New 3M Aerosol LaunchJanuary 1, 2010

3M™ Series 20 Aerosol Adhesives

3M™ Inverted Aerosol Adhesives

What’s new?

• 3 New Premium line Spray Adhesives

• “Added Value” Products– Inverted Hi-Strength 90

– Inverted Foam Fast 74 Orange

– Inverted Polystyrene 78

• 3 New Series 20 Spray Adhesives

• Competitive Price Point products– Woodworking 20

– Foam and Fabric 24

– Multi-Purpose 27

3M™ Series 20 Aerosol Adhesives

3M™ Inverted Aerosol Adhesives

Why use an Aerosol Adhesive?• Ultimate convenience in a sprayable adhesive

– No equipment– No mess– No set up time– Minimal training– Extremely portable

• Small jobs (doesn’t mean small volume!)– Multiple stations– Precise placement

• Portability– Compliments bulk or cylinder adhesives– Need to apply away from spray station– Jobsites

• All about Market Segmentation and opening market space for increased sales

• Market opportunity is doubled• Understand your customers

• 3M™ Inverted Aerosols: Premium Line– Line extension to existing premium aerosols: 74, 78, 90– Value added products – Top tier customers– Typically requires a demo to sell these

• Customers see the WOW!

• Series 20 Aerosols– New product portfolio– Competitive price point– Middle tier customers

New 3M™ Aerosol Spray Adhesive Launch

A

B

C

Market Segmentation

Tier B

Tier A

Tier C

-Private label-Low brand recognition-Large quantities-Lowest price

-Relationships-Brand recognition-Confidence-Trust-Shelf space-Competitive price

-Premium perception-High performance-Expect premium service -Expect tech support, data, testing, spec in-Expect premium price

Tier Strategy – Market Space - Examples

Product Overview – Inverted Aerosols

A

B

C

Market Segmentation

Traditional spray pattern Inverted

spray pattern

• Premium line inverted aerosols– WOW factor– 3 Proven & high performance formulations– Inverted spray technology

• Sprays upside down• New to the world for adhesives• Product differentiation• No competitors offer this

– Increase productivity• High output• Wide patterns

– Reduced waste • 100% adhesive use

– Improved ergonomics • Comfort actuator

3M™ Hi-Strength 90 Inverted Spray Adhesive

• Fast tacking

• High temperature resistance

• High moisture resistance

• Bonds many substrates:– HPL

– Concrete

– Polyethylene

– Wood

– Metals

– MDF

Target Applications

• Construction

• Woodworking– Bench top applications or

lower

• Furniture

• Marine

• Seaming polyethylene

• Aluminum and metal bonding

Traditional spray pattern Inverted

spray pattern

3M™ Inverted Foam Fast 74 Orange Spray Adhesive

• Fast tacking

• Foam tearing strength– Flexible urethanes– Latex foams

• Soft glue line

• Non-dimpling

• Bonds many substrates:– Foams– Fabrics– Wood– Metal– Non-vinyl plastics

Target Applications

• Furniture

• Upholstery

• Marine

• Automotive

• Seat/chair manufacturing

• Acoustics

• Bedding

• Construction

3M™ Inverted Polystyrene 78 Spray Adhesive

• Does not degrade polystyrene• Stronger than foam itself• Expanded and extruded

polystyrene• Single or double surface bonds• Bonds many substrates:

– Polystyrene

– Concrete

– Wood

– Fiberglass

– Plastics

Target Applications

• Construction

• Packaging/crating

• Design Sets

• Refrigeration manufacturing

• Spa manufacturing

• HVAC applications

• LEED projects

Product Overview – 3M™ Series 20 Aerosols

• 3M™ Series 20 Aerosol Adhesives– 3 new products

– Competitive price point• < $3.99 distributor cost

– Strong 3M brand recognition

– Trust in brand

– Confidence in products

– Good quality products

– Strong relationships

A

B

C

Market Segmentation

3M™ Woodworking 20 Spray Adhesive

• Fast grabbing

• Industrial grade

• Variable width lace

• Bonds many substrates:– Laminates– Metals– Plastics– Rubber

• Multi-purpose lace adhesive

• Competitive price point

Target Applications

• Woodworking

• Furniture

• Construction

• Transportation

• Marine

• General Industrial

A

B

CMarket Segmentation

3M™ Foam & Fabric 24 Spray Adhesive

• Aggressive tack• Industrial grade• Variable width lace• Bonds are stronger than

foam itself• Bonds many substrates:

– Foam

– Fabrics

– Metal

– Wood

• Competitive price point

Target Applications

• Furniture

• Upholstery

• Marine

• Automotive

• Seat and chair manufacturing

• Bedding

• AcousticsA

B

CMarket Segmentation

3M™ Multi-Purpose 27 Spray Adhesive• Fast tack• Versatile light weight

adhesive• Industrial grade• Mist spray pattern• Bonds many

substrates:– Paper– Cardboard

– Fabrics– Soft foams

• Competitive price point

Target Applications

• General Industrial

• Packaging

• Labeling

• Printing

• Paper

• Third hand

Market Segmentation

A

B

C

Aerosol Positioning Strategy

Strategy

•Lead with Tier A product. Show value with the current portfolio and innovation with the inverted aerosol products

•3M offers alternatives solutions like cylinders, bulk, and water-based adhesives

•If the customer has cost concerns, and is not concerned with premium performance, close with the Series 20 product line. Good performance, great cost/value.

Tools available• New literature for Inverted and Series 20

• New distributor rep sales guides

• Training videos on Youtube

• SGF-KEP-Printstore

• Competitive cross reference tools

• Target SIC’s

• Spray Away program– Apr thru Oct

Three Unique Stocking Programs

• Local distributor inventory is critical for aerosol sales

• Series 20/Inverted Aerosol Intro Deal– Available thru March 31, 2010– Includes 2 cases each of 6 new SKU’s– Pallet pricing for 12 case order

• Inverted Aerosols only– Available thru June 30, 2010– Pallet pricing for ½ pallet quantities– No mix/match– ½ pallet equals 384 cans

• Series 20 Aerosols only– Available thru December 31, 2010– Pallet pricing for ½ pallet quantities– Mix/match allowed between Series 20 products– ½ pallet equals 432 cans

+

Target SIC codes

SIC Codes by rank

Foam Fast 74 Super 77 Polystyrene 78 Hi-Strength 90

5085 5085 3444 3732

2521 2752 1542 2431

3732 5113 5085 2434

9711 3714 3585 2521

2512 3732 3086 7389

3086 5084 3089 5031

  3089 3272 3713

  2759   3444

  2653   2542

  5199    

  3585    

Aerosols = Money Machineor…

Why distributors should sell 3M Aerosols!!!

3M™ Inverted Hi-Strength 90 example:

• Pallet buy $10.97/can • $131.64/case• Find 1 new customer per week

for 50 weeks using 1 case/month

• You continued through year 2 (for obvious reasons)

3M™ Multi-Purpose 27 example:

• Pallet buy $3.41/can • $40.92/case• Find 1 new customer per week

for 50 weeks using 1 case/month

• You continued through year 2 (for obvious reasons)

Aerosols = Money Machineor…

Why distributors should sell 3M Aerosols!!!

3M™ Inverted Hi-Strength 90 Assumptions

• 25% GP• Gain 1 new customer/week• Use 1 case of aerosols/month• Selling Price = $131.64/case• First year sales = $44,494

– YR 1 Gross Profit $11,124– 338 cases sold

• Second year sales = $171,132– YR 2 Gross Profit $42,783– 1300 cases sold

3M™ Multi-Purpose 27 Assumptions

• 25% GP• Gain 1 new customer/week• Use 1 case of aerosols/month• Selling Price = $40.94/case• First year sales = $13,838

– YR 1 Gross Profit $3,459– 338 cases sold

• Second year sales = $53,222– YR 2 Gross Profit $13,035– 1300 cases sold

3M™ Aerosol Adhesives:The complete portfolio for all your customer needs