Marketing Plan: Cube and CubeX 3D Printers
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Marketing Plan: Cube and CubeX 3D Printers

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This presentation shows an idea of a marketing plan for the consumer products of 3D System co. developed for Strategic Marketing and Marketing Plan course. A first evaluation of the product, the ...

This presentation shows an idea of a marketing plan for the consumer products of 3D System co. developed for Strategic Marketing and Marketing Plan course. A first evaluation of the product, the market and the company leads to a SWOT Analysis from which the marketing strategy is derived. The marketing plan is structured in three main objectives that can be achieved by specific actions on the variables of product, promotion and placement.

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    Marketing Plan: Cube and CubeX 3D Printers Marketing Plan: Cube and CubeX 3D Printers Presentation Transcript

    • 3D Printers Strategic Marketing and Marketing Plan 20171, Fall Semester 2013 Master of Science in Marketing Management Università Bocconi Lecturer: Deborah Raccagni Amore Bonapasta Alessandra, Ascoli Martina, Baggini Francesca, Cabrera Santana Santiago, Ferri Marco.
    • Table of Contents 1. Introduction a. Product b. Company 2. Analyze 1. Demand Analysis 2. Competitors Analysis 3. Market Gaps 4. SWOT Analysis 3. Decide 1. Marketing Objectives 2. Marketing Strategy: 4Ps 4. Plan and Budget 5. Appendix
    • Executive Summary This presentation shows an idea of a marketing plan for the consumer products of 3D System co. developed for Strategic Marketing and Marketing Plan course. A first evaluation of the product, the market and the company leads to a SWOT Analysis from which the marketing strategy is derived. The marketing plan is structured in three main objectives that can be achieved by specific actions on the variables of product, promotion and placement.
    • 1.Introduction What are we talking about?
    • Product 3D printers are machines that make threedimensional solid objects of any shape from a digital model. The printing process is additive, which means that successive layers of material are laid down in different shapes. The models can be downloaded from websites associated with 3D printers bands and modified with a simple software available online. Printers upload the model through a simple USB port. Introduction
    • Product Product Life Cycle Introduction
    • Product Introduction Occasion of Usage Professionals Aerospace/Defense Architecture/Geo Arts/Entertainment Automotive Education Healthcare Artists & Designers Prototyping and Object Creation Hobbyists DIY applications Ornamental Objects Board Games pieces and Scenarios Jewelry and Fashion Families Practical Household Application Toys for Kids Personalized accessories
    • Product Introduction What can we work on: Complementary Market Strengths High possibility of future revenues in the cartridges and software market Creative 3D printers allows users to express their creativity by designing and producing a wide range of products. Rapid Technical Development 3D printing industry was born in 2007, but the technology was available since 1984. Every company launches on average one new consumer product. Performance are very easy to improve by the adaptation of other devices existing technology. Social Supported by an online portal where people can share, download, buy and sell 3D models Practical Gives the consumer the possibility of printing objects of practical use personalized and use-specific
    • Company Introduction Research and Production in Switzerland, UK and USA Holding Company Inc. founded in Delaware “No matter what your application, if you can imagine it, you can print it, and we can help.” Subsidiaries in France, UK,Italy, Germany, Netherlands Australia, China, Japan, Korea 44.5% revenues outside US
    • Company Introduction Personal 3D Printers Cube® CubeX®
    • Company Introduction Printing Materials Cube® Focused on usability (plug and play, 25 free designs included, wi-fi connection with computer, simple and free dedicated software) and compact dimensions (26x26x34 cm, 4.3 kg). Max printable size is 14x14x14 cm. The only 3D printer certified for safe-at-home use. 16 supported colors. Prints only one color and one material at the time, but this is true for all consumer 3D printers in its price range. Not very quick: time to print out a chess piece is approximately 90 minutes. Ideal for widespread casual usage. Price: starts from 1399$, it’s in the low price segment of the industry.
    • Company CubeX® Consumer oriented but more professional than the regular Cube. Its direct competitor is MakerBot’s Replicator 2, which has higher processing speed but is slightly less easy to use. Compared to Cube it’s bigger both in hardware dimensions and in printable objects dimensions (27.5x26.5x24 cm, roughly a basketball), supports more colors (18) and has higher print definition. Price: starts from 2799$, in line with the direct competitors with the added benefit of upgradability from one up to three colors. Introduction Printing Materials
    • Company Introduction Cubify Cubify is an online hosting and publishing platform providing simple-to-use apps for content creation, content downloads, cloud printing services, hosting for third parties and Cubify Invent software.
    • 2. Analyze What do we work with?
    • Demand Analysis Potential Demand Market development index= primary demand/potential demand = $ 87 million / $ 1,950 billion= 0.01% 1. Analysis Secondary Demand Market share for consumer goods : 4.4% Total revenues of the company for 3D printers: $126,798 million Revenues for desktop printers: $3,828 million (cube, CubeX). Primary Demand 2012 2013 Growth 2014 Enterprise $325 65% $536 Consumer $87 53% $133 $412 62% $669 Total $288 Growth 43% values in million $
    • Demand Analysis 1. Analysis Consumers Sector Consumer Profile Gender: Male Age: 20-35 years old Education level: Bachelor degree Interests: hacker movement, open source software community maker culture. …from Zoey Poole is an 11-year-old that doesn’t stop doing what she likes to do: making things on the Cube 3D printer! to… “I love to make all sorts of things with my Cube,” she said. Zoey is also thinking about starting a kids club   in her local neighborhood because she wants to get other kids interested in 3D printing. “My favorite creation to make is the shoe because it is just so fun to watch be made. I haven’t tried to design anything on my own yet, but when I do I will let you guys know.”
    • Competitors Analysis 1. Analysis Similar Resources/Products Matrix of Competitors Direct Potential Competitors Makerbot, Ultimaker, RepRap, Leapfrog, 3D Corporation HP, Samsung, Canon, Lexmark, Z Corporation Apple Delta Micro Factory Co. Non Competitors Indirect Amazon & e-commerce DIY alternatives Parts on Demand Similar Needs
    • Competitors Analysis 1. Analysis Direct Competitors MakerBot Replicator 2 $2,199 Creatr $1250 The Ultimaker 2 $1,895 Prusa Mendel I3 $895 Market Share of Desktop 3D printers producers
    • Competitors Analysis Demand Analysis Perceptual Map Sector Analysis
    • Competitors Analysis Abell Map Personalization Usability Benefits (What) Speed Consumers (Who) ArtistsDesigners Makers for selling Bricolageurs Families Technology (How) Compact Desktop Professional 1. Analysis
    • Sector Analysis Demand Analysis Competitors Analysis Buyers Personal 3D Printers Sector Analysis Consumers belong to a wide range of categories, very different one another. Companies have to deal with different necessities, abilities and preferences. Power of retailers: when entering the mass market, 3D printers company might find difficulties in dealing with mass retailers purchasing power. Substitutes The main substitute of the product are parts on demand, which will have a shorter future as soon as 3D printers will become more popular. Another substitute is e-commerce that beats our product in terms of convenience. Industry Rivalry For now the market is not concentrated, it consists in many firms, all with similar characteristics, as well as a great number of smaller startups. Suppliers The products is usually assembled by the company and spare parts are purchased from producers. A very common technology is used so the choice of the supplier is not fully influential to the quality of the machine (low purchasing power). Threat of New Entrants There is a very high risk of new competitors entering the market, especially 2D Printers producers or other technology dealers that already hold a relationship with mass retailers, have a higher investment capacity and own advances R&D resources.
    • Market Gaps 1. Analysis Mkt share= 4.4% Mkt development index = 0,01% The market appears as severely underdeveloped because of the novelty of the product/ technology but also because of the very inclusive criterion for determining the potential demand (every household with a fixed broadband internet conncection worldwide.). Potential Gap =664,875,000 units! The gap between the potential purchase quantity and the actual purchased quantity is the one we have to focus on. This means we need to increase the number of customers. Action levers: -Product: the printing process takes too much time, the assortment of printing materials available to the consumers is too limited, the website has too little traffic and quality content. -Communication: the awareness of the product is too low and the costumers still aren’t familiar with its many possible uses. -Price: too high, but should decrease as production technologies improve Competitive Gap=71,250 units The biggest player are MakerBot and Ultimaker, who had first mover advantage. However we decide to focus on gaining   potential demand since the potential gap is way bigger and more relevant than the competitive one because this is a market that is still in its early development stage.
    • Marketing Objectives What do we aim at?
    • SWOT Analysis 1. Analysis
    • SWOT Analysis 1. Analysis SFAS Table: Analysis of the most influential factors The table summarizes the most critical elements of the SWOT Analysis rated by probable impact on the company strategic position (Column 2) and the company response to that particular factor (Column 3).
    • Marketing Objectives From Analysis to Marketing Objectives From the SFAS table we considered the following relevant factors for building our strategy: W: We a k d i s t r i b u t i o n channel. O: Market Growth and temporary absence of the product in mass retailers. The presence in mass distribution retailers is becoming essential to keep the pace of the g ro w i n g m a r k e t ) a n d gaining share with firstmover-advantage. S: Experience in services and online platforms. O: Long tail economy and expansion of social media. Our online platform needs to be improved to surf the re c e n t t re n d s i n t h e society. W:Low brand awareness O:Expansion of social media and technological development. Communication should be delivered through modern media. The consumer is becoming more familiar with online information research.
    • Marketing Objectives
    • Marketing Objectives Market Penetration Product Development Market Extension Diversificatio n
    • Product Promotion Placement Marketing Objectives How’re we rocking?
    • 1. Product: 2. Plan Our strategy: Positioning /differentiation Evaluation of product, service, brand impact on customer value. work on the augmented product service: We focused on the company online sharing platform because it is a key to move towards the usability of the product as well as brand recognition and gain competitive value.
    • 1. Product: Solutions 1.Get social! Build a follower system and the relative dashboard. Allow the creation of collections. 2.User-Generation! Incentivize free user-generated content through contests and a “most popular” section. 3. Customize! Substitute the current customizing web apps with one like “Customizer” by MakerBot, which is able to handle multiple and user-generated designs. 4. Sort! Testing all the designs for each printer would be costly and time consuming. A way to bypass this problem would be to increase the number of free objects and keep the marketplace and the “free objects” sections separate. The possibility of sorting by dimensions would be an immediate way to distinguish the designs that are printable at home and the ones that have to be cloudprinted.
    • 2.Promotion: e-contest 2. Plan We will organize e-contests every month, both to promote the website and to involve more people in the online community. Each contestant will be able to upload his/her own project that will be evaluated by other users through a rating system. The designer of the best project of the month will win 5 free 3D printer cartridges. This strategy will also stimulate word of mouth and attract new customers.
    • 2.Promotion: e-advertising We aim to create a viral online movement made of short ad videos that can spread product awareness and stimulate curiosity of potential customers. The core element of the ad is a Retrofutristic concept, able to thrill the Generation X and all the sympathizers of the maker movement. Actual and potential users of a 3D printer are technology oriented people, so the main promotional tools are going to be online videos and ads. 2. Plan It’s R Retro etrofu futuris m t in uristic ! spirat i ion fro s based on in pas the id t pop m the per ceptio ea of taki ular c 3D pr ng ult n inting were ure. Conce of the futu scien re ce c p reality fiction, n ommon in ts similar t ow w e see 50s and 6 o didn’ and every 0 th day l t hap pen f ife, s em come s imagi or om to nary p roduc a good nu ething th a mber ts. of oth t er “today is yesterday’s world of tomorrow” We developed a simple add with scenes from Star Trek and Twilight Zone to reproduce a Retrofuturistic theme. The music belongs to Hypnagogic pop often used in Retrofuturistic art works. S a m p l e a d : h t t p s : / / w w w. y o u t u b e . c o m / w a t c h ? v=0GavyqEZ0jg
    • 2.Promotion Fairs and Events Taking part in fairs and business events is important to be up to date with the trends of the sector. It also enables the company to understand the demand and to network. There are several international fairs around the world that present the latests trends in technology and design, which the company should participate to: London, Paris, New York Milan Berlin
    • 2.Promotion Project Evangelist "  "  Four total evangelists are needed: one in the US, one in Japan, one in Germany and one in the Netherlands. By 2015 we they will be also in Korea, UK, Italy, Russia and China. Four marketing directors, one in each country, are needed to handle the project. They’re already employed by the company. The goal is to generate and develop positive w o rd - o f - m o u t h , e s p e c i a l l y i n o n l i n e communities. We want to base in countries where we want to enter in mass retailers but also in countries that we believe have an high growing potential in online sales. Marketing evangelists serve as brand managers. They are responsible for crafting and managing the identity of a brand from beginning to end. Their input will affect research and development, customer service, and marketing, among others. Ultimately, their goal is to create memorable and exemplary experiences for customers.
    • 2.Promotion Cubify4Design “Cubify4Design” is a project aimed at improving the number and the quality of free printable contents on cubify.com and at building a better brand image. It will involve students of high recognition design schools. The students will be asked to upload original designs on the website and will be paid 5€ each (up to a maximum of 25,000€), the designs themselves will be downoadable for free. There will be monthly prizes for the most downloaded files. A CubeX Duo 3D printer will be given for free to each partner school. The company will invest 100,000 € each year to renovate the program.
    • 3.Placement 2. Plan Entering Mass Retailer Distribution: Where? Europe Is a strategic area for our company because here is where our production center of consumer printers is based (Clevedon, England). Europe offers a rich retailing market and short distance between point of sales. Moreover, the interest in design is here widespread and this area leads global trends in the field. Germany and Netherlands: Germany and Netherlands together make about the 20% of Europe total population. Germany’s turnover worths 1/4 of EU total value of high-tech manufacturing and the gross domestic expenditure in R&D is the third of the continent, after the scandinavian countries. Retail sales per year in the area maintain a positive growth despite the economic crisis and consumer’s confidence rate is one of the highest in Europe. Both Germany and Netherlands are known to have prestigious design schools and qualified professional designers, therefore a sensibility for product creation.
    • 3.Placement 2. Plan Entering Mass Retailer Distribution "  "  "  Specialized mass retailer: MediaMarkt stores. Mediamarkt is the most successful specialized retailer in Europe and will allow us to expand also in a big market like Russia. "  Germany: 235 stores "  Netherlands: 25 stores A total of 288 Cube and 108 CubeX Duo in the Netherlands (1st year) and 2592 Cube and 972 Cube X duo in Germany. We will approach Russian market in 2015 and Italian market in 2016 with the same retailer company. Russia is an interesting and growing market for new technologies and Italian market has been showing interest in the product. Cube stores performance High Medium Low Not  considered Total N. of stores CubeX Duo Exposition To sell Exposition Quantity Sold To sell Cube Cube X Duo 60 1 4 1 2 240 120 75 1 3 0 2 225 150 85 1 3 0 0 255 0 40 260
    • Budget 3. Budget
    • Budget 3. Budget Sales values already include production costs and shipping costs, i.e. it is shown the profit of the sales, not the revenues
    • Budget 3. Budget Notes on Budget Selling price online and in-store will be the same, otherwise customers will mostly purchase online, giving no incentive to the retailer in selling the products. Consequently, the company will have an higher margin on online sales. However, selling online requires higher shipping costs for the 3D printers (no economies of scale), while for cartridges the shipping costs will be charged to the consumer Online sales will grow according to the rate of the market, i.e. +50% every year, For cartridges we considered that each of a 3D printer owner will buy one pack per year. We suppose that the costs remain stable for three years, while selling price will decrease in the following years due to increasing competition. We did not include expected inflation because we do not consider it as relevant to our market
    • To know more Makers, The New Industrial Revolution Chris Anderson 14-17 Nov. “Knowledge, modi e mondi nuovi” Museo della Scienza e della Tecnica, Milano