Introduction
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INTRODUCTION M&M‟s is probably the most famous chocolate in the world. It is easily recognized around the globe by the snack sized pieces of chocolate, wrapped in colorful candy shell, printed with the letter „m‟. The colorful button-shaped candies are produced by Mars, Incorporated. The name is an abbreviation for their creators, Forrest Mars and Bruce Murrie of Hershey‟s. Since their introduction in 1941 as a treat for the military, M&M's have become a popular candy for everyone to enjoy. For decades, consumers could only choose between chocolate and peanut M&M's, but sine the 1990s; Mars Company has introduced a variety of specialty flavors. M&M's originated in the United States in 1941, and are now sold in as many as 100 countries. They are produced in different colors, some of which have changed over the years. In 1998 M&M's became the "official candy of the Millennium," because MM means "2000" in Roman numerals. It gains popularity with its colorful hard candied shell that holds in the milk chocolate. By leveraging on its successful tagline, “Melts in your mouth, not in your hand”, it appeals to the mass as chocolates will never melt in any temperature or in one‟s hands. Origin The Mars Company began producing M&M's chocolate candies during World War II for the troops. They originally came in small, cylindrical tubes. The bag design, in a deep chocolate brown, was introduced in 1948 and remains the same today. The first M&M's were not stamped with an "M" until 1950, when a bag cost only 5 cents. At that time, the M was stamped in black. Colors There are in all 21 colors that have been introduced by M&M‟s up till now, which includes candies for special occasions as well. Other than this, there are five colors that remain true to the product and are available throughout the year. The table below summarizes the five elements and its messages: Colors Elements Messages Red Work Liven up boring meetings with M&M‟s 1 Yellow School M&M‟s, your study buddy! Blue Social Time to party with M&M‟s! Green Leisure M&M‟s makes a perfect travel mate! Orange Home Don‟t forget your M&M‟s couch potatoes! Globalization In 1980, M&M's were introduced internationally to Australia, Canada, Europe, Hong Kong, Japan, Malaysia and the United Kingdom. Mars began marketing M&M's in a number of foreign countries in 1980, including Japan, Hong Kong, France and Germany. In 1982, the astronauts took them into space for the first time. M&M's Characters The M&M's animated characters have taken on a life of their own. Mars introduced Green in 1997 as the first female animated character. Orange, the paranoid crispy M&M, joined the gang in 1999. Red and Yellow continue to be the most popular characters, and appear in many commercials together, including a holiday classic where the pair encounters Santa. Today, an online game allows visitors to create their own M&M's characters using different eyes, hairstyles and accessories. Market Share M&M‟s has created a market share that has yet been unmatched by the competition. In 2004, M&M‟s achieved an impressive $201 million in candy sales in the U.S. alone, making it the number one selling bagged or boxed chocolate candy in the country, beating out its nearest competitor, Hershey‟s Kisses (Candy Industry). The success of M&M‟s is due to many factors such as attractive and unique advertisements and promotions, customer participation and feedback defining the produced output, and a wide range of customized product possibilities. MARKETING MIX Product The combination of qualities that sets M&M‟s candies apart from all other candies is unique and instantly recognizable. M&M‟s candies are most noted for their ability to deliver chocolate inside of a hard candy shell that allows the candies to withstand temperatures that would melt 2 conventional chocolates. Different varieties of M&M‟s include: milk chocolate, peanut, peanut butter, crispy, almond, and dark chocolate. Different sizes of M&M‟s include: minis, mega, and M-azing (candy bar version). Packaging The packages and the candies are frequently modified to coincide with all major holidays such as Halloween and Christmas, special occasions such as weddings and baby showers, etc. Each of the modified units includes a redesigned package and a special assortment of M&M‟s colors. With over 21 colors available today, they are sure to please any and every M&M‟s consumer. Various packaging sizes come in small and larger sizes to accommodate trick-or- treaters, party throwers, and collectors alike. In many cases, the candy that comes with the M&M‟s collectibles is more of a complement to the product rather than the final desired product. M&M‟s dispensers, characters, boxes, banks, shirts, and hats are just a few examples of M&M‟s memorabilia that are available only online for Pakistani consumers. Soon after the launch, they will be available in toy stores, grocery stores, and dedicated M&M‟s stores as well. Price Pricing for M&M‟s is modestly priced. This is an affordable candy that everyone can afford and enjoy. Large bags of M&M‟s can be bought for Rs.80 only. Customized M&M‟s bags are available online, with different variation in prices depending upon the changes required. This selection gives you the option to even put a customized message on your candy and the ability to pick up to two customized colors. The upside to this is that M&M‟s offer free shipping for your customized product. Place M&M‟s use internet platform to reach out its customers globally. With the official launch of M&M‟s in Pakistan, the sales would increase through the use of indirect marketing channels that 3 would include retailers in supermarkets, convenience stores, confectioneries and vending machines. It is a ubiquitous product that is not hard to find. Globally, M&Ms has made their products easily accessible to their consumers to make the purchasing process less difficult. This also goes along with the fact that M&Ms heavily promotes their products in many different advertising mediums, so it only makes sense that their products are easy to find. Promotion M&M‟s has many different advertising mediums applied to their brand. Television commercials, ads in magazines and promotion on their various websites are just a few. In promoting their product, they use the Spokes candies, Red and Yellow, along with others from time to time. Using relatively the same format in promoting their product makes the consumer more aware that the product advertised is M&Ms and will be more likely to buy it because of that brand awareness. On the international front, M&M‟s involve its customers in the decision making process, which involves voting for a new favorite color, finding a missing color and so on. This activity would help to retain the loyal customers and attract potential customers. MARKETING STRATEGY Target Market Over the years, M&M‟s has been marketed as a mass market chocolate product, targeting children, teenagers and working adults. The brand is seen as a family brand that is wholesome, fun and that everyone can enjoy. Adults have grown up with the M&M‟s brand and are able to share and enjoy it with their kids. Generally middle income families are the ones who purchase M&M‟s candy. Segmentation There are two kinds of markets for the M&M‟s brand; those who consume the candy on a regular basis and those who consume the candy on special occasions. People who consume the candy on a regular basis are typically children and families. 4 People who consume the candy on special occasions such as Halloween, Easter and Christmas are more apt to buy M&M‟s brand candy in the larger packages that come in special holiday colors; this is what M&M‟s is best known for. Middle class mothers throwing holiday parties are in this market segment. They see M&M‟s as a special treat for the holidays, with ranging colors appropriate for each holiday. Need Arousal Information Purchase Usage Search& Evaluation Who Initiators: Deciders: Purchasers: Users: (Roles) Teens Teens Teens Teens Young Young Young Young Working Working Working Working Adults Adults Adults Adults Where Home External: Supermarkets On the (Locatio School Supermarkets Minimarts go n) Office Minimarts Convenience Home Convenience stores Office stores Candy shops School Candy shops Vending Vending machines machines Internal: Experience When Satisfying sweet Point of Purchase Unplanned: Regular (Timing) tooth when: Regular basis Basis Working Planned: Social Studying Social Gathering Occasion Hanging s around Positioning STAGE 1: Building a brand in mind space Every day, consumers are exposed to a large number of adverts and messages. Our perception of this information may not be as clear as we think. This picture reminds us that people see things from different perspectives and explains why marketing managers concentrate resources on developing brand awareness and recognition. Advertising and clear branding, through the use of characters and personalities such as Red and Yellow, make product „information search‟ easy, 5 and increases the chance that we will recognize and buy brands such as M&M‟s. This form of branding is very effective as it makes it easy to buy a familiar product when shopping. STAGE 2: Differentiation M&M‟s is clearly different from other chocolates in the market.