Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
RETHINKING THE PRODUCT PORTFOLIO
FIGHT DIRTY
Eventually, in 1984, Royal released a version of the handheld vacuum, coined the Dirt Devil. This innovative product has developed into Royal's signature product and eventually becoming the top-selling handheld vacuum cleaner in the U.S. Because of this success the product was spun off into a separate company under the Dirt Devil brand name.
1905 Released industry’s first “hand held vacuum”
1907 Released “electric vaccum”
1930 Released “canister vacuum”
1970
Released “wet dry vacuum”
1984 Released “hand held vacuum” known as “Dirt Devil” Developed the brand to cover a number of vacuum cleaner products
TTI, Floor Care North America is the current parent company to Dirt Devil. TTI supplies home improvement and construction tools. Their subsidiary companies consists strong consumer brands as well as commitment to innovation and quality. The portfolio that TTI offers includes power equipment products, floor care appliances, laser and electronic products floor care products.
Includes the hand vacuums, carpet shampooers, the upright vacuum cleaner, canister vacuums and the stick vacuums. Figure 1. Corporate Structure
Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
The Dirt Devil as an idea can be dated back to 1905. One of the world's oldest vacuum cleaner manufacturing companies, Royal vacuums started making the first handheld vacuum, the Royal Prince.
COMPANY & MARKET CONTEXT
Company Background
FIGHT DIRTY 1
Created a top of the line set of products that are reasonably priced and are of value to any home
Strengths
• Remains a product leader within the floor care industry • Exists in a strong family of floor care companies • Explores various markets with varying needs
Operational Excellence
Customer Intimacy
Figure 2. Industry Focus
Weaknesses
• Maintains many models which have marginal differences • Releases product recalls due to faulty engineering • Manufactures products overseas New Products
Dirt Devil’s Strategy
KRUZ • Provides effortless cleaning of dry hard floor surfaces • Possess a sleek and modern look, designed by Karim Rashid KURV • Allows for daily upkeep of crumbs, dust and spills that happen frequently • Has a simple, elegant shape designed by Karim Rashid Purpose for Pets Portable Extractor • Handles unpleasant pet odors or stains in your carpet or upholstery • Integrates blacklight LEDs, illuminates hidden pet stains so you can find the source • Includes two 8 oz. Dirt Devil solutions
KRUZ
KURV
Pets
Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
• Upright Vacuums • Hand Vacuums • Broom Vac & Stick Vacuums • Canister Vacuums • Carpet Cleaners
Product Leadership
COMPANY & MARKET CONTEXT
Core Products
i
New Products Figure 3. Current Strategy
i
• Contains Advanced Cyclonic Technology that provides suction at the nozzle • Has features that take the hassle out of cleanin 2
FIGHT DIRTY
Figure 4. Customer Segmentation
Busy Caretaker
Male / Female 20 - 30 Urban No - Middle Income
Male 20 - 40 Urban / Suburban Lower - Middle Income
Male / Female, 30 - 50 Suburban Middle - High Income
Possesses style Focuses on brands Desires upward mobility
Values functionality Invests in quality items Needs transportable device
Desires cross-functionality Focuses on busy schedule Trusts specific brands
Cleans studio apt. Shops at boutiques Uses stylish devices
Cleans commercial offices Shops at industry stores Uses quality devices
Cleans house with kids/pets Shops at department stores Uses efficient devices
Demographic
Psychographic
Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
Effective Experts
CUSTOMER SEGMENTATION
Simple Styler
Behavioral
Insights Dirt Devil is pursuing a variety of segments with its primary focus on younger markets. The Rashid Karim line appears to have been launched to satisfy the “Simple Styler” segment. By aligning with a well known designer, Dirt Devil has created this line to appeal to those that specifically want simplicity and beauty. “Effective Expert” and “Busy Caretaker” segments are familiar with the Dirt Devil identity, yet they purchase vacuums based on convenience, features or quality. Realizing the marketing efforts already put forth to the “Simple Styler,” Dirt Devil should redirect energy towards developing a new and unique set of features to the “Effective Expert” segment.
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FIGHT DIRTY
Reaction Fresh $153.99 M110006
Vision $115.00 M087600B
KONE $44.99 M0213
Reaction Soft $99.99 M110009
i $296.99 M130000
AccuCharge $65.99 M083424
KURV $55.00 M0216
KRUZ $109.99 M0313
Broom Vac $54.99 MBV2030
Breeze $85.00 M082581
Portable Scrubber $87.99 MSE3800
Featherlite $99.99 MCE6000
BRUM $76.99 M0414
Vision $131.99 M082660
Purpose for Pets $109.99 MSE3890
Easy Steamer $129.99 MCE7300
Easy Steamer $29.74 RSE2800
Easy Steamer $144.49 R110000
over
KWIK $32.99 BD10000
$100-150
Visione Glide $69.99 M086700
$100
Featherlite $54.99 M085570
Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
under
AccuCharge $54.99 M0924
PRODUCT PORTFOLIO
.
reconditioned units
carpet cleaners
canisters
stick & broom vacs
hand vacs
uprights
Figure 5. Product Segmentation
Platinum Shampooer $219.99 MCE7900
$150
Vision $153.99 M082700
Insights Dirt Devil has varying lines of vacuums within their portfolio. This coverage develops individual value propositions to each consumer, however at times it may cause consumer confusion. By offering multiple models with marginal differentiation, Dirt Devil risks alienating their consumers at the point of choosing. As displayed here, Dirt Devil categorizes their offerings as: Uprights, Hand Vacs, Stick & Broom, Canisters, Carpet Cleaners, and Reconditioned Units. The Energy Star certified and the Rashid Karim lines are receiving the most marketing efforts, however these lines only exist within the Hand Vac and Stick & Broom Vac categories only. Dirt Devil should look towards its neglected categories, such as reconditioned units.
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FIGHT DIRTY
Figure 6. Competitive Landscape
Electric tool that cleans by combines the acts of sweeping and vacuuming
Black & Decker Karcher K55
Magic Broom
Bissell 268
Euro-Pro Shar
ElectroluxEL
Swiffer Sweeper
Euro Pro
Koolatron
Aroma AVC
Convenient Features
Sonoclean
Category:
Lightweight Floor Care Device Electric tool that cleans surfaces and weighs less than 5lbs
iRobot 560
Bissell 3600A
Shark Mop
Monster EZ
Karcher K55
Koblenz
Earlex RayCop
Shark SV736 Electrolux EL
Reman. Bissell
Bissell 14007 Generic:
Floor Care Device Electric tool that cleans low, horizontal surfaces
Budget:
Surface Care Device
Guardian GGH200
Eureka 431F
Kalori SKV
Eureka 431BX
Dyson DC25
Dyson DC17
Highly Designed
Electric tool that cleans multi directional planes
Hello Kitty
PanasonicMC
Shopvac In-Out Bissell 1716B
Industrial Power Hoover
Dyson Root6
Eureka 71B
DewaltT DC515K
McCulloch MC-1275
SteamFast
Kalorik HVC
HydroMax
Insights Dirt Devil strives for excellence as a Product Leader, however there is a vast competitive vacuum landscape. Some of Dirt Devil’s direct competitors are Bissell, Dyson, Eureka, and Dewalt. Hoover is often thought as a competitor of Dirt Devil, but they are actually a sibling company. The other competitors portfolios are priced similarly, however these other manufacturers focus on feature sets and consumer activities. Dirt Devil is advance because they leverage their eye for style. Dirt Devil could look further at how style exist across varying age groups within their competition, such as the Barbie or Hello Kitty vacuums.
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Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
Hybrid Broom Vacuum
COMPETITION
Form:
FIGHT DIRTY
Figure 7. General Options
• Reconditioned vacuum services
• Small car care
• Non electric vacuum
• Concrete surface care
• Tile/grout surface care
• Organic material vacuum
• Stair specialty attachment
• Vehicle (boat, RV) vacuum
• Modular reconditioned professional
• Desk sweeper
• Vacuum mop 2 in 1
• Counter crumber
• Designer professional line of vacuums
• Deck indoor and outdoor
Penetrate
Local Markets
Surface Device
Floor Care Device
Innovate
Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
Global Markets
PORTFOLIO OPTIONS
Extend
Expand
Insights Dirt Devil currently has a strong portfolio. By allocating unrealized resources, and leveraging geographic capabilities Dirt Devil has a variety of options. Innovate Markets and Offerings: Consider their parent/sibling companies and Extend to New Markets: Create new floor care products for the respective geographies. Utilize these various regions and consumer behaviors to needs of a global market. Parent company resides in Hong Kong. design new game changing offerings. Access Asian market because it is within reach. Penetrate Current Markets: Conceptualize new floor care products for the local market to meet the needs of most loyal customers here in the US. Consider the professional home/office cleaner.
Expand Product Offerings: Develop core offerings into all surface cleaning devices for Dirt Devil’s US consumers. Use the organizations core capabilities in product development to offer various surface cleaning tools.
FIGHT DIRTY
Figure 8. Evaluative Table
Technical Financial Feasibility Reward
7
4
1
4
16
10
7
1
4
22
4
4
4
1
17
10
10
4
7
31
TOTAL
Reconditioned vacuum services
Extend reconditioned floor vacuum services to global markets
Non electric vacuum
Convert current floor vacuum technology to not use electricity for rural global markets
Tile/grout surface care
Perfect a floor vacuum to also clean tile and grout which is common in war temperature regions
Stair specialty attachment
Create attachments to assist local markets in cleaning home/office stairs
Modular reconditioned professional vacuums
Refocus current marketing for reconditioned units to the professional cleaner
7
4
1
4
16
Vacuum mop 2 in 1
Simplify busy caretakers activities by extending a vacuum into a mop as well
10
10
7
1
28
Designer professional line of vacuums
Recruit a well known spokesperson to represent a professional cleaning line
10
10
10
7
37
Vehicle (boat, RV) vacuum
Reduce the scale of current technology to create a compact surface cleaner for vehicles in the local market
7
10
7
7
31
Desk sweeper
Rescale current handheld vacuum to allow consumers to clean small surfaces
7
7
10
1
25
Counter crumber
Market vacuum technology to be sanitary enough to clean eating surfaces in the local segments
7
7
10
1
25
Deck indoor and outdoor
Fulfill the local consumers need to clean inside/outside with one device
7
7
4
10
28
Small car care
Create a solution for the global consumers need for compact devices meant for cleaning compact areas
7
10
7
7
31
Concrete surface care
Develop a device that thoroughly cleans materials that are regional to the area in the global market
4
4
4
1
17
Organic material vacuum
Fabricate for a global market a vacuum device that cleans up food and organic matter to be composted
7
7
1
1
16
Insights Understanding the options and concepts based on an evaluative set of criteria help to asses the most appropriate portfolio recommendations moving forward. The criteria consists of Strategic Fit, Market Appeal, Technical Feasibility, and Financial Reward. The concepts have been scored against this criteria. The possible scores are 1, 4, 7,10. This range of scores assists in creating a noticeable difference in the total score for each concept . The highest ranked concepts are Stair specialty attachment, Designer professional line of vacuums, Vehicle vacuums, and Small care vacuums. These concepts are then systematized into two portfolio recommendations.
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Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
Market Appeal
PORTFOLIO OPTIONS
Strategic Fit
FIGHT DIRTY
Stair specialty attachment
Create attachments to assist local markets in cleaning home/office stairs
Designer professional line of vacuums
Recruit a well known spokesperson to represent a professional cleaning line
Option 2: Expand Product Offerings & Innovate Markets
Amy Batchu :: Portfolio Planning :: Matthew Mayfield :: Institute of Design
Dirt Devil focuses its attention and resources towards simplified designed products, for residential use. Some efforts are directed towards the professional home/office cleaner. However, by focusing specifically on this segment Dirt Devil must fill the gap for designed devices for the professional cleaner. Consider pricing these products above $150 because of their industrial strength and professional quality. This option would require investment in Research and Development in creating various professional grade attachments for the core vacuum device. The first developed attachment will be for the stair surface which requires a unique tool for horizontal and vertical surfaces as well as tight angles. Eventually other attachment tools will be developed. These tools are for professional cleaners what, scalpels are for surgeons. Eventually these new attachments will be released with efforts from Dirt Devil’s Marketing team. These new tools will be linked to a household professional face or name. This portfolio option as a concept, recognizes the hard work and skill of the professional cleaner, making a more satisfied consumer and eventual increased sales of these appealing products.
PORTFOLIO RECCOMENDATIONS
Option 1: Penetrate Current Market
The Dirt Devil brand name is known for that little red handheld vacuum that they created once upon a time. Revitalizing that same R&D momentum as well as the consumer brand recognition, Dirt Devil can consider investing efforts in designing compact vacuum technology. By creating small devices for storage purposes or to clean into small space, Dirt Devil is able to serve an unmet need in the both the local market as well as the global market. The initial push will be done to create small scale vacuums for US consumers to always store in their boats, cars, and RVs. Eventually Dirt Devil will take advantage of it’s overseas head quarters as well as distribution and role this technology out to Asian and European markets. Option 2 as a concept will then better meet the need for compact vacuum devices.
Vehicle (boat, RV) vacuum
Reduce the scale of current technology to create a compact surface cleaner for vehicles in the local market
Small car care
Create a solution for the global consumers need for compact devices meant for cleaning compact areas FIGHT DIRTY
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