refers to a brand name chocolate founded in 1930s by the Marscompany. was introduced by Mars, and its name originatedfrom the famous horse of the Mar’s family[ CITATION Coo11 l 1033 ].It is a peanut nougat that is topped with caramel and peanuts whichare enrobed in milk chocolate. This paper performs a market analysisfor through which various segments in marketing have beendescribed. These are SWOT analysis, evaluation of marketing mix andmarketing strategy, investigation on consumer behaviors, use ofpromotion mix and application of branding strategy.
Backgroundinformation about Products of
Thefive major types of include fudge, almond, and ice cream,dark and original. The sales can be estimated globally at $2 billion.Until 1990, was selling under the brand name ‘Marathon’. Mars company was established in 1911 by Frank and Ethel Mars Healyin Tacoma, Washington. With time, the couple was able to establishthe first manufacturing factory, known by the name ‘Mars CandyFactory Inc.`. The company started by employing 125 employees. Thecandies were being sold for between 5 and 10 cents in Pacific Coast.The logistics dealt with delivery of candies on a daily basis sincethere was no refrigeration system[ CITATION Fre09 l 1033 ].
has recently received celebrity endorsements. This has seen most ofthe Mars Bars receiving strong customer feedback. However, by 2005,many Mars bars and were removed from the store shelves inSouth Wales as a result of many threatening letters of the bars beingpoisoned. Generally, has faced both good times andchallenges in the markets[ CITATION Gan05 l 1033 ].
TheSWOT analysis presents the analysis of the strengths, weaknesses,opportunities and threats affecting the product[ CITATION Hic02 l 1033 ].
Thestrong brand name for has enhanced the circulation in manyareas in the world. This is coupled by the greatest taste andattractive packaging. This has also seen it being able to sponsorglobal football and other teams in sports. This has been a majoravenue to create brand penetration and increase customer awareness.The people consider as a health bar. This triggers greatersales since most customers believe that the bar has some healingpowers[ CITATION Old11 l 1033 ].
Marshas not been successful in its advertising for . This meansthat the rate and effectiveness of consumer awareness have beenrelatively low. In any business, whenever consumer awareness isineffective, and then brand reception is low, and consequently thesales’ turnover is relatively low. Among the potential customersare the Asians. Unfortunately, has not been available inalmost all Asian markets. This implies that the strategies in marketpositioning and segmentation have been inefficient as the Asianmarkets are very huge and potentially profitable. Another majordrawback for is that peanut flavor is not very popular amongmany people. This lack of variety of different flavors makes it hardfor it to penetrate when the people are disinterested even after thecompany makes an effort to enter into those markets[ CITATION Gan05 l 1033 ].
Asa major retailer, there is a huge opportunity to penetrate into thegrowing retailer chains and cities that present an untapped marketopportunity. Therefore, any plans to capitalize on new entriespresented can be of paramount benefits in enhancing the consumermarkets. Another huge plus opportunity is the move towards developingmore flavors and smaller SKUs. This will enhance greater customeraccessibility and ensure that the brand remain competitive just likeits major competitor, Cadburys Dairy Milk[ CITATION Hic02 l 1033 ].
Competitionis one of the major threats affecting . There are variouscompanies that manufacture similar chocolate brands. This means thatMars must be on toes to ensure that remain competitive inthe market. This can be achieved by enhancing customer awareness andproduct promotion through discounts and sales promotions. Also, it isargued that most of the chocolate brands have high levels ofcalories. As a result, the reception of the brand is hindered amongthe calorie-conscious people. The continued dispensation of suchbeliefs implies that will miss out on some potentialcustomer segments[ CITATION Fre09 l 1033 ].
Marketing Strategy and Marketing Mix
Over50 percent of the total sales is generated through the wholesalechannels based on production. To support the sales, the companycarries out intensive advertising on media. This is objected atcreating a brand pull as well as encourage retailers to purchase. Lack of premium priced items compels the company to devotemush effort is wholesale advertising. Nevertheless, recently, Marshas embraced the benefits that come with retail penetration. This hasseen the company paying more attention to the retail coverage thathas enhanced the allocation of resources to the retail sector[ CITATION Old11 l 1033 ].
Marshas been emphasizing on establishing consumer pull through adverts aswell as pushing the brands through the widely-spread network ofdistributors. This pull & push strategy has been successfullyenabled equal pricing of the products across the various markets.Also, the cost leadership strategy has beenapplied to enhance the generation of huge revenues through sales.This has resulted to changes in launches, re-launches, andre-introduction of the brand. Mars believe on establishment of thebrand and brand equity. This ensures protraction of quality acrossall customer segments. The increased affordability and quality thatis created therewith ensures unmatched brand reception and marketexpansion[ CITATION Coo11 l 1033 ].
Themarketing mix in Mars has been effective.
have had a powerful market entry. The product has several lion marketshares. Some of the products are fudge, almond, ice cream, dark andoriginal. The presence of this product line meant that hasthe potential of being a market leader and outdo other majorcompetitors like Cadburys Dairy Milk[CITATION Old111 l 1033 ].
Qualitycomes at a price. The increased quality of the products implies needfor constant marketing to maintain the product positioning.Therefore, Mars targets at reasonable prices. , due to itspositioning, has been accepted across various market segments.Normally, the prices are different, and this is based on the targetcustomer. The pricing in high and low variants does not affect as it has a position of gifting that enables it to sell athigh volumes and prices. normally sells in millions duringfestive seasons[ CITATION Red13 l 1033 ].
Thedistribution of is widespread and fantastic and is presentin both cities and urban areas. However, the rural distribution isrelatively weak, especially because the demand is also relativelylow. follow the same FMCG marketing mantra of breaking thebulk. After manufacturing, is distributed to many countriesworldwide. The main distribution chain entails movement from thecompany, then the agent, distributor, retailer and finally gets tothe consumer. Due to this channel, distribution cost for is normally high. However, based on the market demand, thecosts are also high. Therefore, this is currently being taken intoconsideration as the products are being distributed. In the end, has a significant market presence, and it is now clear thatits accessibility is very fast. However, there are plans by Mars toexpand into the Arab markets since that has not been yet reached(Lahey, 2014).
Manyyoungsters, women, and children love chocolate. Therefore, thetagline ‘filled with peanut flavor…` implies that isvery sweet. Due to this many people even stock in theirhomes, and sometimes gift their loved ones during special occasions.The promotion for takesvarious dimensions. For instances, the for celebrations hasa different customer base where the are brought in bulk anddistributed among the employees, vendors or clients. has avery high health positioning and makes use of both the BTL and ATLmarketing. BTL marketing is strong with standings, hoardings and flexbanners in various corners, hotels, and shops. As a result, brandrecall remains relatively high as people remember any timethey go to buy chocolate (Lahey, 2014).
Consumerbehavior entails the psychological process through which a consumerrecognizes the need and looks for ways of satisfying their needs andmaking the decision to purchase a product. This involves interpretingthe information, making the plans and implementing those plansthrough engaging into a comparison shopping and purchasing the choiceproduct [ CITATION Old111 l 1033 ].
Inother instances, the physical or psychological discomfort that is asa result of a discrepancy is sufficiently enough to compel a consumerto act. For instance, whenever a customer experiences effects of lowsugar levels, then there is high motivation for them to top upimmediately. has successfully implemented a campaign thattargets the mild afternoon hunger amongst most consumers. Though thestrategy was simple, it was effective in reminding the consumers ofthe want-got gap. Consumer can be easily motivated to purchase due to the rand equity that the product has established as acandy bar. has been a product line that is currently beingtrusted and preferred by many consumers. Most consumers like because they are sweet. In fact, snicker sales are influenced byvarious seasonal factors like holidays (Lahey, 2014).
Asa food product, the can potentially satisfy thepsychological human needs as portrayed by Maslow. Due to its goodtaste, has the potential of satisfying the safety and socialneeds of many customers. For instance, can be used as atreat for a group of people, such as a relationship or meeting.Nevertheless, in case of anything ending poorly or break-up, PB2can be a good remedy. Any consumer who like chocolate and peanutbutter will definitely love and peanut butter. The productappeals to the lovers of both the candy bars for peanut and ,and those who like more than regular cup offers of peanut butter[ CITATION Gan05 l 1033 ].
Thebig idea to the consumer is that offers everything that maybe needed, ranging from candy bars to peanut butter cups. The productis intended to taste better hence the peanut squared. Thispromise is conveyed in a big idea of the characteristics associatedwith eating the sharks. Sharks like eating humans, but they preferpeople whose taste is similar to that of and peanut butter,and this is the Big Idea of ‘like the original, love the addition’.Thisbig idea relates to the sharks themselves where, in their littlefocus groups, sharks have tasted both options blindly. The regularpeanut butter cups represented by Lisa and Squaredrepresented by Steve. From the two, peanut squared, Steve, appearsmore preferable to many customers. Therefore, Mars has beenconsistently proving the superiority of to other chocolatebrands[ CITATION Red13 l 1033 ].
Thepromotional mix for involve personal selling that help inproviding meals to customers with food insecurity. Also, advertisingplays a major role in paying for the commercials to create brandawareness. The public relations has also been a major component ofthe promotional mix where Mars has been able to donate over 2.5million meals for the people in America. has also beenpromoted through sales promotion that entails promotional activitiesthat stimulate purchases[ CITATION Coo11 l 1033 ].
Thetarget market for comprises of people who are always activeand work-up an appetite. Also, has been out to targetadults, and this has been achieved by using celebrities like BettyWhite. Below are the major highlights of promotional mix.
Advertising: In advertising, pay for the adverts that air the commercials on
Publicity: has been celebrating the third year in a row where it has been able to give at least 2.5 million meals to people in America.
Sales promotion: Mars has used the Ice Cream contest on twitter where winners getaway with over $1000 free bars of ice creams.
Personal selling: Mars, through help in providing meals to persons with food insecurity.
Thepromotional mix in aims at stimulating purchases. Thispromotional mix plays a major role in informing the customers onnutritional facts in . This in turn satisfies the customershence most people can access the product. This normally is a majorrecipe for creating a good reputation for the company. According toMars, is among the brands that can effectively be advertisedto the NFL fans since most people can easily watch the match everyweek. Consequently, the repetition of such commercials motivates thefans to buy . Currently, the promotional mix used for seems to be working effectively. According to the reports byMars Company, has turned out as the most popular candy bar.As a result, the company is persuading their customers on groundsthat even athletes and professionals love . The commercialsreminders for take place every Sunday as the football gamesplay. This creates brand awareness, and consequently the increasedprofitability[ CITATION Coo11 l 1033 ].
has won the award of the best brand campaigner “You’re Not YouWhen You’re Hungry”. Previously, the brand managers realized was allowed to morph into more of a teenage and goofballbrand. This had alienated from the huge consumer base, andthis resulted to reduced sales and decline in consumer interest. As a result, after a thorough qualitative research, the brandmanagers realized that hunger satisfaction could be a major player inmotivating the purchase and that genuinely possessed thatattribute. These insights were tied into a creative execution thatcentered on universal truth that people cannot be themselves whenthey are hungry. This meant that was best suited to solvesymptoms related with hunger, diva-like crankiness and lack of energy(Lahey, 2014)
Thereafter,the Mars decided to harness the elements and in 2010, the campaignstarted on Super Bowl TV where Betty White was featured. Thereafter,this unfolded imaginative blend of social media and marketing.Theprint ads contained celebrities who, after taking , didthings that were completely superb. SNICKERS.com ads dominatedon the internet with video supported branding strategy pushing 15 spots. Also, the company targeted on country-specific pageson Facebook that enhanced the distribution of videos that engagedconsumers and leveraged appeal and influence of local celebrities.Additionally, there was a brilliant twitter execution that featuredcelebrities tweeting from their out-of-character insights, whileyoutube was used in show-casing a dedicated channel inviting users togive their comments (Lahey, 2014).
Recommendationsfor Future Growth
must be willing to adopt the flexible strategic plans and protocolsin order to enable them implement swift and effective solutions. Marsshould be in a position to adopt obvious trends in taxes,trade, government and laws in the region of operation. Also, from theanalysis, it is evident that has not fully penetrated inArab continent. Therefore, Mars should consider entering into thisuntapped markets. Another factor that came out strongly is the lackof variety of flavors. Due to the increased competitiveness, should consider making other flavors apart from peanutbutter. This can potentially increase the customer segment. Also, theincreased efforts in advertising can potentially enhance more brandawareness, especially since the product awareness has not been verymuch effective for .
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