[size=0.9em]Nov 29, 2015 [size=0.9em]1317 Words [size=0.9em]6 Pages
[size=1.25em]M&M’s biggest competitor is Hershey’s brand like M&M candies. The competition is fierce among the chocolate industry. Hershey and Mars are rivals and want the opportunity to gain more of the market share. In 1954, Hershey-ettes were introduced to compete against the similar M&M’s. However, they were not successful and are generally only available for consumers around the Holiday season. By the millennium, Hershey extended the popular Hershey Kisses brand in creating the Kissables. Hershey intended for direct competition to M&M small candy coated round tablet of chocolate in multitude of colors. The candy factories started in standard size packs and by the 70’s moved into standard size candy boxes. In the current year and season, you will find M&M’s in candy canes to small snack sizes and inside ornamental objects. The chocolate world becomes difficult to present as it becomes difficult to come up with new ideas in the candy business. As more companies release products similar to the M&M’s, it will become increasingly difficult for Mars to continue to command the level of market share in the chocolate candy industry and the product has a potential to get lost in the supermarket aisle.
The objective with M&M’s is to create a lasting, mutual benefit for the business success by creating a positive social impact and minimizing environmental impacts while creating economic value. This has been a vital means to Mars success of M&M’s over the past 100 years and allows the brand to endure in the long term. Mars, Inc. saw an increase in sales during the most recent economic recession when many competitors outside of the industry saw decreased sales. During difficult times, share a piece of chocolate which is a trigger to release endorphins as a feel-good chemical.
As many organizations need to comply with the government regulations and understand the aspect of the political and legal environment by which they do business. The U.S. Food and Drug Administration (FDA) regulate food such as candy products for the consumer safety. There are questions to the use of artificial dyes in the colors of the hard candy coating. FDA has not found any link between children consumption of the synthetic color additives and the adverse behavioral effects. Although the Europeans believe there is evidence of the food dyes trigger hyperactivity among children. In the United States you could find the warning on the packages preparing the consumer of the dyes that might trigger the hyperactivity. For a decade, you were unable to find the red color M&M’s regulated by the FDA research. By all accounts, the evidence turned inconclusive that there was no apparent adverse effect on rates. It was determined the consumer would have to consume a large amount of red M&M’s to equal the level of consumption given to the rats tested.
The brand is seen as a family wholesome brand and fun for the family to enjoy. Adults have grown up with the M&M’s brand and are able to share and enjoy with their children. Although Mars would like to appeal to a mass market however, it does not seem to hold the possibility. Generally middle income families are the ones who purchase M&M candies. Primary object to the ever pleasing of children who enjoy the chocolate candies. There has been marketing campaigns with the introduction of Mega M&M’s trying to appeal to the adult market. Stepping into the M&M world, you will find chocolate retain chains in New York City and Las Vegas as they display four floors of chocolate heaven with over 22 different M&M colors ranging from teal, hot pink, lime green, gray and even purple. On another floor, you could personalize your M&M’s.
There are two kinds of markets for the M&M brand; those who consume the candy on a regular chocolate fix and those who consume only on special occasions. Purchasing the chocolate candy on a regular basis are typically bought by families. The people who purchase on special occasions such as Christmas and Easter are more apt to buy M&M’s in large packages in special holiday array. Middle class adults throwing holiday parties are in this market which is usually seen as a special holiday treat with a variety of colors.
M&M‘s stem toward common passion for the brand and stands for family, fun, and generations growing up with the M&M’s. Together as the cornerstones of America’s favorite candy, the bases by which customer relationships are built upon. These relationships span genders, ages, cultures, and countries, which enable people despite the background one might come from to relate to each other. The M&M brand capitalizes on an opportunity to develop a competitive advantage towards the middle class adults, with the products continuously creating newer products in the M&M brand.
A weak economy reduced consumer spending which affected the M&M brand. When Mars assessed their internal environment, they had to look at factors such as performance and cost as well as awareness and locations. Although it might seem like a great idea to cover every facet of the candy arena, over time M&M faces such issues such as saturation. This occurs to an over presence in the market as the consumer will become tired of new products being introduced and when the availability to purchase the products in the future. There are many varieties and consumers loyal to peanut might become a peanut butter fan thus eating away at sales in the peanut variety. When too many choices are occurring, the consumer could be confused with what product to buy and will lose loyalty to their favorite variety. M&M’s weaknesses might include lack of awareness of its products in the marketplace.
An opportunity would be to consider expanding into more international products. Currently, M&M brand have a presence in the international markets, however, the brand is missing some key global players such as China and the Pacific Islands. A stronger expansion in European areas should be considered after further market research is complete. Increasing the Asian presence will reach a large demographic area with its large population and interest in our American products.
The threat factor are external environment Mars has uncontrollable such as a bad economy, high interest rates for Mars borrowing cost, and an aging population making hard for the business to find proper workers. The current diet trends such as the Atkins and Gastric Surgeries is leading to a growth of consumer’s request for sugar-free and low carb candy options. This could prove to be a big market for M&M’s brand if they could enter into this growing market segment.
M&M’s history provided ads to target the children who in turn would convince the parents to purchase the colorful candy. The slogan “Melt in your mouth, not in your hands” designed to encourage parents to buy the mess-free chocolate for the children. M&M’s has moved towards adults in the likes of “Mega M&M” and the color tones to an appealing color. Although the children are still a large part of targeting market but M&M wants to grab the attention of young adults such as high school and college students without children. “Become an M&M” campaign appeals to this age group and utilizing social media such as the popular FaceBook, twitter, and Instagram.
Pricing for M&M’s is modestly priced. This is an affordable candy that everyone can afford and enjoy. Gourmet chocolates on the other hand, which could run $30 per pound, are targeting a higher class of customer. Single serving bags are typically under one dollar. Large bags range from $2-$3. Customize a bag of M&M’s with a wedding date, couples names, or a special event will be expensive. The upside of customizing an online order from M&M’s, is they offer free shipping for your special customized product. M&M’s has many advertising mediums applied to their brand. Television commercials, and ads in magazines, continue with its innovative fun campaigns to entice the consumer.
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