Pgp31148 deepika corp innovation at 3_m
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Transcript of Pgp31148 deepika corp innovation at 3_m
CORPORATE INNOVATION AT 3MDeepika Saxena|PGP31148
Designing and implementing brand architecture strategies
3M: A well known and respected brand
About the Company
Minnesota Mining and Manufacturing Company, headquartered in Minnesota
Employs more than 75,000 people worldwide, produces more than 50,000 products
Regularly ranks among top 10 U.S. companies each year in patents received
With around $30 bn in sales, 3M budgets roughly 5-6% of sales to R&D activities
Culture of innovation promoted by a corporate environment that facilitates new discoveries
3M Range of products
Post-it Notes
Adhesives
Contact lenses
Tapes
Optical filmsIndustrial Abrasives
History of Innovation
3M was founded
First sandpaper sale was made
Waterproof sandpaper- world’s first water resistant coated abrasive patented & introduced
Scotch cellophane first introduced
Scotchgard fabric & upholstery protector introduced
First metered dose asthma inhaler introduced
LED illuminated projection engine for integration in personal devices introduced
Cubitron II industrial abrasives were introduced
World’s largest aperture trough for concentrated solar power was unveiled
19021906
19211930
19561995
2008
2012
2010
What makes 3M so innovative?
3M’s “15 percent time” allows the staff to spend 15% of their time working on projects of personal interest to explore new ideas
3M encourages everyone, not just engineers, to become “product champions”. A culture of healthy competition among highly motivated peers helps the company innovate and create
Promising new ideas are assigned to a multidisciplinary venture team headed by “executive champions”. Venture teams whose new products earn more than $2 mn in U.S. sales or $4 mn in worldwide sales within three years of commercial introduction are awarded
3M expects some failures and uses them as opportunities to learn how to make products that work. Further, a dual ladder approach allows senior, technically inclined individuals with attractive career opportunities to advance, without having to switch to management
3M: One strong brand, complemented by many strategic brands
One of the best 100 global brands by strategic brand consultancy, Interbrand in 2012
Market leading strategic brands
Strategic brands play an important role in strengthening the 3M brand allowing the company to deliver tangible results that enable customer success
Branding strategy or Brand architecture
Branding strategy for a firm reflects the number and nature of common brand elements applied to different products sold by the firm
Brand architecture improves brand awareness, customer understanding and communicates similarity and differences between individual products
Brand architecture also enhances the brand image by maximizing transfer of equity to/from the brand to individual products, thus improving trial and repeat purchase
3M Brand architecture strategy
Articulate Brand vision:3M Technology Advancing every company3M products enhancing every home3M innovation improving every life
Define Brand boundary:3M has limited its operations in the industrial, healthcare, consumer, electrical, safety and cleaning segments. These segments are in alignment 3M’s vision & positioning, appealing to a sizeable market
Brand positioning:3M has positioned itself as a product leader. It strives to have consistently better products than its competitors through its innovative approaches.
Step 1- Define brand potentialStep 2- Identify brand extension opportunities
Step 3- Brand new products and servicesThrough its consistent innovation, 3M has
managed to achieve brand extension in most of its business segments. Some of the extension opportunities 3M has capitalised upon are:a. Traffic safety productsb. Advanced healthcare productsc. Cubitron II abrasivesd. Authentication productse. ESPE LAVAf. ACCR
Though 3M spends around $1.8 billion a year on research and development and employs 8,500 researchers in its labs world-wide, it is known to the public mainly for a few household and office products including Scotch tape and Post-it Notes. 3M’s higher-tech materials, including films used to brighten the screens of smartphones, often are hidden inside other company’s products.To make sure that it is a science-based company, 3M recently introduced a new tagline : “3M Science. Applied to Life.”
Alternative branding strategiesThe 6 main brand architecturesPositioning alternative branding strategies
3M: Endorsing brand strategy
Brand hierarchy for an endorsing brand
Brand endorsement can be graphic (placing the emblem of the endorser next to the brand name)
Endorsing brand allows greater freedom of movement; profits less from its products
Endorsing brand strategies is one of the least expensive ways of giving substance to a company’s name
Brand-Product Matrix
A Brand-Product matrix must define:
Product-Brand relationships (columns)• Brand portfolio
Brand-product relationships (rows)• Line & category extensions
Products
Brands B
C
A321
Designing a Brand portfolio
• The number and nature of different brands marketed in the product class sold by a firm is referred to as brand portfolio
• The reason for creating a brand portfolio is to pursue different market segments, different channels of distribution, or different geographic boundaries
• The objectives while creating a brand portfolio should be to maximize market coverage and to minimize brand overlaps
3M Brand Portfolio
Through its focus in these segments, 3M has taken concrete steps to ensure a. Maximization of its market coverage
so that no potential customers are being ignored
b. Minimization of brand overlap so that brands aren’t competing amongst themselves to gain same customer’s approval
Brand roles in the portfolio
High-end prestige brands
Low-end entry level
Cash cows
Flankers3M CORE Brands
Corporate Branding at 3MCorporate Image Dimensions
Common product attributes, benefits or attitudes• High quality corporate image association• Innovative corporate image association
People and relationships• Customer-focused corporate image association
Values and programs• Socially responsible corporate image association• Environmentally concerned corporate image association
Practices at 3M
Innovative corporate image association- Strong emphasis on a culture of innovation, facilitation of new discoveries and brainstorming sessions
Customer-focused corporate image association- Focus to provide best customer solutions and become product leader
Environmentally-concerned corporate image association- Commitment to sustainable development through a proactive approach to environmental protection
Corporate credibility• Expertise• Trustworthiness• Likability
3M delivers on all three parameters
e
Corporate Brand Equity
• It occurs when relevant constituents hold strong, favourable and unique associations about the corporate brand in memory
• Encompasses a much wider range of associations than a product brand
Objectives of Corporate Brand Campaign
Possible objectives
Build awareness of the company & the nature of its business
Create favourable attributes & perceptions of company credibility
Link beliefs that can be leveraged by product-specific marketing
Make a favourable impression on the financing community
Motivate current employees and attract potential recruits
Influence public opinion on issues
3M’s Corporate Brand CampaignCorporate key messages
3M is a diversified technology company
3M applies innovation systematically to anticipate & respond to customer needs
Practical & ingenious solutions are a strong part of 3M’s legacy
3M is a global company with local presence throughout the world
3M consistently fulfils its commitment to investors, customers, employees & communities
3M fosters a culture of leadership at all levels
3M can be trusted to do the right thing
Summary
3M has a creative corporate culture that promotes innovation
One of 3M’s major strengths is that it works closely with customers to find new opportunities and trends in the market
The company operates across five major business segments that maximize customer coverage and minimize brand overlap
3M follows an endorsing brand strategy that allows greater freedom of movement
Through its corporate key messages, 3M aims to build a strong corporate identity
These slides have been created as part of an individual assignment during the PGP Brand Management cuurse taught by Prof. Sameer Mathur at IIM Lucknow.