RESEARCH
Mars is part of an oligopolistic market, so it has the power to do research and dispose of the costs involved.
The company aims to use first natural and eco-sustainable materials, were born:
ECONOMIC OF SCALE
Cocoa market is OLIGOPOLISTIC
WFP (World Food Programme)
The average cost of Mars products is decreasing depending on the production level.
GAIN (Global Alliance for Improved Nutrition)
There are few multinationals which operating
in the cocoa market (Mars, Nestlé and Mondelez)
PACA (Partnership for Aflatoxin Control in Africa)
These companies produce similar products
that intersect with each other.
(in factory production, March, uses a mounting chain with many "levels")
There are inbound and outbound barriers
The causes are fixed costs about:
1) Technical factors
2) Specialization
3) Research and marketing
MARKETING CODE
Mars promotes a very clear marketing code that it plans to:
(the mars uses very large installations for both their efficiency and to reduce the cost of the single product)
There are economic scale, research and development and marketing code
1
Do not turn over advertisements to children under 12 as they are unable to understand their persuasive intent
There is a control of essential inputs
2
Update the marketing code every three years
3
Give parents all the information they need
(due to the research and development policy on Mars's resources and marketing policy employing a large number of experts, Mars invests considerable capital.)
4
Conform to the international code and test it
5
To ensure products superior to competitive ones
Vs
Input control: Mars is paying close attention to financial, human, material and immaterial resources to maintain high standards in order to win the competition.
Material and
immaterial resources
The products are packed with high quality raw materials.
Mars employees are known as associates because everyone has the freedom to take responsibility and ownership of work.
Mars handles the products in a quality packaging, to have the best for longer-lasting freshness and to prevent food from spoiling
Mars wants to give the necessary support to its associates to build a successful future, indeed, its constant commitment to the growth and development of his staff.
TECHNOLOGICAL BARRIERS
To compete in a global market, the company must have a large number of state-of-the-art machinery
ECONOMIC BARRIERS
1
In recent decades, cocoa does not meet the global demand, so multinationals invest heavily in producing countries.
In particular, Mars machinery is highly specialized, so in the future it will encounter many difficulties in selling them.
2
There are fixed costs that relate to salaries, rent of establishments and machinery that do not end with exit from the market.
There are different types of barriers that a company needs to assess if it wants to break into new market, in our case in the cocoa market.
INSTITUTIONAL BARRIERS
STRATEGIC BARRIERS
REFERENCES :
http://www.mars.com/global/doing-our-part/marketing-principles/promoting-responsible-behavior
http://www.mars.com/global/careers/work-at-mars/learn-grow
http://www.mars.com
There are standards and regulations on the products that must be respected and the business requirements that are required for entering a new market.
Aversa Anna
Battiniello Federica
Capuano Ilaria
Carannante Antonella
Confuorto Simona
Multinationals want to deter other companies from entering the market by adopting :
competitive prices,
prohibition strategies,
expanding their product range
(by protecting them with patents
that prevent plagiarism)