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Marketing Research 1

Running Head: Marketing

Market Segmentation and Strategies That Could Be Used By the Hershey Company

Victoria Rock

AIU Online




Introduction

The marketing strategy is taken in the basis of internal and external environment of an

organization. For the success of a company as well as its products and services, it is necessaryto make some important and effective marketing decisions (Marketing Segmentation,

Targeting, and Positioning, 2011). This paper will examine market segmentation and strategies

that could be used by the Hershey Company for their product, chocolate bar.




Marketing Strategy for Hershey and the Chocolate Bar

Segmentation

According to our book, Marketing, segmentation is the identification of subjects of buyers

within a market who share similar needs buyer behavior (Marketing Segmentation, Targeting,

and Positioning, 2011). Because of the world being made up of billions of buyers, with their

own set of needs and behavior, segmentations aim is to match groups of purchasers with the

same set of needs and buyer behavior. (Marketing Segmentation, Targeting, and Positioning,

2011) Segmentation is a form of critical evaluation and not a prescribed process or system

because no two markets are the same.

There are however a number of underlining criteria that can help with segmentation:

Is the segment viable and can we make a profit from it? Is it accessible and how easy is it to get into the segment? Is it measurable and can we obtain realistic data to consider its potential? (Marketing

Segmentation, Targeting, and Positioning, 2011)

With adults accounting for the largest percentage of chocolate bar sales and with the

increased interest in healthier foods, Hersheys segmentation should cover:

Promoting the health benefits of their dark chocolate products. Help in changing the mind of customers as to chocolate being an unhealthy snack. Increase potential sales through promotional programs throughout the year. Repackage so that the new look appeals to the consumers since it will be tagged as

low-calorie.

Target Market

Consumers constantly change their preference for products, so its no big surprise that

consumers wants for chocolate products has changed as well. They want a greater variety,

which enables the industry to expand on their product line. This provides an opportunity for

greater sales of the new product. With the health trend over the past decade, studies haveshown that dark chocolate provides health benefits such as cardiovascular benefits as well as

reducing an adults chance of cancer. (Marano, 2011) Non-traditional holidays as well as

traditional holidays offer an opportunity to market specialized products tailored for a specific

holiday while providing for the opportunity for specialized gift products to increase sales. (Food:

Company Spotlight: Hershey, 2010)




Positioning, Differentiation and Proposition

Positioning is defined as the image of a particular product or service as seen by the

consumers that are created by the marketer through promotional activities. An effective

positioning builds up an image of the company in the mind of the consumers. (Marketing

Segmentation, Targeting, and Positioning, 2011) The positioning and differentiation in the

product will create a value proposition for the business and helps to create a competitive

advantage that reduces competition. (Marketing Segmentation, Targeting, and Positioning,

2011)

In the chocolate bar industry there are several companies operating. Some have a large

market share while others have a smaller market share. The Hershey Companys maincompetitors are Mars and Cadbury. The positing of these companies is quite high in the minds

of the consumer due to the quality of their products. They have been in the industry for many

years and have the leading market share. (The Hershey Company, 2012)

In order to face competition, Hershey has to bring some differentiation in its product quality

to create a better positioning in the minds of the consumers. By providing different flavors to

their candy bar could cause an increase in the effectiveness of their product in the mind of the

consumer. Different promotional strategies could be used such as: print advertising, sales

promotion, public relation, personal selling, etc., could create a strong positioning (The Hershey

Company, 2012).

Proposition could be explained as the benefits that are delivered by the company to its

customers. (Marketing Segmentation, Targeting, and Positioning, 2011) The value proposition

of the chocolate bar is the increase in customer satisfaction by being produced in different

tastes and flavors that accommodate all customers. High quality and different flavors would

provide more benefits to the customers that are not provided by the competition. A good

positioning statement would be very effective in increasing the customer base.




Conclusion

It can be concluded that a good marketing strategy is an important and crucial tool that can

determine the success or failure of a product or service for a company. If Hershey uses the

right marketing strategies they can take the market on health dark chocolate as well as other

healthy snacks.




Reference

Food: Company Spotlight: Hershey. (2010, March). Marketwatch: Global Round-Up 9, no. 3, pp. 89-95.

http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?sid=345aef1e-10ea-4e64-

9460-27afc745a81d%40sessionmgr12&vid=10&hid=101

Marano, H. (2011). The Scoop on Chocolate: Is chocolate really healthy? Psychology Today Vol. 44 Issue

2, p44-45.

http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?nobk=y&sid=9b41

2f6c-be5f-4f73-87e4-5a02a9305fbf@sessionmgr110&vid=12&hid=101

(2011). Marketing Segmentation, Targeting, and Positioning. In H. S. Kerin R., Marketing (pp. 220-243).

New York: McGraw-Hill/Irwin.

(2012). The Hershey Company. Hoovers, Inc.

http://subscriber.hoovers.com.proxy.cecybrary.com/H/company360/overview.html?companyId=75995

449
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