3M Touch Systems UK M00291693 2010

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MKT 4001: Contemporary Marketing Strategy

Seminar tutor’s name : Mark McPherson, Kinnari Pancholi.

Academic Group : Marketing

Name : Manzil Madhwani (M00291693)

Assessment : Marketing Plan Phase 1 (Situation Analysis)

Date: 12th July 2010

Word Count- 1644.

Middlesex University Business School London MA Marketing Management

January 2010 Intake.

3M Touch Systems UK M00291693 2010

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TABLE OF CONTENTS

1. Company Overview.......................................................................3

2. Executive Summary.......................................................................4

3. Competitor Analysis.......................................................................5

4. Environmental Analysis..................................................................6

5. Market Analysis..............................................................................7

6. Customer Analysis.........................................................................8

7. Internal Analysis.............................................................................9

8. References.....................................................................................10

3M Touch Systems UK M00291693 2010

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Company Overview:

3M Touch Systems is a subsidiary from business unit of the 3M Electro &

Communications Business (headquarter, Texas), which is a business group of the

3M Company (headquartered in St. Paul, Minnesota, USA). 3M is a technology

company with more than 35 business units, organized into six businesses:

- Consumer and Office.

- Display and Graphics.

- Electro and Communications.

- Health Care.

- Industrial and Transportation Safety.

- Security and Protection Services.

Its operations are spread in 65 countries and products are sold in nearly 200

countries. It has 75000 employees globally and sales in 2009 were $23 billion. 3M

chose the UK for its first expansion outside America and the UK subsidiary was

formally established in 1951 as the 3M United Kingdom PLC. With head office in

Bracknell, Berkshire, it has 16 locations and 12 manufacturing sites in UK with 3500

employees and 2007 sales exceeded £817 million1.

3M Touch Systems was started in US by 3M acquisitions of Dynapro Thin Films in

2000 and MicroTouch Systems in 2001. The touch screens and monitors lie under

the product categories of Display and Graphics and Electro and

Telecommunications. All the touch screens and monitors are produced at the

manufacturing facility of 3M Touch Systems in Massachusetts (USA) and are

distributed worldwide by 11 sales offices, one of them located in the UK2. 3M Touch

Systems UK Ltd. is located at the headquarters in Berkshire and this subsidiary has

86 employees3. The products offered are multitouch displays, touchscreen systems,

touchscreen displays, touchscreen controllers, touchscreen software and selections

offered under the brand name of 3M Microtouch. It finds applications in gaming

(casino games including single and multiplayer games), retail (digital signage,

embedded kiosks, retail self service), financial (ATM’s and in bank), transportation

(seatback entertainment, ticketing and navigation), entertainment, industrial (process

1 http://solutions.3m.co.uk/wps/portal/3M/en_GB/about-3M/information/about/us/

2 http://solutions.3m.co.uk/wps/portal/3M/en_GB/Products2/ProdServ/

3 http://www.answers.com/topic/3m-touch-systems-uk-limited

3M Touch Systems UK M00291693 2010

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control) and healthcare4. Situation analysis will be carried out in the following

sections of the marketing plan of 3M Touch Systems UK Ltd.

Executive Summary:

Following the company overview, the report will show the situation analysis of 3M

Touch Systems UK Ltd. which will help discover the key issues to be tackled by

strategies.

Competitor analysis shows the market segments that 3M Touch Systems and other

competitors entertain. Positioning of 3M in terms of the market end (high/low) for

particular segment is shown. Key performance indicators according to the latest

available data are shown in two exhibits which display percentage growth margins

and segmented business report respectively followed by success and profitability

factors in the market analysis. Environmental analysis shows the influence that

technological environment. Customer analysis is done by the segments of direct

buyers and intermediate buyers. Finally the internal analysis sums up the current

situation in terms of a SWOT analysis.

Company’s present product portfolio which is an outcome of the diversification

strategy is very promising and there is an opportunity to capitalise on systems

market. Company faces some issues like cheap competition and customer’s

preference of cheap touchsreens for commercial applications.

Competitor Analysis:

The competitor analysis is displayed in Table1. 3M has different competitors

respective to application sectors like industrial equipment applications, touch screens

PC’s, touchscreen monitors and miscellaneous applications.

No. TABLE 1. Competitors separated on the basis of the

customers segments entertained by them Market End

1 Industrial Applications

Low

1.1 NEC Touch Tech 1.2 Impulse 1.3 Nemacom 1.4 Clever Interfaces 1.5 Distek Ltd. 1.6 Protouch UK

4 http://solutions.3m.co.uk/wps/portal/3M/en_GB/TouchSystems/TouchScreen/

3M Touch Systems UK M00291693 2010

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1.7 Dicoll Ltd.

Medium

3M

1.8 Zytronics Plc

1.9 Tyco Electronics

3M 1.1o Honneywell

Hig

h

1.11 Siemens 1.12 Emerson 2 New Windows 7 PC touch

Hig

h

2.1 ACER 2.1 Dell 2.3 HP 2.4 Samsung 3 Touch screen monitors 22" to 52"

Low

3.1 Distek Ltd. 3.2 Nemacom 3.4 G-Vision Touchscreens 3.5 Firebox Touchscreens 3.6 Continental Monitors 3M

3.7 Dicoll Ltd. Medium

3M

3.8 Zytronics Plc

3.9 Tyco Electronics

3.1o LG

Hig

h

3.11 Samsung 3.12 Sanyo 4 Miscellaneous Applications

Low

4.1 NESO 4.2 RDS Displays UK 4.3 U-Touch 4.4 Protouch UK 4.5 Dicoll Ltd.

Med

ium

and

Hig

her

4.6 Zytronics Plc 3M

4.7 Tyco Electronics

4.8 Others

In industrial applications 3M competes with high and medium end suppliers, which

are generally used by high quality and top/ middle end OEM’s as low grade

manufacturers will use the low end screen models. For touch screen experience, it

competes with big PC manufacturers like Acer, Dell, Samsung and HP as they

convert touchscreen monitor buyers into PC buyers. In touchscreen monitors it

competes with LG, Samsung and Sanyo. All the previous three sections make use of

3M Multitouch displays. Various miscellaneous applications like gaming and kiosk

make use of 3M Multitouch systems which have more implications than to merely

display.

3M Touch Systems UK M00291693 2010

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Industry/Market Analysis:

Key performance indicators- Performance for 3M United Kingdom is monitored

against the strategic plan through three key indicators as shown in the table below.

Segmental Analysis by class wise business-

From the total of £45.54 million for Display and graphics, in 2008 £25.3 million were

for 3M Touch Systems product sales, 25% higher from 20075.

Factors for Success-

- Relevant and Differentiated Promise. (Full range of touch screen products).

- Management of Expectations and Experience. (First 10 years of Microtouch

incubation were critical from 2001.)

- Process Alignment

- Common metrics of various businesses.

- Distinctive technological advantage of capacitive touch technology.

Profitability factors and competitive development:

Industry profitability derives from the structure, conduct and performance6. 5 http://www.answers.com/topic/3m-touch-systems-uk-limited

3M Touch Systems UK M00291693 2010

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- Level of competition varies according to the industry segment served by the

particular range of products.

- 3M Microtouch monitors face severe competition from established electronics

brands whereas the 3M Microtouch systems face less degree of competition.

- Different profitability from different segments.

The market for touch screens has grown quietly for years, both in commercial

applications like restaurant point-of-sale systems, credit card signature readers or

automated teller machines, and in consumer devices like global positioning systems

and game platforms7.

Environment Analysis:

Easy-to-use interactive screens that use touchscreen technology are replacing

keypads in several commercial and retail environments as well as government

departments across the UAE8. While demand for touch screens in the UAE is a

fraction of what it is in a single European or American state. Where earlier enquiries

were for 2 or 3 units per customer, now the demand is in the region of 10s or 100s of

units per customer.

Technological and product innovation are the most important environmental factors

in present and coming time as the market has a huge potential and latest upgrades

are necessary as the basic touch screen features are also provided by the local

companies mentioned in Table 1. 3M Company as usual has to show a quick

response to the technologically changing environment and “set” into the current

strategies the aims of coming out with market driving innovative touchscreen

products, as a delay in introduction can lead to a loss of opportunity9.

Customer Analysis:

The customers are segmented on basis of the product portfolio and the market end

(i.e quality and price of the product they purchase). Table 1 shows sections 1 to 4. It

is indicated in each section the market end served by the 3M products for that

application by 3M written in red letters.

6 Porter, M. (1980). Competitive Strategy : Techniques for analysing industries and competitors. The Free Press.

7 http://www.nytimes.com/2008/08/24/technology/24proto.html?_r=2&sq=n-

trig&st=cse&adxnnl=1&oref=slogin&scp=2&adxnnlx=1219557759-dalIEsd0wodH1z5WCcM60w 8 http://www.mul-t-media.com/pdf/pr-masonlite_june2005_eng.pdf

9 http://www.manufacturingnews.com/news/editorials/shor.html

3M Touch Systems UK M00291693 2010

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- Section 1 is for industrial applications. OEM’s include touchscreen interface

for MMI (Man Machine Interface), for machine operators. Each OEM serves to

customers of different level. High quality OEM’s supply equipments to

companies which do afford to buy costly and high quality products.

- For section 2 of Windows PC’s 3M does not make touch screen PC’s, but a

customer buying a touch screen PC would have been a probable customer for

3M if they opted to buy 3M Microtouch monitor to get a touchscreen

experience.

- Section 3 shows that tocuhscreen monitor/display users as customers of 3M

and 3M being towards medium and high end suppliers.

- Miscellaneous applications in section 4 are all customers with customised

requirements of a programmed touchscreen who may be supplied by local

Kiosk developers and either of them could be a potential 3M Touch System’s

customer. Section 4 is a very crucial market with major volume. Typical Kiosk

Manufacturers are shown in Table 2.

- Solution Providers Using touchscreens for devices like games, kiosks, retail seftchecks etc.

3M Touch Systems UK M00291693 2010

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Internal Analysis / SWOT:

Physical resources, financial resources, human resources and intellectual capital,

report no problem in 3M’s six sigma management. Below is the SWOT analysis for

3M Touch Systems UK Ltd.

The SWOT analysis outcomes show the strengths, weaknesses, opportunities and

threats for 3M Touch Systems UK. This will help further in forming marketing

objectives.

3M Touch Systems UK M00291693 2010

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References:

3M UK, (2010) “About us.” (online). Available from:

http://solutions.3m.co.uk/wps/portal/3M/en_GB/about-3M/information/about/us/

(Accessed, 6-7-2010).

3M UK, (2010) “Products and Services.” (online). Available from:

http://solutions.3m.co.uk/wps/portal/3M/en_GB/Products2/ProdServ/ (Accessed, 6-7-

2010).

3M UK, (2010) “Touch Screen.” (online). Available from:

http://solutions.3m.co.uk/wps/portal/3M/en_GB/TouchSystems/TouchScreen/

(Accessed, 6-7-2010).

Manufacturing and Technology News. (2009). “Managed Innovation: 3M’s Latest

Model For New Products.” (online). Available from:

http://www.manufacturingnews.com/news/editorials/shor.html. (Accessed, 6-7-2010).

Mul-t-media, (2005). “PR Masonite.” (online). Available from: http://www.mul-t-

media.com/pdf/pr-masonlite_june2005_eng.pdf. (Accessed, 6-7-2010).

Porter, M. (1980). Competitive Strategy : Techniques for analysing industries and

competitors. The Free Press.

The New York Times. (2009). “Turning point for TouchScreens”. (online). Available

from: http://www.nytimes.com/2008/08/24/technology/24proto.html?_r=2&sq=n-

trig&st=cse&adxnnl=1&oref=slogin&scp=2&adxnnlx=1219557759-

dalIEsd0wodH1z5WCcM60w. (Accessed, 6-7-2010).

3M Touch Systems UK M00291693 2010

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MKT 4001: Contemporary Marketing Strategy

Seminar tutor‟s name : Mark McPherson, Kinnari Pancholi.

Academic Group : Marketing

Name : Manzil Madhwani (M00291693)

Assessment : Marketing Plan Phase 2

Date: 12th July 2010

Word Count- 2919.

Middlesex University Business School London MA Marketing Management

January 2010 Intake.

3M Touch Systems UK M00291693 2010

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TABLE OF CONTENTS

1. Executive Summary.......................................................................3

2. Marketing Objectives......................................................................3

3. Targeting and Positioning...............................................................3

4. Growth Strategies...........................................................................6

5. Competitive Advantage...................................................................7

6. Marketing Mix..................................................................................7

7.Conclusions and Recommendations................................................9

8. Appendix........................................................................................11

9. References.....................................................................................12

3M Touch Systems UK M00291693 2010

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Executive Summary:

Following the situation analysed marketing objectives are set which are SMART

framed (Specific, Measurable, Actionable, Realistic and Time bound). Targeting and

positioning start with the segmentation of the diverse market, which is done based

on the applications, where market nature is considered as important. Particular

segment is targeted and positioned based on the attractiveness. Original examples

from the field are used and are hyperlinked for web reference. Growth strategies

evaluate separately, the growth alternatives for the two main segments of B2B

(industrial and commercial) and B2C (home entertainment/ displays). Competitive

advantages evaluate the advantages gained through the technology benefits and the

appropriateness of the resources in the big corporation. Marketing mix includes

details of PR and internet strategies and their effectiveness in the B2B and B2C

markets. Recommendations are made for the changes in strategies wherever

applicable.

Marketing Objectives:

A company has to select the strategic objective from build, hold, harvest and divest.

Looking at the growth of 25% in one year and considering the increasing market

volume the selection will be to build where the objective is to increase sales and

market share1. The objectives mentioned will ensure that they are specific,

measurable, actionable, realistic and time-bound. One of the objectives will be to

register a growth of 35% in sales of 2010 and achieve a target of minimum £33.75

million for fiscal year. Strategies for capitalization on the core competency held for

technology in „capacitive touch electronics‟, to capture the anticipated market of the

applications. Targeting more intermediate buyers and forming success stories of

multiple order sales to gain higher volume. To win customers in the home

entertainment sector, who can buy the 3M Microtouch monitors for their existing

systems, 3M competes with some established and famous electornics brands.

Targeting and Positioning Strategies:

Market segmentation is the step prior to targeting and positioning. Market

segmentation is the process of identification of consumers and organisations having

1 Doyle P. (1998). Marketing Management and Strategy. (2

nd edition). UK: Prentice Hall.

3M Touch Systems UK M00291693 2010

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similar set of characteristics which derive significant implications for deciding the

marketing strategy2. The nature of market is necessary to understand before

deciding the targeting and positioning strategies. The strategies are different for B2B

markets and B2C markets. The market can be considered as a mixture of business

market and consumer market. Most of the industry applications have an intermediate

OEM (Original Equipment Manufacturers) company using the touchscreens in

making the equipments to their client company. The displays monitors are directly

purchased by home or office clients from the web portal or local distributors. The

commercial sector customers can be either a direct buyer for own use or

intermediate buyer (example: A kiosk developing and manufacturing company using

3M touchscreens in the orders for kiosk, retail selfcheck or library catalogues). As it

is a mixed market the strategies will be combination of various strategies. 3M Touch

Systems has various products and there can be multiple markets for each product.

The application of 3M Touch System‟s products can be in any sectors like gaming,

retail, financial, transportation entertainment, industrial (process control) and

healthcare3. For 3M, each segment can have direct (B2C) and intermediate consumers

(B2B, like dealers and system developers).

Segments Applications

1. Gaming Slot Games (misc.)

Video Card Games (misc.)

Multiplayer Table Games (misc.)

2. Retail Point of Sale (comm.)

Digital Signage(comm.)

Self Service (comm.)

Food Service (comm.)

Hospitality (comm.)

3. Financial ATM's (comm.)

Trading Rooms Terminals (comm.)

In-bank Systems (comm.)

4. Transportation Navigation Devices (misc.)

Ticketing Systems (misc.)

Seatback Entertainment Systems (Monitor)

5. Industrial Manufacturing and Process Controls (industrial)

Food Processing (industrial)

Logistics and Handling Equipment (industrial)

2 Jobber D. (2004). Principles and Practice of Marketing. (4

th edition). Berkshire, UK: McGraw-Hill; Winsten A.

(2004). The Handbook of Market Segmentation. (3th edition). Binghamton, NY: The Haworth Press

3 http://solutions.3mindia.co.in/wps/portal/3M/en_IN/TouchSystems/TouchScreen/

Table 3: End User Segments

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6. Health Care Medical Records Access (misc.)

Pill Dispensing Equipment (misc.)

Bedside Patient Controls (misc.)

Diagnostic Equipment (misc.)

7. Entertainment Amusement Arcade Games (Monitor)

Skill Games (Monitor)

Bar Top Games (Monitor)

Each segment is further fragmented into high end market, middle market and high

end market. The aim is to communicate and capture consumers in the middle and

high end markets.

Target Market Strategy:

The nature of market in terms of number of segments and the diversity of those

segment determined upto a great extent the target market strategy. Appendix 1

shows the types of marketing strategies that are suitable for the different kinds of

market4. A differentiated marketing strategy is required for a market with diverse

segments. Separated marketing mixes will be used for each segment according to

the feasibility and suitability.

Segment Attractiveness and Positioning:

The attractiveness of the segments will also vary. Products each segment too can

belong to a separate area of application, as shown in table 3 indicated by words that

are in „( )‟. Customer‟s power, profitability, market volume and competitors are

different too. The external environment of the targeted industry can also affect the

segment. Miscellaneous and commercial applications mainly make use of

touchscreen systems which will most probably be supplied by some developers who

embed the touchscreens in the equipments like kiosks, game stations and self

checkouts. These system developers decide the parts to be used in the equipment

and they are the key targets. Table 2 will be recalled below to see who such

developers in current practice are as the prospects. If these developers are pursued

on the basis of the quality and

experience of Microtouch brand,

they can lead to generation of

multiple orders example 10 x

3M™MicroTouch™ System

SCT3250EX5 for developing a

touch screen game for casino in

London. It can go even be an order

for 50 such systems for a chain of

casinos.

4 Jobber D. (2004). Principles and Practice of Marketing. (4

th edition). Berkshire, UK: McGraw-Hill

5 http://solutions.3mindia.co.in/wps/portal/3M/en_IN/TouchSystems/TouchScreen/Applications/Gaming/

3M Touch Systems UK M00291693 2010

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Some examples of such existing customers are e-screens6, Display Solutions

Limited7, Innovations in Technology Limited8 and Power Products9. It never means

though that these customers use only 3M screens as they do buy from cheaper

suppliers when applicable. The positioning in this case will be on basis of the

situation will be done on the quality and experience of brand and the target will be for

medium and higher end customers to have profitable margins. Same positioning

applies for the industry segment. The positioning for the touchscreen monitors (not

systems!!) used for house hold entertainment and office interfaces should be based

on quality in relation with the competitors who are mainly big successful and

specialist electronics manufacturers. (Refer table 2 of Phase 1). The relative

positioning should be pushing part innovation into consumer segment. ( monitor for

existing PC).

Growth Strategies:

The strategies are primarily applicable to the industry and commercial segments.

Looking at the variety of applications and innovative uses of touchscreens and the

growing market in last few years (considering the recession proof nature) the product

is in a pure growth stage.

Boston Consultancy Group‟s growth matrix works on the basic logic that many

companies are involved with products in many industries, appendix210. This is the

same case with 3M Touch Systems. The industrial and commercial application

systems are in high growth market (greater than 12%) and high relative market share

it belongs to the „Star‟ and is on the path of growth. The touchscreen monitors

though are in the high market growth rate and they have a lesser market share, so

they belong to „Question Mark‟.

The current strategies can be determined by the use of Ansoff‟s growth strategies in

appendix311. The most applicable strategy relating to the objectives are market

penetration and market development as there is no need of further diversification

because it is highly diversified and there is no need for product development and just

keep with the present pace of innovation. Market penetration can be achieved as

described in the targeting strategy, by enhancing the business relationships with the

6 http://www.e-screen.co.uk/

7 http://displaysolutions.co.uk/?page=news&news_id=52

8 http://www.innovations-av.co.uk/cms.php?op=view&content_type=11&content_id=7

9 http://www.power-kiosk.com/index.php

10 Jobber D. (2004). Principles and Practice of Marketing. (4

th edition). Berkshire, UK: McGraw-Hill

11 Aaker D. and McLoughlin D. (2007). Strategic Market Management. (European edition). Sussex, UK: John

Wiley and Sons Ltd.

3M Touch Systems UK M00291693 2010

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intermediates. Intermediates indirectly facilitate the market development as they use

the touchscreen for customised applications. Also to encourage and enhance the

business relationship with the dealer is a useful strategy for market penetration. For

the touchscreen monitors section too it is the most effective way to penetrate market.

For example: 3M Touch Systems has chosen Midwich Limited as a value added

distributor for its range of MicroTouch LCD Touch Monitors in the UK12.

Competitive advantage:

The resources of the company like physical resources, financial resources, human

resources and intellectual resources are up to the best industrial standards in the

diversified technology company. There is a perfect mix of the resources backing the

product. The mix of people and finance give enough support to the growth strategies.

3M owns the best accuracy capacitive touch technology which is unique to them and

it can be a winning factor in many critical commercial applications relating to finance

industry and sensitive uses in multiplayer games and many other advantages. The

effectiveness and efficiency of the industrial and commercial products, backed by the

capacitive touch technology suggests its capability for sustainable competitive

advantage is in thriving position and 3M will be the first runner in certain applications.

Also 3M follows the NADA system for mounting of the touchscreens into frames of

various kiosks which are universal approved standard which many of the other

producers do not have. In Bowman‟s Strategy clock shown in the appendix 4, the

touchscreen monitors lie in the higher price and low perceived value (comparative)

whereas the industrial and commercial screen belong between the hybrid strategy

zone and differentiation strategy as the perceived usefulness (performance benefits)

are high13.

Marketing Mix:

Branding/Product Strategies: ‘3M Mictorouch’, Brand name of ‘Microtouch’ still in

use.

Product mix has the product line of touchscreens used for various applications in the

segments. For example 5”, 7”, 9”, 11”, 15” monitors and systems for industrial and

commercial applications, 17”, 19”, 21”, 25”, 29” monitors various for touchscreen

12

http://www.itrportal.com/absolutenm/templates/article-av.aspx?articleid=3432&zoneid=61 13

Bowman, C. And Faulkner D. (1995). The Essence of Competitive Strategy, Pretince Hall.

3M Touch Systems UK M00291693 2010

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displays and 32” to 52” touchscreens for miscellaneous applications. The

accessories, controls and software required for the hardware form the product depth.

The brand as a combination of both 3M and Microtouch has specific values attached

to them. 3M stands for quality, support, market success which is general and not

product specific whereas Microtouch stands for innovation, experience in the

technology, first runner in market (started 25 years ago) and these characteristics

are product specific. For industrial applications it is looked upon by the buyers as a

reduced risk strategy to buy the products as the presence of the brand in market

enhances the standardization. At the same time for 3M Microtouch, it helps them to

from a basic platform for slightly premium prices and differentiation from the

competitors. 3M can always target for repeat orders for the touch screen and provide

identification and re-identification of the product/brand through establishing a loyal

customer base. The week products in the home entertainment sector should be

protected by specific strategies against competition to preserve overall brand identity

of 3M Microtouch.

Price Strategies:

From previous discussion of the price issues, different price strategies imply for

industrial/commercial applications. The price basically sets directly into the

positioning strategies of the products relating to different segments. The price is

determined by the cost, target market and product strategy. The price quality matrix

suggest that for the segment of monitors, as compared to the premium positioning

product quality is medium and the price matches the highest and it comes as an

active strategy14. The placement of industrial/ commercial systems seems to be

premium positioning as the price and quality are highest and it also comes as a

passive strategy.

Distribution Strategies:

Midwich, Europe's largest AV distributor and the UK's leading distributor of AV,

digital imaging, computing, displays, printing, consumables and peripherals, will

market the MicroTouch M150 (15") and M170 (17") desktop monitors from 3M

through its IT reseller channel for various commercial and consumer applications.

14 Cravens, D. and Piercy, F. (2006). Strategic Marketing. (8

th edition). NY, USA : McGrawHill.

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The 3M monitors will be sold through professional sales teams based in Midwich's

Head Office in East Anglia. Customers will benefit from a value-added support

package with each monitor sold, including dedicated account management, access

to skilled technical specialists, product training, warranty support, marketing support

and a range of AV installation services. Similar relationships of downward vertical

integration are aimed to develop with the distributors of industrial and commercial

sector.

Promotional Strategies, Internet and Direct marketing strategies:

3M is a big corporation and uses most of promotional tools in the promotion mix, like

internet promotion, direct marketing, sales promotions, advertising, PR

communications and personal selling. Direct marketing, personal selling, and Sales

promotion are more related to the sales process. For 3M Touch Systems UK,

internet promotions and PR will be discussed in details. For advertising, platforms

like internet sites, print media (technology magazines) are mostly used. Most

advertisements are within the technology industry and the expenditures on radio and

television advertisements are very low. But greater focus is on internet promotions.

The consumer segment products are active in social media and trying to engage

consumers. Technology review online magazines are the best utilised platforms for

them. Some of them are politics.co.uk, newsweaver.co.uk, euroinvestor.co.uk,

electornicsweekly.com. The distribution channel activities, the exhibition participation

activities, opinion former review‟s, press releases, customer review articles, new

product launch news, product capabilities and superiorities are displayed on these

kind of websites. Also the banner and picture advertisement is done on internet

using the tagline “Innovations you can touch” which is a very effective message. The

products and innovations are being regularly displayed in the relevant exhibitions.

Conclusions and recommendations:

The market targeting and positioning and the growth objectives are accurately

related to the marketing objectives for the industrial and commercials segment

product ranges. The market penetration is likely to be achieved in the desired

segment of medium and the high end market. Also the strategies aim at market

development and on the basis of change in perceived usefulness and value of the

product in a longer period the market development is favourable. The new

applications and multiple orders will provoke market development. Also the segment

attractiveness is higher and the positioning for medium and high end customers is

appropriate. The prices are in the correct slot according to the positioning. The

internet strategies are very targeted and effective. It helps the overall brand image in

3M Touch Systems UK M00291693 2010

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the customers. The distribution strategies need to be still more impulsive on the

intermediates and they should be gradually converted into loyal. Personal

communications of the advantages and added values of products will help achieving

loyalty in long run.

The market targeting and positioning and the growth objectives are not accurately

related to the marketing objectives for the home/entertainment/touchscreen displays

segment product ranges. The market penetration is unlikely to be achieved in this

segment of medium and the high end market. There is a single application and lack

of multiple orders. Also the segment attractiveness is very low and the positioning for

medium and high end customers is not appropriate. The prices automatically are out

of the correct slot due to the unfavourable positioning considering the competition.

The prices need to be on the lower side as the perceived value in the consumer

market is ought to be lower than the specialist electronics brands. The internet

strategies are not sufficient as the market aimed is broader and television ads and

radio. It presently does not help the overall brand image in the customers. The

distribution strategies need to be impulsive on the direct market, online sales and

placing product in the correct electronic stores which is missing in the distribution

structure. Downward vertical integration is the way to reach the stores and have an

interaction and comparison with the favourite brands of market.

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Appendix:

1. Target Market Strategies.

2. Boston Consultancy Group Matrix.

3. Anzoff’s Growth Strategies.

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4. Bowman’s Strategy Clock.

References:

3M United Kingdom & Ireland, (2010) “About us.” (online). Available from:

http://solutions.3m.co.uk/wps/portal/3M/en_GB/about-3M/information/about/us/

(Accessed on 6-7-2010).

3M United Kingdom & Ireland, (2010) “Touch Screen.” (online). Available from:

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