Dyson spring 2016Marketing plan, Advanced Strategic Marketing and Plannng

Rachel Wingenbach, Catarina Matos, Kristen Mason, Ciraylie Mendoza, Isehise Ajayi, Lina Evlasnom

AbstractA marketing plan as to the realize of Dyson Eye 360 in Ontario, Canada.

Table of ContentsExecutive Summary............................................................................................................2

Current Market Situation...................................................................................................3

Internal Analysis.............................................................................................................3

External Analysis............................................................................................................3

Political/Legal Trends.................................................................................................3

Economic Trends........................................................................................................4

Social-Cultural Trends and Technological Trends.......................................................4

Ecological Trends.......................................................................................................4

Competitive Trends....................................................................................................4

Competitive Analysis......................................................................................................5

SWOT – Dyson LTD.........................................................................................................5

SWOT – Dyson Eye 360..................................................................................................7

SWOT – iRobot and Roomba 980...................................................................................8

Target Market, Segmentation, Customer Analysis, Positioning.........................................9

Target Market................................................................................................................9

Target Market Segmentation.........................................................................................9

Bottom – Up Approach................................................................................................10

Brand Positioning.........................................................................................................11

Perceptual Map............................................................................................................11

Market Attractiveness Matrix......................................................................................12

Objectives and Issues.......................................................................................................12

Marketing Objectives:..................................................................................................12

Financial Objectives:....................................................................................................12

Societal Objectives:......................................................................................................13

Marketing Strategies and Program Tactics......................................................................13

Social Media.................................................................................................................13

In-Store Demonstrations..............................................................................................14

TV Advertising..............................................................................................................15

Co-operative Advertising..............................................................................................16

Donation...................................................................................................................... 16

Dyson 360 Eye Robot Vacuum Blocking Chart March 2016 – March 2017..................17

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Financial and Operational Plans.......................................................................................19

Metrics, Implementation Control and Contingency Plans................................................19

Social Media.................................................................................................................19

In-store Demonstrations..............................................................................................19

TV Advertisements.......................................................................................................20

Co-operative Advertising..............................................................................................20

Contingency plan......................................................................................................... 20

Works Cited..................................................................................................................... 22

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Executive Summary The following document is the marketing plan for the new Dyson 360 Eye Robot Vacuum. The marketing plan analyzes the current market situation, the target market, objectives for the 360 Eye Robot, marketing strategies and programs, financial plans and the metrics, implementation control and contingency plan.

The marketing plan for the Dyson 360 Eye Robot Vacuum includes advertising to high-income men and women using programs that will advance Dyson’s market share, sales revenue, brand awareness and profitability. Programs have been carefully selected to ensure maximum impact of the Dyson 360 Eye Robot will reach the targeted audience. The programs selected include social media advertising, in-store demonstrations, television advertising, co-operative advertising and cause-related marketing. These programs will highlight the innovation and convenience of the 360 Eye Robot, and remain consistent to the brand positioning.

The selected marketing programs will lead to the overall success of the Dyson 360 Eye Robot as it addresses the unique selling points and reaches the correct audience. The marketing plan will strive to reach Dyson’s objectives of market share, sales revenue, brand awareness, profitability and more, by providing consistent advertising to the various programs. With respect to the projected gross sales, the requested marketing budget for this marketing plan will be $2,995,600.

The following marketing plan calls for a 20.1% net profit of the Dyson 360 Eye Robot in the first year of sales between April 1, 2016 and March 31, 2017. It is expected of the 360 Eye Robot to reach 54% of the target market in the first year of sales, creating gross sales of $6,000,000. After manufacturing cost, the gross margin falls at $4,200,000, 70% of gross sales. To reach the net profit of 20.1%, Dyson will pay $2,995,600 - 49.9% of gross sales - in order for their new product to reach their target market.

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Current Market Situation Looking into the current market situation, Dyson has many reasons to pursue this growing market for robotics. Dyson has technology, the engineers and the awareness to obtain a substantial volume within this market share.

Internal Analysis "Take everyday products that don't work well, and make them work better." – Sir James Dyson As spoken by Sir James Dyson himself, Dyson LTD works hard at innovation and creating a better technology that consumers are looking for. Dysons’ manufacturer is located in Malaysia, which can potentially pose a threat if unexpected weather were to take place. This Location distributes Dyson products globally. Dyson also has the only microbiological lab within the vacuum market (Laidlaw, 2015), which allows testing and production of vacuums that capture .05 microns and allergens. The 5 fundamentals of all Dyson vacuums are followed with every new production:

1- Best suction within each price-point/class 2- All-floor purpose vacuums 3- Expels cleaner air 4- No added/extra costs after purchase 5- 5-year warranty

(Laidlaw, 2015) Continuing with these 5 fundamentals with ever production of new vacuum, Dyson has been able to secure 27% of the global vacuum market share (Business, 2012).

External AnalysisWhen looking at the external factors for Dyson, it must be understood what is happening within Canada in order to be successful when penetrating a new niche. Understanding these factors have aided with this marketing plan for Dyson 360 Eye launch in spring 2016 for Ontario, Canada.

Political/Legal Trends New Child Tax Benefit, given to all class of income, can lead to a greater household spending (Brennen, 2015) because this contribution will pump an “estimated $3 Billion to $4 Billion into the economy (Flavelle, 2015). Although this can be considered a benefit for those markets considered “luxury”, with the new Prime Minister, Justin Trudeau, it may change. Though even with lowering the bracket to annual income of $150,000 or lower (Bryden, 2015), Dyson can expect to still see a growth with product purchases being that the target market includes consumers as part of the new lower bracket.

Economic Trends Although the economy is considered by definition, in recession, it has recently added 12K full-time jobs (Preston, 2015). These full-time employees have more discretionary income, and keeps the growth of the economy steady. As quotes by chief economist,

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this recession is considerably the “Best. Recession. Even” (Babad, 2015). This is important for Dyson for justification of launch, if the recession was not considered as such, it would be a difficult time to introduce a new product, let alone an introduction to a new market.

Social-Cultural Trends and Technological Trends These two trends have been grouped together because of the symbiotic nature of each. Canadians are looking for products to enhance the hygiene within each’s lifestyle (cite transparency), and the increase of high-tech appliances (Marceux, 2014), the use of robotics to fit a fast-paced world is increasing. Consumers are looking for easy, less time-consuming measures in order to maintain a clean and hygienic household. With Dyson’s consumers’ perception of prestige and innovation, and the increase in robotics technology expansion, Dyson will be able to hold a competitive advantage during launch in Ontario.

Ecological Trends It is common knowledge that consumers’ care for the environment has been on a steady increase. Canada has been committed to improving the environment and sees it as an asset. A recent report suggest that Canada’s emission are 20 percent higher than what it initially committed to (Partington, 2013). As Canadians are concerned for the environment, they will look to brands who are progressive and environmentally friendly. Dyson, being the first to create bag-less vacuums (Uhlig, 2000), already has the status of being environmentally friendly. Using this, it’s material lifecycle assessment (Dyson, n.d.) (including never re-placed/washable filters) as well as the already large brand image, Dyson does not fall short of being within the environmentally friendly category of vacuums.

Competitive Trends When looking at the Dyson Eye 360 launch specifically, it has been noted that the robotic trends are on the rise and have an increasingly expanding market (Byers, 2015). With this increase, there is a great opportunity for the Eye 360. With this opportunity, there is also a threat of other competitors. IRobot’s Roomba has been exceptional within the robotic vacuums as well as other companies have entered this recently niche market; Like Electrolux and Neato. The current market is become filled and saturated with robotic vacuum technology.

Competitive Analysis Dyson 360 Eye Roomba 980 PowerBot VR9000

CompanyOverview

Founded by Sir James Dyson, microbiological lab with 3000+ engineers on

iRobot began the home robotic niche 10 years ago, it also produces, it also

Samsung is leading in a wide range of digital home appliances(Samsung, n.d)

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staff (Dyson, n.d.)

specializes in Defence/security and Remote Presence (iRobot, n.d.)

Revenue 1.9 Billion 557 Million 305 Billion (within all markets)

Height 8.2” 3.6” 5.3”Remote Control

Yes Yes Yes

Root-Cyclone Technology

Yes No No

Mapping capabilities

Yes Yes Yes

Battery Life 30 MinsAndroid iOS

Yes Yes No

Key Competitor to Dyson Eye 360, Roomba 980

SWOT – Dyson LTDStrengths

- Brand Awareness - #1 Trusted Brand [vacuum] in Canada Brand Spark (Brand Spark, 2015)- 1.9 Billion in revenue - £382million (Warman, 2014), which proves the success of the brand image/awareness

- Product Innovation- Patented Root-Cyclone Technology - First bag-less vacuums (Uhlig, 2000)

- Only vacuum manufacturer to have on site microbiological lab for testing products (Laidlaw, 2015)

- Dyson purchased Sakti3 battery company (Bomey, 2015)- with plans to build a factory, Dyson has the opportunity to improve and innovate battery technology

Weaknesses- Narrow target market

- “targets acclaimed and sophisticated customers…” (Seden, 2013). Although these consumers are narrower, they are willing to pay for a prestige item such as Dyson.

- Unhappy/satisfied work experience in Canada (Indeed, n.d.)- Many employees rate working for Dyson low, stating they would not recommend working for this company because of favoritism

- Poor online reviews for customer service (HomeStar , n.d.) - Which is something Dyson strive for to add to prestige service consumers look for.

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Opportunities- Currently over 3 million Canadians

have asthma (Asthma Society of Canada, n.d.)- many of Dyson products HEPA certified and approved/recommended by Canadian Asthma Association (Asthma Society of Canada, 2015) – Those effected are more likely to purchase Dyson to assist with household clean-up

- 27% of global vacuum market- Already owning this large amount of market share helps to build and attain a growth in robotic vacuums

- Brand expansion to Bladeless Fans and Hand Dryers - Although successful in vacuums, these expansions hold true to Dyson’s stance on innovation and are considered a great opportunity to pursue new markets

- “Big ticket” purchases still on the rise (Babad, 2015) - With big ticket on the rise, and Dyson prestige perception, this opportunity can be used to Dyson’s advantage.

- Ontario housing market expected to grow 2.2% for 2016 - Although unemployment is lower, with this increase in Ontario, Dyson’s target market has the potential to grow and cover a broader range of consumers

Threats- Lawsuit still pending (Civil Action

No. 12-30211-MAP, 2014) - Excel Dryers from 2012 stating Dyson Falsified and inflated results between XERLORATOR and Dyson Air Blade had dryer

Competitors pricing strategies are much lower than Dysono Dyson had to offer discounts

for the first time in 2014 due to competition (Euromonitor International, 2015)

- Unemployment rate for Canada rose to 7.0% - This poses threat to the narrow target market already presented for Dyson. Consumers will lose the willingness and ability to buy such prestige items

SWOT – Dyson Eye 360Strengths

- Brand AwarenessWeaknesses

- Not yet HEPA certified (Nowak,

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- 2/3’s of Dyson owners buy another Dyson (Clarke, 2003), these consumer who need another vacuum, preferably robotic, already Dyson owners will look to Dyson 360 Eye

- Product Innovation - Dyson’s “eye” - Tank-track wheels- Carbon Fibre Filaments (Roberts, 2014)

-- Took 16 years to create

- First designed a robovac in 2001, DC06 (Ulanoff, 2014) which it did not launch in order to create a better robot. - which means the new robot is 16 years in the making – consumers trust Dyson for making the best product available

2014) - Dyson utilizes this feature with many of the other models. This is a large selling feature as it is a consumer perception that Dyson utilize

- Physical Barriers and Restrictions- Stands 8.2” tall, pose issues for under couches or low chairs - 30-Min battery life (Jay, 2015)

Opportunities- Consumers are increasingly looking

for high-tech household appliances (Marceux, 2014)

- Increases the demand for robotic vacuums

Robotics moving from niche to mainstream markets (Byers, 2015)o More consumers are aware

of such innovations and have less learning to be taught throughout Canada

- Dyson purchased Sakti3 batter company (Warman, 2014) (Bomey, 2015)- With Dyson 360 Eye having a battery life of only 30mins, Dyson has the opportunity to build a new and more innovated battery internally for the robot, before launch

Threats Robotics market is saturated due

to the demand for robotic products (Byers, 2015)o There are many products

already being sold in Canadao Many other companies are

emerging to fill this market

Robotics market is saturated due to the demand for robotic products (Byers, 2015)o There are many products

already being sold in Canadao Many other companies are

emerging to fill this market- Bad reviews already circulating

online

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SWOT – iRobot and Roomba 980Strengths

- Owns approximately 83% of Robovac market - 12% Robotic Vacuum share globally, iRobot makes up 10% of that share (Heller, 2012).

- Pioneer of niche market - Over 14 Million sold in ten years (iRobot, n.d.), this means they have created and earned the trust of this niche to mainstream market

Weaknesses- Minimal technological differences

from 880, other than iOS and Android compatible

- Market Share: 557 Mil revenue in 2014 (iRobot, n.d.)- A weakness compared to Dyson’s already stated 1.9 Billion, clearly with a successful advantage. Dyson has the willingness and ability to aggressively penetrate the robotic vacuum market share

Opportunities- Increases the demand for robotic

vacuums - Robotics moving from niche to mainstream markets (Byers, 2015), being the pioneers, the Roomba series have a place within the robotic vacuum market and therefore have an already existing competitive advantage it can utilize.

- Currently over 3 million Canadians have asthma (Asthma Society of Canada, n.d.)

Threats- Negative online reviews

- Reviews (via cnet) have been instructing consumers to not purchase these high end products. Informing them that Roomba 880 is “just as good” and to wait for prices to drop (Jay, 2015)

- Robotics market is saturated due to the demand for robotic products (Byers, 2015)- There are many products already being sold in Canada - Many other companies are emerging to fill this market

- Dyson’s consumer perception - Seen as a superior product, Dyson already has the trust of consumers before launch; and with having 1.9 Billion, Dyson Eye 360 already poses a threat to the Roomba series

Target Market, Segmentation, Customer Analysis, Positioning

Target MarketThe following is an overall target market profile for the Dyson 360 Eye Robot

Vacuum; it covers the demographics, psychographics, geographics and benefits sought respectively. The target market consist of males and females, 35 years old and up who

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have families and a dual annual income of more than $100, 000. The consumers are involved in extracurricular activities and social events, value technological innovations and the robotic industry, early adopters – “embraces new technology before most other people do” (Rouse, 2007), places a high priority of keeping an immaculate image from the look of themselves to the look of their homes and material items, favours named brands and labels. The target market profile focuses on individuals living in densely populated cities with the focus of the Southern Ontario region living in either rural or urban neighbourhoods. The consumers currently own a vacuum (Dyson, preferably) and are looking for secondary one, they are time poor individuals, therefore are always looking for a way to save time on duties that are not of priority in comparison to their other responsibilities but need to get done and place high importance on prestige status amongst others.

Target Market SegmentationUsing the bottom – up approach, the target market number for the Dyson 360

Eye Robot resulted in 7, 452 people with a target market dollar number of $11, 177, 925.50.

Six segments have been identified for the Dyson 360 Eye Robotic Vacuum: Ontarian’s 35 years old and up consisted of 7, 912, 181 individuals (Super Demographics, 2014), homeowners with at least one vacuum – 92% (Electrolux, 2014), homeowners with a secondary vacuum – 32%, robotic market share– 13% (Kakroo, 2015), Dyson’s vacuum market share – 27% (BBC News, 2012), and Ontario residents with a income of $100, 000+ - 9.2% (Stats Canada, 2015). The growth potential for cleaning robots is estimated to grow to $2.6 billion by the year 2020, which presents a 208.79% increase in comparison to the 2013 amount of $981 million (PRNewswire, 2014), thus, creating a massive growth for the robot cleaning market.

Bottom – Up Approach

Population of Ontarian’s 35 years old and up(Super Demographics, n.d.)

7, 912, 181

91% Individuals Own One Vacuum(Electolux Group, 2013)

7, 912, 181 * .091 = 7, 200, 085

32% Individuals Own 2 Vacuums(Electrolux Group, 2013)

7, 200, 085 * 0.32 = 2, 304, 028

13% Belongs to Robotic Market Share(Kakroo, 2015)

2, 304, 028 * 0.13 = 299, 524

27% of Vacuum Market Share Belongs to Dyson(BBC News, 2012)

299, 524 * 0.27 = 80, 872

9.21338335% of Ontario population makes $100, 000+ annual income

(Statistics Canada, n.d.)

80, 872 * 0.921338335 = 7, 452

7, 452 people at $1, 499.99 (RRP of Dyson 360 Eye Robot) = $11, 177, 925.50

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Ontario residents who are 35 years old and up “have more disposable income and are willing to pay more for higher quality, luxury products” (Global Consumer Trends, 2012); consumers who fall within this age range are willing to pay more for products that fit their needs and gravitate toward environmentally friendly and sustainable items (Global Consumer Trends, 2012). Individuals on average clean 1 – 2 hours per day (Vacuums Guide, 2015), therefore, consumers with at least one household vacuum find it easier and more convenient to clean since vacuums pick up more dirt and dust than a human physically can. Consumers who own two vacuums have one for primary use and another one for secondary use which are typically vacuum cleaners that are used for cleaning spaces that the larger, primary vacuum cannot reach, for instance, small areas where crumbs are split, and used to reduce noise (Euro Monitor, 2015). Secondary vacuums are purchased because it is a “smaller item [with] different functions [in comparison to the primary vacuum] for multiple uses” (Euro Monitor, 2015). The robotic vacuum market generates 13% of market share, robotic appliances “provide a solution to the ageing demographics problem,” (Open Roboethics Initiative, 2014), therefore, aid in chores that the aging demographic may find difficult, such as cleaning. According a 2014 survey conducted by Open Roboethics, 75% of individuals stated that robotic vacuums are purchased due to aiding in house chores, 43% of respondents test the product out as an early adopter and 32% purchase a robot for [their] home as an extension of current electronic devices. Dyson (27% of the vacuum market), through its innovation, sustained enhancements to home cleaning and efficiency (Sidhu, 2010) consumers gravitate toward the Dyson products in comparison to its competition. Ontario residents with an income of $100, 000 (9.2%) spend 32.3% on housing and utilities (Medina, 2012) these consumers have a higher disposable income and are more keen to spend money on items that will benefit themselves and their families in the long – run.

Brand PositioningThe positioning strategy for the Dyson Eye 360 Robot is to appeal to each of its

target market segments by highlighting its innovation, unique features, convenience, prestige image and long – term benefit. It is of importance to position the Dyson 360 Eye Robot as an appliance that offers convenience to its consumers through its ability to manoeuvre and navigate through any floor type and avoiding obstacles along the way with it’s 360 degree vision which observes and interprets its surroundings all at once; the vacuum knows where it is, where it’s been and where it’s yet to clean (Dyson, n.d.), so the owner does not have to spend time cleaning areas themselves, allowing them to complete other duties that are of more significant than house chores. In addition, according to an Electrolux survey 30% of respondents stated that dust pick - up is the most important factor when purchasing a vacuum, which the Dyson 360 Robot adheres to with its excellent suction capability through its innovative cyclone technology.

With that being said, the following is the brand positioning statement chosen for the Dyson 360 Eye Robot, “To busy, time – starved individuals, 35 years old and up who

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want the highest quality and technologically advanced cleaning appliances to keep your home's pristine throughout the day our Dyson Eye 360 robot is for you. The Dyson Eye has 360 degree vision allowing the robotic vacuum to navigate independently, through it's one of a kind digital motor V2 equipped with continuous tank tracks to manoeuvre all over floors, a full – width brush bar to clean both hard floors and carpet and innovative cyclone technology that provides the best suction in comparison to all robotic vacuums, the Dyson 360 Eye Robot is an investment that will save you time and take the mess out of your life.”

Perceptual MapThe two most important factors, based on the target market segments needs,

placed on the perceptual map are suction and convenience. Regarding, convenience, it refers to the robotic vacuums independent capabilities such as, navigating itself through rooms and moving to its charging station when need be; this allows its owners to be able to allocate little to no time maintaining the vacuum.

The Dyson 360 Eye Robot is placed at a higher ranking for suction than the Roomba 980 due to its cyclone technology and increased suction abilities in comparison to its competition. However, the Dyson 360 Eye has a slightly lower ranking in convenience because the Roomba 980 has the ability to vacuum under sofas and chairs due to its advantage with a smaller height.

Market Attractiveness Matrix

Factor Weight Score Weighted ScoreBrand Image 0.4 8.0 3.2Market Share 0.5 9.0 4.5

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Market Growth 0.3 6.0 1.8Unique Positioning 0.4 8.0 3.2Total 12.7

Objectives and Issues

Marketing Objectives:Market ShareTo achieve a 5% market share of the robotic vacuum market in Ontario, Canada within the first year of sales, between April 1, 2016 and March 31, 2017.

Brand AwarenessTo increase brand awareness of the Dyson 360 Eye Robot Vacuum by 30% between April 1, 2016 and March 31, 2017.

Product DevelopmentTo increase the battery life of the Dyson 360 Eye Robot Vacuum before the release on April 1, 2016.

DistributionTo distribute the Dyson 360 Eye Robot Vacuum with a focus on Southern Ontario in existing Dyson locations including Lowe’s, Home Depot, Canadian Tire, Sears, Leon’s, The Bay, Wal-Mart, Best Buy and other specialty home appliance stores.

Marketing ProgramsTo increase brand awareness by increasing social media, TV advertising, in-store demonstrations, co-operative advertising and cause-related marketing initiatives beginning in March 2016.

Pricing StrategiesTo hold a premium price point of $1499.99 to encourage consumers to have a prestigious perception of the Dyson 360 Eye Robot Vacuum.

Financial Objectives:Sales ($)To reach 54% of the target market by achieving total sales of $6,000,000 in Ontario, Canada in the first year of sales between April 1, 2016 and March 31, 2017.

Profitability ($)

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To achieve a net profit of 20% in Ontario, Canada for the period April 1, 2016 - March 31, 2017.

Marketing Expenditures ($) (%)To introduce Dyson 360 eye robot in the market and capture 5% of the robotic vacuum market by spending $2,995,600 on marketing initiatives within the first year of sales, between April 1, 2016 and March 31, 2017.

Societal Objectives:Cause-related MarketingTo donate $100,000 to an Ontario University in order to encourage future engineers entering the industry before enrolment in September 2016.

Sustainability InitiativesTo increase Dyson’s sustainability by developing sustainable vacuums in the most efficient manner to reduce waste before product launch on April 1, 2016.

Marketing Strategies and Program Tactics

Social MediaSocial media advertising will be developed directed at men and women ages 35

and up with busy lifestyles in Southern Ontario. Social media will quickly capture the attention of this target audience to demonstrate the simplicity and convenience of owning a Dyson 360 Eye Robot. This program will work towards building awareness of the new Dyson 360 Eye Robot, while also increasing the sales revenue, market share and profitability objectives for the new product.

Social media will be used to produce short videos, photographic advertisements and full advertisements on Twitter, Facebook, Instagram, LinkedIn and YouTube. This social media presence will occur all year around beginning March 6th, 2016 until March 5th, 2017. For the full year, Facebook and Instagram will run at a total of $7,300 with Facebook reaching between 2800-7300 people within the target audience per day ($20 per day for 365 days) and Instagram will reach between 8,300-22,000 people daily under the same budget as Facebook for the target audience between 35-65 years of age. LinkedIn will reach 1000 impressions for $10 per day for 365 days making it a grand total of $3,650. Twitter costs $1.35 per engagement with the Dyson engagement at 15 per day for 365 days costing a total of $7,300. Lastly, YouTube will reach 500-2000 views daily at $20 per day for 365 days costing $7,300. Altogether, all social media advertising will cost a grand total of $25, 550.

This would attract the target group and be successful because when deciding the total daily budget for advertising expenses on specific social media accounts, it is possible to specifically narrow down exactly what type of audience you are looking to

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target. Specifically using Facebook as an example, the target audience can be narrowed down by province and specific area of the province. Keywords can be selected to target what type of consumer you are looking for. Keywords such as “Dyson; vacuum; robotics; technology” are specific towards Dyson and will help narrow down the search for a target audience.

As for the content itself, Facebook, Instagram, and Twitter would consist of the simplistic Dyson photos featuring the Dyson 360 Eye Robot as well as short 30 second clips of a Dyson 360 Eye Robot cleaning up a short line of mess on the ground. YouTube would be a venue to post full-length demonstrations and advertisements showing what the robot does and how it can benefit the life of a busy couple or family. LinkedIn would have picture advertisements placed throughout the website. Since advertisement content is linked towards finding the correct target market, the people who would see these would be the people who would most fit the target market profile without the company having to worry about seeking them out specifically.

In-Store DemonstrationsIn-store demonstrations of the Dyson 360 Eye Robot Vacuum will take place in

select Canadian Tire locations in Southern Ontario to work towards marketing objectives of sales revenue, brand awareness and market share. This program will encourage consumers to purchase the Dyson 360 Eye Robot by presenting them with the physical object and highlighting the benefits of the robot. As consumers are shown the innovation in the Dyson 360 Eye Robot and persuaded to purchase, it will increase the sales revenue, market share and brand awareness. Also consumers who view the in-store demonstration but do not choose to purchase will increase brand awareness of the Dyson 360 Eye Robot.

A sales representative who has knowledge of the features of the Dyson 360 Eye Robot and the unique selling propositions will lead the in-store demonstrations. The demonstrations will focus on the powerful suction, 360-degree camera and tank tracks of the Dyson 360 Eye Robot. Representatives will be set up at a booth at the front of their selected Canadian Tire location with a vacuum and the TV advertisement. This will allow the representative to talk to every customer entering the store and create a buzz in the marketplace.

The cost of the in-store demonstrations is based off hiring 14 sales representatives to work in select Canadian Tire locations for 15 hours per weekend. Representatives will work Friday 4pm-9pm and Saturday and Sunday 12pm-5pm, as consumers spend more money on weekends compare to weekdays (Jacobe & Jones, 2009). Each representative will be paid $11.25 per hour, for a combined total of $2,362.50 each weekend. The in-store demonstration program will run for a total of 36 weeks between April 1, 2016 and March 31, 2017. The in-store demonstration program will cost $85,050.

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The in-store demonstrations will take place in Canadian Tire locations in densely populated cities with high average family incomes. The Canadian Tire locations include: Toronto Eaton Centre, Toronto Lakeshore, Kerr Street Oakville, Halton Village Square, Ancaster, Upper James Hamilton, Stoney Creek, Burlington Mall, Maple View Drive Barrie, Stone Road Guelph, Waterloo, Fairway Road Kitchener, Cambridge Hespeler and London North. The demonstrations will run for 4-week programs, with increases during November and December to account for the holiday season. All dates are outlined on the blocking chart.

TV AdvertisingTV advertising will be used to develop a new advertising campaign directed at

men and women who have a busy lifestyle from the age of 35 and up in Southern Ontario that will demonstrate how simple the Dyson 360 Eye Robot is to use as well as how convenient the robot is for cleaning the home while away. This program will directly impact the brand awareness of the Dyson 360 Eye Robot, as well as the sales revenue, market share and profitability objectives.

The program will produce a 30 second television advertisement to be aired on HGTV, DIY Network and Lifetime during the primetime hours of 8pm-11pm, each day of the week (Monday-Sunday). The advertisement will run between the period of March 6th, 2016 until March 5th, 2017 in specific timeframes each worth $50,000 for 40 weeks worth. This will be a total of $2,000,000. The specific weeks in which the advertisements will run are fully detailed below on the blocking chart. These times will allow target consumers to have enough time before the launch to learn a bit about the product and what Dyson is releasing. It will also give the consumers time throughout the year to see the advertisement just enough times to possibly consider purchasing it for their summer months at home where consumers may not want to be vacuuming as much seeing as it is incredibly hot in the summer, or it may give consumers and idea for Christmas gifts. Spreading out the campaign throughout 40 weeks gives consumers enough visions of Dyson without overwhelming them to a point where it would turn consumers off of the company and product.

These channels were chosen as the best choices for the target audience because the ages of viewers who watch these channels at this primetime hours range between 25-45 years of age with an average annual household income of $100,000+ (Prime Media Productions, n.d.). These viewers are both male and female. According to Prime Media Productions, the viewers of these channels are some of the most upscale viewers in cable with some of the highest income. This is a perfect venue for Dyson to reach the absolute best target audience they can that will be interested in the product as well as being able to afford the product. Viewers of these channels are also always looking for new and inventive ways to keep their homes organized and clean and the Dyson 360 Eye Robot would be the perfect fit for their homes and lifestyles.

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Co-operative AdvertisingCo-operative advertising of the Dyson 360 Eye Robot will be initiated with

Canadian Tire, Best Buy, Walmart and The Brick. This program will work towards Dyson’s objective of sales revenue, market share and brand awareness. Co-operative advertising will work towards the objectives of sales revenue and market share because it will increase the sales of the Dyson 360 Eye Robot. The program will also build awareness of the new vacuum by introducing it to consumers who look through Canadian Tire, Best Buy, Walmart and The Brick’s flyers.

The co-operative advertisement will consist of adding the Dyson 360 Eye Robot Vacuum to the selected weekly flyers of Canadian Tire, Best Buy, Walmart and The Brick. The advertisement will not include a price discount, but will instead read “Only $1499.99! Dyson 360 Eye Robot Vacuum navigates itself with cyclone technology! While Quantities last”. This message will create awareness of the new Dyson product, highlight the features and create a desire for the product among the target market.

The cost of the co-operative advertising program is directly based off the projected sales of each retailer. Through sources and educated guesses, it is suggested that Canadian Tire will hold 40% of sales, Best Buy will hold 10% of sales, Walmart will hold 8% of sales and The Brick will hold 7% of sales. Retailers will be paid 2.5% of their total Dyson 360 Eye Robot sales for each week of co-operative advertising that occurs. For each week advertised, Canadian Tire will be paid $60,000, Best Buy will be paid $15,000, Walmart will be paid $12,000 and The Brick will be paid $10,500. It is planned to have 6 weeks of co-operative advertising with each retailer, for a total of $585,000.

The co-operative advertising will run in a sequence of Canadian Tire, Best Buy, Walmart and then The Brick to create a consistency in the program. Each week of retailer advertising in outlined on the blocking chart, but follows a pattern to ensure that Dyson is reaching its target audience. Co-operative advertising will generally begin and end on weeks without TV advertisements to continue to build awareness and sales.

DonationA donation will be made to the University of Waterloo mechanical engineering

program towards scholarships for future mechanical engineers. This program will directly impact the cause-related marketing goal set for the Dyson 360 Eye Robot Vacuum. The donation will go straight to student’s tuition to bring the best minds into the engineering field.

Dyson’s donation towards scholarships at University of Waterloo mechanical engineering program will be $100,000. The donation will be sent to the University of Waterloo on the week on August 7, 2016. This will allow the University time before the fall semester begins to choose students that will receive the scholarship.

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This program will also be beneficial for Dyson as it creates a relationship between the company, the students and the University. The donation can create a pathway for students between post-secondary education and the workplace, depending on factors such as grades. Students can have the opportunity to have their education sponsored by Dyson, a leader of product innovation. The program also allows Dyson to have a relationship with the University of Waterloo; the largest and best ranked engineering school in Ontario (Thomas, 2012). This new relationship could lead to Dyson employing the best engineers entering the workforce.

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Dyson 360 Eye Robot Vacuum Blocking Chart March 2016 – March 2017

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Financial and Operational Plans

Dyson 360eye Robot Vacuum P&LFor the period April 1, 2016 - March 31, 2017

$ %

Gross Sales $6,000,000 100.0 %

Cost of Goods Sold $1,800,000 30.0 %

Gross Margin $4,200,000 70.0 %

TV Advertising $2,000,000 33.3 %

In-Store Demonstrations $85,050 1.4 %

Co-operative Advertising $585,000 9.8 %

Social Media Advertising $25,550 0.4 %

Donation $100,000 1.7 %

Contingency Plan $200,000 3.3 %

Marketing Expenses $2,995,600 49.9 %

Net Profit $1,204,400 20.1 %

Metrics, Implementation Control and Contingency Plans

Social MediaBy monitoring social media platforms using Google analytics, Dyson is able to

track the activities on social media that involve their product. Being able to track likes, dislikes, shares, references and so on. Dyson can monitor the change in Brand awareness by the amount of individuals that mention any related Dyson post. It can also be used to measure customer attitudes and customer satisfaction by monitoring opinions on the products. Brand image and customer level of satisfaction are very important to the success of a product. These metrics will be monitored daily so as to keep track of any social media trend that could affect the product or any opportunities that may arise. Therefore, all social media platforms used for this marketing campaign will be updated daily throughout the marketing plan period.

In-store DemonstrationsIn-store demonstrations focus on the Dyson 360 Eye Robot’s benefits and

functions, prompting consumers to purchase the product. The effectiveness of in store demonstrations can be measured by installed base. With technological products that do

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not require updates often, such as vacuums, if there is an increase in the number of customers who already own vacuums purchasing the robot, this will show the effectiveness this strategy. Installed base can be monitored with every purchase of a Dyson vacuum. To determine the number of customers who already own vacuums, a quick survey could be conducted after the in-store demonstration before the purchase. In-store demonstrations can also be measured by the number of sales that occur in each of the Canadian Tire locations with the program, compared to Canadian Tire locations that do not have the in-store demonstration program.

TV AdvertisementsDyson TV commercials focus on its benefits and functions. This will prompt

consumers to purchase the product. The effectiveness of TV campaign ads can be measured by installed base. With technological products that do not require upgrades often, such as laptops and vacuums, if there is an increase in the number of customers who already own vacuums purchasing the 360 Eye Robot, it can suggest the effectiveness of TV advertisements. Installed base can be monitored with every purchase of a Dyson vacuum. This will allow insight in consumers who already own a vacuum. A quick survey could be done at the point of purchase to estimate how many individuals already own a vacuum and are willingly purchasing the Dyson 360 Eye Robot.

Co-operative Advertising Co-operative advertising can be measured by the sales of Dyson vacuums and the amount of market share attained. An increase in sales, especially at the stores where Dyson is in association with a retailer where their product is promoted will show the effectiveness of this strategy. Therefore an increase in market share will be a good metrics system used to measure this strategy. The amount of market share obtained by Dyson can only be known after the annual sale period. To monitor an increase in the market share, an estimate of how much of the robotics market Dyson has achieved every quarter in the annual sales period will aid them in keeping track of how much of the market size they want to attain.

Contingency planThe adoption rate and success of a new product can be affected by many factors

or changes. Some of the key factors addressed in the contingency plan are demand and supply, key competitors, and environmental disasters. Smooth transitions through disrupted strategies or programs are difficult to achieve; however, the success of the product will depend on the company’s ability to adapt to changes while meeting the company’s objectives.

A supply shortage due to inaccurate sales forecasting can interfere with sales, profitability and marketing objectives. If the demand for the Dyson 360 Eye Robot is higher than the supply of the vacuum it will lead to a loss of sales. Also, consumers may be frustrated by the product’s lack of availability, which can lead to a loss of customers

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and sales revenue. The reputation of the company will be damaged in the consumer’s eyes if the company can’t meet customers demand.To ensure that supply shortages do not occur, the contingency plan will provide enough access to important information to functional teams across departments that are involved in the marketing plan to prevent misalignments and generate proper forecasting based on the actual product demand. The contingency plan will include an expedited shipping plan to supply product to locations that have shortages.

Key competitors considerably lowering the price of similar products could potentially disrupt Dyson’s market share, sales, and profitability objectives for the 360 Eye Robot. Consumers may be persuaded to purchase alternative robot vacuums if a competitor has an offering for significantly lower cost or has a unique selling proposition. The contingency plan suggests offering consumers a limited time rebate. This allows Dyson to hold its prestigious price, but help move the product. This strategy is consistent with Dyson’s brand image, which is characterized by quality and our overall marketing strategy.

Extreme weather, long delays and downgraded vessel deployment, and harbour strikes (CBC News, 2014) could potentially cause product loss, supply shortage, loss of market share, sales and profit, and damage to credibility from distributors and customers. Almost every Dyson 360 Eye Robot objective would be disrupted. The contingency plan to overcome extreme weather conditions and delays is to develop a local warehouse to house products, purchase business insurance for the correct amount of coverage (Bisimplified, n.d.) and have an alternative shipping option.

With this business contingency plan, it ensured that alternative actions and resources are identified so employees can be aware of their responsibilities. Clear communication to all members of the organization that are involved in the marketing plan is important for a smooth recovery and making sure adequate resources are available.

Event Impact on business Solution to deal with event

Supply shortage due to inaccurate sales and marketing forecasting

Interfere with sales, profitability and marketing objectives

Loss of customers Loss revenue and

profit Loss of brand

credibility Damage of

Expedited shipping plan Improve communications

across departments to prevent misalignments and

Generate proper forecasting

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company’s image

Key competitor lowers the price considerably

Disrupt our market share, sales and profitability objectives

Rebate limited time offer

Competitor launches a new more technologically advanced product

Obstruct the success of a number of objectives

Use the dual-product rollovers strategy

Extreme weather, long delays and downgraded vessel deployment, and harbour strikes

Product loss Supply shortage Loss of market

share, sales and profit

Damage of image and credibility from distributors and customers

Have a local warehouse Pull out product from US

warehouses Purchase the right kind of

business insurance Have an alternative

shipping options

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