Introduction
This research paper is market research aimed at successfully introducing a Chinese-made smart roller-less vacuum cleaner in the North American market. The study is nestled within international business marketing literature, which seeks to find effective ways of optimizing market entry options for foreign companies intending to venture into new markets (Arya et al., 2023). Based on this investigation’s focus, the current probe highlights factors to consider when introducing a foreign-made product into the North American market.
Particularly, the study highlights political, cultural, and economic issues that impact the reception of Chinese products among consumers in this market (Wang, 2020). To meet this goal, the current probe investigates the impact of internal and external market factors on the process. At the end of the investigation, a robust marketing plan will be formulated, and it will explain how to overcome the nuanced challenges of introducing a roller-less vacuum cleaning cleaner in the North American market.
Market Outlook
As highlighted in this document, the proposed marketing plan is targeting consumers in the North American market. Primarily, this market comprises the United States (US) and Canada. It is home to about 330 million people – 300 million from the US and 36 million from Canada (Worldometer, 2023). This market research treats These two markets as one entity because their consumers share similar characteristics and cultural ideals that influence behavior (Sands & Carment, 2019). Additionally, these markets are selected for the launch of the proposed product because they have a high concentration of consumers with high disposable incomes (Gecelovsky & Murray, 2021). Similarly, their lifestyles are likely to accommodate innovative cleaning devices because of their ability to supplement daily tasks.
The North American vacuum cleaner market is undergoing significant change. Observers estimate that the current transformation period in the industry will result in a net growth of about 3.5% points annually (Research and Markets, 2020). This statement is supported by the findings highlighted in Figure 1 below, which show projections for the future growth of this market size.
As highlighted in Figure 1 above, there is a steady trend in the vacuum cleaner market growth, which is expected to continue until 2026. This trend is attributed to a growing interest of middle-class consumers in the potential of new vacuum cleaners to complete their household chores efficiently and affordably (Graphical Research, 2023). Therefore, countries with a majority middle-class population, such as Canada or the US, offer a unique market for selling such products (Sands & Carment, 2019). Nonetheless, the increase in market profile is notably concentrated in the US market because, as shown in Figure 1 above, Canada has reported no growth across the analysis period. This finding implies that the marketing strategy should primarily focus on the US as opposed to Canada.
Despite the prospects for marketing the roller-less vacuum cleaner in North America, this industry has a relatively low growth rate compared to emerging markets (Research and Markets, 2020). This phenomenon can be attributed to the fact that both the US and Canada are mature markets (Sands & Carment, 2019). Therefore, unlike emerging markets, which have growth rates of about 5% per annum, the North American market experiences growth rates of about 1%-2% (Gecelovsky & Murray, 2021). These statistics indicate that there is a low growth potential for selling roller-less vacuum mops in this market. However, this limitation will be addressed by targeting new demographics within this market setup, as will be evidenced in subsequent sections of this research.
Analysis of Internal Environment
An analysis of a product’s key features and its relation to the needs and priorities of the target market is important in determining its success in new markets. To this end, it is important to undertake an analysis of key properties of the roller-less vacuum mop that would influence how consumers in the North American market respond to its introduction. To aid in this analysis, the SWOT analysis model will be used to carry out the investigation, as shown below.
Strengths
- No rollers design non-stick hair clear and convenient no odor.
- Self-cleaning with electrolytic water disinfection function.
- Saves time and effort.
- Intelligent management.
Weaknesses
- Negative attitudes towards Chinese products (Wang, 2020).
- May fail to fit in tight spaces.
Opportunities
- High profitability of North American market.
- Use of Artificial intelligence (AI) to improve functionality.
Threats
- Emergence of new technologies.
- Competition and rivalry.
According to the analysis above, the rollerless cleaner has many advantages, including innovation, technological advancement, and efficiency. These features will form part of the online advertisement campaign for the product. At the same time, the lucrative North American market offers an opportunity for increasing product sales, thereby supporting the ability to scale it upwards (Sands & Carment, 2019). The emergence of new technologies and competition are potential threats that need to be addressed, while the negative attitudes toward Chinese products could be mitigated through the development of innovative marketing campaigns. Overall, this internal environment analysis highlights the potential that roller-less vacuum cleaners have in successfully entering the North American market.
Analysis of External Environment
An analysis of the external environment is important for the successful launch of the roller-less vacuum product in the North American market. According to the tenets of the PESTLE model, this kind of review should consider the effects of politics, economics, society, technology, laws, and the environment on the success of the marketing plan. Based on this recommendation, a comprehensive review of the external market environment will be undertaken using the PSTLE framework, as described below.
Politics
The North American market is perhaps one of the most stable markets in the world (Sands & Carment, 2019). This fete is occasioned by the respect for rules and laws governing the industry. Consequently, it is possible to lower the risk of market upheavals that may be caused by political changes. At the same time, it sets the stage for predicting others aspects of external environment analysis, including laws and policies that would govern the sale and use of roller-less vacuum mops in the North American market.
Economics
The North American target market is characterized by a high-income society, that supports a premium pricing model. Indeed, according to a World Bank (2022) report, Canada and the US have among the highest per capita income in the world, set at $41,900 and $59.034 for Canada and the US, respectively. These findings support the adoption of a high-end marketing model where the proposed product will be priced at a premium to maximize the economic advantages of the target market.
Society
Social changes affect consumer behaviors and expectations regarding products or services. Currently, the North American market is largely a liberal society where consumers share similar views on marketing and consumer behavior (Graphical Research, 2023). However, the parent company manufacturing the roller-less vacuum cleaners is based in China.
The US and China have differences in opinion regarding values, norms, and beliefs about societal growth and development (Wang, 2020). These differences have the potential to affect the marketing plan because they may influence how consumers respond to the new product. To minimize the effects of these variations on consumer behavior between the US and China, a localized approach of marketing will be adopted. This technique will help in customizing the marketing plan to suit the norms, beliefs, and values of North American consumers.
Technology
Arguably, technology is one of the most revolutionary forces to affect business in the 21st century. Marketing is influenced in a similar fashion because it shapes communication styles and product development processes (Cohen, 2018). The North American market is among the most technologically advanced zones in the world. Therefore, one could reasonably expect its customers to be receptive to new product ideas that leverage this competency. The introduction of the roller-less vacuum cleaner is hinged on this principle.
Laws
The legal environment of the North American market is high litigious. Therefore, it is important for new market entrants to protect themselves from this risk by clarifying product expectations and safety guidelines to customers before use (Cohen, 2018). This action would ensure that few people sue the company for consequences that may emerge from the use of its roller-less cleaner.
Environment Concerns about sustainability and environmental protection have dominated political, social, and economic discussions in the North American market (Sands & Carment, 2019). These deliberations have led to the enforcement of stricter regulatory polices to moderate industry operations. The design of the roller-less vacuum cleaner should be developed with this principle in mind. This action may involve ensuring that the product meets environmental safety and energy use guidelines in North America. The goal is to contribute towards environmental conservation and not degradation.
Research Methods
The marketing plan outlined in this document was prepared after analyzing two sets of data. The first one is secondary data, which involves a review of statistics relating to the vacuum cleaning business and the potential of the North American market to accommodate the Chinese-made roller-less vacuum cleaner. This data collection strategy included the use of additive formulas to determine the outcomes of the market research. The function was undertaken within the confines of the number theory, which stipulates that the additive function will play the role of an arithmetic integer using the scale below (Lozano-Robledo, 2019).
f(ab) = f(a) + f(b)
In the above-mentioned scale, “f” is the positive integer, while “a” and “b” are co-prime variables. Therefore, the function applicable to the new product to be launched in the market will be similar to estimating the sum of the values “a” and “b”.
The second data set in this review relates to primary data obtained after surveying 107 consumers in the North American market (see appendix). These respondents were asked to give their views on four key areas of marketing operations: place, price, product, and promotion. These data were reviewed using descriptive statistics, which analyzed key features, including, but not limited to, an analysis of means, frequencies, and modes.
Proposed Marketing Strategy
The marketing strategy for the entry of high-end roller-less vacuum cleaners in the North American market will be based on proposals made by the marketing guru Philip Kotler. Kotler introduced the 4Ps of marketing, which include discussions on the development of place, price, promotion, and product strategies (Saxena et al., 2022). The marketing plan tenets are discussed below.
Product
Unlike other vacuum cleaning products, the proposed high-end smart roller-less vacuum mop offers unique features that increase functionality and efficiency. For example, it will include a no-roller design, which is seldom seen in the market. At the same time, it is non-stick, convenient, and has no odor, making it appealing to a broader customer base. This product is equally suitable for consumers who intend to protect delicate wood or vinyl floors when cleaning because it contains no rollers. Additionally, people who do not have wall-to-wall carpets or do not plan to clean them are equally likely to find this product useful. Therefore, the roller-less feature of the product will make it possible to avoid scratching the cleaning surface or denting the protective finishing of the floors.
Similarly, consumers who purchase the product do not need to worry about tangles, saving costs and time. The features described above make the roller-less vacuum cleaner suitable for consumers who want quick, efficient, and effective cleaning. Broadly, these features make the proposed product suitable for use by various consumer groups.
Pricing
Currently, the price for the high-end roller-less vacuum is 4000 RMB in China. In North America, the average price of a roller-based vacuum cleaner is 1,500 RMB (Amazon, 2023). However, given that the proposed product is innovative and unique, its pricing will be standardized at 4,000 RMP. This target is above the average price of a vacuum cleaner in North America, but it will be set to this number because of its premium characteristics.
Therefore, the proposed pricing model will be standardized with the Chinese market. The advantage of doing so will be to eliminate market pricing gaps, which may influence the market operationalization of the new product (Arya et al., 2023). This pricing model also includes all taxes, shipping, and additional costs associated with delivering the product to the customers.
Promotion
The selected product will be marketed using online and offline channels. Primary marketing channels will include word-of-mouth communication because of its effectiveness and ability to demonstrate the value of a product (Wang, 2020). This promotion strategy thrives on the desire of customers to share information about the product with family and friends. The marketing strategy has been successfully used to launch new products in the market, including Dropbox and Tinder, which are widely successful today based on this marketing strategy (Wang, 2020).
This word-of-mouth marketing platform will similarly be integrated into the plan because it is easily aligned with social media marketing campaigns, which form the basis for developing the online marketing promotion plan (Cohen, 2018). In other words, word-of-mouth communication will leverage social media and create viral clips to demonstrate the product’s value. These files could be shared on various social media platforms, including YouTube, Facebook, and Instagram.
Place
The last part of the marketing mix plan is the place strategy, which relates to developing plans for availing the product to the market. Based on this description, the place strategy will be a hybrid model of online and offline plans. The online model will allow customers to order and deliver the product to their doorstep. Additionally, the offline plan will involve physical delivery of the roller-less vacuum cleaners to the physical shop. Customers can view the product at a shop and pay for it in this plan. The hybrid model is selected for the current probe because it covers the needs of different consumer groups. Therefore, it will be augmented with the other three aspects of the marketing strategy outlined above to create a mixed marketing plan to introduce the Chinese-made roller-less vacuum in the North American market.
Brand Positioning
For brand positioning, we will use the segmentation, targeting, and positioning technique (STP) model, as shown below.
Segmentation
In terms of segmentation, the roller-less vacuum will target high-end consumers. Stated differently, the marketing plan will exclusively focus on the premium market as the target population. The premium market was selected because of its high potential for profitability and its proclivity to try out novel products before other market segments do the same (Sands & Carment, 2019). Therefore, high-end customers form the primary market segment for the proposed marketing plan.
Targeting
The proposed brand will appeal to a young demographic of customers. The Boston Consulting Group Matrix (BCG) will be used to analyze the market segment. According to this model, markets can be defined as stars, dogs, cash cows, and question marks, as depicted in Figure 2 below.
As highlighted in Figure 2 above, the BCG matrix is defined by assessing the market growth rate and relative market share. These two indices provide the basis for determining the market segmentation strategy, characterized by four key market profiles: cash cow, stars, dogs, and question marks. Question marks refer to markets with extreme uncertainty about whether the products will get to market (Cohen, 2018). The North American market is developed and stable, so this category does not fit the market profile. Therefore, it could not be used to describe the target market.
Comparatively, the “star” section of the BCG matrix defines markets with high earnings, neutral cash flows, and growth investments (Cohen, 2018). The “dogs” market is defined by low earning potential, neutral or negative cash flow, and a divesting strategy. This market profile is similarly inconsistent with the characteristics of the North American market because it has high and stable earnings for its populations relative to other markets worldwide (Sands & Carment, 2019).
Lastly, the “cow” market segment is defined by a high earnings potential, stable economy, stable cash flow, and high levels of profitability. These features define the target market’s characteristics because North America shares these properties. Therefore, it can be argued that the target market is likely to be lucrative and fits the profile of the “cash cow” strategy.
Positioning
The positioning strategy for the selected brand will be designed to present the roller-less vacuum product as innovative. The pain point for the target market is quality concerns. Positioning the vacuum cleaner as an innovative product will transcend price as the primary concern in developing the marketing plan because high-end markets are not exclusively sensitive to price fluctuations (World Bank, 2022). However, given that quality is a priority area for customers in this demographic, it emerges as a pain point for most consumers (Arya et al., 2023). These concerns affect customer service experience, including satisfaction, loyalty to products or brands, and the protection of a brand image.
Summary
The findings of this market research demonstrate the potential of launching a Chinese-manufactured vacuum cleaner without rollers in the North American market. A review of the company’s internal environment suggests that the product’s multiple advantages are likely to be enjoyed if communicated effectively to customers. The adoption of the hybrid marketing plan is likely to address these concerns. It is similarly expected to be supported by the brand positioning strategy, ensuring the product is sold to the desired target market and demographic. Based on the market size projections of the North American vacuum cleaner market, the proposed plan has the potential to successfully introduce the Chinese-made vacuum cleaner in the market of North America.
References
Amazon. (2023). Household vacuum cleaners. Web.
Arya, V., Sharma, A., Ting, H., & Gowreesunkar, V.G. B. (2023). Guest editorial: Blue whistle for brands – consumers’ and stakeholders’ perspective towards reformation in marketing legal practices. International Journal of Law and Management, 65(1), 1-3. Web.
Cohen, H. (2018). Flat social media usage: What your business must do now [research]. Web.
Gecelovsky, P., & Murray, R. W. (2021). The Palgrave handbook of Canada in international affairs. Springer International Publishing.
Graphical Research. (2023). North America household vacuum cleaners market. Web.
Lozano-Robledo, Á. (2019). Number theory and geometry: An introduction to arithmetic geometry. American Mathematical Society.
Research and Markets. (2020). North America vacuum cleaner market 2020-2026. Web.
Sands, C., & Carment, D. (Eds.). (2019). Canada–US relations: Sovereignty or shared institutions? Springer International Publishing.
Saxena, D., Brady, M., Lamest, M., & Fellenz, M. (2022). Bridging the marketing-finance divide: Use of customer voice in managerial decision-making. Qualitative Market Research, 25(3), 361-382.
Wang, X. (2020). Winning American hearts and minds: China’s image building efforts in the 21st century. Springer Nature Singapore.
World Bank. (2022). Adjusted net national income per capita. Web.
Worldometer. (2023). Canada population. Web.
Appendix
Part A – Demographic Findings
- What is your gender?
- Male;
- Female;
- I would rather not say.
- What is your age?
- 18 – 25 years;
- 26-35 years;
- 36-45 years;
- 46- 55 years;
- More than 55 years.
- What is your highest educational qualification?
- High school or lower;
- Diploma;
- Undergraduate Degree;
- Masters;
- PhD or higher.
- How many brands of vacuum cleaners have you ever bought?
- 1;
- 2 -3;
- 4 – 5;
- 5 – 7;
- More than 7.
- How many vacuum cleaner adverts have you ever watched?
- Less than 2;
- 2-5;
- 5-7;
- 7-10;
- More than 10.
Part B – Factor Analysis
In this part of the questionnaire, we seek to understand your views on the vacuum cleaning market. Please, tick (✔) on the option that best describes your knowledge of the market.
Product
- Roller-less vacuum cleaners are innovative
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- Roller-less vacuum cleaners are efficient
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- Roller-less vacuum cleaners leave no marks on clean surfaces
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- Roller-less vacuum cleaners create a deeper depth to cleaning compared to other brands
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- Roller-less vacuum cleaners are better than others in the market
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree.
Place
- I would buy roller-less vacuum cleaners online
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- I would prefer to review a product physically before buying
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- I trust that the quality of roller-less vacuum cleaners sold online are as advertised
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- I would prefer to have my products delivered to me, as opposed to going to the shop
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- A hybrid distribution model that includes both online and offline methods is preferable to the use of one technique
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree.
Promotion
- Social media increases brand loyalty among ardent consumers
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- Companies that constantly get positive social media reviews have a positive brand identity
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- A company’s number of followers on social media can be effectively used as a reliable measure of its business reputation
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- Increased social media use would help to enhance brand recognition of the roller-less vacuum cleaner
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- Social media is a reliable tool for helping companies to maximize their business reputation
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree.
Price
- I would buy a vacuum cleaner at a high price if I see the worth
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- Technologically-advanced products can be priced above conventional products
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- I would buy a Chinese vacuum as opposed to an American one if prices were similar
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree;
- A product’s price conveys its inherent quality
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree.
- I would pay a premium price for a vacuum cleaner that has unique features
- Strongly Agree;
- Agree;
- Neither Agree nor Disagree;
- Disagree;
- Strongly Disagree.