Essay Preview: M&M
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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.
Industry analysis
Australian confectionary market
Research on M&M’s and the confectionary industry shows that:
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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.
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The M&M’s brand has diversified into other items such as ice-cream and cookies, globally
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M&M’s is a well established global branding of colour, fun and humour
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Medium price
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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
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Customised M&Ms are able to reinforce and strengthen M&M’s brand equity
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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:
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Can be split into two product groups:
Single product purchases with an engraved or printed name or message for example, birthday cakes, Easter egg or pens
Geared towards large volumes of an event where minimum purchases are over $200. For example Rock Candy or Suga for corporate promotional merchandise.
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Fragmented market, with a wide range of players from the confectionary, stationary, merchandise and other markets
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Few brands that are readily remembered and recognised by consumers. See Appendix 2.
Implications for customised M&M’s
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Customised M&M’s should aim to be part of the evoked set for gift or event markets, not just for customised products
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M&M’s entry into this segment represents an opportunity for segment growth
Customer research
Consumers Market
Key findings from the consumer market research included a positive pre-disposition to:
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Buying consumable products where the message can be customised to a specific event, occasion or as a source of humour
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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
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Occasions prompt consumers to consider and purchase customised M&M’s
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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
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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
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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:
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
Businesses are not currently customers for M&M’s
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.
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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.
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Psychographic segmentation: Using the VALS framework suggests that there are two types of potential consumers for customised M&M’s:
The �Experiencers’ due to their high level of entertainment spend and innovation
The �Achievers’ due to their drive to succeed and their willingness to pay a premium price for a cool and humorous product
Figure