range (Solomon et al. 2014).
4.3 Product lifecycle
The Dyson Air Multiplier Range (see appendix 9) is in the maturity stage of the product lifecycle
(PL), which sees sales begin to slow after a peak. The DPH+CL, a convergence product, was
added to the range to pull it from transitioning into the decline phase. The DPH+CL is early in
the growth phase, which sees marketing communication informing consumers, seeking repeat
business and brand loyalty (Solomon et al. 2014).
4.4 Branding
Founder James Dyson’s surname is the brand and company name. The associations of
innovation, luxury, and efficiency (Seden, 2013) with the Dyson brand, supports its strong
brand equity. Being a manufacturer brand, Dyson utilises a brand extension strategy which sees
new products sold under its existing strong brand name (Solomon et al. 2014). Each Dyson
product is branded with Dyson as the first word in the product name. Table 4.2 takes apart each
element of the DPH+CL name.
Table 4.2 Dyson Pure hot + cool link name breakdown
Dyson pure Hot + Cool link
Brand Refers to the Dyson Refers to the Dyson Refers to that
name with Purifier and the Hot + Cool product the product is
strong word ‘pure’ and its and the basic benefits linkable to the
brand positive of heating and Dyson App
equity connotations cooling
Table 4.2 shows how the highly effective DPH+CL name is constructed with words that
highlight the product’s brand and its basic benefit. It also infuses existing product names,
creating consistency across the entire range.
5. Price
5.1 The pricing of DPH+CL against competition
The DPH+CL was originally priced at $779, but currently costs $799 (Yoo, 2017).
The purifier, heater and cooler elements that make up the DPH+CL individually have direct
competitors, yet there is no direct competitor for the DPH+CL. The two main indirect
competitors are Daewoo and Envion, both not offered in Australia, are 4 in 1 products:
cooler, heater, air purifier and humidifier. Table 5.1 compares the features of the DPH+CL
to the Daewoo and Envion.
6Table 5.1 Product and Pricing comparison
Product DPH+CL The Daewoo 4 in 1 Envion Four Seasons 4 in 1
Features Fan, Heater & Air 4 in 1 products; Air Cooler, 4 in 1 products; Air Cooler,
Purifier Fan Heater, Air Purifier & Fan Heater, Air Purifier &
Humidifier Humidifier
Offered Specialty and high- Amazon.co.uk TSC Stores Canada
at end and everyday
Department stores Ezysleep.co.uk
Australia
Cost $779 AUD $126.77 AUD - $169.10 $153.84 AUD
Converted from Pounds Converted from Canadian
(shipping and replacement dollars
filter not included) (shipping and replacement
filter not included)
Filter Each - $99 AUD Price not found Price not found
cost
The costing reflects the physical differences between the two indirect brands and the DPH+CL
outlined in Table 5.1. Although neither indirect competitor offers the quality, brand name,
innovative technology, and linkable capability Dyson does, they do share the same core
features, plus a humidifying feature. The indirect competitor’s prices are marginally lower than
the DPH+CL which could connote ‘lower price, lower quality’.
5.2 Pricing objectives
Reflecting its stage in the product lifecycle, the DPH+CL’s pricing objectives are profit-pricing
and growing-market-share focused (Solomon et al 2014). The skimming strategy could be
employed to achieve profit by setting a premium price, which reflects Dyson’s sole supplier
position within the Australian Market and the DPH+CL’s growth stage in the PL, where
demand is high.
As the integration of the heater and the bladeless fan was quite easy (Barrett, 2016), the R&D
(or variable) costs of converging the DPH+CL would be lower than its predecessors, equalling
more margin for profit.
5.3 Price elasticity and inelasticity
Elastic demand is where demand is strongly affected by changes in price, where inelastic
demand sees demand minimally or not at all affected by changes in price (Solomon et al. 2014).
The DPH+CL was priced at $779 in the introduction lifecycle stage to attract consumers. When
the product transitioned into the growth phase, it can be assumed that the demand curve shifted
upward causing the DPH+CL to experience a moment of inelasticity in which the price was
raised to $799. The price raise will see that when the moment of inelasticity ends and demand
decreases, that the same or slightly less profit will be made, than before the inelasticity.
75.4 Economic and competition factors
The DPH+CL is a luxury item that, if the economy stalls, could see a dramatic shift in demand,
with the target segment downgrading to cheaper options forgoing some benefits Dyson offer.
Therefore, pricing with the economic climate in mind will see more consistent demand that is
less influenced by the economy.
Dyson is operating as the only supplier in the Australian market, meaning they are more likely
to base their prices on costs, rather than on the prices of the competition (Solomon et al, 2014).
Yet there is the threat that consumers will be discouraged and will opt for cheaper products if
the price is too high and the value is not translated effectively.
6.0 Promotions
6.1 Promotion message and creative appeal
The DPH+CL advertisement featured as a part of a 4-page suite (see appendices 14-17) and
was taken from the August 2017 edition of Women’s Health Australia (WHA), (see appendix
1), that discusses women’s health and wellbeing. WHA’s core audience is women aged 25 –
44 (Pacific magazines, 2017), in which lies the DPH+CL’s target segment.
The main message of the single advert is the value proposition: With the ability to cool and
heat while purifying the air, capturing 99.95 per cent of fine particles, the sleek, compact
bladeless DPH+CL provides all-year-round usage, air protection and a clean home.
Mass-media teaser adverts aim to evoke interest and evaluation (Solomon et al, 2014),
through a visual representation of a problem (indoor pollution) and of the solution (the
DPH+CL). The advert (see appendix 1) is a teaser advert that piques interest by conveying
the value proposition and using a call to action to drive consumers to the Dyson website.
6.2 Hierarchy of effects
Hierarchy of effects concern which consumers move from initial awareness to becoming brand
loyal (Solomon et al, 2014). The advert (see appendix 1) effectively evokes the bottom layer
effects of awareness by informing the market through knowledge and desire by giving reasons
to purchase the product.
The slice-of-life technique that presents a dramatised scene of everyday life (Moriarty et al.
2015) is employed in the advert and the full suite (see appendices) to explain technical aspects
of the DPH+CL through rationality. The advert effectively uses rationality to inform the target
segment of the DPH+CL’s handling of indoor bacteria and to emotionally stimulate consumers
to fear potential uncleanliness. This can create a lack of safety, a low-level need on Maslow’s
hierarchy of needs (Solomon et al. 2014), which can lead customers to want to purchase the
DPH+CL.
86.3 Integrated Marketing Communication Mix
Integrated Marketing Communication (IMC) mix is a process from planning through to
measuring the marketer-controlled promotional marketing communications, used to present the
value proposition and build consumer relationships (Solomon et al. 2014). Table 6.1 identifies,
defines and exposes the application of the IMC mix used for the DPH+CL.
Table 6.1 DPH+CL Integrated marketing communication mix
IMC mix Definition Application
Print Advertising One to many, mass- Print adverts in long-life magazine
communication channel, used platforms like In Style and Women’s
to build brand awareness Health to target highly specific
(Solomon et al. 2014). audiences. The high credibility
counterbalances the low credibility of
the advert.
Consumer sale Used to target consumers and Leaflets are present in the retailers
promotion (Point retailers, promotes immediate that stock the DPH+CL to build
of Purchase sales (Solomon et al. 2014). awareness and exposure while
communications) providing detailed information to
consumers and retail sales staff.
Public Relations Public Relations is a highly Interviews the Canadian Reviewer
credible one-to-many and videos new releases as YouTube
communication used to build videos created by country-specific
product exposure and divisions of Dyson, profiles the
relationships with stakeholders DPH+CL, shares care tips and how-to
(Solomon et al. 2014). instructionals.
Personal Selling A two-way communication A chat with a live person box, a
channel, that aims to educate two-way-communication channel,
and assist consumers (Solomon is present on the Dyson website.
et al. 2014).
Table 6.1 outlines Dyson’s IMC mix of advertising, point-of-purchase communication, public
relations and personal selling. Adverting in magazines, which are highly credible and serve as
a long-life platform, are used to target highly specific audiences (Moriarty et al. 2015). Leaflets,
a point-of-purchase communication, are present in retailers that stock the DPH+CL. They
provide detailed information to potential consumers and retail staff, which constitutes effective
one-to-one marketing. Through the highly credible public relations channel, interviews and
interactive video news releases are used to build product exposure and awareness, while
sustaining relationships with stakeholders (Solomon et al, 2014). Dyson’s website uses a live-
chat box for the purpose of personal sales.
9.
6.4 Unity of messages
Although delivered slightly differently, each promotional channel (see Table 5.3) delivers the
same main message consistently across all promotional communication pieces. This highlights
the problem of polluted air and positions the DPH+CL as the solution. Dyson have chosen
higher-end magazines and credible outlets to conduct public relations, such as the Canadian
Reviewer. This supports Dyson’s upper-class, higher-quality brand and product image.
7.0 Placement
7.1 Channel strategy
Dyson implements a hybrid-distribution strategy by utilising both direct channels (e-
commerce) and indirect channels (intermediaries). As a high-priced shopping item, it is
unlikely consumers will order the DPH+CL online without having experienced it in person.
Therefore, the DPH+CL is offered through independent intermediaries, which are companies
or individuals not controlled by any manufacturer, who offer a variety of brands and goods
available for purchase (Pitt, Berthon and Berthon 1999; Solomon et al, 2014). Intermediaries
purchase and assume responsibility of the goods, then on-sell them, making it a cost-effective
channel for Dyson to utilise. The Dyson service centres Australia-wide are manufacturer-
owned intermediaries that do not conduct sales operations.
7.2 Distribution Strategy
A distribution strategy establishes the number of distribution channels and intermediaries used,
the level of distribution intensity and the use of a conventional, vertical or horizontal system
(Solomon et al, 2014). The DPH+CL uses a conventional multi-level marketing system where
each member works autonomously and relationships are strictly buying and selling (Solomon
et al, 2014). The choice to use intermediaries leads to a reduction in costs for Dyson, as they
handle logistical activities creating greater distribution efficiency. Consumers look to compare
shopping items, therefore intermediaries see that consumers can purchase a variety of items
from one retailer (Solomon et al, 2014) and further, that the DPH+CL is placed with similar
product category items.
Retail sales staff conduct personal selling and act as touch points, as confirmed by Shaun from
Dyson Coopers Plains (2017, personal communication, 18 October). Retail sales staff are given
information and training to effectively convey the DPH+CL’s value proposition and uphold
Dyson’s brand image.
7.3 Distribution Intensity
Distribution intensity refers to the level at which a product is sold through retailers and outlets.
The DPH+CL appropriately uses selective-distribution intensity, as it is a shopping item for
which consumers are looking to shop around. Therefore, being more accessible than exclusive
distribution provides more market coverage. Intensive distribution is not used due to the
10DPH+CL’s high cost and product class and because Dyson’s upper-class image could suffer
from being present in less appropriate stores.
7.4 Selection of retail outlets
Table 7.1 identifies the retailer that offer the DPH+CL and what service and merchandise
assortment classification they are.
Table 7.1 Retail types and retail classification types
Retail type Retailers Service Merchandise assortment breadth
that stock classification and (number of lines available) and depth
the definition (assortment of product line specific
DPH+CL options) (Solomon et al, 2014)
Specialty Harvey Full service – Narrow and deep
store Norman, JB trained staff that
Hi-Fi, Betta assist throughout
Electrical, the shopping
Bing Lee experience and
Electrical consumers could
pay more due to the
full-service
benefits (Solomon
et al, 2014).
Higher-end Myer, David Full-service – Broad and deep
Department Jones trained staff that
store assist throughout
the shopping
experience.
Consumers could
pay more due to the
full-service
benefits (Solomon
et al, 2014).
Everyday Target, Big Limited – offer Broad and deep
department W limited service,
store where staff are
potentially
knowledgeable
but offer limited
assistance,
therefore could
prices could be
11lower (Solomon
et al, 2014).
From Table 7.1, it can be deduced that the DPH+CL is placed in specialty stores like Harvey
Norman, high-end department store like Myer and everyday department stores like Target.
Department stores can build exposure and make the DPH+CL more readily available to
consumers. Specialty stores carry a narrow but deep assortment of product lines, allowing
staff to have extensive knowledge about those lines and provide a full-service experience.
High-end department stores are full-service retailers that carry a broad and deep
merchandise assortment, while everyday department stores like Target offer limited service
and carry a broad and deep assortment of merchandise.
8.0 Conclusion
The purpose of this report was to make recommendations for a detailed marketing analysis of
the DPH+CL product. Being an extension on the Air Multiplier Range sees the convergence
product as a single competitor in the Australian market with lower variable costs. This, coupled
with its skimming strategy, supports its profit and market-share objectives. The use of hierarchy
of effects sees the value proposition using a slice-of-life creative appeal, which is effectively
and consistently conveyed across the integrated marketing mix. The selective distribution
intensity sees the DPH+CL appropriately and efficiently placed in speciality and department
stores such as Myer. Dyson have effectively created and provided value, through a deep
understanding of the target segment and how to communicate with them, as well as having a
firm grasp of where the DPH+CL sits in the product lifecycle. This is effectively carried
through the product, price, promotion and placement aspects of DPH+CL.
129.0 Recommendations
Drawn from the analysis above, the proceeding recommendations have been made specifically
for the purpose of this report:
7. Corporate Social Responsibility (CSR) is a management strategy that businesses infuse
into their practises to achieve and take responsibility for their environmental, economic
and social efforts. An environmental conservation recommendation is to extend on the
current process, where call tags (free postage tags) are sent to consumers enabling them
to post their broken machines to their closest Dyson Service Centre to get repaired. The
extension will see consumers able to post their old and broken machines free of charge
to centres where they are recycled or fixed and sold on. Coupling the call tag with a
voucher for 15-20 per cent off their next purchase for consumers who participate will
create an opportunity for consumers to recycle responsibly and be rewarded for it. It
also educates consumers on the value placed upon recycling by Dyson and will
encourage repeat business through the upgrading of machines.
8. To create a promotional pack that comes complete with information such as leaflets and
the DPH+CL product that is sold specifically to allergy and asthma clinics at a very
discounted price. These are establishments that people go to when they are sick,
therefore this product will promote a cleaner and safer environment for not only for the
staff but also customers. By placing the product in such places, it will boost the
establishment’s overall cleanliness standards while providing a live product
demonstration to potential consumers.
13List of References
Barrett, B 2016, DYSON CRAMS A HEATER, FAN, AND AIR PURIFIER INTO ONE
DEVICE, viewed 29 August 2017, .
Dyson Product Expert, K 2017, ‘What square footage cover this fan?’, Questions and
Answers, viewed 18 October 2017, .
Bertakis, KD, Azari R, Helms, LJ, Callahan, EJ and Robbins, JA 2000, 'Gender differences in
the utilization of health care services', Journal of family practice, vol. 49, no. 2, pp. 147-152,
viewed 29 August 2017, http://web.a.ebscohost.com/ehost/detail/detail?vid=0&sid=ce2fad8f-
c17d-4277-b71e-
2c37e8bcf588%40sessionmgr4007&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=285
0496&db=hch.
Daewoo, Daewoo Portable 6.5L 4-in-1 Air Cooler, Fan Heater, Air Purifier & Humidifier –
BLACK, viewed 29 August 2017, .
Dyson Australia 2017, The new Dyson Pure Hot + Cool Link - Official Dyson Video, viewed
18 September 2017, .
Dyson, Explore the Dyson Pure Hot+Cool Link, viewed 29 August 2017,
.
Ezysleep, Daewoo 4 in 1 Air Cooler, Fan Heater, Air Purifier & Humidifier – Free Delivery,
viewed 29 August 2017, .
Gebhart, A 2016, Purified heat keeps Dyson's bladeless fan on the cutting edge, viewed 29
August 2017, .
Moriarty, S, Mitchell, N, Wells, W, Crawford, R, Brennan, L, & Spence-Stone, R
2015, Advertising: principles and practice, 3rd edn, Pearson Australia, Melbourne.
Pacific magazines, Women’s Health, viewed 29 August 2017,
.
Pitt, L, Berthon, P, & Berthon, JP 1999, Changing channels: The impact of the internet on
distribution strategy, Business Horizons, vol. 42, no.2, pp.19–28.
Seden, D 2013, Dyson, viewed 30 August 2017,
.
14Sevilla, G 2017, Q&A with Dyson's Paul Dawson on the new Dyson Pure Hot+Cool Link,
viewed 29 August 2017, .
Solomon, MR, Hughes A, Chitty, B, Marshall, GW & Stuart, EW 2014, Marketing: real
people, real choices, 3rd edn, Pearson Australia, Frenchs Forest.
The University of Edinburgh 2017, Careers Service, viewed 20 October 2017,
.
TSCStores, FOUR SEASONS 4-in-1 Air Purifier, Heater, Fan and Humidifier, viewed 29
August 2017, .
Yoo, T 2017, REVIEW: This wifi-connected Dyson heater is awesome, but $799 is still a lot
of money for warm air, viewed 29 August 2017,
.
15Appendices
Appendix 1 - Chosen print advert from Women’s Health August 2017 edition
16Appendix 2 – Dyson Pure hot+cool link product profile from the Promotion Leaflet
17Appendix 3 – Dyson Pure Hot + Cool Link basic features from the promotion leaflet
18Appendix 4- HEPA filter breakdown from the promotion leaflet
19Appendix 5 – Actual product layer feature breakdown from the promotion leaflet
20Appendix 6 – Internal components of the Dyson Pure Hot + Cool Link from the promotion
leaflet
21Appendix 7 – Quiet Mark approved information from the promotion leaflet
22Appendix 8 – Dyson Link App information from the promotion leaflet
23Appendix 9 – Complete Dyson Air Multiplier Range from the promotion leaflet
24Appendix 10 – Dyson Hot + Cool image and its key features from the promotion leaflet
25Appendix 11 – Dyson cool image and its key features from the promotion leaflet
26Appendix 12 – Image taken 14 September 2017 in Harvey Norman Gympie of the packaging
the DPH+CL comes in
27Appendix 13 – First of the four pages from the advert suite in Women’s Health
28Appendix 14 – Second of the four pages in the advert suite in Women’s Health
29Appendix 15– Third of the four pages in the advert suite in Women’s Health
30Appendix 16 – Fourth of the four pages in the advert suite in Women’s Health
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