MARS ICE CREAM Strategy Case
1. How would you resume the strategies adopted by Mars to launch its ice cream products?
Mars Strategies carried out for the introduction of his product Mars Ice Cream was based on two fundamental premises:
a) The quality of the product, something really good and high quality, which gives confidence to consumers who want healthy products and to know that they are eating something good. Another good strategy was the creation of premium-price category, which gave more emphasis to the union quality-price, something difficult to overcome. Although this implies a lower marginal benefits of the product, which must be compensated by sales volume, strengthening it with a heavy investment in advertising and marketing, the initial bet was strong and good.
b) The geo-strategy: Operation in Europe was marked by competition with Unilever and Nestle, which followed a policy based small retailers in the gift of refrigerators in return for exclusive sales of their products, making it impossible to mars be included in them. For which purpose, Mars took a different way that was talking to 2nd level brands in important countries like UK and France to take advantage of its distribution facilities. Another good strategy was to fill their fridges with substitutional elements requested the small retailers, because if mars wanted market share, should make concessions before. Thanks to this agreement with the small retailer could reach all possible outlets.
2. Do you think that Mars will ever make significant profits from its ice cream operations? Why? How?
Over time they will. They have a good product, good price and quality and by now maintain a market share that leads them to offset costs. They need to keep going up slowly but with the same idea of their product, something good and cheap. One thing that sets them apart from others is they are not ice cream for dessert, as Nestle and Unilever focus on desserts. Having passed the defense line of its competitors, Mars must relaunch a marketing and advertising campaign to avoid falling into the oblivion of consumers. Once the sales increases and a loyal clientele is created , other strategies may be taken with respect to theircompetitors to gain market share.
Comentarios desactivados en MARS ICE CREAM Strategy Case /
05 Dic 2011
por
Álvaro Rodero Bermejo
MERME /
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