Sian Noel-Davila, Matthew Gerrard,
Laura Matthews & Leigh Ramsay
Bringing Products to Market
Level I
Table of Contents
1. Preliminary research ........................................................................................................................... 2
2. Ideations.............................................................................................................................................. 3
2.1
3DGiftCo .................................................................................................................................. 3
2.2
3Di ........................................................................................................................................... 4
2.3
3DHS ........................................................................................................................................ 4
2.4
Sparkles ................................................................................................................................... 5
2.5 Finalised Idea ................................................................................................................................ 5
3. Pre-Launch activity .............................................................................................................................. 6
3.1 The 7 P’s – Marketing Mix............................................................................................................. 6
3.2 Branding, Positioning and USP ...................................................................................................... 7
3.3 Target market................................................................................................................................ 8
4. Launch and Post Launch Management ............................................................................................... 8
5. Appendix ........................................................................................................................................... 11
Figure 5 ............................................................................................................................................. 11
Figure 6 ............................................................................................................................................. 12
Figure 7 ............................................................................................................................................. 13
Figure 8 ............................................................................................................................................. 14
6. References ........................................................................................................................................ 15
6.1 Further reading ........................................................................................................................... 16
1. Preliminary research
Market opportunities arise almost every day but within the technology industry, due
to rapid technological advancements, it has become increasingly difficult to establish
and sustain market share. (Kazanjian, 1988) Preliminary research has been carried
out to help Staples understand various factors, which will determine whether or not
the market is worth entering. This research helps identify the market opportunity, the
market potential and also the potential capabilities of the service in question, which is
3D Printing. By analysing these factors, it will increase the likelihood of Staples
successfully entering this technological market.
Companies have become increasingly aware of the environmental issues that are
caused by manufacturing or distribution, as well as other factors such as efficiency
and cost. Additive manufacturing is environmentally friendly due to the fact that the
materials used can be recycled, as well as being efficient in terms of production time.
Corporate social responsibility lies in the heart of Staples, as a large organisation
they are keen on sending out this message. Being seen as a ‘green’ company
enhances consumer values and attitudes towards their brand (Leonard, 2008). 3D
printing demonstrates large potential in to what it can produce with the possibility to
change the manufacturing industry for good. It gives anyone who possesses an idea
the opportunity to create products without investing in mass production. “The only
limit is someone’s imagination.” (Taggart cited, DesMarais, 2011)
3D printing is at the forefront of the technological market and can easily be
incorporated into other successful trends such as QR codes, which have made a
massive impact on the way companies have been marketing their products. This is a
great opportunity to link both together and create a system that is very futuristic and
engaging.
Although 3D printing is not considered to be very cheap or appropriate at the
moment, companies are stressing that it is becoming increasingly affordable thus
showing huge potential. Due to these falling prices and the fast, efficient
characteristics, 3D printing is set to become mainstream in the next 5-10 years
(Neometrix 2010). Additive manufacturing (3D printing) has the ability to produce
products with a higher performance rate, overall ensuring it is more beneficial than
traditional manufacturing: “3D printers have been constantly improving in terms of
their size, speed, cost, and need for human intervention.”(Innosight, 2008)
Furthermore, technologies are always advancing therefore costs decrease
considerably. If Staples were to embrace the success of 3D printing early enough, it
will prove to be extremely profitable and beneficial towards their brand image,
reputation and production methods. This will not only change consumer views on
manufacturing processes but also impact upon the B2B market; this is because
changes can be altered easily creating more time increasing productivity in the
workplace.
Lastly, the capabilities of 3D printing are ever growing as the materials that can be
used allow for a much wider product range to be created (Wang, 2011).
Technological advances like LED, 3D TV’s and digital photo frames quickly
established their market position but as technology is fast moving, 3D printing poses
a great threat to steal the limelight of these out dated technologies.
However, 3D printing also has its downfalls as previously explained the technology
could become quickly outdated or even overtaken by alternative services. Overall as
with any new technology or new market entry, risk has to be taken to reap any sort of
benefit or experience, therefore with Staples we highly recommend considering this
opportunity within this potentially profitable market.
2. Ideations
With our distinctive market research for this new evolving industry, 4 possible ideas
were drawn up that were considered to harness potential market success. Below is
a brief explanation of all 4 ideas, each had its own screening process by which we
uses to finalise an idea.
2.1
3DGiftCo
3DGiftCo. offers a walk in service/shop offering personalised 3D objects exclusive to
Staples. This will be targeted towards the general public as well as small businesses
who might want to order in unique 3D logos, awards or QR codes. This service will
be available in store and online to help widen the appeal. Staples will face other
online competition such as ‘Shapeways’ apart from that, this is a unique business
which aims to be the new innovative gift industry. From the screening process (figure
1) what 3DGiftCo scored highest on was the likelihood of quality product, likelihood
of filling need and speed to market; this alone proves the potential success this
service could have in this particular industry.
2.2
3Di
3Di will be centred around the music industry, focusing on the endless possibilities
of customisation as the driving factor of this market. Amit Zoran of the MIT Media
Lab has already begun to print off 3D instruments such as Flutes and Trumpets
(Kirn, 2011). Seeing as it is now possible to print instruments offline, it must also be
possible in the near future for music lovers to be able to create their own. This is why
we believe that Staples should go ahead further with 3D printing and enter the music
sector. 3Di will not sell music like iTunes or Napster, it will allow consumers to come
in and design a new, almost futuristic, type of instrument then and there. During the
screening process (figure 2), what 3Di scored highest on was the probable product
life cycle, this proves a worthwhile industry in which Staples could expand into due to
that fact that the music industry is so vast with the potential of long lasting high
profits.
2.3
3DHS
This idea focuses predominantly on the medical industry by offering organisations
like the NHS, and private medical facilities the opportunity to print off prototype
pieces of the human anatomy. Staples will be at the forefront of this movement that
has the potential to provide a brand image that is indistinguishable amongst others, it
will become a ‘saviour’ brand, one that is seen to provide and care for its consumers.
Neurologists and surgeons have also expressed their admiration for this new
technology (Kim, 2010). The online source shall be the main focus and point of call
for business. Companies will have the opportunity to upload the file they need
printing, request a quantity, and get it printed and delivered by the nearest store.
This isn’t limited to just hospitals and doctors surgeries; it also has scope for
providing medical schools and any other educational facility with realistic work
equipment. Figure 3 shows the scoring sheet for the screening process of 3DHS.
2.4
Sparkles
Sparkles would be a Jewellery making service. There are many unique jewellery
brands already available however none made by 3D printers. There are many
occasions throughout the year that promote a time to buy gifts, “Jewellery industry all
over the world has developed a lot in recent years. More and more unique materials
and metals are being used to make fascinating and attractive articles.” (My Jewellers
Place 2011) therefore with this unique innovative service, whereby consumers will be
able get be involved with the design and watch the manufacturing process would
make this Staples service unique amongst the competitors they will face. Sparkles
screening process (figure 4) had many similarities to 3DGift.Co with very high
customer integration possibilities which will help meet the demands and needs of
today’s society.
2.5 Finalised Idea
The screening model proved useful for enabling an easy finalised decision between
the ideas above; the final conclusion came to combining 3DGiftCo and Sparkles
together as one service allowing an overall more beneficial and stronger service for
Staples. Some of the factors which where weighted by high importance on these two
ideas were:
-
Likelihood of quality product
-
Likelihood of speed into market
-
Rate of technological change.
This shows that the overall idea has the potential to be a highly innovative service
that shall be unique to the 3D printing industry.
By combining the 2 ideations together, it helps to widen the appeal for both
products. The fact that ‘Staples’ is an established brand will help to overcome
potential issues such as customer awareness and willingness to purchase. With the
help of Staples already being positioned around the UK, 3DGiftCo has a high chance
of success due to an existing large customer base.
The fact that there is a similar service available online (in the USA) that creates 3D
objects for the public, demonstrates the potential for this particular service in the UK
and according to Hofstede, there are clear cultural similarities between the United
States and the United Kingdom (figure 5) which could reflect similarities in
consumerism. (Geert Hofstede, 2011)
3. Pre-Launch activity
3.1 The 7 P’s – Marketing Mix
The price of our products will be defined by how complex and how expensive the
materials are of the product that the customer would have created. To be more
specific the prices of the jewellery will range from £10 - £50 and the gift products will
range from £25 - £80. We will also have a premium jewellery section which will be
names “Sparkles” which will deal with bespoke tailor made orders ranging from
£100.
Our store will be located inside of other pre-existing Staples stores around the
country. Eventually with the right amount of profit we will try to extend the company
to have their own smaller sized drop in stores where consumers are able to create
products and print them off quickly.
The launch of the product will take place in November 16th 2012 which will coincide
with the up and coming date of Christmas Day. The sale will showcase many
different promotions and special offers and allow the consumer to purchase and
deliver products before Christmas Day arrive.
Our service will be to allow consumers to create any sort of gifts or jewellery
products that they would like in a range of materials. These products will be able to
cover an unlimited amount of styles, many materials and some selected colours.
Uniforms will need to be designed and made for the 3D Printing Company
employees in store along with a logo and the design of external stores. We will also
have a web based society allowing consumer to create products on their computers
which will match the look and feel of the logo, stores and uniforms.
In able to allow the consumers to use our service we will produce a distinct website
for ‘The 3D Printing Company’ which will deliver a short tutorial for users who would
like to manufacture a new product. This will be in conjunction with letting consumers
download a program that will permit the consumer to design and create their desired
product.
A short training process will be necessary for our employees to demonstrate how
the 3D printers work and also learn important information about the technology. This
procedure will be vital if we do not want to confuse our customers with how our
service works.
3.2 Branding, Positioning and USP
3DGiftCo by Staples is a brand like no other within the gift and jewellery market.
Just like its manufacturing process, Staples 3DGifts is unique by offering boastfully
good quality through a revolutionary new technology. The futuristic approach is to
not only change the way we produce gifts but change the shopping revolution in
general.
Under the Staples brand, 3DGiftCo offers a stylish brand image and identity to
anyone who uses the service. Due to the environmentally friendly nature of the
company and process, along with high quality products and endless capability, the
3DPrintCo is convenient, cost effective and new.
Within this forever growing industry, 3DPrintCo will be at the forefront of
technological development. It shall offer a range of products and services, silverlined with a premium brand, which offers bespoke services for tailor made orders
with a variety of materials available.
The brand would be positioned rightfully as market leader. Being the only company
established in the UK market that offers 3D printing, the company still has scope for
potential markets, like the ones discussed in ideation. In relation to Marn et al (2003)
3DGiftCo will be revolutionary “a product is so new that it creates its own market.”
Refer to Figure 6 for the Gantt chart demonstrating the pre-launch activities.
3.3 Target market
The potential customer base for our service is huge, therefore we are going to
position the service to anyone, whether they're looking for unique and personalized
gifts such as jewellery or an office logo. To be more specific we will first aim our
service at the existing customers at Staples and also some small businesses.
We plan to launch our service in November to increase the likelihood of potential
consumers placing orders for 3D objects and jewellery around Christmas. The
advantage of Christmas Day maximises the opportunity to increase the footfall for
these months due to a popular gift event.
4. Launch and Post Launch Management
One of the most vital aspects of bringing products to market is to ensure that the
correct marketing communications are selected to achieve maximum interest and
anticipation to help establish desirability and want for the product. ‘Many a product
which was intrinsically good has died in infancy because it literally never found the
right road to market’ (Ramachandran, 2002).
3D Printing is extremely new to the world compared to other printing and available
technological services, therefore marketing such a unique service may prove to be
somewhat tricky, especially when it comes to convincing the consumer to utilise the
service. The marketing approach sets out to answer the question, ‘Why should I use
this service?’ from a consumer point of view.
The approach taken for the marketing communications had a predominant focus on
social media, alongside above and below line techniques for focus on regional and
national scales. ‘Although ‘the line’ is an artificial concept, it can prove a barrier to an
effective marketing programme’ (Linton, 1997).
Social media has been chosen due to the clear increase in users in recent years.
More and more people are turning to the Internet to live their lives online by being
able to share pictures, videos, opinions and conversation via social networking sites
(Beal & Strauss 2008).
The social media campaign that would run over a four-month period would include 3
social networking platforms, Facebook, Youtube and Twitter. Specifically chosen,
each site boasts its own benefit. The idea is to create a series of viral videos that
demonstrate the complexity and accuracy of 3D printing. A tri-weekly video will be
released onto Youtube titled ‘The Creation’. As it gets closer to Christmas the viewer
will gain a larger picture of what is being 3D Printed by one of our in-store printers,
which will turn out to reveal an impressively detailed 3D logo of the ‘3DGiftCo’. Viral
marketing is said to be free from the strictures of standard media units (Wertime &
Fenwick 2008) as it allows the viral to be as long or short or as costly as we want,
because technically the spread and posting of the video is free. Other creative
marketing concepts include the 3D billboard, which will strategically be positioned in
renowned locations around the UK. The billboard will provide clarity towards the viral
videos and amplify its uniqueness by not just being a standard picture billboard, but
one that actually grabs the eye by being different and innovative, much like the ‘Dogs
Rule’ campaign by TBWA (Figure 7). The printer will be printing all sorts of 3D
objects, which will protrude the sides of the board. These marketing methods are
necessary actions to ensure people see and understand this new service and create
relative interest or conversation about it with others.
As all viral videos and online marketing activities can be monitored by views, reach
and shares, it is still hard to establish any kind of metric that success can be
measured against. There has been little to no research into discovering whether an
increase in user activity or engagement has any sort of direct relationship with sales.
500 ‘likes’ on Facebook doesn’t necessarily mean 500 sales will be made; it’s
unclear what this relationship is, if any at all. ‘Forecasting the exact specifications
and potential sales volumes of new products is becoming more difficult than ever.’
(Ogawa & Piller, 2006) it is further explained that ‘recent studies have confirmed that
many new products fail not because of technical shortcomings but simply because
they have no market.’
As the service is completely new and the only factor to identify demand is preordered goods, the 3DGiftCo will have to measure performance against ROI.
However much money is invested into the 3DPrintCo, will have to be deducted from
the total sales, then anything after will be determined as profit. Customer feedback
will be gathered though the use of questionnaires and online comments on YouTube
videos and the Facebook page. This entire process shall be monitored continuously
throughout the year to ensure constant engagement and interactivity with social
media communications.
Risks could be that it spreads wildly out of control and people could post negative
comments online for all to see, therefore creating negative connotation towards the
service itself. Crisis management plans shall be in place to help prevent any
outbreak of negativity. A clear demonstration of the risk management plan has been
given in figure 8.
Taking into account the leviathan of information we have collected and
demonstrated with regards this entirely new futuristic service, we consider this
opportunity to be a vital stepping stone towards the success of expanding Staples
not only as company, but also as a brand. The market potential is clear and
opportunity is present. For Staples to have this opening at the forefront of this
technological movement, we think it should not be considered lightly as to whether or
not they should at least attempt to establish some sort of position within it.
‘We don't grow unless we take risks. Any successful
company is riddled with failures.’
-
James E. Burke
(Kreitner, et al 1990)
5. Appendix
Figure 5
Geert Hofstede. 2011. United Kingdom – Geert Hofstede. Available From:
http://geert-hofstede.com/united-kingdom.html [Accessed: 14 December 2011]
Geert Hofstede. 2011. United States – Geert Hofstede. Available From: http://geerthofstede.com/united-states.html [Accessed: 14 December 2011]
Figure 6
First half of the year
Second half of the year
Figure 7
Adverbox, 2011, Pedigree ad » adverbox. Adverbox. Available From:
http://www.adverbox.com/ads/pedigree-3/ [Accessed: 5 December 2011]
Figure 8
Risk management plan:
-
Online competition
-
Customer changes
-
legal risks
-
Late launch date
-
Suppliers
-
Employees
-
‘Newness’ image
-
Educating customers
The risks concerned with Staples 3DGiftCo will be monitored throughout the launch
and Pre-launch management but some will have more potential damage to the
service therefore monitored more thoroughly.
6. References
Adverbox, 2011, Pedigree ad » adverbox. Adverbox. Available From:
http://www.adverbox.com/ads/pedigree-3/ [Accessed: 5 December 2011]
Beal, A. & Strauss, J., 2008. Radically transparent: monitoring and managing
reputations online. Chichester: John Wiley & Sons.
DesMarais. C., 2011, 3D Printing: Now Cheaper and Easier to Use Than Ever. New
York: Mansueto Ventures LLC. Available From: http://www.inc.com/christinadesmarais/entrepreneurs-3D-printing-now-cheaper-easier-to-use.html [Accessed: 6
Dec 2011].
Geert Hofstede. 2011. United Kingdom – Geert Hofstede. Available From:
http://geert-hofstede.com/united-kingdom.html [Accessed: 14 December 2011]
Geert Hofstede. 2011. United States – Geert Hofstede. Available From: http://geerthofstede.com/united-states.html [Accessed: 14 December 2011]
Innosight, 2008, The potential of 3D printing. Lexington: Innosight LLC. Available
From: http://www.innosight.com/blog/134-the-potential-of-3d-printing.html [Accessed:
30 November 2011].
Kazanjian, K., 1988, Relation of Dominant Problems to Stages of Growth in
Technology-Based New Ventures. The Academy of Management Journal, 31(2),
257-279.
Kim, Y., 2010, 3D Healthcare: Coming to a Hospital near you. Vodule. Available
from: http://www.vodule.com/?p=6921 [Accessed 3 December 2011]
Kirn, P., 2011, A Flute Made on a 3D Printer, and the Possibilities to Come.
California: Creative Commons Attribution. Available From:
http://createdigitalmusic.com/2011/01/a-flute-made-on-a-3d-printer-and-thepossibilities-to-come/ [Accessed: 6 December 2011]
Kreitner, R., Reece, B.L. & O’Grady, J.P., 1990. Business. 2nd Edition. United
States: Houghton Mifflin Co.
Leonard, D., McAdam, R., 2003. Corporate social responsibility. Quality Progress,
Vol.36 No.10.
Linton, I., 1997, Marketing Training Services. Aldershot: Gower Publishing Ltd.
Marn, M.V., Roegner, E.V. & Zawada, C.C. 2003. Mckinsey Quarterly. Pricing New
Products, 3, 40-49.
My Jewellers Place, 2011, Jewellery Industry. Available From:
http://www.myjewelersplace.com/categories/Jewellery-Industry/ [Accessed: 2
December 2011]
Neometrix, 2010, 3D printing to hit mainstream in five to 10 years. Lake Mary:
NeoMetrix Technologies, Inc. Available at:
http://www.3dscanningservices.net/News/3D%20printing%20to%20hit%20mainstrea
m%20in%20five%20to%2010%20years [Accessed: 25 November 2011].
Ogawa, S. & Piller, F.T., 2006. Reducing the risk of New Product Development. MIT
Sloan Management Review, 47(2), 65-72.
Ramachandran, S., 2005. Distribution and Sales Managment, 2nd Edition. New
Delhi: Allied Publishers Ltd.
Wang, B., 2011, The current and future economics of 3D printing and factory
production. Next Big Future. Available From:
http://nextbigfuture.com/2011/02/current-and-future-economics-of-3d.html
[Accessed: 2 December 2011].
6.1 Further reading
Bak, D., 2003. Rapid Prototyping or Rapid Production? 3D printing processes move
industry towards the latter. Assembly Automation, 23(4), 340 - 345.
Gibson, I., Rosen, D. W. & Stucker, B., 2010. Additive Manufacturing Technologies:
Rapid Prototyping to Direct Digital Manufacturing. New York: Springer Science.
Hughes, C., 2007, 3D opens up the desktop market. : ZCorpAvailable From:
http://www.zcorp.com/documents/192_2007-1108-Print%20Week3D%20Opens%20Desktop%20Market.pdf [Accessed: 7 Nov 2011].
Venuvinod, P.K. & Ma, W., 2004. Rapid prototyping: laser-based and other
technologies. Boston: Kluwer Academic.
Wertime, K. and Fenwick, I., 2011. Digimarketing: The Essential Guide To New
Media & Digital Marketing. Singapore: John Wiley & Sons Ltd.