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
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