Marketing Plan

Marketing Plan For 3M’s Ultrathon Insect-Repellent

Executive Summary This marketing plan illustrates 3M’s market segments and the strategies they are employing to get customers and create a solid revenue stream. 3M is not just any product innovator. Their unique focus of creating new products with new features gives them an advantage over their competitors by giving customers a new outlet to enjoy using their products. This shows some strategies to be used in order to promote the Ultrathon Insect Repellant and also some advantages from the top 3 competitors.

Part I 3M Vision 3M's commitment is to actively contribute to sustainable development through environmental protection, social responsibility and economic progress. To us, that means meeting the needs of society today, while respecting the ability of future generations to meet their needs. Everything we do is underpinned by our Corporate Values and our day-to-day actions are guided by our Business Conduct Policies. The integration of these core building blocks reinforces the trust, leadership, quality and innovation for which 3M has grown to be recognized and respected. In addition, of course, we also have our strategic brands, which provide further relevance and differentiation in key market categories.

3M Mission Statement: "3M is committed to actively contributing to sustainable development through environmental protection, social responsibility and economic progress."

Part II Objectives The objectives for this marketing plan are as follows: 1) 2) 3) 4)

Increase brand recognition from 18 percent to 25 percent of target market. Increase market share from 17.5 percent to 21.5 percent. Maintain a 21 percent profit margin on the Ultrathon product line. Increase revenue by 44 percent, from P 35 million to P 50.5 million total revenue  P 200 million potential market ( source: Black)  P 200 million * 1.18 = P 236 million ( 18 % estimated market growth)  P 200 million * 4 % = P 8 million from increase market share  P 36 million * 21 % = P 7.5 million from market growth  P 8 million + P 7.5 million = P 15.5 million revenue growth  P 35 million current + P 15.5 million growth = P 50.5 million (These numbers are estimates based on the market data available)

Ultrathon has been on the market for a couple of years, but does not have the brand recognition like their competitors Off! and Cutter. To succeed in these marketing objectives, 3M must first increase the recognition of the brand Ultrathon. The marketing strategies will concentrate on brand awareness of consumers. With an increase in brand recognition and an aggressive marketing campaign, it will be possible to gain 4 percentage points of market share from 3M’s competitors. As 3M increases its revenue and market share, they will continue to maintain the profitability of the product. 3M plans to increase revenue through increased market share of the current market of P200 million and through the estimated growth of the industry of 18 percent.

Part III Market Description and Analysis A. Target Market 3M Ultrathon is a global product that has a potential of four diverse target markets. They are categorized below: 1. The Armed Forces of the Philippines destined in provinces 2. Outdoor enthusiasts 3. Outdoor workers

4. Families The scope of this marketing plan will address two of these target markets. The first target market to be addressed is outdoor enthusiasts who enjoy hunting, camping, fishing, golfing, hiking, boating and other outdoor sports. The second market is families who encompass parents and children in outdoor activities. These two markets were chosen because they have the greatest buying potential. Ultrathon is a global product; however, for the purposes of this marketing plan, the state of Wisconsin will be used as a test market.

B. Competition The largest competitors of 3M’s Ultrathon Insect Repellent are:   

Off! (by S.C. Johnson & Son Inc.) Cutter (by United Industries Corp.) Repel (by United Industries Corp.)

S.C. Johnson, the maker of Off! Insect Repellent, is located in Racine, Wisconsin. They are the largest competitor of Ultrathon. One of SC Johnson’s strengths is that it is one of the world’s leading manufacturers of household cleaning products, storage products, personal care products and insect control products. It is a family-owned and managed business and has been in operation for 116 years. The company name and its product brand Off! are both very wellknown in the market and are trusted by consumers. They are a company dedicated to innovative, high-quality products. There are many Off! Insect Repellent products to choose from. They range from Deep Woods Off! with 100% DEET for sportsmen, to 30%, 25%, 15%, 10%, 7%, and 5% DEET products in pump, spray or lotion. One product has sunscreen, one is unscented and one has a tropical fresh scent. A new addition to their line is Off! Botanicals Insect Repellent Lotion which contains no DEET, but uses a new ingredient found in lemon eucalyptus oil. The prices range from P 119.65 for a 6 oz .pump bottle of Skintastic to P 241. 84 for an 11 oz. spray can of Fresh Scent (15% DEET). Their prices are less than Ultrathon which sell for P 210.13 for a 6 oz. can. The various choices offered by Off! are an advantage to consumers, and their many products take up a majority of the shelf space which makes them easy to see. Disadvantages however, might be confusion by the customer as to which item they should purchase. Also, the company would have added marketing expenses for additional items for the same line. Since SC Johnson is a smaller company they would have less money to allocate to advertising. (SC Johnson) United Industries Corp. the makers of Cutter and Repel Insect Repellents is the second largest competitor to 3M’s Ultrathon. United Industries just recently acquired WPC Brand which is the manufacturer of Repel. The company feels this acquisition strengthens their position as the No. 2 insect repellent manufacturer in the industry. They feel they can now offer an optimal mix of solutions to consumers and retailers looking for insect repellents. United Industries is a privately held manufacturer of insect control and lawn and garden products. The company is the

39th largest privately held company in St Louis with P288 million in revenue last year. (United Industries) Advantages of Cutter insect repellents are that they have proven to be the most effective insect repellent protection available for the past 50 years. Cutter was invented by outdoor enthusiasts for outdoor enthusiasts and their families and has consistently been rated the most effective brand available. Their product line ranges from Outdoorsman which offers between 5 and 8 hours of continuous protection and sells for P 161.00 for a 6 oz. aerosol can to an unscented aerosol spray, a pump spray and Cutter Towelettes. They also sell area repellents. Cutter is also priced lower than 3M’s Ultrathon. (Home)

C. SWOT Analysis  Strength  Diversified businesses - industrial and transportation, healthcare, display and graphics, consumer and office, safety, security and protection services, and electro and communications.  Strong research and development capability  Diversified geographic presence  Solid revenue & profit growth

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Weaknesses  Low inventory turnover which impacts inventories and margins  Weaker than expected performance in key segments  Not as nimble as smaller, more focused competitors  Lack of synergy between business units Opportunities  Acquisitions in key operating areas  Continued global expansion  Rising healthcare spending in the US  Security concerns with weaker economy in the US

could present opportunities for 3M's security business  Markets similar to areas it is currently in, such as renewable energy, water infrastructure, architecture, and lighting

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Threats  Rising commodity and energy prices  Exchange rates fluctuations  Environmental regulations  Consumer preferences and competitve conditions

Part IV Selling Strategies

Advertising The advertising campaign will be focused on the two target markets identified in the target market section, which are male outdoor enthusiasts and families (of which females do the purchasing for the household.) The purpose of the advertising campaign is to increase brand awareness of the Ultrathon Insect Repellent. Advertising Strategies for Outdoor Enthusiasts Outdoor enthusiasts like to read magazines, surf the internet, and watch TV shows that relate to their activities. Since our test market is Philippines, we will advertise in Philippines outdoor magazines, on sporting websites, and TV shows for outdoorsmen. To begin with, ads will run in the following:  Juan MAGAZINE  Active Boating and Watersports Web Site  Born to be Wild TV Show  I Dare you  Matanglawin TV Show  Sports Unlimited These are pioneering advertisements that will show people hunting, fishing, camping and hiking in insect infested areas without being affected by the insects. They will inform potential buyers about Ultrathon and its many unique benefits. Advertising Strategies for Families Females with families like to read magazines and watch TV shows that relate to home life and raising a family. The magazines and TV shows that will be advertised in and that will focus on this target market are:        

Good Housekeeping Real Living Smart Parenting Yummy Kris TV Kay Susan Tayo Salamat Dok! Rated K!

These will also be pioneering advertisements that will show families and children engaging in outdoor activities being protected by Ultrathon. The advertisements will use fear

appeals and will stress the importance of protecting your family from such dangers as Dengue and Malaria.

Personal Selling Personal Selling will be an extremely accurate method to be used on the outdoor enthusiast. Booths will be rented at the following three events this year:   

Sportsmen Show Boat Show Game Fair

The booths will have a box filled with mosquitoes and a person will be demonstrating the direct effect of one arm having Ultrathon on it and the other arm bare. Samples and coupons will be given out at the shows. The use of the samples will create brand awareness and the coupons will increase market share when they are redeemed for the purchase of Ultrathon. This will also increase revenue. The cost will come out of the advertising budget as not to impact the profit level of the product. Personal selling will also be geared towards the family target market through a select number of grocery stores where samples and coupons will be handed out.

Sales Promotion 3M will use sales promotion to increase brand awareness, market share and revenue. The use of Point of Sales Displays will be used with a discount coupon for the purchase of Ultrathon. Although, the use of Point of Sales Displays produces a short-term effect in revenue and market share, the brand awareness will have a long-term effect. The use of this sales promotion along with the rest of the marketing strategy will produce a long term increase in both revenue and market share. The Point of Sales Displays for the male outdoor enthusiasts will be at Mt. Banahaw by their checkout lines. The Point of Sales Displays for the family market will be at SM Supermarkets and Shopwise.

Publicity / Public Relations The publicity of insect repellents is rising due to the increased threat of insect carrying

diseases such as Dengue and Malaria. News stations and newspapers are carrying stories about the threat regularly and stressing the use of insect repellents. Ultrathon is getting great publicity for being the best insect repellents on the market today for preventing the spread of these diseases. Consumer Report featured an insect repellent comparison in which Ultrathon was rated number one in insect repellents. Ultrathon is also getting free publicity from its retail outlets, citing its growth potential. 3M will donate Ultrathon to several public groups that participate in outdoor activities to promote their product and increase brand awareness.

Direct Communications Direct communications will be used to measure brand awareness, as well as increase brand awareness and market share. A survey will be sent out as a focus mailing to 3M’s two target markets. The survey will measure; brand awareness of insect repellents, likes and dislikes between Ultrathon and its competitors, and the outdoor activities of the survey taker. The survey will include a coupon, for one free small can of Ultrathon. This marketing plan for 3M Ultrathon will meet our objectives to increase brand awareness and market share, maintain profit margin and increase revenues.

A. Proposed Business Card

B. Slogan “Innovation”

C. Brochures, Pamphlets or Leaflets

Part V Product Strategy A. Product Description as to its -

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Product attributes (quality) Ultrathons point of difference is its controlled release technology which makes it slow to evaporate so it will continue to work long after other repellents have stopped working. This advanced 3M formula creates an effective barrier to protect against mosquitoes, ticks, flies and more. It is water resistant and has a pleasant scent. The convenient spray-through cap makes it easy to use. Ultrathon is great for hunting, camping, fishing, hiking, running, biking, golfing, and boating, as well as for many other outdoor sports, leisure activities and work. Features  Time-release formula provides up to 12-hours of protection; resists rain, water splashes and perspiration  Active ingredient 34.34% DEET offers a high level of protection against mosquitoes, ticks, flies and other insects  DEET (N, N-Dimethyl-metatoluamide) is the most effective insect repellent available  Lotion absorbs quickly; features a light outdoor scent  Active Ingredient: DEET (34.34%)

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Style (physical appearance) and design (based on usefulness) Ultrathon Insect Repellent is available in a 6 oz. (170g) aerosol spray can or a 2 oz. (59ml) lotion. It is designed to give protection against insects while people are having outdoor activities

B. Proposed new or improved product description (recommended product) Ultrathon’s biggest benefit and point of difference, compared to its competitors, is its slow release formula and long lasting protection. It provides a continuous shield of protection against insects. 3M’s controlled Release Technology allows Ultrathon to evaporate more slowly than other leading insect repellents allowing it to work much longer. Ultrathon aerosol spray will last 8 hours in rugged outdoor use, while the Ultrathon lotion will last an amazing 12 hours. Ultrathon contains only 25% DEET in its aerosol can and 33% DEET in its lotion. This advanced 3M formulation creates an effective barrier that repels mosquitoes that may carry the West Nile Virus. It also repels ticks that may carry Lyme Disease as well as biting flies, chiggers, gnats, and deerflies. Ultrathon Insect Repellent resists rain, perspiration and water, which helps it to stay on longer. It has a pleasant outdoor scent that is not offensive, and can be sprayed upside down, which makes for easy all over coverage. Ultrathon offers its user the ability to enjoy a greater duration of activity while exposing them to a lower concentration of DEET. It reduces the need for frequent reapplication of the repellent with its long lasting protection. This product is less oily and has a mellow scent. Ultrathon is able to offer reduced concerns about potential DEET toxicity do to its lower concentration levels. (3M Ultrathon)

Part VI Customer Service Plan a. Describe customer service delivery

b. Proposed System/Approach 3M is the only supplier with a support team that includes a nationwide fleet carrying replacement parts for your 3M library equipment. This allows us to be at your doorstep and fix potential problems quickly, allowing your staff to focus on what they do best: support patrons. Local, expert technicians: 3M is the only RFID provider that can help take the hassle out of service by coming on-site to maintain your solutions as opposed to having your staff actively respond whenever problems arise.

Stocked service fleet: our nationwide service fleet stocked with parts can be at your doorstep quickly to help get your system up and running. 3M is the only library systems equipment supplier with a support team that includes a nationwide fleet carrying replacement parts for your library solutions. On-site preventive care: many of our service agreements include “checkups” to help ensure your equipment is working optimally and has the latest software. Automatic updates: software updates and bug fixes are included as part of most standard 3M On-Site and Support agreements.