3M Respirator Portfolio Optimization Strategy Study

Accompany with Chinese fast industrialization in recent years, air and water pollution drew whole society’s attention, wide discussion were also aroused by these issues. According to 3M’s survey that 1/4 Chinese territory and approximately 0.6billion Chinese people have been more or less affected by air pollution. Till the end of 2014, the market size of consumer respirator and mask in china became to 1,3billion RMB with around 20% CAGR. However, when the time comes to 2015, this emerging market suddenly cools down as continuous PM2.5 heavy polluted day significantly reduced and anti PM2.5 protection awareness is still at very low level, this makes major manufacturers quite upset. For example,3M respirator is always the leading brand in china with stable market share (around 50%). However, being affected by quick change of the market environment and low consumer protection awareness, the business is currently in a stagnation status.The topic is aiming to help 3M to address product portfolio issue under the fact that air pollution will at least continuously exist in near future. It will also help the company to figure out how to drive the market growth, providing better product/service, raising up the awareness of air pollution concern as well as choosing the proper respirator. The topic will focus on three pillars-market/consumer/products and build up related data model to accomplish a three steps research project. By implementing the research project which will cover 4 key cities and around 2,000 respondents, it will help to better understand overall market status and trend, find potential users in the step I. Using qualitative method-focus group to further dig out unmet consumer needs, attitude, usage barrier as well as product concept which is welcomed by consumers will be the second stage. At the end of the project, the most potential product concept will be proved by a large sample size quantitative research. According to the data model and final outcomes of the research, consequently the direction of 3M new product development and portfolio optimization strategy will be worked out based on company’s strategical plan.