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3M Touch Systems UK M00291693 2010
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MKT 4001: Contemporary Marketing Strategy
Seminar tutor’s name : Mark McPherson, Kinnari Pancholi.
Academic Group : Marketing
Name : Manzil Madhwani (M00291693)
Assessment : Marketing Plan Phase 1 (Situation Analysis)
Date: 12th July 2010
Word Count- 1644.
Middlesex University Business School London MA Marketing Management
January 2010 Intake.
3M Touch Systems UK M00291693 2010
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TABLE OF CONTENTS
1. Company Overview.......................................................................3
2. Executive Summary.......................................................................4
3. Competitor Analysis.......................................................................5
4. Environmental Analysis..................................................................6
5. Market Analysis..............................................................................7
6. Customer Analysis.........................................................................8
7. Internal Analysis.............................................................................9
8. References.....................................................................................10
3M Touch Systems UK M00291693 2010
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Company Overview:
3M Touch Systems is a subsidiary from business unit of the 3M Electro &
Communications Business (headquarter, Texas), which is a business group of the
3M Company (headquartered in St. Paul, Minnesota, USA). 3M is a technology
company with more than 35 business units, organized into six businesses:
- Consumer and Office.
- Display and Graphics.
- Electro and Communications.
- Health Care.
- Industrial and Transportation Safety.
- Security and Protection Services.
Its operations are spread in 65 countries and products are sold in nearly 200
countries. It has 75000 employees globally and sales in 2009 were $23 billion. 3M
chose the UK for its first expansion outside America and the UK subsidiary was
formally established in 1951 as the 3M United Kingdom PLC. With head office in
Bracknell, Berkshire, it has 16 locations and 12 manufacturing sites in UK with 3500
employees and 2007 sales exceeded £817 million1.
3M Touch Systems was started in US by 3M acquisitions of Dynapro Thin Films in
2000 and MicroTouch Systems in 2001. The touch screens and monitors lie under
the product categories of Display and Graphics and Electro and
Telecommunications. All the touch screens and monitors are produced at the
manufacturing facility of 3M Touch Systems in Massachusetts (USA) and are
distributed worldwide by 11 sales offices, one of them located in the UK2. 3M Touch
Systems UK Ltd. is located at the headquarters in Berkshire and this subsidiary has
86 employees3. The products offered are multitouch displays, touchscreen systems,
touchscreen displays, touchscreen controllers, touchscreen software and selections
offered under the brand name of 3M Microtouch. It finds applications in gaming
(casino games including single and multiplayer games), retail (digital signage,
embedded kiosks, retail self service), financial (ATM’s and in bank), transportation
(seatback entertainment, ticketing and navigation), entertainment, industrial (process
1 http://solutions.3m.co.uk/wps/portal/3M/en_GB/about-3M/information/about/us/
2 http://solutions.3m.co.uk/wps/portal/3M/en_GB/Products2/ProdServ/
3 http://www.answers.com/topic/3m-touch-systems-uk-limited
3M Touch Systems UK M00291693 2010
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control) and healthcare4. Situation analysis will be carried out in the following
sections of the marketing plan of 3M Touch Systems UK Ltd.
Executive Summary:
Following the company overview, the report will show the situation analysis of 3M
Touch Systems UK Ltd. which will help discover the key issues to be tackled by
strategies.
Competitor analysis shows the market segments that 3M Touch Systems and other
competitors entertain. Positioning of 3M in terms of the market end (high/low) for
particular segment is shown. Key performance indicators according to the latest
available data are shown in two exhibits which display percentage growth margins
and segmented business report respectively followed by success and profitability
factors in the market analysis. Environmental analysis shows the influence that
technological environment. Customer analysis is done by the segments of direct
buyers and intermediate buyers. Finally the internal analysis sums up the current
situation in terms of a SWOT analysis.
Company’s present product portfolio which is an outcome of the diversification
strategy is very promising and there is an opportunity to capitalise on systems
market. Company faces some issues like cheap competition and customer’s
preference of cheap touchsreens for commercial applications.
Competitor Analysis:
The competitor analysis is displayed in Table1. 3M has different competitors
respective to application sectors like industrial equipment applications, touch screens
PC’s, touchscreen monitors and miscellaneous applications.
No. TABLE 1. Competitors separated on the basis of the
customers segments entertained by them Market End
1 Industrial Applications
Low
1.1 NEC Touch Tech 1.2 Impulse 1.3 Nemacom 1.4 Clever Interfaces 1.5 Distek Ltd. 1.6 Protouch UK
4 http://solutions.3m.co.uk/wps/portal/3M/en_GB/TouchSystems/TouchScreen/
3M Touch Systems UK M00291693 2010
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1.7 Dicoll Ltd.
Medium
3M
1.8 Zytronics Plc
1.9 Tyco Electronics
3M 1.1o Honneywell
Hig
h
1.11 Siemens 1.12 Emerson 2 New Windows 7 PC touch
Hig
h
2.1 ACER 2.1 Dell 2.3 HP 2.4 Samsung 3 Touch screen monitors 22" to 52"
Low
3.1 Distek Ltd. 3.2 Nemacom 3.4 G-Vision Touchscreens 3.5 Firebox Touchscreens 3.6 Continental Monitors 3M
3.7 Dicoll Ltd. Medium
3M
3.8 Zytronics Plc
3.9 Tyco Electronics
3.1o LG
Hig
h
3.11 Samsung 3.12 Sanyo 4 Miscellaneous Applications
Low
4.1 NESO 4.2 RDS Displays UK 4.3 U-Touch 4.4 Protouch UK 4.5 Dicoll Ltd.
Med
ium
and
Hig
her
4.6 Zytronics Plc 3M
4.7 Tyco Electronics
4.8 Others
In industrial applications 3M competes with high and medium end suppliers, which
are generally used by high quality and top/ middle end OEM’s as low grade
manufacturers will use the low end screen models. For touch screen experience, it
competes with big PC manufacturers like Acer, Dell, Samsung and HP as they
convert touchscreen monitor buyers into PC buyers. In touchscreen monitors it
competes with LG, Samsung and Sanyo. All the previous three sections make use of
3M Multitouch displays. Various miscellaneous applications like gaming and kiosk
make use of 3M Multitouch systems which have more implications than to merely
display.
3M Touch Systems UK M00291693 2010
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Industry/Market Analysis:
Key performance indicators- Performance for 3M United Kingdom is monitored
against the strategic plan through three key indicators as shown in the table below.
Segmental Analysis by class wise business-
From the total of £45.54 million for Display and graphics, in 2008 £25.3 million were
for 3M Touch Systems product sales, 25% higher from 20075.
Factors for Success-
- Relevant and Differentiated Promise. (Full range of touch screen products).
- Management of Expectations and Experience. (First 10 years of Microtouch
incubation were critical from 2001.)
- Process Alignment
- Common metrics of various businesses.
- Distinctive technological advantage of capacitive touch technology.
Profitability factors and competitive development:
Industry profitability derives from the structure, conduct and performance6. 5 http://www.answers.com/topic/3m-touch-systems-uk-limited
3M Touch Systems UK M00291693 2010
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- Level of competition varies according to the industry segment served by the
particular range of products.
- 3M Microtouch monitors face severe competition from established electronics
brands whereas the 3M Microtouch systems face less degree of competition.
- Different profitability from different segments.
The market for touch screens has grown quietly for years, both in commercial
applications like restaurant point-of-sale systems, credit card signature readers or
automated teller machines, and in consumer devices like global positioning systems
and game platforms7.
Environment Analysis:
Easy-to-use interactive screens that use touchscreen technology are replacing
keypads in several commercial and retail environments as well as government
departments across the UAE8. While demand for touch screens in the UAE is a
fraction of what it is in a single European or American state. Where earlier enquiries
were for 2 or 3 units per customer, now the demand is in the region of 10s or 100s of
units per customer.
Technological and product innovation are the most important environmental factors
in present and coming time as the market has a huge potential and latest upgrades
are necessary as the basic touch screen features are also provided by the local
companies mentioned in Table 1. 3M Company as usual has to show a quick
response to the technologically changing environment and “set” into the current
strategies the aims of coming out with market driving innovative touchscreen
products, as a delay in introduction can lead to a loss of opportunity9.
Customer Analysis:
The customers are segmented on basis of the product portfolio and the market end
(i.e quality and price of the product they purchase). Table 1 shows sections 1 to 4. It
is indicated in each section the market end served by the 3M products for that
application by 3M written in red letters.
6 Porter, M. (1980). Competitive Strategy : Techniques for analysing industries and competitors. The Free Press.
7 http://www.nytimes.com/2008/08/24/technology/24proto.html?_r=2&sq=n-
trig&st=cse&adxnnl=1&oref=slogin&scp=2&adxnnlx=1219557759-dalIEsd0wodH1z5WCcM60w 8 http://www.mul-t-media.com/pdf/pr-masonlite_june2005_eng.pdf
9 http://www.manufacturingnews.com/news/editorials/shor.html
3M Touch Systems UK M00291693 2010
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- Section 1 is for industrial applications. OEM’s include touchscreen interface
for MMI (Man Machine Interface), for machine operators. Each OEM serves to
customers of different level. High quality OEM’s supply equipments to
companies which do afford to buy costly and high quality products.
- For section 2 of Windows PC’s 3M does not make touch screen PC’s, but a
customer buying a touch screen PC would have been a probable customer for
3M if they opted to buy 3M Microtouch monitor to get a touchscreen
experience.
- Section 3 shows that tocuhscreen monitor/display users as customers of 3M
and 3M being towards medium and high end suppliers.
- Miscellaneous applications in section 4 are all customers with customised
requirements of a programmed touchscreen who may be supplied by local
Kiosk developers and either of them could be a potential 3M Touch System’s
customer. Section 4 is a very crucial market with major volume. Typical Kiosk
Manufacturers are shown in Table 2.
- Solution Providers Using touchscreens for devices like games, kiosks, retail seftchecks etc.
3M Touch Systems UK M00291693 2010
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Internal Analysis / SWOT:
Physical resources, financial resources, human resources and intellectual capital,
report no problem in 3M’s six sigma management. Below is the SWOT analysis for
3M Touch Systems UK Ltd.
The SWOT analysis outcomes show the strengths, weaknesses, opportunities and
threats for 3M Touch Systems UK. This will help further in forming marketing
objectives.
3M Touch Systems UK M00291693 2010
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References:
3M UK, (2010) “About us.” (online). Available from:
http://solutions.3m.co.uk/wps/portal/3M/en_GB/about-3M/information/about/us/
(Accessed, 6-7-2010).
3M UK, (2010) “Products and Services.” (online). Available from:
http://solutions.3m.co.uk/wps/portal/3M/en_GB/Products2/ProdServ/ (Accessed, 6-7-
2010).
3M UK, (2010) “Touch Screen.” (online). Available from:
http://solutions.3m.co.uk/wps/portal/3M/en_GB/TouchSystems/TouchScreen/
(Accessed, 6-7-2010).
Manufacturing and Technology News. (2009). “Managed Innovation: 3M’s Latest
Model For New Products.” (online). Available from:
http://www.manufacturingnews.com/news/editorials/shor.html. (Accessed, 6-7-2010).
Mul-t-media, (2005). “PR Masonite.” (online). Available from: http://www.mul-t-
media.com/pdf/pr-masonlite_june2005_eng.pdf. (Accessed, 6-7-2010).
Porter, M. (1980). Competitive Strategy : Techniques for analysing industries and
competitors. The Free Press.
The New York Times. (2009). “Turning point for TouchScreens”. (online). Available
from: http://www.nytimes.com/2008/08/24/technology/24proto.html?_r=2&sq=n-
trig&st=cse&adxnnl=1&oref=slogin&scp=2&adxnnlx=1219557759-
dalIEsd0wodH1z5WCcM60w. (Accessed, 6-7-2010).
3M Touch Systems UK M00291693 2010
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MKT 4001: Contemporary Marketing Strategy
Seminar tutor‟s name : Mark McPherson, Kinnari Pancholi.
Academic Group : Marketing
Name : Manzil Madhwani (M00291693)
Assessment : Marketing Plan Phase 2
Date: 12th July 2010
Word Count- 2919.
Middlesex University Business School London MA Marketing Management
January 2010 Intake.
3M Touch Systems UK M00291693 2010
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TABLE OF CONTENTS
1. Executive Summary.......................................................................3
2. Marketing Objectives......................................................................3
3. Targeting and Positioning...............................................................3
4. Growth Strategies...........................................................................6
5. Competitive Advantage...................................................................7
6. Marketing Mix..................................................................................7
7.Conclusions and Recommendations................................................9
8. Appendix........................................................................................11
9. References.....................................................................................12
3M Touch Systems UK M00291693 2010
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Executive Summary:
Following the situation analysed marketing objectives are set which are SMART
framed (Specific, Measurable, Actionable, Realistic and Time bound). Targeting and
positioning start with the segmentation of the diverse market, which is done based
on the applications, where market nature is considered as important. Particular
segment is targeted and positioned based on the attractiveness. Original examples
from the field are used and are hyperlinked for web reference. Growth strategies
evaluate separately, the growth alternatives for the two main segments of B2B
(industrial and commercial) and B2C (home entertainment/ displays). Competitive
advantages evaluate the advantages gained through the technology benefits and the
appropriateness of the resources in the big corporation. Marketing mix includes
details of PR and internet strategies and their effectiveness in the B2B and B2C
markets. Recommendations are made for the changes in strategies wherever
applicable.
Marketing Objectives:
A company has to select the strategic objective from build, hold, harvest and divest.
Looking at the growth of 25% in one year and considering the increasing market
volume the selection will be to build where the objective is to increase sales and
market share1. The objectives mentioned will ensure that they are specific,
measurable, actionable, realistic and time-bound. One of the objectives will be to
register a growth of 35% in sales of 2010 and achieve a target of minimum £33.75
million for fiscal year. Strategies for capitalization on the core competency held for
technology in „capacitive touch electronics‟, to capture the anticipated market of the
applications. Targeting more intermediate buyers and forming success stories of
multiple order sales to gain higher volume. To win customers in the home
entertainment sector, who can buy the 3M Microtouch monitors for their existing
systems, 3M competes with some established and famous electornics brands.
Targeting and Positioning Strategies:
Market segmentation is the step prior to targeting and positioning. Market
segmentation is the process of identification of consumers and organisations having
1 Doyle P. (1998). Marketing Management and Strategy. (2
nd edition). UK: Prentice Hall.
3M Touch Systems UK M00291693 2010
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similar set of characteristics which derive significant implications for deciding the
marketing strategy2. The nature of market is necessary to understand before
deciding the targeting and positioning strategies. The strategies are different for B2B
markets and B2C markets. The market can be considered as a mixture of business
market and consumer market. Most of the industry applications have an intermediate
OEM (Original Equipment Manufacturers) company using the touchscreens in
making the equipments to their client company. The displays monitors are directly
purchased by home or office clients from the web portal or local distributors. The
commercial sector customers can be either a direct buyer for own use or
intermediate buyer (example: A kiosk developing and manufacturing company using
3M touchscreens in the orders for kiosk, retail selfcheck or library catalogues). As it
is a mixed market the strategies will be combination of various strategies. 3M Touch
Systems has various products and there can be multiple markets for each product.
The application of 3M Touch System‟s products can be in any sectors like gaming,
retail, financial, transportation entertainment, industrial (process control) and
healthcare3. For 3M, each segment can have direct (B2C) and intermediate consumers
(B2B, like dealers and system developers).
Segments Applications
1. Gaming Slot Games (misc.)
Video Card Games (misc.)
Multiplayer Table Games (misc.)
2. Retail Point of Sale (comm.)
Digital Signage(comm.)
Self Service (comm.)
Food Service (comm.)
Hospitality (comm.)
3. Financial ATM's (comm.)
Trading Rooms Terminals (comm.)
In-bank Systems (comm.)
4. Transportation Navigation Devices (misc.)
Ticketing Systems (misc.)
Seatback Entertainment Systems (Monitor)
5. Industrial Manufacturing and Process Controls (industrial)
Food Processing (industrial)
Logistics and Handling Equipment (industrial)
2 Jobber D. (2004). Principles and Practice of Marketing. (4
th edition). Berkshire, UK: McGraw-Hill; Winsten A.
(2004). The Handbook of Market Segmentation. (3th edition). Binghamton, NY: The Haworth Press
3 http://solutions.3mindia.co.in/wps/portal/3M/en_IN/TouchSystems/TouchScreen/
Table 3: End User Segments
3M Touch Systems UK M00291693 2010
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6. Health Care Medical Records Access (misc.)
Pill Dispensing Equipment (misc.)
Bedside Patient Controls (misc.)
Diagnostic Equipment (misc.)
7. Entertainment Amusement Arcade Games (Monitor)
Skill Games (Monitor)
Bar Top Games (Monitor)
Each segment is further fragmented into high end market, middle market and high
end market. The aim is to communicate and capture consumers in the middle and
high end markets.
Target Market Strategy:
The nature of market in terms of number of segments and the diversity of those
segment determined upto a great extent the target market strategy. Appendix 1
shows the types of marketing strategies that are suitable for the different kinds of
market4. A differentiated marketing strategy is required for a market with diverse
segments. Separated marketing mixes will be used for each segment according to
the feasibility and suitability.
Segment Attractiveness and Positioning:
The attractiveness of the segments will also vary. Products each segment too can
belong to a separate area of application, as shown in table 3 indicated by words that
are in „( )‟. Customer‟s power, profitability, market volume and competitors are
different too. The external environment of the targeted industry can also affect the
segment. Miscellaneous and commercial applications mainly make use of
touchscreen systems which will most probably be supplied by some developers who
embed the touchscreens in the equipments like kiosks, game stations and self
checkouts. These system developers decide the parts to be used in the equipment
and they are the key targets. Table 2 will be recalled below to see who such
developers in current practice are as the prospects. If these developers are pursued
on the basis of the quality and
experience of Microtouch brand,
they can lead to generation of
multiple orders example 10 x
3M™MicroTouch™ System
SCT3250EX5 for developing a
touch screen game for casino in
London. It can go even be an order
for 50 such systems for a chain of
casinos.
4 Jobber D. (2004). Principles and Practice of Marketing. (4
th edition). Berkshire, UK: McGraw-Hill
5 http://solutions.3mindia.co.in/wps/portal/3M/en_IN/TouchSystems/TouchScreen/Applications/Gaming/
3M Touch Systems UK M00291693 2010
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Some examples of such existing customers are e-screens6, Display Solutions
Limited7, Innovations in Technology Limited8 and Power Products9. It never means
though that these customers use only 3M screens as they do buy from cheaper
suppliers when applicable. The positioning in this case will be on basis of the
situation will be done on the quality and experience of brand and the target will be for
medium and higher end customers to have profitable margins. Same positioning
applies for the industry segment. The positioning for the touchscreen monitors (not
systems!!) used for house hold entertainment and office interfaces should be based
on quality in relation with the competitors who are mainly big successful and
specialist electronics manufacturers. (Refer table 2 of Phase 1). The relative
positioning should be pushing part innovation into consumer segment. ( monitor for
existing PC).
Growth Strategies:
The strategies are primarily applicable to the industry and commercial segments.
Looking at the variety of applications and innovative uses of touchscreens and the
growing market in last few years (considering the recession proof nature) the product
is in a pure growth stage.
Boston Consultancy Group‟s growth matrix works on the basic logic that many
companies are involved with products in many industries, appendix210. This is the
same case with 3M Touch Systems. The industrial and commercial application
systems are in high growth market (greater than 12%) and high relative market share
it belongs to the „Star‟ and is on the path of growth. The touchscreen monitors
though are in the high market growth rate and they have a lesser market share, so
they belong to „Question Mark‟.
The current strategies can be determined by the use of Ansoff‟s growth strategies in
appendix311. The most applicable strategy relating to the objectives are market
penetration and market development as there is no need of further diversification
because it is highly diversified and there is no need for product development and just
keep with the present pace of innovation. Market penetration can be achieved as
described in the targeting strategy, by enhancing the business relationships with the
6 http://www.e-screen.co.uk/
7 http://displaysolutions.co.uk/?page=news&news_id=52
8 http://www.innovations-av.co.uk/cms.php?op=view&content_type=11&content_id=7
9 http://www.power-kiosk.com/index.php
10 Jobber D. (2004). Principles and Practice of Marketing. (4
th edition). Berkshire, UK: McGraw-Hill
11 Aaker D. and McLoughlin D. (2007). Strategic Market Management. (European edition). Sussex, UK: John
Wiley and Sons Ltd.
3M Touch Systems UK M00291693 2010
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intermediates. Intermediates indirectly facilitate the market development as they use
the touchscreen for customised applications. Also to encourage and enhance the
business relationship with the dealer is a useful strategy for market penetration. For
the touchscreen monitors section too it is the most effective way to penetrate market.
For example: 3M Touch Systems has chosen Midwich Limited as a value added
distributor for its range of MicroTouch LCD Touch Monitors in the UK12.
Competitive advantage:
The resources of the company like physical resources, financial resources, human
resources and intellectual resources are up to the best industrial standards in the
diversified technology company. There is a perfect mix of the resources backing the
product. The mix of people and finance give enough support to the growth strategies.
3M owns the best accuracy capacitive touch technology which is unique to them and
it can be a winning factor in many critical commercial applications relating to finance
industry and sensitive uses in multiplayer games and many other advantages. The
effectiveness and efficiency of the industrial and commercial products, backed by the
capacitive touch technology suggests its capability for sustainable competitive
advantage is in thriving position and 3M will be the first runner in certain applications.
Also 3M follows the NADA system for mounting of the touchscreens into frames of
various kiosks which are universal approved standard which many of the other
producers do not have. In Bowman‟s Strategy clock shown in the appendix 4, the
touchscreen monitors lie in the higher price and low perceived value (comparative)
whereas the industrial and commercial screen belong between the hybrid strategy
zone and differentiation strategy as the perceived usefulness (performance benefits)
are high13.
Marketing Mix:
Branding/Product Strategies: ‘3M Mictorouch’, Brand name of ‘Microtouch’ still in
use.
Product mix has the product line of touchscreens used for various applications in the
segments. For example 5”, 7”, 9”, 11”, 15” monitors and systems for industrial and
commercial applications, 17”, 19”, 21”, 25”, 29” monitors various for touchscreen
12
http://www.itrportal.com/absolutenm/templates/article-av.aspx?articleid=3432&zoneid=61 13
Bowman, C. And Faulkner D. (1995). The Essence of Competitive Strategy, Pretince Hall.
3M Touch Systems UK M00291693 2010
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displays and 32” to 52” touchscreens for miscellaneous applications. The
accessories, controls and software required for the hardware form the product depth.
The brand as a combination of both 3M and Microtouch has specific values attached
to them. 3M stands for quality, support, market success which is general and not
product specific whereas Microtouch stands for innovation, experience in the
technology, first runner in market (started 25 years ago) and these characteristics
are product specific. For industrial applications it is looked upon by the buyers as a
reduced risk strategy to buy the products as the presence of the brand in market
enhances the standardization. At the same time for 3M Microtouch, it helps them to
from a basic platform for slightly premium prices and differentiation from the
competitors. 3M can always target for repeat orders for the touch screen and provide
identification and re-identification of the product/brand through establishing a loyal
customer base. The week products in the home entertainment sector should be
protected by specific strategies against competition to preserve overall brand identity
of 3M Microtouch.
Price Strategies:
From previous discussion of the price issues, different price strategies imply for
industrial/commercial applications. The price basically sets directly into the
positioning strategies of the products relating to different segments. The price is
determined by the cost, target market and product strategy. The price quality matrix
suggest that for the segment of monitors, as compared to the premium positioning
product quality is medium and the price matches the highest and it comes as an
active strategy14. The placement of industrial/ commercial systems seems to be
premium positioning as the price and quality are highest and it also comes as a
passive strategy.
Distribution Strategies:
Midwich, Europe's largest AV distributor and the UK's leading distributor of AV,
digital imaging, computing, displays, printing, consumables and peripherals, will
market the MicroTouch M150 (15") and M170 (17") desktop monitors from 3M
through its IT reseller channel for various commercial and consumer applications.
14 Cravens, D. and Piercy, F. (2006). Strategic Marketing. (8
th edition). NY, USA : McGrawHill.
3M Touch Systems UK M00291693 2010
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The 3M monitors will be sold through professional sales teams based in Midwich's
Head Office in East Anglia. Customers will benefit from a value-added support
package with each monitor sold, including dedicated account management, access
to skilled technical specialists, product training, warranty support, marketing support
and a range of AV installation services. Similar relationships of downward vertical
integration are aimed to develop with the distributors of industrial and commercial
sector.
Promotional Strategies, Internet and Direct marketing strategies:
3M is a big corporation and uses most of promotional tools in the promotion mix, like
internet promotion, direct marketing, sales promotions, advertising, PR
communications and personal selling. Direct marketing, personal selling, and Sales
promotion are more related to the sales process. For 3M Touch Systems UK,
internet promotions and PR will be discussed in details. For advertising, platforms
like internet sites, print media (technology magazines) are mostly used. Most
advertisements are within the technology industry and the expenditures on radio and
television advertisements are very low. But greater focus is on internet promotions.
The consumer segment products are active in social media and trying to engage
consumers. Technology review online magazines are the best utilised platforms for
them. Some of them are politics.co.uk, newsweaver.co.uk, euroinvestor.co.uk,
electornicsweekly.com. The distribution channel activities, the exhibition participation
activities, opinion former review‟s, press releases, customer review articles, new
product launch news, product capabilities and superiorities are displayed on these
kind of websites. Also the banner and picture advertisement is done on internet
using the tagline “Innovations you can touch” which is a very effective message. The
products and innovations are being regularly displayed in the relevant exhibitions.
Conclusions and recommendations:
The market targeting and positioning and the growth objectives are accurately
related to the marketing objectives for the industrial and commercials segment
product ranges. The market penetration is likely to be achieved in the desired
segment of medium and the high end market. Also the strategies aim at market
development and on the basis of change in perceived usefulness and value of the
product in a longer period the market development is favourable. The new
applications and multiple orders will provoke market development. Also the segment
attractiveness is higher and the positioning for medium and high end customers is
appropriate. The prices are in the correct slot according to the positioning. The
internet strategies are very targeted and effective. It helps the overall brand image in
3M Touch Systems UK M00291693 2010
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the customers. The distribution strategies need to be still more impulsive on the
intermediates and they should be gradually converted into loyal. Personal
communications of the advantages and added values of products will help achieving
loyalty in long run.
The market targeting and positioning and the growth objectives are not accurately
related to the marketing objectives for the home/entertainment/touchscreen displays
segment product ranges. The market penetration is unlikely to be achieved in this
segment of medium and the high end market. There is a single application and lack
of multiple orders. Also the segment attractiveness is very low and the positioning for
medium and high end customers is not appropriate. The prices automatically are out
of the correct slot due to the unfavourable positioning considering the competition.
The prices need to be on the lower side as the perceived value in the consumer
market is ought to be lower than the specialist electronics brands. The internet
strategies are not sufficient as the market aimed is broader and television ads and
radio. It presently does not help the overall brand image in the customers. The
distribution strategies need to be impulsive on the direct market, online sales and
placing product in the correct electronic stores which is missing in the distribution
structure. Downward vertical integration is the way to reach the stores and have an
interaction and comparison with the favourite brands of market.
3M Touch Systems UK M00291693 2010
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Appendix:
1. Target Market Strategies.
2. Boston Consultancy Group Matrix.
3. Anzoff’s Growth Strategies.
3M Touch Systems UK M00291693 2010
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4. Bowman’s Strategy Clock.
References:
3M United Kingdom & Ireland, (2010) “About us.” (online). Available from:
http://solutions.3m.co.uk/wps/portal/3M/en_GB/about-3M/information/about/us/
(Accessed on 6-7-2010).
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