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3M Fast & Innovative: increasing 3M brand awareness and growth rate in C&M (electrical) market<br />Changellenge >> Cup Ru...
CVs<br />
Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
Sales increase in each sales segment might be achieved through mix of different marketing channels<br />Goal<br />Strategy...
Internet marketing channel is powerful as traditional advertising<br />
Friends and expert opinion are top factors in buying decision<br />
Personalized marketing is the only way to increase Brand power and Sales<br />
There are certain group of marketing campaigns based on sales segment and personalization priority<br />B2B<br />
There are certain group of marketing campaigns based on sales segment and personalization priority<br />B2B<br />Governmen...
There are certain group of marketing campaigns based on sales segment and personalization priority<br />B2B<br />Governmen...
What do we need to do for client/customer to decide to buy?<br />LifeTime<br />CLIENT<br />Buy to<br />3M brand<br />Loyal...
Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />G...
Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />G...
Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />G...
Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />G...
Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />G...
B2B initiatives<br />Appropriate<br /> products<br />Risk <br />associated<br />Risks<br />Mitigation<br /><ul><li>High pr...
Develop a program of visits to targeted industry forums
Preliminary acquaintance with the forum participants before the meeting</li></ul>Non-personalized B2B forums, exhibitions,...
High price with low result
Low tutors performance
Permanent mentor for staff exchange
Put in charge of seminars most experienced people</li></ul>Battery Material<br />Battery Material<br />Storage Interconnec...
Government initiatives<br />Risk <br />associated<br />Appropriate products<br />Risks<br />Abrasives for Electronics Fini...
Participate in as many tenders as possible.
Co-operate in tenders with Russian firms
Finding key people to reach the contract
Risk of default on government contracts
High barriers of the corruptions to enter</li></ul>Chemicals for Electonics Markets<br />Chemicals for Electronics Markets...
No benefits from charity programs to 3M
Putting more experienced people in charge of developing
Better planning of the charity programs.</li></ul>Charity programs<br />8%<br />Touchscreens<br />
Retail initiatives<br />Appropriate<br /> products<br />Risk <br />associated<br />Risks<br /><ul><li>Negative attitude fr...
Incomplete understanding of the capabilities of the 3M product</li></ul>Mitigation<br />18%<br /><ul><li>Client relationsh...
Personalized comprehensive  trainings for experts</li></ul>Promotion through experts<br />Tapes and Adhesives<br />Aerosol...
Better marking planning
Low response rate
Low networking effect due to lack of understanding</li></ul>Touchscreens<br /><ul><li>Monitoring of client’s development p...
Low impact and low cash flow</li></ul>Aerosols, Sprays & Coating<br />4%<br />Interconnect Solutions<br /><ul><li>Low resp...
Effect of damaging our brand image
Better marketing budget planning</li></ul>Packaging Bags<br />Joint mass media campaigns with TV, Magazines<br />Battery M...
Non effective marketing budgeting</li></ul>Traditional marketing (advertising)<br /><ul><li>Better marketing budget planning
Choosing most trustworthy promotion companies </li></ul>13%<br />Static Control<br />Aerosols, Sprays & Coating<br />Touch...
Segment strategy leads to reprioritization of marketing segments towards campaign, which increases brand awareness and bra...
Strategy applies both recurring and region targeted campaigns<br />Recurring<br />Successive<br />B2B<br />Government<br /...
Central<br />2011<br />2012<br />2013<br />2014<br />2014<br />1<br />- Priority level<br />- Recurrent initiative<br />- ...
Northwest<br />2011<br />2012<br />2013<br />2014<br />2014<br />1<br />1<br />- Priority level<br />- Recurrent initiativ...
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  1. 1. 3M Fast & Innovative: increasing 3M brand awareness and growth rate in C&M (electrical) market<br />Changellenge >> Cup Russia 2011<br />CaseMonsters<br />Moscow, April 2011<br />
  2. 2. CVs<br />
  3. 3. Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
  4. 4. Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
  5. 5. Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
  6. 6. Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
  7. 7. Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
  8. 8. Agenda<br />Metrics view<br />Marketing campaign mix <br />Sales increase<br />Sales segment view<br />Product view<br />
  9. 9. Sales increase in each sales segment might be achieved through mix of different marketing channels<br />Goal<br />Strategy<br />Marketing efforts &<br />initiatives<br />Sales increase <br />impact<br />B2B<br />B2B<br />Sales increase through effective marketing investments in three areas to reach growth rate of 50% for 2 years, then 25% in at least 3 following years<br />C&M Segment Strategy<br />Government<br />Government<br />Retail<br />Retail<br />
  10. 10. Internet marketing channel is powerful as traditional advertising<br />
  11. 11. Friends and expert opinion are top factors in buying decision<br />
  12. 12. Personalized marketing is the only way to increase Brand power and Sales<br />
  13. 13. There are certain group of marketing campaigns based on sales segment and personalization priority<br />B2B<br />
  14. 14. There are certain group of marketing campaigns based on sales segment and personalization priority<br />B2B<br />Government<br />
  15. 15. There are certain group of marketing campaigns based on sales segment and personalization priority<br />B2B<br />Government<br />Retail<br />
  16. 16. What do we need to do for client/customer to decide to buy?<br />LifeTime<br />CLIENT<br />Buy to<br />3M brand<br />Loyalto<br />3M brand<br />Trust<br />3M brand<br />Aware about<br />3M brand <br />Total population of Russian Federation 142 mln. people <br />For maximizing client base 3M have to increase <br />each of the 4 transitive categories<br />
  17. 17. Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />Government<br />Medium<br />Low<br />None<br />Sufficiently high<br />Absolute<br />Initiatives & Marketing campaigns <br />for each Segment<br />Non-personalized B2B forums, exhibitions, magazines<br />Personalized B2B professional seminar, exchange programs, communities<br />B2B<br />Government<br />Joint (innovation) government programs<br />Charity programs<br />Promotion through experts<br />Education & Internet<br />Co-branding with Client<br />Joint mass media campaigns with TV, Journals<br />Traditional marketing (advertising)<br />Retail<br />
  18. 18. Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />Government<br />How it will increase metrics?<br />Medium<br />Low<br />None<br />Sufficiently high<br />Absolute<br />Brand awareness<br />Initiatives & Marketing campaigns <br />for each Segment<br />Non-personalized B2B forums, exhibitions, magazines<br />Personalized B2B professional seminar, exchange programs, communities<br />B2B<br />Government<br />Joint (innovation) government programs<br />Charity programs<br />Promotion through experts<br />Education & Internet<br />Co-branding with Client<br />Joint mass media campaigns with TV, Journals<br />Traditional marketing (advertising)<br />Retail<br />
  19. 19. Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />Government<br />How it will increase metrics?<br />Medium<br />Low<br />None<br />Sufficiently high<br />Absolute<br />Brand trust<br />Brand awareness<br />Initiatives & Marketing campaigns <br />for each Segment<br />Non-personalized B2B forums, exhibitions, magazines<br />Personalized B2B professional seminar, exchange programs, communities<br />B2B<br />Government<br />Joint (innovation) government programs<br />Charity programs<br />Promotion through experts<br />Education & Internet<br />Co-branding with Client<br />Joint mass media campaigns with TV, Journals<br />Traditional marketing (advertising)<br />Retail<br />
  20. 20. Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />Government<br />How it will increase metrics?<br />Medium<br />Low<br />None<br />Sufficiently high<br />Absolute<br />Brand trust<br />Brand awareness<br />Sales increase<br />Initiatives & Marketing campaigns <br />for each Segment<br />Non-personalized B2B forums, exhibitions, magazines<br />Personalized B2B professional seminar, exchange programs, communities<br />B2B<br />Government<br />Joint (innovation) government programs<br />Charity programs<br />Promotion through experts<br />Education & Internet<br />Co-branding with Client<br />Joint mass media campaigns with TV, Journals<br />Traditional marketing (advertising)<br />Retail<br />
  21. 21. Metrics are differently influenced by each type of marketing campaign. It leads to many options of segment strategy<br />Government<br />How it will increase metrics?<br />Medium<br />Low<br />None<br />Sufficiently high<br />Absolute<br />Brand trust<br />Brand awareness<br />Brand loyalty<br />Sales increase<br />Initiatives & Marketing campaigns <br />for each Segment<br />Non-personalized B2B forums, exhibitions, magazines<br />Personalized B2B professional seminar, exchange programs, communities<br />B2B<br />Government<br />Joint (innovation) government programs<br />Charity programs<br />Promotion through experts<br />Education & Internet<br />Co-branding with Client<br />Joint mass media campaigns with TV, Journals<br />Traditional marketing (advertising)<br />Retail<br />
  22. 22. B2B initiatives<br />Appropriate<br /> products<br />Risk <br />associated<br />Risks<br />Mitigation<br /><ul><li>High price with low result
  23. 23. Develop a program of visits to targeted industry forums
  24. 24. Preliminary acquaintance with the forum participants before the meeting</li></ul>Non-personalized B2B forums, exhibitions, magazines <br />5%<br />1230 Fire Protection Fluid<br />1230 Fire Protection Fluid<br />Cable Assemblies <br />Packaging Accessories<br />Input/Output Connectors <br />Risks<br />Mitigation<br /><ul><li>Blight Equipment
  25. 25. High price with low result
  26. 26. Low tutors performance
  27. 27. Permanent mentor for staff exchange
  28. 28. Put in charge of seminars most experienced people</li></ul>Battery Material<br />Battery Material<br />Storage Interconnects <br />Personalized B2B  professional seminar, exchange programs, communities<br />15%<br />Packaging Accessories<br />Touchscreens<br />
  29. 29. Government initiatives<br />Risk <br />associated<br />Appropriate products<br />Risks<br />Abrasives for Electronics Finishing<br />Mitigation<br /><ul><li>Putting more experienced people in charge of developing
  30. 30. Participate in as many tenders as possible.
  31. 31. Co-operate in tenders with Russian firms
  32. 32. Finding key people to reach the contract
  33. 33. Risk of default on government contracts
  34. 34. High barriers of the corruptions to enter</li></ul>Chemicals for Electonics Markets<br />Chemicals for Electronics Markets<br />35%<br />Joint government programs<br />Diagnostics/Instrumentation<br />1230 Fire Protection Fluid<br />Embedded Capacitance Material<br />Interconnect Solutions<br />Mitigation<br />Risks<br />Battery Material<br /><ul><li>Damage to a firm's reputation can result in lost revenue or destruction of shareholder value
  35. 35. No benefits from charity programs to 3M
  36. 36. Putting more experienced people in charge of developing
  37. 37. Better planning of the charity programs.</li></ul>Charity programs<br />8%<br />Touchscreens<br />
  38. 38. Retail initiatives<br />Appropriate<br /> products<br />Risk <br />associated<br />Risks<br /><ul><li>Negative attitude from the experts
  39. 39. Incomplete understanding of the capabilities of the 3M product</li></ul>Mitigation<br />18%<br /><ul><li>Client relationships development
  40. 40. Personalized comprehensive trainings for experts</li></ul>Promotion through experts<br />Tapes and Adhesives<br />Aerosol Cleaners<br />14%<br /> Education<br /> andInternet<br /><ul><li>More effective marketing, road shows
  41. 41. Better marking planning
  42. 42. Low response rate
  43. 43. Low networking effect due to lack of understanding</li></ul>Touchscreens<br /><ul><li>Monitoring of client’s development program</li></ul>Co-branding with Client<br /><ul><li>Losing of our clients
  44. 44. Low impact and low cash flow</li></ul>Aerosols, Sprays & Coating<br />4%<br />Interconnect Solutions<br /><ul><li>Low response rate
  45. 45. Effect of damaging our brand image
  46. 46. Better marketing budget planning</li></ul>Packaging Bags<br />Joint mass media campaigns with TV, Magazines<br />Battery Material<br />11%<br />Battery Material<br />Storage Interconnects <br />Tapes and Adhesives<br /><ul><li>Traditional marketing wouldn’t aim potential customers
  47. 47. Non effective marketing budgeting</li></ul>Traditional marketing (advertising)<br /><ul><li>Better marketing budget planning
  48. 48. Choosing most trustworthy promotion companies </li></ul>13%<br />Static Control<br />Aerosols, Sprays & Coating<br />Touchscreens<br />
  49. 49. Segment strategy leads to reprioritization of marketing segments towards campaign, which increases brand awareness and brand trust<br />Marketing budget share of each marketing campaign<br />Target budget share<br />Touch<br />points<br />3 targeted sales segments<br />Marketing campaign<br />Current<br />Target<br />1<br />Non-personalized B2B forums, exhibitions, magazines<br />1<br />B2B<br />1<br />Personalized B2B professional seminar, exchange programs, communities<br />2<br />2<br />3<br />Joint (innovation) government programs<br />3<br />Government<br />4<br />4<br />2<br />Charity programs<br />5<br />Promotion through experts<br />5<br />6<br />3<br />Education & Internet<br />6<br />Retail<br />7<br />4<br />Co-branding with Client<br />7<br />Joint mass media campaigns with TV, Magazines<br />5<br />8<br />8<br />6<br />7<br />Traditional marketing (advertising)<br />9<br />9<br />8<br />9<br />
  50. 50. Strategy applies both recurring and region targeted campaigns<br />Recurring<br />Successive<br />B2B<br />Government<br />Retail<br />
  51. 51. Central<br />2011<br />2012<br />2013<br />2014<br />2014<br />1<br />- Priority level<br />- Recurrent initiative<br />- Successive initiative<br />№<br />
  52. 52. Northwest<br />2011<br />2012<br />2013<br />2014<br />2014<br />1<br />1<br />- Priority level<br />- Recurrent initiative<br />- Successive initiative<br />№<br />
  53. 53. Ural + Siberia<br />2011<br />2012<br />2013<br />2014<br />2014<br />1<br />2<br />1<br />1<br />- Priority level<br />- Recurrent initiative<br />- Successive initiative<br />№<br />
  54. 54. Volga, South, Far East<br />2011<br />2012<br />2013<br />2014<br />2014<br />1<br />1<br />2<br />2<br />1<br />1<br />- Priority level<br />- Recurrent initiative<br />- Successive initiative<br />№<br />
  55. 55. Russia<br />2011<br />2012<br />2013<br />2014<br />2015<br />1<br />1<br />3<br />2<br />2<br />1<br />2<br />1<br />1<br />- Priority level<br />- Recurrent initiative<br />- Successive initiative<br />№<br />
  56. 56. Influence of each type of campaign on key metrics<br />
  57. 57. Marketing budget allocation and Sales info<br />
  58. 58. Strategy results in detailed step-by-step spend in each regions/segment<br />
  59. 59. Financial forecast predicts meeting the set target growth even with incurred risks<br />CONSTRUCTION &MAINTENANCE: Sales growth rate(%)<br />89%<br />1,0<br />68%<br />Risk adjustment<br />31<br />45%<br />23<br />C&M Total sales increase<br />0,5<br />35%<br />15<br />19%<br />58<br />12<br />45<br />7<br />30<br />23<br />12<br />0,0<br />2015<br />2014<br />2013<br />2012<br />2011<br />ELECTRICS SEGMENT: Compounded sales growth (%)<br />1,0<br />Risk adjustment<br />27%<br />Electric, Total sales increase<br />24%<br />22%<br />0,5<br />14%<br />9<br />8<br />8<br />8%<br />5<br />18<br />16<br />14<br />3<br />9<br />5<br />0,0<br />2015<br />2014<br />2013<br />2012<br />2011<br />CONSTRUCTION &MAINTENANCE: Sales growth rate(%)<br />+41%<br />100%<br />80 000 000<br />1,0<br />Risk adjustment<br />100%<br />60 000 000<br />32 900 000<br />100%<br />100%<br />C&M Total sales<br />19 300 000<br />40 000 000<br />0,5<br />14 700 000<br />100%<br />8 840 000<br />41 000 000<br />20 000 000<br />3 060 000<br />31 600 000<br />28 100 000<br />22 900 000<br />15 800 000<br />0,0<br />0<br />2015<br />2014<br />2013<br />2012<br />2011<br />ELECTRICS SEGMENT: Compounded sales growth (%)<br />+17%<br />100%<br />1,0<br />80 000 000<br />100%<br />100%<br />Risk adjustment<br />16 870 000<br />100%<br />60 000 000<br />100%<br />10 920 000<br />9 070 000<br />6 300 000<br />Electric, Total sales<br />0,5<br />40 000 000<br />2 760 000<br />53 400 000<br />46 600 000<br />44 400 000<br />40 800 000<br />20 000 000<br />35 300 000<br />0,0<br />0<br />2015<br />2014<br />2013<br />2012<br />2011<br />
  60. 60. Financial forecast predicts meeting the set target growth even with incurred risks<br />CONSTRUCTION &MAINTENANCE: Sales growth rate(%)<br />89%<br />1,0<br />68%<br />Risk adjustment<br />31<br />45%<br />23<br />C&M Total sales increase<br />0,5<br />35%<br />15<br />19%<br />58<br />12<br />45<br />7<br />30<br />23<br />12<br />0,0<br />2015<br />2014<br />2013<br />2012<br />2011<br />ELECTRICS SEGMENT: Compounded sales growth (%)<br />1,0<br />Risk adjustment<br />27%<br />Electric, Total sales increase<br />24%<br />22%<br />0,5<br />14%<br />9<br />8<br />8<br />8%<br />5<br />18<br />16<br />14<br />3<br />9<br />5<br />0,0<br />2015<br />2014<br />2013<br />2012<br />2011<br />CONSTRUCTION &MAINTENANCE: Sales growth rate(%)<br />+41%<br />100%<br />80 000 000<br />1,0<br />Risk adjustment<br />100%<br />60 000 000<br />32 900 000<br />100%<br />100%<br />C&M Total sales<br />19 300 000<br />40 000 000<br />0,5<br />14 700 000<br />100%<br />8 840 000<br />41 000 000<br />20 000 000<br />3 060 000<br />31 600 000<br />28 100 000<br />22 900 000<br />15 800 000<br />0,0<br />0<br />2015<br />2014<br />2013<br />2012<br />2011<br />ELECTRICS SEGMENT: Compounded sales growth (%)<br />+17%<br />100%<br />1,0<br />80 000 000<br />100%<br />100%<br />Risk adjustment<br />16 870 000<br />100%<br />60 000 000<br />100%<br />10 920 000<br />9 070 000<br />6 300 000<br />Electric, Total sales<br />0,5<br />40 000 000<br />2 760 000<br />53 400 000<br />46 600 000<br />44 400 000<br />40 800 000<br />20 000 000<br />35 300 000<br />0,0<br />0<br />2015<br />2014<br />2013<br />2012<br />2011<br />
  61. 61. Segment strategy project phases and milestones include 2 main parts<br />2nd Phase<br />1st Phase<br />Phases:<br />Implication:<br />3M<br />CaseMonsters<br />3M<br />
  62. 62. Programme & Change Management<br />Segment strategy Rollout plan<br />To be agreed<br />û<br />2011 2012 2013 2014 2015<br />B2B<br />Non-personalized B2B forums, exhibitions, magazines<br />Prepare supporting materials<br />To make a plan of attending<br />Relationship management<br />Attend exhibitions<br />Attend exhibitions<br />Articles in magazines<br />Personalized B2B professional seminar, exchange programs, communities<br />Relationship management<br />To make a plan of attending<br />To train 3M mentors<br />Client support<br />3M management lections for particular <br />Industries representatives<br />Government<br />Innovation government programs<br />Co-working with Gov <br />to archive national goals<br />Charity programs<br />Children’s playground construction<br />Provide office materials<br /> to schools<br />Support of orphanage by <br />money and materials<br />Excursion to 3M plant for children<br />Retail<br />Promotion through experts<br />Materials & tools preparation<br />Promo-<br />activities<br />Adjust new promo - materials<br />Trainings<br />Expert’s support<br />Internet promotion<br />Apps preparation<br />Education and Internet<br />Case challenge<br />Launch innovative web-site<br />Co-branding with Client<br />3M mentioned in clients’ advertising<br />Joint promo-campaigns<br />Branch offices refurbishment (industrial Co-branding with Client)<br />3M on clients’ products<br />Joint mass media campaigns with TV, Magazines<br />3M – sponsor various <br />constructing TV programs<br />Mass media campaigns<br />Traditional marketing (advertising)<br />Broadcasting 3M advertise on TV<br />Preparation of advertising video<br />Local marketing research<br />Steering Committee<br />Work Shops<br />
  63. 63. CVs<br />
  64. 64. Appendix<br />40<br />
  65. 65. Fresh consultant approach to 3M leading business will help it to grow its Construction & Maintenance segment at leading growth rate<br />Goal<br />To build up segment strategy in Construction & Maintenance to reach annual growth rate of 50% for 2 years, then 25% in at least 3 following years through increased brand awareness and sales with limited budget and human resources and estimated risk <br />Core idea, consultant approach<br />To develop segment strategy for C&M we start with: <br />Framework to divide strategy into interconnected processes, then <br />Analyze current approach of 3M in each process, <br />Identify areas for improvements<br />Group new approaches into main initiatives<br />Mitigate risks<br />Build Rollout plan<br />Calculate financial returns&investments<br />Agenda<br />Framework<br />AS IS<br />TO BE<br />Initiatives <br />Risk management<br />Rollout plan<br />Financial returns & investments<br />
  66. 66. Framework to slice Construction & Maintenance segment into interdependent processes to scale it against leading market companies<br /><ul><li>Central promotions with customization to local/customers needs by channel, format and brand
  67. 67. Measurable benefits seen from process
  68. 68. Standardized processes to support promotion planning, Execution and Analysis.
  69. 69. Products are divided into independent segments to represent certain roles for business (i.e. profit, brand, destination, core)</li></ul>Promotion and brands<br />Products <br />and their roles<br />Geo-location<br /><ul><li>Segment Russian regions by number of parameters: political situations, economics situation, industries, potential for sale to government agencies, to big corporation. Potential for brand awareness campaigns</li></ul>Segment <br />Strategy<br />Pricing<br /><ul><li>Structured, monitored relationship management process (start-to-end) with lifecycle stages and milestones</li></ul>Clients Service<br />(after sale)<br />Clients & Distributors relations<br />(before sale)<br /><ul><li>Price zones taking in consideration categories, clients and local competition
  70. 70. Limited, focused number of price zones to reduce complexity
  71. 71. Understanding of elasticity on particular products
  72. 72. Standard approaches to each sales channel. May include: tactics for business development stage, sales techniques, competition strategy. Leading companies determine time investment for pre-sale stage, identify risks and success sale indicator.</li></li></ul><li>1st version of “AS IS” model for 3M represent some misbalance between process maturity (based on available data)<br />= Current<br />= Opportunity<br />Basic<br />Leading<br />Emerging<br />Promotion and brands<br /><ul><li>Brand speculation/positioning is not a developed process of 3M
  73. 73. Construction and Maintenance does not popularize brand image of company currently</li></ul>Geo-location<br />3M has limited view of Russian regions as markets. 3M is strongly present only in Central, North-West, Ural and Siberia regions<br />Products their roles<br />3M products and segment do not serve their own roles. No product segmentation, no clustering is in place from our research<br />Clients & distributors relations<br /><ul><li>Relationship with distributors is too much headquarters centered
  74. 74. Leading companies of other sector embody personalized approach to every distributor and client</li></ul>Clients service<br /><ul><li>Client service is reactive rather than proactive
  75. 75. Client service is very dependent on individuals (Natalia Shmagina is the person responsible for entire C&M product line service)</li></ul>Pricing<br />Price positioning is one side. Most of the products relate to the high price category goods only.<br />Basic<br />Leading<br />Emerging<br />TO BE MODIFIED <br />TO BE COMPLETED IN THE FINAL TOUR<br />
  76. 76. “TO BE” model will indicate particular steps to improve processes, which then will be summarized in high level initiatives<br />Target approach for 3M<br />Initiative<br />Benefit<br />Risk<br />Investment<br />Promotion and brands<br />Geo-location<br />EXAMPLE <br />TO BE COMPLETED IN THE FINAL TOUR<br />Products their roles<br />Clients & distributors relations<br />Clients service<br />Pricing<br />
  77. 77. The main priority in C&M strategy is B2B client segment, however other clients segment represent certain roles, benefits and effort required<br />Government<br />B2B<br />Retail<br />Increase brand awareness<br />Core (high sales, high growth)<br />Role<br />Profit generator<br />Target sales channel<br />Relationships with political leaders<br />Official tenders, business forums<br />Distributors, ABC<br />South (SOCHI), Central (Moscow)<br />Central, North-West, Siberia<br />Central, North-West, Siberia, Ural<br />Target Geo region<br />Pre-Sale stage<br />Health care<br />Visual communication<br />Industrial & transport goods<br />Entry product line<br />Make profit product line<br />Electrics (C&M)<br />Consumer & office goods<br />Security and protection<br />Increase brand awareness product line<br />–<br />Electrics (C&M)<br />Visual communication<br />Competition<br />Potential profit<br />Foreseeable Investments<br />1<br />2<br />3<br />Priority<br />Medium<br />Low<br />None<br />Sufficiently high<br />Absolute<br />
  78. 78. 3M should focus on Central Region, Volga and South Region as they have high potential demand for 3M products in particular segments<br />Population by Region<br />Region: Central;<br />Target segment: Retail; <br />Feature: Huge number of headquarters and offices <br />one of the most attractive regions for investmentsand the highest index of Industrial production in Russia <br />Europe<br />Asia<br />Saint-Petersburg<br />Moscow<br />Nizhny Novgorod<br />Kazan<br />Yekaterinburg<br />Ufa<br />Chelyabinsk<br />Samara<br />Region: Volga;<br />Target segment: B2B; <br />Feature: Highest Industrial index, large amount of plants and manufacturing companies<br />Volgograd<br />Rostov<br />Omsk<br />Novosibirsk<br />Region: South;<br />Target segment: Government; <br />Feature: Preparation for Sochi 2014 Olympiad<br />
  79. 79. Price elasticity analysis will enable smart product positioning in the market (i.e. brand awareness item, profit generator, core revenue generator)<br />Price elasticity curve<br />Price elasticity clustering<br />Market budget/Margin segmentation chart<br />1<br />2<br />3<br />Электротехническое оборудование<br />-2<br />Трассоискатели<br />-0,35<br />high<br />Touch Screen и мониторы<br />-3<br />Marketing budget share<br />Price<br />Решения для электронной промышленности<br />-0,5<br />low<br />Газовое огнетушащее вещество 3М™ Novec™ 1230<br />-2,1<br />ACCR Алюминиевый усиленный композитный провод<br />0<br />0<br />Sales<br />-0,28<br />low<br />high<br />Margin<br /><ul><li>Based on price elasticity analysis we will identify products that we can have the highest margin for and at the same time good sales level
  80. 80. We can then choose product groups, which will serve brand awareness role, profit role and high revenue generator role (example is on Market budget/Margin segmentation chart)</li></li></ul><li>New brand awareness approach will grow brand power with little investments<br />Identify each touch point contribute<br />Distribute marketing budget among touch points<br />Determine all possible touch points with <br />customers clients<br />Ideas, methods, techniques and tools for each touch point<br />Current<br />Target<br />Target<br />Branded products<br />1<br />a<br />a<br />1<br />Increase 3M logo size on products packaging<br />1<br />b<br />2<br />Internet<br />b<br />Internet advertising on specialized web-sites and sites which are popular among target segments<br />2<br />3<br />b<br />2<br />RSS, e-mail notifications and advertising, but not SPAM<br />Direct mail<br />3<br />4<br />b<br />4<br />Interesting lections from TOP-managers, impressive introduction sessions for new products<br />Professional forums<br />4<br />b<br />5<br />5<br />Main segment – youth leaders. Organize interesting online-competitions for internet-users, actively moderate social-network groups<br />b<br />5<br />Social networks<br />6<br />Create an exhibition attending plan. Actively visit existing exhibitions and organize own 3M exhibitions in target regions<br />6<br />6<br />Exhibitions<br />b<br />7<br />Provide complex information about 3M initiatives and products in particular region<br />Publications<br />7<br />7<br />b<br />8<br />8<br />Advertising on TOP Russian TV and Radio channels. Focus on client’s value in everyday product usage.<br />b<br />Radio & TV<br />8<br />b<br />Build more effective relationships with clients, communication right with Decision Makers, using 20/80 principle<br />9<br />9<br />Client relationship<br />9<br />
  81. 81. 3 buckets of initiatives may cause risks in 3 main areas: human resources resistance of change, excessive investments, inaccurate market predictions <br />Mitigation<br />Risks<br /><ul><li>Sales transformation will cause strong reaction</li></ul>among internal employees<br /><ul><li>Portfolio roles of products will be hard to get used</li></ul>to for employees and will require regular update<br /><ul><li>During implementation phase conduct workshops</li></ul>To involve employees into change decision <br />Making, stimulate positive attitude towards new<br />Initiatives, develop “I want to improve” mindset <br /><ul><li>Balance interconnected processes within sales</li></ul>capability, establish calendar for regular updates<br />New sales approach / sales organization transformation<br />Mitigation<br />Risks<br /><ul><li>High brand awareness does not guarantee </li></ul>positive brand image<br /><ul><li>Smart Construction & Maintenance segment</li></ul>management by role of product categories might<br />lead to low margins for few product for the sake<br />of higher sales of other product groups<br /><ul><li>Ensure marketing and P&R only of reliable, </li></ul>established products<br /><ul><li>Ensure compensation of low margin products by </li></ul>high margin products in the same category, but<br />with inelastic demand pattern<br />Brand awareness increase / New product approach<br />Mitigation<br />Risks<br /><ul><li>Prioritization of particular geo areas in strategy </li></ul>requires analysis of hundreds of different<br />sales and demand parameters, which cannot be<br />calculated fully manually<br /><ul><li>Forecast might be based on unreliable market</li></ul>data <br /><ul><li>Install market simulation systems, which will</li></ul>allow to modulate company’s expansion in <br />theory<br /><ul><li>Conduct market audit (retender suppliers of</li></ul>market data)<br />GEO Expansion strategy<br />
  82. 82. Programme & Change Management<br />Segment strategy Rollout plan<br />Customer Insight<br />Commercial Transformation<br />Branch offices refurbishment (pilot)<br />Establish new branch concept<br />Branch offices refurbishment (industrial stage)<br />BP optimization<br />Implement customer service compliance system<br />Development of customer service personnel<br />EXAMPLE <br />TO BE COMPLETED IN THE FINAL TOUR<br />Growing mentors human capital<br />50<br />Bring in external consultancy to align business processes<br />Campaign Management<br />50<br />Establish process<br />Marketing stage<br />Campaign Management<br />Steering Committee<br />Work Shops<br />
  83. 83. Skyrocketing sales can only be achieved with synergy of all high level initiatives. Success of each high level initiative can be managed only with newly designed KPI/metrics<br />Smart pricing, category role management as sales contribution (characteristics)<br />New sales approach / sales organization transformation<br /><ul><li>New sales approach and consequently new sales capability processes structure will result in quick </li></ul>within first 1 year, and 2nd row of benefits after new structure is well integrated into business<br />Proposed KPIs/metrics:<br /><ul><li>ROI of product segments, industries, sales channels</li></ul>Strategic Initiatives<br />Brand awareness contribution to sales increase (characteristics)<br />Brand awareness increase / New product approach<br /><ul><li>Brand awareness will grow over time, increasing its power rapidly starting from 3rd year from now</li></ul>Proposed KPIs/metrics:<br /><ul><li>Brand power</li></ul>Aggressive controlled expansion as main sales generator<br />GEO Expansion strategy<br /><ul><li>Aggressive expansion will result in harsh sales increases at the beginning of each region penetration,</li></ul>however moderate sales growth will follow. This situation may cause volatile demand for production, <br />which is not cost efficient strategy, but very rapid in terms of sales.<br />Proposed KPIs/metrics:<br /><ul><li>ROI by region, </li></ul>1st phase<br />2nd phase<br />Compounded sales growth (%)<br />+37%<br />175%<br />1,0<br />150%<br />125%<br />100%<br />0,5<br />50%<br />0,0<br />2015<br />2014<br />2013<br />2012<br />2011<br />
  84. 84. Electronics, Electrical and Telecommunications<br />Electronics Design & Manufacturing<br />Electrical Supplies and Components<br />3M Network Communications<br />Abrasives for Electronics Finishing<br />Data Cabling (Enterprise Networks)<br />Chemicals for Electronics Markets<br />Solutions for FTTX<br />Embedded Capacitance Material<br />Solutions for Access<br />Interconnect Solutions<br />Tapes and Adhesives<br />Touch screens<br />Pipeline and Cable Locators<br />Battery Material<br />Flexible Circuits<br />EMI/EMC Solutions<br />Static Control<br />Tape & Reel<br />

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