Dirt Devil

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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