Situation analysis
3M is a company that is located in Australia and has been providing solutions to the customers and other businesses by inventing new products. The company uses almost 46 platforms that allow them to use the latest technologies for innovating new products. The inventions of the company has helped in improving the lives of million people around the world. The company recently had a sale of $30 million and has an employee strength of 90,000 people so that they can connect with the customers present worldwide (3m.com.au, 2018).
The company applies scientific technologies so that it can make a difference in the lives of the people and the work can be done in a better manner. The range of products extend from abrasives and adhesives to nanotechnology, which shows that the company has an efficient research and development team so that the solutions can be creative. The company also maintains corporate responsibility so that the development can be sustainable in nature. This leads to satisfaction among the customers so that the company can be a success in a commercial manner (3m.com.au, 2018).
The report will consist of a marketing plan of a consumer product known as Scotch Brite Non-Scratch Scrub Sponge. It will also highlight the various marketing mix that needs to be adopted by the company so that the product can be available to the customers in a better manner, which will allow in increasing the level of sales. A budget of $300,000 has been allocated to the marketing team in which the report needs to be pitched to the senior managers of the company (3m.com.au, 2018).
The analysis will be done in two manner such as internal and external analysis. The internal analysis will consist of the strengths and weaknesses of the company with respect to the product and the external analysis will comprise of opportunities and threats that are present in the company (Ottman 2017).
The major customers of the company will be those who do their household work. The product will help in cleaning the households so that it can be free from pollution. It can be used to clean the floor, kitchen, toilet as well as windows with ease so that the customers do not have to injure themselves. Another major factor is that most of the customers nowadays are paying attention in keeping their households clean so that pollution does not affect the other products that are present inside (Ryan 2018).
Marketing mix strategies
The major strength of the product will be that it will allow the customer in cleaning the various topographical points that are present in their houses. As some of the customers are not that tall, the use of the products will allow them in brushing the various furniture that are present in their houses. This will also prevent the customers from hurting themselves, as they may climb on to chairs or stools to clean the household (Mintu-Wimsatt and Winston 2013). Another strength is that the products will have a combo pack so that the customers do not have to repeatedly visit the shops to purchase the product once it stops functioning. This will allow the company in gaining a competitive advantage over the rival brands that are present in the Australian market (Garoufallou et al. 2013).
The weaknesses of the product is that it is not suited for all types of customer, as it can only clean some of the parts of the households. The bigger furniture that is present in the houses cannot be cleaned, as it requires bigger swabs to clean those households. Another major weakness for the company is that the condition of the hands may get deteriorated since the product has to be used manually and not with the help of a stick or a device. The price of the product is also very high, which may hamper the wide base of customers. The online availability of the products also needs to be increased so that it can result in better availability in the market (Sah and Fugh-Berman 2013).
The opportunities of the company is that it helps in spreading awareness among the consumers regarding the utility of the product. This helps in creating a little impact on the environmental front as well. Another opportunity is that this sector gets exhausted within a lesser amount of time and the prices of the product needs to be competitive so that it can allow more sale of the products (Chen, Lin and Kuo 2013).
The threats for the product is that there has been a rise in the technological advances, which has created new products for the consumers to use in an easy manner. The mechanical brooms and vacuum cleaners that are being provided by the company has helped the customers in doing the work in an easy manner. Another weakness is the lower cost of the substitute products that are present in the market with respect to Scotch Brite (Ryan 2016).
The product that will be provided by the company are made of natural ingredients such as sponge. The product needs to be innovated in a proper manner so that the base of customers can increase in the market. The attachment of a broom on the product will help the customers in using the product in an easy manner so that their hands do not get affected. The utility of the product will also be increased due to this manner, as it can be used to clean several items within the household (Zarrella 2013).
The use of better level of technology in the product will allow in attracting the customers towards it. The product can be fixed on to an electronic broom that is battery-operated so that it can used by the customers in an easy manner. This will also allow the company in gaining a competitive advantage over the other brands that are available in the market. The use of technology within the products will help in making it user-friendly for the customers (Kotabe and Helsen 2014).
The product can be differentiated in the market by introducing an aroma in it that will permeate to the furniture and the utensils that will be cleaned with the sponge. The use of lime as a primary aroma will allow the company in gaining competitive advantage in the market, as it will be a first of a kind and the households will smell good a swell. The varieties of aromas can be increased later on by the company based on the feedback that will be collected from the customers (Tiago and Verissimo 2014).
The price of the product will be based on the market survey and the price at which the competitors are giving its products. The established price of the product will help the company in calculating its costs and the percentage of profit that it will earn from the product. The manufacturing process of the product will be done technologically so that it can help in decreasing the total cost of manufacturing (Solomon et al. 2014).
The product will be made from organic materials so that it is not expensive and can be produced in large quantities. It will also consists of wool so that the soaking capacity of the sponge can be increased to a great extent. The scents that will be added to the product will help in increasing the penetration rate in the market as well. The company needs to conduct a survey in the present market so that the price of the products provided by the competitors can be checked. This will allow the company in getting a better review regarding the price that needs to be set for the product (Fuerderer, Herrmann and Wuebker 2013).
The product will be available in all over the market of Australia so that it can help in gaining the attraction of the customers. This will result in increasing the viability of the product in the market. The product will be available in all the leading supermarkets so that it can attract more number of customers. The product will be of premium quality and will allow the customers in keeping their households clean. The company has targeted a certain group of customers irrespective of their income level, which will allow them in selling the products in the major areas (Sheth 2017).
This is an important part of the marketing mix strategy, as the promotion of the product will allow the company in spreading awareness regarding the products that are available in the market. The company will be using online and print media to promote the products in the market. The online media will be used to spread awareness to the customers who are hooked on to social media sites. It will also increase the sale of the products in the e-commerce sites (Sah and Fugh-Berman 2013).
The print media will be used to advertise the products in the magazines and newspapers so that it can attract the readers as well. This will increase the amount of the sales of the company to a great extent. The products will be advertised in bus stops and other major public areas through billboards and banners so that it can spread awareness among the customers (Chen, Lin and Kuo 2013).
|
Particulars |
Amount ($) |
Amount ($) |
|
Fixed cost |
||
|
– Machinery |
35,000 |
|
|
– Buildings |
65,000 |
|
|
– Depreciation |
6,500 |
|
|
– Insurance |
12,500 |
|
|
– Salaries |
81,000 |
|
|
Variable cost |
||
|
– Commissions |
10,000 |
|
|
– Production supplies |
15,000 |
|
|
– Direct materials |
65,000 |
|
|
– Freight |
10,000 |
|
|
Total |
300,000 |
|
|
Gross Sales at $3 per piece |
416,000 |
|
|
Gross Profit |
116,000 |
|
|
Tax deductions @ 30% |
(34,800) |
|
|
Net Profit |
81,200 |
Thus it can be recommended that the company has a good potential in increasing its rate of sales in the market with respect to Scotch Brite. This is due to the fact that the company will be implementing the marketing mix strategies in a proper manner. The company will be using the product differentiation strategy so that it can help in innovating the product in a new manner. The products will help the customers in cleaning their households in a proper manner so that it can increase the level of satisfaction among them. The product will be given in a pack of three-set so that it can reduce the number of visits of the customers to the stores. This will also increase the level of satisfaction among the customers and encourage repeated purchases. The budget that has been allocated for the marketing plan has taken in to consideration all the necessary items that will be required in manufacturing the products and the company will be earning a net profit out of it as well.
Conclusion
Thus it can be concluded that the 3M Company will be benefitting from the marketing plan that has been designed for Scotch Brite Non-Scratch Scrub Sponge. The use of the modern techniques of marketing mix strategies will allow in increasing the level of sales for the product. The incorporation of the latest technologies in the manufacturing of the product will allow the company in decreasing its cost of production so that the level of profits can be increased in the market.
Reference List
3m.com.au. (2018). 3M Science. Applied to Life. | 3M Australia. [online] Available at: https://www.3m.com.au/3M/en_AU/company-au/ [Accessed 13 Nov. 2018].
3m.com.au. (2018). All 3M Products. [online] Available at: https://www.3m.com.au/3M/en_AU/company-au/all-3m-products/ [Accessed 13 Nov. 2018].
Chen, L.C., Lin, S.P. and Kuo, C.M., 2013. Rural tourism: Marketing strategies for the bed and breakfast industry in Taiwan. International Journal of Hospitality Management, 32, pp.278-286.
Fuerderer, R., Herrmann, A. and Wuebker, G. eds., 2013. Optimal bundling: marketing strategies for improving economic performance. Springer Science & Business Media.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Mintu-Wimsatt, A.T. and Winston, W., 2013. Environmental marketing: strategies, practice, theory, and research. Routledge.
Ottman, J., 2017. The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Routledge.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.
Sah, S. and Fugh?Berman, A., 2013. Physicians under the influence: social psychology and industry marketing strategies. The Journal of Law, Medicine & Ethics, 41(3), pp.665-672.
Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). London: Pearson.
Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why bother?. Business Horizons, 57(6), pp.703-708.
Zarrella, D., 2013. The science of marketing: When to tweet, what to post, how to blog, and other proven strategies. Wiley Publishing.
Sheth, J., 2017. Revitalizing relationship marketing. Journal of Services Marketing, 31(1), pp.6-10.
Garoufallou, E., Siatri, R., Zafeiriou, G. and Balampanidou, E., 2013. The use of marketing concepts in library services: a literature review. Library Review, 62(4/5), pp.312-334.
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