UNIVERSITY OF WALES

KENSINGTON COLLEGE OF BUSINESS

STUDENT ID NO : 0811866890377

COLLEGE ID NO : 10468

MODULE NAME : MANAGING MARKETING ACTIVITIES

MODULE CODE : KCB 02

MODULE LEADER : Kenan Ibrahim Bakht

TITLE OF THE REPORT : Marketing plan for Mars U.K. Limited.

DATE OF DEADLINE : 12-12-2008

Table of Contents :

Abstract

Introduction

Company’s Ideology and Objectives

SWOT Analysis

Market Analysis

Current Market

Marketing Mix

Recommendations

Conclusions

References

To : CEO of Mars U.K. Limited.

From : Marketing Consultant

Date : 12/12/2008

Subject : Marketing Plan of a chocolate bar.

ABSTRACT

The purpose of this report, as a marketing consultant, is to analysis

the internet presence of the company ‘Mars Limited’. This is to

analyze and to evaluate some of the most leading brands of the

company. It examines the company shares by region and sector,

brands, current markets and distribution channels as well as

challenges from the competitions and new product development from

the analysis of the company which will drive the company into an

another success.

INTRODUCTION

What is marketing?

“The process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods, and services to create

exchanges that satisfy individual and organizational objectives”

- The American Marketing Association(AMA)

HISTORY

The mars limited is one of the most renowned food company in the

globe. It was incorporated in 1911 by Frank Mars in Washington,

USA. Mars ltd. is currently a world wide seller of confectionaries

including pet food and other food products with just more than 20

billion US dollars turnover in 2006. This is one of the largest privately

owned US corporations having owned completely by Mars family unit

with the main head quarters in McLean, Virginia, USA. This most

famous chocolate company has also got its own Europe division

named as Masterfoods Europe mainly stated in Brussels, Belgium.

The title ‘Masterfoods’ is at first given by Levis family in Australia in

the year of 1949 which later on taken over by Mars family in 1967. It

operates nearly 215 sites worldwide with 100 manufacturing facilities

across 65 countries in the world. In comparison of 2006, the company

has progressively increased its revenue by 5 billion US dollars in 2007

with 48000 employees working all over the world.

It is registered in England and Wales as Mars U.K. Limited. They

come into the market of United Kingdom in the year 1955 with the

establishment of one of the massive confectionary plant in Slough,

which also addresses as one of the largest open offices in Europe. The

foremost highly admired and famous chocolate bar was the “Milky

Way” in the year 1923. After this it had a non stopping growth with

various other inventions like Snickers, Mars, M&Ms, Malteasers and

so on. This family business has been famous for its secrecy nearly

since last 97 years without the leak of any private data and

information about the company or products. Other than its secrecy,

Mars has developed its own prestige across its leading market to be

outstanding training basis for managers as well as company workers.

Mars Limited aims to meet the everyday needs of various people

everywhere focusing today’s busy life and also be the leading

multinational company. They produce three key products which are

foodstuff, beverages product and pet care products. Among these

varieties of products, Mars Ltd. is concern on food products and pet

care products as jointly contributes 90 percent of the total sales per

year. Although Mars Ltd. is one of the leaders in the market, they

still working hard to produce more and more new products and also to

ensure the product’s quality is at a standard by the research and

development if not the title of the leader in the market will be no

longer.

Company’s Ideologies and Objectives :

Mars limited has five corporate ideologies which continuously

changed accordingly for the betterment of the company throughout

these years of its journey since it has been incorporated. These are

the key factors that helped to develop the company in realistic,

effective and exclusive way for their achievements and earning the

social status of Mars Limited.

Quality

They say that “The Consumer is our boss, quality is our work and value for money is our goal”.

Every single person in the Mars family believe that everything they produce must have superb quality right from the raw material to the finished products. The quality in the standard is unbending which resulted in the quality brands and fame of the company.

Responsibility

Mars limited wants to be entirely special from those companies where there is adulteration in undertaking personal responsibility. All associates are encouraged to take direct responsibility for results, to

exercise proposal and judgment and to make decisions as required. The company tries to do a team work which would certainly helps to develop human relations.

Mutuality

This company believes that the measuring standards of their business relationships should be upto the level of putting up mutual benefits. The company aim that every single person dealing with the company should be beneficial, it need not to be strictly financial it could be in terms of providing good quality products, dedicated customer relationships, wholesalers, retailers or it may be any of the stakeholders.

Efficiency The company’s strength lies in the efficiency of doing the work perfect at the first time itself to achieve the maximum productivity. It has the ability to put all the assets in order- physical, financial and human resources to produce the world’s best quality products at least possible cost. The factories work throughout the year worldwide in one name. Apart from this they have good communication facilities to eradicate the external hurdles.

Freedom

Freedom makes the company distinctive. Many companies do not have that but this company has complete freedom as it is a family owned company. The way of operating this business is unique, the way which others tried but could not succeeded in the long run; they had to raise fund from the public sources like issue of shares, raising loan and so on. The company believes that fortune can be achieved another way and the key thing is huge profit. The company is free to utilize their profit in their own way and it creates the difference.

SWOT ANALYSIS OF MARS LIMITED

Strengths

Mars Ltd. is the prevalent confectionary supplier in the world, with 14.4 percent market share after the acquisition of Wm.Wrigley Jr., a company of gum, mints, hard and chewy candies.

Towering monetary strength with a fairly accurate sales turnover of 27 billion US dollars.

Muscular manufacturing capability with thousands of staff and hundreds of manufacturing unit.

Established brand name and leader of the innovate taste and delighting customers.

The company has got a very active and large distribution channel for instance Royal Beech-Nut in South Africa, Tesco, Iceland, Asda and so on.

Advantage that it is totally paying attention on the food products and a distinctive understanding of consumer in this food segments.

Lucratively grown through its acquisition strategy. Latest merger of Wm. Wrigley Jr. in April, 2008 made the biggest seller of confectionary in the world.

Weaknesses

The company is keen on the confectionery and beverage market although it has other sectors pet foods, electronics to concentrate. On the other hand it competitors like Cadbury and Nestle has a diverse portfolio.

Its many other competitor have better international practice and broad market like in India and China but it has to do much more efforts to get the market in Asian countries.

It does not guarantee that its product is suitable for vegetarians so this cannot be its targeted population.

The distribution channels in the Asian countries are not up to mark as the other players have which in fact is a big market.

Threats

Changing customer tastes and preferences is the big may be one of the big problems for the company for example in 2007 the demand for the dark chocolates boomed and the sales of it increased.

The growing number of peanut allergies is a

troublemaker to the company especially to the brand Snickers.

Social changes like rising obesity and consumers craze with calorie counting, nutrition and healthier lifestyles is largely affecting all the foodstuff brands.

Globally there is a progressively more demanding cost environment, particularly for transport, energy and packaging.

The falling economy all over the world specially the highly operating market in United Kingdom

The increasing wages and salaries is also one of the emerging worry to all the companies including Mars Limited.

Opportunities

The powerful partnership (acquisition) always strengthens the firm and helps to widen its branches and Mars mostly has grabbed such opportunities.

There are new emerging markets in the highly populated countries like India and China, consumer wealth is growing and demand for confectionery products is also increasing.

Foodstuffs are categorized in Fast moving consumer goods market- to survive in this market is very difficult unless reducing costs or increasing efficiency. Costs could be cut off by moving production to low cost countries, where basic necessities for production such as raw materials and labour are much cheaper (Twix and Starbusrt production moved to Netherlands from UK).

Changes in the government politics is always a good opportunity it should be always noted which new policies are coming in and the company should act accordingly.

Innovation is always an important tool. To respond to changes in consumer tastes and preferences – quality and healthier product with low calories is required to be developed. There was a tax breaks for innovation which helped confectioner of Australia.

To identify changes in population and the age structure is very important in confectionary the kids are targeted more.

The company always should keep on finding the new distribution channels to be wide spreader in the market.

MARKET ANALYSIS:

Globalization is not a new experience; it has been seen prior to the

First World War. What is new is the way in which it manifests itself.

However, globalization is challenged by new regional agreements that

could role back the move to fair markets, just as happened in the 1920

and 1930s. The force to reduce trade barriers are such that this threat

is reduced, providing opportunities for the companies and for the

welfare of the citizens of fast-growing economies.

Mars Limited introduced converted rice right after the world war in

1952 to the laymen of United States. It was launched in the brand

name of ‘Uncle Ben’ and had a large sale, acquired the number one

position in the market of the country.

Uncle Ben’s in due course became one of the top most brands of rice

worldwide by acquiring the market of around more than 100

countries. It built up it manufacturing units internationally in

Australia, Belgium, Germany, Netherland and the United Kingdom.

Various other popular brands come across Country Inn rice, Dolmio

spaghetti sauces, pasta and oriental dishes named Suzi Wan which

has been sold for the most part in Europe and Australia.

In 1967, Forrest merged his business with his father’s Mars Company

and took over all the business of the new company. He completely change the company by giving a latest look to the offices as well as improving the communication between the staffs and other functional areas. The year later, Kal Kan Foods, which is one of the subsidiaries of Mars limited expanded by adding a second canned pet food plant in Columbus, Ohio, and a dry pet food plant in Mattoon, Illinois, while expanding into Midwestern and eastern markets. Waltham Centre for nutritional Studies regarding the pet in United Kingdom assisted Mars new pet product development. The regular publishing of these studies in the scientific and veterinary journals helped Waltham to turn out to be a world authority on pet care and nutrition.

Mars Electronics International started their first operations in

England in the 1969 and later on it expanded its wings to other

countries like United States. Its products are advanced bill

technology, cashless payment systems and laser scanning devices.

MEI soon became a largest manufacturer of electronic coin machines

in the world. MEI had its marketing and sales in most popular parts of

United States, Europe, Australia and the Far East.

Hershey Foods was the major competitors of Mars in U.S., they

fought a battle to acquire the position of a king of candy market

between the year 1970s and 1980s. Mars became the winner as it

increased its market shares then Hershey with a difference of

towering 14 percentage. According to a quote in Fortune by an

industry executive, ‘it took the Hershey people seven or eight years to

realize that Mars was not going to go away….Then it took them

another five years to get their act together.’ Hershey reacted with

strategy of more and advertising as well as innovating new products

and marketing efforts. Mars replied by forming a new image by

change the junk food as a sweet snack. Mars invested $ 5 million to

have Snickers and M & M’s named the ‘official snack foods of the

1984 Olympic games’. After that Mars has launched various brands

like Starburst, Skittles Twix, Bounty bars, Combos and many more all

over the world.

CURRENT MARKET :

Apart from the Hershey many more players come into the competition. The principle competitors are like Cadbury Schweppes, Nestle S.A., Ralston Purina Company.

Mars limited has grabbed many golden opportunities time to time. In the beginning of 1990’s, the volatility of former Soviet market scared many multinationals, which made small gamble or nothing at all. It was a very dangerous situation but in such situation Mars, with its network of small distributors sold its chocolate Mars and Snickers, advertised aggressively and able to create the largest foreign-owned factory at the time.The overall confectionery market of the United Kingdom plunged in this year comparing to the last two years. But the consumption of premium chocolates in many part of the world showed a drastic increase of 18% in the premium chocolate market comparing to last year. The consumer preference is changing to dark chocolates rapidly. It basically effected to the market of chocolate confectionery such as Mars and Snickers as well as sugar confectionery such as Mar’s starburst and chewing and bubble gum of Wrigley’s extra which is now one of the brand of Mars limited. Mars has launched its premium brand chocolate in the name of DOVE Chocolate. Among the top 15 brand in the market Mars has its six brands. Since last three years M&M’s brand has held the position of “number one chocolate brand” and Snickers as a “number one chocolate single”.

This confectionary market has attained regular growth from many years even after the different attacks of the health lobby. The belief is that the sale in 2007 was affected by the growing competition that too from other subdivision which offers cookies, cake and fruit. In 2003 due the health reasons the dark chocolate trend came into the market this brought several change in the marketing strategies of different confectionary company. Mars has also introduced a mid-sized range of bars and dark chocolates such as Bounty Dark and M&M’s Dark.

Advertising controversy:

Mar’s brands Snickers and Super Bowl XLI created an off-putting publicity when they released a video showing two men kissing unintentionally while biting the Snicker bar.

In mid 2007 there was lot of negative responses aroused especially from the vegetarian community when the company published that it would be using milk plasma with animal rennet.

African nation who is the major producer of Cocoa beans (ingredient of various chocolates) uses the child labour reported by Human Rights department in year 2000. Many other confectionery companies including Mars Limited imports the cocoa beans from Africa.

MARKETING MIX :

The “Marketing Mix” is a universal term used to describe the different kinds of options that organizations have to frame the entire process of bringing a product or services into the market. Initially it has 4 P’s then it was extended to eight P’s by Bruce in 1998.

Product

A product should be a fundraising suggestion, a campaign goal, and a powerful idea for change. All the products give the customer satisfaction. Mars limited are keen on the health factors. Its 99% of the products contains less than 0.5% trans fats and the rest of the product contains less than 1%.

Every business needs to innovate to stay ahead of competition. No business can offer the same unchanged product again and again, otherwise the excepted profit cannot be achieved. To meet the changes of the consumer Mars has introduced various product and brands. They spent a lot in retaining the quality of the product; they take extra care in packaging also.

Brands

Definition :A trade mark, goods of a particular make: a mark of identification made with a hot iron, the iron used for this: a piece of burning or charred wood, to mark with a hot iron or a trade mark. - The Oxford American Dictionary (1980)

Consumer loves brands. Mars limited has various Brands which are the key for the success of the company, the major brands are as

follows :

- Aquadrops - Amicelli- Bounty - Celebrations- Flaviaa- Flyte- Frutasia - Galaxy- Lockets- M&M’s- Maltesers- Mars- Milky Way- Revels- Seeds of change- Skittles- Snickers- Starburst- Topic- Tracker- Tunes- Twix- Winergy- Whiskas

While the pros and cons of global marketing and advertising continue

to be debated, this company and many other competitors are taking

an in-between approach by standardizing their products and basic

marketing strategy but localizing their advertising messages. Grey

Advertising describes it as “global vision with a local touch.”

Brand Slogans :

-“Recharge on Mars” in Canada.-“Work-Rest-Play” in U.K.-“Out of this World!” in Australia and U.K.-“Mars Legend” in Australia.-“Earth-what you’d eat if you lived on mars” in New Zealand and

Australia.-“Mars, pleasure you can’t measure” in Europe.-“Mars, momento di vero godimento” (Mars, a moment of pure enjoyment) in Italy.-“Mars, geeft je energie” (Gives you energy) in Netherlands.-“Nimm Mars, gib Gas”( Takes Mars, step on the gas) in Germany.-“Un Mars, et ca rapart” in France.-“Get Some Nuts” in U. K.

Price :

Pricing is one of the most noticeable element of the marketing mix

and has many publics to satisfy. The prices of the products are

different countries as the customers are price sensitive.

The price of each and every product of Mars limited is given by

keeping an eye on the competitor, society, and government of the

country where the product is sold. The company has noted that the

price of each and every product is more than the cost of production so

that reasonable profit can be acquired. For example such as price in

supermarket like Tesco, Asda of Snickers and Mars is 40 pence on

many other local shops it is 50 pence. Many of the products of mars

limited is kept below one pound. So the customer has to walk around

the market to have it in a better price.

Place :

The products of this company are sold internationally. Mars limited

provide the product in the exact place where the buyers are looking

for. The customers could find the Mars product even if they look in a

small store, in a special boutique as well as in the huge supermarkets.

These products are dominant everywhere. The customers can find this

product online in many sites like www.ebay.com,

www.changingmind.com and so on.

The company has got wide distribution channels around all the

product selling countries. In different countries they have different

sale forces. There are many competitors at the same place where the

company products are sold but Mars limited is giving fair competition

to all the competitors.

Promotions :

Most creative energy goes into the development of promotional activity. Mars limited spends a lot of amount in advertising their products globally. There are many medias through which Mars limited is advertising their products. Such a like Print media, internet media, Television, and so on. The Retailers and wholesaler have also turned as a big promoter for the products of Mars Limited.

Jeff Zucker, the chief of NBC Universal, a big television and film company, notified the audience of TV executives that their biggest challenge was to ensure “that we do not end up trading analogue dollars for digital pennies”. He meant that audiences are moving online quicker that the advertisers.

The Internet is a world wide means of exchanging information and communicating through a series of interconnected computers. Mars is utilizing this media in a full fledge manner by targeting the ultimate user of the product.

The company promotes their product through sponsoring many games every year. It had spent 5 million dollars in the Olympics in U.S. Mars is spending 8 million dollars in advertising every year.

RECOMMENDATIONS :

Recommendation is the most difficult part as far as to provide for a global branded company like Mars Limited. Mars has the ever leading brands. It has been evident the product of the Mars limited are sold itself by its brand name.

From the above analysis as a marketing consultant it has been found that the company lack in vegetarian products. Thus the company has to innovate the new vegetarian product. Here are the suggestions for the new product for Mars Limited taking marketing mix and SWOT analysis into consideration as above :

Idea Generation :

From the above analysis it is evident that the company is in need of a new vegetarian product as vegetarian customers had a negative response.

Type of Product:

A chocolate bar

Brand Name:

Mix fruit bar

Brand Slogan:

“Taste the nature”

Product strategy :

It has been taken into consideration this product is of Good quality;

the pricing of the product is Competitive. It is an organic product;

there is no added colour or no added flavours.

Targeted place :

Initially it should be introduced in U.K. and than to introduce it World wide.

Determination of product line:

This chocolate bar is introduce for all the chocolate loving people, but especially targeted of the vegetarian population.

Build brand equity :

This product will reinforce the value of business brand. The product will be sold itself it has been attached with the brand name of Mars Limited.

Marketing Techniques:

Consumer-oriented sales promotion and it is targeted to the ultimate

user of the product and includes couponing, sampling, premiums,

rebates, contests, sweepstakes, and various point-of-purchase

materials.

These promotional tools encourage consumer to make an immediate

purchase of this product and a huge sales could be earned. The tools

to be used are TV advertorials, teleshopping, print media,

Telemarketing, and last but not least is internet media,

Competitors :

It has been introduce mainly competition with Cadbury temptation, and other fruit products of various other companies such as Nestle and Hershey foods.

CONCLUSION :

The analysis of the company and its products shows it is dominating

the market. Internet is a powerful tool for marketing. The company is

developing the wings with innovation and this product will be the

relevant addition to it. The company was been struggling in regards of

the innovation of the some kind of vegetarian brands. After

monitoring marketing objectives, goals and targets the internet

marketing of the product of the company is assigned and executed.

This report considers both the short-term impact of a promotion and

long-term effect on the brand. This product that has been

recommended in the above report will create a change in the market

of chocolate industry.

REFERENCES :

Internet :-

http://www.masterfoodsconsumercare.co.uk/http://www.absoluteastronomy.com/topics/Mars,_Incorporatedhttp://www.fundinguniverse.com/company-histories/Mars-Incorporated-Company-History.html

http://www.marketresearch.com/product/print/default.asp?g=1&productid=2008724http://www.ft.com/cms/s/0/03bf8182-bf4a-11dd-ae63-0000779fd18c.html?nclick_check=1http://news.bbc.co.uk/1/hi/health/2487769.stm (peanut allergies)http://www.petercheales.co.za/lookout/chapter10.htmhttp://www.foodanddrinkeurope.com/Consumer-Trends/Health-boom-sets-sales-soaring-for-dark-chocolatehttp://aravinthanjayaprakash.wordpress.com/2008/10/24/poision-threat-for-chocolate/www.ausindustry.gov.auhttp://www.mindtools.com/pages/article/newSTR_94.htm ----marketing mix

Books :-

Advertising and promotion by George E. Belech & Michael A. Belch published by The McGrow-Hill Companies - pages 7,8,21,22,305,477,478,664,

Global marketing Strategies by Harold Chee and Rod Harris (1998) published by Financial Times Management. Page-22

Marketing for the Voluntary Sector edited by Paula Keaveney and Michael Kaufmann (2001)Kogan Page Limited. Page-133

Weekly :-

The economist dated 27 November- page 73,74