Recently Mars Inc. altered its marketing strategy with the change it made to eliminate artificial colors from its candies. Specifically, the change is slated to take up to a total of five years, however, as of February 2016, the company is moving toward making its food items healthier. The following paper discusses how this change will significantly alter the marketing strategy of Mars Inc.
Correa (2016) comments that the CEO of Mars Inc., Grant F. Reid recently announced that the company plans to "eliminate all artificial colors from [its] human food portfolio [in] as massive undertaking and one that will take time and hard work to accomplish" (p.1). This announcement undoubtedly shifts the scope of the company's prime products such as M&Ms, and Skittles because it has up until now utilized artificial flavors. It also means an evolution of the marketing strategy in that the company will be focusing on making healthier claims about its products. Correa (2016) goes on to state that consumers were the most significant reason for the change in moving toward the usage of more natural ingredients (p.1). Arguably, consumers are seeking healthier options – so Mars Inc. was correct in shifting the scope of its candies and confections in order to ensure that the brand loyalty it has established remains.
Dent (2015) writes that consumers are more and more seeking out healthier items across a host of food products. From breakfast cereals to candy to fast food items, companies are recognizing the relevance and importance of changing the ingredients they utilize in these items in order to ensure that they do not lose millions and billions of dollars because customers no longer want to consumer artificial flavors and colors (p.1). To this end, Mars Inc. sought to implement a change that will entail changes for its marketing strategy for more than 50 products.
The company acknowledges that it uses a comprehensive strategy that abides by strict guidelines in terms of accountability and responsibility as it pertains to its products (Mars Inc., 2016). In other words, everything that the company puts out within its product portfolio as well as the marketing plans and strategies adheres to a certain process that is governed by doing the right thing. Mars Inc., essentially seeks to provide consumers with the impression that everything it sells is appropriate. Given this, it seems appropriate that the company would shift its marketing strategy by offering healthier items as society progresses more into the 21st century.
Moghaddam & Foroughi (2012) find that companies shift their marketing strategy when they want to gain a competitive edge over their rivals within the industry. Since product innovation is one of the most important elements in marketing, and strategy construction, companies change what they perceive is not working or if the consumer marketplace is no longer taking part in purchasing what said company is producing (p.19-20). Thus, it can be said that Mars Inc. thoroughly and extensively observed that consumers are paying much more attention to how and what they eat and undoubtedly saw the writing on the wall with respect to its candies and confections.
Papulova & Papulova (2006) comment that marketing strategy changes are strategic and critical to continued viability and organizational success within a given industry, especially for companies that operate globally (p.1-2). As Mars Inc. operates globally, the company had to take into consideration the effects of the proposed change. It can be argued that while a lot of consumers as Dent (2015) mentions want healthier products, this does not mean everyone does. Basically, Mars Inc. in changing how it will market Skittles and the like going forward, it was willing to risk its longstanding reputation for consistency. The company’s R&D and marketing team had to assess and examine whether the shift in product creation would indeed cause a change in sales. Singh (2012) believes that companies like Mars Inc. consider the 4 P's when seeking to change anything. Each element within the 4 P's is important for both a development and implementation of change that a company will make (p.40-41). So how exactly did Mars Inc. determine how it would make this change? Simply put, through observation of consumer behavior.
Effects of the Change
Dent (2015) documents that a lot of changes have occurred because of an "evolution of the local and global influence of the U.S. food industry [and books like] Eric Schlosser's Fast Food Nation and Michael Pollan's Omnivore's Dilemma (p.1). While the implementation of this change is recent, based on this statement, Mars Inc. is likely to not only retain its current loyal customers, but gain individuals who are looking for healthier candies and confections. Moreover, the company’s marketing strategy shift is likely to be adopted by retail chains in a different way because the products can now be marketed as healthier and much more feasible for consumption as they no longer have flavors or colors that are falsely constructed.
This paper discussed the recent change instituted as of February 2016 by Mars Inc. to the ingredients it uses in candies, confections and other human consumption products. The paper explained how this has changed the marketing strategy of the company moving forward. The CEO of Mars Inc. believes that while the change of the product's ingredients will take up to 5 years, that their portfolio will still maintain its viability and reliability that it has established throughout the years. It can be stated then, that a measured approach to the marketing strategy is needed as well since the implementation is expected to take a total of 5 years. This means that Mars Inc. will be able to effectively utilize newer forms of marketing that emerge between now and the actual full implementation of the shifts to its products portfolio.
References
Correa, C. (2016, February 10). Mars Inc. Eliminates Artificial Colors from M&Ms, Skittles, and More. Eater, Retrieved from http://www.eater.com/2016/2/10/10959464/mars-candy-artificial-colors
Dent, M. (2015, July 1). Consumers are demanding healthier food. Here's why they won't actually get it. The Week, Retrieved from http://theweek.com/articles/563944/consumers-are-demanding-healthier-food-heres-why-wont-actually
Mars Inc. (2016). Retrieved from http://www.mars.com/global/about-mars/mars-pia/our-brands/communicating-responsibly/marketing-our-brands-responsibly.aspx
Moghaddam, F., & Foroughi, A. (2012, March). The Influence of Marketing Strategy Elements on Market Share of Firms. International Journal of Fundamental Psychology & Social Sciences, 2(1), 19-24. Retrieved from http://fundamentaljournals.org/ijfpss/downloads/12-Moghaddam%20150212.pdf
Papulova, E., & Papulova, Z. (2006). COMPETITIVE STRATEGY AND COMPETITIVE ADVANTAGES OF SMALL AND MIDSIZED MANUFACTURING ENTERPRISES IN SLOVAKIA. E-Leader, 1-8. Retrieved from http://www.g-casa.com/download/Papulova-CompetitiveStrategy.pdf
Singh, M. (2012). Marketing Mix of 4P’S for Competitive Advantage. IOSR Journal of Business and Management (IOSRJBM), 3(6), 40-45. Retrieved from www.iosrjournals.org
