The Hershey Company

Confectionary Industry

Research Done by: Daniel, Ivan, Jacie, Jake, Maria, Mikayla, Nick

Introduction• Founded the company in 1894

• Derry Township, PA• 1900 first Hershey Bar• 1905 first Hershey Kiss• 1918 donates all wealth to the Hershey School• 1941 Billion bars for the troops

Hershey’s continues to bring happiness till this very day!

Milton Hershey

Environmental scan

Economic “People are willing to give up a lot of things during a recession but chocolate does not appear to be among them”- NY Times reporter

Rely on Commodities Natural Disasters Hershey Plant helps Pennsylvania

Types:

Brand

Industry

Form

Generic

Brand Competition

Similar products Same customers

Same products class

Industry CompetitionCompetition

CompetitionBrand, Industry, Form, Generic

Form Competition The companies manufacturing products that supply the

same service

Generic Competition All companies that compete for the same

consumer dollars

Technology & Political Legal

Technology“The most technologically advanced chocolate making

facility”

Spent 300m on new factory finished in 2012 Interactive Candy bar Internet & Hershey park app

Political Legal Child labor in Ghana (Harkin-Engel Protocol) FDA

Social-culturalTrends

Customers want healthy products New flavors Socially responsible companies More products

S.W.O.T. AnalysisStrengthsStrong customer base and company image  International brand Diversified products  Product availability is extremely convenient Extremely fast production line able to meet there high demands 

WeaknessesExtremely high advertising expenses Difficult to control the size of the company and its geographic market Not environmental friendly packaging Hershey’s global market share is low, 10% The unhealthy products limit consumer intake and choice

OpportunitiesRicher chocolate/new flavors Healthy benefits/ Protein bars Environmental friendly packaging Establish Hershey’s in China and India Efficiency improvements for distribution

ThreatsConstant fluctuation of commodities (milk, sugar, cocoa) Consumers want healthy product Nestle, Mars, Cadbury Natural disasters can destroy ingredients High Costs to improve technology

Mission statement"Continuing Milton Hershey's legacy of commitment to

consumers, community and children, we provide high-quality HERSHEY's products while conducting our business in a socially

responsible and environmentally sustainable manner,"

Goods, and snacks.

Share goodness & spread happiness through

chocolate sweets, goods,

and other snacks.

Hershey’s Top 3 Direct competitors

Mars Inc.Worlds third largest company in the U.S Have more than 80 brands madeLow prices and have a variety of items

NestleSwiss transnational food and beverage company Economical productsReasonable price

Mondelēz International IncAmerican multinational confectionery food and beverage companyWide sub labels products

Indirect CompetitorsFrito-Lay

Snacks and beverages Partner with PepsiCo Chips made with 100% real cheese and are fat freeWide variety Brands with sub labels

General MillsManufacturer and marketer of branded consumer foods sold through retail stores. Wide range of products Sub labels

Target MarketHershey’s Target Market

Demographics Everyone (however wont market directly to kids)Mom’s & Dad’s (for their children)14+, males & femalesMiddle-classCouplesYoung adults

Geography International Company Wants & Values Spending time with family, indulgence, happiness,

authenticity, simplicity, love, fun, qualityNeeds & Motivations

Making memories, celebration, surprising their kids, taste

Where do they shop?

Chain Grocery stores, mass merchandisers, chain drug stores, vending machines, wholesale clubs, convenience stores, dollar stores, concessions stands, and department stores

Frequency/Quantity

Varied (Everyday and Special Occasions)

Price Sensitivity Somewhat (Middle Class)

Product and PositioningHigh quality chocolate at an affordable priceHelps satisfy customer’s personal pleasurePosition their products to international markets Focus on five core brands: Hershey’s, Hershey’s kisses, Reese’s, Jolly Rancher, and IcebreakerAiming to satisfy customers who want a healthy snacking alternative- sugar free and gluten free optionsMaturity stage of the product life cycle

PricingFair prices available at convenient locationsCandy bars cost around $2Increased prices on healthy snack productsSelect products are discounted monthlyDiscounted prices during Halloween, Christmas, and Valentines day

Hershey’s Distribution

Intensive&

Exclusive

Intensive Distribution Hershey is a company that is known globally and can be found in most stores such as.Convenience storesSuper marketsGas stationsVending machines

Exclusive Distribution Hershey only has 3 specialty stores which are in the U.S. and one of the locations are in “Chicago”.They sell items that cannot be found in any regular store such as Wal-Mart.

Hershey Co. (B2B) Business to Business

They make the

products and then send

it to Wal-Mart and

then Wal-Mart sells it to

the customers

(B2C) Business to Consumer

They make the product then send it to their own chain store then sell it to the customer.They also sell online items on their site customers buy items on the companies website.

Promotion

Hershey Park

Roller Coaster RidesWater Park

RecommendationsCreation of new protein lineExpansion of Hershey’s Chocolate WorldPartnership with Keurig Biodegradable packaging

RecommendationsGuerrilla marketingJewelry lineMore scholarshipsCommercial competition

Work Cited http://www.fritolay.com/index.htmhttp://www.pepsico.com/Brands/BrandExplorerhttp://www.mars.com/global/about.aspxhttp://www.forbes.com/companies/frito-lay/http://www.nestle.com/brandshttps://www.generalmills.com/en/Brands/Overviewhttps://www.generalmills.com/en/Company/Overviewhttp://www.mondelezinternational.com/http://www.forbes.com/companies/mondelez-international/http://www.forbes.com/companies/mars/http://www.forbes.com/companies/nestle/http://www.forbes.com/companies/general-mills/

https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1366&bih=599&q=Mars+logo&oq=Mars+logo&gs_l=img.3..0l8.111.2374.0.3145.9.6.0.1.1.0.328.1006.0j3j1j1.5.0....0...1ac.1.64.img..3.6.1016.-knvmvGOF5w#imgrc=ZY02wnlRCk8hUM%3A

https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1366&bih=599&q=Mars+logo&oq=Mars+logo&gs_l=img.3..0l8.111.2374.0.3145.9.6.0.1.1.0.328.1006.0j3j1j1.5.0....0...1ac.1.64.img..3.6.1016.-knvmvGOF5w#hl=en&tbm=isch&q=Nestle&imgrc=jeVDjqR8QvYp4M%3

https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1366&bih=599&q=Mars+logo&oq=Mars+logo&gs_l=img.3..0l8.111.2374.0.3145.9.6.0.1.1.0.328.1006.0j3j1j1.5.0....0...1ac.1.64.img..3.6.1016.-knvmvGOF5w#hl=en&tbm=isch&q=mondelez+logo

https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1366&bih=599&q=Mars+logo&oq=Mars+logo&gs_l=img.3..0l8.111.2374.0.3145.9.6.0.1.1.0.328.1006.0j3j1j1.5.0....0...1ac.1.64.img..3.6.1016.-knvmvGOF5w#hl=en&tbm=isch&q=general+mills+&imgrc=3gH80k7rKblEgM%3A

"Chocolate and Nutrition Facts and Information." The Hershey Company. N.p., n.d. Web. 16 Nov. 2015.

"Hershey's Convenience." HERSHEY'S Convenience. N.p., n.d. Web. 16 Nov. 2015.

Work cited