You probably know Mars Inc. as the maker of popular candy like M&M’s and Snickers. But the company actually makes more money from your pets than from your sweet tooth.
The candy giant recently announced its acquisition of VCA, a network of veterinary hospitals and doggy day cares. And this isn’t its first foray into the pet business either. Mars Inc. already owns Pedigree and Iams brands, along with over 1,000 veterinary clinics.
This might seem like a strange combination of product and service offerings. But when you think about changing consumer trends, it actually makes a lot of sense. Consumers are becoming more health conscious, and thus less interested in spending tons of money on sugary treats. And people are also becoming increasingly concerned about the wellbeing of their pets. So they’re willing to spend on them like they would any other member of the family.
Consumer Trends Drive This Diversification Strategy
Mars Inc. didn’t just shift from selling candy to selling dog food overnight. The company appears to have moved slowly as it keeps an eye on changing trends among consumers. And other businesses that might be working in changing industries could learn a valuable lesson from this slow business evolution.
Mars Photo via Shutterstock
It is surprising but if they are doing good, then it is a good path for them. I guess it is all because they have decided to take things slow. This allowed them to succeed. I think that there is a good market in that area. Dog food are purchased on a regular basis compared to candies.
Exactly! They’ve kept an eye on trends and made steady changes instead of just jumping in all at once.
This is a successful story of diversification. It shows that it is worth to take the risk as long as you take the necessary steps to make the shift.
As long as they don’t use the same machines for the two, then I am good. I can see why they have to diversify. People are getting a little bit too health conscious for candies.
Hah! Good point – I don’t want any candy made in a dog food factory