Dosin's use the undifferentiated marketing strategy, that is, the business consider the entire market as its target market, consider only about the common market demand and regardless of their differences, the use of a product, a price, a marketing approach to attract more potential consumers (Dosin aims to, 2009). Dosin's products are high-end products with high price and relatively high performance, they want to sell products with high-priced and high-performance in all categories of the markets like the sale of vacuum cleaners. According to Marketing for entrepreneurs (2009), this product is only suitable for high-end market which is very limited, once the market reached saturation, Dosin's products are difficult to increase market share. It is not surprising of the market share’s decline.
Dosin should choose a differentiated marketing strategy. Differentiated marketing strategy is to segment the market into a number of sub-markets and for different sub-markets and design different products and different marketing strategies to meet different consumers' needs. In the face of different market categories Dosin should have different marketing strategy. In the high-end market Dosin should increase the investment of advertisement, it can make the potential customers to know the strong performance of Dosin’s products and dilute the disadvantage of high price (James Dosin, 2009). At the same time, the company should also actively develop low-end products to reduce the costs of products, as well guarantying the performance of products as reducing the prices of products. In the mid-and low-end market Dosin should strengthen the cooperation with department stores, grocery stores and supermarkets, so that those washing machines with lower prices and average performance can be accepted by the ordinary mid-end and low-end customers. Only the striving in both the high-end and the low-end market can make Dosin to get more market share.
Dosin’s company should change the current predicament in two ways. First of all, reduce the prices. It can be carried out by reducing product costs, such as labor costs. Dosin's company has begun to realize this problem; they began to reduce production costs. In recent years, Dosin began to move their factories out of the UK to reduce costs (Dosin Washing Machine, 2009). They began to build factories in developing countries in Asia such as China, Philippines, Malaysia and Vietnam. To move factories outside the UK can effectively reduce product costs and increase product’ attraction to the consumers. Dosin said, such an approach will cut 600 British jobs, but the washing machine can reduce the cost of one quarter. The reduction of the cost will be helpful for the Dosin’s development in washing machine market. Secondly, Dosin must strengthen their advertisement. They must change the company's high-performance, high-priced image. Also, they should improve the Dosin washing machine’s market share in the mid-and low-end market.
Dosin’s vacuum cleaners in the market are facing strong competition from foreign companies. For this situation, they decided to enter new markets: washing machine. However, their high price, high-performance marketing strategy is not appropriate for this market. They must segment this market properly and use differentiated market strategy in order to better the performance and capture a greater market share.