Roomba® 690 Vacuuming Robot

BPMM6013 Marketing Management

Hafizullah Mohd Amin 822481

See Pei Hiam 822112

Zuhadi Shamsuddin 822416

Content

2

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.

4

5

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.

6

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

7

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

8

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

9

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

10

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

13

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

14

15

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.

17

Place

In-Store

Roomba will be placed in

hypermarket, retailer and

electrical shops such as Aeon,

Parkson and Harvey Norman

Promotion

18

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.

20

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

21

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

23

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

24

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

25

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.

26

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

27

THANK YOU!Any questions?