Topics: Marketing, International trade, Vacuum cleaner Pages: 39 (4018 words) Published: December 5, 2013

Dyson Vacuum Cleaner:
Shifting from domestic to international marketing with the famous bagless vacuum cleaner International Marketing – Assignment 2
Candidate: Emad AbouElgheit
ISM - International School of Management
Doctor of Philosophy (Ph.D.)

Presented to: Professor Peter Horn
2 February 2012
Word Count: 4,326




After dominating the local UK market and successfully developing a new market in the US, Dyson, the ambitious vacuum cleaners manufacturer still competes in the mature global market of vacuum cleaners. Adopting a differentiation strategy since its inception, the company aims to take its brand to the next level and to expand into new grounds. This comes in a critical time after a declining market share in its high end vacuum cleaners segment, and withdrawing its innovative and very expensive washing machine from markets. The paper attempts to select the most potential global markets for Dyson to put more marketing investments. The paper suggests those markets to be mostly Scandinavian. The paper also aims to shed the light on the mass distribution strategy adopted in the US market by Dyson. Finally the paper studies the opportunity for Dyson to repeat the huge success of its vacuum cleaner to enter new product category of washing machines.

Keywords: Vacuum Cleaners, Dyson, International Marketing, Upright Vacuum, Household Vacuums, Home Appliances, Consumer Goods, Branding, New Market Development, Pricing Strategies, Washing Machines, Advertising, Distribution



Dyson Vacuum Cleaner
Shifting from domestic to international marketing with the famous bagless vacuum cleaner International Marketing – Assignment 2
The global vacuum cleaners market have had a steady growth rate of two percent from the year 2000 to 2005,1 and reached a total value of more than $13 billion in the year 2009.2 The majority of sales come from Western Europe and North America where Dyson competed successfully in the high end upright vacuum cleaners segment.3 However, Asia Pacific markets have been also growing rapidly4 where cities such as Shanghai, Beijing and Tokyo became among the world’s top 10 cities in vacuum cleaners sales in the year 2009.5 Most attractive target export markets include; the US, Hong Kong, France, UK, and Germany. This doesn’t seem strange when looking at global consumption data. The European market holds more than 44 percent of total world consumption followed by North America (35 percent). Asia, Oceana, Latin America, the Middle East and Africa emerging markets promise strong growth rate in consumption for domestic vacuum cleaners and floor polishers.6 Except for the UK, Dyson has a low market share in most of the developed countries.7 The top manufacturing countries of vacuum cleaners led by China also include; Germany, Mexico, South Korea, United States, and Malaysia. Dyson’s home land shared only 1.46 percent (ranked 11) of the total world’s domestic vacuum cleaners and floor polishers exports in the year 2006.8 Although Chinese consumers are considered to be new at using vacuum cleaners,9 the country holds more than 40 percent of the total world exports. This suggests a strong competition by new cheaper brands made by China, Mexico and Malaysia introduced to both developed and developing markets.



In addition to the bagless vacuums trend that Dyson invented and many competitors started to follow, vacuum cleaners consumer shows an increasing demand for lower-priced products. An environmental concern of using recycled plastic and lower energy consumption is also becoming a growing trend. Some competitors such as Groupe SEB added a noise reduction technology and lighter weights in their products.10 Another interesting innovation trend is the introduction of the first robotic vacuum...
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