M & M is an American brand of button-shaped chocolates available in a variety of colors. The chocolate initially started off as just small button shaped chocolates and now it sells variants with peanuts in it. Other varieties that were introduced include peanut butter, almond, pretzel, crispy, dark chocolate etc. M & M was launched in the US and currently, it is sold in around 100 countries starting from the year 2003.
Tha candy was designed in a manner that the exterior was hard in different colors with firm chocolate inside. The hard coating comprises of different colors some of which have changed over the years. The design was made in such a way that soldiers could carry it without the risk of melting.
The USP os the M & M range of chocolates is that it will melt only in the mouth and not in the pocket. The company captured the minds of its American customers through a wide variety of interesting campaigns and this popularity has now grown to include other customers across the world.
Strengths in the SWOT analysis of M & M :
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of M & M:
- Differentiation: Through the characteristic button shape and a number of colors the brand has carved a niche for itself. The shape and features of the product have helped the company carve a name for itself.
- Focus on innovation: M&M has always had a strong focus on innovation. It started off with an innovative idea of a colorful button like chocolates. They introduce various versions of it with a peanut inside, peanut butter almonds, and pretzels. This product innovation took the brand to success.
- Multiple variants: The chocolate is available in various types. The chocolate initially started off as just small button shaped chocolates and now it sells variants with peanuts in it. Other varieties that were introduced include peanut butter, almond, pretzel, crispy, dark chocolate etc.
- Different advertisements: M & M has always displayed creativity in their advertisements where they showcase each color as a character giving a perception of energy and life to the chocolate buttons.
- Association with Mars: Mars the second largest confectionery company in the world in terms of market share.Mars owns the brand M & M and this acts as one of the biggest strengths of the brand.
- Signature taste: The M&M candies have a signature taste which makes it stand apart from the rest of the crowd.
- Personalisation: It is possible to personalize the M & M candies. This provides immense scope for the brand to take over the market.
Weaknesses in the SWOT analysis of M & M :
Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of M & M are:
- Allegations of chemicals: There have been a lot of controversies surrounding the color in the M &M chocolates. The chemicals that are used in the colors are alleged to be highly toxic.
- Risk of allergies: The composition of M &M is filled with allergens and customers claim that it has caused a lot of allergies to them.
- Pricing: For the Indian market there are a lot of cheaper versions of M & M like Gems which are priced very low. It becomes difficult for M & M to compete in terms of price.
Opportunities in the SWOT analysis of M & M :
Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include:
- Growing demand for specialist candies: There is a huge market for specialist candies like Ferrero Rocher and Lindt and the cumulative average growth rate for luxury chocolate brands is around 20 %. M & M in markets other than the USA can position itself in the premium category.
- License to personalize: M & M has the license to personalization of T-Shirts, mugs, soft toys and figurines. The 30 licenses can provide the company a bunch of opportunities to capitalize on.
- Presence in many countries: The Company Mars is a very well known chocolate company and one of the market leaders. M &M is one of the flagship brands of the company and if at all it plans to absorb any new brands it will be easy to absorb.
- Customisation prospects: M &M is one amongst the few candies that can be customised. This customisation scope makes the chocolate very endearing to kids and thus it is one of the most popular chocolates among kids.
Threats in the SWOT analysis of M & M :
Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:
- Competition: With lowered barriers to entry, confectionery industry is filled with competition. The key competitors for M & M include Hershey’s who always launches new products or variants intermittently.
- Preference for chocolate: The customer is indicating a high preference for chocolate and this coupled with the negative imagery of cancer-causing chemicals in the food color has given their arch rival Hersheys a clear edge over M & M.