| 12-02-2002 |
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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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