Business Week
 
       
12-02-2002     A Mass Market of One
By Faith Keenan in Boston, with Stanley Holmes and Jay Greene in Seattle, and Roger O. Crockett in Chicago

As custom online ordering moves into the mainstream, Web merchants learn to fine-tune their trade

Like many other Web businesses, it was a good idea that took time to blossom. The year was 1997, and Masterfoods USA, the division of Mars Inc. that makes M&M's, launched an online site called Colorworks. It offered a palette of 21 colors to coat specially ordered M&M's. Customers could pick any combo--maroon and gold, say, for their school colors, or silver for that special anniversary. It was a model of flexibility except for one thing: The minimum order, designed for wholesale buyers, was 40 pounds--enough M&M's to give the celebrating couple a sugar overdose.

Chocolate lovers clamored for smaller portions. And in April, 2001, Masterfoods responded, tweaking its manufacturing to produce eight-ounce and five-pound customized bags and selling them online. Although these cost nearly three times the price of regular M&M's, they've become a growing niche business, with sales doubling every year, say execs. "We're using technology to give consumers the products they're after," says Bill Simmons, general manager of the Masterfoods business development team.

From colored bits of candy to hockey sticks and complex plastics, lots of items are now being tailored to individual desires. This is part of a continuing industrial evolution--from mass production to mass customization. The result is the mass market of one. And the Web is helping to bring it about. Companies are wooing shoppers with a digital version of the classic Burger King come-on: "Have it your way."

 
         
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