Hershey is a widely respected brand name and as a fact is the largest producer of quality chocolate in North America and considered as global leader in chocolate and sugar confectionery. With history dating to 18th century, Hershey competes with Nestle and Cadbury to dominate global confectionary business. The main product lines include chocolate and confectionery products; food and beverage enhancers, such as baking ingredients, toppings and beverages; and gum and mint refreshment products. Corporate strategy of Hershey is focused to deliver growth and capitalize by diversifying its brand in the global market. Hershey operating model follows a single reportable segment in production and manufacturing, marketing and sales, operations, supply chain and distributing various package types of chocolate and confectionery products, food and beverage enhancers and gum and mint refreshment products under more than 80 brand names. Product advertising is defined as the art of building and ensuring that product awareness stays with potential buyers. A good advertising program aims to make consumers aware of product need, usage of product, customer value and sustainable competitive advantage of a product compared to the competitors. Hershey’s always used appropriate channels like of internet, radio ads in order to ensure to promote customer value and affordability (Chitty, 2011). MARKETING MIX The aim of marketing is to develop customer relationship which evaluates and satisfies need of customers. Marketing also covers aspect of pricing, channels through which products are placed, its distribution, promotion and communication programs to create brand awareness. Over the years, Hershey’s company used considerable ways that enhanced their rela... ... middle of paper ... ...ication program which improves customer loyalty by engaging customers in touch points through channels like broadcast, print, design, interactive, direct, promotions and public relations. These efforts should realize in increased brand equity and market share. Works Cited Keller.K. (2008). Strategic Brand Management, (3rd ed.). New Jersey: prentice Hall Kotler, p & Keller, K. (2006). Marketing Management (12th Ed). New Jersey: Pearson Education, Inc. Solomon, M.R. (2004). Consumer Behavior: Buying, having, and being. (6th Edition). New Jersey: Prentice-Hall Inc. YouTube ad Retrieved from http://www.hersheys.com/chocolateworld/explore-trolley-works McMahon, J. D. (2001). Built on chocolate: The story of the Hershey Chocolate Company. Santa Monica, CA: General Pub. Group. Chitty, W (2011). Integrated marketing communication. South Melbourne, Vic: Cengage Learning.
Zak, L. (2009, 04). Not all's fair in love of chocolate. Food Magazine, Retrieved from http://search.proquest.com/docview/198287549?accountid=12964
Milton S. Hershey was born in a small Pennsylvania town named Derry Township on September 13, 18571. He was the only child of Fannie and Henry Hershey. His mother was a Mennonite2 and moved often, which disrupted his education and could only finish 4th grade3. Hershey became an apprentice of a Lancaster candy maker for four years and started to get into the candy business. Milton opened his first candy store in Philadelphia on 1876 at the age of 184which failed after 6 years and went bankrupt on 1882.5 Milton then tried his luck at opening candy stores at Chicago and New York, both resulting in failure and went bankrupt again on 1886.6 When Milton visited Denver, he discovered how to mix fresh milk with caramel and returned to Lancaster to start a caramel business on 1883. 7his business proved to be a huge success and was named the Lancaster Caramel Company8. The success of this caramel company was the thing that set Milton as a candy maker and provided him with financial stability to start on his next interest, chocolate. Milton purchased his first chocolate-making equipment from a German company called J.M.Lehmamm Company on 1893 that was displayed in the World’s Columbian Expedition9. He started a sub-company called Hershey Chocolate Company under the Lancaster Caramel Company and began to produce chocolates. On 1900, Hershey sold his successful caramel company for $1,000, 0010and in order to set his sights to begin mass-producing chocolate. Hershey needed a place to produce that much chocolate and returned to Derry Township, PA to build his new factory on 1903. The Derry Township was an ideal location for producing chocolate because of its source of water, fresh milk, and workers. The factory, later named The Chocolate Factory was built on 1905 and used latest mass production techniques that produced the first milk chocolate that was made in America 11.
Milton Hershey is best known for being the creator of Hershey’s chocolate. However, he has accomplished more than concocting caramels and candies. Mr. Hershey was a philanthropist, someone who has an aspiration to aid people and end social problems. They do so by donating large amounts of their personal fortune to help people or things, somewhat like a charity, but the purpose is for it to last a long time rather than just for a while. Likewise, Milton Hershey was a caring man who sought to make life better for people, whether they be man, woman, or child.
Market research and information about the industry is very important to the organization because it will allow the organization to position itself well in terms of sourcing chocolate raw materials and in identifying the market for its products. For example, understanding that some chocolate product purchases are seasonal, e.g., at Christmas; around Mother’s Day; and, on Valentine’s Day, allows the organization to have more product on hand and to create displays, in store, that will increase purchases and attract more customers when existing customers tell their friends about the availability of high end products, at reasonable prices, in their store.
You all know the Chocolate Company: Hershey's; but where did it all begin? As with Walt Disney, it started with a dream. A dream that a certain person could rule the candy market. This certain person is Milton Snavely Hershey. Milton Hershey founded Hershey’s Chocolate Company in 1900. Did you know that his first product wasn't chocolate? No, he created and sold many other confections; his greatest being caramel. His highest achievement of all was creating the world's largest candy manufacturing company today. Milton S. Hershey learned most of his work from Joe Royer, the owner of an Ice Cream Parlor and Garden. Joe Royer taught Milton for four years until he quit. Milton didn't quit because he didn't like the apprenticeship. No, he quit to start his own confectionary business. Milton S. Hershey gave this world a company that changed the way we see chocolate today.
It has gotten somewhat easier for people who are not wealthy to keep up with the wealthy. Godiva, the chocolate company, used to only sell its product in upscale stores but now that has changed. According to Jennifer Steinhauer, "Today it is one of those companies whose customers drift in from all points along the economic spectrum. its candy can be found in 2, 500 outlets, including Hallmark cards stores and middle-market department stores like Dillard's." (Steinhauer 2005). People purchase Godiva candy and feel like they have upscale candy not just any old Hershey's bar. Gene Dunkin, president of Godiva North America, says "People want to participate in our brand because we are an affordable luxury. (Steinhauer 2005)" Gene has a point. People want to feel as though what they are buying or "participating in" (as Gene Dunkin would say) is of more value then someone else's' "stuff".
What do the statistics reveal about the product? This reveals that the market for the two products is present, and combining them will result in a profitable business. This paper is a report on targeting and segmenting the new liquor-filled chocolates as a potential business. To begin with, it is crucial to appreciate the meaning of segmentation and targeting, because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product.
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
He was a man full of integrity, sincerity, and character; who changed the lives of many by providing them homes, jobs, and of course the satisfaction from eating a scrumptious creamy milk chocolate bar (Erdman). He is well-known for not only “The Hershey Chocolate Company”, but his own “town of Hershey” (“Milton Hershey” 144). As a philanthropist, entrepreneur, and giver; Milton Hershey created his own American Dream through many failures and perseverance.
During a "chocolate scare" in the early 1970's when the supply of chocolate went way down and the price went way up Hershey's who uses chocolate as a main ingredient more than Mars does had to cut down on spending in some area of business, so they chose to cut down spending on advertising. Mars saw this as an opportunity to spend more money on advertising and even more importantly M&M/Mars saw an opportunity to knock Hershey's out of the #1 spot. M&M's plan was successful, they used very aggressive marketing and they become the #1 chocolate/candy company in America.
Colgate-Palmolive has been a strong force in the oral hygiene industry. The company has many strengths that have contributed to the company’s success. The company has become a global leader with seventy five percent of sales coming from international operations (Colgate, 2011). The company has built strong brand recognition over the years. According to Sekar and Thomas (2008) “brand differentiation is now becoming an important tactic for combating competition in the hostile marketplace.” While price is important, brand is also an important influence for consumers (Chain Drug Review, 2010). Another influence is product positioning. Colgate-Palmolive has been successful in positioning their products in stores and displaying more skus than other brands.
The aim of this report is to present and critically estimate the market strategies of an international and a local chocolate manufacturer in Austria. The analysis is carried out in three stages – macro-environment (PEST analysis), micro-environment (Porter’s Five Forces Model) and company comparison (SWOT analysis). In the end, recommendations are given for the local brand Wiener Schokolade König.
Alan’s Best Chocolates (ABC) is a leading company in the sales of confections and chocolates throughout the United States. The company’s products are sold from 50 stores across the country and maintain a high reputation for superior quality and taste. While the company’s sales have grown over the past ten years, the rate of growth has significantly slowed. One key factor for this slowing rate of growth is the shift in the marketplace to purchasing chocolates and confections online. For a company to succeed, it needs to plan on how to capitalize on this online marketplace by leveraging existing technologies, industry best practices, and aggressive marketing and sales campaign to ramp up the its growth projections for the foreseeable
Several facts are changing in today’s marketing communications. More companies adopt the new concept of integrated marketing communications (IMC) to convey a consistent message about their brand and products. Hence, IMC has played a powerful role and developed into a useful strategy for company to reach more customers and build good customer relationships. According to Herstein et al. (2008), IMC is one of a successful strategy that coordinates and integrates all of marketing communication tools to efficiently and economically influence between an organization and its existing and potential customers. Moreover, marketers can combine IMC tools (advertising, sale promotion, personal selling, direct marketing and public relations) rather than separate practices to create values and avoid potential conflicts (Duncan & Everett, 1993). In fast food industry, fast food chains integrate advertising, sale promotion, sponsorship, packaging and Internet to promote their products as well as build brand image (Sperber, 2003; Story & French, 2004; Morrison, 2010). Advertising is most used form of communication and the most frequently utilized medium due to it easily contact the target market, especially on television advertising (Story & French, 2004; Case, 2007). In addition, simple toys and products are typically used by fast food chains in children’s meal to attract children and adolescents.
Nestle is a Swiss food and beverage Multi-national corporation headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues with about 500 factories in more than 80 countries. The company consists of a powerful portfolio of brands that is driven by unrivalled research and innovation, an aim to contribute to improving the quality of consumers’ lives and a clear commitment to consistence excellence. The company succeeded in accomplishing its mission of “Good Food, Good Life” by making the use of globalization in the areas that are as follows-