COMPANY AND MARKET SITUATION ANALYSIS

REPORT OF MARS

Module Title: Principles of Marketing Management

COURSE: Master of Business Administration
Module Code: MOD007662
Student ID: 2356609
Year of Study: 2024-2025
Date of submission: 13th December 2024
 EXECUTIVE SUMMARY

This report examines Mars, a leading global chocolate manufacturer, as it

navigates challenges in the competitive UK market. “To address shifting
consumer preferences and heightened competition, Mars can launch a
sustainable chocolate product aimed at health-conscious consumers and
young professionals.” (Deloitte, 2023) Leveraging its strong brand,
extensive distribution network, and innovative marketing strategies, such
as digital advertising and collaborations with health-focused brands, Mars
is well-positioned to sustain its market leadership.

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 TABLE OF CONTENTS

1. Introduction .............................................................................................................4
2. Internal Environment Analysis ................................................................................4
2.1Company Overview................................................................................................4
2.2 Key Challenges ......................................................................................................5
2.3PurposeStatements ...............................................................................................6
2.4InternalEnvironmentalAnalysis ..............................................................................6
3. External Environment Analysis ............................................................................17
3.1 PESTLEAnalysis..................................................................................................17
3.2 Key Drivers of
Change .........................................................................................19
3.3 Micro Environment Analysis ............................................................................21
3.3 Competitor Analysis......................................................................................21
3.4 Customer Segmentation Analysis ..........................................................24
3.5 Recommendation ........................................................................ 26
3.5 SWOT Analysis for Mars .............................................................. 26
3.7 New Product Idea ........................................................... 31
3.8 Marketing Strategy.................................... 33
3.9 Coclusion............................................................................. 35
5. References ................................................................................ 36

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 INTRODUCTION

The chocolate industry is a significant part of the global confectionery

market, with the UK being one of its most competitive sectors. “This
report focuses on Mars, a prominent player known for its popular
chocolate brands like Snickers, M&M’s, and Twix (Mars Inc., 2023).
Despite its strong market presence, Mars faces ongoing challenges due to
evolving consumer preferences and intense competition. This report
delves into the chocolate confectionery submarket, noted for its diverse
product range and continuous innovation (Mintel, 2023). It includes an
internal analysis of Mars’ current situation, examining its goals and
challenges, and an external evaluation using models like PESTLE and
Porter’s Five Forces to understand Mars's broader market forces (Johnson
et al., 2023).” Finally, recommendations are provided based on these
insights.

2. Internal Environment Analysis

2.1. Company Overview

"Mars, Inc. is one of the largest privately-owned companies in the world,

celebrated for its prominent role in the confectionery sector." (Forbes,
2024) With chocolate brands such as Snickers, M&M’s, and Twix, Mars
has ventured into several sub-markets, including ice cream. "The
company’s offerings in this segment feature popular items like Mars Ice
Cream bars, Snickers Ice Cream, and Twix Ice Cream" (Mars, 2023),
which blend the brand’s iconic chocolate bars with frozen treats.

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Current Situation:

In recent years, Mars Ice Cream has successfully established a niche in the
global ice cream market by leveraging the strong brand equity of its
chocolate products. However, the company faces several key challenges.
Increased competition from other large multinationals such as Nestlé,
Mondelez, and Hershey in the chocolate ice-cream space and the growing
demand for healthier and more sustainable products present challenges
and opportunities. Additionally, rising concerns about climate change and
its impact on supply chains, especially for cocoa, are prompting Mars to
rethink its long-term sustainability strategies.

2.2. Key Challenges:

 Health-conscious consumers: As more consumers demand healthier,

low-sugar, and plant-based options, Mars Ice Cream faces the
challenge of adapting to these preferences while maintaining its
indulgent appeal. (Innova Market Insights, 2023)

 Sustainability pressures: Increasing scrutiny around cocoa sourcing,

packaging waste, and environmental impact presents ongoing
challenges for Mars Ice Cream as it navigates the need for more eco-
friendly practices.
(Grand View Research, 2023)

 Competition: The ice cream industry is fiercely competitive, with

major players such as Mondelez, Nestlé, and Hershey continually
innovating and expanding their product lines. (Innova Market
Insights, 2023)

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2.3. Purpose Statements

"Mars, Inc.'s mission is to 'create a better world for people, pets, and the
planet.' Its principles include quality, responsibility, mutuality, efficiency,
and freedom. The company emphasises sustainability, particularly through
its cocoa sourcing plan, which aims for 100% sustainable chocolate by
2025 (Mars Inc., 2023)”

Strategic Objectives for Mars Ice Cream:

"Mars Ice Cream's strategic goals include increasing market share in the
expanding premium and plant-based ice cream segments, improving
sustainability through raw material sourcing and more eco-friendly
packaging, and responding to shifting consumer preferences by providing
healthier options, such as dairy-free and reduced-sugar products."

2.4. Internal Environment Analysis Using McKinsey’s 7S

Framework

“The McKinsey 7S Framework is a strategic tool used to analyse the

internal alignment of an organisation’s key elements: Strategy, Structure,
Systems, Shared Values, Style, Staff, and Skills. This framework provides
a comprehensive understanding of how Mars Ice Cream operates as a
division of Mars, Inc., ensuring that its organisational components work
harmoniously to achieve strategic goals. For Mars Ice Cream, leveraging
the strengths of its parent company while addressing the unique demands
of the ice cream sub-market is critical (Mars Inc., 2023)."

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1. Strategy

"Mars Ice Cream’s strategy is leveraging its parent company’s globally

recognised chocolate brands to penetrate the premium ice cream market.
This approach combines indulgence with familiarity, appealing to loyal
fans of its chocolate products while attracting new consumers seeking
innovative flavours.

While effective, this strategy faces challenges due to the growing demand
for healthier options, such as low-calorie, sugar-free, and plant-based
alternatives (Mintel, 2023).” Although Mars has introduced product
innovations to address these trends, there is a risk of alienating traditional
consumers who prefer indulgent, classic offerings. To ensure sustained
success, Mars must adopt a balanced approach—broadening its range
without compromising its brand identity."

2. Structure

Mars Ice Cream operates under a hybrid structure that blends centralised
strategic oversight from Mars, Inc., with decentralised regional operations.
This dual system enables Mars to maintain brand consistency globally
while adapting to local market preferences, such as specific flavour trends
or packaging requirements (Kotter, 2012).

While this structure enhances flexibility, it also creates challenges.

Decentralised units require robust communication channels to align with
the company’s strategic goals. Regional customisation efforts may
sometimes conflict with cost efficiency, especially when tailoring
products for smaller markets. However, Mars cannot stop there; it must
keep investing in technology and processes to ensure less friction between

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its centralised and decentralised units. Mars needs to keep developing
technology and processes that allow for more seamless coordination
between its centralised unit and its decentralised partners. Mars needs to
make greater technological and procedural investments to facilitate the
coordination of its dispersed and centralized operations.

3. Systems

Mars uses state-of-the-art technologies to manage production, distribution,

and supply chain operations. Purchasing the dairy, chocolate, and
packaging materials required for Mars Ice Cream is essential (Mintel,
2023). Data-driven supply chain management facilitates cold-chain
logistics, reduces waste, and improves forecasting accuracy. These
measures improve operating efficiency and encourage sustainability by
using recyclable packaging and lowering energy consumption.
Nonetheless, Mars is vulnerable to geopolitical conflicts and climatic
change because it relies on foreign resources. Localized supply chains
could assist lessen these risks while also increasing responsiveness to
local market demands.

4. Shared Values

Mars uses innovative technology to manage its production, distribution,

and supply chain functions. The capacity of Mars Ice Cream to obtain the
required dairy, chocolate, and packaging components is critical to its
success. One company uses analytics in its supply chain to correctly
estimate consumer demand, decrease waste, and assure effective cold-
chain logistics for ice cream delivery. A thorough investigation indicates
that these solutions promote enhanced performance and long-term market

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viability. Mars, for example, uses sustainable practice innovations,
including energy-saving practices in its factories and recyclable
packaging. However, the company’s reliance on overseas suppliers makes
it vulnerable to disruptions from geopolitical challenges or climate
change. Localised supply networks can mitigate those risks and also better
respond to the needs of local markets (World Economic Forum, 2023)."

5. Style

Mars’s focus on inclusive leadership and collaboration helps to foster a

culture of creativity and innovation. Leadership inspires teams, including
Mars Ice Cream, to experiment with new combinations of flavourings,
create healthier alternatives and explore creative marketing initiatives.
However, as Mars Ice Cream extends product lines that emphasise health
and sustainability, the management style must enable a greater focus on
agility. Sustainability is not the only buzzword now, so the ability of
cross-functional teams in product development, marketing, and
sustainability to work together effectively will be crucial to helping the
company adapt to new consumer trends in real-time without losing its
identity. With such a systematic approach to innovation, coupled with
specific task forces or innovation hubs, it could have an even more
enduring competitive edge. (McKinsey & Company,2023)

6. Staff

Mars Ice Cream relies on a skilled and diverse workforce with expertise in
product development, marketing, logistics, and sustainability. Its
employees are trained to uphold Mars’s rigorous tenets of quality and
innovation while keeping things running. Data is trained until October

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2023, and hence, Mars should consistently invest in employee
development programs, offering sanguine progression opportunities with
inclusion and recognition built into the corporate culture. Hiring
specialists in these fields will be critical to bringing its workforce in line
with its strategic goals as the company refocuses its priorities on
sustainability and health-oriented products.

7. Skills

" Mars Ice Cream’s main strengths are its knowledge in chocolate
production and business capacity to connect its existing future best-down
towards the challenges of ice cream production (Food Business Africa,
2024). Flavour development expertise, built over years of working in the
confectionery industry, provides the company with a distinct competitive
advantage. Also, its logistical strengths allow frozen high-quality goods to
be shipped in the best worldwide conditions.

However, as consumer demands shift, it is increasingly clear that

expanding these capabilities is essential. For instance, developing dairy-
free or plant-based ice cream requires expertise in alternative ingredient
formulations. Moreover, the challenge of scaling these innovations
without sacrificing taste or quality will test the company’s flexibility.

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 Figure 1: McKinsey 7-S Framework

(Source: Venngage, 2020)

2.5. Barney’s VRIN Framework Analysis

The VRIN Framework assesses the internal resources and capabilities of

Mars Ice Cream by analysing if they are Valuable, Rare, Inimitable, and
Non-substitutable. Together, these criteria demonstrate whether Mars Ice
Cream has a sustainable competitive edge in the premium ice cream
sector.

VRIN Attribute Details

Valuable Capitalizes on Mars, Inc.’s resources,
distribution, and brand strength, with

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 products featuring Snickers, Twix, and
Mars Bar. Leverages brand loyalty to
reduce marketing costs and align with
premium quality trends.
Combines well-known chocolate brands
Rare with high-quality frozen treats to establish
a distinctive market position. Competitors
include specialist brands that develop
unique flavors and healthier alternatives.
Inimitable Unique chocolate formulations and a
tightly managed supply chain are difficult
to replicate. Strong emotional attachment
to the brand helps Mars Ice Cream's market
standing. Concerns about the supply chain
include rising costs and climate-related
concerns.
Non-substitutable Mars Ice Cream's tremendous brand
identity and profound emotional
connections make it irreplaceable;
nevertheless, shifting consumer preferences
are increasing the demand for plant-based
or health-focused alternatives to preserve
its incomparable taste and experience.

Table 1: Barney’s VRIN Framework

(Source: Self-Created)

Mars Ice Cream uses the massive resources, global distribution channels,
and established reputation of its parent business, Mars, Inc., to provide
outstanding value to customers. The company capitalises on existing
brand loyalty and cost-effective marketing techniques by incorporating
popular chocolate brands like Snickers and Twix into their offers. This
combination of quality frozen desserts and worldwide famous chocolate
brands results in a one-of-a-kind product portfolio, especially in the face

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of competition from niche companies offering creative tastes and healthier
alternatives. The use of distinctive chocolate formulas, a vertically
integrated supply chain, and a deep emotional bond with customers enable
its products stand out in the market. Nonetheless, ongoing innovation is
required to meet changing customer tastes, health trends, and supply chain
challenges.

Valuable Rare Inimitable Organisation

YES YES YES YES SUSTAINED

V R I N COMPETITIVE
ADVANTAGE

NO NO NO NO

COMPETITIVE TEMPORARY UNUSED

COMPETITIVE
DISADVANTAG COMPETITIVE COMPETITIVE
PARITY
E ADVANTAGE ADVANTAGE

Figure 2: BRIN Framework

(Source: Self-Created)

Competitive Advantage:

Mars employs a product differentiation approach that focuses on strong

brand identity, premium quality, and innovation. This technique allows
Mars to present its ice cream products, such as Snickers Ice Cream Bars,
Twix Ice Cream, and Mars Ice Cream Sandwiches, as premium delights
that blend luxury with familiarity. The combination of globally recognized
chocolate brands and high-quality ice cream gives Mars a distinct
advantage in the competitive ice cream business. Below, we investigate
the elements that contribute to its long-term competitive strength:

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1. Strong Brand Recognition and Emotional Connection

Mars benefits from its well-known chocolate brands, since consumers are
drawn to the ice cream variations. The trust, nostalgia, and emotional ties
generated by this brand relationship enable Mars to raise its prices.
Nonetheless, as customer preferences shift toward healthier options, Mars
must continue to generate fresh concepts while strengthening its brand
identity.

2. Product Innovation and Quality

1. Mars is recognised for its inventiveness, combining chocolate bar

flavours with ice cream to produce unique experiences that
competitors find difficult to replicate, such as:

 Snickers Ice Cream Bars are made with rich ice cream, caramel,
nougat, and peanuts.

 The crunch of the biscuit base, together with layers of chocolate and
caramel, is replicated by Twix Ice Cream.

Finding a balance between enjoyment and wellness remains difficult,

but Mars is expanding its products to include low-calorie, plant-based,
and sugar-free options to appeal to health-conscious consumers.

3. Operational Excellence and Supply Chain Integration

Mars improves operational efficiency by reducing reliance on external

suppliers, enabling efficient cold-chain logistics, and ensuring constant
quality. These capabilities enable Mars to respond swiftly to market

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demands, but the company must continue to invest in robust systems to
reduce the risks posed by global shocks, such as geopolitical tensions and
climate change.

4. High Customer Loyalty

Mars' unique selling feature promotes consumer loyalty in two ways: by

raising brand awareness and by giving delightful experiences with well-
known products. While loyalty minimizes the need for expensive
marketing efforts, it does not guarantee long-term success, especially as
competitive innovators arise. Mars must use this devotion to offer new
product lines while still maintaining its existing client base.

5. Commitment to Sustainability

Mars distinguishes itself with sustainability initiatives such as using

recyclable packaging and committing to procuring chocolate that is
completely sustainable by 2025. Even though these actions are good for
Mars' reputation, they need to be communicated clearly to improve how
people see the brand, especially since rivals like Ben & Jerry's are more
open about how they treat the environment.

6. Challenges to Sustaining Competitive Advantage

Mars encounters multiple challenges in maintaining its competitive

advantage:

 Health-conscious trends: Rising demand for healthier products

could reduce the appeal of indulgent offerings.

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  Intense competition: Competitors like Nestlé, Mondelez, and
Hershey are innovating in the premium ice cream market, while
niche players target specific segments.

 Global disruptions: Climate change, rising ingredient costs, and

supply chain instability could affect operational efficiency and
pricing strategies.

2.6. Strengths and Weaknesses

Strengths:

 Brand loyalty and equity: The ability to leverage well-known brands

in the ice cream market offers Mars Ice Cream a competitive edge.

 Operational scale and efficiency: Mars’s global operations provide

the company with cost advantages through economies of scale.

 Product innovation: The company’s ability to integrate its chocolate

brands into ice cream products shows its innovative capabilities.

Weaknesses :

 Limited presence in the health-conscious market: While strong in

indulgent products, Mars Ice Cream has a limited offering in the
rapidly growing health-conscious segments.

 Sustainability concerns: Despite efforts, Mars still faces challenges

related to environmental sustainability, particularly in packaging and
cocoa sourcing.

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3. External Environment Analysis

3.1 Macro Environment Analysis: PESTLE Framework

The PESTLE analysis examines the technological, legal, social, political,

economic, and environmental factors that impact Mars Ice Cream. These
components are critical in determining the root causes of the company's
change.

Several external factors influence Mars Ice Cream's business operations.

Political forces such as trade regulations and sugar content limits may
drive recipe changes and raise production costs. Economic issues that may
affect profitability include exchange rates, global growth, and raw
material costs. Mars must adapt to cultural preferences, shifting toward
healthier and more glamorous products in response to social developments
such as consumer demand for luxury items and health awareness.

Advances in food technology and e-commerce provide new chances for

innovation and growth. Legal norms, such as those governing food safety
and advertising, must be followed to avoid reputational damage. Because
of environmental concerns about sourcing and packaging, especially in
light of climate change, Mars' supply chain prioritizes sustainability.

Factor Key Impacts Implications for

Mars Ice Cream

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Political Sugar regulations, Need to adapt recipes
trade tariffs and manage cost
increases.

Economic Rising raw material Explore cost-effective

costs production methods.

Social Demand for healthier Opportunity to expand

and premium products low-sugar and plant-
based lines.

Technological Advancements in food Invest in R&D for

technology innovative, healthier
products.

Legal Food safety and Ensure compliance to

advertising restrictions maintain brand
reputation.

Environmental Sustainability Shift to eco-friendly

concerns, climate packaging and
impacts sustainable sourcing.

Table 2: Pestle Framework Analysis

(Source: Self-Created)

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 Figure 3: Consumer Preference for Ice Cream Attributes

(Source: Self-Created)

3.2. Key Drivers of Change

1. Health and Wellness Trends:

The food industry, notably the ice cream market, is evolving in response
to the global trend towards healthier lives. Consumers are increasingly
opting for plant-based, low-calorie, and sugar-free ice cream because they
view it as both a treat and an essential component of a healthy diet.
Furthermore, functional foods with health advantages, such as protein and
probiotics, are becoming increasingly popular. Mars Ice Cream is facing
both opportunities and problems because of its shift. The emphasis on
healthier cookie options aligns with consumer preferences, and General
Mills’ confections remain popular. If Mars maintains the flavor and
quality of its products, expanding into plant-based ice creams or foods

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made with alternative sweeteners may appeal to health-conscious
consumers.

2. Sustainability Concerns:

As customer demand for eco-friendly packaging, ethically sourced food,

and lower carbon emissions grows, brands must account for their
environmental impact. Mars is looking into the origins of its cocoa, a key
component, due to worries about deforestation and poor working
conditions.
Mars has committed to using less plastic in its packaging and sourcing
100% of its chocolate ethically by 2025. To distinguish in a market that is
more concerned with sustainability, it must consider compostable
packaging and manufacturing with renewable energy. Because
sustainability is now a must rather than an option, Mars must streamline
its processes and emphasize it in marketing.

3. Economic Fluctuations:

Several economic factors influence consumer purchasing power, such as

inflation and changes in disposable income. Sales of luxury items, like
expensive ice cream, usually decline during recessions as people prioritize
their needs. Nevertheless, spending on luxuries rises in a thriving
economy. Mars Ice Cream may capitalize on affordability signals during
recessions and preserve its premium image by providing special bundles
or smaller, more inexpensive quantities. Enhancing premium products
may result in higher margin sales in a stable economy. Mars Ice Cream
should implement a dual-price strategy that targets both the high-end and
value sectors to reduce economic uncertainty.

4. Technological Innovations:
The manufacturing, promotion, and sales of ice cream are changing as
a result of developments in e-commerce and culinary technology.
Particularly for plant-based recipes, innovations like cryogenics,

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 precision fermentation, and AI-based flavor formulation increase
output and produce distinctive commodities. Since customers now
demand flawless online experiences and quick delivery, e-commerce
has drastically changed marketing and distribution. Mars Ice Cream
still needs to use blockchain for supply chain transparency and artificial
intelligence (AI) for tailored marketing, even after improving logistics
and collaborating with e-commerce companies. Innovation,
effectiveness, and customer involvement all depend on ongoing
investments in digital infrastructure and food technology.

3.3. Microenvironment Analysis: Porter’s Five Forces

Porter’s Five Forces framework helps to understand the

competitive dynamics and attractiveness of the market.

The ice cream industry's high entry hurdles protect well-known companies
like Mars. Niche enterprises that offer plant-based, dairy-free, or healthier
alternatives, on the other hand, may jeopardize the expansion of higher-
margin industries. Although Mars' size allows them to bargain with
suppliers for better terms, rising raw material prices and sustainability
initiatives may have an impact on revenue. The bargaining power of
buyers is high, with alternative dessert options available, limiting pricing
flexibility and increasing the need for innovation. The threat of substitutes
is high, and Mars must invest in innovation to stay competitive,
potentially lowering short-term margins. Intense competition from brands
like Nestlé and Hershey’s, particularly in healthier alternatives, reduces
Mars’s pricing flexibility but drives innovation, making the premium
segment profitable.

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Forces Analysis Impact on
Profitability

Danger of High entry barriers due to Barriers help Mars retain

New production, distribution, and its position, but niche
Entrants branding costs. Smaller brands may players could impact
target niches like healthier, dairy- growth in higher-margin
free, or plant-based options. segments.

Bargaining Mars relies on cocoa, dairy, and Higher raw material costs
Power of sugar. Suppliers may have leverage and sustainability efforts
Suppliers during shortages, but Mars’s size may reduce profits, but
allows better negotiation. Mars's scale mitigates this.

Bargaining High bargaining power due to Limits pricing flexibility

Power of alternative dessert options. Mars must and increases pressure to
Buyers balance product quality with buyer innovate, impacting
demands. short-term margins.

Threat of Consumers have other options like Substitutes lead to higher

Substitutes frozen yogurt, sorbets, and low- marketing and innovation
calorie or vegan alternatives. Mars costs, lowering margins
must innovate to stay relevant. but sustaining long-term
demand.

Competitive Major players like Nestlé, Hershey’s, Intense competition

Rivalry Conagra, and Mondelez dominate. reduces pricing flexibility
Competitors have invested in but drives innovation,
healthier alternatives. making the premium
segment profitable for
Mars.

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 Table 3: Porter’s Five Analysis

(Source: Self-Created)

Industry Profitability:

The ice cream market remains profitable, particularly in the premium

segment where Mars operates. Key factors sustaining profitability include:

1. Strong Brand Equity: Enables premium pricing

Mars, which owns Snickers, Twix and M&Ms, can demand high
rates for its ice cream products. Customers are willing to pay more
for these brands due to a correlation with quality and reliability.
Brand loyalty like that is a big win for a competitive market.

2. Innovation: Supports Demand in Niche Segments like

Plant-Based or Low-Calorie Products

Mars’s focus on innovation, including healthier and niche products

like low-calorie and plant-based ice cream, helps the company
exploit emerging trends in the marketplace. These are also appealing
to the health-driven consumer helping to grow demand in these
increasing segments whilst retaining product differentiation.

3. Economies of Scale: Reduces Costs for Established

Players Like Mars
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 Mars benefits from economies of scale, allowing it to reduce
production and distribution costs. Its global operations and large-
volume production make it more cost-effective than smaller
competitors, enabling the company to maintain profitability despite
rising input prices.

3.4 Customer Segmentation

Mars Ice Cream serves a diverse range of consumers, and a

detailed segmentation analysis helps to understand its target
audience:

Demographic Segmentation:

Age: Primarily targets younger consumers (children, teenagers, young

adults) but also appeals to adults seeking indulgent treats.

Income: Focuses on middle- to upper-income consumers who are willing

to pay a premium for branded ice cream products.

Geography: Mars Ice Cream has a global presence, with a particular

focus on North America and Europe, where premium ice cream
consumption is high.

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 Figure 4: Consumer Spending on Ice cream by region

(Source: Self-Created)

Behavioural Segmentation:

Occasion-based consumption: Mars Ice Cream is often enjoyed as an

indulgence during celebrations, holidays, or as a casual treat.

Loyalty: The strong brand equity of Mars’s chocolate products leads to

high brand loyalty. Consumers who enjoy Mars chocolate bars are likely
to try and continue buying Mars Ice Cream.

Psychographic Segmentation:

Health-conscious consumers: Increasing availability of more healthy and

low-calorie options, allowing Mars to serve more health-conscious
customers.

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 Premium and indulgence seekers: Shoppers willing to splash out on
luxury treat moments or little splurges for themselves are an important
market for Mars Ice Cream.

3.5 Recommendations

Mars Ice Cream's success is based on differentiation, but to stay

competitive, the company must focus on health-related items. Mars, with
its strong brand and global reach, is well-positioned to capitalize on the
expanding health-conscious market. However, it is experiencing severe
competition and changing customer expectations, particularly in terms of
sustainability and health. This part will make recommendations and
propose a new product concept based on an assessment of the internal and
external environments, as described in a SWOT analysis.

3.6. SWOT Analysis

The SWOT analysis provides a concise summary of Mars Ice

Cream’s internal strengths and weaknesses, as well as the external
opportunities and threats in the market.

Internal Factors Strengths Weaknesses

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1.Brand Equity Global recognition of Not well-known in
chocolate brands (e.g., health-conscious markets
Twix, Mars bars) provides (plant-based, dairy-free,
a competitive edge. low-calorie).

2.Global Extensive global presence High sugar content may

Distribution and supply chain enables alienate health-conscious
Network wide customer reach. consumers and attract
scrutiny.

3.Product Ability to create unique Cocoa procurement and

Innovation & Scale products with chocolate packaging waste remain
ingredients in ice cream. challenges.
Large operations reduce
production and
distribution costs.

Table 4: SWOT Analysis Internal Factors

(Source: Self-Created)

Strengths:
1. Brand Equity: Globally known chocolate brands, such as Twix and
Mars bars, provide a competitive edge.
2. Global Distribution Network: Our global distribution network and
supply chain enable us to serve a wide variety of customers.

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 3. Product Innovation and Scalability: Capable of making unique ice
cream flavors with chocolate ingredients. Larger operations incur
reduced production and delivery costs.

Weaknesses:
1. Health-conscious Segments: Not well-known in health-conscious
markets (plant-based, dairy-free, low-calorie).
2. High Sugar Content: High sugar levels may dissuade health-
conscious customers and raise worries.
3. Sustainability Challenges: Sustainability concerns remain,
including chocolate procurement and packaging waste.

External Factors Opportunities Threats

Rising demand for Healthier Intensifying
healthier alternatives: alternatives: Demand competition: Major
Growing interest in for healthier ice cream competitors like Nestlé
dairy-free, sugar-free, options. and Mondelez continue to
and low-calorie ice innovate rapidly.
creams.

Growth of plant-based Plant-based Health-related

products: Rising products: Increasing regulations: Increasing
popularity of plant-based demand for dairy-free laws on sugar content and
food offers growth options. marketing to children
potential for dairy-free could restrict promotion.
ice creams.

Sustainability trends: Sustainability: Focus Supply chain risks:

Growing demand for on eco-friendly Dependency on raw
materials like cocoa and

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sustainable packaging practices and sourcing. dairy presents supply
and ethically sourced vulnerabilities.
ingredients.

Table 5: SWOT Analysis External Factors

(Source: Self-Created)

Opportunities:
1. Rising Demand for Healthier Alternatives: There is a growing
demand for healthy alternatives, such as dairy-free, sugar-free, and
low-calorie ice cream.
2. Growth of Plant-Based Products: As plant-based diets gain
popularity, dairy-free alternatives become increasingly appealing.
3. Sustainability Trends: There is an increasing demand for eco-
friendly packaging and ethically sourced items.

Threats:
1. Intensifying Competition: Major competitors, such as Nestlé and
Mondelez, continue to innovate swiftly.
2. Health-Related Regulations: Stricter sugar limitations and targeted
marketing to youngsters may inhibit promotion.
3. Supply Chain Risks: Utilizing raw commodities such as cacao and
dairy indicates availability constraints.

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 Figure 5: SWOT Analysis

(Source: Self-Created)

3.7. Marketing Strategy: The 4Ps

The 4Ps of Marketing—Product, Price, Place, and Promotion—offer a

framework to understand how Mars Ice Cream positions itself in the
market and drives consumer engagement.

1. Product

Mars Ice Cream's portfolio includes legendary brands such as Snickers,

Twix, and Mars Bar, which are always evolving to meet consumer
demands. This includes plant-based, low-calorie, and sugar-free options

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that cater to health-conscious consumers while retaining product quality
and enjoyment.

2. Price

Mars Ice Cream has a premium pricing approach that capitalizes on Mars
Inc.'s brand value while maintaining transparency and quality. To entice
budget-conscious customers, it offers lower box sizes and occasional
discounts.

3. Place

Mars Ice Cream is available in supermarkets, convenience stores, and

online all over the world, thanks to the company's global distribution
network.The company is expanding its online presence to meet the
growing demand for speedy shopping and home delivery.

4. Promotion

Mars Ice Cream employs several marketing strategies, including

television advertisements, digital engagement, and social media, all while
promoting sustainability. Seasonal marketing and eco-friendly activities
boost client loyalty and brand awareness.

3.7. New Product Idea: Mars Plant-Based Ice Cream Line

Opportunity:

Mars Ice Cream has a great chance as the market for plant-based, dairy-
free, and healthier sweets grows. Lactose intolerance, worries about

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animal welfare, and environmental effects are the main factors driving the
rapid growth of the worldwide plant-based food business (Plant-Based
Foods Association, 2023). Mars Ice Cream may appeal to consumers who
are health-conscious while still providing a decadent, fulfilling pleasure
by launching a range of plant-based ice cream.

Product Concept:

Mars Plant-Based Ice Cream, featuring dairy-free versions of classic Mars

chocolate bars like Snickers, Twix, and Mars, is a new product line. Made
with plant-based ingredients such as almond or oat milk, these ice creams
would offer creamy textures and rich flavors without dairy. The line
would cater to vegan and health-conscious consumers, allowing them to
enjoy their favorite Mars treats in a more inclusive form.

Target Market:

Health-conscious consumers: those who crave enjoyment but prefer

eating healthier foods. This includes people who wish to reduce their use
of dairy, sugar, and animal products, as well as those who want to
manufacture sweets with cleaner, more natural components.

Vegan and plant-based consumers: Vegans represent a sizable and

rising section of the food business, making them an important target
market for plant-based ice creams. These customers specifically seek out
superior sweets that meet nutritional and ethical standards.

Lactose-intolerant consumers: Lactose intolerance affects

approximately 65–70% of the population. Mars will be able to enter this

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market by developing a plant-based ice cream brand that will provide
lactose-intolerant customers an affordable alternative to pricey frozen
delights.

Product Features:

Vegan and dairy-free: All options are vegan, and those with dairy
allergies or sensitivities are welcome.

Less sugar: To cater to health-conscious customers, this Mars Ice Cream

product line developed with plant-based components will have less sugar
or organic sweeteners than traditional varieties.

Eco-friendly packaging: To meet customer sustainability expectations,

the product will be packed using recyclable or biodegradable materials.

Variety of flavours: To boost excitement and sales, the first release will
include seasonal or limited-edition flavors (such as salted caramel,
coconut, or dark chocolate) in popular Mars chocolate bar variations.

3.8. Marketing Strategy

To successfully launch the Mars Plant-Based Ice Cream Line, a targeted

marketing strategy is crucial. The following activities are recommended:

1. Digital and Social Media Campaigns

Targeted ads on social media: Using platforms like Facebook,

Instagram, and TikTok, Mars can target vegan, lactose-intolerant, and

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health-conscious consumers, showcasing the rich flavors of plant-based
ice cream.

Influencer partnerships: Collaborating with plant-based and health-

conscious influencers boosts product awareness and credibility by offering
lifestyle content that complements the ice cream.

Hashtag campaigns: Using a branded hashtag (e.g.,

MarsGoesPlantBased), customers can share their experiences and promote
user-generated content.

2. In-Store Promotions and Sampling

Sampling in grocery stores: Larger stores would allow customers to taste

plant-based ice cream, hence trying and being converted to buy the
product.

Point-of-sale displays: The plant-based ice cream line would be front-

and-centre next to traditional Mars Ice Cream products in grocery stores
to call attention to the new offerings.

3. E-commerce and Direct-to-Consumer Channels

Online sales platforms: Launching the plant-based ice cream on e-

commerce channels will allow direct-to-consumer sales via the brand’s
website and independent merchants, with special offers or packages to
encourage transactions.

Subscription boxes: Partnering with subscription box companies focused

on health and wellbeing will help expose the plant-based ice cream to
health-conscious consumers.

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4. Sustainability-Focused Messaging

Highlight eco-friendly practices: Marketing materials should emphasize

the sustainability of the plant-based brand, including the use of ethical
ingredients and recyclable packaging. This messaging will appeal to
environmentally conscious consumers and help Mars differentiate itself
from competitors.

Social responsibility: Mars can strengthen brand loyalty among ethical

customers by showcasing its broader corporate commitment to
sustainability, not only through this product line but also across its
environmental and cocoa-sourcing initiatives.

3.9. Conclusion

By adjusting to changing consumer preferences for greener and healthier

products, Mars Ice Cream may be able to maintain its position as the
market leader in confections. The company may capitalize on the rapidly
growing demand for vegan, dairy-free, and eco-friendly ice cream
alternatives by launching a Mars Plant-Based Ice Cream Line. Mars Ice
Cream can become more competitive in the global ice cream market by
utilizing its high brand equity, emphasising sustainability, and putting a
focused marketing plan into action.

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behavior-trends-state-of-the-consumer-tracker/sustainable-products-customer-
expectations.html (Accessed: 31 May 2023).

Mars Incorporated. (2023) Company overview and product portfolio. Available

at: https://www.mars.com/our-brands/mars-snacking (Accessed: 28 November
2024).

Mintel. (2023) UK Chocolate Confectionery Market Report 2023. Available at:

https://store.mintel.com/report/uk-chocolate-confectionery-market-report-2023
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Forbes (2024): Forbes. (2024) Mars Inc. Available at:

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November 2024).

InnoVA Market Insights. (2023) Ice Cream Trends & Dairy Alternative Ice
Cream Trends. Available at: https://www.innovamarketinsights.com/trends/ice-
cream-trends/ (Accessed: 28 November 2024).

Grand View Research. (2023) Non-Dairy Frozen Dessert Market Size Report,
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Mintel. (2023) UK Sustainability in Food Market Report 2023. Available
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McKinsey & Company (2023) Cross-functional Collaboration: Building Agility

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