The Dyson Company was found Sir James Dyson around 1970 when he launched the first product called The Sea Truck. His next product, the Ballbarrow, was a modified version of a wheelbarrow using a ball to replace the wheel. Dyson remained with the idea of a ball which his brother thought of, inventing the Trolleyball, a trolley that launched boats. He then designed the Wheelboat which could travel at speeds of 64 km/hour on both land and water (www.dyson.co.uk).
He continued on developing his idea of using cyclonic separation to create a vacuum cleaner with his Ballbarrow concept that would not lose suction as it picked up dirt. Moreover, Dyson launched the ‘G-Force’ cleaner in 1983 even though there was no manufacturer or distributor would launch his product in the UK as it would disturb the valuable market for replacement cleaner-bags, so Dyson launched it in Japan through catalogue sales (www.forbes.com) and won the 1991 International Design Fair prize. He also obtained his first U.S. patent on the idea in 1986 (U.S. Patent 4,593,429).
After failing to sell his invention to the major manufacturers, Dyson set up his own manufacturing company. In June 1993 he opened his research centre and factory in England. In early 2005 it was reported that Dyson cleaners had become the market leaders in the United States by value (though not by number of units sold) and eventually became the fastest selling vacuum cleaner ever to be made in the United Kingdom.
Following his success the other major manufacturers began to market their own cyclonic vacuum cleaners. His manufacturing plant moved from England to Malaysia, for economic reasons and because of difficulty acquiring land for expansion, leaving 800 workers redundant. The company’s headquarters and research facilities remain in Malmesbury, UK.
Dyson set up the Foundation in 2002 to support design and engineering education. The James Dyson foundation aims to inspire young people to study engineering and become engineers. To solve the 21st Century challenges. It encourages people to think differently and to make mistakes. The foundation supports medical and scientific research by partnership with different charities; it specially supports schools in Wiltshire. It achieves this by funding different resources such as the ‘Education box’ where students are to take a part the Dyson DC22 Telescope is taken apart and examined. Another way the foundation inspires young minds is the James Dyson Awards. The James Dyson Award is an international design award that “celebrates, encourages and inspires the next generation of design engineers” (www.jamesdysonaward.org). It is organized and run by the James Dyson Foundation charitable trust, and is open to graduates (or recent graduates) in the fields of product design, industrial design and engineering.
Research, Design and Development is at the core of Dyson. One third of people at Dyson are engineers and scientists. Their expertise in fluid, mechanical, electrical, EMC, thermal, chemical, acoustic and software engineering allows them to design new products as well as challenge and improve existing technologies. Dyson has over 1300 patents and patent applications for over 300 different inventions (March 2010). Dyson’s RDD investment has quadrupled over the last 5 years with plans to double engineers in the future.
In October 2006 Dyson launched the Dyson Airblade, a fast hand dryer. The Dyson Digital Motor produces an air stream flowing at 400 mph (640 km/hour). This unheated air is channeled through a 0.3 millimeter gap. A sheet of air acts like an invisible windscreen wiper to wipe moisture from hands. It is now commonly seen in many public washrooms throughout the UK, Ireland and Canada.
Dyson has recently turned its innovative scope towards ultra efficient hand dryers and now desk fans (without external blades which is named ‘Air Multiplier’) to promote and to sell them to 49 countries all around the world and become market leader in high-tech innovative products such as in the UK, US, Canada, Australia, New Zealand, and Europe these days. After all, Dyson has also taken operating profits of £190million for 2009 with sales climbing to 23% due to strong demand from overseas with incremental sales growth following the recent launch of its bladeless desk fan: Air Multiplier and new handheld vacuums (a robotic version). Dyson is now trying to penetrate another potential markets with an abundant consumers in Asia like China, India, Japan, and other countries.
The recent sales growth and development of Dyson’s products, particularly Air Multiplier, seems to shape a significantly incremental and profitable market shares. Besides, Dyson attempts to carefully penetrate Asian markets which have a specific demand not like in Western countries tend to be homogenous. In other words, Dyson’s are in the product growth extent and aiming to the next crucial steps of technology adoption (Crossing the Chasm) in order to successfully penetrate into the mainstream market and become a leading firm in high-tech products and services.
Vision, Mission, and Objectives
Starting from his individual perspective where his company was well-influenced by his personal notions, there are directives that bring Dyson company path to exist and grow within the market competition as following criteria:
Dyson realized that problems were inevitable and people can invariably get irritated with things that are cumbersome to use in life. Dyson’s frustration with the vacuum cleaner he used in his house gave him the inspiration to invent the world’s first ever cyclonic vacuum cleaner.
Dyson came in for a lot of praise for the way he brought innovation and improvement to already existing products. Through his innovative notions, ideas, thoughts, some analysts considered his product one of the marvels of engineering.
A Clever Marketer
Despite the products market such as vacuum cleaner being flooded with several well-known brands, Dyson still saw an opportunity niche to launch his unique products in the complacency of the existing players in the market, where others did not.
Unlike the stereotypical organizations, Dyson had a flat organizational structure. He is using direct communication and avoiding communicating with others through e-mail or on the telephone which he believed will be more effective and efficient in directing and delivering his innovative ideas.
Brand and Retails
Electric fans had not changed since they were invented in 1882. Different materials, new buttons and the addition of grills, but still the same problem – the blades chop the air before it hits you. That’s why they cause unpleasant buffeting. Take the blades out, and the buffeting stops. But how can a fan work without blades?
By using Air Multiplier technology idea, the smoothness of the resulting airflow was tested and proved using an optical technique called Laser Doppler Anemometry. Millions of tiny particles projected by the fan reflect thousands of readings a second, plotting air speed and direction.
Unlike any other desk fan the Dyson Air Multiplier works with unique bladeless design high energy efficiency and sports an ideal stylish profile. Dyson’s Air Multiplier technology draws in air and amplifies it 15 times to form a smooth uninterrupted stream to make a good and a comfortable cooling system. Furthermore, Dyson Air Multiplier fans work differently from conventional fans. They use Air Multiplier technology to draw in air and amplify it – from 15 to 18 times, depending on the model. With no blades or grille, they’re safe and easy to clean. And they produce an uninterrupted stream of smooth air, with no unpleasant buffeting.
Drawing air in at the bottom of the fan using an energy efficient brushless motor the Air Multiplier then expels it through a 1.3mm wide slot creating a cone of amplified invigorating air up to 119 gallons every second. With its iconic shape and advanced technology the Dyson Air Multiplier trumps the conventional fan on so many levels making it the safer healthier easier eco-friendlier and perhaps the most refreshing fan available:
Safety: With its bladeless design Dyson present a harmless desktop cooling device allowing anybody to put the hands objects and even the heads through the circular hole safely just because it is safe!
Health: It attracts less dust than a conventional fan is easier to clean and stands as a strong benefactor to creating a healthier living and working environment.
Features: Rather than having a finite number of strength settings as a conventional fan does the Air Multiplier is fully controllable using a dimmer switch and can be set to oscillate smoothly from side to side. It’s also possible to tilt the fan to the appropriate angle.
Energy-Efficiency: Whilst powered by electricity the Dyson Air Multiplier is designed in such a way as to naturally draw in extra air from behind and around the machine through processes known as inducement and entrainment optimizing its cooling efficiency.
Strategic type of Dyson’s Fan in Korean Market
There are four types of Strategy that Dyson might take in the Korean market, and those are Product Leader, Fast Follower, Customer Intimate, and Operationally Excellent.
Regarding to the Korean market, it is obvious that Dyson’s new product, The fan, is a really innovative product ever made before. That’s the reason why the innovative firm, Dyson should take Product Leader strategy in the Korean Market.
Dyson had its own intellectual property under the Patent Cooperation Treaty(TCT) on 12 March 2009, and this is a crucial advantage to take Product Leader strategy in the Korean market. This intellectual property will be activated as a barrier maintaining profitability in the competitive environment, and make this new type of product innovative.
Based on the intellectual property, Dyson needs to make a new type of market differentiating conventional fan market. They should concentrate on Public Relations to make profit even though fan market is so mature.
Below are the characteristics of Product Leader strategy that Dyson follows.
Forecasting of Market Potential of Dyson’s Fan
The concept of market potential refers to the maximum amount can be derived from sales volume of any given product or service in a given existing market before the product or service eventually reaches the phase of market saturation. To market the product of service and to know the level of market potential which a new/existing seller can penetrate and the portion of market share can be achieved can originate from a proper forecasting.
An accurate market forecasting can give an appropriate value to marketing professionals trying to promote and market a new product or service, particularly in a high-tech market; where there is usually no historical data can be obtained and can face the unpredictable prospect for demand and opportunity due to forecasting future demand of high-tech product and service is really tough for many reasons. Surveys to customers, conjoint analysis time series are a few of the many techniques used by new high-tech product marketing: Dyson, to forecast the market potential for a new consumer product. Therefore, this analysis tries to assess what kind of forecasting techniques are appropriately used for and to find an appropriately predicted solution can fit the questions appear in forecasting the market potential of Dyson’s product: Air Multiplier Fan in another potential markets in the next years.
Forecasting the potential of a high-tech product market is very important for Dyson who is planning to enter another potential markets. This is an important process where it is able to estimate the market appeal can be offered for selling its products or services in order to avoid irrecoverable disadvantages through carefully analyzing specific factors in those markets such as customers’ culture, manner, preferences, and their willingness to purchase the products and so forth.
Regarding to data customer and market specific factors can be derived through primary and secondary sources which classified into quantitative and qualitative forecasting methods (Figure 1.2). One of many related forecasting analysis software tools can be utilized and have emerged for forecasting is using Conjoint Analysis for predicting incremental innovative products’ market share (Figure 1.1) with which it doesn’t have a proper and prior sales history, especially in new global markets where there are many domestic firms who produce simple and good fans. In order to result a better forecasting, certain criteria in terms of accuracy, durability, flexibility, availability of statistical indexes, demand patterns, should be fulfilled.
FIGURE 1.1 Aligning Market Research and Aligning Forecasting with Type of Innovation (“Marketing of High-Technology Products and Innovations”, 2009).
Segmentation, Targeting and Positioning of Dyson’s Fan
When some products are launched, Segmentations, Targeting and Positioning are the most important factors gaining profit. These factors should be analyzed very differently compared to other global market especially European, or American markets. Generally the Korean market has its own particular pattern and shape based on its people.
Before discussing Segmentation, Targeting, and Positioning, we will describe characteristics of the product first. This shows characteristics of the product.
The blades on conventional fans cause unpleasant buffeting because they chop the air. Air Multiplier technology gives an uninterrupted stream of air that doesn’t distract
With its simple loop the Dyson Air Multiplier fan is quickly wiped clean with a cloth. Fans with blades are nigh on impossible to clean, with dust and dirt building up inside the cage. The same dust and dirt is then billowed into your face when the fan is switched on.
Unlike top-heavy conventional fans, the Dyson Air Multiplier fan has an energy-efficient motor is at its base, meaning it has a low centre of gravity and doesn’t topple over.
You have to use two hands to position a fan with blades. The Dyson Air Multiplier fan adjusts easily with a touch of the hand. It pivots on its low centre of gravity and stays put.
Fans with blades have limited settings. The Dyson Air Multiplierâ„¢ fan uses an energy-efficient brushless motor, which means air speed can be precisely adjusted up or down. The airflow control switch control allows people to pick their perfect airflow.
To oscillate a conventional fan you have to hold it steady, pull the toggle and watch it judder. Oscillating the Dyson Air Multiplier fan through 90° is simple.
The Dyson Air Multiplier fan is constructed from tough Acrylontride butadiene styrene – ABS (C8H8 C4H6 C3H3N)n). ABS is a tough thermoplastic used to make light, rigid and moulded products. It has shock absorbing properties and is used to make car bumpers, crash helmets and modern golf club heads. It’s used in Dyson vacuum cleaners and Dyson Airbladeâ„¢ hand dryers too.
These characteristics are general specifications of other global market. We will add more function to enter the Korean market very effectively. That is decorating function shown by household props. LED lights will be equipped to illuminate itself automatically sensing light. This function is promoting the sensibility of consumer, and combines cross sectional function between industries.
Then, Let’s talk about the main issues of product, segmentation, targeting, and positioning.
The market segmentation of fan products is divided by two categories. Those are low price product and premium product. Dyson fan should be segmented in premium product. Because the price of Dyson fan is 300 dollars in the US market. This tells us that Dyson fan is the most expensive fan in the Korean market, and this is expensive more than six times compared to other Korean fan.
At this point of view, the main target of this fan has two groups. One is the category of the family who has kids. The other is the item for shop, such as restaurants, bars, and etc. The target age of family group is from late of 30 to late of 40 caring about the safety of their babies very much. They want to raise their kids in the safe place even though it costs bunch of money. So the commercials should focus on the babies and safety. The other group is the shop masters who really care about beauty functioning as ornaments. In this perspective the design concept of the product is more important than its function.
Next, let’s move on to product positioning. Dyson fan should make another terminology instead of fan. When we try to purchase fan, we won’t pay more than 300,000 won. So we should build up the new brand and terminology meaning new concept of product. The brand positioning should be a premium brand, and high quality with high price.
Dyson is the world’s leading company in vacuum cleaner industry with its strength in technology and innovation. James Dyson, the creator of Dyson Company, introduced innovative vacuum cleaner which eliminated the need for both bag and filter. However, as big vacuum cleaner manufactures refused to license for his technology, Dyson decided to develop his own manufacturing company. Luckily Dyson was able to sign a deal with Japanese company, which funded him in research and development. Dyson was able to continue developing his innovation of new models and ideas in this matured vacuum cleaner industry and got steady increase of market share worldwide. In recent years, Dyson is expanding into washing machine industry with new technology called “contrarotator” and with catchy design. Although the first washing machine model was not a great success, Dyson continues to invest greatly in research in development to differentiate themselves from their competitors.
Vacuum cleaner market is already matured and the demand is derived mainly from replacement purchases at the end of the product cycle of 8 years. In unsaturated markets, demands for vacuum cleaners are very low due to national preferences for floor tiles rather than carpets. Differentiation is the key in saturated markets, but Dyson’s unique bagless technology is imitated by other manufacturers with lower price. Therefore, Dyson need to come up with new ways to differentiate themselves.
Dyson could expand their shares in countries using floor tiles by continuing word of mouth marketing strategy. Currently, China and India are not high in demand for vacuum cleaners, but with their economies growing 10% per year, more consumers will become affordable and demand soon will grow. Although most Japanese houses are made from tiles, Dyson shows strong sales in Japan compared its competitors. This is because despite its high price, consumers who have used Dyson’s vacuum
How to cross the chasm
Starting with its bagless vacuum cleaner technology in the 90’s,
Crossing the Chasm is closely related to the concept of lifecycle that consists of five main phases: innovators, early adopters, early majority, late majority and laggards (Moore, 1991). Moreover, the firms that are initially going to market their products or services should focus on one segment group of customers at a certain time, using each of them as a base for marketing to the next segment group. Thus, the most difficult issue here is making the transition step between visionaries (early adopters) and pragmatists (early majority) where the chasm is laid down. If a firm can successfully create a bandwagon effect in which enough momentum develops necessary influences onto types of communication; mass media and interpersonal communications leading to the target audience which can derive a greater impact on earlier adopters, the product can successfully penetrate the designated market and eventually become a definitive standard then. However, Moore’s theories are inapplicable for adoptions of continuous innovations and only disruptive or discontinuous innovations instead which are still better explained by the original technology adoption lifecycle.
Figure 1.2 Dyson’s Fan Adoption in South Korea (“Crossing the Chasm”, by Geoffrey Moore, 1991).
The secret in order to crossing the chasm gap of marketing high-tech products in Asia countries i.e. South Korea (Dyson’s products seem to slowly enter and penetrate Asian Market, yet they have the predominance and well-established features as depicted through Figure 1.2) is how to properly understand one key difference between the new player/marketer and existing players who market and sell the conventionally much cheaper electric fans (with blades). Moreover, the big electronic producers such as China, Japan, and South Korea are continuously developing and improving their products to meet market requirements. Thus, the important strategy is to build an acceptably complete and a more customized product that can meet and satisfy consumers’ needs instead of only for a particular market segment. When enough partial segments have been delivered on each board with their whole product respectively, the company will then be in the right position to gradually leave the chasm and be ready to maintain the product growth for the mainstream.
Some additional considerations for high-tech marketing strategies to Dyson’s Air Multiplier:
Avoid an excess optimistic consideration in advantages of Dyson’s fan as a new high-tech product which can direct to an imprecisely previous market forecasts. Nevertheless, keep on attempting to elaborate the potential purchasers who afford Dyson’s fan adoption.
Consider the entrenched product position and loyalty in consumers’ mindsets by setting up the right marketing strategies and more customized products/services within either cost leadership or differentiation in order to successfully maintain and eventually enhance product market share in the future.
The need for Dyson’s marketers to understand in marketing strategy within early market level (early adopters) and main stream market level (early majority). In the early market phase, visionary consumers need more customized products with subsequent technical support, while consumers are more pragmatic to have whole-product (product integration) and end-to-end solution in the mainstream extent.
Branding strategy for Dyson’s Fan in Korean Market
Before we consider the Branding strategy for Dyson’s Fan, let’s think “What is brand?”. Brand is a term, name, sign, symbol, design or a combination of them, used to identify and differentiate the goods and services of one seller from other. These days, when we buy and drink coke of coca-cola, someone says “we drink the brand.” Actually, other coke might be sweater, better tasty and so on, but we do not buy and drink others. We only drink coke of coca-cola. This is the royalty of customers. Because of brand, we believe the coke has good quality, tasty and so on. Therefore, the Branding strategy is really important to believe and realize the fan is good product.
In that case, what kinds of branding strategy do we use? The most important characteristic is bladeless. In general, a fan needs blades to make wind and turn them. But the fan uses the new theories to make wind, as I mentioned. Therefore we think Ingredient Branding is the best branding strategy. It is possible to use the similar Ingredient or characteristics branding.
Dyson made innovation from Bladeless fan, because nobody can think bladeless fan to make wind. As we already know the advertisement of the fan from You Tube, we emphasize this characteristic. In the advertisement, the fans stand in line and the balloon pass through them.
It looks no wind, but the balloon passes through all of the fans. It is the really good ad. to introduce the characteristics of the fan. Also we need to emphasize safety for kid. Because the fan does not have the blade, so the parents feel relieved when they turn on the fan.
Therefore we advertise the fan against parents with kid and emphasize safety for kids. And then, they realize the fan has good quality, safety, design and so on.
Types of innovation Dyson is doing (define their innovation strategy: Radical, Incremental, Vertical, Horizontal, Disruptive, Open, etc)
Many companies including Dyson, Inc. attempt to create something with more value-added or even more innovative products/services through focusing on the kinds of improvement that maintain a product, brand or company name in the existing market. They tend to be linearly come across over product extensions, new packaging, new improved materials and contents, etc. In fact, many expertises concluded that most of innovations claimed by the consumer products industry were nothing more than packaging improvements. Nevertheless, it is such intermezzo that enhances most of the competition experienced in any industry where will combine all types of innovation.
The Dyson’s air multiplier bladeless fan is an entrant to the global fan market by coming up with an innovative shapes and types of a standard table-top fan using the extra air generated by the Airblade’s inner mechanisms; not like the ordinary electric fans. The mechanisms will enable the fan to blow air stream without interruption through the slot onto a slightly angled tier of plastic. The fan also creates a suction-like effect that increases the airflow and gives a smooth waft of air, rather than choppy bits of wind. Moreover, because the fan is a bladeless air, it is easier to clean and safer (Dyson’s Bladeless Fan Air Multiplier and Bladeless Fan).
Although Dyson provides different types and uses different strategies in applying their product types to the global markets, the Dyson’s air multiplier is seemingly applying Incremental Innovation strategy  where it focuses on evolving the product itself and improving it from either its previous experience or path dependence.
Current situation (problem, profit, competitive position, etc)
After about three years to develop innovative Air Multiplier, Dyson has recently sold desk fans to 49 countries all around the world and become market leader in high-tech innovative products such as in the UK, US, Canada, Australia, New Zealand, and Europe these days through their special global branches. After all, Dyson has also taken operating profits of £190million for 2009 with sales climbing to 23% due to strong demand from overseas with incremental sales growth following the recent launch of its bladeless desk fan: Air Multiplier and new handheld vacuums (a robotic version). Dyson is now trying to penetrate another potential markets with an abundant consumers in Asia like China, India, South East Asia countries, and even South Korea.
The recent sales growth and development of Dyson’s products, particularly Air Multiplier, apparently seems to shape a significantly incremental and profitable market shares with an expanded range of merit. However, though Dyson obviously derive a profitably significant result in US, European countries, Australia, and even Japan, they attempt to carefully penetrate Asian markets which have a specific demand, not like in previously penetrated countries, tend to be homogenous. In other words, Dyson’s are in the product growth extent and aiming to the next crucial steps of technology adoption in order to successfully penetrate into the mainstream market and become a leading firm in high-tech products and services.
The Dyson’s air multiplier bladeless fan is still leading in sales without significant competitors in term of innovative products. Nonetheless, if Dyson fail to accelerate what they have achieved, competitors might be taking prudent risks to take over the position and Dyson can get left far behind. Therefore, Dyson have to learn how to continuously build and maintain a culture of innovation to succeed.
How to overcome with what kinds of innovation and marketing strategy?
In order to secure market Growth, what can be the good innovation or marketing innovation?
(Any idea (Product concept) to develop with open innovation?)
Before we mention innovation strategies, we need to think of characteristics of product type and technology itself. Actually, Dyson’s technology in their product is not cutting-edge but a normal technology in the vacuum cleaner product. They just extended their motor technology into the fan market, and regarded this product very innovative.
In this perspective, Dyson implements two types of innovations in the fan market.
First is horizontal innovation. As I mentioned earlier, Dyson expand their business using their existing technology to gain profit. In the vacuum cleaner market, this motor technology is very prevalent and also, they possess intellectual property functioning as a entrance barrier in case other fan producing firm is trying to imitate their product.
Second is convergence strategy. Dyson converged the conventional fan market with household prop market related to furniture market. Fan can be used as a household props decorating housing with LED lights. This can be a medium maximizing product value with regard to the profit. With convergence strategy customer can be more satisfied with the product compared to the fan itself.
Dyson can use these two types of strategies to enter the Korean market efficiently functioning as successful factors.
DYSON FANS EVOLVE FROM THE DESK TO THE FLOOR
James Dyson unveils two new Air Multiplierâ„¢ machines
As the majority of the U.S. heads into the summer months, Dyson has the answer for sweltering temperatures with the latest Dyson Air Multiplierâ„¢ fans: the AM02 Tower and the AM03 Pedestal. Engineered for larger spaces, the floor standing machines produce a far greater airflow than the previous iteration – AM03 Pedestal generates nearly 50% more airflow at maximum than the AM01 Desk fan.
Dyson first introduced Air Multiplierâ„¢ technology in October 2009 offering the first real innovation in more than 125 years. Dyson’s patented technology replaces fast spinning blades and awkward grilles with loop amplifiers. The machines draw air in at the base through a mixed flow impellor – a combination of the technologies used in turbochargers and jet engines.
Unlike conventional fans with limited settings, Dyson Air Multiplierâ„¢ fans can be infinitely adjusted up or down. The new tower and pedestal fans offer precise airflow and oscillation control and can be adjusted remotely. Air Multiplierâ„¢ technology is easier to clean and a safer way to keep cool this summer.
Both new fans come with a remote control, which is magnetized to conveniently locate itself on the machine.
“The new machines are engineered to circulate smooth un-buffeted air in larger rooms. They draw in and multiply nearly 50% more air than our desk fan,” says James Dyson.
Dyson AM02 Tower fan specifications:
AM02 Tower is slender and running track shaped to take up limited floor space. Drawing in nearly nine gallons of air per second, the machine amplifies the air 16 times creating a smooth and cooling airflow.
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