Global Trade - Marketing Mix for Mars Inc and the Snickers Bar - Case Study Example

Global Trade: Mars Inc. and the Snickers Bar

Introduction

Over the years, Mars Inc. has been able to diversify its operations to become a global leader in a variety of foods. The company deals in the production of snacks, soft drinks, electronic automated payment service, pet care products, and meal foods. Mars Inc. dates back to 1911 (Gasparro, 2014, p. 1). Frank C. Mars started the company as a snack food business (Gasparro, 2014, p. 1). The Washington-based businessperson made a range of butter cream candies at home. Mars advanced his small candy business into a factory with an approximate of 125 employees (Gasparro, 2014, p. 1). The operations of his plant revolved around the principles of quality and service enabling it to expand further its operations. For instance, in 1920, Frank relocated the factory to Minneapolis and majored in the production of Milky Way bars and Snickers (Gasparro, 2014, p. 1). Despite being a privately owned company with an unorthodox corporate culture, Mars Inc has been able to uphold a competitive gain in the candy market.

Undoubtedly, Mars Inc. is an international company that has dominated the candy market for over 100 years (Mars, Incorporated, 2015, p.1). At the beginning of the millennial age, Mars Inc. operated in approximately 60 countries. In addition to more than 60 global branches, Mars sales its products to another 150 countries (Mars Incorporated, 2015, p. 1). Cocoa trees characterize the US providing Mars Inc. with an absolute advantage in the production of chocolate products. With readily available raw material, Mars Incorporated produces its products more efficiently. The fact that Mars Inc. has been in operation for over ten decades now provides it with a comparative advantage. With vast experience in the market patterns of candy and other products similar to soft drinks and pet food, Mars Inc is able to lower its opportunity costs. Additionally, the company enjoys immense customer loyalty as it maximizes on quality and value (Mars, Incorporated SWOT Analysis, 2014, p.1). Massive commitment provides the Company with a Comparative advantage as it enjoys profitability while minimizing on the opportunity costs.

Marketing Mix for Snickers

Marketing Mix theory

Marketing mix revolves around a set of tools applied by firms in the realization of their promotional objectives in the target population. It is a common thing for the society to associate theories with scientific analysis. However, the marketing mix does not contain any scientific derivations. A conceptual framework highlights the essential decisions by marketing managers (Trout, 1969, p.53). These managers strategically configure these decisions to suit customer demands. Furthermore, managers can use these marketing tools to develop both short term and long term tactical marketing programs (Trout, 1969, p.53).

The Evolution of the 4Ps

Undoubtedly, Borden (1964, p. 32) popularized the marketing mix idea. Borden, (1964 p12) outlined twelve elements inclusive of pricing, branding, display, servicing, channels of distribution, advertising, and promotion that made up the marketing mix theory. Additionally, physical handling, planning, personal selling, packaging, fact-finding, and analysis were part of the original concepts of the marketing mix theory (Ehmke, Fulton, and Lusk, 2005, p.34). Scholars suggested the division of Borden’s concepts into two parts based on offerings and tools methods (Borden, 1964, p.15). The first part elements represented offerings. These concepts were inclusive of price, product, packaging, service, and brand (Borden, 1964, p17). As earlier mentioned, the second part of elements represented tools and methods related to distribution channels, publicity, and sales promotions (Borden, 1964 p17). Similarly, advertising and personal selling form the second part of the theory. Correspondingly, other scholars suggested three standard elements that should make up the marketing mix theory. The recommended items included communication, services, and distribution mix (Borden, 1964 p15).

In 1964, McCarthy regrouped Borden’s marketing elements into four basic concepts (McCarthy, 1964, p. 23). These concepts commonly referred to as the 4P’s included Price, Promotion, Place, and Product (McCarthy, 1964, p. 23). McCarthy divided Borden’s original elements under the four P’s as stated above. For instance, he classified advertising, sales force, direct marketing, public relations, and sales under the concept of Promotion. For the element of Place, McCarthy grouped channels of distribution, locations, coverage, and transport under it (Ehmke, Fulton, and Lusk, 2005, p. 34). Likewise, the Product element consisted of the packaging, sizes, quality, variety, and brand name concepts. According to McCarthy, (1960, p.39), the last P represents the Price element. Just like the other items as discussed above, McCarthy classified several ideas under it. Discounts, allowances, list price, credit terms, and period payment fall under the Price category (McCarthy, 1964, p. 23). McCarthy provided these four elements as discussed above as a guide to the structure of the marketing field into the anticipated future.

Snickers demonstrate the principle aspects of the marketing mix theory through excellent strategies. Essentially, Snickers is a chocolate bar marketed globally as a snack bar(Ravitsharma, 2015, p.4). Snickers’ marketers maximize the product aspect of the theory by showcasing it as a snack that guarantees complete satisfaction to the consumer. Indisputably, Snickers is an affordable product globally. For instance, an average Snickers bar in India goes for around Rs.15 and Rs.30 (Ravitsharma, 2015, p.5). Likewise, the product is strategically placed globally. Consumers can access Snickers from a broad range of stores such as malls and even local supplies. Snickers possess one of the best promotional and marketing strategies across the globe. Its marketers are able to communicate the uniqueness of the product successfully to the consumers through a variety of commercials similar to videos (Ravitsharma, 2015, p.6). These visuals as stated above provide clear demonstrations to the users that grabbing a Snicker is the best way of satisfying hunger.

Further Evolution of the Ps

As from the early 1980’s and the following years, researchers continued proposing new ideas towards the development of McCarthy’s P’s (Lawrence et al., 1998, p. 55). According to Lawrence et al., (1998, p. 55) scholars proposed the incorporation of several other aspects to McCarthy’s Ps. For instance, one researcher suggested a fifth P to the 4Ps. The fifth item referred to as People was to represent the community of operation. Similarly, other researchers suggested the addition of three other P’s into McCarthy’s concepts (Booms and Bitner, 1981 p49). These three concepts were to designate the participants, process, and physical evidence of the marketing process (Lawrence et al., 1998, p. 23). Some other scholars suggested the integration of public opinion and political power into McCarthy’s ideologies (Booms and Bitner, 1981, p. 49). All these propositions resulted from serious doubts concerning the role of the Marketing mix theory in management. According to critics, the marketing mix concepts revolves around a production-oriented aspect of marketing ignoring and pays less attention to customer demands (Lawrence et al., 1998, p23). Critiques argue that the 4P concept should focus more on the consumer’s perspective (Borden, 1964, p5).

In addition to summarizing Borden’s original marketing elements, McCarthy addressed several other forces likely to affect consumer-purchasing patterns. For instance, McCarthy provides a model that outlines both controllable and uncontrollable external market forces (Lawrence et al., 1998 p23). Contrary to the consistent criticisms, McCarthy centers most his 4P elements on the consumer. He provides a comprehensive analysis of the impact of consumer buying behavior on the institutional marketing strategies (Lawrence et al., 1998, p. 37). Besides consumer patterns, McCarthy analyzes the effect of governmental activities on product availability and commercialization. Legislative and political activities similar to taxation, trade tariffs, and security are critical to the successful running of businesses (Booms and Bitner, 1981, p. 49). Additionally, McCarthy discusses the significance of substantial resources and objectives in the efficient running of its operations. Most importantly, McCarthy outlines the economic environment as the principle aspect that shapes consumer purchasing patterns and product availability (McCarthy, 1964, p. 23). Despite providing an all-inclusive marketing model, critics still argue that McCarthy’s ideas are operational and not strategic in nature (McCarthy, 1964 p23). Numerous authors continued to propose further changes to McCarthy’s 4Ps.

Snickers achieve community acceptability through in several ways. Through the help of Mars Inc. Snickers create several versions of chocolate bars. For instance, Snickers also comes in an eggless version able to satisfy the demands of the vegetarian consumers (Ravitsharma, 2015, p.5). The vegetarian version has enabled Snickers to gain acceptance in highly religious and vegetarian communities.

Evolution beyond the Ps

According to Lauterborn (1990, p. 26), the 4Ps of marketing failed to address the real issues in the business environment. He asserted that McCarthy’s ideas were becoming distinct in the advertising age because they did not focus on the consumer. He analyzed McCarthy’s classic 4P’s and came up with the 4C’s of marketing. According to Lauterborn (1990, p. 61), businesses must optimize on cost, communication, consumer, and convenience as the principle elements of marketing. These aspects as mentioned above were to help firms strategically realize their marketing goals and objectives. Lauterborn (1990, p. 61) classifies consumers as the primary aspect of marketing. Back then, consumers used to purchase products to satisfy their demands as they lacked substitutes (Borden, 1964, p. 5). However, with the unfolding changes in technology saturate the market with excellent products. Consumers contain a variety of goods to choose from, and businesses can no longer develop and push products on the customers with the hope of converting their purchasing needs (Crainer, 2014, p. 35). Firms need to study consumer patterns to establish the actual requirements of the society (Lauterborn, 1990, p. 41).

In addition to consumer needs, pricing or cost of products is another crucial element of Lauterborn’s marketing mix model. Based on Lauterborn (1990, p. 61), companies must consider both product value and the consumer before the pricing of particular products. The customer and product value are essential to price determination to ensure both the company and clients benefits from the costs (Turnbull, and Valla, 2013, p. 32). Companies should provide optimum consideration to consumer tradeoffs to achieve both perceived total value and profitability from their products (Crainer, 2014, p.35). The third marketing element based on Lauterborn’s model is convenience. According to Lauterborn (1990, p. 61), clients should access products at their convenience. Therefore, firms need to be highly flexible in terms of utility to locate and attract more customers (Turnbull, and Valla, 2013, p. 32). For instance, offers related to product delivery and holidays result from the Lauterborn’s elements of marketing. Finally, Lauterborn’s last C represents the communication feature of marketing. According to Lauterborn (1990, p. 26), the original promotional aspect is not only manipulative but also a one-way communication system that ignores consumer interests. He suggested a dialogue system of communication between firms and consumers (Lauterborn, 1990, p. 61).

Apparently, high competition characterizes the chocolate market. Snickers had to devise strategic plans to stay at a competitive advantage over its competitors such as Cadbury Dairy Milk. The vegetarian version enables it to stand out among competitor brands (Ravitsharma, 201, p.5). Snickers tapped several markets through the vegetarian version. For example, through its new and unique version, Snickers penetrated the Indian market. Other companies deal with the production of plain milk and wafer chocolate not widely accepted in the Indian culture. As earlier identified, Snickers maintains customer loyalty through affordable prices based on the economic standards of operational countries. In the case of Convenience, consumers can readily access Snickers from different stores (Ravitsharma, 2015, p.6). Snickers target wealthy consumers through high-end locations such as shopping malls. Likewise, economically disadvantaged consumers can easily obtain Snickers from local stores across the streets. Finally, Snickers has been able to maintain successful active communication to the users. Through commercials and visuals, Snickers display the different types of chocolates.

Segmentation

The term segmentation revolves around the categorization of a broad market based on their commonly shared attributes (Helpman, 2011 p23). Segmentation also involves the designing and implementation of strategies aimed at targeting the identified market (Reuvid & Sherlock, 2011 p.37). There two distinct forms of segmentation related to the consumers, products, and services (Helpman, 2011, p. 23). Interestingly, most firms pay more attention to customer segmentation as compared to products/services (Helpman, 2011, p. 23). Customer segmentation involves the classification of clients into categories based on similar attributes. Correspondingly, product/service segmentation includes the categorization of outputs according to consumer observed aspirations (Reuvid & Sherlock, 2011, p.37). Experiential aspirations revolve around desires and feelings of love, pleasure, and social acceptance (Branch, 2006 p15). It is a common thing for brands to create commodities for the satisfaction of particular needs. Therefore, firms will aim advertisements at the people that suit the particular use (Branch, 2006, p15).

Snickers are fast foods, and anyone can enjoy the chocolate bar (Mars, Incorporated 2016 p3). Furthermore, snickers identify its consumers as people of all sexes and ages. Notably, most of its advertisements revolve around young people (Harris, 2015, p.24). Specifically, they seem to be targeting the male population through the depiction of youthful masculinity throughout most of its commercials (Crainer, 2014, p. 35). Their ads seem to focus more young masculinity rather than informing consumers of the qualities of their products (Schultz, 2012, p.1). The commercials fail to encourage consumers to think of their products as fundamental to creating a fashionable and classy lifestyle (Crainer, 2014, p. 35). However, Snickers have tried to connect with previous generations in their recent commercials (Mars, Incorporated 2016 p3). With classical celebrities such as Urmila, Betty White, and Rekha, they hope to convince older generations towards embracing snickers bar (Mars, Incorporated, 2014, p.15).

Targeting

As identified earlier, Snickers targets the young global audience through its commercials. For instance, in their most recent campaign, Snicker’s marketers want to reach the young population through the blogging community (Mars, Incorporated, 2014, p.15). Unmistakably, social media has become a social phenomenon that most people especially youngsters optimize not only for fun but also generating income (Smith, 2015, p.1). Youngsters today own personal blogs where they post direct messages and videos (Harris, 2015, p. 24). Being a strong influence on the young population, Snickers marketers trust that blogging will help them actively reach their target population. They believe that the use of compelling video messages to connect with hungry young consumers is more efficient than high-televised content (Smith, 2015, p1). According to snicker’s marketers, the use of video is more compelling based on its shareable, influential, and visual attributes (Mars, Incorporated, 2014, p.15).

Currently, Snicker's solicited several popular bloggers that share their content on YouTube (Smith, 2015, p1). These bloggers display what happens and what they usually do when hungry (Smith, 2015, p1). Snickers released and highlighted their recent content from a global perspective. Countries such as UK, Egypt, UAE, Lebanon, Brazil, US, and Puerto Rico can all access Snicker’s commercials on YouTube (Smith, 2015, p1). Snicker’s marketers believe that the current business environment requires innovative ideas that can meet the real needs of the audience (Smith, 2015, p1). According to these marketers, consumer patterns continue evolving, and it is high time for businesses to optimize audience turfs and likes with their favorite platforms (Schultz, 2012, p.1). Through blogging, Snicker’s believe that they will foster consumer conversations and reactions essential to meeting their actual needs (Smith, 2015 p1).

Channels of Distribution

Previously, Snickers employed a selective channel of distribution (Schultz, 2012 p1). Back then, one could only access snickers at the high-end departmental stores and airports. Snicker’s marketers aimed at targeting high-end consumers by locating their stores at high-end places. Nonetheless, Snickers realized selective distribution failed to guarantee them increased profitability (Jacques, 2013, p.10). Snickers embraced intensive distribution and ended up being one of the products with an excellent distribution channel. In the modern society, one can find snickers in any store at the local levels. For instance, consumers can access snickers at grocery and departmental stores, vending machines, and gas stations around the globe (Jacques, 2013, p10). Notably, Snickers seem to be one of the most successful all time candy product. By embracing an intensive distribution channel, Snickers allow for ease access of goods to their customers (ICC, 2010, p.2). Furthermore, with increased accessibility and affordability, Snickers can reach consumers across all social classes (ICC, 2010, p2). Just like other candy products, snickers combine a 2-level and intensive marketing channel (Jacques, 2013, p10). The current 2-level marketing channel by Snickers is as represented below:

Manufacturer wholesaler retailer consumer

Transport Options

Snickers use various means of transport in the distribution of their products from their factories to its million global stores. Some common modes used for the transportation of Snickers include air, water, and road transport. Over the years, Snickers always relies on the utilization of the patterns as mentioned above to reach its global consumers. These transportation forms raise several issues regarding the air quality. For instance, they contribute to global warming by releasing greenhouse emissions that adversely affect the local air quality. The rising environmental concerns led to the devising of an environmental program by Mars Inc. The Company aims at reducing transport-related emissions by the year 2040 by minimizing on third-party providers and maximizing on direct operations (Reuters, 2016, p1). Mars Inc. will focus on cost-saving initiatives during the transportation of snickers. These actions are essential to the delivery of the Company’s sustainability targets and objectives. Additionally, the Company ensures improved network planning to help increase efficiency in the transportation of products while minimizing the production costs. Currently, each planning department contains a business unit that develops both short-term and long-term plans aimed at ensuring environmental through safe modes of transport.

Suggestions for the Adjustments of Marketing Mix for Different Countries

As earlier mentioned, Mars Inc operates in an approximate of 60 countries. Similarly, the company delivers its products to more than 150 global countries. Undoubtedly, Snickers have a strong marketing strategy that allows it to penetrate the ever-competitive market. Additionally, its intense marketing strategy allows for the continuous product development that meets the ever-changing consumer needs. Snickers maximize on the 4Ps of marketing to and continue to grow through the exploitation of competitor weaknesses. For instance, all snicker bars contain the letter “M” on the side of each product to that differentiates it from its competitors (Schultz, 2012, p1). Such strategies have resulted in Snickers gaining customer loyalty across countries.

Apparently, snickers enjoy massive customer loyalty in the US. Regardless of having a strong national appeal in the US, snickers need to incorporate different strategies to penetrate efficiently international markets (Schultz, 2012, p1). Principally, Snickers should stay true to the fact that the various countries possess unique market forces. Therefore, marketing mix strategies should revolve around the market forces of individual countries. They can collaborate with small candy manufacturers in the various countries to target both low and high-end clients (Schultz, 2012, p. 1). For instance, Snickers can use sporting events to penetrate the Vietnam market. Vietnamese love sporting activities. Therefore, the incorporation of these developments will enable it to gain popularity and enjoy a considerable market share in the region (Schultz, 2012, p1).

Suggestions for the Adjustment of Strategies for Different Countries

Mars Inc. has a comprehensive global marketing strategy for each of its products (Schultz, 2012, p1). In the case of snickers, the Company has been able to stand out in the global market as one a healthy option for substituting hunger. Snickers also manage to stay on the cutting edge of the advertisement industry with creative commercial. For example in the year 2015, snickers combined aspects of celebrity and nostalgia in the commercials to make create a sense of humor in the audience (Smith, 2015 p1). The 30-second commercial commonly referred to as the Super Bowl aims at creating a lasting impression in the public (Smith, 2015 p1). Snickers advertisements are usually short, sweet, and satisfying enabling it to create an incredibly lasting impression among its target population (Reuters, 2016 p1).

Despite having an excellent marketing strategy, some societal sections accuse snickers of several issues. For instance, critics claim that snicker’s focuses more on heterosexual males in its commercials raising cultural and moral concerns in the community (Smith, 2015 p1). Apparently, Snickers aim at targeting all societal segments in their advertisements (Smith, 2015 p1). Therefore, snicker marketers should optimize the production of commercials that can create a lasting impression on its audience regardless of their age and sex (Reuters, 2016 p1). For instance, Snickers can incorporate celebrities across all ages and sexes to address the individual needs of their target audience (Czinkota and Ronkainen, 2012 p45). Most importantly, snickers must observe the culture of the different countries stay true to their marketing forces (Czinkota and Ronkainen, 2012, p. 45).

Conclusion

In summary, Mars Inc. is a multinational company that produces a variety of meals and drinks. One of their primary products, Snickers has been able to penetrate and stay relevant in the global market. Snickers possess a tactical strategy that revolves around the four Ps of marketing. Snickers target all societal segments in most of their commercials. In the recent past, Snickers launched a creative policy that involves the use of blogging in targeting the youthful audience. However, snickers need to focus more on individual country marketing forces to meet specific customer needs