Strategic Marketing Report: M&M's Market Entry, STP, and Marketing Mix

This report provides a comprehensive analysis of M&M's strategic marketing decisions. It begins with an introduction to strategic marketing and its importance, followed by an overview of M&M's background, objectives, and an analysis of its external environment using PESTLE and internal strengths and weaknesses using SWOT. The report then explores M&M's market entry strategies, segmentation, targeting, and positioning (STP) approach, and its marketing mix. The report further discusses recommendations for new product development. The report concludes with a summary of key findings and insights, emphasizing the importance of strategic marketing in achieving business objectives and maintaining a competitive advantage in the confectionery market. The analysis considers the dynamic market environment and the challenges faced by M&M, including competition and evolving consumer preferences. The report also highlights the importance of understanding political, economic, social, technological, legal, and environmental factors in shaping M&M's marketing strategies. The report also discusses the company's strengths, weaknesses, opportunities, and threats.

STRATEGIC MARKETING DECISION

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
MAIN BODY .................................................................................................................................1
1. Company’s introduction, objectives, PESTLE and SWOT Analysis ................................1
2. Market entry strategies.......................................................................................................1
3. Segmentation, targeting and positioning (STP)..................................................................3
4. Marketing Mix ...................................................................................................................5
5. Recommendations .............................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Strategic marketing is a plan for identifying customers’ needs and achieve their
satisfaction for increasing productivity and profitability. It is to improve performance of
company. It is to determine one or more competitive advantages in the market and allocation of
resources to exploit them. The objective is setting realistic objectives, creating business tactics,
taking past marketing failures into account and identifying the most essential way of business
operation (Adeola, Boso and Adeniji, 2018).
Assignment is based on M&M. They are dealing in colourful button shaped chocolates;
each has a letter 'm' printed on the lower side. It is the flagship products of Mars Wrigley
Confectionery division of Mars Incorporated.
In this context, study is based on objectives, PESTLE, SWOT analysis, competitors and
customers, market entry strategies, segmentation, targeting and positioning, marketing mix and
recommendations of new product development of a company in the market.
MAIN BODY
1. Company’s introduction, objectives, PESTLE and SWOT Analysis
Company background
M&M is a privately owned company so the financial data is limited. Production of the
company was started in 1941 in a factory situated at 285, Badger Avenue in Clinton Hill,
Newark, New Jersey. M&M produce colourful candies which is made as a peanut coated in a
milk chocolate. Mars candies are designed with the perspective of making attractive and
colourful chocolates. This concept was introduced by “Mars incorporated” on September 10,
1941; approximately 76 years ago.
Initially, it was introduced in United States. The chocolate manufacturing industry in US
includes 1600 companies with generating an annual revenue of about $20 billion. Careful
observations about situations related to competition of the chocolate company's in the market,
Mars decided to come up with a colourful idea of creating candy chocolates. This concept of
making innovations in chocolates help to gain lot of fame within a short span of time. This idea
inspires people to buy more M&M chocolates. Almost among 100's of countries.
Company's first big customer was a soldier who influenced this idea. It is this concept
was inspired by the soldiers to carry chocolates that could work and store without melting.
1

Variations in the climatic condition effects chocolates. The company had an idea of making the
slogan for their brand. M&M decided to have an idea of giving it a worldwide Slogan which
makes the brand more attractive and communicable. The slogan was defined as “Melts in your
mouth, not in your hands” as it was inspired by the real thoughts.
In 1950, the idea of giving a trademark to the product was discussed and as a result, a
small 'm' was imprinted in black colour on candy's one side. In 1954, black coloured 'm' was
printed on candy which was replaced with white colour. In 1960, M&M's added the colours to
candies including yellow, red and green colour. In 1976, orange coloured candy was introduced
and red coloured candy was discontinued because customers were complaining about red colour
dye on chocolates.
In 1980, M&M stores were started internationally at Australia, Canada, Europe, Hong
Kong, japan, Malaysia and UK. These candies were available in many sizes and fillings.
Recently, this year M&M introduced the combination of M&M's with peanut, caramel, pretzel
and peanut butter (Fellows, and Liu, 2015).
Company objectives
M&M had a great perspective of delivering a good quality of product to customers. This
company had an objective of lasting mutual benefits for all the individual creating positive social
impacts on the minds of the consumers with respect to the following five principles such as
quality responsibility, mutuality, efficiency and freedom. One of their finest objectives is to
create a large wealth generating revenues in an organization. M&M production got a great
success in its career. Development of right product helps them to get unique combination of
innovative products. This determined highly revenue generated ideas.
Environment factors are more focussed rather than generating economic wealth Company
always runs with the perspective of earning very highly in the market. Accepting the fact, that in
this competitive world full of innovative ideas, company needs to focus more on their production
and provide customers with new concepts of delivering services. Company needs to think about
their future feedbacks also.
 To enhance profit of business by 30% till the end of 2019.
 To develop two new products till the end of 2018.
 To open 30 more outlets in other locations till the end of 2019.
2

PESTLE Analysis
Political factors
This factor is related to government policies. When the government changes its policies
or procedures related to taxation rate, then the company get affected very easily in the market.
Political factors are one of the major problems faced by the industries on daily basis.
M&M is a leading producer company of chocolates in UK. In 2010, company had faced
many political challenges as VAT were imposed by the government and this leads to rise in the
price of chocolates of M&M. So, this company is planning to introduce a new product in the
market (Fellows, and Liu, 2015). Managers of M&M are trying to pursue political factors so that
company can get their stable value in the market. If the government of a country is unstable, it
can negatively affect M&M industry the main M&M market of presence are US and UK, which
are characterised by low political risks.
Economic factors
In 2007, the owner of M&M Company decided to outsource the major part of its
business. Increase in the taxes lead to an increase in the cost of products. So company is
suffering from economic crisis to a greater extent. After worldwide economic crisis, the
company somehow manages to cover loses of the firm. Managers decided to produce a new
product of manufacturing cake in the company. This helps organization to balance risk of
economic factors in company. M&M is making continues efforts economic factors of the
company so that company's economic situations stay stable in the market. This will increase
purchasing power of the customer. Consumer's buying capacity is affected by the global
economic crisis. But M&M chocolates can rapidly be sold even during economic pressure times
at low prices unlike electronic or cars.
Social factors
The people created a conscious awareness about the content added to manufacture and
the chocolates used alcohol with coca in restricted quantity. So due to this socially unacceptable
product, M&M Company were again forced to face some challenges. This changes ideas of
adding specific ingredients in producing chocolates. So now planning of the cake production was
started by the managers of the company (Fellows, and Liu, 2015). M&M demanded by wide
categories of buyers, from kids to adults. So the public is worried about quality.
3

Technological factors
Technologically, all the packing ideas and machinery were innovated again, due to the
advancements of society. Instead, Technological factors also help to raise the growth of M&M
Company. These were changes in manufacturing of the merchandise where company needs to
develop a new product. This will increase productivity of firm. Some new occurrence will bring
technological advancement of the company. M&M are using technological changes like online
sales and online customer involvement.
Legal factors
This factor affects both external as well as internal sides of M&M chocolate producing
firm. Legal factors are responsible for assuring quality standards. There are prescribed policies
and legal norms of the government to maintain consumer laws, labour laws etc. which affects
company's overall performance. M&M has to follow rules and regulations of us department of
agriculture (USDA) for the production.
Environmental factors
These are the main factors which restrict the company's growth. The machinery plans used to
change structure as the machines used earlier release lot of carbon content in atmosphere and this
brings some environmental modifications in the company (Fellows, and Liu, 2015). By altering
the use of friendlily techniques instead of older technologies, it helps to bring healthy
environment. Lot of new technologies were used to produce less amount of carbon content in the
atmosphere (Held, 2015). This company needs to concern about the health of the employees like
coca beans are unlikely thrown out.
SWOT Analysis
Strengths
M&M maintains an astronomic position in the worldwide market. This company is
serving yummy chocolates from last many years. This chocolate industry has increased
expectations to expand more. This is one of the most trusted chocolate brands of the world.
People of all age group love to have M&M chocolates. Brand recognition and trust of costumers
in company forced management for planning of the new product. Customer's support to the
company is the great strength of the business. Customer is fully satisfied with taste of the candies
and this shows the customer interest in buying candies (Figueira, Poli and Isidoro, 2016).
4

Well known brand name, good team work, high quality product, good reputation among
suppliers and customers is a great source of strength for this M&M industry.
Weaknesses
The cost of chocolates of M&M brands are comparatively higher than other brands and
this distracts consumers towards other chocolate brands. It is hard to always come up with new
innovation all the time in the candy market and also M&M chocolates are not easily affordable,
so this can be counted as one of the disadvantages. Also, the stores of this brand are
internationally situated involving the United States so in many other small countries are not
concentrated properly. The stores are somewhere hard to be found (Hasan, 2016). M&M's
promotional campaigns requires considerable funding. One of the major weakness is complex
business environment
Opportunities
M&M holds a very good impression in the minds of people. New ideas of manufacturing
a cake will be highly appreciable by consumers. As M&M stores are available worldwide and
they are not restricted with one product but they are licensed with 30 more new products. This
creates a very big opportunity for the firm to implement their ideas of producing cakes. This is
one of the trusted brands of the world which need to astonish customers by creating many
customer satisfactory products. This is a multinational brand that left its taste with full of
sweetness to consumers. Consumer demands are creating big opportunities in worldwide market.
M&M needs to serve more people (Held, 2015). M&M has a great opportunities of wider
diversification of products.
Threats
It is not possible to survive in the market with the same strategies every time. There is
always an extraordinary need of providing something new by innovation or ideas to the market.
As companies are dealing with a lot of competition in the market so risk of losing their
customers is always the biggest threat to the industries. So, M&M is coming up with a new idea
of manufacturing cakes. It is difficult task of surviving in this fast forward society as there is a
big threat by all the companies in the market who can launch every time something new in the
market. Managers of the company are always ready to accept challenges in this tough
competition. (Held, 2015). There are further growth and trade barriers which is a biggest threat to
the company. M&M have lot of competitors in this industry.
5

Competitor’s analysis
Now a day, Competition of all the companies are increasing day by day in the market.
Mainly those firms which are dealing in same products with different brands have a great
struggle to maintain their positions. The market for chocolate bars is highly competitive.
Business managers always think of new and innovative practices so that they can sustain in the
market for longer run. The ideas they practice may be smart advertisement or attractive slogan
lines. They practice different ways of promoting the brands through TV channels or through
famous personalities as a Brand-ambassadors.
Some competitive brands of the company are:
 Cad-bury
 Nestle
 Hershey's
There are many ways that are found by meeting the customer's expectations in terms of pricing,
quality, taste, attractive packing etc. These ideas were practised to hold the likings in the society.
M&M is trying to bring the concept of coloured candies in the market while cad-bury is trying to
mix nuts to make it tasty and crunchy. On the other hand, Hershey's trying to give new ideas for
providing dissolving concepts of chocolates with milk especially for the people of younger age.
And now, M& N Company is planning to provide the customers with delicious cakes.
Criteria M&M Competitor Cad-
bury
Competitor Nestle
Profit generation Profit generation is
more as compared to
both the brands
Profit generation is
less.
Profit generation is
very less as compared
to both the brands.
Customer
satisfaction
Customer is highly
satisfied.
Customer is less
satisfied as fixed
varieties of products
that are manufactured.
Very less customer
satisfaction. No new
product manufacturing
ideas were involved.
Number of outlets Stores are located
internationally.
Stores are located at
fixed places.
Less stores are
available.
Products M&M introduced a Only dairy products Less production in
6

large variety of
products.
are introduced comparatively.
Affordable This is an international
brand so it is highly
approachable in UK.
Less affordable in
India
It is an Indian brand
which is easily
affordable by the
Indian customers.
Cost of the chocolate
is more so it is Less
affordable.
Pricing Costs of the chocolates
are higher than others.
Costs are lower
comparatively
More pricing but less
in comparing to
M&M.
7

Customer Analysis
Chocolates are the most popular and widely consumed product in the world. People of all age
group likes to eat chocolates. The customers like to have candies and sweets whenever they feel
bored.
Ultimately, this is more frequently used product. Chocolates help in changing the taste as
well as mood of the consumers. This is an easily affordable product in our country-market.
People generally buy chocolates at the time of their birthday or any festivals. When customers
want to taste good, they can spend any amount of money from their pockets, especially for
candies or chocolates that always work and is easily available. This is an easily available product
in the market and has a reachable approach.
One cannot carry sweets all the time so people prefer to carry chocolates with them. It is
available at almost every store. When birthdays or any celebration activities occur then one
prefers chocolates rather than buying and distributing sweets.
M&M concept of making colourful candies attract children the most. These candies are
very price sensitive which can be easily affordable by all the customers. And it is easy to carry
technique for the product that influences their customers to buy more for its future consumption.
The customer's satisfaction level to buy chocolates is very high as they do not need to search
availability of the candies everywhere.
These are list of things which influence the consumption of chocolates in our daily
routine:
 Satisfaction level
 Availability
 Easy to carry
 Liked by people of all age groups
 Easily affordable
 Innovative ideas for attracting children
2. Market entry strategies
It is a plan method of delivering products or services to a new target market. It refers to
establish and manage contracts in foreign country while importing and exporting services
(Bahadir, Bharadwaj and Srivastava, 2015). There are various strategies using for entry in market
such as direct exporting, licensing, franchising, partnering, joint ventures and other.
1

They are as follows:
Direct Exporting: It is selling directly into the chosen market. Many firms are
establishing sales programs that helps to turn agents and suppliers to represent further in the
market. Therefore, it is important that chosen agents and distributors are better handlers (Market
Entry Strategies., 2018). The advantage is to eliminate intermediaries for potential profits,
control over all aspects of transaction. The disadvantage is it requires more time, energy and
money.
Licensing: It is an arrangement where firm transfers the rights to use of products or
services to another company. It is a particularly useful strategy when buyers of the license have a
large market share in market. One of the quickest and the most profitable ways to expand
business to foreign market by use of this strategy. The benefits of licensing is it is easy to quick
arrangement and lower capital requirements (Bahl and Chandra, 2018). The cons are low level of
control.
Franchising: It is the market entry strategy that allows another party to operate a
business under brand name. It works for firms that have a repeatable business model which can
be easily transferred into the market (Datta, Ailawadi and van Heerde, 2017). There are two
caveats that is required when using this model. The first is that business model should be either
unique or having strong brand recognition which can be utilized internationally. Secondly, it
could create future competition.
Partnering: It is helpful to enter in foreign markets and in some parts of the world. It is
particularly useful strategy in those markets where difference between cultures is essential for
both business and social. The pros of partnering are to share idea and take risk by both partners,
provides possibility to gain new vision and expertise. The cons are to clash of culture, limited
outside opportunity, lack of communication and unclear partners (Hamzah and Sutanto, 2016).
M&M's introduce a new product that is cake in the Malaysia market, so that they have to
use franchising strategy for entering in this market for development of their product. Company
must use this strategy because it is easily transfer of goods and services in Malaysia. This
scheme is helpful for a strong brand recognition and create future competition. Company have
followed this strategy for customers’ satisfaction, product development and earning profits. This
is also helpful to entry in foreign market. It is important for firm for future growth. The entity
adopts this strategy for sale and distributions of goods and services (Huang and Sarigöllü, 2014).
2

The benefits of this scheme is to increase brand equity, and customers’ loyalty. It gives avenues
to technical support and qualified staff. It is to motivate the management and increasing
profitability.
3. Segmentation, targeting and positioning (STP)
STP is the wide framework that summarizes and alters the processes of market
segmentation (Leih and Teece, 2014). It is the process in which group of buyers within a market
which are dividing and profiling according to variables. It is a familiar strategic approach in
modern marketing. STP comprises three stages in a process to determine types of customers that
exist, and also selecting the best off trying to serve and implement by optimizing products and
services.
Segmentation: It is the part of process of division for a wide market into small segments
that consists of individuals who have same requirements, needs and interests. It includes finding
out types of customers with different needs exits (Segmentation, targeting and positioning.,
2013). For example, demand, speed and performance.
It is to identify and determine important characteristics of each market. There are several
kinds of variables that are used in segmentation such as demographic, psychographic, life style,
beliefs and values, behaviour, geography etc.
 Demographics: Age, gender, income, education, types of residence, occupation and
marital status.
 Psychographic: Interviews, surveys and customer data which are using to target the
audience (Murphy, 2018).
 Behaviour: It includes purchase, brand loyalty, usage level and using distribution
channels.
 Geographic: It includes country, region, city and state.
The company is selecting the demographic segment for developing their new product, so
that they are identifying needs and wants according to age. They are attracting young audiences
on their product. Therefore, company make efforts on development of their new product in
Malaysia.
Targeting: It is process of determining a selected market and planning the advertising
media used to make the segment appealing. It is a changing environment. It is evaluating
3