Marketing Strategy Report for Hershey: Analysis and Recommendations

This report provides a comprehensive analysis of Hershey's marketing strategy. It begins with an introduction to marketing strategy and its importance for businesses, followed by an overview of Hershey's operations. The report then delves into an environmental analysis using the PESTLE framework to identify political, economic, social, technological, legal, and environmental factors affecting Hershey. It evaluates Hershey's current marketing strategy, comparing it to competitors like Cadbury, and analyzes its unique selling proposition (USP). The report examines Hershey's competitive advantages, highlighting its market position and key competitors. Furthermore, it explores product rationale, segmentation, targeting, and positioning strategies. It outlines marketing objectives and goals, and identifies potential marketing strategies for Hershey, concluding with recommendations for future growth, such as the production of choco fill biscuits to capture a larger market share. The report's limitations include the absence of a specific best strategy for product expansion. The report also includes tables comparing Hershey and Cadbury's marketing mix.

Marketing Strategy

Executive Summary
This report contains information about concept of marketing strategy and how it helps
enterprise in achieve its set goals and targets. BCG matrix is used under this approach for
analysis and to find out the products which contribute a lot in financial growth of Hershey. Main
finding of this report is that Hershey can go for the production of choco fill biscuits in order
capture a larger market share. For achieve its set goals and targets various promotional tools are
there which can be use by Hershey. Main limitation of this report is that it does not help in find
the best strategy which must be choose by Hershey for doing expansion of its products.

Table of Contents
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
Environment analysis..................................................................................................................1
Evaluation of current marketing strategy....................................................................................3
USP analysis of Hershey.............................................................................................................5
Analysis of organisation competitive advantage.........................................................................5
Part 2................................................................................................................................................6
Product rationale and specification.............................................................................................6
Segmentation, targeting and positioning.....................................................................................8
Marketing objectives and goals...................................................................................................8
Identification of marketing strategies..........................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing strategy is known as a approach which is use by enterprises for planning to
achieve its goals and competitive advantage (Marketing Strategy, 2017). Basically it is a forward
looking and long term approach. This is use by organisation to introduce their new products in
market and to make the customers inform about its existing products and features (Baker, 2014).
Most individuals thinks that marketing strategy is just a marketing plan but both are different
from each other as marketing strategy focuses on what company want to achieve for its success
and on its marketing efforts. Hershey is one of the biggest manufacturer and provider of various
type of confectionery items such as sugar candies, chocolates and many more is taken under this
report for study. Its products are sold in more than 60 countries in the world. Company was
founded by Milton S. Hershey in 1894 and its headquarters are in Hershey, Pennsylvania.
Environmental analysis of Hershey chocolate company and information about its marketing
strategy is all given under this report. STP approach of enterprise and marketing objectives and
goals of Hershey firm is also included in this. In addition to this, marketing strategies and
competitive advantage of Hershey is all mentioned in this.
Part 1
Environment analysis
Success of an enterprise largely depend on how it sense and respond to the conditions and
variations which takes place in business environment. These represent the opportunities and
threats of firm (Bar‐Isaac, Caruana and Cuñat, 2010). For review environment, it is very essential
for an individual to first understand the connection between different issues and problems with
each other. For this there is a approach called PESTLE analysis which can be use by company as
this consists political, environmental, social, technological, legal and economical factors which
affect business process of company.
PESTLE analysis
This is a framework which is use by managers to evaluate the external environment in
which company operates. This consists elements which are not in the control of company and
serve to enterprise in form of either opportunities or threats. All these factors remain different
form country to country. One of the main benefit of using this approach is that it helps firm to
summarise the external environment in which it operates.
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Political factors: These factors play a important role in identify the main elements which
which directly affect the success and long term profitability of company. Hershey is
operating in various countries and has expose itself to various system risks
and political environment (Berthon and et. al., 2012). For achieve success in
confectioners sector it is very essential for Hershey to diversify all its
operations in an effective way. In order to achieve its set goals and
objectives and to get effective execution of its business operations it is very
essential for Hershey to evaluate the following factors:
 Significance of confectionery sector in the country in which it wants to
expand and political stability of that country.
 Interference of government in confectioners industry.
 Corruption, intellectual property protection and legal framework. Tariffs and regulations related with consumer goods
Economic factors: Various elements such as interest rate, inflation
rate and savings rate all affect the average investment in a country
(Bhattacharya, 2010). Before take a decision to expand in a specific country
major elements which must be use by Hershey chocolatey company include
growth rate, spending power of consumers and growth indicators of
confectionery industry. In addition to this, main factors which must be
consider by Hershey include the following:
 Type of economic system in which its operates and its stability.
 Intervention of government
 Stability of currency of its host country and exchange rates.
 Quality of infrastructure in confectionery industry. Skills of workforce and labour cost.
Social factors: Culture of society and beliefs and attitudes of
population of a country play a big role in which way marketers of enterprise
understand customers. Major factors which must be use Hershey chocolate
company are as follows:
 Culture and attitude of individuals.
 Education and power structure exist in society.
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Technological factors: Technology play a big role in success and
growth of an enterprise. For achieve its set goals and objectives, it is very
essential for Hershey chocolate company to use updated technology to
make manufactures chocolate and sugar candies. Further, technological
analysis consists the following elements:
 Development in technology by rivals of Hershey firm.
 Impact of technology on the goods which company offers to its customers. Technological diffusion.
Environmental factors: Every market has its own standards and environmental norm
which affect the growth and long term profitability of organisation (Chaffey and Ellis-Chadwick,
2016). Main elements which must be evaluate and consider by Hershey company consists the
following:
 Climatic conditions and weather of country.
 Regulations and laws related with environment pollution and recycling. Management of waste and attitude towards support renewable energy.
Legal factors: This consists the legal framework which affect the business process and
activity of a company. Major elements which must be analyse by Hershey chocolate company
include the following:
 Employment law, health and safety law.
 Discrimination law and consumer protection.
Evaluation of current marketing strategy
Basis Hershey Cadbury
Product Hershey is a popular and big brand
which offer different type of
chocolates, candies and sweet
syrups to its customers(Crane,
Kawashima and Kawasaki, 2016).
Various type of products are
available in different sizes and
shapes. Continuous innovation in its
products help enterprise in attract
Product range of Cadbury is very large.
Different products offer by Cadbury are
classify as per the seasons as number of
standards products are there. Products of
Cadbury are not just relate to chocolates
but there are various other products like
beverages, deserts and many more.
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more number of customers and at
the same time contribute more in its
growth. Firm enjoy a position of
enterprise which offer healthy and
delicious food for growing kids.
Price One of the main feature of Hershey
is that it is a premium brand and
that's why it charges high prices as
compare to other chocolates
enterprises available in market.
Main target of this is foreign tourists
and population which belongs from
urban middle-class.
Prices of Cadbury products are high as like
their quality. Pricing strategy of Cadbury
is largely depend on competition, packages
and demand of its product in market. Firm
has place its pricing strategically in a way
that every market segment can be met.
Place Products of Hershey are available
globally in drug stores, grocery
stores, malls, vending machine and
many department stores. Further,
one can purchase the same online
from eBay, Amazon and many
more. Strong distribution channel of
enterprise of enterprise help it to
reach many countries and serve
large number of customers. Its
distribution channel covered almost
every major city.
Products of Cadbury are available all
around the globe. Effective distribution
channel is the main reason impact which
Cadbury has impact in the world. This is a
popular brand worldwide in more then 200
countries.
Promotion Promotion of various products of
Hershey is done with the help of
magazine, TV ads and billboards.
Mission of enterprise is to create
and offer delicious chocolate items
Cadbury use variety of ways to promote
itself in world. Marketing of its products is
done through posters, Television, radio and
online. Further, enterprise use various type
of tag line attach with its products which
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so that everyone can enjoy it. influence customers to buy the same. In
addition to this, various brand ambassadors
for its different product help firm in create
a impression in mind if public.
People Number of skilled workers work
with enterprise which help
enterprise in manufacture quality
products and help in better satisfy
the needs of customers. Further,
skilled workers ensure effective
execution of every business activity.
Various type of employees from different
background do efforts and help enterprise
to offer quality products to its customers.
Process This context of marketing mix is
relate with the process starts from
manufacture quality products and
hand over the same to customers.
This indicate the procedure which company
follow to serve more number of customers.
Physical
Evidence
This indicate the physical
presentation and mood in which
sales takes place.
This is relate with the sensory experience
of a product which help customer to
measure the total value he received.
USP analysis of Hershey
Unique selling proposition is known as the feature which a company offer to its
customers and that can not be offer by its rivals. This provide competitive advantage to company
and help in attract and serve more number of customers. USP of Hershey is that it offer quality
and various type of chocolates products to its customers. This help enterprise in attract more
number of customers and retain them for long period of time (Fulgoni, and Lella, 2014) . Further,
firm can carry out research in order to make its products more effective as this will increase sale
of its products.
Analysis of organisation competitive advantage
Hershey is one of the most popular brands in US. This is probably the first enterprise that
pops in mind of every individual when they think about chocolate. Own brands of Hershey
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accounted for 44.1 percent of retail chocolate sales of US. Popular brands of Hershey include
Reese. In addition to this, Hershey has a strong in market next to its rivals Mars. Management of
Hershey has done a effective job in managing the candy juggernaut which provide various
benefits to firm and increase the number of its profits.
Top three competitors of Hershey are Mars, Nestle and Mondelez International. In US,
this firm is popular and being known for offer quality chocolate at lower prices. Whole industry
of chocolate can be into various categories such as chocolate, gum, mouth freshener, non
chocolate and mint markets and Hershey is involve in all this. Main focus of Hershey is on
chocolate market and it does not have so many products that fall in refreshment and non
chocolate categories (Hollensen, 2015). In US, Hershey has a market share of 43 percent which
is more than market share of Mars Inc. In order to remain significant in confections industry, it
is very essential for Hershey to find new ways to differentiate itself from all its rivals. Firm sell
various type of chocolate and peanut butter cups. In order to get loyalty of customers and to
remain them for long period of time, it is very essential for firm to develop strong brand
recognition. To achieve the same, it is very important for Hershey to find the right balance
between quality and price for every market in which it serve. From more than 120 years, firm has
been committed to do good business as this do and operate business fairly and ethically and this
help in make a make a positive impact on society. All this ensure and contribute a better better
life for consumers, workers and communities and ultimately create a better future for children.
Overall, firm is very popular and effective as this offer high quality chocolate products to
its customers. In order to get more advantages, it is very important for firm to do continuous
efforts to to find new ways to serve its customers.
Part 2
Product rationale and specification
BCG matrix was developed by Boston consultancy group whose main aim and focus was
to help enterprises to differentiate between profitable and non profitable products. One of the
main feature of this is that it help organisation to collect information about growth potential of a
particular product and about market share. All this help firm to take investments decision and to
get maximum results in favour (Kapferer and Bastien, 2012). BCG matrix is based on a concept
which consists four elements known as cash cows, stars, dogs and question marks.
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Illustration 1: BCG matrix
(Source: BCG martrix, 2010)
All these elements can be better understood by following points: Cash cows: This category covers those products which provide financial strength to firm.
These products are known as high performing products in past and has gain a large
market share. BCG matrix shows that these type of products has small scope of
development. One of the main feature of these type of products is that they provide
various number of benefits to company as this ensure continuous revenues and sales of
company's product. Reese's PB cups, Hershey's chocolate and Reese's mini cups of
Hershey company come under this. Stars: This category cover the products which can be differentiated from products of cash
cows on basis of growth potential of enterprise. These type of products enjoy high market
share, the industry is still growing which indicate the chances of increase profits and sales
of enterprise (Lorenzo-Romero and Constantinides, 2013). Company can capture a larger
market share by doing focus on production of these type of products as demand of these
products are high in market. These products can be develop to an extent and these can be
become cash cows for enterprise by gain high market share. Hershey's with almonds is
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the product of firm which come under this category. Firm require to think on this in order
to make it a cash cow and same can be achieve by company by add some flavours in it. Question marks: These indicate the products of firm that fails to being a sources of
financial stability of for company. These type of products always remain in uncertain that
these would contribute in financial success of enterprise or not. This is the main reason
why these type of products are known as question marks (Morgan, Katsikeas and
Vorhies, 2012). If these products have improved financial performance they can be stars.
As industry has high rate of growth so these type of products have a chance to gain
financial improvement. Air delights of Hershey is come under this. Sales volume of this
product has declined and this pushing the firm in financial obstacles.
 Dogs: This component of BCG matrix consists those products which fails to produce the
return on investment. Low ROI encourage managers to delete these type of products from
portfolio. One of the main reason behind why these products not perform well is that
industry indicate a slow pace of development. All this reduce the firm's chances to
capture a larger market share. Mr. Goodbar of Hershey is come under this.
At present, Hershey offer variety of chocolates and candies to its customers. In order to
capture a larger market share firm can starts production of choco filled biscuits. In this way,
when firm will offer new products to its customers then this will help enterprise in attract more
number of customers and not not this, this will also increase profits of enterprise (Varadarajan,
2011). It is very important for enterprise to first various aspect which will affect the production
of choco filled biscuits. In order to achieve success of this new product company can for for a
approach called STP as this help enterprise in do segmentation, targeting and positioning of its
products.
Segmentation, targeting and positioning Segmentation: This is the process of identify buyers in a market who share same kind of
needs and interests (Varadarajan, 2010). One of the main feature of segmentation is that it
helps enterprise to match the groups of buyers having same kind of needs. For segment
the market for its new choco filled biscuits, it is very essential for Hershey to first
analyse whether the market is viable or will make profits for enterprise or not? Further, it
is also necessary to evaluate is the market is accessible or measurable or not? Main
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segment of Hershey for choco filled biscuits could be the children and adults which are
conscious about quality. Target: Preferences and needs of customers change on a constant basis and like the same
wants of them for chocolate and various products related with its also change. All this
enable enterprise to expand its current business line and along with this provide an
opportunity to increase sales of its product (Nath, Nachiappan and Ramanathan, 2010).
For choco fills biscuits, target group of Hershey could be youth form middle class people
and upper class people.
 Positioning: This is define as the specific image of a specific product or service seen by
customers which is created by marketers with help of various promotional activities. An
effective positioning helps in build up the positive image of enterprise in mind of various
individuals. By use various mixture in company can get a position of aromatic vanilla and
cocoa.
With help of this approach, Hershey achieve success of its choco fill biscuits and at the same
time can capture a larger market share.
Marketing objectives and goals
 Marketing objective of firm will be to attract more number of customer towards its new
product.
 Marketing goals of company will be to increase the number of its profits.
Identification of marketing strategies
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