Strategy For Mars Ice Cream Distribution

MARS ICE CREAM: DISTRIBUTION STRATEGY PROBLEMS

Answers to the Case questions:

How would you resume the strategies adopted by Mars to launch its ice cream products?

The first thing that Mars need to know is what are the causes of its failure and assess the strengths of its competitors’. For example, in this case it is evident that Mars is not doing enough to compete with the others but also that it is not customer or market oriented as it is clearly stated that they do not sell dessert ice creams, bulk packs or children´s novelty ice creams, for which there is also demand.

As a business entity, Mars needed to identify which are the products which are on high demand on the market because its profits depend on the sales. The more they sell, the bigger the profits and this can only be achieved if they give the market a variety of products depending on the demand. Therefore Mars need to make a decision to include the dessert ice creams, bulk packs or children´s novelty ice creams, on its products list.

Secondly, Mars need to do an assessment on who are the best and trustworthy retailers they have on the market. This will help them to know the challenges, the retailers face but also let them input in the strategy since their sales depend on them, customer engagengement. It will also be beneficial for Mars to give these trusted retailers special attention and treatment to ensure that they feel part of the deal. At the same time this will reduce the unnecessary cost they used to incur on procuring the freezers even for retailers who were not performing well.

Lastly, Mars should still identify small shops with an aim of building a good and long term relationship with them. This will still give mars an added advantage since the other competitors’ are only focusing on big retailers. These small shops should be given the products according to the market needs of their respective geographical area.   In short I feel Mars should restart the strategy in this way

1. Identify the fast selling products on the market and make sure that they produce all of them so that they make avail to the retailers a full pack of the products.
2. Assess the trustworthy and reliable retailers with an aim of building good relationship with them. On this one, the identified retailers should be given special attention and treat to ensure that they feel part of the deal. This can either be through the distribution of the freezer or any other incentive.
3. Assess small shops and then try to build longtime relationships with them. This will give Mars an addition outlet, which will be an added advantage, and on the other hand it will ensure trust and good business in future.

1. 1. Do you think that Mars will ever make significant profits from its ice cream operations? Why? How?

I feel after launching this new strategy and with continuous promotion, Mars will be able to make profits because they have a variety of fast selling products on the market but at the same time, they have trustworthy retailers.

This will be achieved by having a variety of products, and this will mean more sales than before and then profits. The small shops will also increase the sales even though it is at a low pace.

Comments Off on Strategy For Mars Ice Cream Distribution / 03 Dec 2011 por Tabithah Mkandawire Kaluwa
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