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

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.

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. The main point of differentiation is the characters themselves. Moreover, the taste is an important factor to the differentiation of the brand. For the moment it is only chocolate mixed with a peanut and bezel element, but when it is a mixture of sugar and salt, it definitely has to be M&M‟s.

M&M‟s branding has hinged on the deliberate development of distinct personalities or characters for each M&M‟s color. Globally recognizable packaging, the melt in your mouth, not in your hand‟ slogan and the distinctive M&M‟s on each candy all play an important role.

STAGE 3 Social esteem Eating M&M‟s is a hedonist and holistic pleasure for the consumer. In fact, it allows the customer to enjoy fresh and high quality chocolate while it‟s “cool” and “trendy” to be with M&M‟s packaging in the hand.

Emotional bond The consumers of M&M‟s feel an emotional attachment with the product due to the different and

6 exciting characters. The colorful characters are not only there to entertain us but the consumers are actually able to relate them with the real life happenings. This character of M&M‟s helps to retain the product, and is always on the top of the line when one thinks of buying a chocolate.

COMPETITOR’S ANALYSIS

M&M‟s faces tough competition worldwide with the presence of Hershey‟s and Skittles, but it also over powers them with its unique colorful features and temperature resistance nature. In Pakistan, however, M&M‟s does not have to fear about the direct competitors. Other generic competitors include Maltesers, Skittles and Hershey bars. Indirect competitors include KitKat, Ferrero Rochers and Kinder Eggs.

Perceptual Mapping

The following map shows M&M‟s comparison with the specific competitors in terms of price and fun element. The graph shows that M&M‟s is fun yet less expensive as compared to its major competitor Hershey‟s which is not exciting and is more expensive.

This perceptual map shows all the generic competitors of M&M‟s, according to which M&M‟s is placed at lower price and comparatively medium to lower quality. But on the positive aspect, this gives out the message of the most affordable chocolate in terms of generic competition

Competitor Array

Critical Weight M&M‟s M&M‟s Hershey‟s Hershey‟s Success age Weighted Ranks Weighted Ranks Factors Scale Scale

Price 0.3 8 2.4 5 1.5

Availability 0.2 6 1.2 6 1.25

Flavors 0.25 9 2.25 5 1.25

Promotional 0.125 9 1.125 6 0.75 Campaigns

Temperature 0.125 8 1 2 0.25 Resistance

Total 1.00 7.975 5.00

PEST ANALYSIS

Political/Legal Economical

. Laws about use of Halal foods . Doubt about the use of healthy ingredients may lead to the decrease in . Stringent Regulations about the use and sales for health conscious people awareness of organic products and less artificial products like salt, sugar and . According to a survey, chocolate added sweeteners consumption is at the most all around the world, which can give advantage to . Chocolate producers unable to the product distribute products to certain countries . A lot of waste material is produced, and . Major issue is child labor in cocoa companies spend thousands of dollars farms on disposing it

Social/Cultural Technological

. Studies show that over 37% of the . The chocolate and cocoa industries lack

population snack between main meals, support of NGO, which restrict the and it is mainly young people farmer‟s access to business guidance, funding and education . Population of single person households is expected to increase by 12%, who . Farmers are less efficient in learning prefer to eat chocolate and snack rather new technology, which eventually than preparing a meal. prevents the manufacturers from gaining cocoa and creating chocolates. . Consumers want a larger variety of chocolates and healthier alternatives to the traditional chocolates

. Dark chocolates provide several health benefits by adding flavanoid in the chocolate that prevents various cardiovascular problems

SWOT ANALYSIS

Strengths Weaknesses . Worldwide Reputation due to the brand  Spends a lot of money in their itself and the parent brand “Mars” promotional activities and . Marketing and Advertisements focused advertisements on the basis of different characters  Different products and their . Affordable advertisements may confuse . Easily Accessible the potential customers . Variety of flavors and colors, appealing  Variety of promotional to a larger audience campaigns has created . Customization on special occasions and confusion among the mass gift giving about the exact positioning of . Number one selling candy in the the product chocolate market  Women are reluctant to eat fat

grams through chocolate consumption Opportunities Threats  M&M‟s established market can easily  Presence of giant competitors like help new flavors or products related to Hershey M&M‟s to gain awareness  Hershey‟s chocolate bars might take  M&M‟s franchises around the globe over the market not only offers candies but are a sight  Inflation can cause an increase in the for tourist attractions as well price of M&M‟s  License to extend their business into  There is always a window open for the toys, mugs, t-shirts and like products new entrants or other substitutes, which  81% of households consume chocolate, can cause a decrease in the market which is a great opportunity to advance share in further products and flavors

LAUNCH OF M&M’s

Promotional Campaign

In order to launch M&M‟s officially in Pakistan, the following marketing strategies will be taken into action.

. Teaser Campaign

In the first week of launch, a teaser campaign will be held, which will arouse the curiosity among the potential customers about the upcoming products and the lively events accompanying it. The following picture is an example of our teaser campaign.

. Advertisement

After the teaser campaign, the product will officially be launched, and it will be followed by an advertisement. The video commercial involves humor, to match with the global message of M&M‟s that is fun and lively candies. A clip of the ad is shown below

. Bake Sale

A bake sale will be organized in the campus, in order to spread the message of usage of M&M‟s in different products. The product is marketed according to the locality, so we will market M&M‟s on chocolate muffins and brownies.

. Treasure Hunt

To involve the potential customers with the product, an exciting event will be held under the name “Treasure Hunt”, which will basically communicate the message of M&M‟s adventurous and fun loving nature.