Team

Sharks

Member 1: Raja R S Member 2: Sreenivas N Member 3 : Shabharivasan RC

8331019097 9567327814 9789910387
rajars19@iimk.ac.in sreenivasn19@iimk.ac.in shabharivasnr19@iimk.ac.in
 Segmentation of Mid-sized Retail
Segment A Segment B Segment C Segment D
Importance Range of
brands/Service Wide Medium Limited Wide
Range of of personal
assistance
Kind of store Walk
Brands/Se Walk Conventional Walk Through
rvice through through
Importance of
Store
personal High Medium Low Very high
layout assistnce
Apparel stores
Jewellery stores
Optical stores
A Sports goods store

Super market
Gift Shops
B Electronics showroom

Mid-size Electrical shops

retail Hardware shops
C Drug stores

Segment Segment Segment Segment Retail banking

A B C D Service centres
Health diagnostic centres
D Hospitals
 Segmentation of the sub-segments

Mid-size
retail

Segmen Segmen Segmen Segmen

tA tB tC tD

ABILITY TO CROSS
AND UP SELL High Medium High Medium Medium Low High Medium Low

Jewelry Specialty Electronic Super

Drug store Retail banks
Diagnostic Service
store stores Showrooms market Electrical centers centers
AVERAGE BILL and
Hardware
SIZE shops
Apparel Sports Hyper Training Hospital
store goods store market institutes chains

AVERAGE BILL SIZE

High Medium Low

 Proposed Business Model when frequency of wholesalers distribution
teams visit is high
Distribution by 3m
authorized distb.
Associated 3m materials
Wholesalers Most of the goods in a mid-sized retail shops
are supplied by wholesalers

Tagging A wholesaler delivers goods to a wide range

Distribution by Wholesalers of retailers through efficient daily small
wholesalers team distribution team
vehicle logistics

Direct selling 3M to form an association with best

3m salesmen wholesalers in a city/town as they deliver
Mid-sized retailers
goods to a wide range of retailers
Interest for 3m products
Dis Fin Hygiene and safety products are delivered to
cus ali
sio zin wholesalers warehouse after an association
ns gt Lead
Implementation of for he is formed
sol sol Generation
the solutions uti uti
on on Tag 3M salesmen to wholesalers
s
distribution team so that the salesmen can
3M authorized solution
3m Consultants meet retailers when goods from wholesalers
providers
Information about are delivered to retailers
the solution to be
implemented
 Proposed Business Model when frequency of wholesalers distribution
teams visit is high - continued
Distribution by 3m
authorized distb.
Associated 3m materials Some of the safety and hygiene products
Wholesalers
can be directly sold to retailers by 3m
salesmen
Tagging
Distribution by Wholesalers If a retailer is interested in designs/
wholesalers team distribution team graphics it is conveyed to 3m
consultants/influencers
Direct selling
3m salesmen 3m consultants get in touch with the
Mid-sized retailers retailers interested in designs/graphics
Interest for 3m products and arrive at a solution
Dis Fin
cus ali
sio zin Solution providers are informed about
ns gt Lead
Implementation of for he the solution to be implemented and they
sol sol Generation
the solutions uti uti do it in the retailers shop
on on
s
Wholesalers are rewarded a fixed
3M authorized solution amount plus some variable amount
3m Consultants
providers
Information about according according to the conversion
rate of the leads and direct selling
the solution to be
implemented
 Proposed Business Model when frequency of wholesalers distribution
teams visit is low or nil

For this segment it is not possible to use

the already available distribution n/w as
Direct selling the frequency of visit of the distribution
Mid-sized retailers 3m salesmen team will be less

Interest for 3m products Direct involvement of 3M salesmen is

Dis Fin
cus ali required
sio zin
ns gt Lead
Implementation of for he If a retailer is interested in designs/
s ol sol Generation
the solutions uti uti graphics it is conveyed to 3m
on on
s consultants/influencers
3M authorized solution
3m Consultants 3m consultants get in touch with the
providers
Information about retailers interested in designs/graphics
the solution to be and arrive at a solution
implemented
Solution providers are informed about
the solution to be implemented and they
do it in the retailers shop
 Value Chain Mapping- frequency of wholesalers distribution team
visit is high
Functions Participants

Implementation of Retailers Solution providers

3m solutions

Influencing 3m Influencers/creative
solutions designers

Direct selling/ lead

3M salesmen
generation

Visit to retail Wholesale dist. Team/

stores 3M salesmen

Outbound supply 3M authorized

distribution team

Production 3M Manufacturing Material flow

unit
Information flow
 Value Chain Mapping- frequency of wholesalers distribution team
visit is low or nil
Functions Participants

Implementation of Retailers Solution providers

3m solutions

Influencing 3m Influencers/creative
solutions designers

Direct selling/ lead

generation
3M salesmen
Visit to retail
stores

Outbound supply 3M authorized

distribution team

Production 3M Manufacturing Material flow

unit
Information flow
 Target sub-segments selected and Demand Generation Model
Target : Retail stores with
high and medium average
bill in segment A and
segment B
Rationale :
The retail stores in segment A and B
are walk-through stores and the
range of products are very high
The average bill value is high and
customers spend considerable
amount of time in those retail
outlets
The ambience of the stores is
important considering the amount
of time the customers spend there
To enhance the ambience of the
stores graphics, unique product
displays can be used
3M can leverage on these factors to
generate demand in the targeted
segment
Run a series of marketing Objective : Increase brand awareness
campaigns Channel : traditional, Online
Marketing campaigns such as Go to the next
level for mid sized retail outlets that affects the
Stimulate the desire psychological characteristic of the customer and
motivates them to buy 3M products so that
demand is increased
Capitalize on the desire of the retailers to
Approach the retailers improve the look of their retail outlets by
using sales force sending 3M salesmen and to promote 3M
products
The Sales force is used to generate leads about
potential customers. Information about them
Generate the lead
and their desire to buy the products are passed
on to the influencers who suggest suitable
products for them
Follow up with the customers and suggest
Close off with conversion suitable products according to the retail outlets
to convert the leads. Implementation will be
done by solution providers
Digital marketing strategy

Reveal 3M the smart phone app:

The application works similar to Instagram
The app would enable the retailers around India to post a picture of the
new 3M sticker they have put up in their store
The owner can also describe about the process and the cost involved
This post will be sent as a notification to the other retailers who have
installed the app
The sales personnel will make sure the retail owners download the app
Product demand has a chance of increasing through the app

Content marketing:
Release white papers in blogs/website relating to the topics ways in
improving the looks of the store and making the store attractive
Create buyer personas to develop a common language about buyers
Try improving the hit rates through SEO by using long tail keywords
Address the problems first before promoting the product

Marketing automation:
Appropriate leads are identified with the help of the sales personnel
Implement marketing automation tools to automate the process of sending
e-mails with updated designs and information
 Go to market model
Apparel Stores (Segment A)
Market Focus on Tier II cities first as there is a large untapped opportunity in
presentation and portrayal of brands the retail outlets present in these cities. The cities will be in a developing phase so
hygiene and safety new mid sized retail outlets will be coming up and if 3M concentrates it on these
1.5 markets it will get a first mover advantage.
0.6
1
0.4 Target segment The target segment is high, medium average bill value stores in
0.5 0.2 segment A and B. Customer spend considerable time in these stores and so the
0 0
graphics s igna ges Fl oor mats Anti s l i p ta pes ambience is important. Primary research also revealed that portrayal of brands,
design and aesthetics are important factors to increase customer experience. So
these sub-segments 3M can offer designs/graphics products.
design and aesthetics Likelihood to increase
customer experience = Channel for Interaction Traditional and online channels to run the marketing
1
6.81-0.54(floor mats) campaigns. Traditional channel includes Television. Online channel for interaction
0.8
0.6 +0.9(graphics)+0.80 (surface is through 3M reveal application as it is an effective way to engage the retailers
0.4
finishes) and also through website.
0.2
0
Positioning For mid-sized retail outlets that try to improve the customer
Surfa ce fini s hes optical l i ghting fil ms experience, 3M provides aesthetic designs, graphics and safety products that
enhances the ambience of the retail outlets to give a pleasant experience to
customers. Unlike any other vendor the entire solution is protected under 3M
Relative importance warranty which ensures peace of mind to the customers.
Value Proposition Unique designs/graphics that can improve the ambience,
Hygiene & safety 24.10%
customer experience of retail outlets with the solutions protected by 3M warranty
Portrayal of brands 40.18%
Pricing When 3M enters a market first it can reap early profits by prices slightly
Design and aesthetics 35.72% higher than the normal price it charges but also within the affordability of mid-
sized retailers . Once there are tough competition from competitors it can lower
Graphs represent the part-worth of the attribute levels
the price of the products. Penetrative pricing can be used if it decides to enter a
city which gives a tough competition to 3M.