Tuesday, 12 June 2012

Presentation- Task 4

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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