The Dyson brand is well known around the world for innovation and design. We will be looking at the latest product that Dyson has brought out and how and why the Dyson brand is such a success. But first we need to take a look at the concept of branding.
What is branding?
The reason for creating a brand is because it is believed that brands hold a certain level of value that goes beyond the product or service itself. A brand isn’t necessary just a name. A brand can be a colour, a shape or even a logo of a particular product that makes us instantly think of that brand. For instance the certain shade of purple that Cadbury uses, makes us a consumer think of Cadbury instantly as does the glass and a half logo that they use on their dairy milk packaging.
The are so many benefits when it comes to branding, branding reduces risk in the customers eyes, brands become familiar and comforting to consumers so they are more likely to remain loyal, it allows companies to charge a premium price for its products. Branding is also useful when it comes to other marketing strategies such as segmentation, targeting and positioning.
What types of branding strategies are there?
There are 4 types of branding strategies:
Umbrella brands – where a company attaches their name to all of their products and services
House of brands – where a company brands all of its products or services individually
Brand extensions – where a successful brand introduces new products to encourage customers to by it. For example Dove soap extending its brand into shampoo, deodorant and body washes.
Co branding – is when companies collaborate to create a product or service
Each of these strategies has advantages and disadvantages. Our focus will be the umbrella branding strategy.
What are the advantages and disadvantages of umbrella branding?
Umbrella branding has its advantages and disadvantages. The advantages of umbrella branding are that once a brand is developed and established well in the marketplace launching new products or services using that particular name is much easier than if your were to use the house of brands approach. The disadvantages of umbrella branding is that if one branch of the brand fails or isn’t as successful as the others it can damage the entire brand.
The Dyson hair dryer
The real life example of creating a strong brand and using umbrella branding is Dyson. Dyson is known for its innovative product design. Dyson’s core strategy is to invent and improve. Dyson sees flaws in day-to-day objects and makes them better. Starting with the cyclonic vacuum cleaner to the blade less fan and building up to its latest product … the Dyson hair dryer.
We all know the reputation of the Dyson brand well, whether we have one of their vacuum cleaners or if we’ve used their all powerful air blade hand dryers. We know that they are excellent quality and as consumers we are willing to pay a premium price for their product, as we know it is far superior to others in that category.
The Dyson hair dryer is priced at $700, which is definitely a premium price in the hair dryer market! Dyson however are able to charge a premium price for this product because they have reinvented the hair dryer, given it a sleek and innovative design and explained the science behind it. When watching the introduction to the Dyson hair dryer it points out the flaws in the everyday hairdryer and how Dyson has improved them. The Dyson hair dryer comes across as luxurious item and needed especially once all of the flaws of your standard hair dryer are pointed out.
Dyson has definitely been successful in creating a strong brand image and with every product it has brought out. They have put years and years of research into creating and reinventing products that they believe are flawed. Their marketing strategy of putting the Dyson name on to all of their products rather than creating new names or brands has definitely paid off; Dyson is undoubtedly a household name and prides its self with being associated with innovation and quality.
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Dyson, 2016, About James Dyson, Dyson 29th August 2016, <https://www.dyson.com.au/community/about-james-dyson.aspx>
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Author: Eleanor Wilson #210669831