7/17/2019 Hershey's Interview Transcirpt

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Ms. Lowella: Most of the purchases na nangyayari sa supermarket accounts for

60%, 11% in CBS, the balance comes from the kacheapan ng sari-sari store !ong

sari-sari stores kase ay "ahil sa Clou" # Clou" # is the top one, in terms of total

chocolate sales Category penetration is at $%

Mr. Kirby: &n" by category penetration, 'e mean(

Ms. Lowella: )hat 'oul" mean out of the 1million retail stores, $00,000 of that

'oul" carry any chocolate, an" sell any chocolate * think hin"i na kasama "oon

yong mga on premise accounts like in restaurants, caren"eria +etail outlets only

like supermarkets, hypermarkets, conenience stores, sari-sari stores hm, "elicate

kase here sa .hilippines *n the chocolate business kase there/s al'ays a

complementary technology it nee"s to be air-con"itione" else it 'ill melt

imme"iately unless if you are compoun" chocolates )hat/s the reason na nag th-

thrie si +C kase p'e"e siya sa sari-sari store "ahil compoun" siya So pang

compoun" na lang yong gaga'in niyo laughs2

Mr. Kirby: 3o, para maging feasible kayo laughs2

Mr. Willard: &n" also another reason 'hy that particular pro"uct thries is that the

masa

Mr. Kirby: 4ala na atang kahit isang compoun" chocolate that manufactures here

Most of them really are importe"

Arra: So, kahit compoun"(

Miss Lowella: &h no, the compoun" is here

Mr. Kirby: &h )he compoun" is here )he real is importe"

Ms. Lowella: 5en like sa supermarkets, not all 'oul" carry real chocolates ase

hin"i naman lahat aircon 3kay, so ano yong a"7acent categories namin laughs2

&"7acent categories to us, snacks kase 'e share the same occasion Sa chocolates

there are seeral consumption occasions 8rst occasion 'oul" be instant

consumable kase the moment you see it "iba, it triggers in your min" na 9* 'ant

chocolate/ )here/s another one for sharing &n eample of that is isses &t si

isses kase ay 9Sharing Moments of ;appiness/ Si ;ershey/s kase 9Making Moments

Special/ .'e"e mo i-share So yan for sharing &nother segment 'oul" be for

gifting occasions chocolate is also associate" 'ith gifting )umataas yan pag<alentine/s, Christmas, "i naman tayo masya"o nag ha-;allo'een, pag 5aster "i

naman tayo nag re-regalo-han

Honey: So you "on/t actually consi"er a can"y company a "irect competitor(

Mr. Kirby: 4ell, 'e actually consi"er them a separate business

7/17/2019 Hershey's Interview Transcirpt

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Ms. Lowella: )op line, share of throat, kalaban namin sila pero the consumers right

no' are ery occasion-"rien consumption *t/s not because =ah kase kung ito lang

yong pera ko, yon na> )hese "ays, not necessarily na *t/s about kung ano yong

nee"s mo )he can"y an" the chocolates, they occupy "i?erent nee" states ase

chocolates are more on in"ulgence !our moments of "esire, only chocolates can

gie that Si can"y, usually siya yong nagpapa-lipas ng oras, pantanggal ng suya Sican"y at si bubblegum, yon yong nagkakaroon ng same So pagka may enn

"iagram nasa gitna siya laughs2 4e 'ante" to separate chocolates @anun naman

yong marketing eh, kase pag sabihin =ay pare-pareho lng lahat yan> eh "i lahat ng

yan kalaban mo na alaban mo sa bulsa, kalaban mo sa share of throat, kalaban

mo na yong beerage pero if you contetualise your communication na this one is

for you to get in"ulge" 'ith or to re'ar" yourself chocolates is the ans'er

&langan, i-rere'ar" mo sarili mo can"y( laughs2

Francis: ;o' about yong mga nag s-start pa lang na artisan chocolate business

like, hae you hear" of )heo an" .hilo an" other gourmet chocolate na sino-source

yong cocoa beans from the .hilippines talaga Ao you monitor their gro'th "in or

hin"i nyo sila kino-consi"er as a player on the chocolate market(

Ms. Lowella: ot yet ot yet ;in"i ko pa yan sila naririnig

Mr. Kirby: .utting the likes of @o"ia, * think in terms of market kase the focus of 

;ershey is really retail, right( So these chocolate business these artisan

chocolates that you mentione" are not really part of the commercial or the in"ustry

that 'e are placing our pro"ucts on

Ms. Lowella: Strategy-'ise, the sie an" the price of chasing them is not as

lucratie as chasing the bigger pie so mamili na lang tayo ng laban

Arra: So 'hat are the possible constraints an" problems that a chocolate market

can face in to"ay/s market, other than competition(

Ms. Lowella: .ricing(

Mr. Kirby: * guess in terms of logistics kase asi"e from competition in the market *

'oul" say kase pricing 'hen you say competition 'ithin the market is mostly

banke" on pricing right( 4ell right no', in terms of pricing si ;ershey as a company

is ery conseratie ormally, nagpr-price increase siya 'hen eerybo"y else "i"

the price increase alrea"y !es, last talaga si ;ershey/s in that sense So if you look

at it, in"irectly it/s more of like yong cost to sen" the pro"ucts to market So * think

that/s 'here the big battle is going to be in the net fe' years especially 'hen *

mention that there are no manufacturing facilities aailable here in the .hilippines

 )hat/s also