Marketing Management of Formlabs: Case Study Analysis and Strategies

This report provides a comprehensive analysis of Formlabs' marketing management, focusing on its 3D printer market. It examines the factors influencing marketing requirements, the role of the Form 2 in Formlabs' product portfolio and business strategy, and the relevant market segments. The report evaluates Formlabs' sales experiences with the Form 1 and Form 2 products, highlighting the importance of e-commerce and direct sales. It also assesses the company's approach to lead generation and customer relationship management. The report concludes with strategic recommendations for the development of the Form 2 go-to-market strategy, including strategic alliances, product testing, targeted marketing, and staff training. The analysis considers the competitive landscape and provides insights into optimizing Formlabs' marketing efforts for continued growth. The report is designed to assist students with their marketing studies, and is available on Desklib, a platform that provides past papers and assignment solutions.

Running head: MARKETING
Marketing management of Formlab case study
Name of the student
Name of the university
Author note

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Table of contents
1. Factors affecting marketing requirements in Formlabs’ 3D printer market..........................2
2. Role of the Form 2 in Formlabs’ product portfolio and business strategy.............................3
3. Segments relevant to the Form 2............................................................................................4
4. Evaluation of Formlabs’ experience regarding sale of Form 1 and Form 2 product.............5
5. Recommendations for development of Form 2 go to market................................................6
References..................................................................................................................................8
Bibliography...............................................................................................................................9

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1. Factors affecting marketing requirements in Formlabs’ 3D printer market
The 3D printing market of Formlab is comprised of 20% market share for the
consumer electronics, 20% share for the automotive and 15% for the medical devices. North
America accumulates the 40% share of the 3D printer sales. The second position is occupied
by Europe, where the shares are 28% and Asia Pacific accounting for 27% shares. In the era
of 2014, two third of the manufacturers had access to 3D printing (Formlabs.com, 2019). One
fourth of the manufacturers were using it to prototype and one tenth of the manufacturers
preferred it for both prototyping the finished products. In the year of 2015, Stratasys attained
accolades and grow by accumulating 30% share of Formlab. This is in terms of the sales
revenue.
In comparison to this, the 3D systems comprised of 24%. This was accompanied by
the 100 smaller suppliers, distributors and retailers. By 2015, the shares encountered a drastic
decline. This contradicts the broad supply chain network through which the services are
levied to the clients and the customers. As a matter of specification, the distribution channels
include wholesale dealers and equipment resellers. Distribution of computers and other office
equipment generated a revenue of $250 billion in the year of 2015 (Formlabs.com, 2019).
Purchasing the products manufacturers and importers diversified the products. Value added
resellers (VAR) adopted by the wholesalers for selling, reflected the nonexclusive
relationship between the suppliers and the personnel.
Mention can be made of sales forecasting, telemarketing and inbound orders, which
shaped the market of Formlab. Discounts on the raw materials of the systems acted assistance
in influencing the purchasing power of the suppliers. Training acquainted the stakeholders
and shareholders about the actual market scenario in which Formlabs is operating. According
to Zimmerman and Blythe, (2017), adopting flexible transport systems for the distributing the

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3D printers have acted assistance towards offering greater values. This approach has assisted
in achieving higher competitive advantage Data, Toshiba, and Trafigura. All of these brands,
collaboratively holds 75% shares of the industry revenue.
2. Role of the Form 2 in Formlabs’ product portfolio and business strategy
Introduction of Form 2 drastically increased the sales revenue of Formlabs in the
2016. However, in the first month, the sales numbers were not according to the expectations.
Survey was conducted, according to which, more than 50% of the samples preferred the Form
2. The premiers of Form 2 initiated after the development process was stabilized. Prototypes
of the Form 1 and Form 1+ were used for preparing the elements of the Form 2. This was
according to the strategic planning, which was prepared for the innovating the standards and
quality of the printers. Tests and experiments were performed, which indicates high speed,
flexibility and reliability (Formlabs.com, 2019). The estimated price of the Form was $3499,
which seemed apt in terms of its functions. According to the assumptions and claims, the
Form dramatically increased the sales revenue. This is in terms of the high quality prints,
satisfying the needs of the customers.
Easier set up, usage and supply chain network are the elements, which Formlabs
infused in the Form 2. As a matter of specification, mention can be made of the automatic
resin system, touch screen controls, Preform software for uploading the CAD files and WiFi,
which acted as the cornerstone towards segmenting the targets of businesspersons and
students. This approach falls under the strategy of marketing mix for identifying the target
audience, adding focus into the business operations. Simplification in terms of usage is
effective in terms of increasing the shelf life of the Form 2 printers (Formlabs.com, 2019).
Consistency was maintained in the product portfolio for the resin systems. This was in
terms of catering to the sales volume of a particular segment. Resin systems projected higher

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margins as compared to the printers. Formlabs grabbed this opportunity in terms of venturing
into new markets for increasing the sales revenue.
Considering the responses of the target buyers in the social networking sites would
help Formlabs in influencing their buying power and decision. Rating their response can be
one of the means for respecting the opinions of the buyers. Organizing contests would be
productive in terms of assessing their approach towards the launched products. Surveys and
feedbacks would help in making the buyers an asset for the company. Providing access to the
ecommerce sites would be an effective option in terms of expanding the supply chain
network. Uploading the detailed information of the printers on the social networking sites and
official websites would reduce the concerns regarding the benefits, they can extract from
investing in the brand.
3. Segments relevant to the Form 2
The relevant segments of Form 2 were universities and enterprise clients. Integration
of the corporate print farm with multiple printers attracts the universities and the enterprises
in terms of investing in the services of Formlabs. Selling of the service plans, including
training sessions, telecalling support and hardware replacement are the means through which
the purchasing power of the buyers were influenced. Along with this, the target segments also
comprised of engineers, product designers, higher educational institutions, digital artists and
architecture, jewelry designers, medical and research firms and dentists (Formlabs.com,
2019).
Mention can be made of the prosumers, who were both end users and buyers. They
were authorized by the corporates in terms of making the purchases. According to the

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previous business strategy, 3D printing information was outsourced to the external vendors.
Offering in-house solutions, matching with the quality and speed helped in achieving loyalty,
trust and dependence from the clients and the customers. In case of the engineers, mention
can be made of the provisions for services like producing ear buds, protective smartphone
cases, and control panel knobs of the cars among others. Countering this, Mansour and
Johnston, (2018), it can be said that lifestyle, income, affordability and preference are the
crucial elements in terms of segmenting the buyers. For this, social media marketing is
productive in terms of mapping the behaviour of the customers towards the levied strategies.
“Go to the market scheme” can be related to the act of luring the buyers for investing
in the services. Business models proposed by Porter and Kramar is assistance for Formlab in
terms of generating value through the sale of innovative printers. Mention can be made of the
software and WiFi, which establishes linkage between the society and the business.
Installation of privacy cookies and policies in the software would be effective in terms of
luring the clients and the customers towards the services (Formlabs.com, 2019).
4. Evaluation of Formlabs’ experience regarding sale of Form 1 and Form 2 product
According to the report of 2015, majority of the sales for Formlabs was direct from
the business to the customers. Absence of third party intervention proved beneficial in
enhancing the security of the stakeholders and shareholders. Half of the sales originated from
e-commerce, reflecting the role of information technology, revolutionizing the business.
Inside sales team contributed through their efforts towards increasing the profit margin.
Mention can also be madeof the channel partners of Europe and Asia. Online marketing
helped Formlab to conduct media coverage for the product launches (Formlabs.com, 2019).
Typical example can be cited of the blogs, press release and videos for enhancing the
awareness of the customers regarding the newly launched products.

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In-house creative agency placed focus on the enhancing the brand image and public
relations. However, less focus was placed on the aspects of lead generation, lead tracking,
conversion rates and quantitative analysis. Improper approach towards these aspects acted as
an obstacle for Formlabs in terms of forecasting the sales, based on the demand and supply of
the 3D printers. Advertisements were purchased on social media and search engines. In
proportion to this, tracking of the incoming services and requests were not adequate.
According to Altıntas et al., (2017), the claims of the personnel, the experience with the
inbound sales was positive. Along with this, transactions for increasing the sales revenue.
Creation of the e-commerce websites helped in selling the Form 1 printers. Within
this, mention can be made of the provisions of extra pay, resins, optional service plans and
credit card online payment systems, which possessed flexibility in terms of influencing the
purchasing decisions of the customers. Free samples for the 3D printed objects are the typical
evidence for this. In terms of the inside sales, reference can be cited of the specialists, who
did not earn any incentives. Collaborative sales approach was maintained in terms of
enhancing the speed and flexibility of the business processes according to the specific
requirements. Stability in the workforce of the sales representative resulted in the positive
outcomes in the form of upgrading the standards and quality of customer service. In spiteof
the absence of selling script, Formlabs emerged successful in the digitalizing the parameters
of mechanical engineering, architecture and jewellery designing (Formlabs.com, 2019). The
resources indicated the capability of the personnel in terms of claiming for additional
resources. Conversion of the follow-on sales enhanced the stability in the relationship with
the clients and the customers.
Strategic planning, implemented in Form 1 printers, would prove beneficial even for
the sale of the Form 2 printers. Indulging in partnership with the research and development
team would be fruitful in terms of renovating the design of the 3D printers. Consistent tests

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and experiments would be helpful for averting the instances of malfunctions, virus attacks
and hacker interventions. Conducting product life cycle would be productive in terms of
assessing the demand of the Form 2 printer in the market. According to this assessment, the
supply can be planned. This can be done through the means of supply demand curve, which
would act assistance in terms of mapping the profit margin through the consideration of
revenue streams.
5. Recommendations for development of Form 2 go to market
 Strategic alliance and partnerships with the internet service provider firms can be
beneficial for Formlabs. This is in terms of standardizing the information technology
services. Email marketing can be of great help in terms of gaining an insight into the
prospective clients, who can help in increasing the sales revenue and the profit
margin. This would be of great support in terms of the upgrading the standards of
Public Relations.
 Conducting tests and experiments for the produced models of the Form 2 printers
would be effective in terms of averting the instances of defects, malfunctions and
virus interventions before supplying it to the customers. For this, assessment of the
financial condition is necessary in terms of avoiding straining for the resources.
 Planning is crucial for the sales team in terms of identifying the target audience before
bringing innovation within the printers. Within this, mention can be made of
marketing mix, which is assistance in terms of assessing the feasibility of the
marketing strategies proposed. Promotional offers for the printers would be helpful in
terms of mapping the behaviour of the customers.
 Training the staffs about the usage of the printers is assistance in terms of making
judicious use of the resources. Taking post training tests of the employees would act

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as an agent in terms of assessing the capability of the staffs towards enhancing their
professional skills, abilities and competencies.
 Hiring experts for conducting the experiments would help in averting the cases of the
damage and loss in case of the properties. In this, financial flexibility is a vital step,
which needs to be assessed.
 Ensuring that the customers have proper access to WiFi would be vital in terms of
influencing the purchasing power and decisions of the customers. Within this,
mention can be made of the security cookies and policies, which would secure the
private and confidential information of the customers. This approach would avert the
instance of third party intervention within the business processes, reducing the risks of
the information leakage. Specific reference can be made of the Data Protection Act
(1998), which would assist in avoiding the exigencies of the data loss at the crucial
time of making the orders and supplies.
 Indulging in alliance with sales channel would generate B2B business for Formlabs.
This approach would be effective in terms of seeking an insight into the prospective
clients, who would share the profit. Typical example of this can be joint ventures with
the distributors and suppliers in the threshold of Europe and Asia. Moreover, this
would save the distribution costs.
 CAD resellers can be contacted for hiring skilled and efficient engineers. This would
be assistance in terms of manufacturing innovative quality 3D printers.
 Dental Goods can be fruitful foe Formlabs in terms of recruiting skilled and efficient
suppliers. This approach would be productive in terms of achieving the satisfaction of
the dentists. As a matter of specification, supply of the 3D printers to the dentists
would help them in detecting the patients’ condition more deeply.

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References
Altıntas, F., Kurtulmusoglu, F. B., Altintas, M. H., Kaufmann, H. R., &Alkibay, S. (2017).
The mediating effects of adaptive selling and commitment on the relationship
between management control and sales performance. EuroMed Journal of
Business, 12(2), 221-240.
Formlabs.com (2019). About us. Retrieved 11th April 2019 from https://formlabs.com/
Mansour, M. B., & Johnston, W. J. (2018). Professional Selling: Types, Approaches and
Management. Dog Ear Publishing.
Zimmerman, A., & Blythe, J. (2017). Business to business marketing management: A global
perspective. Routledge.

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Bibliography
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Vendrell-Herrero, F., Gomes, E., Collinson, S., Parry, G., &Bustinza, O. F. (2018). Selling
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