Marketing Strategies For 3Mâ„¢ Crystalline Automotive Films: A Customer Analysis
Company Analysis
Discuss about the Marketing for Apriori Algorithm to Customer Analysis.
3M Company was established in 1902 in lake Superior Town of Two Harbors. Formerly, the company was known to be Minnesota Mining and Manufacturing Company (Solutions.3m.com.au 2016). It is basically a science based company. It manufactures thousands of imaginative products and is the market leader in various products ranging from highway safety and health care products to abrasives products and office products. It is a technological organization, which operates globally and produces innovative products to meet the everyday needs of people. The product, which is chosen for this study is 3M™ Crystalline Automotive Films. It offers high clarity, high technology and performance with premium look for cars. It is used in the windows of cars to reduce heat generation from sunlight within the car. It can reject up to 97% heat producing infrared light of the Sun and reduce up to 60% of heat coming from the Sun (Solutions.3m.com.au 2016). The lifestyle of Australian Citizens is improving day by day with their increasing income. Thus, they are more like to travel by their own car. Here is the scope of 3M™ Crystalline Automotive Films lies, which can provide more comfort to the people, while inside the car.
PESTLE
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PESTLE Analysis of 3M™ Crystalline Automotive Films |
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Political |
· Instable and corrupted political environment of Australia negatively impacts the business of 3M™ Crystalline Automotive Films product · Frequently changing Governmental rules force the organization to run as per Government’s consent · Flexible trade policies of Australia help the organization to sell Automotive Film product globally (Kumar, Rahman and Kazmi 2013) · Increasing tariff and tax imposed by Australian Government has increased the cost of the product |
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Economical |
· Per Capita Income of Australian citizens is highly increasing day by day and thus, it is increasing the purchasing power of the customers. Therefore, the scope of 3M™ Crystalline Automotive Films is increasing gradually within the country (Liao et al. 2014). · The economical condition of Australia is gradually being strong, which is highly positive for the business of the 3M Australia · Increasing inflation rate of the country has ultimately increased the cost of business operation |
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Social |
· Modern and sophisticated lifestyle of Australian citizens led them to use comfortable accessories in their own car, which positively affects the company for this automotive film product · Health consciousness of Australian citizen has also led them to use automotive films in their own car for getting protection from heat generated from the Sun |
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Technological |
· 3M™ Crystalline Automotive Films use unique technology, which can eliminate more heat than darker films · It offers limited-lifetime warranty on the optical film technology, which combines more than 200 layers in one film (Shaw 2012) |
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Legal |
· Improving Laws of Intellectual property has reduced the concern of infringement, which has improved the growth opportunity of the organization · The organization has improved the product design for maintaining safety laws |
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Environment |
· Protection from harmful sun heat · Use environmentally sustainable products |
Table 1: PESTLE of 3M™ Crystalline Automotive Films
(Source: Morgan, Katsikeas and Vorhies 2012)
From the Appendix 1, it can be identified that consumer products’ growth rate of 3M organization is declining. In 2014, the sales have decreased a lot of the previous years. Therefore, Crystalline Automotive Films will increase the amount of sales if it is re-launched with up-gradation.
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3M Australia |
Wfaanz Window Film Association |
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Products |
· Decorating Organizing products · Personal care products · Automotive Products (3M™ Crystalline Automotive Films) · Home Care and Cleaning products · Personal Safety Products · DIY Products · Home improvement products · Office Products |
· Products ranging only Automotive film products (Wfaanz.org.au 2016) |
· Solar Film · Exterior Film · Safety Window Film · Grafftigard · Decorative Films · Privacy Films (Solarshade 2016) |
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Market Share |
· 17% Market Share |
· 21% Market Share |
· 30% Market Share |
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Pricing |
· Price is comparatively higher than Wfaanz Window Film Association |
· Price is comparative lower than Solarshade Window Tinting |
· Price is more or less same as 3M Australia |
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Strength and Weakness |
Strength · High technology · Superior Clarity · Premium look for car · Mobile phone signals · Zero interference with GPS Weakness · High price · Less promotional strategy · Variety of film is less |
Strength · Reduced Energy Bills · Increase privacy · Provide signage and decoration · Minimize Glare Weakness · Lack of variety products · Design of automotive film is not so well |
Strength · High control in temperature · Enhanced comfort within car · Uniform External façade Weakness · Quite high price · Lack of modern technology |
Table 2: Competitor Analysis of 3M Australia for 3M™ Crystalline Automotive Films
(Source: Taleghani, Gilaninia and Talab 2013)
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Factors |
Explanation |
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Current and Potential Customers |
Most of the businessperson and corporate personalities are the current customers of the 3M™ Crystalline Automotive Films. Apart from that, some of well-established service holder people may the potential customers for this product. |
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Usage of Product |
Customers use 3M™ Crystalline Automotive Films to the window of their car for getting protection sun heat and UV rays. It provides enhanced comfort to the car holders, while they are inside the car. Spectrally selective film is designed to keep the car holder keep, cool and protected. |
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Place to purchase products |
Customers can easily go to the stores of the 3M in Australia and buy the automotive film as per their choice. Apart from that, the customers can also order this product through online and get the products to be delivered in their home directly. |
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Reason to select the product |
Customers will select 3M™ Crystalline Automotive Films for its high technology, enhanced comfort within the car and premium look. Apart from that, it reduces up to 97% of heat producing light of the Sun, which is very comfortable for the customers (Morgan 2012). |
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Reason for not purchasing the product |
The high price of 3M™ Crystalline Automotive Films may be the reason for which people may refuse to buy it. |
Table 3: Customer Analysis of 3M Australia for 3M™ Crystalline Automotive Films
(Source: Jiankang 2013)
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Factors |
Explanation |
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Strength |
Factor 1: Strong brand awareness attract huge customers Factor 2: Global reach in almost over 65 countries has improved the sales volume of the product Factor 3: Robust position with having huge cash and increasing performance |
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Weakness |
Factor 4: Environmental issues sometimes hamper the brand image Factor 5: Being the leader in market, one single mistake can destroy the image worldwide |
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Opportunity |
Factor 6: Increasing success of Automotive industry seems to be the opportunity for the product Factor 7: Global reach of the company will increase the potentiality of organizational expansion |
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Threats |
Factor 8: Intense market competition is leading to saturation stage for this particular product (Oly Ndubisi 2012) Factor 9: Tough competition is forcing the organization to sell innovative automotive film in lower price Factor 10: New entrant in this segment creating tough competition Factor 11: Car manufacturing company oftentimes creating their own automotive films |
Table 4: SWOT Analysis of 3M Australia for 3M™ Crystalline Automotive Films
(Source: Li, Song and Collins 2014)
Figure 1: Positioning Matrix with SWOT
(Source: Created by Author)
Objectives
Objectives of 3M Australia for 3M™ Crystalline Automotive Films demonstrate the managerial commitment to achieve specific results. The management of the organization has set some specific objectives in terms of both quality and quantity, which are to achieve within certain period. The organization has some set sales and promotional objectives for automotive film products to increase the profit level.
- To attain 20-25% return in equity
- To achieve 25% return on capital invested
- To attain 12% growth on earning per share
- Aggressive market campaign to promote the product
- Frequent discounts on early booking of automotive film
- Huge online promotion through online media channel
- To meet the customized demand of the customers
- To hold the market position for longer times
- Diversifying the variety of the product
The target market analysis will clearly demonstrate the customer segment for re-launching 3M™ Crystalline Automotive Films of 3M Australia.
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STP of 3M Australia for 3M™ Crystalline Automotive Films |
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Segmentation |
Demographic · Age: 25-60 · Income: AU$ 800 to above (per month) · Gender: Includes both male and female customers · Occupation: Businesspersons, corporate persons and high service holders · Geographic · The product will be sold to worldwide customers · Mostly the product will be sold to urban people Psychographic · People with modern lifestyle will be selected for 3M™ Crystalline Automotive Films · People impressed with strong brand image will the customers for the product Behavioral · People seeking extra benefit for the car accessories will be the customers for this product |
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Target |
· Both young and old age customers will be the customers for this products · Specifically high income group having established business and good job will be selected as customers · People, who are loyal to the brand image will be the customers of the product · Worldwide people will be the customers of the product |
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Positioning |
· Premium looks of the automotive film will attract the customers · Zero interference with GPS will be extremely beneficial for the customers · Reduced price for the product will increase the customer volume level · Certain specific discount on the product will highly attract the customers |
Growth Rate and Market Size
Figure 2: Customer segmentation of 3M Australia 3M™ Crystalline Automotive Films
(Source: Created by Author)
In order to increase the value of 3M™ Crystalline Automotive Films to the customer, 3M Australia has decided to re-launch it. The marketing plan for re-launching 3M™ Crystalline Automotive Films of 3M Australia will be demonstrated through the following marketing mix:
Product
The organization will increase the variety of automotive film to meet the customized needs of the customers. It will offer clear breakthrough of automotive solar protection. One of the major incorporation for this product will be metal-free body, which will be long lasting and easy to maintain. Apart from that, the product will be re-designed in such way that will reduce the reflectivity as compared to traditional film.
Price
Due to high price of the product, the organization has started to lose many medium income group customers. Therefore, in the revised marketing plan, the organization will reduce the price level of the automotive film. Apart from that, the organization will use price penetration strategy for grabbing huge customer group with initially keeping the price low.
Place
The organization will try to increase the global reach in terms of its operation base. Effective distribution network will be used for increasing sales value for the product. The customers will be easily able to buy products at the stores of the organization. Instead of only selling the product in urban area, the organization will also try to sell it in some developing rural areas.
Promotion
Aggressive market campaign will be arranged to directly communicate with the customers and make them realize the benefits of the products. The organization will strongly use the media advertising for reaching mass customers. Apart from that, social media advertising will be the completely new incorporation in promotional strategy.
Figure: Marketing Mix of 3M Australia 3M™ Crystalline Automotive Films
(Source:)
Conclusion
While concluding the study, it can be said that 3M™ Crystalline Automotive Films has huge scope with the increasing modern life style of the worldwide customers. However, instable and corrupted political situation negatively hampers the product. The main competitors for this particular product of 3M Australia are Wfaanz Window Film Association and Solarshade Window Tinting. Businesspersons and corporate personalities are the major customers for this product, as use their own cars for travelling. In order to re-launch the product for increasing its value, the organization will enhance the variety of automotive films. Apart from that, the organization will also reduce the price level of the products.
Reference List
Jiankang, M., 2013. Application of Apriori Algorithm to Customer Analysis.Information Technology Journal, 12(21), p.6497.
Kumar, V., Rahman, Z. and Kazmi, A.A., 2013. Sustainability marketing strategy: an analysis of recent literature. Global Business Review, 14(4), pp.601-625.
Li, H., Song, W. and Collins, R., 2014. Post-event visits as the sources of marketing strategy sustainability: a conceptual model approach. Journal of Business Economics and Management, 15(1), pp.74-95.
Liao, C.N., Hung, J.Y., Kao, H. and Wu, C.J., 2014. Marketing strategy model: A conceptual framework for micro-enterprises. Human Systems Management, 33(4), pp.199-206.
Morgan, N.A., 2012. Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), pp.102-119.
Morgan, N.A., Katsikeas, C.S. and Vorhies, D.W., 2012. Export marketing strategy implementation, export marketing capabilities, and export venture performance. Journal of the Academy of Marketing Science, 40(2), pp.271-289.
Oly Ndubisi, N., 2012. Relationship quality: upshot of mindfulness-based marketing strategy in small organisations. International Journal of Quality & Reliability Management, 29(6), pp.626-641.
Shaw, E.H., 2012. Marketing strategy: From the origin of the concept to the development of a conceptual framework. Journal of Historical Research in Marketing, 4(1), pp.30-55.
Solutions.3m.com.au. 2016. 3M Australia Businesses. [online] Available at: https://solutions.3m.com.au/wps/portal/3M/en_AU/about-3M/information/about/businesses/ [Accessed 16 Sep. 2016].
Solutions.3m.com.au. 2016. 3M Australia Businesses. [online] Available at: https://solutions.3m.com.au/wps/portal/3M/en_AU/about-3M/information/about/businesses/ [Accessed 16 Sep. 2016].
Taleghani, M., Gilaninia, S. and Talab, S.M., 2013. Market orientation and business performance. Singaporean Journal of Business Economics and Management Studies, 1(11), pp.13-17.
Wfaanz.org.au. 2016. Window Film Association of Australia and New Zealand. [online] Available at: https://www.wfaanz.org.au/ [Accessed 16 Sep. 2016].