A Study on the Confectionery Industry: Nestle, Cadbury, and Hershey's

This report presents an in-depth analysis of the confectionery industry, fulfilling the requirements of an MBA internship under the University of Kerala. The study, conducted online due to pandemic restrictions, focuses on three major companies: Nestle, Cadbury, and Hershey's. The report's objectives include examining the BCG Matrix, SWOT analysis, Porter's Five Forces, and sales/production within the organizations. The scope encompasses developing conceptual and interpersonal skills while exploring market structures, products, and company locations. The research relies on secondary data, addressing limitations such as the inability to conduct direct communication and data availability constraints. The report traces the evolution and history of confectionery, from ancient times to modern developments, highlighting the influence of consumer habits, technological advancements, and market trends. It also provides insights into the current scenario of the global confectionery market, including revenue forecasts, key drivers (like rising incomes and urbanization), challenges (such as health concerns), and market segmentation. The report concludes with a comprehensive overview of the confectionery industry's past, present, and future, providing valuable insights into its dynamics and competitive landscape.

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1.1 INTRODUCTION OF THE STUDY
An internship is a professional learning experience that offers meaningful, practical work related
to a student's field of study or career interest. An internship gives a student the opportunity for
career exploration and development, and to learn new skills. They are typically undertaken by
students and graduates looking to gain relevant skills and experience in a particular field. An
internship consists of an exchange of services for experience between the intern and the
organization.
Generally the internship is done for acquiring knowledge about an organization or industry. The
internship program is designed to provide students engaged in a field experience with an
opportunity to share their insights, to explore the links between students' academic preparation
and their field work, and to assist participants in developing and carrying out the major research
project which will serve to culminate their internship experience.
It is mandatory to undergo one month internship for the partial fulfilment of Master of Business
Administration under University of Kerala. Due to the pandemic the university has suggested to
complete the internship online by selecting three companies under an industry.
The study is based on confectionery industry, The confectionery industry is a group of large
companies around the world that produce various types of chocolate, chewing gum, and candy as
well as other products made from cocoa. Chocolate, non-chocolate, and chewing gum are the
industry's three main categories. Almost 60% of all confectionery is chocolate.
Confectionery Industry is a branch of the food industry producing confectionery in specialized
factories and in sections of large bread bakeries, canneries, and food combines. The term
confectionary includes cakes, sweet pastries, doughnuts, scones, and cookies etc.
This is a report on the study conducted on:
• Nestle
• Cadbury
• Hershey’s

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1.2OBJECTIVES OF THE STUDY
• To analyse the BCG Matrix,
• To study about the SWOT Analysis
• Porters Five Force Analysis of the industry
• To analyse the sales and production in the organization.
1.3 SCOPE OF THE STUDY
The internship help in developing conceptual skill, inter personnel skill, and encourages the
entrepreneurial capabilities. The companies Cadbury, Nestle and Hershey’s are explained detailed
in this study about their market structure, products and company location.
1.4 DATA SOURCES
The source of data used in this study is secondary data only. Secondary data is the data that have
been already collected by and readily available from other sources.
1.5 LIMITATIONS OF THE STUDY
• The data used were secondary data.
• Direct communication with various departments of the company was not possible due to
current pandemic situation.
• Data collection from individuals on their views and concepts were not identified.
• The data available may be old or out of date.
• Official details were not disclosed due to security issues.
• People’s views and concepts were not identified
2.1 EVOLUTION
Confections refer to food items that are rich in sugar and carbohydrates. It includes a wide range
of products such as chocolates, cookies, bars, gummies, mints, and others. Consumer habits,

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tastes, and preferences are constantly evolving. This has led to innovation in the field of
confectionery that drives the market growth.
Confectionery industry is a branch of food industry producing confectionary in specialized factory
and in sections of large bread bakeries, canneries, and food combines Confectionary is the art of
making confections, which are food items that are rich in sugar and carbohydrates In general,
though; confectionery is divided into two broad and somewhat overlapping categories, baker‗s
confection and sugar confection. Chocolate confections are under separate category as they are
sugar-free versions of sugar confections. The confectionery industry also includes specialized
training schools and extensive historical records. Traditional confectionery goes back to ancient
times and continued to be eaten through the middle ages of modern era.
2.2 HISTORY
It is generally believed that cavemen first established the concept of enjoying a sweet treat.
Perhaps this is where the history of confectionery starts. Much can be learnt from their drawings
which depict men taking honey from beehives and dropping it into their mouths. So given that the
history of sweets and the history of cakes and bakery items are somewhat entangled, it would be
fair enough to suggest that it all started with honey!
Confectionery is the art of making sweets, which are rich in sugar and carbohydrates. Generally,
the confectionery is alienated into two broad categories, i.e., baker’s and sugar confections. Flour
sweets which are also known as baker confections principally include cakes, pastries, sweets,
pancakes, and similar baked goods. On the other side, sugar confectionery includes candies which
are normally called sweets in American and British English and these include candies, chocolates,
gums, sweet tortillas, and other goods made mainly with sugar. Whereas chocolates are sometimes
considered as separate category because they have sugar free versions to suit people with diabetes
and other diseases. The words sweets‘(UK and Ireland), candy (US and Canada), and lollies
(Australia and New Zealand) are the most common varieties of sugar confectionery. The
traditional confectionery of items goes back to early times and is continued to be consumed in the
middle era and as well as in the modern ages.
When refined sugar was not freely available in the market in ancient times, people used honey as
a medium of sweets while making confectionery items. Ancient Egypt, China, India, Greece and

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Rome used honey to coat fruits and flowers to preserve them or creating sweetmeats. Between the
4th and 6th centuries and BC, the Persians, made contact with the Indian subcontinent and its “reeds
that produce honey without bees”. They adopted then sugarcane agriculture which is indigenous
to tropical Indian subcontinent and Southeast Asia.
If we talk about early history of sugar usage in Europe, it was initially the apothecary who had
the most important role in the production of sugar-based preparations. The Medieval European
physicians erudite the medicinal uses of the material from the Byzantine Greeks. One Middle
Eastern remedy for Chills, Rheum’s and Fevers were little, twisted sticks of pulled sugar called
in Arabic al fänäd and these became known in England as aphonics, or more commonly as pennet,
penids, penidia, or pan sugar. They were the precursor of modern cough drops. In 1390, the Earl
of Derby paid “two shillings for two pounds of penydes”. Then Jordan almonds, sugar-coated
nuts or spices for non-medicinal purposes marked the beginning of confectionery in late medieval
England.
2.3 DEVELOPMENT
The world’s first chocolates were crude. Most often chocolate was consumed as a ceremonial
spiced beverage. Modern chocolate is smooth and melty, a testament to modern machinery and
automation. Over 500 years ago, when cacao—the raw material for chocolate— was first
exported to Europe, it was minimally and inconsistently processed.
Market monopolies and vertical integration by large businesses have brought about the modern
chocolates found in convenience stores around the world. Colonization played a huge role in the
development of modern chocolate into this saccharine, global form.
Up until the 1800’s, all chocolate was consumed in beverage form. When cacao beans were
brought to Spain, and later to other parts of Europe, they were brought alongside spices. The
cacao drink continued to be prepared with those spices until the introduction of sugar, which until
then had been mostly used in tea. Adding sugar transformed the flavor of cacao beverages into
something resembling that of modern chocolate.
Unlike the Spanish, the British didn’t do not tend to add spices to their drinks, nor did the French.
The sweetness mellowed out cacao’s harsher flavours and made it more appealing to all
consumers.

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The first chocolate bars were a rudimentary creation, a pressing of cocoa powder, cocoa butter,
and sugar. Eating chocolate as a food brought the flavour of cacao out from under the thumb of
the rich and into the hands of the masses. There weren‗t yet machines which could run for days,
refining the chocolate until smooth. Perhaps there also wasn't much knowledge about how each
of the chocolate processing steps affects flavour.
Some of the most important innovations for developing modern chocolate have been: the
longitudinal conche, powdered milk, cocoa butter press, and standardized post-harvest protocols.
The conche is integral in the chocolate making process, as the machine responsible for taking out
much of the harsh acidity and bitterness which characterizes cacao beans. The cocoa butter press
made it easier to remove the fat from cacao beans, leaving chocolate manufacturers with cacao
butter to sell to the cosmetics industry and cocoa powder to sell to the public. This cocoa powder
was diluted with sugar and milk powder and sold as hot cocoa mix, bringing the diluted flavour
of chocolate to the masses. Chocolate bars continued to get cheaper as cacao cultivation spread
to Africa and Asia, and chocolate companies continued to stretch their cacao with fillers. As
cacao was grown in more parts of the world, the complex processing necessary to fully develop
its flavours didn’t travel with it. Only when large chocolate companies began seeking the highest
quality cocoa at the lowest price did they begin spreading cacao processing protocols. Such
standardized practices are still not commonplace around the world. But even if they don’t do
them, cacao farmers in most countries know about picking only ripe pods, and both fermenting
and drying their cacao. Modern chocolate has one other big helper to thank: sugar. The modern
chocolate industry wouldn’t be possible without contemporaneous innovations in the sugar
industry. The ability to sweeten cacao is one of the most important factors in its palatability and
near-obsession from consumers. When cacao drinks were first sweetened with sugar, it came in
sugar loaves and had to be snipped off and dissolved in a liquid. With the ability to remove more
moisture from sugar, companies could add it to cacao mass without fear of the mass seizing and
thickening. As sugar has been vilified by the media, other sweeteners have stepped in and added
variety to the chocolate industry. Vegan, sugar free, and dairy-free chocolates have opened
chocolate up to most every world market. But recently, market demand has started going back to
its roots. Those first chocolates made in Europe were developed in a very different context. At
the time, the world was still being discovered and many foods were labelled by origin, including
cacaos. The first chocolates in Europe were actually single origin chocolates.

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While traceability in small-batch chocolate making is nothing new, its ethical sourcing definitely
sets it apart from its ancient counterpart. Now a days the chocolate industry is widening with vast
and wide areas it is because the demand for the chocolate products are hugely increasing.
2.4 MOST MODERN SCENARIO
The global confectionery industry revenue is estimated to reach 176 billion US Dollar by 2018
with a CAGR of 3.0% over the next five years. Rising disposable income, increasing awareness
of health and wellness, higher population, and consumer spending are the major industry drivers.
The study provides an overview of the global confectionery market, tracking three market
segments of that industry in four geographic regions. Thus, a total of 12 segments of the global
confectionery industry are tracked. The report studies the manufacturers of chocolate
confectionery, sugar confectionery, and gum, cereal bars and other confectionery. It provides a
five-year annual trend and forecast analysis that highlights market size, profit, and cost structure
as well as opportunities for the regions of North America, Europe, APAC, and Rest of the World.
As per the study, introduction of confectionery categories and new product variants of different
tastes are ensuring higher acceptability of these products. Increasing urbanization, hectic
lifestyles, and more women in the workforce globally are increasing the demand for
confectionery food. The biggest challenges for the industry include health issues, as well as
inflation, employment rate, increasing government regulation, and changing consumer
preferences, among others.
The chocolate segment is forecast to witness the highest growth during 2013-2020. Special
occasions and celebrations are expected to increase confectionery sales. This comprehensive
guide from Lucintel provides readers with valuable information and the tools needed to
successfully drive critical business decisions with a thorough understanding of the market’s
potential. This report will save Lucintel clients hundreds of hours in personal research time on a
global market and it offers significant benefits in expanding business opportunities throughout
the global Confectionery industry analysis.

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In a fast-paced ever-changing world, business leaders need every advantage available to them in
a timely manner to drive change in the market and to stay ahead of their competition. This report
provides business leaders with a keen advantage in this regard by making them aware of emerging
trends and demand requirements on an annual basis.

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COMPAY PROFILE

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3.1 NESTLE
Nestlé S.A. Is a Swiss multinational food and drink processing conglomerate corporation
headquartered in Vevey, Vaud, Switzerland. Nestle was formed in 1905 by the merger of the
Anglo-Swiss Milk Company, established in 1866 by brothers George and Charles Page, and
FarineLactee Henri Nestle, founded in 1866 by Henri Nestle. The company grew significantly
during the First World War and again following the Second World War, expanding its offerings
beyond its early condensed milk and infant formula products. The company has made a number
of corporate acquisitions, including Crosse & Blackwell in 1950, Findus in 1963, Libby's in 1971,
Rowntree Mackintosh in 1988, Klim in 1998, and Gerber in 2007.
Nestle is the largest food company in the world, measured by revenues and other metrics, since
2014. It ranked No. 64 on the Fortune Global 500 in 2017and No. 33 on the 2016 edition of the
Forbes Global 2000 list of largest public companies. Nestlé's products include baby food, medical
food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream,
frozen food, pet foods, and snacks. Twenty-nine of Nestlé's brands have annual sales of over
CHF1 billion including Nespresso, Nescafé, Kit Kat, Smarties, Nesquik, Stouffer's, Vittel, and

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Maggi. Nestlé has 447 factories, operates in 189 countries, and employs around 339,000 people.
It is one of the main shareholders of L'Oreal, the world's largest cosmetics company.
 Founding and early years
The company's name was meant to flatter the British, to whom Page hoped to sell a great deal of
his condensed milk. Anglo-Swiss first expanded its operations beyond Switzerland's borders in
1872, when it opened a factory in Chippenham, England. Condensed milk rapidly became a staple
product in European cupboards—the business downturn in 1872 and the depression of 1875 did
not affect the firm's sales. Charles Page died in 1873, leaving the company in the hands of his
brother George and Anglo-Swiss's other investors. The next year, Anglo-Swiss undertook further
expansion in England by purchasing the Condensed Milk Company in London. By 1876 sales were
almost four times their 1872 level. Meanwhile, in Vevey, Switzerland, in 1867 Henri Nestlé began
selling his newly developed cow's-milk food for infants who could not be breastfed. Demand for
his FarineLactée Nestlé soared. Between 1871 and 1873, daily production more than doubled, from
fewer than 1,000 tins a day to 2,000. Nestlé's goal was to bring his baby food within everyone's
reach, and he spared no effort in trying to convince doctors and mothers of its benefits. But while
his energy and good intentions were nearly endless, his financial resources were not. By 1873,
demand for Nestlé's product exceeded his production capabilities, resulting in missed delivery
dates. At 61, Nestlé was running out of energy, and his thoughts turned to retirement. Jules
Monnerat, a former member of parliament who lived in Vevey, had long eyed the business, and in
1874 Nestlé accepted Monnerat's offer of CHF 1 million. Thus, in 1875, the company became
FarineLactée Henri Nestlé with Monnerat as chairman. In 1877 Nestlé faced a new competitor
when the Anglo-Swiss Condensed Milk Company—already the leading manufacturer of
condensed milk in Europe—decided to broaden its product line and manufacture cheese and milk
food for babies. Nestlé quickly responded by launching a condensed milk product of its own.
George Page tried to buy the competing company outright, but he was firmly told that Nestlé was
not for sale. Turning his attention elsewhere, he purchased the Anglo-Swiss Company's first
factory in the United States in 1881.. Two years later, in 1900, Nestlé opened a factory in the
United State , and quickly followed this by entering Germany and Spain. Early in the 1900s, Nestlé
also became involved in chocolate, a logical step for a company based in Vevey, the center of the

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Swiss chocolate industry. Nestlé became a partner in the Swiss General Chocolate Company, the
maker of the Peter and Kohler brands. Under their agreement, the chocolate company produced
the first Nestlé brand milk chocolate, while Nestlé concentrated on selling the Peter, Kohler, and
Nestlé brands around the world.
 Merger of Nestlé and Anglo-Swiss in 1905
In 1905 Nestlé and the Anglo-Swiss Condensed Milk Company finally quelled their fierce
competition by merging to create the Nestlé and Anglo-Swiss Milk Company. The new firm would
be run by two registered offices, one in Vevey and one in Cham. With Emile-Louis Roussy as
chairman, the company now included seven factories in Switzerland, six in Great Britain, three in
Norway, and one each in the United States, Germany, and Spain.
Most of its factories were located in Europe, however, and when World War I broke out in 1914,
Nestlé's operations, particularly in such warring countries as Britain and Germany, were seriously
affected. Although production continued in full force during the early months of the war, business
soon grew more difficult. By 1916 fresh milk shortages, especially in Switzerland, meant that
Nestlé's factories often sold almost all of their milk supplies to meet the needs of local towns.
Shipping obstacles, increased manufacturing and operating costs, and restrictions on the use of
production facilities added to Nestlé's wartime difficulties, as did a further decrease in fresh milk
supplies due to shortages of cattle.
To deal with these problems and meet the increased demand for its products from governments
supplying their troops, Nestlé decided to expand in countries less affected by the war and began
purchasing existing factories, particularly in the United States, where it established links with
several existing firms. By 1917 Nestlé had 40 factories, and in 1918, its world production was
more than double what it was in 1914. Nestlé pursued the same strategy in Australia; by 1920 it
had acquired a controlling interest in three companies there. That same year, Nestlé began
production in Latin America when it established a factory in Araras, Brazil, the first in a series of
Latin American factories. By 1921, the firm had 80 factories and 12 subsidiaries and affiliates. It
also introduced a new product that year—powdered milk called Lactogenic did not take long for
the effects of such rapid expansion to catch up with the company, however. Nestlé and AngloSwiss

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reported its first loss in 1921, to which the stock market reacted with panic, making matters worse.
The company explained that the CHF 100 million loss was due to the rising prices of raw materials
such as sugar and coal, and a trade depression that had caused a steady fall in consumer purchasing
power, coupled with falling exchange rates after the war, which forced the company to raise prices.
Overall, the late 1920s were profitable, progressive times. In addition to adding some new products
of its own—including malted milk, a powdered beverage called Milo, and Eledon, a powdered
buttermilk for babies with digestive disorders—the company bought interests in several
manufacturing firms. Among them were butter and cheese companies, as well as Sarotti A.G., a
Berlin-based chocolate business that began manufacturing Nestlé, Peter, Cailler, and Kohler
chocolate. In 1928, under the direction of Chairman Louis Dapples, Nestlé finally merged with
Peter, Cailler, Kohler, ChocolatsSuisses S.A.—the resulting company of a 1911 merger between
the Swiss General Chocolate Company and Cailler, another leading firm—adding 13 chocolate
plants in Europe, South America, and Australia to the growing firm.
 Expansion During the great depression
Nestlé was becoming so strong that it seemed even the Great Depression would have little effect
on its progress. In fact, its U.S. subsidiary, Nestlé's Food Company Inc. of New York, barely felt
the stock market crash of 1929. In 1930 Nestlé created new subsidiaries in Argentina and Cuba.
Despite the Depression, Nestlé added more production centers around the world, including a
chocolate manufacturer in Copenhagen and a small factory in Moravia, Czechoslovakia, to
manufacture milk food, Nescao, and evaporated milk. Factories were also opened in Chile and
Mexico in the mid-1930s.
While profits were down 13 percent in 1930 over the year before, Nestlé faced no major financial
problems during the Depression, as its factories generally maintained their output and sales were
steady. Although Nestlé'sNew York-based subsidiary, renamed Nestlé's Milk Products Company,
was more affected than those in other countries, U.S. sales of milk products were steady until 1931
and 1932, when a growing public frugality began to cause trouble for more expensive but
established brands such as Nestlé's. Profit margins narrowed, prices dropped, and cutthroat
competition continued until 1933, when new legislation set minimum prices and conditions of
sales.

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Decentralization efforts begun during the Depression continued to modify the company's structure
gradually. By 1936, the industrial and commercial activity of the Nestlé and AngloSwiss
Condensed Milk Company itself was quite limited in comparison with the considerable interests it
had in companies manufacturing and selling its products. More than 20 such companies existed on
five continents. In effect, the firm had become a holding company. Consequently, the Nestlé and
Anglo-Swiss Condensed Milk Company Limited was established to handle production and
marketing on the Swiss market; the parent company officially became a holding firm, called the
Nestlé and Anglo-Swiss Holding Company Ltd.; and a second holding company, Unilac Inc., was
created in Panama by a number of Nestlé's overseas affiliates
 Nescafé Instant Coffee Debuting in 1938
In 1937 Louis Dapples died, and a new management team, whose members had grown up with the
organization, took over. The team included Chairman Edouard Muller, formerly managing
director; Carl J. Abegg, vice-chairman of the board; and Maurice Paternot , managing director. In
1938 Nestlé introduced its first non-milk product: Nescafé. The revolutionary instant coffee was
the result of eight years of research, which had begun when a representative of the Brazilian Coffee
Institute asked Louis Dapples if Nestlé could manufacture "coffee cubes" to help Brazil use its
large coffee surplus. Although coffee crystals and liquid extracts had been tried before, none had
satisfactorily preserved a coffee taste.
Nestlé's product took the form of a soluble powder rather than cubes, allowing users to control the
amount of coffee they used. Although Nestlé originally intended to manufacture Nescafé in Brazil,
administrative barriers were too great, so Nescafé was first manufactured in Switzerland. Limited
production capacity meant that it was launched without the elaborate marketing tactics usually
used for products with such potential.
Nescafé quickly acquired a worldwide reputation, however, after it was launched in 1939 in the
United States, where it did exceptionally well. Nestea, a soluble powdered tea, also made a
successful debut in the early 1940s.
But the war was not all bad for Nestlé. When the United States became involved in 1941, Nescafé
and evaporated and powdered milk were in heavy demand from American armed forces. Nestlé's

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total sales jumped from $100 million before the war to $225 million in 1945, with the greatest
increase occurring in North America, where sales went from $14 million to $60 million. With the
end of the war, Nestlé's European and American branches were able to discuss future plans without
fear of censorship, and the company could begin to face the challenge of rebuilding its war-torn
subsidiaries. Nestlé also relaunched Nescafé and baby foods and began to research new products
extensively. Researchers focused on the three areas Nestlé considered most likely to affect the food
industry's future: an increase in world population, rising standards of living in industrialized
countries, and the changing social and economic conditions of raw material-producing countries.
 Postwar Growth Through Merger and Acquisition
In 1947 Nestlé merged with Alimentana S.A., the manufacturer of Maggi seasonings, bouillon,
and dehydrated soups, and the holding company changed its name to Nestlé Alimentana Company.
Edouard Muller became the first chairman of Nestlé Alimentana, but he died in 1948, before the
policies he helped formulate put the company on the road to a new future. Carl Abegg assumed
leadership of the board.
In 1950 Nestlé acquired Crosse and Blackwell, a British manufacturer of preserves and canned
foods. Nestlé hoped its $24 million investment would serve as a marketing outlet for Maggi
products, but the plan was less than successful, primarily because Crosse and Blackwell could not
compete in the United Kingdom withH.J. Heinz Company. Similar setbacks occurred in 1963,
when Nestlé acquired Findus frozen foods in Scandinavia for $32 million. Although the company
performed well in Sweden, it encountered difficulties in other markets, where the British-Dutch
giant Unilever reigned. While parts of the Findus operation eventually became profitable, Nestlé
merged its German, Italian, and Australian Findus branches with Unilever. The development of
freeze-drying in 1966 led to Taster's Choice, the first freeze-dried coffee, as well as other instant
drinks.
In 1971 Nestlé acquired Libby, a maker of fruit juices, in the United States, and in 1973 it bought
Stouffer's, which took Nestlé into the hotel and restaurant field and led to the development of Lean
Cuisine, a successful line of low-calorie frozen entrees. Nestlé entered the non-food business for
the first time in 1974 by becoming a major shareholder in the French company L'Oréal, a leading
cosmetics company. Nestlé diversified further in 1977 with the acquisition of Alcon Laboratories,

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aFort Worth, Texas, pharmaceutical company that specialized in ophthalmic products. Then, two
years later, Nestlé purchased Burton, Parsons and Company Inc., an American manufacturer of
contact lens products. The company adopted its present name— Nestlé S.A.—in 1979.
 Facing Boycott in Late 1970s and Early 1980s
The 1970s saw Nestlé's operations in developing countries increase considerably. Of Nestlé's 303
manufacturing facilities, the 81 factories in developing nations contributed 21 percent of Nestlé's
total production. In the mid-1970s, however, the firm faced a new problem as a result of its
marketing efforts in these countries, when a boycott against all Nestlé products was started in the
United States in 1977. Activists claimed that Nestlé's aggressive baby food promotions made
mothers in developing countries so eager to use Nestlé's formula that they used it any way they
could. The poverty-stricken areas had high rates of illiteracy, and mothers, unable to read and
follow the directions, often mixed the product with local polluted water or used an insufficient
amount of the expensive formula, unwittingly starving their infants. Estimates of Nestlé's losses as
a result of the boycott, which lasted until the early 1980s, ranged as high as $40 million.
In 1981 Helmut Maucher became managing director of Nestlé and made this controversy one of
his top priorities. He met with boycott supporters and complied with the World Health
Organization’s demands that Nestlé stop promoting the product through advertising and free
samples. His direct confrontation of the issue contrasted with Nestlé's earlier low-profile approach
and was quite successful in allaying its critics' fears.
 Series of Major Acquisitions in the Later 1980s
Maucher also reduced overhead by turning over more authority to operating units and reducing
headquarters staff. In addition, he spearheaded a series of major acquisitions. In 1985 Nestlé
acquired Carnation, a U.S. manufacturer of milk, pet, and culinary products, for $3 billion, at the
time one of the largest acquisitions in the history of the food industry. This was followed in 1985
by the acquisition of Hills Brothers Inc., the third largest U.S. coffee firm, which added ground
roast coffee to Nestlé's product line. In the late 1980s, as food companies around the world prepared
for the integration of the European Community in 1992, Nestlé continued to make major
acquisitions. In 1988 the company paid £2.55 billion ($4.4 billion) for Rowntree Mackintosh
PLC—a leading British chocolate manufacturer—marking the largest takeover of a British

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company by a foreign one to date. That same year Nestlé also purchased the Italian pasta maker
BuitoniSpA.
In September 1991 Nestlé and The Coca-Cola Company formed a 50–50 joint-venture, Coca-Cola
Nestlé Refreshment Company, to produce and distribute concentrates and bases for the production
of ready-to-drink coffee and tea beverages. With an initial capitalization of $100 million the
products, to be sold under the Nescafé and Nestea brand names, would be marketed worldwide
save for Japan, primarily through Coca-Cola's international network of businesses.
Nescafé, sold in more than 100 countries by 1991, was launched in the Republic of Korea— Coca-
Cola and Nestlé's first joint endeavour—as was Nescafé Cappuccino in Europe. Hills Bros.
"Perfect Balance," a 50 percent-decaffeinated coffee, began selling in the United States, as did
Nestea in cans at the beginning of 1992. By early 1992, a joint venture allowed the company to
obtain a majority interest in Cokoladovny, a Czechoslovakian chocolate and biscuit producer. In
addition, Nestlé in 1992 battled for and won, with a bid of $2.3 billion in cash, the French mineral
water producer Source Perrier, though European regulators forced Nestlé to sell off some Perrier
brands. That same year Nestlé took nearly full control of another mineral water concern, Vittel.
Nestlé had acquired a 30 percent stake in Vittel in 1969, a move marking the company's first foray
into mineral water.
 Reemphasis on Core Food Area in Later 1990s
As the 1990s continued, Nestlé recommitted itself to its core food products area, never having been
able to grow its health-care and cosmetics sectors into significant parts of the overall business. The
company sold off some of its health and beauty interests, retaining Alcon and the minority holding
in L'Oréal—it still hoped to gain full control of the latter, which was privately controlled. Nestlé
made other divestments as well, including Wine World Estates, a group of northern California
wineries (sold in 1995); canned beans and pasta operations in Canada, a fresh meat business in
Germany, and cold meat operations in Sweden (1996); Contadina canned tomato products in the
United States, Sarotti chocolate and Dany sandwiches in Germany, and Locatelli brand cheeses in
Italy (1997); and Libby's canned meat products, which were sold to International Home Foods for
$126 million in 1998. Acquisitions in the mid-to-late 1990s centred around mineral water, ice
cream, and pet foods. In 1993 Nestlé purchased mineral water brands in the United States (Deer
Park and Utopia) and Italy (Vera and San Bernardo), as well as ice cream brands in Italy, the

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Philippines, and South Africa. Added in 1994 were the Alpo pet food company in the United States
and Warnke ice creams in Germany; the company also gained a majority stake in chocolate maker
Goplana S.A. in Poland. Still further expansion of the ice cream sector came in 1995 with the
purchase of Conelsa, the leader in the Spanish market; the chilled dairy products division of Pacific
Dunlop in Australia; and Dolce S.A.E., the leading maker of ice cream in Egypt. That year Nestlé
also acquired Ortega, a leading brand of Mexican food products in the United States. In 1997 Nestlé
entered the Canadian ice cream market through the purchase of Ault and Dairy World, giving the
company a 40 percent market share. In early 1998 Nestlé took full control of the San Pellegrino
mineral water group and acquired Klim milk powders and Cremora coffee creamers from Borden
Brands International. Also in 1998 the company secured the number two position in the European
pet food market, trailing only Mars, through the £715 million ($1.2 billion) purchase of the Spillers
pet food business of Dalgety PLC.
Nestlé announced that Maucher would retire as chairman by the spring of 2000, being replaced by
Rainer Gut, then chairman of the Credit Suisse Group . Nestlé's aggressive marketing of infant
formula once again became an issue in 1997 when a report called Cracking the Code was issued
by the Interagency Group on Breastfeeding Monitoring (IGBM), which had conducted research in
Bangladesh, Poland, South Africa, and Thailand. The IGBM concluded that several companies,
including Nestlé, were in violation of the World Health Organization's International Code of
Marketing of Breastmilk Substitutes, which had been adopted in 1981. According to the report
Nestlé's code violations included supplying pregnant women and health workers with materials
that promoted formula feeding but did not emphasize the superiority of breast-feeding over
formula, and distributing free samples. Nestlé countered by calling the report biased and flawed,
and by eliciting a response critical of Cracking the Code from an independent marketing research
consultant.
At the dawn of the 21st century, Nestlé had about 500 factories in more than 78 countries, boasted
sales exceeding CHF 70 billion, and was the undisputed leader in the food industry worldwide. Its
portfolio included more than 8,500 brands. The company had set a goal of achieving 4 percent
underlying sales growth each year, but failed to meet this target for 1998, largely because of
economic downturns in southeast Asia, Latin America, and Eastern Europe.
 Consolidation and Expansion in the Early 21st Century

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It took several years before the character of the Brabeck-Letmathe era of leadership revealed itself.
Initially, Brabeck-Letmathe managed the company in a fashion similar to his predecessor,
Maucher. The pair, in fact, had agreed on a list of characteristics to remain unaltered during the
two reigns of command, but after several years at the helm, Brabeck-Letmathe realized he needed
to break the covenant, making one sweeping change in particular. Maucher had insisted that Nestlé
retain its decentralized structure as a way to cater to local markets and tastes (Nestlé, for example,
produced 200 different formulations of Nescafé), but Brabeck-Letmathe saw the company
becoming uncompetitive so he began to consolidate its operations. The management of factories,
which historically had been divided country by country, was broken into regional divisions.
Further, products that were similar were organized into strategic business units, adding more
cohesion to the operation of Nestlé's global business.
As Nestlé pressed forward under the leadership of Brabeck-Letmathe, the company plotted a future
course that distinguished it from its rivals. Rival food conglomerates such as Unilever and Danone
focused on narrowing their strategic focus, shedding businesses in an effort to increase their profit
margins. Unilever, for example, shuttered more than 100 of its factories and reduced the number
of its brands from 1,600 to 400 during the first three years of the decade. Nestlé chose a different
path for its future, promising to get bigger as the years passed, emphasizing growth in areas
designed to transform it from a food company into a food, health, and wellness company with a
deeper involvement in nutritional products. Growth in this direction promised to be the legacy of
Brabeck-Letmathe's tenure. The influence of his leadership was expected to increase as he
completed his first decade of stewardship. In early 2005, Brabeck-Letmathe was named chairman
of Nestlé, giving him the two most powerful positions at one of the largest companies in the world.
PRODUCTS
Nestlé owns over 2000 brands in 186 countries. Brands in this list are categorized by their targeted
markets. Including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant
foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and refrigerated
foods, andpet food. In 2019, the company entered the plant-based food production business with
its Incredible and Awesome Burgers (under the Garden Gourmet and Sweet Earth brands). In 2020,

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Nestlé announced additional plant-based products including soybased bratwurst and chorizo-like
sausages.
MARKETING STRATERGY
Nestle aim to offer a portfolio of products that evolve with consumer needs, offer good nutrition
and delight the senses, contributing to healthier, balanced lives and a healthier planet. This guides
the choices we make today and shapes our portfolio for tomorrow.
Good food, Good life is best delivered by;
• Applying our nutrition expertise to enhance the health and wellness of people and pets.
• Meeting the needs of the modern consumer with healthy, delicious, convenient products
for conscious, time-constrained lifestyles.
• Bringing premium food innovations to market fueled by consumer insights, pioneering
nutrition science, and culinary excellence. Offering a wide array of plant based foods, to
be consumer‘s preferred choice as they diversify their diets.
• Using our scale and expertise to increase access to nutrition for everyone, everywhere.
The long-term value creation model is based on the balanced pursuit of resources efficient
top –and bottom – line growth as well as improved capital efficiency.
The values are created by;
• Increasing growth through innovation, differentiation and by offering relevant products and
solutions to our consumers.
• Improving operational efficiency with the goal to increase our underlying trading operating
profit margin.
Nestle care about people and provides water treatment. Because of good water quality in the areas
surrounding the plants it provides direct benefits for business, society and the environment all there
water is treated in wastewater treatment plants. Their preference is to use municipal wastewater

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plants to ensure the return of only cleaned water back into the environment, but where these are
insufficient; we invest in our own on-site facilities.

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3.2 CADBURY
Cadbury, formerly Cadbury's and Cadbury Schweppes, is a British multinational confectionery
company wholly owned by Mondelez International (originally Kraft Foods) since 2010. It is the
second largest confectionery brand in the world after Mars. Cadbury is internationally
headquartered in Uxbridge, west London, and operates in more than 50 countries worldwide. It is
known for its Dairy Milk chocolate, the Creme Egg and Roses selection box, and many other
confectionery products. One of the best-known British brands, in 2013 The Daily Telegraph named
Cadbury among Britain's most successful exports.
Cadbury was established in Birmingham, England in 1824, by John Cadbury who sold tea, coffee
and drinking chocolate. Cadbury developed the business with his brother Benjamin, followed by
his sons Richard and George. George developed the Bournville estate, a model village designed to
give the company's workers improved living conditions. Dairy Milk chocolate, introduced in 1905,
used a higher proportion of milk within the recipe compared with rival products. By 1914, the
chocolate was the company's best-selling product. Cadbury, alongside Rowntree's and Fry's, were
the big three British confectionery manufacturers throughout much of the nineteenth and twentieth
centuries.
Cadbury was granted its first Royal Warrant from Queen Victoria in 1854. It has been a holder of
a Royal Warrant from Elizabeth II since 1955. Cadbury merged with J. S. Fry & Sons in 1919, and
Schweppes in 1969, known as Cadbury Schweppes until 2008, when the American beverage
business was split as Dr Pepper Snapple Group; the rights ownership of the Schweppes brand had
already differed between various countries since 2006. Cadbury was a constant constituent of the
FTSE 100 on the London Stock Exchange from the index's 1984 inception until the company was
bought by Kraft Foods in 2010.

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Cadbury has been a holder of a Royal Warrant from Queen Elizabeth II since 1955. In 1967,
Cadbury acquired an Australian confectioner, MacRobertson's, beating a rival bid from Mars. As
a result of the takeover, Cadbury built a 60 percent market share in the Australian market.
 1800-1900: Early history
In 1824, John Cadbury, a Quaker, began selling tea, coffee and drinking chocolate in Bull Street
in Birmingham, England. From 1831 he moved into the production of a variety of cocoa and
drinking chocolates, made in a factory in Bridge Street and sold mainly to the wealthy because of
the high cost of production. In 1847, John Cadbury became a partner with his brother Benjamin
and the company became known as "Cadbury Brothers". In 1847, Cadbury's competitor Fry's of
Bristol produced the first chocolate bar (which would be mass-produced as Fry's Chocolate Cream
in 1866). Cadbury introduced his brand of the chocolate bar in 1849, and that same year, Cadbury
and Fry's chocolate bars were displayed publicly at a trade fair in Bingley Hall, Birmingham. The
Cadbury brothers opened an office in London, and in 1854 they received the Royal Warrant as
manufacturers of chocolate and cocoa to Queen Victoria. The company went into decline in the
late 1850s. 1891 advertisement John Cadbury's sons Richard and George took over the business in
1861. At the time of the takeover, the business was in rapid decline: the number of employees had
reduced from 20 to 11, and the company was losing money.
Manufacturing their first Easter egg in 1875, Cadbury created the modern chocolate Easter egg
after developing a pure cocoa butter that could be moulded into smooth shapes. By 1893, Cadbury
had 19 different varieties of chocolate Easter egg on sale.
In 1878, the brothers decided to build new premises in countryside four miles from Birmingham.
The move to the countryside was unprecedented in business. Better transport access for milk that
was inward shipped by canal, and cocoa that was brought in by rail from London, Southampton
and Liverpool docks was taken into consideration. With the development of the Birmingham West
Suburban Railway along the path of the Worcester and Birmingham Canal, they acquired the
Bournbrook estate, comprising 14.5 acres (5.9 ha) of countryside 5 miles (8.0 km) south of the
outskirts of Birmingham. Located next to the Stirchley Street railway station, which itself was
opposite the canal, they renamed the estate Bournville and opened the Bournville factory the
following year.

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In 1893, George Cadbury bought 120 acres (49 ha) of land close to the works and planned, at his
own expense, a model village which would 'alleviate the evils of modern more cramped living
conditions'. By 1900 the estate included 314 cottages and houses set on 330 acres (130 ha) of land.
As the Cadbury family were Quakers there were no pubs in the estate.
In 1897, following the lead of Swiss companies, Cadbury introduced its own line of milk chocolate
bars. In 1899 Cadbury became a private limited company.
 1900-1969
Cadbury launched its Dairy Milk bar, a production of exceptional quality with a higher proportion
of milk than previous chocolate bars. Developed by George Cadbury Jr, it was the first time a
British company had been able to mass-produce milk chocolate. From the beginning, it had the
distinctive purple wrapper. It was a great sales success, and became the company's best selling
product by 1914. The stronger Bournville Cocoa line was introduced in 1906. Cadbury Dairy Milk
and Bournville Cocoa were to provide the basis for the company's rapid pre-war expansion. In
1910, Cadbury sales overtook those of Fry for the first time.
Cadbury's Milk Tray was first produced in 1915 and continued in production throughout the
remainder of the First World War. More than 2,000 of Cadbury's male employees joined the British
Armed Forces, and to support the British war effort, Cadbury provided chocolate, books and
clothing to the troops. George Cadbury handed over two company-owned buildings for use as
hospitals – "The Beeches" and "Fircroft", and the management of both hospitals earned the War
Office's highest award. Factory girls, dubbed 'The Cadbury Angels', volunteered to do the laundry
of injured soldiers recovering in the hospitals. After the war, the Bournville factory was
redeveloped and mass production began in earnest. In 1918, Cadbury opened their first overseas
factory in Hobart, Tasmania. Cadbury Wharf, Knighton, Staffordshire. It was operated by Cadbury
between 1911 and 1961 to process locally collected milk and produce "chocolate crumb" which
was transported to Cadbury's in Bournville. In 1919, Cadbury merged with J. S. Fry & Sons,
another leading British chocolate manufacturer, resulting in the integration of wellknown brands
such as Fry's Chocolate Cream and Fry's Turkish Delight. In 1921, the many small Fry's factories
around Bristol were closed down, and production was consolidated at a new Somerdale Factory,
outside Bristol.

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Cadbury expanded its product range with Flake (1920), Creme eggs (1923), Fruit and Nut (1928),
and Crunchie (1929, originally under the Fry's label). By 1930, Cadbury was the 24thlargest British
manufacturing company as measured by estimated market value of capital. Cadbury took direct
control of the under-performing Fry in 1935. Dairy Milk Whole Nut arrived in 1933, and tins of
Roses were introduced in 1938. Roses has become a very popular Christmas (and Mother's Day)
gift.
Chocolate ceased to be a luxury product and became affordable to the working classes for the first
time. By the mid-1930s, Cadbury estimated that 90 percent of the British population could afford
to buy chocolate. By 1936, Dairy Milk accounted for 60 percent of the UK milk chocolate market.
During World War II, parts of the Bournville factory were turned over to war work, producing
milling machines and seats for fighter aircraft. Workers ploughed football fields to plant crops. As
chocolate was regarded as an essential food, it was placed under government supervision for the
entire war. The wartime rationing of chocolate ended in 1950, and normal production resumed.
Cadbury subsequently invested in new factories and had an increasing demand for their products.
In 1952 the Moreton factory was built.
 2007-2010
In October 2007, Cadbury announced the closure of the Somerdale Factory, in Keynsham,
Somerset, formerly part of Fry's. Between 500 and 700 jobs were affected by this change.
Production transferred to other plants in England and Poland.
In 2008, Monkhill Confectionery, the Own Label trading division of Cadbury Trebor Bassett was
sold to Tangerine Confectionery for £58 million cash. This sale included factories at Pontefract,
Cleckheaton and York and a distribution centre near Chesterfield, and the transfer of around 800
employees.
In mid-2009, Cadbury replaced some of the cocoa butter in their non-UK chocolate products with
palm oil. Despite stating this was a response to consumer demand to improve taste and texture,
there was no "new improved recipe" claim placed on New Zealand labels. Consumer backlash was
significant from environmentalists and chocolate lovers in both Australia and New Zealand, with

25
consumers objecting to both the taste from the cheaper formulation, and the use of palm oil given
its role in the destruction of rainforests. By August 2009, the company announced that it was
reverting to the use of cocoa butter in New Zealand and Australia, although palm oil is still listed
as an ingredient in Cadbury's flavoured sugar syrup based fillings (where it referred to as 'vegetable
oil'). In addition, Cadbury stated they would source cocoa beans through Fair Trade channels. In
January 2010 prospective buyer Kraft pledged to honour Cadbury's commitment.
PRODUCTS
Its products include Cadbury Dairy Milk, Dairy Milk Silk, Bournville, Temptations, Perk, Eclairs,
Bournvita, Celebrations, Gems, Bubbaloo, Cadbury Dairy Milk Shots, Toblerone, Halls, Bilkul,
Tang, and Oreo. It is the market leader in the chocolate confectionery business with a market share
of over 70%.
MARKET STRUCTURE
Cadbury consists of 70% market share all over the world. The dairy milk chocolate alone has
accounted for 30% of market. Besides, research also found out that an estimated number for
chocolate bars are sold in every year consists of 120 billion and about 60 million of these are
manufactured by Cadbury. Cadbury then becomes the second largest confectionery company in
the world. Cadbury operates in a monopolistic competitive market structure in which they have
been able to maintain a control over their inflated prices. With usage of the Cadbury logo, quality,
and various trademarks, they differentiate their chocolates from their competitors.
Cadbury understands the concepts of brand identity and product differentiation which is a reason
why Cadbury has become the second largest confectionery company all over the world.
Monopolistic competitive firms, like Cadbury are driven by mass advertising and the establishment
of brand names and logos. There are many other brands of confectionery products on the market
that also offer same flavor and same price, but the advertising of Cadbury attracts all major part of
population. Cadbury attracts their customers over their competitors by their creative designed
advertisement campaigns. This is the reason why Cadbury is able to create an array of loyal buyers.

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3.3 HERSHEY’S
The Hershey Company, commonly known as Hershey‗s, is an American multinational company
and one of the largest manufacturer in the world. It also manufactures baked products, such as
cookies, cakes, milk shakes, drinks and many more that are produced globally. Its headquarters are
in Hershey, Pennsylvania, which is also home Hershey park and Hershey‗s chocolate world. It
was founded by Milton S. Hershey in 1894 as the Hershey Chocolate Company, a subsidiary of
his Lancaster Caramel Company. The Hershey trust company owns a minority stake, but retains a
majority of the voting power within the company.
HISTORY
After an apprenticeship to a confectioner in 1873, Milton S. Hershey founded a candy shop in
Philadelphia. This candy shop was only open for six years, after which Hershey apprenticed with
another confectioner in Denver, where he learned to make caramel. After another failed business
attempt in New York, Hershey returned to Pennsylvania, where in 1886 he founded the Lancaster
caramel company. The use of fresh milk in caramels proved successful, and in 1900, after seeing
chocolate-making machines for the first time at the 1893 world‗s Columbian Exposition in
Chicago, Hershey sold his caramel company, and began to concentrate on chocolate
manufacturing, stating to people who questioned him, "Caramels are just a fad, but chocolate is a
permanent thing."
In 1896, Hershey built a milk-processing plant so he could create and refine a recipe for his milk
chocolate candies. In 1899, he developed the Hershey process, which is less sensitive to milk

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quality than traditional methods. In 1900, he began manufacturingHershey's Milk ChocolateBars,
also known as Hershey's Bars or Hershey Bars.
 Expansion
In 1903, Hershey began construction of a chocolate plant in his hometown of Derry Church,
Pennsylvania, later known as Hershey, Pennsylvania.[13]The town was an inexpensive place for the
workers and their families to live, though the factory was built without windows, so that employees
would not be distracted. To increase employee morale, Hershey provided leisure activities and
created what would later becomeHersheypark. The milk chocolate bars from this plant proved
popular, and the company grew rapidly.
In 1907, he introduced a new candy: bite-sized, flat-bottomed, conical pieces of chocolate that he
named "Hershey's Kiss". At first, each was wrapped by hand in a square of aluminum foil. The
introduction of machine wrapping in 1921 sped up the process and added a small paper ribbon to
the top of the package, indicating that it was a genuine Hershey product.[13]Today, over 70 million
candies are produced daily.[14]
Other products introduced included Mr. Goodbar(1925) (peanuts in milk chocolate), Hershey's
Syrup (1926), semisweet chocolate chips (1928), and theKrackelbar with crisped rice (1938).
 Reese's Peanut Butter Cups
Harry Burnett Reese invented Reese's Peanut Butter Cups after founding the H.B. Reese Candy
Company in 1923. Reese died on May 16, 1956, in West Palm Beach, Florida, leaving the company
to his six sons. On July 2, 1963, the H.B. Reese Candy Company merged with the Hershey
Chocolate Corporation in a tax-free stock-for-stock merger. In 2020, after 57 years of stock splits,
the original 666,316 shares of Hershey common stock received by the Reese family represented
16 million Hershey shares valued at $2.5 billion, paying annual dividends of $51.4 million. In
1969, only six years after the Reese/Hershey merger, Reese's Peanut Butter Cups became The
Hershey Company's top seller. As of September 20, 2012, Reese's was the bestselling candy brand
in the United States, with sales of $2.603 billion, and the fourth-best-selling brand globally, with
sales of $2.679 billion. Only $76 million (2.8%) of its sales are outside the United States.

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 Unionization
Labor unrest came to Hershey in the late 1930s, as aCongress of Industrial Organizationsbacked
union attempted to organize the factory workers. A failed sit-down strike in 1937 ended in
violence; loyalist workers and local dairy farmers beat many of the strikers as they attempted to
leave the plant. By 1940, an affiliate of the American Federation of Laborhad successfully
organized Hershey's workers under the leadership ofJohn Shearer, who became the first president
of Local Chapter Number 464 of the Bakery, Confectionery, Tobacco Workers and Grain Millers'
International Union. Local 464 still represents the Hershey workforce.
 21st century
On July 25, 2002, it became public knowledge that the Hershey Trust Company was seeking to
sell its controlling interest in the Hershey Foods Corporation.
In December 2004, Hershey acquired the Mauna Loa Macadamia Nut Corp from The Shans by
Group.
In 2005, Krave Jerky was founded by Jon Sebastiani after he trained for a marathon and looked for
a healthy source of energy. Alliance Consumer Growth, a private equity group, invested in Krave
Jerky in 2012. Hershey's purchased the company in 2015. Hershey would later in 2020 sell Krave
Jerky to Sonoma Brands, the food industry incubator founded by Jon Sebastiani in 2016.
In July 2005, Hershey acquired the Berkeley, California-based boutique chocolate maker
Scharffen Berger. In November 2005, Hershey acquired Joseph Schmidt Confections, the San
Francisco-based chocolatier, and in November 2006, Hershey acquired Dagoba Organic
Chocolate, a boutique chocolate maker based in Ashland Oregon.
In June 2006, Philadelphia city councilman Juan Ramos called for Hershey's to stop marketing
"Ice Breakers Packs", a kind of mint, due to the resemblance of its packaging to a kind that was
used for illegal street drugs.
In September 2006, ABC News reported that several Hershey chocolate products were
reformulated to replace cocoa butter with vegetable oil as an emulsifier. According to the company,
this change was made to reduce the costs of producing the products instead of raising their prices

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or decreasing the sizes. Some consumers complained that the taste was different, but the company
stated that in the company sponsored blind taste tests, about half of consumers preferred the new
versions. As the new versions no longer met the Food and Drug Administration‗s official
definition of "milk chocolate", the changed items were relabeled from stating they were "milk
chocolate" and "made with chocolate" to "chocolate candy" and
"chocolatey.‖ In December 2011, Hershey reached an agreement to acquire Brookside Foods Ltd.,
a privately held confectionery company based in Abbotsford, British Columbia. In January 2015,
Hershey announced that they had acquired Krave Jerky, marking the company's first foray outside
of the confectionery market in more than a decade. In 2016, Hershey acquired bark THINS, a New
York-based chocolate snack foods company. On August 2016 attempt to sell Hershey to Mondelez
International was scuttled because of objections by the Hershey Trust.
In 2017, Hershey acquired Amplify Snack Brands, Austin, Texas based maker of Skinny Pop.
In September 2018, Hershey announced to buy Pirate Brands from B&G foods.
In August 2019, Hershey announced it would purchase protein bar maker One Brands LLC
In October 2019, Hershey's partnered with Yuengling to produce a limited release collaboration
beer titled Yuengling Hershey's Chocolate Porter; becoming Hershey's first licensed beer
partnership.
 Milton Hershey School (MHS)
Unable to have children of his own, Milton S. Hershey founded the Hershey Industrial School in
1909 for white orphaned boys. In 1918, three years after the death of his wife, Milton Hershey
donated an amount to the boarding school in trust, as well as 40% of the Hershey Company's
common stock. The school's initial purpose was to train young men in trades, but eventually shifted
to focus on preparation for college. The Hershey Trust Company has exercised voting rights for
the school, and has been a trustee since its founding. Many of its designs resemble Hershey
chocolate products, such as the Hershey Kisses street lights. Milton Hershey was involved in the
school's operations until his death in 1945. The Hershey Industrial School was renamed the Milton
Hershey School in 1951.

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PRODUCTS
There are list of products manufactured by The Hershey Company. Some of these products began
production over 100 years ago such as the Hershey Kiss and Hershey Bar. Hershey produces a
variety of products that are chocolate or candy based, and The Hershey Company also produces
gum. This list excludes licensed items such as ice cream and chocolate milk, which are made by
Breyers, Good Humor, Klondike, and Natrel. The main market is Continental North America.
The wide range of products include Milk Chocolate Bar, Milk Chocolate with
Almonds, Hershey’s Special Dark, Hershey's Special Dark with Almonds, Hershey's Cookies ‗n‗
Cream, Hershey's Gold, Air Delight, White Cream with Almonds,
Hershey’s Milk Chocolate &Reese’s Pieces Candy Bar, Special Dark Sugar Free, Caramel Filled
Chocolates.
There are also other products under various brands of Hershey’s the brands includes Hershey’s
Symphony, Almond Joy, Hershey’s Bliss, Hershey’s Drops, Hershey’s Miniatures,
Hershey’s Pot of Gold, Hershey’s Kisses etc.
More than chocolate products there are other products such as Hershey's Brownies and Reese's
Brownies, Hershey's Cookies, Really Nuts, snack nuts and Trail mixes, Snack bars, Snacksters,
Hershey's Syrup, Hershey's Soy fresh Soya Milk etc.
MARKET STRATERGY
The Hershey Company is a leader in the US confectionery market with a marketing strategy
focused on strong brand equity, product innovation, and consistently superior product quality.
Hershey’s main strengths in marketing are brand awareness and brand loyalty. Its core brands—
Kisses, Twizzlers, Reese’s, Kit-Kat, and the Hershey Bar—is not only strong pillars but among
the top ten candies of all the time.

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Hershey applies a micro-marketing concept to its businesses, which means that it markets certain
products to small target audiences, tailoring its products to meet these audiences‗ particular
demands. Hershey thus aims to give its customers a larger range options by personalizing their
products at higher prices. And even with the small number of custom sales that this approach earns,
personalized bars earn good margins and revenues for the company.

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4.1 SWOT ANALYSIS
SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
Analysis is a technique for assessing these four aspects of your business. SWOT analysis assesses
internal and external factors, as well as current and future potential.
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths
and weaknesses of an organization, its initiatives, or an industry. The organization needs to keep
the analysis accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-
life contexts. Companies should use it as a guide and not necessarily as a prescription.
.
Figure 4.1: SWOT Analysis
Source: Secondary data
In SWOT analysis strength describes what an organization excels at and what separates it from
competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and
so on. Weakness stops an organization from performing at its optimum level. They are areas where

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the business needs to improve to remain competitive: a weak brand, higher-than-average turnover,
high levels of debt, an inadequate supply chain, or lack of capital. Opportunities refer to favorable
external factors that could give an organization a competitive advantage Threats refer to factors
that have the potential to harm an organization.
A SWOT analysis is a great way to guide business-strategy meetings. It's powerful to have
everyone in the room to discuss the company's core strengths and weaknesses and then move from
there to define the opportunities and threats, and finally to brainstorming ideas. A company can
use a SWOT for overall business strategy sessions or for a specific segment marketing, production
or sales.
3.1.1 SWOT ANALYSIS OF CADBURY
SWOT Analysis of Cadbury focuses on strengths, weaknesses, opportunities, and threats.
Strength and weakness are the internal factors opportunities and threats are external factors .
SWOT Analysis is a validated framework that enables a company such as Cadbury to evaluate its
business performance against competitors and the industry.
STRENGTH
• World leader
• Strong brand and
product
• Placement and
distribution Dealer
community
WEAKNESSES
• Limited product range
• Product recall
• Lack of US right
OPPORTUNITIES
• Rural markets
• Fresh taste
THREAT
• Cost and price rise
• Health awareness on the rise
• Increasing demand
• Competitors pricing
Figure 4.2 Swot analysis of Cadbury
Source: Primary data

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Strengths of Cadbury includes;
• World leader: Cadbury is the leader in chocolates worldwide. Cadbury is considered to
have the best production and a large distribution platform, and has a presence in 160 or more
countries.
• Strong Brands and products: Cadbury has several strong brands such as dairy milk,
Bournvita, Oreo, Five Star and others in its product range. The goods are high quality goods
and some of them are Cadbury‘s cash cows.
• Placement and distribution: Cadbury has a superb distribution strategy in place and uses
the strategy of splitting the bulk, like all FMCG businesses. It is not a small feat to be shipped
to 200 countries with a range of more than 40 versions. And for the past few years, Cadbury
has been doing the same. Cadbury in India is considered to be the best in terms of its
distribution network.
• Dealer Community: Cadbury has a good partnership with its dealers which not only
supplies them but also focuses on promoting the products and training of the company.
• Entering new markets: Creative teams from Cadbury have helped it to come up with new
products and reach new markets. In the past it was successful, in most of the initiatives it
took in new markets.
• Website: Cadbury has a well-functioning and engaging website that attracts a huge amount
of traffic and sales on the internet.
• Social Media: Cadbury has a strong social media presence with over millions of followers
on the three most prominent social networking platforms: Facebook, Twitter and Instagram.
It has a high degree of customer engagement with low customer response time on those
channels.

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• Product Portfolio: Cadbury has a broad selection of products where it sells products in a
wide variety of categories. It has a range of exclusive product deals which competitors don‘t
have.
Weaknesses of Cadbury includes;
• Limited Product Range
Cadbury has been repeatedly criticized by business analysts for its limited product range. While
the brand offers a variety of confectionery products, it has not expanded into developing or
manufacturing products of other kinds (food or otherwise). As a result, Cadbury is highly exposed
to the confectionery market in times both good and bad. In the face of growing health
consciousness, this may have serious consequences (discussed further in the Threats section of
this analysis).
• Product Recalls
Another weakness Cadbury has battled is that of product recalls. In recent years, the company
has had to recall a portion of its confectionery products on numerous occasions. These recalls
have had varying causes: in one case, products containing nut residues were labeledallergenfree,
while in another case, products were believed to have contained harmful bacteria. Product recalls
of this nature can easily tarnish a brand‘s reputation.
• Lack of US Rights
For a Western confectionery company, you would think the United States must be one of
Cadbury‘s biggest markets. However, in 1988,The Hershey Company acquired the rights to
produce Cadbury chocolate in the United States. Numerous consumers have complained about
this, claiming that original Cadbury‘s products taste significantly different. In any case, this lack
of rights means Cadbury will not be able to expand its core chocolate range in the United States.
Opportunities of Cadbury includes;

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• Rural markets: Rural market penetration and distribution in rural markets can be a great
opportunity for Cadbury. It is present in foreign countries and Cadbury needs a rural
presence that will increase the presence and turnover of its brands.
• Fresh Tastes: Indian customers have a sweet tooth and like to eat small chocolates and
chocolate bars sometimes. On top of that, there are different flavours that customers prefer.
Therefore, new tastes and new flavours are an opportunity that Cadbury will deliver on a regular
basis.
Threats of Cadbury includes;
• Cost and price rise: Distribution prices have risen with an increase in fuel prices as well as
shipping costs. At the same time, sourcing and production costs are also high. The persistent
rise in costing and therefore pricing of the product is also a challenge to Cadbury over the
years, as it creates a vacuum for other businesses to join.
• Health awareness on the rise: Among the Indian population, health awareness is on the
rise. Instead of eating chocolates, many people enjoy consuming health juices as well as
fruit. You will see articles every week on newspapers and blogs that warn against eating
chocolate and spread the advantages of remaining healthy. Around the same time, many
parents avoided offering their children chocolates, looking at the adverse effects.
• Increasing demand for individuals, increasing buying power: Nowadays, if you give
children a cookie, they are likely to need a toy car, a bicycle or a device for a young adult.
Thus, the demands for presents have also risen in value with a rise in buying power, and just
a chocolate will not suffice. This is a hazard, too, to Cadbury.
• Competitors pricing: similar Competitive products are a major challenge to the company.

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4.1.2 SWOT ANALYSIS OF NESTLE
Figure 4.3: SWOT analysis of Nestle
Source: Secondary data

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NESTLE’S STRENGTH
1. Largest Food Company – In 2020, Nestle maintained its position as the world‘s largest food
company with the sales of its Hot Pockets, Stouffer‘s, DiGiorno, and Nespresso holding the
top seat in the industry.
2. Reputed brand name – Nestle is the most renowned brand in the world. It has developed a
respected reputation in the food and beverages sector offering high-quality products for
everyday use across the globe.
3. Globally recognized brand – Through its effective advertising and branding strategies, it has
created significant awareness and developed a successful brand image around the world.
According to the Fortune Global 500, Nestle is among the world‘s largest corporations and is
ranked at 69th position in 2018 list.
4. Highly diversified company – Nestle sells its products in 189 countries, Instead of relying on
a few markets, it has captured the sizeable market in a lot of developed and developing
countries to earn most of its revenue. Its leading markets include the US, China, France, and
Brazil. In 2020, its sales increased by30% and had to increase production in nearly 70 factories
to meet the demand.
5. World’s most valuable brand – According to 2018 Forbes Global, Nestle is among the top
as the world‘s most valuable company in regards to highest revenue, profits, assets, and market
value. In 2020, Nestle is ranked the 50thmost valuable brand in the world.
6. Extensive product portfolio – Nestle owns more than 2000 brands globally and renovated
over 8000 products for nutrition and health considerations, according to its Annual Review
2017. It is one of the worlds‘ biggest companies with the broadest product portfolio. In 2020,
Nestle owns some of the companies offering pet food, frozen foods, baby food, vitamins, and
many more. It also has a big Starbucks licensing deal.

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7. Well-established relationships and popular brands– Nestle has some of the world‘s most
recognized brands under its name such as Nescafe, Kit Kat, Gerber, Milo, and Maggi. Besides,
it has well-established relationships with other trusted and powerful brands like Colgate
Palmolive, Coca Cola, General Mills, and L‘Oréal.
8. 8. Efficient R&D system – Nestle has the world‘s largest food and nutrition research
organization with 21 R&D centers Its research and development capability is one of its key
competitive advantages. There are more than 5000 employees involved in R&D operations. It
spent nearly 1.72 billion Swiss Franc on R&D in 2017. Nestle expanded its operations in the
Greater China Region to 3 R&D centers and 4 product innovation centers in 2020.
9. sustainability practices – Nestle puts substantial efforts in environmental sustainability
practices and take innovative and initiatives in improving its quality of products. It optimizes
advanced solutions to reduce waste, water usage, non-renewable energy use, and packaging
material usage. In 2017, 253 of Nestle factories reached zero waste production. The company
announced in January 2020 that it will invest $2.1 billion to tackle plastic waste and aims to
shift from virgin plastics to sustainable packaging.
10. Large distribution system – Nestle owns an extensive and diversified distribution system that
is not only penetrated in urban areas but also rural regions. It has adapted local distribution
methods and decentralized approach to run the business efficiently in respective countries.
Nestle has strong relationships with suppliers, retailers, vendors, and distributors.
NESTLE’S WEAKNESSES
1. Price fluctuations by retail giants – Nestlé‘s grocery sales are achieved majorly through huge
retail giants like Walmart, Tesco, and Kroger. Any reduction orincrease in prices by these
retailers can affect Nestlé‘s sales.
2. Span of control and organizational structure– Nestlé is organized in a matrix structure. That
means a large number of brands are under the same umbrella group which makes it somewhat

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challenging to manage the large Administrating such a large number of individual brands can
often result in discord and conflict of interest.
3. Water controversy – Recently, Nestle was accused of illegally pumping millions of litersof
water in 6 nations where residents are deprived of drinking water.
4. Social criticisms– Nestle has become a target of media attention many times. The claim to
privatize water, misleadinglabeling, and a lawsuit for chocolate making using child and slave
laborare some of the examples that have to weaken its market reputation.
5. Maggi Noodles controversy– In 2017, Nestle failed to clear a laboratory test in India. This
created a publicity hype as people boycotted Nestle, leading to the loss of 80% of market share
in the country. Nestle claimed ‗No added MSG‘ in the Noodles packets. However, 1000 times
more lead was found in the product after testing.
6. Racially Insensitive Product Names – Nestle has been criticized for perpetuating racism using
racially insensitive names on its products. In Australia, Nestle has been under pressure to stop
advancing racism with its sweets named Red Skins and Chicosand recently announced that it
will change the name of two confectionery products.
7. Unhealthy Products –Nestle‘s history consists of a long list of products that threatened life
consumers, such as China Milk Scandal and tainted cookie dough. Consumers distrust
companies that have sold unhealthy products in the past.
NESTLE’S OPPORTUNITIES
1. Venturing small food start-ups – Nestle has a fantastic opportunity to grow the number of
small food start-ups under its popular brand name. Nestle can also collaborate with the new
start-ups to promote its brand name.
2. Online shopping – Nestle has a remarkable opportunity to boost its e-commerce sites and online
shopping platform. A very few CPGs are offering online services to make the shopping

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experience more comfortable and pleasant. Although Nestle has its online stores in a few
countries, expanding its online services to more areas will prove a rewarding decision for the
company.
3. Market penetration for breakfast cereals – Nestlé‘s cereals and oats market have shown fast
growth in recent years. Thus, penetrating this market more would be highly lucrative for the
company.
4. Expanding ready-to-drink tea and coffee market – The demand for tea and coffee is
continuously on the rise, rendering a profitable opportunity for Nestle to groom this market
more.
5. Partnerships – Strategic alliances with other food and beverage giants are also a great
opportunity for the company to increase its revenues and profits.
6. Authentic labeling – Nestle has already been criticized for giving misleading nutritional
information on its labels. So, there‘s an opportunity to improve its practices by giving
trustworthy information and accurately labeling its products.
7. Expand through Acquisitions – In 2019, Nestle offloaded several low-performing brands like
Herta Charcuterie and is switching to acquisitions in 2020. The company‘s acquisition of
gastrointestinal medication brand Zenpepwas completed in January 2020 and it is the first of
many more acquisitions slotted for 2020. Expanding portfolio with high performing SMB
acquisitions offers immense opportunities for Nestle to grow.
8. Refocus on Profitable Ventures – Having too many brands can stretch a company‘s resources
to the limit and undermine overall performance. Nestle has been grappling under the weight of
too many unprofitable brands and is seeking tosell its North American waterbrands like Pure
Life and shift focus on strengthening the best and highly profitable brands in its portfolio.
NESTLE’S THREAT

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1. Illegal rainforest destruction controversy – In 2017, Nestle was alleged of involvement in the
destruction of Sumatra‘s last tract of rainforest. It faced severe criticisms from NGOs and
environmentalists in this regard.
2. Water scarcity – Nestlé‘s production is highly dependent on water usage. Accessing the clean
water through less costly sources has become difficult for the company due to many reasons.
These include increasing population, climate change, growing demand for food and water,
increasing pollution, water wastage, and overexploitation of resources.
3.Government regulations and prices –Government regulations can affect the business
operations of Nestle. Additionally, the increasing prices of commodities force the company to
increase the prices of its products. It will lead to sales reduction as consumers can switch to other
brands which are available at low costs.
4.Economic Uncertainty – Even though Nestlé‘s sales increased by 4.3% and e-commerce
jumped to over 10% of total sales in Q1 of 2020, the increase is attributed to panic buying catalyzed
by recent events. The company‘s revenue from commercial businesses like hotels and restaurants
are threatened by economic uncertainty in the global markets and can decrease as these entities
remain closed or collapse due to the crisis.
5.Haunting Dark Past – The US Supreme Court is reviewing whether to open human rights probe
against Nestle subsidiary for knowingly helping to perpetuate slavery in cocoa farms in the
African nation of Ivory Coast. Even though the events occurred over a century ago, Nestlé‘s racist
past can haunt the company and affect its sales, profitability, and growth for years to come.

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4.1.3 SWOT ANALYSIS OF HERSHEY’S
Source: Primary data
HERSHEY’S STRENGTHS
• Largest chocolate manufacturer – Hershey‘s was Founded in 1849 and has a large
presence across the globe. It is considered as one of the largest chocolate manufacturers in
the world. Below is the US market share of Hershey‘s.
STRENGTH
Largest chocolate manufacturer
Wide distribution
Innovative chocolate brand
Huge product portfolio
Brand equity
WEAKNESSES
Purchase of cocoa
The expansion is limited
Many small player
Fake products
OPPORTUNITIES
Snacks segment
Expansion
Distr ibution network
THREAT
High competition
Decreasing margins
Health awareness
Raw material problems
Figure 4.4 SWOT analysis of Hershey‘s

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• Wide distribution – Hershey‘s is distributed in more than 60 countries although it is highly
concentrated in some countries and has an average market share in other countries.
• Innovative chocolate brand – Hershey‘s is known as an innovative and creative chocolate
brand. It has branded itself in many ways and has started many new things.
Some of them include the Hershey‘s chocolate world, the various Packaging types used by
the brands and the different types of ch Huge product portfolio – Here is the Product
portfolio of Hershey‘s. As can be seen from the Wikipedia link, Hershey‘s is present in
more than 50 product variants and this is a huge collection for a chocolate manufacturer.
You can find any type of chocolate under the sun in the portfolio of Hershey‘s.chocolates created.
• Brand equity – Hershey‘s is ranked the 94th most valued brands in the world and has a
Brand valuation at $7 billion. The company spends around 520 Million Dollars a year on
advertising and marketing.
HERSHEY’S WEAKNESSES
• Purchase of Cocoa – Hershey‘s does not purchase in an organised manner for which it is
criticised. Hershey‘s does not use fair trade practices as expected from such a top company.
• The expansion is limited – Although it is in FMCG segment, Hershey‘s is expected to
expand to more than 60 countries thereby covering more ground.
• Many small players – The segment is such that there are many small and regional players
thereby cutting the market share in different regions.
• Fake products– The problem with Hershey‘s is that it is easy to duplicate and this is the
problem being faced in developing nations where counterfeit Hershey‘s is found.
HERSHEY’S OPPORTUNITIES

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• Snacks segment – Besides chocolate, Hershey‘s can also snacks segment though this will
create more diversification then focus on the brand. However, most FMCG‘s operate in
various segments for Economies of scale.
• Expansion – We don‘t think 60 countries is enough for such a loved brand and
Hershey‘s can definitely expand further. In fact, it has a very low footprint in India and similar
countries where there is a lot of scope for expansion because of the population.
• Distribution network – Naturally, with expansion, the importance of having a strong
distribution network rises manifold. Because Hershey‘s mainly deals in chocolates, it needs
to have the right pull so that a strong distribution network is created.
HERSHEY’S THREAT
• High competition – One of the major threat to the establishment of Hershey‘s is that there
is very high competition in the chocolate segment. There are Mars, M&M and Cadbury
which are strong brands in this segment. As a result, Hershey‘s is always fighting against
these competitors at all steps.
• Decreasing margins – Cost of all products is rising. Distribution costs, labour costs, fuel
costs, everything is increasing. Due to this increase of costs over time and because of the
strong competition present, the margins of the brands are decreasing. Over a period of time,
the bottom line is getting hit because of these costs even if the top line is consistent.
• Health awareness – More and more people are becoming aware of the benefits of a healthy
lifestyle especially after many blogs and news programs have started focusing on these. The
first suggestion in the health advice is to stop consumption of sugar or sugarbased products.
As chocolates themselves are heavily sugar based, more and more people are avoiding
chocolates and consumption is dropping.
• Raw material problems – Cocoa is a major raw material used in Hershey‘s and there is
huge consumption of Cocoa across the world in various forms. As a result, procuring the
right amount of Cocoa is a major cost and bottleneck of production.

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4.2 BCG MATRIX
BCG matrix is a corporate planning tool, which is used to portray firm‗s brand portfolio or SBUs
on a quadrant along relative market share axis (horizontal axis) and speed of market growth
(vertical axis) axis.
BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position
of the business brand portfolio and it‗s potential. It classifies business portfolio into four categories
based on industry attractiveness (growth rate of that industry) and competitive position (relative
market share). These two dimensions reveal likely profitability of the business portfolio in terms
of cash needed to support that unit and cash generated by it.
Relative market share is one of the dimension used to evaluate business portfolio is relative market share.
Higher corporate‗s market share results in higher cash returns.
Market growth rate defines high market growth rate means higher earnings and sometimes profits but it
also consumes lots of cash, which is used as investment to stimulate further growth.

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Figure 4.5 BCG Matrix
Source: Secondary data
There are four quadrants into which firms brands are classified: STARS: The business units or products that have the best market share and generate the
most cash are considered stars. Monopolies and first-to-market products are frequently
termed stars. However, because of their high growth rate, stars consume large amounts of
cash. This generally results in the same amount of money coming in that is going out.
Stars can eventually become cash cows if they sustain their success until a time when a
high growth market slows down. A key tenet of BCG strategy for growth is for
companies to invest in stars. CASH COW: A cash cow is a market leader that generates more cash than it consumes.
Cash cows are business units or products that have a high market share but low growth
prospects. According to Net MBA, cash cows provide the cash required to turn a question

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mark into a market leader, cover the administrative costs of the company, fund research
and development, service the corporate debt, and pay dividends to shareholders.
Companies are advised to invest in cash cows to maintain the current level of productivity
or to "milk" the gains passively. DOGS: Dogs, or pets as they are sometimes referred to, are units or products that have
both a low market share and a low growth rate. They frequently break even, neither
earning nor consuming a great deal of cash. Dogs are generally considered cash traps
because businesses have money tied up in them, even though they are bringing back
basically nothing in return. These business units are prime candidates for divestiture. QUESTION MARK: These parts of a business have high growth prospects but a low
market share. They consume a lot of cash but bring little in return. In the end, question
marks lose money. However, since these business units are growing rapidly, they have
the potential to turn into stars in a high growth market.
4.2.1 NESTLE

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Figure 4.6 BCG Matrix of Nestle
Source: Secondary data CASH COWS:
Cash cows are the products that have a high market share in a market that has low growth. For Nestle,
there is one product that has undoubtedly been the Cash Cow and its
Nestlé‘sMaggieNoodles.
With a market share of 80-85 %, MaggieNoodlesholds a very strong hold in the market and have high
customer loyalty.
The product requires very less investment to maintain its market share and fight off any competition. STARS:
The products or business units that have a high market share in high growth industry are the stars
of the organization. In the case of Nestle, Nestle‘s Mineral WaterandNestle‘s Nescafe Coffeefall in
the Star quadrant of the BCG Matrix of Nestle.
Growing healthier lifestyle trends and emerging markets have prompted the brand to invest large
amounts of investments in order to differentiate the bottled water brands from competitors in mature
markets and grow brand awareness in emerging markets. QUESTION MARK:
There are products that formulate a part of the industry that is still in the phase of development, yet
the organization has not been able to create a significant position in that industry. The small market
share obtained by the organization makes the future outlook for the product uncertain, therefore
investing in such domains is seen as a high-risk decision.
With increasing competition and growing need to consume healthy products among consumers,
Nestle‘s Milk products and Nutrition requires significant investment from the brand to maintain and
grow its market share.
Nestle‘s Chocolates and confectionariesis another business unit that can be placed in the Question
Mark quadrant of the BCG Matrix of Nestle. High competition and small market share of the
product in the industry is what makes it place in this quadrant. DOGS:

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Dogs are those products that were perceived to have the potential to grow but however failed to create
magic due to the slow market growth.
Failure to deliver the expected results makes the product a source of loss for the organization,
propelling the management to withdraw future investment in the venture. Since the product is not
expected to bring in any significant capital, future investment is seen as a wastage of company
resources, which could be invested in a Question markor Star category instead .
4.2.1CADBURY

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Figure 4.7 BCG Matrix of Cadbury
Source: Secondary data CASH COW
There are some products that tend to offer a great deal of financial strength to the company which
are regarded as cash cows. These items have been high performing products in the past and have
gained a massive market share over the years. The BCG Matrix further indicates that the cash cows
have limited scope for further development of the market share as the industry segment has attained
significant level of maturity. The cash cows are beneficial for an organization as they provide the
firm with a continuous stream of sales and revenue. The dairy milk segment has been a cash cow
for the company in the past decades as the consumers had a high demand for chocolate. In the recent
times, this situation has shifted and dairy based confectionary items have lost their place as a cash

52
cow. In the contemporary confectionary industry, Cadbury has experienced stable financial growth
through Bournville brand which has created a better sales outlook for the company. STAR
The products that are a part of the star category can be differentiated from the cash cows on the
basis of the growth potential of the industry. Even though they have significant market share, the
industry is still growing which shows the chances of further increase in sales and revenues from the
star product. Consequently, the target of a higher market share can be obtained by focusing on
continued production of these items, which is supported by the high demand from consumers. The
star products can develop to such an extent that they become cash cows for an organization by
gaining higher market share and the eventual maturation of the industry. Cadbury had been able to
generate a great deal of financial income from its chocolate unit. Some of its high demand items
are dairy milk brand. Therefore, it can be regarded as a star for the company. However, in recent
years the sales of dairy based chocolate has declined while the non-dairy based confectionary
demand has significantly increased (Wallop, 2016). The company will need to rethink its
production and marketing strategy in order to make it cash cow. The higher production and
increased supply of cocoa is a favorable change in the industry which could help the company to
increase the production of its chocolate based confectionary items. QUESTION MARK
Apart from the high revenue generating products, there are some items that are not being a source
of financial stability for a firm. It is uncertain whether these items would play a part in financial
growth of the organization or not. Therefore, they are termed as question marks in the BCG Matrix.
In case if these products have an improved financial performance, they can be classified as stars.
Since the industry has high growth opportunity, these items have the chance of gaining financial
improvement with the passage of time. On the other hand, the low financial output exposes these
items to the risk of becoming a dog. Cadbury Crème Eggs have not been able to produce favorable
result for the company in the recent time. The sales volume of this product has declined, pushing
the company towards financial trouble. As observed by Lewis (2016), the manufacturing of Crème
eggs was altered due to a change in the recipe, which has not been received well by the target
market. The exclusion of dairy milk from the recipe has created a negative response among the
consumers who have viewed this decision as a violation of these taste and preference. As a result,
the projected demand of the eggs during the Easter has not been achieved, making it a question

53
mark for Cadbury Company. Another question mark for Cadbury is the biscuits segment, in which
its Oreo cookies have not been able to create a strong demand in the target market. As a result, the
revenue from biscuits has not been a strong point for Cadbury and its income is primarily generated
through the confectionary-based items. Investing resources in this product can help the company to
gain higher market share and revenue as the industry is growing and has the potential to further
grow. DOGS
The last category in BCG Matrix is dogs, which includes the products that are consuming
organizational resources but are not able to produce the return on the investment. The low ROI
makes these products a probable target for elimination from the product portfolio. One of the
reasons why these products are not performing well is that the industry is indicating a slow pace of
development, thus reducing the chances of securing a higher market share. One of the products
manufactured by Cadbury Company is bubble gum. The product has been developed with the
intention of expanding the portfolio of Cadbury, entering into other items besides chocolate based
products. Trident gum managed by Cadbury has not been able to gain significant financial gains,
making it a dog for the company. According to Manning (2009), the sales of gum has dropped up
to 2% which shows changing consumption of bubble gum in the target market. Another area where
Cadbury needs to bring improvement is the market share of its cold beverages, which have been
underperforming products in terms of sales and revenue.
4.2.3 HERSHEY’S

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STAR
• HERSHEY’S KISSES
• PEANUT BUTTER
QUESTION MARK
TWIZZLERS
CASH COW
ALMOUND JOY
DOG
MOUNDS
Figure 4.8 BCG Matrix
Source: Primary data
Stars The financial services strategic business unit is a star in BCG matrix of Hershey company. It
operates in a market that shows potential in the future. Hershey Company The earns a significant
amount of its income from this SBU. Hershey Company The should vertically integrate by
acquiring other firms in the supply chain. This will help it in earning more profits as this
Strategic business unit has potential. The number 1 brand strategic business unit is a star in the BCG matrix of Hershey company, and
this is also the product that generates the greatest sales amongst its product portfolio. The
potential within this market is also high as consumers are demanding this and similar types of
products. Hershey Company The should undergo a product development strategy for this SBU,
where it develops innovative features on this product through research and development. This
will help Hershey Company The by attracting more customers and increases its sales.
Cash Cows The supplier management service strategic business unit is a cash cow in the BCG matrix of
Hershey Company . This has been in operation for over decades and has earned Hershey
Company The a significant amount in revenue. The market share for Hershey Company The is
high, but the overall market is declining as companies manage their supplier themselves rather

55
than outsourcing it. The recommended strategy for Hershey Company The is to stop further
investment in this business and keep operating this strategic business unit as long as its
profitable. The number 3 brand strategic business is a cash flow in the BCG matrix of Hershey company .
This is an innovative product that has a market share of 25% in its category. Hershey Company
The is also the market leader in this category. The overall category has been declining slowly in
the past few years. Hershey Company The has the power to influence the market as well in this
category. It should, therefore, invest in research and development so that the brand could be
innovated. This will help the category grow and will turn this cash cow into a star. The overall
benefit would be an increase in sales of Hershey Company . The international food strategic business unit is a cash cow in the BCG matrix of the Hershey
company. This business unit has a high market share of 30% within its category, but people are
now inclined less towards international food. This change in trends has led to a decline in the
growth rate of the market. The recommended strategy for Hershey Company The is to invest
enough to keep this strategic business unit under operations. If it no longer remains profitable
and turns into a dog, then Hershey Company they should divest this strategic business unit.
Question Marks The local foods strategic business unit is a question mar in the BCG matrix for hershey
company. The recent trends within the market show that consumers are focusing more towards
local foods. Therefore, this market is showing a high market growth rate. However, Hershey
Company The has a low market share in this segment. The recommended strategy for Hershey
Company The is to invest in research and development to come up with innovative features.
This product development strategy will ensure that this strategic business unit turns into a cash
cow and brings profits for the company in the future. The number 4 brand strategic business unit is a question mark in the BCG matrix for Hershey
company. This strategic business unit is a part of a market that is rapidly growing. However, this
strategic business unit has been incurring losses in the past few years. It has also failed in the
attempts made at innovation by research and development teams. The recommended strategy for
Hershey Company The is to divest and prevent any future losses from occurring.

56 The confectionery strategic business unit is a question mark in the BCG matrix for Hershey
Company The. The confectionery market is an attractive market that is growing over the
years. However, Hershey Company The has a low market share in this attractive market.
The low sales are as a result of low reach and poor distribution of Hershey Company The
in this segment. The recommended strategy for Hershey Company The is to undergo market
penetration, where it pushes to make its product present on more outlets. This will ensure
increased sales for Hershey Company The and convert this strategic business unit into a
cash cow.
Dogs The plastic bags strategic business unit is a dog in the BCG matrix of Hershey company.This
strategic business unit has been in the loss for the last 5 years. It also operates in a market that is
declining due to greater environmental concerns. The recommended strategy for Hershey
Company The is to divest this strategic business unit and minimise its losses. The number brand strategic business unit is a dog in the BCG matrix for Hershey Company
The. This is operating in a market segment that is declining in the past 5 years. The company
also has negative profits for this strategic business unit. However, it is expected that the
market will grow in the future with environmental changes that are occurring. The
recommended strategy for Hershey Company The is to invest in the business enough to
convert into a cash cow. This will ensure profits for Hershey Company The if the market
starts growing again in the future. The synthetic fibre products strategic business unit is a dog in the BCG matrix of Hershey
Company . The market for such products has been declining, and as a result of this decline,
Hershey Company The has been facing a loss in the past 3 years. The market share for it is
also less than 5%. The recommended strategy for Hershey Company The is to divest this
strategic business unit to minimise any further losses. The artificially flavoured products strategic business unit is a dog in the BCG matrix for
Hershey Company The. These products were launched recently, with the prediction that this
segment would grow. However, with increasing health consciousness, people are now
refraining from consumption of artificial flavours. The market is shrinking, and Hershey
Company The has no significant market share. The recommended strategy for Hershey
Company The is to call back this product.

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4.3 PORTERS FIVE FORCES MODEL
Porter's Five Forces is a framework for analyzing a company's competitive environment. The
number and power of a company's competitive rivals, potential new market entrants, suppliers,
customers, and substitute products influence a company's profitability. Porter's Five Forces is a
business analysis model that helps to explain why various industries are able to sustain different
levels of profitability. The model was published in Michael E. Porter's book, "Competitive
Strategy: Techniques for Analyzing Industries and Competitors" in 1980.1 The Five Forces model
is widely used to analyze the industry structure of a company as well as its corporate strategy.
Porter identified five undeniable forces that play a part in shaping every market and industry in
the world, with some caveats. The five forces are frequently used to measure competition
intensity, attractiveness, and profitability of an industry or market.
Porter's five forces are:
• Competition in the industry
• Potential of new entrants into the industry
• Power of suppliers
• Power of customers
• Threat of substitute product
• Competition in the Industry
The first of the five forces refers to the number of competitors and their ability to undercut
a company. The larger the number of competitors, along with the number of equivalent
products and services they offer, the lesser the power of a company. Suppliers and buyers
seek out a company's competition if they are able to offer a better deal or lower prices.
Conversely, when competitive rivalry is low, a company has greater power to charge higher
prices and set the terms of deals to achieve higher sales and profits.
• Potential of New Entrants into an Industry

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A company's power is also affected by the force of new entrants into its market. The less
time and money it costs for a competitor to enter a company's market and be an effective
competitor, the more an established company's position could be significantly weakened.
An industry with strong barriers to entry is ideal for existing companies within that industry
since the company would be able to charge higher prices and negotiate better terms.
• Power of Suppliers
The next factor in the five forces model addresses how easilysupplierscan drive up the
cost of inputs. It is affected by the number of suppliers of key inputs of a good or service,
how unique these inputs are, and how much it would cost a company to switch to another
supplier. The fewer suppliers to an industry, the more a company would depend on a
supplier. As a result, the supplier has more power and can drive up input costs and push
for other advantages in trade. On the other hand, when there are many suppliers or low
switching costs between rival suppliers, a company can keep its input costs lower and
enhance its profits.
• Power of Customers
The ability that customers have to drive prices lower or their level of power is one of the five forces.
It is affected by how many buyers or customers a company has, how significant each customer is,
and how much it would cost a company to find new customers or markets for its output. A smaller
and more powerful client base means that each customer has more power to negotiate for lower
prices and better deals. A company that has many, smaller, independent customers will have an
easier time charging higher prices to increase profitability.
• Threat of Substitutes
The last of the five forces focuses on substitutes. Substitute goods or services that can be used in
place of a company's products or services pose a threat. Companies that produce goods or services
for which there are no close substitutes will have more power to increase prices and lock in
favorable terms. When close substitutes are available, customers will have the option to forgo
buying a company's product, and a company's power can be weakeness.

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4.3.1 PORTERS FIVE FORCE ANALYSIS ON CONFECTIONERY INDUSTRY
• Industry rivalry
Rivalry among existing firms in the confectionery industry is very high.They gain market share
from their competitors creating new products, changing existing products, or marketing with
special offers. Companies in this industry are constantly developing new products to release into
the market which creates competition to become the leader in innovation as well as cost and sales.
• Threats of New Entrants (Low)
Name branding also plays an important role in this because the buyers may not recognise the name or
know anything about smaller companies‘ quality of product.
• Bargaining Powers of Buyers (High)
The two key factors that determine the degree of power of the buyers are: Price Sensitivity and
Relative Bargaining Power. Price Sensitivity deals with how far the customers are willing to
bargain on price. Customers in the confectionary industry include both merchants and actual
consumers. Firms must have a goal of maintaining low costs; they are forced to compete on price.
Higher price sensitivity leads to higher bargaining power for the buyer.
• Threat of substitute products
There are many products available like flavoured yoghurts that can be switched with confectioneries.
Peoples are experimenting with different products to suit their sweet tooth.
Therefore, the threat of substitutes is high.
• Bargaining Power of Suppliers (Low)
Bargaining power of suppliers determines how a firm will control cost and profits.Firms with a
large number of suppliers and substitutes have more bargaining power than firms with a limited

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number of suppliers. Suppliers have more power when there are fewer companies and fewer
substitutes.

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5.1 FINDINGS The overall data across the background characteristic categories show that across the background
categories the preference for Cadbury chocolate and milk products is better than Nestle and
Hershey‘s. Most would purchase above chocolate and milk products of Cadbury for its taste and that of Nestle
and Hershey‘s for its price. It has been seen that more percentage has seen the advertisement of both Cadbury and Nestle than
Hershey‘s. All these companies have been using the promotion media to enhance the reach of their message
to the target audience. The overall effectiveness of the Cadbury products has been rated higher than that of
Nestle and Hershey‘s. The availability of Hershey‘s chocolate is comparatively low that of Cadbury and Nestle. It can be observed that most are satisfied by the packaging of Chocolate and Milk products of all
the three companies. Most of the people believe that there is a difference in milk products and chocolate available in
India and Other Countries of Cadbury, Nestle and Hershey‘s. It is observed that Pastries seems to be the nearest substitute of the chocolate and milk products
as most of the people across all the categories shows the readiness for the same. Most of the people believe that there exists a significant price difference between the products of
Cadbury, Nestle and Hershey‘s. It seems most of the people believe that they have not been disappointed by any brand of
Cadbury, Nestle or Hershey‘s. It seems that the people strongly believe that chocolates and milk products increase weight and
are not sufficient to substitute normal food requirements in routine. It has been seen that most of the people would contact the dealer for resolving the issues regarding
all the three products.

62 People across various background categories believe that Cadbury has a leading advantage over
Nestle and Hershey‘s for its products. All the three companies take part in social activities but comparatively Hershey‘s has engaged in
more social works that of other two companies. The demand for Cadbury products is more among the customers; the dealers of the Cadbury also
prefer Cadbury products for their family use as they are the most moving products. The stocks of the Cadbury and milk products are mostly stored by the most of the dealers because
the demands for the Cadbury products are high as compared to other two. Cadbury does more advertisement of its products and has more sales promotion schemes. It seems that preference of people for the same is more in case of Cadbury products as compared
to that of Nestle and Hershey‘s. People generate the awareness from advertisement sources like Newspaper, Magazine, Television,
Hoardings and Internet for Chocolate and Milk product of the three companies. It seems that factor like; Taste, Brand Image, Price, Emotion / Attachment and new variety of a
particular brand have affect the purchase of Chocolate and Milk product of the three companies
and that the consideration of these factors by the people is more evident in Cadbury products as
compared to the other two. As compared with Cadbury and Hershey‘s Nestle has wide range of products not only in chocolate
field but in others too. Cadbury has more attractive and colourful packaging for chocolates their wrappers is very
attractive as compared with other two. Various shapes of chocolates and gift hampers are available only for Cadbury so that they can be
given as gifts too. People believe that Nestle and Hershey‘s products available in India are different from that
available in foreign countries. Many controversies occur for Nestle and Cadbury products but there are comparatively low
controversies for Hershey‘s chocolate products.

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5.2. FUTURE PROSPECTS
5.2.1 FUTURE PROSPECTS OF CADBURY
As Cadbury continues to grow and develop as a business, they will face various threats to their
business as well as many opportunities that may have a positive influence on the company. A main
opportunity that Cadbury could potentially consider is developing their business to target the
markets of other countries such as China, Russia and Nigeria. Cadbury could also participate in Co-
Brand Marketing with other brand industries in order to capitalize on more advertising
opportunities. Cadbury will continue to have many opportunities in the future to create different
products and expand on the types of products they offer. As machinery and technology is improved,
chances to create new products will become possible and more apparent. Cadbury could also utilize
the new technology being developed in the world in order to make their company more global.
They have already partially done this by creating an online website, however they could further this
development by introducing a Cadbury application for phones and tablets.
In the future, Cadbury will most likely face the threat of more confectionary based businesses
further developing their companies and products as well as more global competitors creating
intense competition in the industry. Mars and Nestle are two of Cadbury‗s biggest competitors and
the act of aggressive price competition may lead to price wars in the market, which could induce a
large threat for Cadbury. The recent food trend of healthier dietary habits could also act as a major
threat to the Cadbury business as people are striving to eliminate perceived treats altogether and
readjust their eating habits with the aim to be healthier. In this case, Cadbury may lose a lot of
business as the whole Cadbury Company is centered on chocolate and delicious treats.
Cadbury India expects strong growth in India in future. The company plans to increase the franchise
of its existing brands and continue to explore new product opportunities including adjacent market
opportunities. Cadbury India is also looking for more opportunities in the SAARC region.In future
Cadbury is planning to expand more with new technologies. From expansion they are trying to
achieve more sales and market growth. Nestle, the food group, is focusing on innovation, local
production and improving the health credentials of its products in a bid to prepare for several long-

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term trends. Belonging to the food, beverages and tobacco sector means this company will be
affected directly and indirectly by a number of disruptive opportunities and challenges over the
coming decades. While described in detail within Quantum run‘s special reports, these disruptive
trends can be summarized along the following broad points: First off, by 2050, the world‗s
population will balloon far past nine billion people; feeding that many people will keep the food
and beverage industry growing into the foreseeable future. However, providing the food necessary
to feed that many people is beyond the world‗s current capacity, especially if all nine billion
demand a Western-style diet. Meanwhile, climate change will continue to push global temperatures
upward, eventually far beyond the optimal growing temperatures/climate of the world‗s staple
plants, like wheat and rice—a scenario that can endanger the food security of billions. As a result
of the two factors above, this sector will collaborate with the top names in agribusiness to create
novel GMO plants and animals that grow faster, are climate resistant, are more nutritious, and can
ultimately produce far greater yields. By the late 2020s, venture capital will begin investing heavily
in vertical and underground farms (and aquaculture fisheries) that are located close to urban centers.
These projects will be the future of buying local' and have the potential to significantly increase the
food supply to support the world's future population. The early 2030s will see the in-vitro meat
industry mature, particularly when they can grow lab-grown meat at a price less than naturally
raised meat. The resulting product will eventually be cheaper to produce, far less energy intensive
and damaging to the environment, and will produce significantly safer and more nutritious
meats/protein. The early 2030s will also see food substitutes/alternatives become a booming
industry. This will include a larger and cheaper range plant-based meat substitutes, algae-based
food, soy lent-type, drinkable meal replacements, and high protein, insect-based foods. The
Hershey‗s company has planned many future prospects for their company, but due to current
pandemic situation Hershey co has announced the withdrawal for its full year financial outlook for
the fiscal year 2020 and has warned of weak sales in certain categories as household worried about
their financial future cut spending on snacks and chocolates. .The situation continues to evolve
rapidly, and it is difficult to predict the future with much certainty-Michel Buck, The Hershey‗s
company President said. They revealed the plans for 2021. US-based confectionary giant Hershey
has committed to set an approved science-based emissions reduction target by 2021, as part of a
sweeping new range of sustainability measures. At a summit in Ghana on Thursday (24 January),
the company revealed that it has partnered with the Science Based Targets Initiative (SBTi) to
develop carbon reduction aims in line with a 2C trajectory over the next two years. Such an aim

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will build on the company‗s existing 2025 target of cutting its direct greenhouse gas (GHG)
emissions by 2025%, against a 2010 baseline. The commitment to set a science based target forms
part of a wider string of sustainability announcements made by Hershey its newlypublished
environmental policy. Specifically, the policy states that all Hershey employees will have a role to
play in making the company more sustainable going forward, as it works towards having a ‗net-
positive‗ environmental and social impact across its operations. It additionally states that the
company has joined the UN Global Compact as a corporate partner, committing it to align its
sustainability actions and reporting with the body‗s 10 principles on the environment, human
rights, forced labour and anti-corruption. At the launch of Hershey‗s new environmental policy,
Buck also launched a supply chain initiative aimed at protecting forests and championing worker
rights in its cocoa supply chain. The scheme builds on Hershey‗s 2018 cocoa for good program to
eliminate child labour, hunger and deforestation from its global supply chains by 2030.
5.2.2 FUTURE PROSPECTS OF NESTLE
Faced with over 60% of its product portfolio falling into the “unhealthy” segment,
Swiss food giant Nestle is looking to reduce the sodium content and launch new
products that offer healthier options to consumers in India as well as globally . A
leaked internal document has prompted the company — which has milk, instant
noodles, soups, chocolates and coffee among its top product offerings — to accelerate
the launch of fortified products and rapidly reduce the percentage of salt and sugar in
its existing offerings, sources familiar with the strategy told TO I. Options such as
spinach and atta Maggi and Fruit O’Nuts Munch are part of the plan, with the R&D
centre at Manesar being tasked with coming up with healthier options. “Our products
comply with the local standards, but we are constantly seeking to innovate and
renovate our products to reduce the sodium content,” said a source, while adding that
the exercise is being undertaken globally.
Nestle is not the only global food company under scrutiny for its product portfolio.
PepsiCo and McDonald’s are among global giants, which have had to alter their

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offerings as they were accused of giving unhealthy products, which resulted in
trebling of obesity since 1975 and a rising share of population being affected by
diabetes and other lifestyle issues.
The company acknowledged that it is reviewing its strategy. “We are looking at our
entire portfolio across the different phases of people’s lives to ensure our products
are helping meet their nutritional needs and supporting a balanced diet. Our efforts
build on a strong foundation of work over decades to improve the nutritional footprint
of our products. For example, we have reduced sugar and sodium in our products
significantly in the past two decades, about 14-15% in the past seven years alone,”
Nestle SA said in a statement . As a first step, it is assessing the part of the food and
beverage portfolio that can be measured against external nutrition profiling systems.
“Systems like the Health Star Rating and Nutri-Score are useful in this regard and
enable consumers to make informed choices,” said the company, which sells just nine
of its 35 global billionaire brands in India.An international presentation circulated
among top Nestle executives earlier this year revealed only 37% of Nestle’s food and
beverage products had a rating of over 3.5 as per Australia’s health star rating system,
in which products are given scores out of five. Reports suggested that Nestle
acknowledged that a part of its portfolio will never be healthy no matter how much
the company tried.
Under its CEO Mark Schneider, the company has sought to acquire nutritional
supplements and vitamins, while seeking to expand its coffee and plant-based
businesses. At the same time, it has restructured some of its businesses in the US and
China.
5.2.3 FUTURE PROSPECTS OF HERSHEY’S
The Hershey Co. is strategizing to grow the better-for-you (BFY) chocolate category
with new and differentiated capabilities. Building from its strength in portion-

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controlled choices, Hershey will expand its future portfolio to deliver more reduced
sugar, organic and plant-based alternatives while also continuing to build its classic
array of beloved products. Behind this portfolio growth is a multi-pronged strategy
that will continue to advance Hershey's leadership in confection and snacking,
according to the company.
This long-term strategy includes:
Core brand packaging and platforms: Continue to offer portion-controlled treats in a
variety of pack types
Innovation: Extend core brands to BFY offerings and renovating existing products to
extend choices
Research and development: Focus internal efforts and external investments to
develop future breakthrough sugar reduction capabilities and recipes that deliver
great tastes and textures while meeting the changing needs of some snackers
Partnerships, licensing, merger and acquisitions (M&A): Team up with top BFY
brand partners to co-develop and launch new offerings
As part of its BFY confection strategy, Hershey partnered with ASR Group, a leading
sweetener company, to co-lead an equity investment in Bonumose Inc., a start-up
company with breakthrough innovations in plant-based food ingredients, including
rare and natural sugars.
The investment is part of Hershey’s C7 Ventures, which enables new avenues for
growth through capital investments in disruptive or emerging platforms focused on

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new occasions, technologies and go-to-market opportunities. This investment
enables a research and development partnership to advance the tastes of not only
zero- and reduced-sugar chocolate, but also Hershey’s broader BFY snack offerings
going forward.
Headquartered in Pennsylvania, The Hershey Co. has more than 80 brands around
the world that drive more than $8 billion in annual revenues, including such iconic
brand names as Hershey’s, Reese’s, Kit Kat, Jolly Rancher, Ice Breakers, SkinnyPop
and Pirate’s Booty.
The Hershey Company is expanding its portfolio on May 2021the company
announced it plans to acquire Lily’s, a low-sugar confectionery brand with milk and
dark chocolate bars, baking chips, peanut butter cups and other products. In a news
release, Hershey said Lily’s fits with the company’s “multi-pronged better-for-you
snacking strategy.” Lily’s falls under a growing better-for-you snacks category that
includes potato chips, ice cream and cookies. Hershey’s said the Lily’s acquisition
will allow the company to accelerate growth in the category.Many small candy
companies are focused on reduced-sugar confections. Lily’s no-sugar added products
are sweetened with Stevia, a zero-calorie natural sweetener, and made from non-
GMO and gluten-free ingredients.
“Hershey is focused on developing a BFY confection portfolio that offers a variety
of choices to meet the evolving needs of our consumers,” said Chuck Raup, the
company’s president U.S. in a statement. “Lily’s is a great strategic complement to
our existing offerings in this growing segment of the confection category.
Lily’s is based in Boulder, Colorado and was co-founded by Cynthia Tice, who
decided to raise awareness about better-for-you foods through Center Foods, a

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natural foods store she opened in Philadelphia in 1978. In 2012, she launched four
Lily’s chocolate style bars nationally in Whole Foods Markets.
Today, the line is sold at retailers across the country catering to consumers looking
for low-sugar candies.
Over the past several years, Hershey has made several deals and acquired brands such
as Brookside Dark Chocolates, SkinnyPop, Pirate Booty and ONE Brands, a line of
low-sugar and high protein bars.
5.3 CONCLUSION
Confectionery Industry is a unique mix with extreme consumption patterns, attitudes, beliefs,
income level and spending. Understanding the consumer demands and maintaining the quality will
be essential. Pricing is the key to make product reach to customer houses.
The share of confectionary industry will continue to increase over the next several years, overall all
sales will remain modest and people will become more cautious about the quality.
The popularity of chocolate products, particularly box assortment for gifts, will continue to increase.
Consumers of chocolates will increase on upcoming years; this will lead to industry development.
Consumers are more attached towards chocolate industry so to attract consumers chocolate
companies will develop new brands that are attractive and tasty. Production and sales of the
companies will increase on upcoming years.
The stunning marketing efforts are nothing short of an exceptional, out-of-the-box spectacle. In it,
lie valuable teachings for any firm aiming to take a toll in the industry, in general, and a marketer,
in particular.

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BIBLIOGRAPHY
BOOK REFERENCE
 Chichester, U.K.: Wiley–Blackwell, Dictionary of food science and technology, 2009
 Davidson Alan, The oxford companion to food , Oxford University Press, 2014
 Chris Smith; Michael Rowlinson, Reshaping work: the Cadbury experience, Cambridge
University Press
 Helmut Maucher, La strategie Nestle, French translation by Monique Thiollet, 1995
INTERNET REFERENCE
 en.wikipedia.org/wiki/Nestl%C3%A9
 en.wikipedia.org/wiki/Cadbury
 www.marketing91.com/swot-analysis-hersheys/
 www.thehersheycompany.com/en_us/home.html
 www.ukessays.com/essays/marketing/competitive-environment-betweenpestel-and-fiveforces-
in-marketing-marketing-essay.php
 notesmatic.com/2019/04/nestle-swot-analysis/