Mars, Ice Cream Distribution Problems

Mars is a well known manufacturer of confectionery among other products with a share of 5-10 % in the European Market. However, its ice cream activities didn’t give them any profit due to a misconceived distribution strategy. Transport and frozen storage from France to every demanding outlet raised the distribution price, which was not helped with the problems of the low unit cost of the items carried, the small drop sizes and the lack of packed location of the outlets in the distribution area. Moreover, the increasing occupation of competitors in the retail outlets, due to the conditioned free gift of cabinet freezers in order to maintain their exclusivity, was letting Mars out of many European markets.

As a result, if Mars wants to try to gain a good position in the outlet ice cream market, its strategy plan needs to be changed.

The new strategy requires to be based in its strong points and the opportunities the environment offers. The ideas down below are suggestions for the company to analyze them.

Mars has an excellent relationship with the grocers and they sell their chocolate products for a long time. Mars can offer them a product set which includes the cabinet freezer, the ice cream product and the rest of sweet brands at a price difficult to turn down.

In order to satisfy the customer’s demand in the retail outlet, Mars will need to decide between expanding its product range to the ones the retailer is looking for (dessert ice creams, bulk packs and children´s novelty ice creams) or look for a partnership with one or more brands which produce the goods required sharing the cabinet space in small outlets. Each of these solutions combined with a good delivery route planning, mixing big and small shops and supermarkets, will help to reduce the distribution’s costs.

To conclude, my opinion is Mars is a famous brand with high quality products that can survive to the current distribution dilemma. Developing a good strategy plan nowadays is essential for the company to effectively plot a successful solution to its problems and now the time to do it.

 

Comentarios desactivados en Mars, Ice Cream Distribution Problems / 03 Dic 2011 por Laura Ambrós Atance
MIGMAmad /

A Mars a day helps you work, rest and play

This is about being young, being informed and being curious. These are the clues for a good product strategy. There are many strategies adopted by Mars to launch its ice cream products that we have to be aware of.

At first we have to think about the people that are going to consume Mars’ products because that is the   “audience” and it is interesting to focus into three questions: ‘Who are they?’ ‘What do they want?’ and ‘Where are they?’ These are the clue questions in order to make a good business strategy, and in order to Mars is the first step they have to take and to consider.

Also, the promotion of the Mars products is important, in order to communicate the use of high-quality ingredients (such as real cream and real chocolate), and that is the reason for the significant advertising support they have across Europe.

Here it is an example http://www.youtube.com/watch?v=sNcz34eUP2A&feature=related

For a good freezer distribution Mars has considered to invest lots of money and make a huge effort in order to success in this market that is why they have long relationships with grocery trade, in order to diminished the difficulty in this sector if they want to obtain distribution for its multipack items. However, Mars Company has had problems accessing to freezer cabinets in many European markets, and this is an important disadvantage if we want to sell our products and be competitive. As a consequence of that Mars had to negotiate distribution agreements with other companies in various markets across Europe.

The main problems have been in the ice cream distribution because involves high costs and different problems that Mars have to handle with such as the transport cost because they have to sell many items in order to balance it. Also, there are many small shops around that have a sell limited number which is important to consider in order making the business strategy.

As a conclusion Mars Company said that it had made no profit on its ice cream activities up to the mid 2000s.

Mars Company, is able to make significant profits from its ice cream operation because this is an important diversified market, also the company is well-known around Europe (especially in the UK, where it is one of the most important ‘chocolate companies’ with an important influence in customers). Moreover, the ‘audience’ it is able to consume their products, and the diversified market is maybe an advantage when you have the prestige.

To sum up, in order to achieve this prestige in ice-creams Mars Company could think about new strategies in order to solve the problems with the transportation and the freezers (and associate with other companies could be interesting) because if they change this, the success of the Mars ice-creams is guaranteed in current market.

Comentarios desactivados en A Mars a day helps you work, rest and play / 03 Dic 2011 por Elisa Roman Luengo
MIGMAmad /

Net Impact Kick-Off!!

FIRST BRAINSTORM!!!!!!!!!!!!!

Comentarios desactivados en Net Impact Kick-Off!! / 02 Dic 2011 por Laura Navas Valle
MIGMAmad /

MARS’ STRATEGY

The objective of Mars was to build its share of the trade market doing a high quality product within the chocolate ice cream bar. They called the attention because of the use of real chocolate and great creams, offering a different product unknown at that moment.

Also it did significant advertising for creating a new necessity in the potential market, this means that they had spent a huge amount of money for being well-known. At the same time, it allowed them to be the first kind of this product range launched. They had taken a leader position in the market which is very important because of the impact made in people.The new competitors started to get introduced in the market, but Mars had already been associated with supra high quality, as a different experience the customer could not have with other brand.

In addition, a new premium price category helped them for being known. That was an extra help that they decided to apply, showing the dynamism of strategy.

Mars needed to be introduced in the shops, but the big companies denied the access to their freezer cabinets. It followed making deals with companies’ distribution of second and third line, which ones Mars had excellent relationship so its entrance in a share of the market was easy, now Mars wanted to be available everywhere. The problem still was going on because of the freezer cabinets. Then Mars established agreements with the retailers depending on the sales they did, providing or borrowing the freezer cabinets, fitting the problems it has in its strategy.

In my opinion Mars had two options in its strategy distribution. One of them, it would be reach agreements with big companies, letting them a part of the freezers although the price was high. The good quality of Mars would be appreciated by the clients, and the retailers could feel the necessity of having their own fridge for Mars because of the sales. The second one would be to make some new products, betting for the good confectionery of the company, making the most of the freezer cabinet in the case that Mars had to provide them to its retailers, gaining new markets.

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

I think Mars will. They are already well-known as a brand with high quality. Everybody who thinks in a chocolate ice cream bar thinks in Mars. It has a very good position in the market. People would be available for tasting something new of this company. I think they have to launch new products, related with different flavors, or some items with bigger margin as frozen cakes.

 

Comentarios desactivados en MARS’ STRATEGY / 02 Dic 2011 por Pedro Pernas Filloy
MIGMAmad /

Strategy: Mars ice-cream

Strategies adopted by Mars

Mars expanded the whole ice-cream market in Europe when it introduced a new bar made with top-quality ingredients; therefore the main idea of its strategy was to make difference between its product and those of its competitors by offering better products.

Mars ice-cream has been heavily supported through an investment in advertising and media spend as a part of their strategy, the brand wants the customers who usually buy ice-creams to know the reasons why they should buy Mars´s ice-cream instead of others, but also, let customers who already buy others Mars products realize that Mars is good making not only chocolates but ice-creams as well.

To support the customer´s perception of high quality the new ice-cream was more expensive than its competitors.

When Mars were denied access to main competitor’s freezer cabinets (Unilever and Nestlé) in many European markets and the distribution problems came up, it was forced to operate schemes either to make loans or sell freezers, even negotiating agreements with smaller companies, such as Lyons Maid or Miko until these companies were taken over.

Since Mars do not sell other kind of products also demanded by consumers, like dessert ice creams or packs for children, it is not attractive for a retail customer and it has had to accept them into its cabinets.

 

Will Mars ever make significant profits from its ice cream operations?

Business strategy is concerned with an organization´s basic direction for the future, taking competitive advantage; it is your link between the company and the environment. There are many things to consider in order to be successful.

From my point of view, Mars knew their goals but did not measure very well its resources and capabilities to achieve its objective, one example is the issue with the freezers, not understanding the necessities of the retail customers and affecting the consumer´s perception of high quality since its ice-creams were sharing freezers with others products that are not as good as Mars ones. As a result Mars did not satisfying the expectations of its target, the product fail when customers do not perceive it as better value than those are currently using, I think due to a poor competitive position.

Therefore, Mars did not analyze correctly the force of its competitors and the barriers to entry into the ice-cream markets despite the big effort and investment in advertising. Without proper planning, the result is failure, since the strategy has not been tested and product launched being inadequately implemented.

However, nowadays none of the reasons is surprising and most of the problems could be at least substantially reduced. The situation of Mars is difficult but they should try making more kind of products, having freezers just with their products, focusing on effective ways to reach the consumers…

Mars has to analyze properly the situation, adapting to it with a new strategy. Otherwise they will continue making no profit.

Comentarios desactivados en Strategy: Mars ice-cream / 02 Dic 2011 por Laura Navas Valle
MIGMAmad /

STRATEGY ASSIGNMENT AND BUSINESS CASE

As we have been analyzing in the first 3 sessions of the course, strategy is the pattern or plan that integrates an organization’s major goals, policies and action sequences into a cohesive whole. Business Strategy is concerned with an organization´s basic direction for the future: its purpose, its ambition, its resources and how it interacts with the world in which it operates. Business strategy is basically about competitive advantage, the plan that enables an organization to gain, as efficiently as possible, a sustainable edge over its competitors.

Obviously, the purpose of this course is to equip you students with the core concepts, frameworks and techniques of business strategy. The good strategist analyzes the industry environment and the internal generic conditions of its competitors in order to get conclusions about the concrete situation of his company and design all the possible ways to compete within its industry.

Since we have examined each of the different components of the business strategy and the basic tools of strategic analysis, now it is time you show me that you have understood the basic frameworks and techniques of business strategy.

The business case has been sent by mail.

Each one of you has to upload a post answering to the two case questions. If you have any doubt, don´t hesitate to contact me via e-mail.

I profit to send you a couple of very interesting and enlightening links. The first one is a debate between longtime Fortune magazine technology writer and guru David Kirkpatrick and Mark Zuckerberg, co-creator of the social networking site Facebook, of which he is Chief Executive and President:

Pinche aquí para ver el vídeo

The second one is a lecture by Dr. Patrick Dixon, a world famous and renowned author and business consultant, one of the most influential business thinkers around the world:

http://www.youtube.com/watch?v=_kZl15houUc

From Jon Icazuriaga, EOI´s teacher.

Comentarios desactivados en STRATEGY ASSIGNMENT AND BUSINESS CASE / 01 Dic 2011 por evacurto
MIGMAmad /

Strategy: Mars Ice Creams

Strategies adopted by Mars to launch its ice cream products:

First strategy: Measuring the loyalty of their customers

Mars chose to do the distribution to the same customers they did get for the rest of their products, so they delivered ice cream products in the same places.

Second strategy: Market differentiation

Mars decided to build a strategy of quality of their products. This way, they would be different from the similar ones in the market. This strategy was also followed by another one related to the price. These new products were more expensive than the similar ones from other brands, which could be understood by customers as better products.

Third strategy: Telling the world they are also good at making ice creams

Mars advertised their new products across Europe with powerful campaigns. These advertisements were telling the world that Mars was also good at this new kind of products.

Fourth strategy: Adjustment to distribution problems

In order to avoid the distribution handicaps of ice cream products, they tried to make a name in freezer distribution. However, the brand was blocked for its distribution by its competitors (Unilever and Nestlé).  After that, the brand had to choose between making loans or selling freezers, even negotiating with weaker companies. Finally, as Mars products are not the best sellers products by retailers, Mars had to accept sharing inside its cabinets with other kind of frozen products.

 

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

To my mind, it is very difficult that Mars will make a name as an ice cream producer.

To start with, there are many brands that made a success in this market before, what creates the positive idea of lifelong products.  Also, what Mars is offering to the market is something quite different in terms of quality and price. However, it is highly probable that customers only pay attention to the last one, so Mars will always be at a disadvantage compared with its competitors. In addition, the sharing of the shop’s cabinet could result in Mars products could pass unobserved.

Comentarios desactivados en Strategy: Mars Ice Creams / 01 Dic 2011 por Elvira Sáez Chamorro
MIGMAmad /

Managerial Skills

I had given quite a few of talks at university and during my degree. I was told about some tips and advices to give presentations successfully but I did not have a clear structure of what really matters. Managerial Skills has solved it, after a few hours of lessons I can tell I know a few ideas, the simplest ones and, at the same time, the important ones. For me the first on the list: being aware about your audience, I will always consider that since now! I have realized many times presenters do not care about who is going to listen to him or what they are interested in… so the talk does not make sense at all.

Nowadays, people tend to be selfish, worrying just about their own benefit and taking advantage of other people. Furthermore, there are many external factors that can involve problems such as misunderstandings, fear, different perceptions… that make the communication between human beings even hardest. The negotiation topic taught me that you can get even more profit if you are aware of not only what your wishes are but of what others desire, being positive, looking for a cooperative approach by maximizing the joint outcomes and creating value. Stop thinking only about ourselves!

Regarding the Leadership module, it has been my favorite one because many of the ideas have very directly application not only to my professional life but to my personal life as well. There are so many useful things it is hard to choose… I would like to point out some of them:

What makes the different between managers and leaders? Think about teachers, bosses, your parents…everybody who has been responsible of you in any aspect of your life… I am sure that most of them have just manage your time, giving orders… basically focusing on task but they did not realize that they should have focused on us, getting us involved, making our work much better and the key in motivation.

The video about Simon Sinek’s “The Golden circle” was particularly interesting , People don´t buy what you do, they buy why you do it. It is really worth seeing.

Pinche aquí para ver el vídeo

 

Finally I would like to highlight the Pickle jar theory…so much useful for me! Especially doing this master, no options! I need to improve time management…

Thanks, Chris!!

Comentarios desactivados en Managerial Skills / 29 Nov 2011 por Laura Navas Valle
MIGMAmad /

First Awareness, then Focus and at last Skills

Presentations, Negotiations, and Leadership were the topics presented in “Managerial Skills”. It is necessary the use of human skills for being successful in these areas. The method to reach the personal goal achieved in them follows the next rules. First of all, “Awareness”, is the main key word in every topic related with Managerial skills. It allows you to be conscious about what the key bullets are. The second key word is “focus”, allowing you to concentrate your efforts on the development of the most important points of each one of the bullets, and at last, You must put this into practice using human skills.

This kind of structure will be more useful if you could see your strengths and weaknesses. You must improve that qualities in which you are not so good, and you might support your success on your strong characters.

In addition, You have to be aware about the people You are in touch with. For example, if you are a presenter You should do your presentation thinking about who is going to be the audience, so as best meet both your and their objective. Also, in Leadership, you should know each one of the team members trying to get the more of them. In negotiations, You have to take into account what the other´s habits are, for keeping you manners depending on them.

You should remember that your success will depend on the way They act.

 

 

Comentarios desactivados en First Awareness, then Focus and at last Skills / 28 Nov 2011 por Pedro Pernas Filloy
MIGMAmad /

Presentacion de marketing

Tal y como puede leerse en Wikipedia, “El término marketing es un anglicismo que tiene diversas definiciones. Según Philip Kotler (considerado por algunos padre del marketing ) es «el proceso social y administrativo por el que los grupos e individuos satisfacen sus necesidades al crear e intercambiar bienes y servicios». También se le ha definido como el arte o ciencia de satisfacer las necesidades de los clientes y obtener ganancias al mismo tiempo. “

Esta palabra fue utilizada por primera vez en el mundo  en Estados Unidos de América en 1902 en la Universidad de Michigan por el profesor E.D. Jones donde impartió un curso titulado “The distributive and regulative industries of the United States”, en cuyo folleto descriptivo se utiliza por primera vez el término marketing  .

Si nos olvidamos de cuando se acuñó por primera vez este término ahora tan extendido y nos ceñimos a su descripción conceptual, nos daremos cuenta de que el marketing es tan antiguo como la civilización en sí y su necesidad de comercial con bienes y servicios para hacer nuestra vida mejor y más placentera así como la necesidad de gritar al mundo quienes somos y lo que representamos. Volviendo la mirada a la historia podríamos decir sin miedo que estas imágenes representan de algún modo el marketing:

Las civilizaciones y culturas en su empeño por demostrar al resto del mundo su grandiosidad y poder

Las primeras rutas comerciales, como el comercio de los Fenicios en el Mediterráneo o la antiquísima ruta de la seda entre Asia y Europa, así como la aparición de nuevos canales de comunicación acercando fabricantes a su potencial mercado

Los mercados y mercadillos, charlatanes, buhoneros y vendedores ambulantes para que productores lleguen al consumidor final

Apareciendo a finales del s XIX las grandes marcas que aún perduran afianzando lo que ahora conocemos por marketing

Incluso este mi.smo post es un acto de marketing, en mi intención de “vender” lo interesante de la materia a los alumnos y generar una gran expectación.

En este módulo, el principal objetivo será, además de definir el concepto genérico del marketing en su faceta estratégica y operacional centrándonos en el plan de marketing, prepararemos a los alumnos para la realidad en la empresa y cómo desarrollarse en ella.

Sin otro particular que compartir mi entusiasmo por impartir de nuevo este módulo.

Si queréis saber más sobre el nacimiento de la publicidad en USA de los años 50, nada mejor que la serie de ficción Mad Men

Maria Jesus Esteve

Profesora Fundamentos de Marketing

Comentarios desactivados en Presentacion de marketing / 28 Nov 2011 por Carmen Garcia
MIGMAmad /