Marketing Plan Template
Project 3

1.0 Executive Summary
As the latest offering of innovative products from the Dyson stable, the company's latest offering, a cordless vacuum cleaner with a swappable battery unit is set to be launched for the benefit of its customers. The product would be unique to the extent that it offers more hours of uninterrupted usage to the customers and hassle-free storage and retrieval of the product. This makes it a delightful user experience as against the conventional vacuum cleaners where a customer needs to run around finding a source of power and also heavy handling of the equipment while storing and retrieving.

The environmental scan for the potential market of the product shows that there is a high scope for the new product in the market of vacuum cleaners. Since the existing customers are facing difficulties about vacuum cleaners with cords, our cordless vacuum cleaners would prove to be a valuable substitute for these outdated models. Hence there would be new demand as well as replacement demand for the new product owing to its disruptive technology.

The segmentation, targeting, and positioning of the product should focus on marketing the product to the population of the 25-54-year-old population particularly housewives and others too. The company should use differentiated pricing and not premium pricing for the new product to capture the major share of the potential market. The marketing objective thus focuses on achieving a market share of 10% within a year and 40% over the next five years.

The Breakeven sales for the product are proposed to be 75000 units in the first year and the continuing years. The Total costs include $30,000,000 as fixed costs and $400*75000 = $30,000,000 as variable costs. The price of the product should be placed at $800 which would yield a revenue of $60,000,000 per year (75000*$800).

2.0 Situation Analysis
2.0 Product or service description
The new Dyson Model X is the vacuum cleaners that provides the convenience of cordless lightweight model with extended cleaning time facilitated by swappable batteries.
2.1 Internal environment scan (SWOT analysis)

The strengths and weaknesses of a company represent the internal environment of the company and opportunities, and threats represent the external environment of the company(Mackechnie, 2015).

Strengths of Dyson:
Innovations in new product development are one of the key strengths of the company. The company makes heavy Investments in research and development in producing products that would make life easier for people. This has created brand loyalty amongst its customers as the Machines provided by Dyson like the bagless vacuum cleaners, energy efficient dryers, and desk fans with no blades have made revolutionary products that expand the strength of the company(Harmon, 2016)

Weaknesses:
The main weakness of the company is its high priced products than its competitors like Hoover, Siemens, Oreck, etc. This is mainly due to the fact of a high quality of the products being made by the company. This is the major weakness of the company as its products satisfy only the needs of the high-end customers in the industry due to its higher price(Research, 2018).

Opportunities: Dyson sells its products in over 50 countries and it still expanding to become a Global leader. The profits of the company have doubled since it has started exporting as the quality of the products has created a good brand image for the company(Gottlieb, 2004).

Threats: Dyson faces a lot of competition in the Global market, and its competitors already possess high brand image in the world market. The biggest competitors that Dyson faces in the world market include Electrolux, Siemens, Bosch, etc. These competitors provide a wide range of vacuum cleaners each one for a different use.

2.2 Marketing objectives:
The short-term marketing objective of this new model is that Dyson model will achieve a 10% market share in the industry of Vacuum cleaners by the end of the first year, and the long-term objective is that it will achieve a 40% market share by the end of the fifth year(Kerin, Hartley, & Rudelius, 2017).

3.0 Environmental Scan
3.1 PESTEL analysis

Political environment: Political issues like Brexit of the UK from the European Union have not affected the company so far. The world Trade organizations tariffs, which comes in a range of 5 to 10% has not affected the company's operations for trading with European Nations(Wood, 2017).

(i) Read the two Economist articles entitled ‘Debt is Good for You’...