Rebuilding the Scotchgard Protector brand for 3M Nederland

Abstract

3M is an American company that was founded in 1902 in Minnesota. Their business originally started with mining (Minnesota Mining and Manufacturing) but they soon switched to the more profitable production of sandpaper. 3M is a technology and science based company with a very wide portfolio of products. It has more than 80.000 employees and over 55.000 different products. The divisions that 3M uses are Consumer and Office, Display and Graphics, Electro and Communications, Health Care, Industrial and Transportation and Safety, Security and Protection services. The Scotchgard ™ Protector brand falls within the Consumer and Office division and contains products based on the Fluorochemical technology. At this moment their main focus is on the business-to-business market with protective products. The Scotchgard ™ Protector products provide soil, water and oil repellency for a wide variety of materials. In 2000 there was a problem with the product and 3M has decided on a complete phase out of the Scotchgard ™ Protector products. Soon after the phase out an improved version of the Fluorochemicals was developed, and the product was re-introduced on the market. Up until this moment the strategy was to maintain as much as possible but no active role was played in the market. The brand has sustained severe damage in the professional market due to the phase out and it has been hard to regain market share. In 2011 it has been decided to revive the Scotchgard ™ Protector brand and develop a new strategy. This report is involved with the Benelux division with a special focus on the Dutch market, 3M Nederland. Due to constant improvements of the chemical formulations and the falling behind of competition, the Scotchgard ™ Protector products are now at a very good quality level. In the past the products have represented good profits and 3M has the wish to rebuild these sales. Therefore this moment has been selected to develop a new strategy for the brand in the Dutch market. From the literature it has been shown that the differences between business and consumer markets are decreasing and that it will be very difficult for 3M to re-establish the brand within the professional markets. Besides that, the value of a brand is still larger for consumers and could be used to benefit 3M as a company. In addition to this, it has been shown from the analysis of the current situation of the brand and its’ market environment that there is little potential for Scotchgard ™ Protector in the professional market. Main reasons for this are that the market is growing more global and therefore harder to address for a (small) subsidiary like 3M Nederland. Secondly, the former customers of 3M in this product category have sustained large damage themselves and therefore the entire market potential has been diminished. As a general conclusion it was decided to focus on a consumer market with the Scotchgard ™ Protector brand. User research done revealed a clear need for repellency and protective products and that a clear positioning is needed. Consumers think of cleaning instead of preventing because they are not aware of the possibilities. Three consumer types have been developed with their specific viewpoints. There are people that feel that they have to keep their home looking good, as a social pressure from outside. Their skills and the products they use are very important to them. A second group thinks that a clean home is relative and they do not put too much focus on it. It has to be done, but only to keep life pleasant and create peace of mind. The final group would like to keep their home looking good but feel that this is never possible. They feel insecure about their skills and use a lot of specialty products to cope with their issues. The most important problem areas are the bathroom, windows and their outdoor tiles. The market description showed that the potentials in these problem areas are very large and that if 3M is able to establish a new product category, there is little competition. The most important retail channels are DIY stores, supermarkets, drugstores and discounters. Since supermarket and drugstore channels need further development in the coming year a start will be made with the DIY stores and discounters. The new product category Protection will be introduced. The strategy for the coming year is to have several in/out actions in the discount channels and introduce the ceramics, glass and stone outdoor products in the DIY stores. The target group will be families with children. The key message to get across is that the utopia of a clean home is getting closer and that this product is about Protection, and therefore prevention of work. With the Scotchgard ™ Protector products, everyone can be an expert and that everyone has the needed skills to keep their things looking good longer. The financial estimates for the first year are very positive and would consist of, in the realistic case scenario, sales of around 355.000 products. This would result in around one million euro of turnover in the first year. The real-win-worth estimates, project feasibility, show very low risks and high scores for project feasibility. Finally, this project has shown that the Scotchgard ™ Protector brand still has a lot of potential despite the problems in the past. 3M has to reinvent the brand and with this plan it has a clear focus again. Scotchgard ™ Protector represents a great potential for the future. Further developing and maturing of the Protective category and staying close to user needs are imperative for success. These activities are well within the power and strengths of 3M. All in all, the introduction of Scotchgard ™ Protector on the consumer market will create a great future for 3M and opens many opportunities in the future.