Download - Vacuum Robot : Roomba 690
Roomba® 690 Vacuuming Robot
BPMM6013 Marketing Management
Hafizullah Mohd Amin 822481
See Pei Hiam 822112
Zuhadi Shamsuddin 822416
Content
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PART I
1. Executive Summary
2. Introduction
3. Situational AnalysisSTP Analysis
SWOT Analysis
BCG Analysis
PART II
4. Proposed Marketing
Objective
5. Proposed Marketing Mix
Strategy & TacticsProduct
Price
Place
Promotion
PART III
6. Financial Forecast
7. Controls
8. Conclusion
9. References
Executive Summary
Introduction
Situational Analysis
Part I
Executive Summary
Roomba® 690 is the latest product by iRobot offers a lot of
functionality for the price, including control via smart phone
for voice commands through popular smart home devices.
This marketing plan will discuss about current market
situation, marketing strategies, financial forecast and
implementation control.
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Introduction
1990•MIT roboticists Colin Angle, Helen
Greiner and Rodney Brooks co-found
iRobot.
1996•iRobot develops Ariel™, a robot that
detects and eliminates mines in surf
zones.
2002•iRobot launches the Roomba® floor
vacuuming robot.
•iRobot and the National Geographic
Society develop a robot that searches the
Great Pyramid in Egypt.
2005•iRobot launches the Scooba® floor
washing robot.
•iRobot stock begins trading on the
NASDAQ Stock Exchange.
2007•iRobot launches the Create®
programmable mobile robot.
•iRobot launches the Verro® pool
cleaning robot and the Looj® gutter
cleaning robot.
2008•iRobot launches the Roomba®
pet series and professional series
vacuum cleaning robots.
•iRobot wins contract to develop
LANdroid communication robot.
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2011•iRobot develops 110 FirstLook ® , a small, light, throwable UGV.
•iRobot launches the Scooba® 230 floor washing robot.
•iRobot launches Roomba® 700 series vacuuming robots.
2013•iRobot launches Roomba® 800 Series, with revolutionary
AeroForce®Performance Cleaning System.
•iRobot launches the Ava™ 500 video collaboration robot and
Mirra™ 530 pool cleaning robot.
•More than 10 million home robots sold worldwide.
2015•iRobot launches the Roomba® 980
vacuuming robot, combining intelligent
visual navigation, cloud connected
app control and increased cleaning
power on carpets.
2017•iRobot launches Roomba® 690
and 890, extending Wi-Fi
connectivity to entire Roomba line.
•iRobot acquires Sales on Demand
Corporation (SODC), launching four
new iRobot offices in Japan.
Psychographic
- Professional with high-
tech awareness
- Simple and modern
lifestyle
- Keep things clean, neat
and well-organize
Geographic
- Live in metropolitan and
big cities such as Kuala
Lumpur, Penang and Johor
Bahru
- Small houses such as
studio and apartment
Demographic
- A person age 30+ with
high disposable income
- Male and Female, Family
with husband and wife
working (RM10,000/mth)
- Higher level education
Segmentation, Target Market & Positioning
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Market
Segmentation
It is of importance to
position Roomba 690
as an appliance that
offers convenience to
its consumers at lower
cost
The positioning strategy
is by highlighting its
innovation, unique
features, convenience,
prestige image and
long – term benefit.
Segmentation, Target Market & Positioning
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Positioning
Strength
▰ High reputation and
well established
▰ iRobot makes up
10% of market
share globally
▰ Pioneer of niche
market
SWOT Analysis
Weakness
▰ Minimal
technological
differences
▰ Produce very much
similar product
▰ Single function
machine
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Opportunity
▰ Increase demand for
robotic vacuum
▰ New technology
available to explore
such as system app
and integrated home
system
Threats
▰ Negative online
review
▰ New producers
produce similar
product with lower
price
Supplier Power
- Because the role of suppliers of
raw materials, components, and
services including expertise is
played by iRobot, the relationship
with the power of suppliers is low
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Porter 5 Forces
Competitive
Rivalry
Supplier Power
BuyerPower
Threat of
New Entry
Threat ofSubstitution
Competitive Rivalry
- iRobot have to compete with
other competitors such as Dyson,
Electrolux, Samsung aggressively.
- Competitors often introduce new
products with advance features.
Threat of New Entry
- The impact is low
- High height of “Barrier to Entry”
- Require such as specific
technology and economic of scale
Threat of Substitution
- The threat is large, with
hundreds of new vacuums
cleaners produce each year with
new technologies.
- iRobot should further invest in
creating unique vacuum cleaner
that can compete with robot
cleaner, steam cleaner, and other
type of vacuum cleaners.
Buyer Power
- Purchaser who buys has a big
influence.
- Demand mainly to replace
existing vacuum cleaner.
- The variability of product give an
option to customer, thus the price
should be competitive and
attractive
Proposed Marketing
Objective
Proposed Marketing Mix Strategy
& Tactics
Part II
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To achieve 1200 unit sold within the first year of sales
Market Share
Distribution
To distribute the Roomba® 690 Vacuum to all major
hypermarket and home appliance stores.
To increase brand awareness of the iRobot Roomba® 690 products
through social media, advertisements and demonstrations
Brand Awareness
Objectives
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Product
3 Stage Cleaning
System
Advanced Sensors
Auto-Scheduled
Cleaning
Simple Push
Button Control
Return to Base Charging
Powerful Clean
for the Size
Maintenance
Accessories
Price
Online Store
Roomba 690 will be available on
online store as Lazada, 11 street
and Gemfive. Customer may review
and purchase directly from
respective online store.
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Place
In-Store
Roomba will be placed in
hypermarket, retailer and
electrical shops such as Aeon,
Parkson and Harvey Norman
Promotion
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TV
Advertising
Social
Media AdsIn-store
demonstration
Promotion
TV Advertising
TV advertising will be used to
develop a new advertising
campaign directly to customer who
have a busy lifestyle that will
demonstrate how simple the
Roomba® 690 is to be used and
how convenient the robot is for
cleaning the home while away.
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In-store
demonstration
In-store demonstrations will
take place in selected major
hypermarket and mall. This
program will encourage
consumers to purchase the
Roomba® 690 by presenting
them with the physical object
and highlighting the benefits
of the robot.
Promotion
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Social Media
Social media will be used to
produce short videos,
photographic advertisements
and full advertisements on
Twitter, Facebook, Instagram
and YouTube. This social
media presence will occur all
year
Promotion
Financial Forecast
Controls
Conclussions
Part III
Annual Sales Forecast
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2017 2018 2019
Price/ unit RM 1,599 RM 1,599 RM 1,599
Unit Sold 1,200 1,320 1,452
Revenue RM 1,918,800 RM 2,110,680 RM 2,321,748
Marketing Expense
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RM RM
Gross Sales 1,918,800
Cost of goods sold 1,151,280 60%
Gross Margin 767,520 40%
Marketing Expense
TV Advertising 300,000
In-Store Demo 60,000
Social Media Ads 40,000
Others 20,000
Total 420,000 21%
Net Profit 367,520 18%
Implementation Control
Annual Revenue & Expense
- Annual revenue and expense will show sales
performance for the year. This will be reviewed and
the marketing plan will be adjusted
- The marketing plan works well if it meets the
target
The implementation control should be done on monthly and annual
basis. Two key indicator to measure the sales performance are
revenue and expense
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Monthly Revenue & Expense
- iRobot have to sell 100 unit of Roomba
690 per month in order to meet the sales
target.
- The sales may reduce during low season
and should be improved in following month
Conclusion
iRobot Roomba® 690 is a great product with high technology
specification that convenience and user-friendly. The product has a
potential to penetrate local market with the proposed marketing plan.
iRobot has to increase the number of crowd and start the brand
awareness program to increase sale performance through
advertising and social media. The proposed financial plan is
achievable for short-term and long-term.
We wish all the best to Roomba® 690.
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References
▰ http://www.irobot.com/
▰ https://www.ukessays.com/essays/marketing/marketing-plan-for-samsung-vacuum-
cleaner-marketing-essay.php
▰ https://www.slideshare.net/CiraylieMendoza/dyson-360-eye-robot-marketing-plan
▰ https://www.norwegianrockcat.com/assets/inf4260_files/trentonw-project1.pdf
▰ http://www.ijrct.org/documents/april2015/ijrct_vijayalaxmi-april_15.pdf
▰ https://www.allhomerobotics.com/irobot-roomba-650-review/
▰ http://sea.pcmag.com/vacuums/16354/review/irobot-roomba-690
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THANK YOU!Any questions?