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M&M

Essay by   •  June 28, 2011  •  3,240 Words (13 Pages)  •  1,350 Views

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1.1. Market Research

The scope of market research performed included industry analysis of both the Australian confectionary market and the personalised products/gift market. The branding and performance of M&Ms and MyM&M’s worldwide was also considered.

Customer research consisted of three focus groups, several interviews and a survey, which focussed on both corporate and consumer segments of the market.

1.2. Industry analysis

Australian confectionary market

Research on M&M’s and the confectionary industry shows that:

• M&M’s is a well known and leading confectionary brand, ranked no. 1 in the consumer baglines segment, but with decreasing market share. See Appendix 1.

• The M&M’s brand has diversified into other items such as ice-cream and cookies, globally

• M&M’s is a well established global branding of colour, fun and humour

• Medium price

• M&M’s are not in the gift segment, where brands such as Koko Black, Lindt and Haighs are positioned

Implications for customised M&M’s

• Customised M&Ms are able to reinforce and strengthen M&M’s brand equity

• Opportunity to leverage the popularity of the M&M’s brand to enter a new segment of gifts and events

Customised products

The Australian customised gifts and event market:

• Can be split into two product groups:

o Single product purchases with an engraved or printed name or message for example, birthday cakes, Easter egg or pens

o Geared towards large volumes of an event where minimum purchases are over $200. For example Rock Candy or Suga for corporate promotional merchandise.

• Fragmented market, with a wide range of players from the confectionary, stationary, merchandise and other markets

• Few brands that are readily remembered and recognised by consumers. See Appendix 2.

Implications for customised M&M’s

• Customised M&M’s should aim to be part of the evoked set for gift or event markets, not just for customised products

• M&M’s entry into this segment represents an opportunity for segment growth

1.3. Customer research

Consumers Market

Key findings from the consumer market research included a positive pre-disposition to:

• Buying consumable products where the message can be customised to a specific event, occasion or as a source of humour

• Among existing M&M customers, to purchase customised M&M’s, provided price and distribution was right

In addition, the market research conducted provided insights into the product mix as can be seen in figure 1.1. See Appendices 4-6 for detailed research findings.

Figure 1.1

Implications for customised M&M’s

• Occasions prompt consumers to consider and purchase customised M&M’s

• M&M’s would be unable to move into the luxury market and would be best to remain in the existing market of providing a known, consistent taste

• Varied distribution points should be considered for this new product

Corporate Market

Focus group and survey data indicates that the corporate segment had somewhat polarised opinions with respect to customised M&M’s. Companies with an informal image displayed a somewhat positive predisposition towards customised M&M’s, whereas more prestigious organisations reflected negative product predisposition due to a preference towards higher quality corporate gifts.

For all companies, customised M&M’s were considered inferior to other personalised products because they are consumed immediately, unlike pens or mugs.

Implications for customised M&M’s

• In the first year, customised M&M’s should not focus on the corporate market segment as there are several large hurdles in marketing to businesses with this product:

o Customised M&M’s seems only suitable for companies with an informal image and culture, hence market size and access has yet to be determined

o Businesses are not currently customers for M&M’s

1.4. Segmentation

Customised M&M’s will be concentrating on the consumer market with segmentation done in several layers, with behavioural, psychographic and then this adapted to the Australian consumer market.

• Behavioural segmentation: Focusing on Occasions, customised M&M’s are to be targeted at gift and event occasions such as birthdays, Valentine’s Day and Easter. Potential customers will also be current purchasers of standard M&M’s.

• Psychographic segmentation: Using the VALS framework suggests that there are two types of potential consumers for customised M&M’s:

o The �Experiencers’ due to their high level of entertainment spend and innovation

o The �Achievers’ due to their drive to succeed and their willingness to pay a premium price for a cool and humorous product

Figure

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