3M Company Analysis - Research Paper Example

? 3M Company Analysis Table of Contents Table of Contents 2 Introduction 3 3M’s Brand and its message to the s 3 Logo and slogan 4 Brand’s Targeted Customers 5 Company’s Sub Brands and Management 6 Competitors of 3M 7 Company’s Present Brand Promotion Strategy and Brand Communication 7 Brand Promotion Strategy 7 Market Communication Strategy 9 Suggested Brand strategy 9 Works Cited 11 Name of the Student: Name of the Professor: Name of the Course: Date: Introduction The 3M Company was formally named as Minnesota Mining and Manufacturing Company. It is a multinational corporation headquartered in Minnesota, United States. It was founded by five businessmen in the year 1902. The company had an annual sale of $ 29.6 billion in the year 2012. It employs more than 84000 employees all throughout the world. The company produces more than 55000 products which include adhesives, laminates, abrasives, dental products, fire protection, medical products, electronic materials, car care products, electronic circuits, optical films etc. The company operates in 65 countries. Its products are available in approximately 196 countries through retailers and distributors. Many products are also available online and can be purchased directly by ordering on the company’s website. 3M’s Brand and its message to the customers Brand is the term, name, symbol, design or some other feature which helps in the identification of a company’s products or services. Branding is a strategy adopted by the companies for differentiating their products from the competitors through a distinctive symbol. The brand is the most valuable and useful asset of a company. 3M is a new appearance for the Best Global brands in the year 2010 mostly because of a series of vast acquisitions which have provided the company a new and innovative brand identity system (3M, “3M Makes Interbrand’s List of Best Global Brands 2013”). This new brand identity has helped the company in unifying its diversified business. It has boosted the brand awareness of the company. Defining as well as strengthening of the 3M brand lying within the fragmented market area and increasing portfolio of global acquisitions has been very challenging. The goal of the company from the perspective of strengthening its position and brand in the market lies in two steps (3M, “Reinvigorating the Brand, Driving Growth”). The first step is by making the company an industry leader and the second step is by communicating to the customers about the company’s ability to become end to end security provider. The brand identity system of the company have been enhanced recently for delivering the brand essence in more appropriate manner and positioning the brand and its value propositions throughout the world (3M, “Brand Identity in Action”). This new brand identity strategy has helped the company in differentiating 3M from its competitors and communicating a consistent and strong message to the key audiences. Logo and slogan Logo and slogan are the key elements of the brand positioning strategy. An effective brand positioning strategy always includes a visual identity i.e. logo and a tagline or a positioning statement i.e. the slogan. 3M’s logo is unique and communicates an appealing identity to the targeted audiences. The 3M Red Logo of the company is vertically as well as horizontally centred and covers almost 1/3rd of the total width of the screen. The background of the logo is white for enabling maximum readability (“3M Logo Animation and Soundmark”). The company has launched an animated video of the company’s logo where a sound mark is also available so that it can be used in pertinent applications (for example- online spots, television spots, videos etc.). 3M’s slogan is a short and impressive catch phrase, motto or tagline which has helped in identifying its products in advertisements. The business slogan which is most associated with the company is ‘Innovation’. The mission statement of the company is to be committed in active contribution to a sustainable development by means of social responsibility, environmental protection and economic progress. Thus the sustainable strategy of the company is based on three main principles: social responsibility, environment stewardship and lastly economic success (3M, “2013 Sustainability Report”). It delivers the message to the customers that apart from providing innovative products, the company aims at making an environmental friendly and socially responsible society. By the demonstration of global leadership along with the powerful principles, 3M has successfully delivered its mission statement to the customers. The focus on becoming socially responsible by the company involved meaningful, deep conversation with the external as well as the internal stakeholders to ensure that it is performing its operations ethically and responsibly and strengthening its leadership position within the sustainability operations. The focus on maintaining environmental stewardship provides guidance to the company’s manufacturing processes, means of distribution and design ethic. The focus on achieving economic success has enabled the company in creating innovative and impactful sustainable solutions. Brand’s Targeted Customers 3M offers more than 50000 products to the customers including adhesives, laminates, abrasives, dental products, fire protection, medical products, electronic materials, car care products, electronic circuits, optical films etc. Thus it provides a wide range of products which are useful for all sections of the society. Thus the company targets almost all the sections of the society. Company’s Sub Brands and Management 3M brand is trusted and recognized all around the world. The household brands, which are market leaders, are the sub brands of the company. Some of the sub brands of 3M are: Command Nexcare™ Post-it® Scotch-Brite™ Scotchgard™ Scotch® Scotchprint Filtrete ACE™ Tegaderm™ 3M has taken a strategic and effective long term approach, which consists of a systematic framework (known as brand management), for the selection, implementation and control of the sub brands and enhance the market performance. This framework includes a series of processes including selection, introduction and fortification of the brand concept. The framework also helps in guiding the positioning strategy and strengthening the brand image of the company at every stage. It provides clarity to the management of sub brands and implementation of successive stages help in increasing the customer loyalty and their involvement or engagement with the brand. The success in 3M’s brand management concept has increased the efficacy and efficiency of the brand positioning strategy in the competitive environment. Competitors of 3M The top competitors of 3M are: 1) Bostik, Inc. 2) Johnson & Johnson and 3) Sika AG. The brand offering of Johnson & Johnson is backed by the efficiency of its brand positioning and brand positioning strategy (“Our Family of Brands”). The company’s brand promises to enrich the health of the customers. The branding of Sika AG gives the company’s products a different identity and relates them with particular set of values (“Brand”). Bostik, Inc. is a world leader in the production or manufacture of sealants and adhesives (“About Us”). However, the product offerings of 3M is wide as compared to its competitors and the strong brand positioning and brand promotion strategy has made it one of the most trusted and recognized company around the globe. Company’s Present Brand Promotion Strategy and Brand Communication Brand Promotion Strategy 3M assures to its customers that it performs all the business operations ethically and socially responsibly. The mission statement of the company delivers the message that it focuses on the sustainable development by focussing on the social responsibility, environmental stewardship and economic success. The company publicly states that it does not only focus on the profit maximization, but it also ensures that it performs all its operations staying environment friendly and socially responsibly. Thus, it maintains its responsibility towards the customers, society and the environment. The perception as well as the appreciation of the company’s customers is the result of this responsibility and behaviour of the company towards the external stakeholders. This has strengthened the brand image of the company. Customer Perception Map Attribute 3M provides ethical assurance to its stakeholders. This helps in creating a level of confidence and trust of the customers on the company. Functional level benefits 3M ensures to the customers that it provides quality products to them and keeps their interest in the first position. This has increased the reliability and the brand loyalty of the customers. Psychological Level The customers of the company are satisfied that their preference and interest is kept in 1st position. The maintenance of customer’s value has helped the company in strengthening its brand positioning strategy. Market Communication Strategy Marketing communication strategy is very essential for explaining all the important components in the communication matrix. Four essential cornerstones in integrated marketing communication are: Advertising, b) Direct Promotion, c) Public Relations and finally d) Sales Promotions. Advertising strategy is most commonly used by the companies in order to create awareness among the customers by means of television, radio, different print advertisements etc. Sales Promotion creates awareness, about the products, among the targeted customers by offering to them free sample distribution, in-store displays, free gifts etc. Public relationship strategy includes promotional activities like trade shows, public events, editorials, newspapers etc. 3M focuses on the strategy of advertising strategy. Advertising strategy has acted as a powerful tool for delivering key messages like its reinforcing unique personality and brand promise among all the customers. The advertising influences and persuades the customers with an emotional approach. 3M’s online website helps in delivering its mission statement and increasing its brand identity and demand around the globe. Advertising strategy of the company includes direct mail, television, radio etc (“Advertising”). The other market communication strategies implemented by the company are email marketing, social media marketing, various promotional programs etc (“Marketing & Communications”). Suggested Brand strategy 3M should focus on developing intimate and long term relationship with the customers by performing all the business operations ethically and responsibly and providing innovative products. The brand management concept should focus on the ideas of transparency, flexibility and simplicity. The company’s website should reflect its positioning in order to generate awareness about the brand and its identity among its customers. An effective brand positioning strategy increases the customer loyalty and decreases the likelihood of the customers to switch to another brand. The brand position strategy should develop a customer-centric value proposition which will provide the customers with a convincing reason in buying the focal brand. It should convey detailed information about the new brand positioning and management strategy to the employees. A presentation of the new brand position strategy should be made for introducing the strategy to the employees of the company in such manner that it reflects the brands authenticity. Segment Age Group Annual Income Level Psychology Education 1 18-24 >$ 25000 The decision of this age group is influenced by social trends. They do not make their purchasing decisions based on the concept of ethical trading. They seek high school level and college level of education. 2 25-38 $25000-$65000 This age group understands the advantages of ethical trading. This group demands quality and innovative products and are ready to give extra money for buying such products. They seek Master level of education. 3 39-70 >$ 65000 This group purchases products in order to portray self image in the peer group. Education level has no influence in the buying decision of this age group. 3M should target the customer segment 2 for implementation of the new brand positioning strategy. This segment with high income will provide great satisfaction to the company by making high investment. Works Cited “3M Logo Animation and Soundmark.” 3M. 3M, 2013. Web. 10 July 2013. “About Us.” Bostik. Bostik, Inc., 2013. Web. 10 July 2013. “Advertising.” 3M. 3M, 2013. Web. 10 July 2013. “Brand.” Sika. Sika Group, 2013. Web. 10 July 2013. “Marketing & Communications.” 3M. 3M, 2013. Web. 10 July 2013. “Our Family of Brands.” Johnson & Johnson. Johnson & Johnson Inc., 2013. Web. 10 July 2013. 3M. “2013 Sustainability Report.” 3M. 3M, 2013. PDF file. 3M. “3M Makes Interbrand’s List of Best Global Brands 2013.” 3M. 3M, 2013. PDF file. 3M. “Brand Identity in Action.” 2013. 3M. 3M, 2013. PDF file. 3M. “Reinvigorating the Brand, Driving Growth.” 3M. 3M, 2013. PDF file. Read More