Sustainable Management and Company Positioning: A Case Study of Hershey

This paper evaluates the sustainable market position and perceptual positioning of Hershey, the largest chocolate manufacturer in the world. It includes a SWOT analysis, marketing mix, and sustainable marketing principles of the company.

Running head: SUSTAINABLE MANAGEMENT AND COMPANY POSITIONING
SUSTAINABLE MANAGEMENT AND COMPANY POSITIONING
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Marketing Mix of Hershey..............................................................................................................3
Product.........................................................................................................................................3
Price.............................................................................................................................................4
Place.............................................................................................................................................5
Promotion....................................................................................................................................5
SWOT analysis of Hershey.............................................................................................................6
Strengths......................................................................................................................................6
Weaknesses..................................................................................................................................8
Opportunities...............................................................................................................................8
Threats.........................................................................................................................................9
Positional mapping of the selected company.................................................................................10
Sustainable marketing principle of the company...........................................................................11
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

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Topic: Sustainable market position and the perceptual positioning of “Hershey”.
Introduction
Sustainable management is a business form of managing people and provides quality
practice to the stakeholders to manage the sustainability in this globalised world. This is a
relative term that may change in form of the company's situation, perception, condition and
experience in the market, but in case of achieving business goals in long-term viability, the
sustainable situation is needed. The organisation can take care of three main sections of people,
planet and profit. The whole thing of the sustainable market and fair trade products are
influenced by the need of people and their policy to sell to people. The concern matter for the
organisation is to sell their products and the make a sustainable ground for them so that business
goals can be achieved. In case of organisation sustainability, managers ensure the environmental
regulation in the company, sustainable policies and initiatives and building awareness
programmes for the organisation, so that people relate their problem with the initiative and
deliver a moral support to the company.
In this paper, the chosen company is Hershey and the entire situation of business
sustainability will be evaluated by the aspect of the company. This is the largest chocolate
manufacturing company in the world, headquarter is in the United States
(Thehersheycompany.com 2018). The products of the company have been sold more than 60
countries. The increment in revenue is also noticed in 2014 where a sum increase of US$7.420
billion revenue has been generated by the company. Hershey is one of the members of World
Cocoa Foundation and that influences high in term of employees' motivation to deliver quality
chocolate in every time. 15,000 employees are associated with the company and through the

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manufacturing plants; it is easier for the employee to deliver quality products along with that. In
case of companies’ sustainability, quality and development is the most concerning factor for their
perceptual mapping and that will increase their position as well.
Marketing Mix of Hershey
Hershey is the pure cocoa involving products' company that develops their process and
marketing by the use of their field in cocoa. They have stated some good marketing strategies so
that a proactive business analysis can be extracted. The pricing, distribution, advertisement all
these processes help the company to sustain in this competitive market (Welford 2013). The
product, price, promotion and place are the concern aspects of this marketing strategy and
through this strategy, a good recognition can get in the market.
Product
Hershey is one of the most popular brands that offer quality chocolates to their customer.
These products are available in form of different shape and sizes. The quality is same in every
size and people trust over this brand and that can assume the revenue generation of last three or
four years statistics of the company. Innovative products are the USP of the company and
through the promotional strategy they attract customers to them and that signifies their marketing
strategy as well. The conical shape of Hershey kisses and innovative style of packing is the key
deliverable that added extra attraction for people. The hand-rolled packing is one of those that
deliver the innovativeness in the market (Thehersheycompany.com 2018). Iconic brands
accumulation is there and that help to control the product sustainable condition of the company.
In case of kids, the quality of the chocolate is very good, they produce this kind of chocolate
those are delicious as well as healthy for the growing kids. Continuous innovation helps the

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marketing mix for years. Product variations like chocolate, candy, mint & gum, Nuts and
caramel and some other varies if products are available in this business process. In case of every
product sections; there are varieties of components as well as the Chocolate section has York, Kit
Kat, Hershey, Kisses, Take5, Almond joy & Mounds, Reese's and Brookside (Kotabe and Helsen
2014). These products are the most sellable and significant products of the company. Other than
this, there are lots of other products like licorice candy, dark cocoa, soft crèmes candy, hugs
candy, candy bar, snack mix, filled bites candy all these are products also important in case of
marketing. The company commit to the good food and deliver positive aspect for transparent and
open customer policy (Walker and Jones 2012). The products are good from the company
perspective thus it imprinted over the customers for their quality and unique product culture.
Price
The company can sustain in the globalised market as the market strategy of the company
is quite clear. They deliver quality products of chocolate and basically targets upper-middle-class
urban people as the prices of products are little higher. The prices are ranges in between $10 to
$50 and these are from different shapes and sizes of products (Thehersheycompany.com 2018).
The company has invested their money in events, programmes, contact information cases, and in
case of shareholders assimilation. People find the process innovative as the invested materials are
related to their lives so they mentally attach to the company and wish to take some products from
this (Kim, Kim and Kim 2014). This is the marketing policy to get attracted to the customers and
price rate upgradation is the concerning aspect of the company and customers have no problem
with that.

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Place
In grocery shops, drug stores, vending machines, wholesale shops, malls, hospitals, ant
kind of departmental stores in the global basis, Hershey can be available in all the places. Online
purchasing is also important in that case and through the online marketing, more people can
engage with those products. Amazon, eBay, Big basket, and other regional companies of 60
other nations are the controlling the business for them. A huge amount of products are also
available in those portals also (Thehersheycompany.com 2018). Hershey has a strong business
distribution channels as well and through those channels, they can formulate their business.
Promotion
This is one of the significant aspects of marketing as knowing people through different
process s the concern matter for the company. Through Hershey is one of the largest companies
in the world in the aspect of cocoa branding but the company still need promotion for the
development of their market acceleration (Moradi, Aghaie and Hosseini 2015). There are some
commercial promotions of their products that signify the kids' growth and state that through
these products kids can have a good time also. The traditional face of happiness and line vision
to have good customer under their belt is the concerning aspect of the company. They use
television advertisement, billboards, and magazine advertisements are the prime section of their
business promotion and the company doing the same in every country after that. There are
various promotional activities like 4D chocolate mysteries, trolley tours and own candy making
process these are the promotional aspect that encourages the production of the company
(Thehersheycompany.com 2018). In some events, they deliver their products at free for the
promotional purposes. The process of free promotions is also trending Twitter and Facebook as a
promotional strategy.

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SWOT analysis of Hershey
SWOT analysis helps the market orientation of Hershey and delivers the strengths, weaknesses,
opportunity, and threat of the organisation so that market evaluation can be justified.
Strengths
 Hershey is the largest chocolate manufacturer, founded in 1849 and has a huge esteem
and recognition in all over the world. 44.2% of market share is persisted in case of
Hershey and that is highest recorded market share for a company like this
(Thehersheycompany.com 2018).
 The distribution policy of the company is innovative and almost 60 countries they have
formulated their business. The market share of the company is high and the reason
behind that is the distribution channel.
 The innovative chocolate brand is another option for this company. The innovation is
reflected in their products and packaging (Voss, Gammoh and Fang 2012). The
packaging process is innovative for the company and that attracts people in an effective
way.
 Partnership and licensing is another aspect that company should rely on. In the USA,
Hershey partnership with Nestle for the distribution for KitKat is a significant step for
the company to earn more revenue (Kotler 2012).
 The product portfolio of the company is also huge. There are more than 50 product
variants and in each section of variants, some other products are available there. In the
type of chocolate and chocolate-related products, the company is increasing their line of
productivity as well.

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 Hershey uses to complete billion dollar sales in every year and that is the reason the huge
increase in revenue in 2017 has been noticed (Wright, Chew & Hines, 2012). 7.5 billion
dollars accumulated in this year and that signifies their market acceleration.
 Hershey is highly acclaimed in all over the globe. The company stands in 249th place in
Forbes category and in case of the best employee, the company is in 269th place, which is
a remarkable aspect of the company.
Companies Market Share
Hershey 44.2%
Mars 30%
Lindt/ Ghirardelli 9.2%
Nestle 5%
All other 13%
Table 1: Market Share of Hershey and other companies
(Source: Catherwood, Finlay and McLaughlin 2015)
 In case of brand equity, Hershey is ranked as 94th most valued brands in the world. The
brand valuation of the company is $7 billion and the company spends almost 530 million
dollars in a year for the marketing and advertisement. This is a crucial aspect for the
organisation to maintain their brand equity as well.
 The company provides enough involvement for the education of children. They have
own schools and they take the imitative to learn them the basic knowledge. In Ghana, the
company provide the best nutrition for children and that is the concerning aspect of the
company.

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Weaknesses
 The direct purchase method is not used by the organisation and that is the most
concerning factor of the company. Cocoa is not directly purchased by the company;
however fair trade practices are expected from the organisation as well.
 There are some small and medium enterprising companies that cut the market share of the
company (Kizil et al., 2013). Those are mainly from the regional aspect and their
involvement fragmented the company revenue as well.
 The expansion of the company is limited. Implementation of fast moving consumer
goods policy (FMCG) is limited in those 60 countries.
 There is a huge chance of fake products. The products of Hershey are easy to duplicate
and in that case, the parental company is suffering from that case.
Opportunities
 Diversification is the business culture is important for the organisation. In that case,
snack segmentation or introduction of the innovative cakes of pudding may highlight the
brand culture of the company.
 People love the quality delivers by the organisation, that is the reason they need to
expand more than 60 companies and they have that potential to reach that. The scope of
expansion is there and according to the population of countries, they need to segment
their business (Hesselbarth and Schaltegger 2014). In India, the very low footprint is
persisted and they need to make some more innovative process to get more customer
involvement with their company.
 The distribution network needs to be wide and that distribution can make the right pull in
the market (Cantonnet, Aldasoro and Cilleruelo 2015). The chocolate dealing network

9SUSTAINABLE MANAGEMENT AND COMPANY POSITIONING
needs to be proper and that is the reason more opportunity will come in the way of
Hershey.
Threats
 There is some high competition have been noticed from the organisation and the reason
behind the situation is different companies and their promotional strategies. There are
companies like Mars, M&M, and Cadbury, whose have strong brand engagement with
customers.
 Distribution costs, labour cost, fuel cost all these things are increasing and that is the
reason strong competition is persisted in the organisation (Eggebrecht et al., 2014).
 Stopping consumption of sugar and sugar-based products are identifying the health
awareness concept of Hershey. The health awareness process is the concern matter of this
and through this health awareness; other companies are expanding their business.
 Cocoa is the main raw material of the organisation and they need huge consumption for
their products. In most of the cases, the major cost of cocoa varies and that is the concern
threat for the company.

10SUSTAINABLE MANAGEMENT AND COMPANY POSITIONING
Hershey
Nestle
Cadbury
MARS
Low Price
High Price
Low Quality High Quality
Positional mapping of the selected company
Figure 1: Perceptual Map of Hershey
(Source: Created by Author)
From the perceptual mapping, it can be easily understood that Hershey place is much
higher than other companies. There are some other companies as well and through this
competitive analysis, Hershey is much higher in price and quality. The top two competitors are
MARS and Nestle. In between Hershey, the range of products are available and through the
varieties of product more financial gain acclaimed by the Hershey. The product development has
come as the company has taken some innovative policy that encourages more business
engagement in people (Chhabra 2015). The customers are also loyal and their existing behaviour
is the concern reason for the organisation. The technological promotion of the market is the main
concern for the organisation and through this process; Hershey is higher than other companies.

11SUSTAINABLE MANAGEMENT AND COMPANY POSITIONING
Most of the companies are doing decreasing their price for better market engagement like Mars
and this is one such company, who cut down the rate of their products for better market
engagement but the quality offers by the Hershey is the best among them.
Sustainable marketing principle of the company
The marketing principle of the Hershey is consumer moderation and active lifestyle
process. This is considered as general marketing principle and through the advertisement, they
promote their brand. The cultural value of the company is high and they try to avoid social
stereotype process also. The laws and practices are accepted by the company and they indulge
eating habit for children. The variety of high-quality foods are the main USP of their product. In
case of an advertisement, use of children and their parents' involvement is the concerning aspect
for safe and honest approval of the organisation (Thehersheycompany.com 2018). Online and
digital advertisement along with the iconic products and their development is the concerning
aspect of business and accumulation of physical and environmental safety is the concerning
aspect that is beneficial for the organisation growth (Bogueva et al., 2017). The principles also
reflect the positive role models and relationship with customers. Treat and snack diet
maintenance is another principle that they align with the company so that fair trade will be
production.
Conclusion
Therefore, it is concluded that Hershey is one of the biggest food corporations and the
sustainable management of the company is the concerning aspect of their business. Wide
network distribution and the establishment of an innovative process is the concern idea that helps
more business engagement with customers. The marketing mix of the company signifies the

12SUSTAINABLE MANAGEMENT AND COMPANY POSITIONING
positional aspect of the company and that impacted the overall management and to get the good
position in the market.

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