Marketing Strategic Business Analysis

Question: Discuss about the Marketing for Strategic Business Analysis. Answer: Introduction This research paper would be helpful in order to develop a marketing plan for 3M Australia in an effective way. This paper would also be valuable to conduct an environmental analysis such as: Macro/Micro/Internal environment, SWOT analysis to understand the internal as well as external factors related to the firm. Along with this, the research paper would also be advantageous to set the goals objectives of the marketing plan for the next 12 months. This paper would also be useful to design the marketing mix for 3M Australia. For this research paper, I would like to select chemical product line or chemical products of 3M to re-launch the product of the firm in an effective and an appropriate manner. Chemical product line of 3M covers approximately 15% of total sales of the firm (3M Australia Pty Ltd. 2016). Along with this, it is well known that, the current regulations of Australia that are associated with the chemical products are very complex. The firm is obliged to work as per th e legislation that also creates troubles for the firm. But, with regard to chemical products, 3M is different from other chemical companies. The main reason behind it is that 3M Australia does not focus only on chemicals but also operates its businesses a small-medium business within the nation. Environmental Analysis Environmental analysis is a strategic process that plays a critical role in order to make out all the external as well as internal elements that may affect the overall performance of an organization. Along with this, in order to conduct an environmental analysis, a business firm performs the Macro/Micro/Internal environment and SWOT analysis in an effective and a more comprehensive manner (Aaker, Kumar and Day, 2008).Moreover, a business firm takes help of competitor and customer analysis tools to conduct Macro/Micro/Internal environment analyses effectively. The environment analysis of 3M Australia is as below: Competitor Analysis: Currently, 3M delivers just about 4,000 products in the marketplace that points out that the firm has an extremely assorted product portfolio with its core business such as: electro communications, graphics display, health care, transport, office equipment, plastics, cleaning chemicals, and so on. Along with this, it should also be noted down that there are a lot of competitors of 3M Australia. For case, Avery Dennison Corporation, Textron Inc, Conmed Corporation, Tyco International Ltd, Balchem Corporation, Honeywell International Inc, etc. are the major competitors of 3M Australia that has created high competition for the firm (3M Australia Pty Ltd. 2016). In addition to this, all of these competitors created pressure to the 3M Australia by operating their business in the global marketplace. Customer Analysis: In the perspective of customer analysis, the industrial users as well as firms are the main target customers of the chemical products of 3M Australia. Along with this, the customers of the firm collect all the information about the products and also make a comprehensive comparison with its competitors before purchasing chemical as well as cleaning from the 3M Australia (Kotler and Keller, 2011). Nowadays, industrial users pay their attention on the quality, costs, and sustainability features of the chemical products.3M Australia understands the needs wants of clients and also provides products according to the requests of the clients. SWOT analysis: A business firm conducts SWOT analysis to find out the strengths, weakness, opportunities and threats that are associated with the firm. The 3M Australia also conducts SWOT analysis in order to capture the opportunities and to reduce threats in an effective and a more comprehensive manner (Ebers and Wied, 2007). The SWOT analysis of 3MAustraliais as below: Strengths Weakness Expanded Business With More Than 4000 Products Strong Leadership Large Team (3M Australia Pty Ltd. 2016). Focus on Innovation Different In Terms Of Revenue Streams High Investments In Research Development Low Growth Rate Continuous Reinvestment Increased Debt (3M Australia Pty Ltd. 2016). Environmental and Legal Issues Affected Image Opportunities Threats Growing Economy E-business Model to Enhance Efficiency Sales (Bhm, 2009). Entrance in New Markets Entrance in New Product Line Global Competitors Unfriendly Environmental Regulations Affect Image Position High Raw Material Cost Low Profit Margin (3M Australia Pty Ltd. 2016). The SWOT analysis indicates that 3M has strong position in the global market place. Along with this, there are a lot of weaknesses of the firm that are influencing the image as well as position of the firm in a negative manner. Moreover, it should also be noted down that, high competitions and strict rules regulations of the nation are also affecting the productivity, profitability, and revenues of the firm (Boone, and Kurtz, 2010). But, it is also observed that there are a lot of opportunities available that the firm must capture to improve its position as well as image and also to accomplish competitive advantages in an effective and an appropriate manner. Objective: It is well know that each and every organization develops its goals and objectives to accomplish the strategic goals of the firm in an effective and a comprehensive manner. Along with this, the objectives provide direction to the firm; so that it can accomplish its desire outcomes in a pre-determined time period. 3M Australia also has its own objectives in order to conduct marketing plan in an effective way (3M Australia Pty Ltd. 2016). The major objectives of the marketing plan of 3M Australia are as below: To improve the level of sales, profit, and market share of chemical product line by 80% in upcoming years To implement innovative marketing strategies in order to attract the global industrial users for chemical product Segmentation, Targeting and Positioning: It is true that every organization decides its target market to promote new products to attract new customers and to retain existing customers in an effective way. Along with this, the below picture is helpful to demonstrate the market segmentation, targeting and positioning map of the company. (Source: Perner, 2008). For this chemical product line, 3MAustralia focuses on different groups of potential customers of chemical as well as cleaner products. Moreover, 3M Australia adopts and uses geographic segmentation strategy in order to accomplish the goals and objectives of the marketing plan and to achieve competitive advantages in an effective and a more comprehensive manner.3M uses the geographic segmentation to make out and target potential consumers in the Australian market (Kim, Song, and Kim, 2009). Along with this, 3M segments Australia market in rural as well as urban areas in order to target the potential industrial users as well as customers of chemical cleaners products in both areas. On the other hand, the 3M Australia positions its chemical units as well as products stores in the industrial areas and industrial locations of major city. 3M also locates chemical units and products stores in some specific chemical industry zones in order to easily reach and to cover potential clients within the nation (Henry, 2008). For that reason, it can be said that, 3M mainly targets the industrial users, offices and home users and also targets all the urban as well as rural industrial areas for the success and growth of the firm. Marketing Mix Strategy Marketing mix illustrates the 4 Ps (Product, Promotion, Place, and Price) of 3M that plays a significant role in order to position chemical products in the target market effectively. Nowadays, 3M has posed itself as a maker of top cleaning chemicals products. Along with this, quality products, simple chemical storage, less waste, etc. are the major features of the products of the 3M Australia (Perner, 2008). The below picture illustrate the main characteristics of positioning strategy of 3M: (Source: Bischoff, 2011). On the other hand, the marketing mix of the firm is described as below: Product: 3M offers automated chemical dispensing and top-performing cleaning chemicals products to its customers. Along with this, the chemical products of 3M are divided into two categories: general purpose chemicals products and specialist chemicals products.3M focuses on the quality and durability of the products. In addition, 3M also manufactures eco-friendly chemical products in order to target the environmental friendly industrial users or customers in a proper way. Price: 3M decides the price of chemical cleaning product as per the market demand of the product. Moreover, 3M mainly focuses on reasonable price to increase the sale of the products in both the urban as well as rural market (Lamb, Hair, and McDaniel, 2008). Place: The 3M Australia situates its manufacturing units as well as stores in the commercial/ industrial areas of each major city in order to cover all the customers in an effective and an ease way. Along with this, 3M Australia should take help of the Internet to attain the potential users of the product. Moreover, 3M also focuses on distribution strategy as well as supply chain management in order to offer the chemical products to the customers at the right time and at the right place. Promotion: The promotion strategy is an important part of the marketing plan that plays a significant role in order to attract and retain customers of the firm. For that reason, 3G should also use the internet and social media sites such as: Facebook, Twitter, LinkedIn, YouTube, and so on to make effective communication with potential customers (Reynolds, and Lancaste, 2013). In addition to this, 3M also creates its position in the market all the way through promoting chemical cleaning products in industrial fairs as well as industrial conferences. Implementation of Plan: Time Schedule: The below table points toward the time schedule that the 3M Australia should follow in order to implement its marketing plan in an effective and an appropriate manner. Task Week 1-2 Week 3-8 Week 9-14 Week 15-25 Week 26-35 Week 36-40 Week 40-48 Week 49-52 Prepare Marketing Plan Environmental SWOT analysis Review of Competitors Customers Evaluation of Market Segmentation, Targeting, and Positioning Implementation of Marketing Plan (Source: Boone and Kurtz, 2014) Budget: The below table designate the budget that the 3MAustralia follow in order to accomplish the goals and objectives that are related to the marketing plan of the firm. Along with this, it should also be noted down that, 3MAustralia need to allocate $300,000 in order to develop marketing plan and budget for the next five years. 1 Year 2 Year 3 Year 4 Year 5 Year Advertising Expenses Expenses Expenses Expenses Expenses Print $5,000 $5,500 $6,050 $6,655 $7,321 Television 5,000 $5,500 $6,050 $6,655 $7,321 Direct Mail or Online 20,000 $22,000 $24,200 $26,620 $29,282 Social Media 5,000 $5,500 $6,050 $6,655 $7,321 Other 1,000 $1,100 $1,210 $1,331 $1,464 Totals $36,000 $39,600 $43,560 $47,916 $52,708 Sales Promotion Trade Shows $2,000 $2,200 $2,420 $2,662 $2,928 Sales Force Promotion 10,000 $11,000 $12,100 $13,310 $14,641 Other 1,100 $1,210 $1,331 $1,464 $1,611 Totals $13,100 $14,410 $15,851 $17,436 $19,180 Total advertising $49,100 $54,010 $59,411 $65,352 $71,887 Total of 5 Years $299,760 On the basis of the above budget that is essential in the implementation of marketing plan, it can be said that, the 3M Australia should focus on online as well as social media advertising in order to target both industrial and home users to promote its chemical products in an effective and a proper way (Payne and McDonald, 2012).Moreover, it is also stated that, the 3M Australia must take help of sales promotion strategies such as: sales force promotion, trade shows, industrial fairs, and industrial conferences in order to promote its cleaning chemical products in the target market and to build its brand in the global market place. Conclusion On the premises of the environmental as well as SWOT analysis of the 3M Australia, it can be assumed that 3M will focus on chemical cleaning products. 3M also develops marketing plan that would be helpful to promote its products and to attract more customers in an effective and a significant manner. Along with this, 3M also faces high competition challenges in the market, so the firm must change its marketing and promotion strategy in order to accomplish positive results and to enhance market share as well as position of the firm in the Australian market. References 3M Australia Pty Ltd. (2016).About Us. Available At: https://www.3m.com.au/3M/en_AU/company-au/[Accessed on 22nd August 2016] 3M Australia Pty Ltd. (2016).Chemicals. Available At: https://solutions.3m.com.au/wps/portal/3M/en_AU/FacilitiesCleaningAPAC/facilities-care-cleaning/Products-Directory/~/Cleaning-Chemicals [Accessed on 22nd August 2016] Aaker, D.A., Kumar, V. and Day, G.S. 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