Marketing Concepts of M&M Candy Pieces

1. Describe the most likely marketing channel structure for each of these consumer products: candy bars, Tupperware products, nonfiction books, new automobiles, farmers' market produce, stereo equipment, and rolls of steel. Then construct alternative channels for these same products.

The purpose of this report is to report the findings from statistical analysis on the claims M&M has made concerning proportions, the number of each color of M&M candies in each 1.69 oz. bag of candies and a claim for quality control.

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.

Candy is not yet a “mature” industry in the United States. The compound annual growth rate for candy in the past ten years has been close to 6% a year, a very solid gain in an industry that is supposedly mature. In fact, within the chocolate confectionery subcategory, the United States ranks 11th in the world in per capita consumption and fifth in the world in growth since 1980. Based on current demographics, many analysts believe that there will be further growth for confectioneries. A “baby-boomlet” is on the way, significantly increasing the teenage population. By the time the population bulge peaks in the year 2010, it will top the baby boom in the 1960s in both size and duration. According to government statistics, the percentage of children between the age of 5 and 14 will rise during the 1990s, increasing from 14.2 percent of the population in the 1990 to 14.5 percent in the year 2000. This trend will serve as a strong foundation for increasing consumption of confectionery products through the end of the century. Nevertheless, spending for food and drink as a percentage of all personal consumption is declining in the United States, and most manufacturers recognize that future opportunities lie in using profits from domestic

The company sells its products through two separate channels of distribution. Each is treated as a

According to Exhibit 5, from 1985-1989, Orange crushes’ market share decreased from 22% (1985) to 8% (1989), this data shows that prior to the entrance of Coca Cola’s Slice and Pepsi’s Minute Maid, Orange Crush had more of the market share which at the time, they were positioned toward groups between the ages of 13-40. Since 1985, Crush repositioned itself to target individuals between the ages of 12-17.

Distribution for the brand is already exceptional; it is rare to see a vending machine or candy display without at least one variety of Skittles. The current method of distributing the product is a mixture of pull and push strategies. Retailers of candy demand Skittles because they know that consumers will purchase them often enough to move product and produce profit, while Wrigley actively offers the product to said retailers, using their already-present pull force to facilitate even wider distribution. The above analysis leads to the belief that changing the basic distribution strategy is unwise, yet

M&M’s biggest competitor is Hershey’s brand like M&M candies. The competition is fierce among the chocolate industry. Hershey and Mars are rivals and want the opportunity to gain more of the market share. In 1954, Hershey-ettes were introduced to compete against the similar M&M’s. However, they were not successful and are generally only available for consumers around the Holiday season. By the millennium, Hershey extended the popular Hershey Kisses brand in creating the Kissables. Hershey intended for direct competition to M&M small candy coated round tablet of chocolate in multitude of colors. The candy factories started in standard size packs and by the 70’s moved into standard size candy boxes. In the current year and season, you will find M&M’s in candy canes to small snack sizes and inside ornamental objects. The chocolate world becomes difficult to present as it becomes difficult to come up with new ideas in the candy business. As more companies release products similar to the M&M’s, it will become increasingly difficult for Mars to continue to command the level of market share in the chocolate candy industry and the product has a potential to get lost in the supermarket aisle.

✓ Develop distribution channels by doing alliances with distributors and dealers where the company is not well present and with high potential.

Distribution channels interfaces the association 's item or administration to its purchasers; and in a maker buyer (administer supply) channel, as on account of Starbucks, keeping up a faculty association with the clients is critical (Brassington & Pettitt, 2000). However, from a dissemination perspective Starbucks got preference by adhering on to its winning store area recipe for its new stores.

Essay title: You work for Cadbury Schweppes in the confectionary division; you have been asked to look at the launch of their confectionary products in Poland. You have been requested to provide a 2000 word draft entry review, which outlines how you would go about taking an entrance strategy for approval. Identify the key areas you would like to research and investigate and justify them using marketing theory and practice, with appropriate references.

The target market for the healthy vending machine company is schools and colleges. The target market is a consumer market where the company will be aiming at

The company sells its products through two separate channels of distribution. Each is treated as a

Distribution of the products or services is a vital thing of the sales of the organization. What is the customer want about distribution; how they want get their product or services by research all these things will help to get customers.