Mars Inc. Company Strategies

Audrey A. Azcarraga (LS 127 - K)                                                  January 30, 2018

Mars Incorporated

Company Overview

Mars Inc., is a popular global company that manufactures and distributes a variety of products that can be categorized into 6 business segments: Chocolate, Drinks, Food, Petcare, Wrigley, and Symbioscience. Some of its notable product offerings include Pedigree, M&M’s, Snickers, and Skittles, to name a few. Established in 1920 as Mar-O-Bar Co., by Franklin Clarence Mars, the family-owned corporation has grown to become the 6th on Forbes’ list of the  largest privately-owned companies. In fact, Mars Chocolate currently operates in more than 20 countries and owns five billion-dollar brands: M&M’s, Snickers, Dove/Galaxy, Mars/Milky Way and Twix. In terms of their financial performance, the company earned approximately $18 billion dollars in net sales in 2016. This can be attributed to their diverse revenue streams across six different business divisions.

Strategies and Drivers

Part of their ongoing strategy is to take advantage of the popularity of several of their brands. This is accomplished through launching product-line extensions. For example, the company released M&M’s Pretzel Chocolate Candies, which is a variant of the original product, except with a salted pretzel flavor in the center. Mars uses product-line extensions to diversify their products in an attempt to keep up with global trends. This allows Mars Inc., products to remain relevant to the market despite changing times.

Mars has become renowned for their effective marketing (four P’s) strategy. However, most notable include their plans for “place” and “promotion”. Mars’ strong global presence worldwide can be attributed in part to their distribution strategy. The company partners up with leading stores in the countries they operate in. This allows an ease of entry into unknown markets and brand awareness. Furthermore, Mars also collaborates with leading artists such as Vanessa Williams and Billy West. This further increases recognition of the Mars brand worldwide or in specific targeted regions.

        Takeovers are another strategic method that allowed Mars to strengthen their foothold outside of the United States. One prime example of this is the chocolate giant’s takeover of Wrigley back in 2008. Given the fact that Wrigley was already established world-wide as a brand, this strategy allowed Mars to expand their product offerings to include the likes of Altoids, Spearmint and Juicy Fruit. In effect, the company became even more of a global powerhouse. Takeovers allow the companies to be more present in retail outlets  globally, have an access to more distributors and suppliers, and finally greatly improve their operations.