Angel Rose Munoz
American Intercontinental University
Unit 5 Individual Project
MKTG 205 – Principles of Marketing
August, 17, 2012
Abstract
The following information provided in this paper explains how a specified company utilizes proper and effective marketing methods in order to sell their products on a global scale. Furthermore, in reference to the company, their tactics, methods, and constraints within the business involving the target market, pricing strategy, and company competition are demonstrated in this paper as well. The specified company referenced in this report is Mars Inc.
Unit 5 Individual Project
Introduction
The principles of marketing apply to every business and operation that produces and sells some type of commodity in exchange for profit. The marketing mix contains specific tools, which help companies and their marketing team to build and evaluate a product, structure the price based on the value, effectively promote the product, and place the product with best-suited channels of distributions. For a company that operates on a global scale, such as Mars incorporated, these tools are even more important to assess.
Describe Main Line of Business of the Company
Mars Inc. is one of the largest privately owned companies in the U.S.A alone (FAQs, 2012). Best known for their chocolates and candies; the company offers a diversity of other products from segmented areas within their company concerning pet care products, symbioscience, drinks, gum, and foods (Market Summaries, 2012). The company has approximately over 70,000 associates working nationwide at one of their facilities, which are located globally in over 73 different countries (Where we Operate, 2012).
Name Four Countries in which the Company Operates
The Mars Company caters to all kinds of people all around the world. Their operations reach far across seas and dwell in major areas of a country’s region (FAQs, 2012). Some notable countries that Mars currently operates include the following: 1. The United Kingdom: One of Mars’s oldest operational locations dating back to 1932. 2. France: The first Mars operation launched in 1951 and in 1952 begins importing pet food (History timeline, 2012). 3. China: The first China Mars operation launched in 1914 with Wrigley being the first segmentation that began selling products within the country (History timeline, 2012). 4. Mexico: The first Mars establishment was fully operating in 1991 (History timeline, 2012). By 1995, the establishment had grown to become the largest and most effective Mars plant nationwide (Mars, Incorporated History, n.d).
Implementation of Competition
Due to the segmented areas, the company has several manufacturing industries of competition. These include areas of: candy, beverage, nonalcoholic beverages, teas, coffees, consumer products, and pet products (Market Summaries, 2012). Each segmented area has specific companies that compete with Mars Inc. For example, their beverage area competes with Coca-Cola and Pepsi Co., while their chocolate and candy area competes with Hershey and Cadbury (Mars, Incorporated, 2012). Because Mars Inc. possesses a vast network of global facilities, the company serves many consumers across the globe. For example, the Hershey Company reported having stronger operations in the domestic chocolate industry, while Mars holds stronger operations globally controlling 15% of the world in the candy business alone (Mars Chocolate, 2012).
Implementation of Target Market
Because of the vast products and segmented areas, Mars Inc. has a multitude of consumers from all around the world. The company’s key audience appears to be the average consumers who shop using personal factors. The company expresses that all of their marketing responsibilities and practices reflect and serve the concerns of their consumers (MARS, INC. MARKETING CODE FOR FOOD, CHOCOLATE, CONFECTIONS AND GUM, 2010). Furthermore, they state this consistency applies globally as much as it does domestically, due to their belief in consumer equality. Concerning, the Mars chocolate division, the company has vowed to stop advertising and direct marketing to all children worldwide that are under the age of 12. (MARS, INC. MARKETING CODE FOR FOOD, CHOCOLATE, CONFECTIONS AND GUM, 2010) . This shows how valued the consumers and their ethics mean to the Company.
Implementation of Product Strategy
Because of their segmented areas, Mars Inc. possesses rights to many different brands. Some iconic brands have been around for over a 100 years. In their chocolate segmentation, they have more than 34 different brands (Mars Brands, 2012). They claim the success in product strategy and building their brands is based on the consumer’s needs, wants, and values. For example, in order to make some of their chocolate bars more appealing for various cultures, the company has changed the taglines on specific bars and candies (Summerfield, 2002). Another example shows that the company has implemented and vowed by 2014 the ending of all sales for chocolates and candies that contain over 250 calories (The Huffington Post, 2012). This commitment forced them to change and rework recipes and packaging for all of their domestic and international areas. The ultimate goal for the company is to improve their product’s nutritional values and to sell in a responsible manner. (The Huffington Post, 2012).
Implementation of Distribution Strategy
The Mars Co. currently has a wide scale level of global distribution with a complex network of direct and indirect channels. Since they are privately owned, they choose to utilize more areas with direct marketing. Furthermore, their distribution channels must differ from one another in order to serve specific regions due to their segmentation. This includes the importing and exporting of products to and from overseas. In fact, more than 60% of the company’s sales originate from overseas. In 1914 Mars only imported products from the U.S.A and Australia to sell in China. By 1988, they began using third party agents to distribute products within China. In 1993, the Mars China factory began production (Mars China, 2012). Since then, the China operation has been claimed as one of Mars’s most successful and extensive distributors. In addition, Mars continues to have promising sales with their brands in more than 180 countries (Martin, 2008).
Implementation of Communication Strategy
Mars Inc. takes promoting, advertising and communication marketing very seriously. The company has a written code that reiterates their commitment of creative, yet responsible advertising. Their code applies to all their food, and candy confections, and is implemented worldwide. (MARS, INC. MARKETING CODE FOR FOOD, CHOCOLATE, CONFECTIONS AND GUM, 2010) Furthermore, the code applies to particular promotional actions and materials produced by the company including, but not limited to the following : online communities, sponsorships, branded websites, and all media advertising, such as digital, print, and broadcasting promotions (MARS, INC. MARKETING CODE FOR FOOD, CHOCOLATE, CONFECTIONS AND GUM, 2010). The company also has an extensive list of mandatory rules for their communication activities concerning nutritional standards, brand characters, celebrity usage as well as the methods for ethically targeting families and children. A notable rule implied is that Mars will not portray physically inactive children in any of their advertising (MARS, INC. MARKETING CODE FOR FOOD, CHOCOLATE, CONFECTIONS AND GUM, 2010).
Implementation of Pricing Strategy
While the pricing of some Mars products have slowly increased since the day of the five cent Milky Way candy bar (Brand Facts, 2007), the company prices their products for sale at reasonable costs while maintaining overall value and satisfaction. Consider this, the volume of the Milky Way candy bar has shrunk in ounces over the years by small increments. This saves on production costs and keeps the price low for consumers. Furthermore, the Milky Way has been transformed into different varieties and sizes of bars such as ice cream, midnight, caramel, minis, fun size, and 2 To Go bars (Products, 2007). Differences in assortments means the prices will be affected. In addition, the overseas version of the Milky Way, the Mars bar, is produces based on the demands of the oversea consumers (Science Bit, n.d). A change in product production will also mean prices will differ for international candy verses domestic. Being aware of consumer demand allows Mars to price their products honestly. This in turn allows the company to compete amongst competitors within different segmented areas.
Differences in Implementation: From One Country to Another
Although the company operates domestically and internationally, Mars continues to apply their ideas and values throughout the entire global industry. However, operations will also differ in many areas and from one country to another. These areas include specific barriers and constraints such as distribution practices, language, culture, gender, media, and product rules, regulations and stipulations (Perner, n.d). For example, Mars does not always run the same advertisements in every country. Besides a language barrier, they have to consider each country’s sensitivity’s to specific areas, beliefs and values. Take for example culture barriers, humor in each country will differ greatly (Perner, n.d). Commercials that are funny in The U.S. may be boring in the UK. Or commercials that are funny in Japan may be offensive in China. The company has to consider all constraints so as not to dismay consumers with any of their activities or actions. Conclusion In conclusion, the Mars Company is atop leader in global operations. Possessing successful brands and dealing in different segmented areas gives the global giant reassurance in the industry and stability for growth, profits and success on a worldwide scale. References
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