Marketing Plan Re-Launch Of 3M Scotch Multipurpose Scissors

Question: Describe about the Report for Marketing Plan Re-launch of 3M Scotch Multipurpose Scissors. Answer: Introduction The products of 3M are encountered everywhere and everyday be it the Post-it Notes or the Scotch tape or the Scotch Multipurpose scissors. Most of the historic innovations of 3M are an invaluable part of the peoples lives. The tapes and adhesives add live to your favourite things and mobile phones are held together by them. The multipurpose scissors are great for daily use whether you have to cut a normal piece of paper or cut things in a zig-zag pattern or make other designs. There has been a constant growth in the application as well as the diversity of the consumer products of 3M as technology has grown. This paper will be devising a market plan for re-launching the Scotch Multipurpose scissors for the next one year so that its usage becomes more convenient for the customers. Company Analysis 3M is a multinational company which is famous all of the world for its products and has operations which span across industries. The company manufactures more than 55,000 products including optical films, car care products, medical products, dental as well as orthodontic products, laminates, adhesives, etc. It operates in 65 nations worldwide (Research and Markets, 2016). The multipurpose scissors of the company is made up of sharp as well as hardened blades of stainless steel for giving a better cutting performance. The scissors consists of soft and comfortable grip handles so that it is easier to use. The handles are designed for right as well as left handed users. The scissors are available in three sizes 6. 7 and 8 inches in length, they come in red and grey coloured shades (3M, 2016). The scissors is a part of the stationery goods retailing industry. Industry Analysis and Industry Trends The Stationery Goods Retailing Industry is a very small component in comparison to the retail overall division of Retail Industry. The industry has been subjected to the increase in the competitive pressures as well as threats externally. The long term growth of the industry has been challenged by the increase in the number of alternative retail channels and the online retailers which are also selling items of stationery. There has been a gradual shrinkage in the industry from 2010-2011 onwards (IBIS World, 2016). In the last five years an estimated fall in revenue was an annualised 2.8% as the industry was constantly contending with the external variables. In 2014-15, it is expected that the revenue totalled $787 million in 2014-15 which was 2.4% less than last year. This was mainly because of the low business confidence accompanied by the challenging conditions of trading. The saturation in the traditional core segments of the industry is being partly alleviated by the fashion base d stationery (prweb, 2015). There were significant improvements in the market conditions in 2016. The prospects in the niche segments are relatively brighter. These comprise the customised stationery products along with the fashion-based stationery which is aimed towards the young generation (prweb, 2015). In 2016, the core and the non-core market of office products in Australia is valued at $A12.3 billion at end consumer prices. More design as well as style is needed in the office products and hence the transformation of the market is taking place to include a large range of educational and business products and services. Growth is stronger in the products of art and craft (Penfold Research, 2016). PESTLE Analysis Political Factors The political environment is stable The legal framework is transparent and efficient High degree of certainty Economic Factors The economic growth in Australia is strong in comparison to the most other OECD nations. The GDP of the nation currently is higher than developed nations like France and Germany. The interest rates, exchange rates and employment levels are high while inflation rate is low. Social Factors The demand for the products of a firm is impacted by the changes that occur in the social trends and the individuals willingness and availability for working. Technological Factors New technologies have led to the creation of new products. Costs can be reduced, quality can be improved and new processes implemented resulting in innovation through technology. Such benefits are advantageous to organisations and consumers. Environmental Factors Australia very strictly implements Global Warming polices , so while operating here the firm should consider that its products do not leave any negative impact on environment of Australia. The business practices in Australia are quite environment friendly and the business should participate in various activities that focus on reducing the harm to the environment (Lucintel, 2015). Legal Factors The basic legal framework of Australia consists of taxation policies, employment and recruitment management regulations. The quality of Scissors made by 3M Scotch scissors should be in accordance to the Australian regulations (Lucintel, 2015). Competitor Analysis The concentration level industry is medium which reflects the dominance of the superstores like Officeworks, Staedtler, Staples and Bic that are already established. However, the industry is also quite fragmented as a number of different markets and players are present. The large superstores chains of office supply which get support from billion dollar companies like Wesfarmers exist on one hand while on the other hand, many smaller companies also operate in the niche segments. There are also operators of the small scale which supply specialist products like the multipurpose scissors. The environment in which the industry operates is very competitive and the scissors and other stationery products are made available by an increasing number of the competitors externally like the supermarkets (Coles and Woolworths) and discount departmental stores (Kmart and Big W) (prweb, 2015). Customer Analysis The main customers for the Scotch multipurpose scissors will comprise of the students in different educational institutions who can use it for the purpose of art and craft, it can be used by the homemakers for making different decorative items and also can be used in offices for the purposes of designing, decoration and cutting through multiple layers of cardboard and paper. However, the main customers will be the students attending schools and colleges. SWOT Analysis SWOT analysis is a devise used for the purpose of assisting managers in evaluating the strengths, weaknesses, opportunities and threats that are involved in the business. It helps them in gaining insights into the past and thinking if what can be the possible solutions to the issues that exist or potential issues in a new venture or existing business (Nouri et al., 2008). The SWOT Analysis of the multipurpose scissors reveals the following results Strengths Available in different lengths for the convenience of the customers Made of stainless steel and the colour is attractive Multipurpose can be used for normal cutting and making various patterns. Can be used in office, home and also for art and craft in schools and home. Cut smoothly and through multiple layers Quality of the product is good Sharpness is good Comes with a warranty period of ten years Well established company with diversified business having more than 55000 products in the portfolio in over 65 nations with a strong brand name and thus re-launching the product will be easier Weaknesses The holes for the hand grip in the scissors are very small for the adults Hand strength is lacking Length is quite long On the costlier side Opportunities The niche segments are performing better and slight modifications will make the product better The company has the requisite skills of coming up with innovative products Threats Being a market leader, if even a single mistake occurs, the worldwide brad image is affected Even though a multipurpose scissors, utility for daily use is missing More competitors might enter the market Sales and discounts are expected by the customers Objectives The objectives of the company are to increase the sales of the product in the Australian market and promote the scissors in a better way so that there is enhancement in the companys profitability. This will help in giving the company a strong position in the highly competitive environment that exists globally. These objectives will be achieved by re-launching the multipurpose scissors after making certain modifications in the products so that the grip will improve and both children as well as adults can hold it comfortably. The hand strength of the scissors will also be increased so that people do not have to exert too much force when trying to cut through multiple layers of paper or cardboard. The aim is to increase the market share by means of qualitative growth and fulfil the needs of the customers with innovative products. Target Market The basis if the target marketing use is the premise that the people target have an affinity for the brand that is pronounced. When the marketers highlight this affinity, they are able to meet the desired outcome like the purchasing intent or attitude of the customers with respect to the product or brand. The shared knowledge of culture that the marketing communication displays makes targeting work (Aaker. et al., 2000). The following variables are used for targeting the market - Geographic Segmentation The target market will be consisting of the people from Australia. Demographic Segmentation The target market will consist of the people from both the genders. It will include the office goers, students as well as the homemakers. Thus this segment will comprise the both people who will be using the scissors in offices for business purposes and also the consumers using it at home. Psychographic segmentation The target market will comprise the people who have a liking for art and craft and want to make different patterns with the use of the multipurpose scissors. Behavioural Segmentation The target market will also include the people who like to use an item that can serve a number of purposes and look for value for money. Market Mix Analysis Marketing Mix analysis is important for determining the offer of a product or brand. It consists of product, price, promotion and place (Kotler, 2002). Product The needs of the consumers for a scissors that can serve multiple purposes and is also convenient to use will be the focus of the company. 3M will be emphasising on the fact that the scissors is multipurpose and can be used in schools, in offices and at home. It will also be stressing on the convenience of using the scissors and the modifications that have been made to enhance the strength and also to make the grip more comfortable by increasing the size of the holes. Promotion A mix of above the line as well as below the line promotion will be made. Promotion will be linked to the various purposes that the product will be serving and the new features that have been added. Social media will also be utilised as a platform for promoting the multipurpose scissors. Price Initially the pricing will be cost based in order to attract customers by offering them value for money. This will also ensure that it does not go out of the target customers reach. Place The product will be sold in the retail stores and the retail supermarkets like Coles and Woolworths. It will also be available online in order to ensure that the product is available to the widest possible range of customers. Conclusion New features will be added to Scotch Multipurpose Scissors and then it will be re-launched in the Australian markets. It will target the students, the office goers as well as the homemakers who are looking for a scissors that can serve multiple functions. The products grip and strength will be improved in accordance with the needs of the customers. The marketing mix will also be balancing the four elements related to product, promotion, price and place. The mix will be using both the traditional as well as the modern methods like the social networking sites and internet marketing. This will ensure that the product is able to reach the right customers in a way that is right. References 3M, 2016. Scotch Multi-Purpose Scissors. [Online] Available at: https://www.scotchbrand.com.au/wps/portal/3M/en_AU/ScotchBrand_APAC/Home/Products/Product-Catalog/~/Scotch-Multi-Purpose-Scissors?N=4335+3294529197+3294603652rt=rud [Accessed 6 September 2016]. Aaker., Jennife., Brumbaugh, A. Grier, S., 2000. Nontarget Markets and Viewer Distinctiveness: The Impact of Target Marketing on Advertising Attitudes. Journal of Consumer Psychology, 9(3), pp.127-40. IBIS World, 2016. Stationery Goods Retailing in Australia: Market Research Report. Market Research Report. IBIS World. Kotler, P., 2002. Marketing Management. New Jersey: Prentice-Hal. Lucintel, 2015. PESTLE Analysis of Australia. Lucintel. Nouri, J., Karbassi, A.R. Mirkia, S., 2008. Environmental management of coastal regions in the Caspian Sea. International Journal of Environvironmental Science and Technology, 5(1), pp.43-52. Penfold Research, 2016. Office Products in Australia, 2016-2018 A Market Report (1). Market Report. Penfold Research. prweb, 2015. Stationery Goods Retailing in Australia Industry Market Research Report Now Updated by IBISWorld. [Online] Available at: https://www.prweb.com/releases/2015/04/prweb12642173.htm [Accessed 6 September 2016]. Research and Markets, 2016. Analysis of 3M Company. Marketing Research. Research and Markets.