Analysis of the Marketing Plan for Hershey's Kisses Chocolate

This report provides a detailed marketing plan analysis for Hershey's Kisses chocolate, focusing on its implementation in the Australian market. It begins with an executive summary and an introduction to the Hershey Company, highlighting its global presence and product offerings. The report includes a situation analysis, examining the external market factors influencing Hershey's operations in Australia, followed by a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It outlines marketing goals and objectives, incorporating SMART goals, and discusses segmentation, targeting, and positioning (STP) strategies. The report also covers marketing strategies, including the marketing mix, and concludes with a contingency plan and references. The analysis explores competitive advantages, market trends, and consumer behavior to formulate effective marketing approaches for the Kisses brand.

Running head: MARKETING MANAGEMENT
Marketing management

Marketing management
Executive summary
The main aim of this task is to outline and explain the marketing plan for kisses chocolate which
is one of the attractive brands of Hershey Corporation. It is the continuation part of the
assignment one. The organization provides wide range of chocolates and other beverage products
in the international market. Hershey Corporation is still leading producer and manufacturer of
excellence chocolate in the North America as well as a global leader in sugar and chocolate
confectionery. Here is the discussion about the mission, vision, marketing objectives and
strategies of Hershey Company. It shall be noted that the firm ships its kisses chocolates in more
than 50 countries worldwide. The paper explains that how Hershey gain competitive advantages
within the organization.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Situation analysis.........................................................................................................................................5
SWOT analysis............................................................................................................................................6
Marketing goals and objectives...................................................................................................................7
Segmentation, targeting and positioning......................................................................................................8
Marketing strategies....................................................................................................................................9
Monitoring and control..............................................................................................................................11
Contingency plan.......................................................................................................................................12
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
Appendices................................................................................................................................................16
Performance of Hershey Company............................................................................................................16
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Marketing management
Introduction
Hershey Company is one of leading companies in the United States which is incorporated by
Milton Hershey. The organization is a leader in the world of kisses chocolate. Furthermore, here
is the discussion about the marketing plan which is implemented by the organization for
promotion and selling of the kisses chocolate in Australia. It has been noted that Hershey has
become a global leader in the field of collaborating and co-branding with other organizations to
create a new products and services. With innovations and effective strategies, the company has
been able to handle the obstacles and issues of the marketplace. Kisses chocolate product has
been selected in the task. It is one of the attractive and well known brands of the firm. The report
also focuses on the Australian external market that could affect the progress of the firm. The
paper explains the situational analysis that is done by Hershey in the Australian country to
implement a new marketing plan in the marketplace (David, 2011). Marketing objectives,
segmentation, targeting, positioning (STP) strategies and marketing mix strategies have been
explained in the task. Lastly, an appropriate budget is made by the company to initiate the
business activities and operations successfully. Marketing plan is made by the company in an
effective way so that it helps in estimating the future risks and challenges in the competitive
market. Also, it will help to stand out against the rivalries and further will help in making a
strong and attractive image in the eyes of the consumers. More detail of the task has been
detailed below.
The chocolate industry is growing and leading worldwide. Hershey Company is well-known
food Corporation with its headquarter is located in Hershey, Pennsylvania. The company was
incorporated in 1894 in the United States. They have three mega-distributors’ centers with labor
management systems and modern technology (Harsheycompany, 2018). The company’s
products are sold in more than 60 countries across the world. Hershey chocolate is available
across the United States due to their wide and attractive network of distribution. The
organization is a member of the world Cocoa foundation. Apart from this, it is associated with
Giant center and Hersheypark stadium. The core values include collaborate, deliver, develop,
question, innovate and inspire (Harsheycompany, 2018). It has been analyzed that Hershey is a
global leader in the global market. The organizational structure of Hershey is unique and strong.
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Marketing management
The organization produces a list of a variety of chocolate products and services in the
international market. Teenagers, professionals, and children are covered in the target market of
the firm.
Situation analysis
The situation analysis refers to a collection of methods, and tools that managers use to analyze
and evaluate an organization’s internal and external environment to understand and evaluate the
organization’s capabilities, business, customers, and environment (Thiele and Lehner, 2012).
This analysis helps to know and evaluate the marketing trends and preferences of the customers
in the Australia. Along with this, it analyzing and identifying the needs and requirements of the
wide range of the customers across the world (Kizil et al, 2013). SWOT analysis, pestle analysis,
and porter five forces analysis are done by Hershey company to initiate the marketing plan in the
Australia. The porter five forces analysis has been discussed below.
Threats of new entrants: It shall be noted that threats of new entrants are low because of the
existence of the economies of scale and changes in the needs and requirements of the consumers.
These elements determine the position of the competitors in the Australian country (Porter,
2011).
Bargaining power of suppliers: It has been analyzed that bargaining power in the hands of the
suppliers is quite high because of the wide range of suppliers of the chocolate industry is limited
and there is no substitute products are available in the market as well. The company needs to find
and evaluate the best alternate locations and different techniques for gaining cocoa beans.
Bargaining power of buyers: It is seen that bargaining power of buyers is low to moderate. The
large market retailers can bargain for cheaper prices and eliminate the industry’s profits but the
distinguished products and services remarkably eliminate the power of buyers (Wheelen and
Hunger, 2011).
The intensity of the rivalry among the competitors: The intensity of the rivalry is high in the
global market that could affect the profitability and revenue of the firm. The company operates
and manages in a very competitive confectioners industry. This competition may influence the
outcomes of the organization adversely (Taghavifard et al, 018).
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Marketing management
Threats of substitutes: It has been noted that threat of the substitutes in the chocolate industry is
moderate that could hamper the image of the firm in Australia. Many companies are producing
the similar products and services as compared to Hershey. Apart from this, threats of unhealthy
image of chocolate products among the customers in the global market. It is noted that Hershey
needs to focus on the porter five forces analysis to beat the competitors (ALAmeri, 2015).
SWOT analysis
SWOT analysis stands for strengths, weaknesses, opportunities and threats. This analysis is done
by the company to analyze and identify the opportunities and threats of the firm (Mohapatra,
2012). The SWOT analysis has been detailed below.
Strengths Weaknesses
 Hershey is one of the biggest and oldest
chocolate manufacturers in North
America.
 The strong brand name is one of the
biggest strength of the firm.
 Effective and unique promotional
strategies are used by the company.
 Effective supply chain, unique products
and latest technology.
 Online advertisement and promotional
strategies are initiated by the
organization.
 Strong public and social image through
the school for orphan kids.
 Diversification is one of the effective
strengths for Hershey.
 Price inflation is one of the biggest
weaknesses for the firm.
 There has been a recent reduction in the
Asian market.
 Chocolate is not considered a healthy
and delicious snack and the population
is becoming health conscious in today’s
competitive world.
Opportunities Threats
 International expansion and
development can increase the business
 Intense and high competition in the
global market.
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Marketing management
sales and revenue.
 Improvement and enhancement in
distribution.
 To gain benefits of the holidays such as
Valentine’s Day.
 Expansion of the cocoa products in
various countries.
 Rising prices of sugar and milk.
 Changes in tastes, preferences, and
choices of the consumers.
 Rising occurrences of diabetes and
obesity.
Marketing goals and objectives
SMART goals are used by the Hershey to initiate the marketing plan in the Australia. SMART
stands for specific, measurable, achievable, results-oriented and timed. Hershey Corporation has
set some of the specific long term goals and objectives in order to attain mission and vision in the
competitive market (Lamb, Hair and McDaniel, 2011). Rising marketplace competition is
significantly impacting Hershey’s business activities and results in the country. The organization
wants to maximize the expenditures, for advertisements, promotions and continue to introduce
and establish the new products and services. The foundation of the company marketing strategy
is their unique and strong brand equities, best quality of the products, product innovation, mass
distribution capabilities and manufacturing expertise. The company stimulates the sales of
specific products with promotional campaigns and programs at various times throughout the year
(Boone and Kurtz, 2013). The marketing objectives of Hershey for marketing plan are elaborated
below.
 To increase sales through promotional campaigns and programs planned through the year
during the holiday seasons.
 Continue to explore globally and have a stronger presence in the oversee market with a
reduction in their reducing Asian market.
 Promote and encourage their core brands like kisses through numerous magazine ads and
TV.
 To leverage existing products to innovative markets and customers through the new
collections of the products and services in the Australia.
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Marketing management
 Making up 10 profit rate each year in an effective way by valuing and protecting the
rights and interest of the stakeholders and workers while maintaining the customer’s
morality and loyalty.
 By raising the sales percentage by maximizing the manufacturing rate of the core brands.
 Introduction of tasty and delicious chocolates in local markets through innovation in
research and development.
On the other hand, the main goal of Hershey is to attain desired long-term goals and objectives in
the Australian market. From the above-mentioned marketing objectives, it has been analyzed that
the overall objective of Hershey is to expand and flourish the business globally with its products
penetrating into the local markets. It will help to attain loyalty and confidence of the workers in
the international market. The other aim of the company is to attain people’s satisfaction of
feeling pleased and looking good. This can be possible by rendering the tasty kisses chocolates at
appropriate prices. Hershey takes each and every action after considering the values and beliefs
of the consumers (Grifoni,’Andrea and Ferri, 2012).
Segmentation, targeting and positioning
Segmentation is the process of dividing the market into submarkets to accomplish the long term
goals and objectives. It is the process of identification and analyzing the buyers for kisses
chocolates within a market who share their similar needs and buying behavior. The main aim of
the segmentation is to match groups of buyers with the same bunch of needs, requirements and
buying behavior. The kisses products are segmented on the basis of demands and preferences of
the Australians. It has been noted that Hershey needs to promote and inspire the health benefits
of their kisses chocolate product. It also helps in changing the minds and thinking of the
consumers as to chocolate being an unhealthy snack.
Target marketing strategy is also a unique strategy that increases revenue and profitability as
they want in the competitive market. It is analyzed that consumers change their needs, tastes and
preferences for the kisses product, thus it is not surprise that consumer’s wants for kisses
chocolate has changed as well. They want high variety which ensures the industry to flourish and
expand on their product line. This provides a wonderful opportunity for increasing and
enhancing the sales and profitability of the new products. The main target group of Hershey in
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Marketing management
Australian includes children and adults who want to eat chocolates highly. After the various
researchers, it has been stated that Hershey focuses and analyzes the expectations and
requirements of the target market to cope with the competitors in the Australian market.
One of the empirical and important strategies that used by Hershey is positioning strategy that
maximize the outcomes and minimizes the risks of the market. Positioning may be defined as the
image of a specific product or service as seen by the consumers that are generated by the
marketers through advertisement and promotional activities. An effective and attractive
positioning builds and develops an image of in the minds of the customers across the world. It
has been noted that differentiation and positioning in the product will create a great image and
value proposition for the business and helps to gain a competitive benefits that eliminates the
competition.
Marketing strategies
Some of the marketing strategies to implement a marketing plan for attaining long-term mission
and vision have been stated below.
Market penetration strategy: One of the significant strategies for Hershey is market
penetration that helps to beat the competitors in the Australian country. Through market
penetration strategy, Hershey is able to focus on the selling of the existing products and services
to gain a higher market share globally (Blowfield and Dolan, 2014). Under this strategy,
effective and dynamic actions are taken by the firm to expand and flourish the business actions
and operations in the dynamic market. It will also increase the sales and profit percentage of the
firm. By using this strategy, the organization has been able to focus and evaluate the plans and
policies of Hershey. The market augmentation can be done by simultaneously the market with
market penetration and product innovation (Keller, Parameswaran and Jacob, 2011).
Market development strategy: Hershey is unique and extending the practically of its market
expansion and development strategy by controlling and stimulating the product innovation and
R&D sector for the kisses chocolate in the international market. Market development for
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Marketing management
Hershey Company becomes more incorporated with the company’s acquisitions, partnerships
and expansion. Thus, Hershey is also focusing and analyzing all these respects (Manza, 2014).
Diversification strategy: The kisses chocolates provide satisfaction to the consumers because
these chocolates are made in different tastes. The company focuses on the diversification strategy
to differentiate its products from the competitors. The products can be rendered at a higher
competitive price (Gautam and Agarwal, 2010). The company created a new product such as
kisses chocolate that was diverse. The organization produced the new products such as kisses
chocolates in order to meet the demands and requirements for multi textural eating experiences
and various snacking occasions. One of the significant benefits of the diversification strategy is
increasing performance and productivity. Diversification strategy improves and eliminates the
risks and challenges of the Australian country (Raphan and Friedman, 2014).
Marketing mix strategy: The marketing mix is one of the effective and dynamic strategies that
can be used by the firm while implementing a marketing plan effectively. The marketing mix for
Hershey has been detailed below.
Product: Hershey is a popular brand which renders kisses chocolates and other sweet syrups and
sauces. The wide range of products and services are available in different features, size, and
shapes. The conical shape of the company’s kisses chocolates helps in attracting and retaining
the potential customers in the country. Rapidly product innovation in its marketing mix strategy
has supported the company to grow and flourish the business over the last few years. The kiss
chocolates are positioned as health and tasty for growing kids. The products of the firm include
kisses, Kit Kat, Almond Joy, Icebreakers, Bubble Yum and Rolo. If the company makes the plan
to sell the kisses chocolates in the Australian market it needs to focus on the product strategy in
such country (Santos-Vijande, López-Sánchez and Trespalacios, 2012).
Price strategy: Hershey is the biggest and well-known brand and charges higher prices as
compared with other competitors. The organization focuses on the requirements and needs of the
customers to increase and enhance the sale of the kisses chocolates. It targets foreign tourists,
children, upper and middle-class people who want to eat kisses chocolates. The prices vary from
$10 to $50. The company set the prices of kisses chocolates after considering the choices and
needs of the consumers. Along with this, Hershey identifies and focuses on the prices of the
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Marketing management
rivalries to maximize the number of clients in the marketplace. The organization sets the prices
of the kisses chocolates after considering the features and quality of the products in the Australia.
Promotion strategy: One of the significant strategies that help to increase and improve the sale
of the kisses chocolates in Australia. The company can use effective promotional and
advertisement strategies to promote the kisses chocolates in such country (Drewniany and
Jewler, 2013). Promotion is done by Hershey through TV ads, Billboards, Magazine. The
organization mission is to create delicious and tasty chocolate that might be enjoyed by everyone
globally. The firm is also promoting its kisses chocolates through advertisement by print media
and electronic media. Apart from this, the organization offers various types of schemes such as
sales and premium packs to attract a large number of the customers in the marketplace (Savitz,
2013).
People strategy: It has been noted that Hershey maintains effective and dynamic management
team to handle and manage operations and activities in the country. Effective leadership styles
shall be used by the leaders to motivate and encourage the employees for performing tasks and
duties in a hassle-free manner. Having an effective and unique team leads to increase
productivity and effectiveness of the organization as well as employees. No company can survive
and grow its business activities without maintaining an effective workforce at the workplace. It
has been stated that the company should enlist an effective and potential workforce to increase
sale and minimize the additional cost of the firm.
Physical evidence: Before purchasing the kisses chocolates and any other food products,
physical evidence shall be collected by the consumers. It will distinguish the products and
services of Hershey from the competitors (Kimmel, Weygandt and Kieso, 2010).
Monitoring and control
After making the initiating the strategies, monitoring and control are done by the company to
earn maximum outputs and returns. The monitoring and control by Hershey Company is
effectively and successfully carried on through the balance control card method monitoring and
analyzing the four perspectives including internal perspective, financial perspective, customer
perspective and innovation and learning perspective. Effective and unique supply chain
management and control activities shall be used by the company to implement the marketing
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plan successfully and effectively in the Australia. Besides this, budget also plays a critical role to
make marketing plan in a hassle-free manner. A budget is decided by Hershey Company in
marketing strategies and programs (Doyle, 2011).
Contingency plan
Since Hershey has been able to make a strong and unique financial position in the global market.
To develop and implement a contingency plan for kisses chocolate, the organization would likely
to improve and enhance the campaigns and programs in the marketplace. It will help to tie up
with public relations firms.
Conclusion
From the above mentioned analysis, it can be concluded that Hershey Company is one of the
biggest chocolate leaders in the North America. Also, it is one of the oldest US manufacturers of
chocolate and non-chocolate confectionery related to the grocery products and services. The
company produces its chocolate products according with their mission statement. Chocolate Bar,
Kit Kat, Hershey’s kisses, Almond Joy are main brand of the company. The above mentioned
shows that how the firm makes an effective and unique marketing plan for selling of the kisses
products and services in the international market. It is the second part of the assignment which
provides information about the marketing plan of Hershey Company. It shall be noted that
situational analysis such as SWOT analysis, pestle analysis and porter five forces analysis are
done by the company to evaluate and identify the opportunities and threats of the market as it
also helps the organization to eliminate and reduce the risks and challenges of the marketplace.
To implement marketing plan successfully, SMART goals are set by Hershey Company and
further dynamic strategies are initiated by the organization to promote and encourage the kisses
chocolates in the global market. Apart from this, effective budget is made by the Corporation to
implement the unique marketing plan for development and promotion of kisses chocolates.
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