Marketing Plan for 3M Australia World Market

Question: Discuss about the Marketing Plan for 3M Australia of World Market. Answer: Introduction 3M Australia is an American multinational mining and manufacturing that operates across the world markets. 3M Australia collaboratively utilizes the art of science and technology so as to counter worldwide market barriers as well as raising the customer's welfare. The company seeks to inspire innovation while imparting to real world market sustainable development through environmental protection, corporate social responsibility activities, and igniting progresses in the international economy. Basically, this report is based on the market survey for 3M Australia consumer industry by concentrating on protective coverall product offered by the company in a variety of brands namely protective coverall 4540+ M, protective coverall 4515 M White, and protective coverall 4565 M among many others. The following report provides an analysis of the macro, micro, internal, and SWOT surrounding 3M Australia so as to effectively look for market opportunities available in the business environment un der the consumer industry. Business Environment Analysis First and foremost, before deciding on what marketing plan suits 3M Australia, the marketing consultants need to perform an environmental analysis that comprises of macro/micro/internal business environment, and a SWOT analysis so as to set up objectives for the next financial year (Kotler, 2011). The consumer industry for provision of personal health care, home care and cleaning, and personal safety products is highly competitive. This business environment analysis concentrates on protective coverall product brand offered by 3M Australia, to determine the business success and failure determinants so that the management will take the right actions in launching the marketing program for protective coverall 4565. Macro Environment The political, economic, and technological analysis remains valuable when it comes to analyzing external environment where 3M Australia conducts business in the global market (Palmer, 2012). Macro environmental factors impact significantly on 3M Australia's consumer industry for protective coveralls which get designed under numerous brands. Political-Legal The operations of 3M Australia are governed by strict regulations both at the domestic and international law. Under the consumer industry, the company is expected to adhere to the health standards (Wiedinmyer, Yokelson, and Gullet, 2014). Nevertheless, transformations in law impact on the performance of 3M Australia. For example, the existing environmental protection laws impact on the production process for the company. Economic As per the market analysis, economic depressions and downturns in a particular country have adverse effects on the sales of protective coverall 4565 offered by 3M Australia to the consumer industry. For example, inflation and labor price variances impact negatively on the performance of 3M Australia. Technological Technology plays a vital role in innovation and creativity as required by the company (Skalen and Hackley, 2011). For every initiative taken by 3M Australia in its value chain of production and supply of protective coveralls to the customers, technology remains significant. With the aid of technology, 3M Australia has been steady in embracing new mediums in their marketing approaches. Micro Environment Competitors 3M Australia carries out its operations in a highly competitive market environment with its main competitors being Bostik SA, Sika AG, and Johnson Johnson. To obtain a competitive advantage, the company should design a marketing plan that seeks to address the market needs efficiently. Suppliers 3M Australia depends on providers of raw materials in the manufacture of protective coverall products as demanded by their consumers. The company's bargaining power is high since it has significant economies of scale, and this enables the firm to order large quantities of raw materials. The demand for protective coverall 4565 in the market is very high and this necessitates the establishment of strong links with reliable suppliers. Customers The direct market of the company customers. To meet the needs of the clients, the company manufactures various brands of protective coverall under different codes some of which include: protective coverall 4540+ M, protective coverall 4515 M White, and protective coverall 4565 M among many others. The company ensures that the products are made affordable to the customers. Internal Environment Analysis Management and Organizational Culture The business culture of 3M Australia gets based on best practices that deviate from the past approaches to the relationships between the manner by which things get done within the firm and profitability. The communication strategy is well designed that there is an order of command, and this removes the aspect of confusion in the company's operations (Huang and Sarigollu, 2014). Resources The internal resources of 3M Australia include the human resources, financial, physical, and raw materials. For the company, marketing managers exercise control over all these resources when it comes to conducting the business operations. Financially, the organization is stable (Kotler, 2011). Further, the marketing HR recruits qualified and skilled employees who can handle the available physical resources optimally. Swot Analysis The SWOT analyses studies the strengths and weaknesses that affect the internal operations of a company, and the opportunities and threats avialable in the market for the company to exploit. Defining the global consumer industry guides the management in responding to the market demands for the protective coveralls. Strengths 3M Australia enjoys numerous advantages over its competitors, an aspect that has made the company find its strong base in the world market. The following are the main strengths that have seen the corporation become famous: First and foremost, 3M Australia commands an unyielding brand across the global market. Apart from offering various protective coverall brands to the consumers, the company also offers over 4000 products in different industries. The company has large economies of scale since it sells its product brands in the global markets thus possessing a strong customer base across the globe. Weaknesses Despite the great success experienced by the firm, various deficiencies require to be addressed by the company, some of which include: Reduction of sales values in several nations. Recently, 3M Australia witnessed a negative growth in various key markets including Canada, Mexico, and France. This hinders aggressive marketing for the companies products. Health and environmental problems. The manufacturing process of the business's products releases toxic substances which are harmful to both human and animal health. Opportunities The Australian technologies that have consistently impressed the world markets and thus should develop a digital and social marketing strategy to attain more customers. Since 3M Australia is recognized globally as a successful protective coveralls manufacturer and suppliers, it should use this opportunity to obtain financial support from the creditors in an attempt to diversify its operations. Threats Technological transformations which necessitate the company to be averse on the current trends in the consumer sector (McKenzier-Mohr, 2013). Failure to be sensitive to the changing trends and needs in the market makes the company lose its competitive advantage to the rivaling firms. Stiff competition from Bostik SA, Sika AG, and Johnson Johnson for the world markets customers. 3M Objectives and Goals for the Next 1 Year The companys marketing plan for the next 12 months is launching a new marketing plan for protective coverall 4565 M over which the management has allocated $300,000 to fund the launching process. Among all the companys consumer products, namely abrasives, films, tapes, adhesives, chemicals, advanced materials, and scotches, 4565 M protective coverall has the highest potential to thrive in the global consumer industry for 3M. Marketing Mix Strategy and Marketing Theories Application In anticipating the next financial year plans of effectively launching a new marketing plan for protective coverall 4565 M, all business processes should be in conformity with the set budget of $300,000. As analyzed above on both the current internal and external factors surrounding 3M Australia, this would be helpful in assisting the management in deciding where the company wants to be in the next 12 months. The following is an analysis of the 4Ps marketing mix strategy that the management of 3M should adopt in the creation of a feasible plan for the product brand. According to Palmer, (2012), the 4P marketing strategy integrates the application of marketing theories in an attempt to enhance sustainable development and create a competitive advantage for 3M against Sika AG and Bostik SA. The 3M senior managers seek to launch a feasible marketing plan that will utilize the $300,000 optimally and profitably at the most minimum costs possible. Product First and foremost, the product should be in conformity with consumer demands in the market (Huang and Sarigollu, 2014). The manufacturing department of 3M should ensure production of high-quality protective coveralls of the right quantities. The new product brand to be launched (protective coverall 4565M) should be unique in its name, trademark, colors, shape, labeling, and packaging. Further, the new protective coverall 4565 M to be launched in the following year should have additional attractive features that will enable 3M Australia to gain a competitive edge against its rivaling firms. The company should utilize its large capital base as a strength in designing beautiful products that suit the market demands. Of importance, the financial department of the company should allocate adequate production costs approximately $100,000 to be used in designing the new brand. Maslows Hierarchy of Needs Applicability This theory influences the marketing process of a new product in the market. According to Maslow's theory in 1943, people must satisfy the basic needs before advancing to meet self-actualization needs (Onkvisit and Shaw, 1991). Before launching the new protective coverall 4565 M product brand in the global markets, the management of 3M Australia should first ensure that all the needs of employees and customers within their country of operation are met. Once the demands of clients in the domestic market have been confidently satisfied, the management should then extend the supply of the new product brand to the global markets (Karavdic and Gregory, 2005). Place It is important for the marketing team to ensure that the protective coverall is available from where the target market finds it easier to shop (Palmer, 2011). For example, the use of electronic commerce, online shopping, and mail order supply. The allocated capital for the marketing plan should be used to fund transportation of the product from the area of production to the designated destination where the customers will be able to find access to the product. In this respect, the financial department of 3M Australia should allocate $70,000 to facilitate this process. The identification of the potential customer base si also essential. The new protective coverall 4565 M product brand would seek to meet the needs of both the male and female gender. Therefore, the marketing department should ensure that all locations chosen for customers to access the new product are convenient and suitable for increasing sales. Applicability of Consistency and Extended Self Marketing Theories Based on this theory, the company should ensure a consistent marketing campaign that informs the customers on the current offers in the market as well as the places where they can find these offers (Moller, Koehler, and Stubenrauch 2015). The most valuable rationale of consistency theory for marketers of 3M Australia should come from the point that the company has a strong need to believe that the marketers market the protective coverall 4565 M brand consistently with the social norms in the market. The extended self-marketing theory states that belongings reflect the identity of the owners. Therefore, for 3M Australia to effectively market its new product in the global market, the marketers must understand how the product shapes the identity of the consumers. Price The protective coverall 4565 M should always represent a good value for money. The price of the new product to be launched should be affordable. Further, Skalen and Hackley, (2011) argues that the marketing campaigns should clearly state the after sales services that meet the consumer needs and ensure that every client is happy and loyal to the 3M Australia's protective coverall new brand in the next 12 months. However, the management should ensure that the prices offered for the new product to be launched reasonable such that the company achieves the maximum profits possible (McKenzier-Mohr, 2013). Since the new product to be launched, 4565 M will be offered at different quantities that suit the varying customer needs. Therefore, the financial department should allocate 16 percent of the set budget in funding the pricing strategies. Application of Game Theory 3M Australia should understand that there are numerous sophisticated approaches of summarizing the pricing strategies in the most productive perspective. The key competitors of the company usually overlook the allotment of the budgeted funds when it comes to the pricing strategies ((Karavdic and Gregory, 2005). The fact that the marketing team may not effectively have an apparent certainty of what the competitors as discussed above plan to do in the next 12 months marketing plan, the management should emphasize on making educative guesses to predict this effect. For 3M Australia to launch the new protective coverall 4565 brands, the company must be able to anticipate the competitions next move and integrate it with other marketing plans. Promotion In the current business environment, social media marketing is the key communication tool for an organization (Palmer, 2012). The marketing department of 3M Australia should employ intensive advertising, sales promotion, personal selling, and market roadshow campaigns for the the new product brand to be launched as an addition for the existing protective coverall 4564 M. The marketing orientation theory maintains that for an organization to be successful, the management should determine customer needs and wants and look for means of satisfying them more efficiently than their competitors (Huang and Sarigollu, 2014). In the next 12 months, the marketing team of 3M will get involved in intense market campaigns which will be funded with $80,000. Adequate funding of roadshow campaigns, social media advertising, and sales promotion will enable the company to realize the set goals. Application of Network Marketing Theory The network theory studies the relationship between a business and the customers. The management of 3M should understand that the success of the new product to be launched in the international markets depends on the relationship building approaches. The marketing team should explicitly examine the patterns and motives of the customer base which results in the relationships they establish (Onkvisit and Shaw, 1991). Understanding the motivations and perceptions of the market under different locations plays a significant role for better connecting with the people while promoting the new product brand in the so markets. Conclusion Multinational corporations operate in multiple countries. Currently, the business environment is highly competitive, and this calls the management to come up with marketing plans that seek to create a competitive advantage for their rivaling firms. Effective marketing approaches enable a company to thrive in the marketing environment. An understanding of the internal and external business factors allows the marketing team to come up with the right methods to meeting the market demands. Most companies have chosen marketing and advertisement as the best approaches of entering new markets that raise their profitability scales. 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