PRODUCT OVERVIEW

Hershy Brands Sold in

Trinidad and Tobago

Hershy’s

Reeses

Kisses

Almond Joy

Jolly Rancher

Symphony

York Peppermint

Pattie and York

Pieces

PRODUCT CATEGORY : WHO DO WE

COMPETE AGAINST?

• Chocolate Candy – Bars, Boxes, Bags,

Table Bars (Various sizes)

• Sugar Confectionery

• Desserts (e.g. Ice Cream)

• Convenient Gifts

• Snacks (competes with potato chips,

biscuits etc)

HERSHYS

MAIN COMPETITORS IN CHOCOLATE CANDY

CATEGORY• Mars – Snickers, Milky way, M&Ms

• Nestle – Kit Kat, Butterfinger, Nestle Crunch, Smarties

• Charles Candy – Charles Tablet bars, Twin, Goldfinger,

Wafers -Tiki, Toco Loco, Bongo

Bags - Ping Pong, Peanut Gems, Cheers,

Coated Almonds, Choo Choos, Coated

Hazelnuts, Chockles, Jordan Almonds

Candy Bars – Catch, Nuggle, Peanola,

Coco Crisp, Orion, Bonanza,

XBar

Cadbury - Chocolate Bars ( variety of sizes and weights),

Boxes – Milk Tray, Roses, Quality Street

Healthy Options – Nature Valley Bars

COMPETITORS (VISUAL)

COMPETITOR TRENDS IN THE

MARKETPLACEPrice Charles had the lowest prices in Chocolate Bars and everyday snacks.

Small wafer bars such as Tiki and Toco loco sold for as little as $2.00

Nestle Chocolate snacks Ruth were the next lowest in their respective sizes (Nestle Crunch and

Baby Ruth sold for an average of $5.29 (cheapest Hearshy products sold for $7.49)

Place Availability - Widest coverage among supermarkets was Charles Candy

Charles also commanded significant Shelf and floor space among supermarkets especially

independents

Charles had only minor presence in SuperPharm

Charles uses its own Shelving in some cases

Cadbury had strongest presence next to cashiers in Supermarket Chains and eye level placement

on shelves

Both Cadbury and Mars had small merchandiser stands

Nestle’s Kit Kat was often given a row to itself

Product Mars products and Hershey’s strongest in terms of brand recognition

Charles had largest variety of products in product lines for snacks

Hershey’s packaging had strong consideration for portability, portion control and sharing sizes

(Bags could stand on their own)

Hershy’s variety of parckaging (bags, boxes, bars, variety packs)

Mars and Cadbury packaging gave more consideration to calorie counting

Extensive Variety of Sizes for Cadbury Bars (more than Mars and Hersheys)

Promotion In Store Displays:

Mars, Nestle and Charles used Shelf strips and Shelf paper extensively. They were brightly

coloured and stood out. Few Hershey’s shelf strips were seen

Big signage used by Charles, Cadbury and Hersheys

Attention grabbing shelving used by Mars highlighting M&Ms

Promotional offers (buy 2 get one free) used by Mars and Nestle

SEGMENTATION AND TARGETING

• Age – Children, pre-teens, Teens, young adults, mature adults,

Senior persons

• Income – Low , Middle, High

• Pricing Categories – Super-premium (Sophisticates),

Affordable Premium, Affordable,

Inexpensive

• Taste – Mild Chocolate, Dark Chocolate, Sweet, Fillings (Fruit

and Sweet fillings)

• Usage – Seasonal, Gifts, Occasions/Events, ‘take a break’, ‘

‘pick me up’

• Psychological Associations – Personal Reward, Fun, Sharing,

Family and Friends, Relax and Unwind

FINANCIAL AND MARKETING OBJECTIVES

Financial Objectives:

• To Achieve Revenue Target

• To maintain profitability

Marketing Objectives

• To increase purchases within independent supermarkets by

10%

• Extend market share in supermarket chains

• Expand distribution coverage overall (gas stations, drug

stores etc)

• Increase market share in the following segments:

• Young Adults

• Seasonal Buyers

• Middle Income groups

• Gift Givers

• Everyday Snacks

Strengths • Brand Power And Recognition

• Competitively Priced Among Affordable

Premium

International Brands

• Good Availability In Supermarket Chains And

Convenience Stores With Long Opening

Hours

• Attractive , Innovative Packaging

• Strong Promotional Material, Less

Expenditure On Creating Promotional Material

Weakness • Presence - Shelf Space And Floor Space In

Retail Outlets Often Overshadowed By Rivals

• Distribution Coverage – Availability Has To Be

Increased

• In-store Displays – Lack Of Attention

Grabbing Display Material

• Stronger Local Promotional Campaign

Required To Support The Brand

SWOT: STRENGTHS AND WEAKNESSES

Opportunities • Health Concious Trends

• Seasonal Holidays That Have A Strong Affinity With

Confectionery

• Phychological Associations With Chocolate Eg

Personal Reward

• Growing Trend Of Confectionery As Gifts For A Wide

Range Of Recipients (From Co-worker Sto

Aquaintances). Very Low Involvement And

Convenient Gift

• Independent Supermarkets, Mini- Marts

• Non-supermarket Retail Outlets, Such As Drug

Stores

• Growing student Market

Threats • Intense Rivalry For Shelf Space And Floor Space

Among Supermarket Chains, Independent

Supermarkets And Other Convenient Stores

• Trends Towards Healthier Snacks And Treats

• Multitude Of Healthry Snacking Options

• Good Competitor Competencies For Innovation Of

Healthy Snacks (Mars)

• Commoditisation For ‘Exploring Munchers‘ Makes It

SWOT: OPPORTUNITIES AND THREATS

MARKETING MIX: PRODUCT, PRICE AND

PLACEProduc

t

• Healthier Sugar Free Chocolate

• Smaller Packaging Weighing Less Than 3.5 Oz

• Make Bite Size And Pieces Range Available In Smaller

Packaging

• Smaller Gift Box Chocolates For Seasonal Buying

• Gift Packaging

• Extend Variety Of Sizes For Bars In Large High Traffic

Supermarket Chains

Price • Introduce More Promotional Offers , Eg. Bundle Pricing

• Premium Pricing For Festive Products Used As Gifts

• Maintain Current Pricing Structure For Everyday Snack/

Premium Affordable Options

• Reduce Price Of Bite Size And Pieces

• Discount And Allowance Pricing For Independents

• Penetration Pricing -Promotional Pricing Strategies Among

Independents And Retails Outlets Where Hershey’s Does Not

Have A Strong Presence

Place • Where Possible Use Own Shelving (Within Budget)

• Extend Distribution Coverage To More Vending Machines,

Drug Stores, Convenience Stores And Independent

Supermarkets

• Stronger Presence At Cashiers’ Shelves For Impulse Buying

PROMOTION

Brand Positioning – “Bringing Sweet Moments Of Hershey

Happiness To The World Everyday’

Advertising (Mass Media) :

Use Of Pull Advertising Strategies To Support Expanding

Distribution

Advertising Objectives

• Increase Brand’s Affinity With Fun, Sharing, Family And Good

Times

• Increase Brand’s Affinity With Celebrating And Festive Seasons

• Position Relevant Product As A Healthy Treat

• Reduce Commoditisation By Increasing Differentiation

PROMOTION

Media, use Of:

• Billboards – Major Highways (More Attention Grabing)

• Radio – Rush Hour Drive Time, Popular Music Stations;

Music Stations Frequented By Teen, Young Adults And

25-35 Age Group; Radio Ad Libs

• Television – Hershey’s Commercials Emphasizing Family,

Friends, Fun And Good Times To Reinforce Positioning ;

Advertising Heaviest During Festive Seasons

In-store Displays

• More Use Of Attention Grabbing , Bright, And Interesting

In-store Displays, Shelf Strips, Shelf Tags (Showing

Promotional Offers), Shelf Paper

• Clear Display Of Prices And Products On Strips