Presentation on theme: "M&M’s By: Laura Lutz, Brian Bugay, Yusuke Matsui, Byeoli Yun."— Presentation transcript:
M&M’s By: Laura Lutz, Brian Bugay, Yusuke Matsui, Byeoli Yun
Table of Contents History and Development Marketing Strategy S.W.O.T. Analysis Segmentation of Target Market Target Market Demographics Target Market Psychographics Competitive Analysis Competitive Matrix Consumer Analysis Objectives Marketing Mix Touch Point Budget Breakdown Evaluation 1
Introduction Today, when people try to make purchase decisions, they have a hard time to do that because there is a variety of choice. Because consumers’ interest and desire to choose products are varied, we plan to learn what strategy can reach target consumers. Our client is M&M Chocolate Even though M&M chocolate is well known, there are lots of competitors in this product strategy. By designing an IMC plan for M&M, we will make more consumers buy M&M chocolates. This IMC project will consist of three parts. First, we will provide a company or marketing analysis. Second, we will decide exact target market and analyze them that we can persuade them to buy more M&M chocolate. Finally, by using different touch points, we plan to advertise M&M chocolate in a creative way. 2
History and Development In 1940’s, Mars and his friend, Bruce Murrie, started to create chocolate product in the United States. Mars has tripped to Spain and he ate chocolate there. Mars then began to try chocolate manufacturing since that time. In 1941, M&M chocolate has started to sell in the United States and it spread out quickly. At that time, M&M’s shape was kind of cylindrical and people could easily bring it anywhere. Late 40’s, it has become pretty famous. People love its unique characters. In 50’s, M&M’s used TV commercial, which caused the brand to become more famous in the United States. In 1954, M&M’s peanuts emerged and it also has become a famous product in M&M’s chocolate. 3
History and Development In 1960, M&M’s peanuts added three colors which are red, green and yellow. In 1972, the characters of the brand have emerged in its packaging and those characters showed on TV commercials too. It helped to build a strong brand image to people. In 1982, M&M’s chocolate went to space, surprisingly. It became one of the space foods at that time. In late 80’s marketing in Europe became huge. In 90’s, M&M’s got two new products; peanut butter and almond. 4
History and Development After a half century since M&M’s emerged, people voted for adding one extra color to M&M’s in And the result was chosen “Blue”. In 1996, M&M’s won a prize, which is the good design of the advertising in USA TODAY. In 1997, it was the first time to add a M&M woman character. In 2001 and 2002, M&M’s had success in a web cite vote, which is “Global Color Vote”. The trial was taken over two hundred countries and resulted with purple being added to the M&M’s. 5
Marketing Strategy Target Market M&M's is a brand of chocolate pieces that originated the United States in 1941, and are now sold in over 100 countries. This wonderful candy is produced by Mars, Incorporated. M&M's comes in red, blue, brown, green, orange, and yellow. Fillings include: milk chocolate, dark chocolate, crisped rice, mint chocolate, peanuts, almonds, orange chocolate, coconut, pretzel, wild cherry, and peanut butter. With the wide variety of flavors the marketing strategy can be almost endless. Being around for 70 years this candy has been known all around. M&M's would like to appeal to a mass market; it is hard due to the "sweet tooth" sensation fading away as your age increases. Generally, M&M's targets the young children because their love and obsession for candy. Kids love colors and that’s exactly what M&M's has to offer. It would be nice to target an adult market, so M&M's has come up with great marketing campaigns in doing so. Adding different kinds of M&M's might target the adult markets taste buds. Those flavors possibly being: Coconut, almonds, peanuts, etc. "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. (classes.bus.oregonstate.edu/fall-05/ba590/MM's.doc)." This would be nice to even out the target audience to buy M&M's more than just on an occasion. 6
Marketing Strategy Cont. M&M's made an appearance in NASCAR. In 1998, Elliot Sadler, was decided to become the race car driver for the number 38 M&M's car. "Research has shown that fans of NASCAR are three times more likely to purchase products form companies that sponsor the sport (classes.bus.oregonstate.edu/fall- 05/ba590/MM's.doc.)". That being said, this will target an audience of kids and adults. Exactly what M&M's is looking to do. Customizing M&M's is a marketing campaign that has been going very good for Mars, Incorporated. You can customize your M&M's from your own ideas to a sports team logo such as NFL teams, NHL teams, MLB teams, and NBA teams. The ideas are endless. Within the first 4 hours of inventing the idea of customizable M&M's, revenue peaked. There were 300 orders per day in the first year. Each order size was averaged to about 10 pounds of M&M's candies. 7
Marketing Mix Product: M&M's comes in a vast variety of colors and flavors. M&M's can even be customized. This product is vastly growing into many different ideas. Clothes and products can be bought that promote the M&M's candy. With different seasons there are different colors that represent those seasons. Christmas has red and green, Halloween has orange and black, and Easter has pastel colors. This product has great ideas for marketing through out different seasons. Price: Pricing for M&M's is affordable and nearest to other candy prices. There are small bags of M&M's that cost.99 cents and large bags that range form about $2-3. Customized M&M's is a little bit more expensive. The price for an 8 ounce bag of customized M&M's is $9.49, but the minimum amount of bags is 4. Now, free shipping is offered if ordering customized M&M's which is a great deal. Place: Where can you find M&M's? Well, being such a popular candy, M&M's can be found at local retail stores such as Wal Mart, Target, gas stations, and other small convenience stores. Finding M&M's near you is very simple. Of course you can buy them on the website, and you can also vote for new colors and ideas for marketing ideas. Promotion: M&M's promotion is outstanding. There are funny commercials, ads in magazines, and the M&M's car in NASCAR. TM&M's is well promoted making the awareness for this candy to be known by many. On the website there are many games, voting's, and activities you can join in on. The website is very colorful making viewers want to come back and even tell there friends about it. Marketing Strategy Cont.
S.W.O.T. Analysis Strengths Strong, recognizable brand name. Good reputation among consumers. Strong advertising possibilities. Long lasting roots, originated in Weaknesses Consumers disliking chocolate. High calorie. High fat. It is hard to come up with original ideas in the candy market. Opportunities Addition of new flavors. Worldwide market creates more advertising possibilities. Unfulfilled consumer needs. Advancements in technology. Holiday advertising and promotions. Threats Possible shifts in consumer tastes. Possible increase in trade barriers due to economic conditions. Trade regulations. Competition between other candy companies. 9
S.W.O.T Analysis Strengths: M&M’s are a popular candy worldwide which has given them a strong and recognizable brand name. Their long lasting roots, originating in 1941, has helped them to maintain a good reputation among consumers. All of these factors contribute to a number of strong advertising possibilities. Weaknesses: M&M’s will not be able to appeal to the interests of those people who do not like chocolate. Also, many people will choose not to eat M&M’s due to health reasons. M&M’s contain both a high number of calories and fat content. Another weakness is that in the candy market it is hard to come up with new advertising ideas that have not been used before. Opportunities: The possibilities of adding new flavors are never ending. Also, M&M’s have a worldwide market which makes it easier to advertise new products. Consumers’ needs are always unfulfilled as they will usually come back for more. Advancements in technology create new advertising possibilities and there are always new opportunities for promotions during the holiday season. Threats: Consumer tastes are always changing, so it is possible that consumers might begin to dislike the taste of our product. Because M&M’s possess a worldwide trade market, the threat of possible trade barriers is always present and would affect the success of M&M’s greatly. Probably the most prominent threat now, however, is the threat of competition among other candy companies. 10
Segmentation of Target Markets The primary target audience for M&M chocolate will consist of both males and females age 18 to 24 in Denver, CO. According to the MRI report, young adults aged 18 to 24 like to eat M&M chocolates more than other groups. When it comes to brand image of M&M’s chocolate, the colorful chocolates are the first idea coming into consumers’ minds. The brand image of M&M’s is young, creative, and active. This kind of brand image can be used to appeal to both female and male consumers. In case of male target consumers, they are very active and always looking for something new and funny. M&M’s chocolates can satisfy their desires because small bag of M&M’s chocolates can be brought in pockets or in small backpacks. Moreover, they can eat M&M’s chocolate while they are working out or hanging out with their friends. On the other hand, in case of female target consumers, they always think about what they carry with their stuff. Colorful and cute characters in M&M bags can be the solution to appeal to female consumers. In addition, our project will be executed in the Denver area. The Denver area has many resorts for winter activities. Also, many families and young generations will visit Denver. It is a great opportunity to promote our product and increase our market share. 11
Target Market Demographics The demographics for M&M’s primary target audience are: -Males and Females age people -Caucasian race -In school, Middle class -Single, married, divorced, separated, widowed -Any education level -Live in or are frequent visitors to the Denver Area. The demographics for M&M’s secondary target audience are: -Males and Females age people -Caucasian race -Household annual income $20,000+ -Working class -Graduated school, and worker -Live in or are frequent visitors to the Denver Area. 12
Target Market Psychographics The psychographics for the M&M’s campaign consist of: People who are interested and participate in trends People who are young or who have a young state-of-mind People with a sense of adventure People who like to try new things 13
Competitive Analysis M&M’s’ competitors include well-known candy bars such as Oh Henry!, Baby Ruth, 3 Musketeer, Butterfinger, Kit Kat, Reese’s, and Junior Mints. M&M’s are a product of the company Mars, Incorporated which competes against other top chocolate manufacturing companies. M&M’s’ biggest competition is Hershey. The chocolate industry is extremely competitive. Mars and Hershey are bitter rivals and would love the opportunity to gain more market share. There have been many attempts at legal actions but both companies generally agree to either settle their differences out of court or simply ignore the issue entirely. Candy companies and their products are perceived as the embodiment of fun and happiness so they do not want to do anything that would tarnish this reputation. In 1954, Hershey-ettes were introduced to compete with M&M’s. However, they have not been very successful and are generally only available for consumers around the Christmas season. In an effort to compete with M&M’s, Hershey has extended their Hershey Kisses brand. On November 17, 2005 Hersheys launched a new sales campaign introducing a new product called Hershey’s Kissables. The fact that Hershey was directly targeting M&M’s is very evident in the packaging and look of the candy. 14
Competitive Analysis In 2003, a new competitor to M&M’s emerged. Jelly Belly already had small candies similar in size to M&M’s, but did not have any products in the chocolate side of the confectioning market. The Jelly Belly candy, called JBz, were introduced to take a much closer aim at the M&M’s market. They even began to shape the candy similarly to M&M’s. JBz’s pair a chocolate center with many different flavors. JBz candies come in many of the same colors as M&M’s and even include a white JBz decal similar to the M&M’s white stamp. 15
Competitive Analysis Mars, Incorporated also competes against the mega chocolate manufacturers such as: Barry Callebaut, Ferrara Pan Candy Company, and Ferrero. However, these companies do not pose a direct threat to M&M’s as they do not produce anything similar. As companies release products that are similar to M&M’s, it will become increasingly difficult for Mars to continue to command the same level of market share in the chocolate candy industry. Without creating new advertising and marketing ideas such as ours, the product has the potential to get lost in the supermarket aisle. 16
Survey questions 17
Survey questions 18
Consumer Analysis To know more information about consumers, we conducted a survey. The purpose of this s urvey is to know public thoughts about M&M’S chocolate. After getting the results and knowing about this, we will target consumers specifically. The survey results will help us to sell more products. The survey was conducted online. We recruited our respondents by social netw ork services like Facebook, twitter and people participated in this survey; 24 are female and 26 are male. Most of them are UNK students, and it is good to know about our target audiences because they are aged 19 to 25. Tendency of target audience: Based on our survey, we can know consumption preference of out target audience. Most of them answered they like to eat chocolate once a week or day. It means that our target audiences normally like to eat chocolate. Therefore, we should think about how to influence people purchase M&M’s chocolate among the other brands or selections. 20
Consumer Analysis Effect of commercial Unfortunately, even though many respondents answered that they watched commercials about M&M’s, many of them like to eat other chocolate not M&M’s. As a result, we find some weaknesses of our brand. According to the survey questions, 90% of respondents answered that they watched TV commercials. However, many of them also answered they like to eat chocolate from other brands. It seems that consumers were not affected by our commercials. Therefore, we think promotion events like giving them free samples will be a more effective way to promote M&M’s. 21
Consumer Analysis Weakness and strength of M&M’s chocolate Among several other choices, many of people answered they like to eat Twix especially. The difference between Twix and M&Ms is that people can taste more pure chocolate from Twix. Furthermore, Twix contains other ingredient too. At the same time, people answered that they like to eat M&M’s chocolate only, not with other food. Therefore, we find out that people like t o eat M&M’s because they can find pure chocolate tasty. This fact not only can be the strength for M&M’s, but also can be a weakness at the same time. As a weakness, M&M’s lose chances to promote their selling with other snacks. On the other hand, another strength of M&M’s is its price. Some respondents answered that they like to buy M&M’s because it is cheap. Moreover, people think that 50 cents to 2.50 dollars will be reasonable price for a bag of M&M’s. 22
Objectives Objective Introduction: Our main goal is to promote M&M’s chocolate and brand in Denver during the 2012 fiscal year. We are going to promote it with some different opportunities. However, M&M’s chocolate is already famous so we will try to make people enjoy our campaign even more. We have some plans to take our campaigns to different attractions in the Denver area. Marketing Objectives: The following objectives are the goals of the campaign. -We aim to increase market share by 5% in Denver Area. -We aim to gain an attention increase of 10% among our primary and secondary target audiences. 23
Objectives Communication Objectives: Our communication objectives are to increase consumers of M&M’s brand awareness. For example, one of our touch points will distribute pocket tissues in the Denver Stadium. It can communicate with passers-by, even if they don’t have any interests in M&M’s, they direct some of their attention to the pocket tissues with some good design ad. -We aim to target young people. Primary and secondary target -We aim to use not-traditional media, which will effectively support good brand image.
Objectives Media Objectives: We promote M&M’s product in the Denver area as effectively as possible with a cheap budget. It is very important to use good and creative ideas. We will focus on primary and secondary target audiences of course. We think young people have somehow big power to influence the society or become a big consumer. If they become a big fan of our product, they would also promote our product to their friends, family or whoever they talk. 25
Christmas Decorating M&M Style Competition increases during the holidays so, in order to maintain a standing above our competitors, we need to promote our product. Many college students like to decorate for the Christmas season. Our idea is to provide one of these M&M ornaments with each purchase of two bags of M&Ms. This will give consumers an incentive to buy more M&Ms and will also integrate the M&M brand more prominently into the lives of college students. This idea may provide a lasting impression in the minds of M&M consumers. 26
The younger, college-aged generation will be our target market. It is important to think of ideas which would attract this group of consumers. Younger people generally like to play games. The bean bag toss game is a very popular game which would draw a lot of attention from college students. Coincidentally, the shape of a bag of M&Ms greatly resembles that of a bean bag. Our idea then would be to include a zipper pouch with the M&Ms design on the front with each purchase of 3 packages of M&Ms. Consumers can then place a bag of M&M’s in the zipper pouch and use it as a bean bag. This bag will not only serve as fun but it will also provide a snack during play. The zipper pouch is multifunctional and is not limited to being used as a bean bag so consumers could use it to carry pencils or anything else that they would need. 27
Catch Our M&M Frisbee If you love to play catch with a Frisbee, why not play with one decorated looking like an M&M? This marketing campaign is cheap, fun, and a good way to target the kids and grown ups audience. You would get a lot of people looking and wondering where you got that cool looking Frisbee. Playing with this on the beach, at a party, or even a family function will target audiences of all ages. 28
M&M Bowling Ball So many people love to go bowling! Kids, teens, college students, and the elderly love to bowl. Ages from a young child to a older person love this sport; it is a good way to get out and socialize. What is better than a ball designed and painted exactly like an M&M? This marketing idea will catch a lot of eyes in the bowling alley. This ball can be targeted to consumers of all ages. Most kids would see this ball and immediately want to use it. Cosmic bowling consists of a lot of black lights glowing over all the lanes in a bowling alley. Now, making this M&M ball fluorescent, would make it stick out like a soar thumb, in a good way.
Twister With a Twist of M&M’s Twister is a popular game for kids and parents. A great marketing campaign for this would be to turn the colorful dots into M&M logos. Twister, being the popular game that it is, makes advertising for M&M’s a great idea and a success. Who wouldn't’t want to play Twister on eye catching M&M’s? There is a another version of Twister for the summertime. It involves attaching a hose and turning on the cold fresh water. The water runs through the hose into the Twister mat and out of a hole in the middle of all the dots on the mat. Lets have that water squirt out of all the “m’s” on the mat to make this marketing campaign a great idea.
M&M Ski Poles The area we are covering is Denver. Ages of people that go skiing and snowboarding in Colorado ranges from children to grown ups. Kids>Adults. Having the ski discs shaped and looking like an M&M makes a great advertising idea for everyone who rents skis and poles when they go the mountain for a fun time. The discs can easily be placed on and taken off so it can be a great cheap way of advertising for M&M’s. 32
M&M Billiard Ball First target people, who are around college student age, like to play pool. After school or work, you can play with funny M&M balls. In addition, this is not only for our first target but also its campaign will effect the older generation because they like to play this game too. So, this campaign will be a good idea to promote the brand, and become more famous. 33
Pocket tissue In Asian countries, it is a famous way to promote the brand by distributing pocket tissues to people who are in the shopping mall or downtown. This campaign is really effective when it is the winter season. In addition, this campaign will not cost very much. All we have to do is design an ad to put on tissue and then distribute them.
M&M Car Plate Denver area has the Rocky Mountains that people can do winter activities in. Therefore, during winter time, many people from other states will visit Denver by flight and also by driving! While driving through Denver areas people can concentrate on other car plates and if we offer M&M customized car plates to people who visit Denver they would like to use this because it is cute and we can promote our brand. 35
Budget Breakdown: Denver 36
Budget Breakdown Total Budget for M&M Campaign: $10, Summer: Our summer advertising touch points include: twister, billiard balls, and bean bag toss. We will plan to budget 60% of our total on this season. Fall: Our fall advertising touch points include: bowling balls and the car plates. We will plan to budget 25% of our total on this season. Winter: Our winter advertising touch points include: ski poles, pocket tissues, and Christmas decorations. We will plan to budget 7.5% of our total on this season. Spring: Our spring advertising touch points include the frisbees. We will also plan to budget 7.5% of our total on this season. 37