A REPORT ON

3M.COM

SUBMITTED BY: SUBMITTED TO:

AMRITESH TEWARY PROF. PRAVIN PATIL

09BS0000220

3M was founded in 1902 in the Lake Superior town of Two Harbors, Minn. Five

businessmen set out to mine a mineral deposit for grinding-wheel abrasives. But the

deposits proved to be of little value, and the new Minnesota Mining and Manufacturing

Co. quickly moved to nearby Duluth in 1905 to focus on sandpaper products.

Years of struggle ensued until the company could master quality production and supply

chain. New investors were attracted to 3M, such as Lucius Ordway, who moved the

company to St. Paul in 1910. Early technical and marketing innovations began to

produce successes and, in 1916, the company paid its first dividend of 6 cents a share

The world's first waterproof sandpaper, which reduced airborne

dusts during automotive manufacturing, was developed in the early

1920s.

A second major milestone occurred in 1925 when Richard G. Drew, a young lab

assistant, invented masking tape - an innovative step toward diversification and the

first of many Scotch brand pressure-sensitive tapes.

In the following years technical progress resulted in Scotch® Cellophane Tape for

box sealing and soon hundreds of practical uses were discovered..

In the early 1940s, 3M was diverted into defence materials for World War II, which

was followed by new ventures, such as Scotchlite™ Reflective Sheeting for highway

markings, magnetic sound recording tape, filament adhesive tape, and the start of

3M's involvement in the graphic arts with offset printing plates.

In the 1950s, 3M introduced the Thermo-Fax™ copying process, Scotchgard™

Fabric Protector, videotape, Scotch-Brite® Cleaning Pads and several new electro-

mechanical products.

Dry-silver microfilm was introduced was introduced in the 1960s, along with

photographic products, carbonless papers, overhead projection systems and a

rapidly growing health care business of medical and dental products.

Markets further expanded in the 1970s and 1980s into

pharmaceuticals, radiology, energy control.

In 1980, 3M introduced Post-it® Notes, which created a whole new

category in the marketplace and changed people's communication and organization

behavior forever.

In the 1990s sales reached the $15 billion mark. 3M continued to develop an array

of innovative products, including immune response modifier pharmaceuticals;

brightness enhancement films for electronic displays; and flexible circuits used in

inkjet printers, cell phones and other electronic devices.

In 2004, sales topped $20 billion for the first time, with innovative new products

contributing significantly to growth. Recent innovations include Post-it® Super Sticky

Notes, Scotch® Transparent Duct Tape, optical films for LCD televisions, and a new

family of Scotch-Brite® cleaning products that give consumers the right scrubbing

power for a host of cleaning jobs.

The perfect match between India’s multifaceted customer profile and 3M’s diverse

range of products offering proven customers benefits led to 3M India being born in

1988 as Birla 3M Limited. The name of the company was subsequently changed to 3M

India Limited in Dec 2002.

The 3M technology solutions expertise has been tried and tested for performance,

safety, value & productivity in markets that include Aerospace, Railways, Highways,

Defense, Security, Mining, Health, Oil & Gas, Telecom and Marine in India and across

the globe.

3M's wide product portfolio is backed by the guarantee of innovation and performance

that has made 3M popular with millions all over the world. Today, 3M has over a 100

year track record of being one of the most innovative corporations worldwide. Fact is,

half the world's population today enjoys experiencing at least one of 3M's 50,000

products, either directly or indirectly, every day. So when you choose 3M, you can rest

assured that you have chosen a company that pursues international standards of

quality, reliability and consistency in every product & service detail, providing customer

value like never before.

3M in India has manufacturing facilities at Bangalore, Ahmedabad, Pune & Pondicherry

with more than 1600 employees. For the period Jan'09 to Dec'09, 3M India posted a

net sales of Rs. 8257 million with net profits of Rs 650 million. Over the past years, 3M

India has built an exhaustive list of satisfied customers and a reputation for unmatched

quality with over 6000 diverse products serving the following markets:

Industrial

Transportation

Electro and Communications

Healthcare

Display & Graphics

Safety, Security & Protection Services

Consumer & Office

3M India Ltd is a diversified manufacturer, technology developer and marketer of a

variety of products. The Industrial and Transportation business has products that

include tapes, a variety of coated and non-woven abrasives, adhesives, specialty

materials, components and products. The Health Care business segment's product

range includes medical and surgical supplies, medical devices, skin and wound care

and infection prevention products. The Safety, Security and Protection Services

business segment's offerings include personal protection products, brand asset

protection solutions, border control products, passive fire protection products for

industries and commercial establishments, and track and trace products. The Consumer

and Office business segment's products include office supply products, stationery

products and home care products. The Display and Graphics business segment's

products include films, inks, digital signage systems and related products.

India Locations3M in India : Corporate Office: 3M in India - Innovation Centre:

3M India LimitedConcorde Block, UB City, 24Vittal Mallya RoadBangalore - 560001Tel No : 0091-80-22231414 / 66595759Fax No : 0091-80-22231450

3M India - Innovation CentrePlot No. 48-51, Electronics CityHosur RoadBangalore - 560100Tel No : 0091-80-2852 0203/ 6659 5999Fax No : 0091-80-2852 0157

3M India : Delhi Office 3M India : Mumbai Office

3M India Limited2F,M6,Uppal TowerJasola District CenterNew Delhi - 110076Tel No : 011 405762 01/02/03/04Fax No : 011 4057 6203

3M India LimitedMakhija Chambers, 3rd floor,196 Turner RoadBandra,Mumbai - 400 050.Tel No : 022 - 2655 1883 / 2655 1884Fax No : 022 - 2655 1881

3M Plant at Bangalore: 3M Plant at Ranjangaon, Pune

3M India LimitedPlot No. 48-51, Electronics CityHosur RoadBangalore - 560100Tel No : 0091-80-2852 0203/ 6659 5999Fax No : 0091-80-2852 0576

3M India LimitedB-20,MIDC-Ranjangaon,Tal:Shirur,Pune-412201Tel No : 021-38663726

3M Plant at Ahmedabad 3M Plant at Pimpri, Pune

3M India LimitedPlot No.8. Moraiya Indl AreaOff Sarkhej Bawla HighwayMoraiya, Tal. Sanand,Ahmedabad - 382 213Tel No : 0091-2717-250782/3Fax No : 0091-2717-250781

3M Electro & Communication India Pvt. LtdNo.145, Mumbai-Pune RoadPimpri, Pune - 411 018Tel No : 0091-20-2730 1100/2730 1164Fax No : 0091-20-2742 6380 / 2742 6385

3M Plant at Pondicherry

3M Electro & Communication India Pvt. LtdPIPDIC Indl. EstataeUnit II, Plot No. A63 & 64MetupalayamPondicherry - 605 009Tel No : 0091-413-2278 617Fax No : 091-413-2279 403

PRODUCTSComputer Privacy FiltersComputer privacy Filters from 3M offer a comprehensive portfolio, designed to offer

privacy protection, improve visual performance and help prevent damage to computer

screens.

Extensive travel by business professionals has increased the need for data privacy

while on the move. 3M Computer Privacy Filters have great utility in various industry

verticals like Banking, Finance and Information Technology. Learn more about Markets

Served by 3M Computer Privacy Filters.

Privacy Filters for Frameless Notebook & LCD Monitors

Privacy Filters for Desktop

Privacy Filter ProductsThe 3M Privacy Filter is an innocuous, thin film that can be slipped effortlessly onto your

desktop or laptop screen. The 3M Privacy Filter is an effective privacy solution

especially in high-traffic areas like customer counters and front desks, and in other

areas like workstations and research laboratories.

While the screen appears bright and clear to the user directly in front of the screen, the

3M Privacy Filter ensures that the screen appears dark and totally unreadable to

everyone else around the computer, keeping your on-screen data secure.

.

Privacy Filters for Frameless Notebooks & LCD Monitors

3M™ Notebook/LCD Computer Privacy Filters are availabe in sizes to fit most

notebooks and LCD Monitors. They come with a easy-on, easy-off attachment system.

Privacy Filters for Desktops

Help protect your confidential information with either a framed or unframed privacy filter

from 3M. Great for open wall cubicles and those located in high traffic areas.

Privacy Computer Filter models feature a flat frame design. User sees screen data

clearly while onlookers see only a dark screen when viewed from the side. 3M PF400

filters offer up to 95% glare reduction and block up to 99.9% of ELF/VLF E-field

radiation when properly grounded.

3M™ PF400L Privacy Computer Filter PF400L

Offers screen darkening to protect your confidential data from casual observers.

3M™ PF400LB Privacy Computer Filter, Black Frame

Privacy, screen protection and glare reduction in one computer filter.

3M™ PF400XL Privacy Computer Filter

A perfect choice for privacy, reduced glare and LCD screen protection.

3M™ PF400XLB Privacy Computer Filter, Black Frame

Excellent for high traffic areas or low wall cubicles.

3M™ PF400XXL Privacy Computer Filter

Excellent privacy protection and approved by the AOA for glare reduction.

3M™ PF400XXLB Privacy Computer Filter, Black Frame

Helps protect your confidential company and personal employee data from prying eyes.

3M™ Notebook/LCD Privacy Computer Filters are available in sizes to fit most notebook and LCD monitors. They now come with a new easy-on, easy-off attachment system.

3M™ PF12.1 Notebook Privacy Computer Filter

Work in high traffic areas with greater confidence knowing 3M™ Privacy Filters are helping to keep your company data secure.

3M™ PF12.1W Widescreen Notebook Privacy Computer Filter

Helps protect widescreen LCD screens from damage while it protects your

confidential information.

3M™ PF13.3 Notebook Privacy Computer Filter

Helps protect your private information from falling into the wrong hands and it helps shield your laptop screen from damage.

3M™ PF13.3W Widescreen Notebook Privacy Filter

3M™ PF13.3W fits popular widescreen notebook computers and allows you the freedom to work where you want, when you want.

3M™ PF14.1 Notebook Privacy Computer Filter

Perfect for laptop computer users on business trips. Allows you to work with confidence on airplanes and in busy public venues.

3M™ PF14.1W Widescreen Notebook Privacy Computer Filter

Provides privacy protection for business travelers allowing them to work on airplanes and in airports.

3M™ PF15.0 Notebook/LCD Privacy Computer Filter

Privacy protection and screen protection in one computer filter.

3M™ PF15.4W Widescreen Notebook Privacy Computer Filter

Widescreen privacy protection for new widescreen notebook computers.

3M™ PF17.0 LCD Privacy Computer Filter

Screen darkening privacy protection helps prevent prying eyes from viewing your screen.

3M™ PF17.0W Notebook Privacy Computer Filter

Can help business travelers increase productivity while on the road knowing their company data is protected from onlookers.

3M™ PF18.1 LCD Privacy Computer Filter

Great for desktop LCD monitors in high traffic office environments. User sees the screen clearly while onlookers see only a darkened screen.

3M™ PF19.0 3M LCD Privacy Computer Filter

Privacy and screen protection in an easy to use computer filter.

3M™ PF19.0W 3M Widescreen LCD Privacy Computer Filter 19.0 in

Privacy protection for widescreen formatted laptops with a 19" diagonal screen measurement.

3M™ PF20.1 3M LCD Privacy Computer Filter

Privacy feature will help keep your work secure and free from wandering eyes plus the filter helps protect the screen from damage an fingeprints.

3M™ PF21.3 Privacy Filter for Desktop LCD Monitors

3M™ has privacy filters for large format desktop monitors.

3M™ PF21.6W Widescreen LCD Privacy Computer Filter 21.6 in

Keeps confidential information safe in high traffic areas.

3M™ PF22.0W 3M Widescreen LCD Privacy Filter 22.0 IN

3M™ privacy technology helps companies comply with Federal privacy laws requiring protection of personal and confidential information.

MARKET SERVED

Globalization and business transcending geographies have resulted in increased

transactions involving sensitive data. Extensive travel by business professionals

have raised the need to maintain privacy in high traffic areas.

3M Computer Privacy Filters address this critical business requirement across

various enterprises spanning Finance/ Banking, IT Organizations, Call Centers

and Corporate Organizations.

Finance/Banking

From bank counters and ATMs to offices and customer-service desks, the finance

sector is where transaction and exchange of privileged information happens on a

daily basis. Installing or updating security mechanisms that minimize the risk of

identity theft can be a painstaking and expensive process. With the totally

effective 3M Privacy Filters, you can ensure that privacy and security is

maintained at its optimum best in desktops and ATMs located in remote areas.

What this also means is that the filters can be easily fitted in-situ, to ensure that

business never stops.

IT Organizations

With more and more IT organisations moving on into R&D related projects from

service-based portfolios, data security and privacy becomes a far higher concern.

In today’s highly competitive arena, it becomes that much more important to

ensure that sensitive information stays with the people who are entitled to it.

Whichexplains why a large number of reputed IT organizations are leaning

towards making 3M Privacy Filters a mandatory solution in all their nationwide

offices

Call Centers

With the recent surge of identity theft crimes cropping up from call centers in India,

decision makers are waking up to the fact that it is a far better proposition to fortify

security infrastructure before a serious concern becomes a full-blown calamity.

Installation of 3M Privacy Filters ensures that chances of unintentional disclosure

are greatly minimized and accountability is improved. The ease of installation

without any requirement of labour makes it the easiest and most viable solution to

incorporate.

Corporate Organizations

A large number of corporates are realizing the importance of keeping private data,

private. HR recruitment, project management, business acquisition and other key

profiles require data security that is simple and yet complete. 3M Privacy Filters

for all desktop PCs and laptops in an organization ensure just that.

Business Travelers

Fellow-passengers in the flight, or strangers in the lobby or restaurant, peering

into your laptop screen are uncomfortable situations experienced by virtually every

business traveler. 3M offers a simple and effective solution to this problem -

without cumbersome contraptions or procedures. Just slip in the 3M Privacy Filter

and work confidently with the assurance that no one will ever be able to see what

is on your screen.

B2B Commerce: How to Start

It's easy to get involved in B2B commerce -- just join a marketplace. By taking

some simple preparations and devoting a little energy to choosing the right

marketplace and the right market maker, you can be up and running in no time.

While some companies may choose to build their own marketplace from scratch,

most will find it unnecessary. Building a marketplace takes energy, commitment

and an active outreach program to enlist buyers and/or sellers. Most companies

find that an existing marketplace with an established and growing community can

best serve their needs.

Buyer and Seller Preparations

Joining a marketplace is a straightforward task. Sellers and buyers must prepare,

but preparations are minimal. The market maker is responsible for the bulk of the

more time-consuming administrative and operational tasks.

From a seller's perspective, preparations include:

Register - supply a profile for user searches and filters

Put products and services online - create an electronic catalog

Determine sales terms - pricing, discounts, preferred buyers

Determine financial settlement and logistics - invoicing, payment

terms, shipping

Determine promotion plans - advertising, sales, classifieds

Determine integration needs between marketplace and back-office

systems

From a buyer's perspective, preparations include:

Determine procurement needs - the types of goods to be sourced

Determine purchasing policies - authorizations, approvals, access

rights, preferred suppliers

Determine financial settlement and logistics needs - payment,

shipping, receiving

Determine integration needs between marketplace and back-end

systems

Choosing the Right Marketplace

With so many marketplaces, companies must take a little time to choose the right

one. Sometimes the choice will be obvious -- the marketplace where most of your

buyers and suppliers are found is a good match. In general, however, companies

should consider the following attributes when selecting a marketplace.

The type of marketplace

Decide whether a public or private marketplace is the better forum, and whether a

broad or narrow focus is more appropriate. Public marketplaces are good choices

for sellers and buyers interested in ordinary, non-production goods and services.

Private marketplaces may offer sellers access to more targeted buyers, and

buyers access to sellers with specialized goods. Vertically focused marketplaces

may be best for specialty products or services, raw materials or industry-specific

goods. Horizontal marketplaces may offer the largest community of sellers and

buyers and the greatest cross-section of goods. A veterinary supplier, for

example, would prefer a vertical marketplace targeted at the veterinary industry

over a horizontal marketplace aimed at indirect goods. But a manufacturer of

office cubicles might lean towards a horizontal marketplace with an office furniture

and equipment category. Finally, marketplaces that can interact with other

marketplaces are ideal because they combine the advantages of several different

types of marketplaces.

The characteristics of the marketplace

The marketplace must have attributes that encourage usage and permit

transactions to complete successfully. Key characteristics for success include:

Easy to use so that members can become proficient quickly

Intuitive interfaces, reports and tools to reduce the learning curve

Critical mass of participants so buyers can find the products and services they

need, and sellers can locate interested buyers

Marketplace-to-marketplace interaction to give participants access to a larger

or smaller "virtual" marketplace and audience as desired

Functionality rich enough to perform the range of commerce tasks from

searching, sourcing, bidding, dynamic pricing, tracking, auditing and

authorization management to catalog management.

The cost to join the marketplace

Joining an existing marketplace is usually not an expensive proposition. Today,

most marketplaces charge reasonable membership fees that may even be waived

in some cases. Most marketplaces also charge suppliers nominal transaction fees

or commissions on sales facilitated by the marketplace as well as advertising fees.

Nevertheless, members must be able to justify any initial and recurring costs,

including internal labor costs, to join a marketplace. Tools or services, like

authorization management and catalog management tools, offered by the market

maker can help defray set-up costs. Once a company is actively using the

marketplace, it may decide to make additional investments in integrating its back-

office systems with the marketplace.

 

Choosing the Right Market Maker

The party sponsoring the marketplace can make or break it. It is important to

consider the qualities of the market maker to evaluate the chances of success for

your marketplace. As more B2B marketplace providers emerge, it is critical that

companies perform their own diligence to assess the long-term viability of their

selected marketplace. Essential characteristics for a market maker include:

B2B knowledge

A strong grasp of B2B commerce from a business and technical perspective

translates into cutting edge solutions for your marketplace.

Proven track record

A market maker with a history of prosperous engagements and satisfied

customers is likely to repeat its successes and perform well in the future.

Successful business model

A market maker with a winning business model will be financially successful and

able to weather market fluctuations.

Critical mass

The marketplaces sponsored by the market maker should have, or be on a path to

attain, a critical mass of participants in order to provide liquidity in the

marketplace. Low participation is one of the foremost obstacles to marketplace

success.

Plan for growth and support of marketplace

Since marketplaces must grow to succeed, the market maker should have a

scalable operational model able to support the needs of its marketplaces.

Willingness to make marketplaces successful

Reaching critical mass is a criterion for marketplace success. A market maker

should have plans to grow its membership base and actively support its members

in their efforts to enlist additional participants by providing a comprehensive set of

marketing services and programs.

Marketplace-to-marketplace interaction

The larger the marketplace, the more each party gains. A market maker that has

access to and can connect diverse marketplaces gives participants the

opportunity to reach a wide audience without sacrificing their membership in more

specialized marketplaces.

Superior customer service

Market makers that provide responsive and proactive customer service resolve

issues quickly, disperse needed information in a timely manner and ensure the

success of each member in using the marketplace.

Broad value-added services

To extract the full benefits of a marketplace, members should look for a market

maker that offers value-added services such as industry news, chat rooms,

wireless capabilities, financial services and more.

Strong partnerships

A market maker with ties to multiple marketplaces, other market makers and

technology companies can use those relationships to offer additional services to

its members.

From all accounts, B2B commerce is starting to explode. It's easy to understand

why. B2B marketplaces offer instance access to a wide and interested audience,

increased efficiency in purchasing and sales, streamlined buying and selling

processes, reduced overhead and enhanced revenues. The benefits are high and

the initial investment is low. And, if you pick the right marketplace and market

maker, it's simple to get started.

As you look around, you'll find increasing numbers of your customers, suppliers,

partners and competitors trading through B2B marketplaces. They will receive

their share of the $ 3 trillion in projected sales. They will benefit from the up to

$480 billion in projected efficiency savings. Shouldn't your company be among

them? It can be. All you have to do is be in the right place -- as a member of a

B2B marketplace!

There are basically four online platforms that companies can use to engage in

commerce.

Web presence

Simple web sites promote product and brand awareness, but present mainly static

information -- marketing literature or catalogs. These sites lack built-in commerce

capabilities and therefore can produce only indirect financial benefits. They often

have a hard time attracting enough visitors or generating qualified sales leads.

Buyers have to perform their own research to find these sites.

Web storefronts

Many second or third-generation web sites have order-taking capabilities. These

storefronts have the potential to generate direct financial benefits, but without a

high flow of visitors, the benefits won't materialize. The burden is on prospective

purchasers to find these sites, and most are consumer-oriented rather than

business-oriented.

Supply chain applications

From extranets to virtual private networks, companies adopt supply chain

applications to strengthen their ties with buyers and suppliers. These point

solutions permit one-to-one commercial transactions with existing partners, but

are not designed to market products, widen an audience or generate new sources

of revenue.

B2B marketplaces

B2B marketplaces are business-oriented platforms where buyers and sellers can

meet to transact business. They are geared specifically to create and support

wide communities of interested purchasers and suppliers. For example, Hilton’s

procurement marketplace unites buyers at more than 1,700 properties with

hundreds of suppliers. Likewise, Honeywell’s myfacilities.com marketplace is

building a large-scale community of facility managers, contractors and suppliers.

Requiring little implementation effort or investment, B2B marketplaces allow

buyers and sellers to reduce their purchasing and sales overhead and increase

their efficiency. Sellers can also capture more sales and increase their revenues.

 

MY ANALYSIS

3M was founded in 1902 in the Lake Superior town of Two Harbors, Minn. Five

businessmen set out to mine a mineral deposit for grinding-wheel abrasives. But

the deposits proved to be of little value, and the new Minnesota Mining and

Manufacturing Co. quickly moved to nearby Duluth in 1905 to focus on sandpaper

products. It entered the Indian market in 1988 as Birla 3M limited.

What I personally feel is 3M is lacking a proper advertising formula. Yes it’s true

that the company is reaching out for the B2B transactions but when it comes to

B2C it lags behind. It has various products like:

Consumer and Office Business

Display and Graphics Business

Electro and Communications Business

Health Care Business

Industrial and Transportation Business

Safety, Security and Protection Services Business

The company majorly focuses on B2B transaction but it should also cater to the

B2C segment. It should go for mass advertising rather than concentrating on a

particular segment. Moreover the company lags on trade promotion as I could not

find sufficient data on this part. So it should also start some programs to boost

their trade. It can even go for intermediaries or for franchisees etc. to cover a large

area.

The company’s values signify:

Act with uncompromising honesty and integrity in everything we do.

Satisfy our customers with innovative technology and superior quality, value

and service.

Provide our investors an attractive return through sustainable, global growth.

Respect our social and physical environment around the world.

Value and develop our employees' diverse talents, initiative and leadership.

Earn the admiration of all those associated with 3M worldwide.

When we look at the company’s performance it’s beyond doubt that it is

performing well. The figures backs this statement:

Global sales: $23 billion.

International (non-US) sales: $14.6 billion (63 per cent of company's total).

Operations in more than 65 countries.

3M products sold in nearly 200 countries.

75,000 employees globally.

Further the company should also look for:

Worldwide economic and capital markets conditions;

The Company's credit ratings and its cost of capital;

Competitive conditions and customer preferences;

Foreign currency exchange rates and fluctuations in those rates;

The timing and acceptance of new product offerings;

the availability and cost of purchased components, compounds, raw

materials and energy (including oil and natural gas and their derivatives)

due to shortages, increased demand or supply interruptions (including

those caused by natural and other disasters and other events);

The impact of acquisitions, strategic alliances, divestitures, and other

unusual events resulting from portfolio management actions and other

evolving business strategies, and possible organizational restructuring;