Marketing Strategy of M&M's analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on M&M's marketing mix, help the brand succeed in the market. Let us start the M&M's Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in M&M's marketing strategy can be explained as follows:
M&M is a popular color and flavored candy having its customers worldwide. The major competitive advantage of the brand is the varieties offered. By innovating with taste, fills, colors and packaging, m&m candies offers a huge varieties of filled-candies to choose from. Other than that, it also focuses on sizes and SKUs, allowing the customers to even bundle their own SKUs.
These are chocolate filled sweets with various colors. The chocolate inside the candies is also of variety. The classic version of M&M candies includes milk chocolate filled candies. With the success of this product, the company started experimenting with different tastes and explanded its portfolio in its marketing mix. Chocolate and peanuts was the very first variant, with peanut mixed in the milk chocolate.
Again, it became favorite amongst kids and adult both. Other chocolate varieties include dark, milk and white chocolate. Nut fills of Peanut, almonds and strawberries are also available with M&M candies. Fruit bursts include flavors like Apple, orange, Pineapple, coconut, cherries and raspberries. Herbs and Spices include Coffee, mocha, chili-honey, mint, cinnamon etc. The chocolates are available in small, medium and large sizes.
M&M's Price/Pricing Strategy:
Below is the pricing strategy in M&M's marketing strategy:
M&M Candy is priced for the masses and is affordable easily by any one. This is an inexpensive brand of candy, which is targeted for all age groups.Other than that, based on popularity of a candy and uniqueness some candies are available at a higher cost.
Although these are also affordable and targeted for masses and are a part of segmented pricing. Many a times various incentives are given for promoting some flavor. Seasonal promotions, freebies and quantity based are also some tactics of promotional pricing to attract customer even at a lower cost. Given that these candies are available world-wide, the prices are also adjusted according to the geographies. Across locations, the prices are adjusted according to the market of that location to offer value priced candies to consumers. Personalized m&m candies are also available as a part of bundling and allow the customers to decide the bundle which are then priced accordingly.
Following is the distribution strategy in the M&M's marketing mix:
Candies are an impulse purchase and hence the most significant sales tactic is availability at the nearest convenient sight as well as attractive packaging. Company has the oldest manufacturing unit at New Jersey. M&M candies are now sold all around the world including all major nations like Australia, Hong Kong, France, Malaysia, UK. The company has a strong Supply chain base, where distributors are mainly the local ones, that help them access all over the country at minimal cost of research and logistics. Company owned candy stores are also present, which have additional features of enjoyments for the kids. The first company owned store had been Las Vegas strip. Places like gas stations, offices, schools, parlor shops etc. are targeted to set up vending machines and candy jars, where easy access to candy add on to the impulse buying decision. Packaging plays an effective part in sales of candies.
M&M candies has always tried to attract the customers by attractive packages which are colorful and loud, to attract specifically kids.
M&M's Promotion & Advertising Strategy:
The promotional and advertising strategy in the M&M's marketing strategy is as follows:
M&M characters are candy shaped mascots that are very popular amongst kids. These mascots are used to portray different flavors and different personalities for the candies. The mascots are portrayed in both TV and hard print advertisements. From time to time these M&M candies had been gaining visibility through kids and adult characters of movies, talking about them or eating. This gives a lot of positive association with the candies. They had been sponsoring events and activities popular amongst the kids, who are the targeted customers for the candy. These events include partnering with NASCAR. For special occasions like birthday, m&m candies also offers gifts for kids. This helps develop brand recognition and brand recall. Personalities Billy West and Vanessa Williams had been part of endorsements for the candies. These recognized celebrities attract a lot of brand status with them appealing more to the masses. TV ads are very comical with m&m characters featured in them. Apart from them, they have strong social media presence. Hence this completes the marketing mix of M&M candy.
M&M's Candy, owned by the Mars incorporated, are colored flavored candies, which are very popular in United States. These are now available across the globe in all major countries. Being a luxury product, candy business is affected by market but not so much, as the costs of both production and consumption are very low. The major problem is the varieties and competitions that keep coming up. Hence, differentiation is the major strategy for growth.
Another major concern for this industry are the healthy substitutes, which are more preferred by the parents for their kids. The competitors include Cadbury’s gems, Hershies and Nestle candies by the name smarties.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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