Marketing : The Dyson Airwrap

1. A) The Dyson Airwrap is classified as a specialty product due to its unique features and functions, such as offering multiple styling options without extreme heat, leading to high demand and waitlists. Specialty products like the Dyson Airwrap are characterized by their distinctive characteristics, which justify a premium pricing strategy, selective distribution to maintain exclusivity, and heavy promotion to emphasize their unique benefits and technological advancements.

B) Price: premium pricing strategy due to its innovative features

     Placement: selective distribution to maintain exclusivity

     Promotion: heavy promotion to highlight its unique benefits and technological advancements

1. A) The price strategy used to launch the Dyson Airwrap was a premium pricing strategy[pic 1]

B) The choice of a premium pricing strategy for the Dyson Airwrap was likely influenced by factors such as the product's innovative features, unique styling functions without extreme heat, high demand leading to waitlists, and the brand's reputation for quality and cutting-edge technology

1. A) The market type corresponding to the Dyson Airwrap is monopolistic competition.

B) The Dyson Airwrap operates in a monopolistic competition market due to its differentiated features like offering multiple styling functions without extreme heat, resulting in high demand and waitlists. In this market type, firms have some pricing power based on product differentiation, allowing Dyson to implement a premium pricing strategy for the Airwrap. The unique features of the Airwrap create a competitive edge, influencing pricing decisions to reflect the product's innovative technology and benefits, which align with consumer preferences in a monopolistic competition setting

1. A) For the target group of trend-conscious individuals 18-35, passionate about beauty, and early adopters of new technology, a suitable promotion mix tool would be social media influencers due to their influence on this demographic and their ability to showcase the Airwrap as a cutting-edge technological tool. As for the medium vehicle, utilizing Instagram as a concrete channel would be effective in reaching this audience, as it is a popular platform among young trendsetters and beauty enthusiasts, helping to generate awareness for the product name AirWrap and position it as a cutting-edge tool

B) For tech-savvy consumers aged 18-35 who appreciate quality home appliances and technology, are already aware of Dyson, and potentially own Dyson products, the recommended promotion mix tool is personalized email marketing to engage this target group effectively. As for the medium vehicle, leveraging targeted email campaigns directly to existing Dyson customers would be ideal to boost e-commerce and increase online sales of the Airwrap on Dyson's e-commerce website

1. To promote the launch of the new Dyson Airwrap, Dyson could implement two consumer sales promotions. Firstly, they could offer a limited-time bundle deal where customers purchasing the Airwrap receive a free accessory kit with additional styling attachments. This promotion would incentivize purchases, add value to the product, and appeal to consumers looking for a comprehensive styling solution. Secondly, Dyson could run a social media contest encouraging users to share their Airwrap styling results for a chance to win a personalized styling session with a professional stylist. This promotion would engage customers, create buzz around the product, and showcase its versatility and innovative features.

1. Harley-Davidson used the new brand development strategy for their e-bikes under the brand name Serial1. Despite subtly featuring Harley-Davidson branding, Serial1 was positioned as a new brand in the market, separate from the parent company, to attract customers without explicitly stating the connection to Harley-Davidson. This strategy allowed Serial1 to establish its own identity and appeal to a broader audience beyond traditional Harley-Davidson motorcycle enthusiasts

1. The most relevant external considerations affecting the price decisions for the Rush City bike by Serial1 included factors like the integration of premium components like Enviolo's CVT and Brose's motor, which highlighted the commitment to cutting-edge performance. Additionally, the market positioning of the Rush City as a desirable e-bike with exceptional handling and stability influenced the pricing strategy to reflect the bike's quality and advanced features.

1. A) Serial1 should initiate a price reduction if there is increased competition in the market leading to pricing pressure, or if there are advancements in technology that allow for cost savings in production without compromising quality. This strategic move could help Serial1 maintain competitiveness, attract more price-sensitive customers, and stimulate sales volume, especially if demand is price elastic.

B) Serial1 should implement a price increase if there are significant enhancements or upgrades made to the Rush City bike, such as the integration of cutting-edge technology or premium components that elevate its performance and value proposition. By justifying the price increase with tangible improvements that enhance the overall biking experience, Serial1 can position the Rush City as a top-tier e-bike in the market, appealing to customers seeking the latest innovations and willing to pay a premium for superior quality and features.

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