Marketing and Entrepreneurship in Mars Australia

Question: Discuss about theMarketing and Entrepreneurship in Mars Australia. Answer: Introduction Urbonaviius and Dikius (2008) explains marketing as a process under which enterprises after identifying customers requirements, produce or modify their items in order to have competitive edge against different other players. When an entity comes up with new services or items marketing activities like defining the target segment and deciding accurate strategies for 4Ps becomes highly important (Hitt, Ireland and Hoskisson, 2007). In reference of Shahhosseini (2011) marketing strategies implemented by entities are similar however Kaplan and Haenlein (2009) argues it to be varying based on various factors related with nature of product and personality of target consumers. The purpose of doing this report is to discuss a market plan regarding a new product being launched by Mars Australia. Based on new product, target segment will be categorized and appropriate strategies related with marketing will be discussed in the report. Company Background and Product Description Mars, a global enterprise, has segregated its offerings into six businesses; chocolates, pet care, Wrigley Gum and Confections, nutrients and drink that assists the company to earn nearly $30 billion USD in a year (Mars Incorporated, 2011). The family-based enterprise works as per five principles of creating quality, being responsible, generating mutuality, efficiency and freedom where the entity through superior performance and continuous communication regarding its commitment has created strong brand image among people (Mars Incorporated, 2011). Mars entered Australia in 1954 initially for selling its chocolate bars however currently company operations have extended marvellously with six production sites throughout the region (Mars Incorporated, 2011). The company offers employment to nearly 2,000 people and is among the leading entities of Australian consumer brands where in spite of manufacturing its majority of sales in the country it exports them to almost 30 other countries al l over the globe (Mars Incorporated, 2011). The company has come up with a new product variant of MM in Australia with special yellow and brown packaging banana flavour (Australian Food News, 2016). Mars launched MM in 1980s and after then have introduced several innovative and different varieties like Pink White in 2011 to spread awareness regarding breast cancer among people (Australian Food News, 2016). As per Nielsen, Australian confectionary sugar grocery segment is held by number of strong brand where MM have market share of 10.2%, Nestls Allens with 19.6%, Natural Confectionary Company 14.2%, Pascall with 11%, Starburst 7.6%, Cadbury 2.2%, Skittles 0.9% and Kit-Kat 0.1% (Australian Food News, 2016). Target Market Martin (2011) has identified market segmentation depending on various factors like demographic dimensions as efficient means to serve the varying requirements of people. Selecting and defining the target market for items being offered assist the entities to create strategies that create desires among people to buy the product (Fejza and Asllani, 2013; Daft, 2011). MMs candies are colourful, uniform and sweet candy chocolates where Mars often introduce new flavours to attract and retain its current customers. Target segment for banana flavour candy can be categorised as per demographics and behavioural factors under which elements like age, income and user status are analysed. Table 1 and 2 illustrates the demographic and behavioural segmentation of MMs new banana flavour candy. Table 1: Demographic Segmentation Basis Description Gender Male and Female Age 5-30 years Income Middle level Income Group Family Size Single, Married, people having kids (Source: Authors Creation) Table 2: Behavioural Segmentation Basis Description User Status Buys chocolates or candies at least once a month Occasions Birthdays, Festivals and for Special moments on Valentines or Friendship day. (Source: Authors Creation) The target segment for the new banana flavoured MM is going to be children, men and women. However, the focus of marketers must be mostly to teenage girls and children who are generally very fond of eating candies. For having better sales in families and children, the enterprise will have to target married women who are decision-makers of buying food items and could encourage word-of-mouth for the item Hitt, Ireland and Hoskisson (2007) explains word-of-mouth as an efficient strategy for increasing sales of items when people refer their acquaintances for the items being good in Quality. As per research, Mars MMs earlier flavours like orange candy were highly encouraged by the consumers for its taste and quality which can beneficial for the firm currently as well for promoting banana flavours (Mars Incorporated, 2011). Behavioural segmentation covers special occasions like Halloween, Christmas, Easter or Valentines Day where people love to share sweets to their loved ones. Additionally, user status for instance how many times in a week or month people buy similar items could be utilised by marketers to create demand for banana candy. User status of an item makes the firm understand the preference and attitude towards the product based on which assumptions for future purchases could be made by marketers (Pour, Nazari and Emami, 2013). For MMs banana candy, people who love to buy chocolates for at least once a month is going to be targeted. Nevertheless, couples and friends could also be targeted by Mars for these new candies where they could be convinced to buy it on regular basis for sharing their feelings. Marketing Strategy Companies for promoting its new offerings use innovative strategies under which effective means for creating interest for items are generated through Marketing Mix (Pour, Nazari and Emami, 2013). It includes combination of factors like Product (essential features), Price (value), Place (availability) and Promotion (communication) linked with item to promote awareness among target consumers (Singh, 2012). Goi, (2009) claims marketing mix as a conceptual framework under which decision-making abilities of marketers are identified with respect to how well they could configure the offerings in accordance with requirements of people. On the other hand, Purnomo, Lee and Soekartawi (2010) considers Marketing mix as powerful strategic mechanism to differentiate the items against those already available in the target segment. However, Shahhosseini (2011) argues the concept of marketing mix as inefficient mechanism where only production-orientation has been used to determine the effective strat egies for increasing the sales of the item. Apart from ignoring customer-orientation in marketing mix, some researchers also argued the concept for not being used for relationship building as means to have awareness among target consumers. Nevertheless, McCarthys 4Ps Marketing Mix has been found to be an efficient technique to spread awareness of new offerings among people with appropriate pricing and promotion strategies (Nuseir and Madanat, 2015). The marketing strategy for MMs banana candies are as follows: Product The first feature of marketing mix is product where marketers must clearly identify the distinct features of the item against competitor that helps it to survive in the market with strong performance (Rotfeld, 2014). MMs candies are durable, unique and instantly noticeable with letter M printed on chocolates. Under hard coating of shell of these candies, different flavours are filled which helps the marketers to preserve these candies under diverse temperatures and is suitable for carrying for long journeys (Rotfeld, 2014). However, for the new candies, bananas mixed with chocolate flavour texturing and crunch of crisp will be used that will instantly melt at mouth making it irresistible and good at taste. Packaging of these candies will be innovative with special themes like fun (cartoon), festive or love for drawing the attention of children, families and friends respectively. They will be available at sizes ranging from mini, mega and M-azing (candy bar version) with different pri ce range that will allow its target consumers to buy the product as per their suitability. Price Price of items can be explained as monetary amount that a person pays to benefit from value being offered by marketers in the form of product (Rotfeld, 2014). Pricing of items could be fixed under categories of skimming, penetration or competition-based where under the first the marketers fixes high price for the items and after creating its awareness in the market lowers the values (Singh, 2012). In case of penetration, producers uses low price for entering the target market and after then fixes high value for the item while competitive-based pricing enterprises decides the price of items based on competitors strategies (Singh, 2012). Australian sweet segment includes different players ranging from Nestls Allens, Natural Confectionary Company, Pascall, Starburst, Cadbury and Skittles where Mars requires setting its new candy prices according to competition (Australian Food News, 2016). Competitive pricing will allow the firms to have strong market demand where people would be able t o compare banana candys quality and taste against other similar chocolates. Table 3 illustrates the pricing of banana candies based on different sizes of candies Table 3: Pricing for new MM's Banana Candies Package Price Mini $7 Mega $15 M-azing $27 (Source: Authors Creation) Promotion Promotion includes integrated marketing campaigns under which marketers utilises several means like print and digital platforms to inform people basic advantages of using the item (Shahhosseini, 2011). Without use of effective promotional measures marketers will never be able to have successful launching of new items as people unawareness regarding the product will result in reduced sales and failure (Shahhosseini, 2011). In order to have strong performance in the market for MMs banana flavour advertising campaigns could be undertaken by the company through television commercials, magazines advertising and promotion through online social mediums like Facebook and shopping websites like eBay. Social media has become important platform to inform people regarding the new offerings where entities can create separate page, communities or could introduce contests for attracting the attention of people (Neti, 2011). Apart from social medium, the company can utilise promotional activities in malls where participants will be encouraged to take part in small events and would be gifted with candies on winning. For increasing the demand for the item among children, schools and parks could be approached where they could be given banana candies for free. On the other hand, for retail stores promotion, sampling (free testing) and bundled offers must be implemented by the company where people will be able to have different range of products offered by Mars along with banana candies within low price. Place Kaplan and Haenlein (2009) has identified place as the most influential feature to create awareness and loyalty among target segment as non-availability of items could result in dissatisfaction and loss of consumers base. Consumers generally use retail stores and online medium to buy products therefore MMs marketers must implement strong distribution channel where most visited stores, malls and websites for shopping have stock of banana flavoured candies. Moreover, the companys own websites must create separate offers and column related it new candy to improve the convenience level of consumers while having purchasing decisions. Additionally, medical or small stores could also be targeted for placing MMs banana candies where people could be given it as free samples which can help the firm to generate awareness and loyalty among consumers. Conclusion and Recommendations Marketing strategies assists the companies to create awareness for their offerings which often results in generating loyalty and competitive edge among the target consumers. Companies products differs based on features, benefits and categories that requires marketers to come up with efficient decision-making ability for targeting, segmenting and positioning (marketing mix) people for the items. The report selected Mars Australia as company that recently is going to launch new banana flavour under MM candy category. The first section offered the purpose of doing this report and highlighted general background for company and its new item. The second section discussed the targeting and segmentation of the product based on demographic and behavioural aspects. Marketing strategy covered the four essential elements of mix; product, price, place and promotion where different strategies have been suggested to improve the product awareness and sales. The pricing strategy selected for banana c andy is competitive-based and for promoting the item efficiently among people sampling, bundled offers and online platforms are going to be used. Australian candy segment includes string competitors like Nestls Allens with 19.6% market share for which Mars must design proper strategies to attract the consumers for its offerings. In order to have superior performance for MMs banana candies it is essential for marketers to follow integrated approach for determining effective strategies related with product. Reference List Australian Food News. (2016). Mars launches banana flavored MMs into Australia. Sentius [onine] A.p1. Available at: https://www.ausfoodnews.com.au/2015/08/31/mars-launches-banana-flavoured-mms-into-australia.html [Accessed 20 Sept. 2016]. Daft, R.L. (2011). Management. London: Cengage Learning. Fejza, E. and Asllani, A. (2013). 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