The M&M's Product, Marketing and Price
Quality of the Product
An
Australian Advert from 1987 shows the company boasting about the quality of
their products.
The
Advert is very similar to ones from Lindt, known for it’s high quality in Swiss
chocolate- showing M&M’s
were not the only ones wanting to boast about
their quality.
Their
slogan is “Melts in your mouth, not in your hand.”, something else showing
their quality
Presentation
How products are presented to the public
can be a big influence as to whether or not someone will want to buy.
They come in over one hundred different
colours, the main ones being green, red, yellow, brown and blue.
They have a small white ‘m’ stamped onto
each individual sweet.
Their packaging is also brightly
coloured, appealing well to their target audience.
Price
The chart shows the inflation on pack of
M&M’s since 1955.
The chart shows that in January 2010 in
the US, the price of a packet of M&M’s went up dramatically- around 40
cents.
This may be because of the new range of
coconut M&M’s, the re-branding of their packaging in the US and another new
range in New Zealand and Australia of
‘Bare All’.
Are they worth their price?
Price and Value
Cost- The amount you spend to produce a
product or service.
Price- What financial reward you gain from
your product or service- what you expect your customer to pay.
Value- What your customer believes the product
or service is worth.
The cost to produce an M&M is thought to be
around half an American cent.
The price of
M&M’s is around 60p for a small bag and just over £1 for a share bag.
The value of M&M’s is debateable from customer
to customer, but I personally think their prices are reasonable.
Advertising
One of their most recent and biggest
advertising campaigns was their advert at the Super Bowl in February-
advertising their new range ‘Bare All’.
This also revealed their sixth character.
Their characters are another advertising
technique, by appealing to their target audience of young children.
M&M’s using their characters as an
advertising campaign is something that makes them easily recognisable.
Their red and yellow characters are used
the most, mainly in cinema adverts.
Their M&M’s shops in London and the
US sell merchandise with all the characters, as well as lots of different
colour sweets.
The Four Utilities of Marketing
Form Utility- Processing
raw materials into the finished product, enabling meeting customer needs and
wants.
Place Utility-
Transporting goods to outlets for customers to purchase.
Possession Utility- Gaining
evidence of legal ownership of a product.
Time Utility- Making
products readily available for customers to buy.
Form- Cocoa beans, sugar and milk being made
into M&M’s.
Place- Transporting
goods worldwide via aeroplanes, lorries and boats.
Possession- Owning
a receipt from shops, cinemas etc proving your ownership of M&M’s.
Time- Shops having stockrooms where they keep
their overstock of M&M packets.
SWOT Analysis
SWOT stands for strengths, weaknesses,
opportunities and threats.
Strenghts
•Worldwide
good reputation
•Part
of the Mars Company
•Strong
marketing and advertising using coloured sweets as characters
•Affordable
•Easily
Accessible
•Lots
of colours available, suitable for anyone, any occasion or any age
•Personalisation
of sweets available, ideal for gifts or occasions
Weaknesses
•Although
they are one of the strongest and most known chocolate companies due to their
advertising, it costs a lot of money and takes a lot of time in comparison to
other Mars products.
Opportunities
•Because
they are known worldwide, any new product will be welcomed
•Their
M&M World shops aren’t only shops but tourist attractions, widening their
consumer market
•They
own over 30 licenses to create merchandise e.g. t-shirts, figurines and mugs
•Advancement
in technology allows them to develop more products and character profiles
Threats
•Lots
of competition from other worldwide and well known chocolate making companies
•Their
biggest competition ‘Hershey's’ are always creating new chocolate bars
•Increase
and inflation of chocolate could grow, meaning their prices go up and their
sales may go down
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