BUS5SMM: Hershey's Marketing Mix & Sustainable Strategy Analysis

This report provides a detailed analysis of Hershey's marketing strategies, with a particular focus on sustainable marketing principles. It identifies Hershey's marketing mix, including product, pricing, distribution, and promotion strategies, and conducts a SWOT analysis to assess the company's competitive positioning. The report explores Hershey's commitment to sustainable sourcing, environmental sustainability, and social responsibility, including initiatives like reducing greenhouse gas emissions, supporting cocoa farmers, and promoting ethical business practices. It also examines the company's corporate governance policies and its efforts to create a transparent and ethical culture. The report concludes that Hershey is making significant strides in integrating sustainability into its marketing and operational practices, contributing to a positive brand image and long-term viability.

Running Head: SUSTAINABLE MARKETING 1
Sustainable Marketing

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Executive Summary
Marketing is important in aspect of business management. It is crucial in increasing the sales and
the market share of the organization. Most of the business organizations adopt comprehensive
marketing strategies and campaigns so that they can develop a loyal customer following.
Currently, the customers give importance to sustainable operations and sustainable marketing
approaches. In the present report, the sustainable and the other marketing practices of the
business organization has been explored. Hershey has adopted several sustainable marketing
principles, which has assisted the company in developing a respectable brand image of the
organization. The report has analyzed that the company is making significant efforts in
sustainable marketing.

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Table of Contents
Introduction......................................................................................................................................3
Identification of Marketing Mix of Hershey...................................................................................3
Product, Promotion, distribution and Pricing Strategy of the Organization....................................3
SWOT analysis and Positioning against Competitors.....................................................................5
Sustainable Marketing Principles of Organization..........................................................................5
Analysis of Sustainable Strategy...................................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

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Introduction
The marketing mix refers to different marketing tools, which are used by the marketing firms to
get achieve a large customer base. The marketing mix refers to the set of decisions, which can
enhance the position of organization in the marketplace. In this regard, the marketing mix of
Hershey in the market has been evaluated. The current report identifies the marketing mix
strategy of the organization. It conducts SWOT analysis of the organization and identifies the
Hershey’s relative and competitive position in the market.
Identification of Marketing Mix of Hershey
Hershey is a leader in the confectionary industry and the US confectionary market has hold a
significant amount of market share due to the focus on strong brand equity, product innovation
and providing high product quality. It has a long tradition of providing high quality products,
which has created brand awareness and brand loyalty among the customers. The top bands of the
company are Kisses, Twizzlers, Reese’s Kit-Kat and Hershey Brand. These are the top candies
and chocolates. By looking at the market share of the organization, it can be identified that the
primary market of the company is in North America. The main competitor of Hershey is Mars;
however, it has established various associations with other companies and sold its branded
chocolates to different countries. Other than that, the company applies micro-marketing concept,
which means that the organization has designed specific products, which are targeted to small
audiences. The company also tailors its product so that it appeals to specific customer section.
Hershey also offers its customized products, although offering them at a high price. It also
predesign arrangements for different festivities and wedding (Wohl, 2018). It also follows the
marketing strategy of holiday marketing. In this strategy, the company follows the strategy of
holiday marketing. In this strategy, it promotes the products, by associating them with the major
holidays of the organization.
Product, Promotion, distribution and Pricing Strategy of the
Organization
In the present section of the report, the marketing mix strategies of Hershey have been discussed.
The product, pricing, distribution and promotion strategy of the organization defines the
marketing proposition and the positioning of the organization in the marketplace. The marketing
mix of Hershey is:
Product Strategy: Hershey is a popular brand, which offers chocolate, candies and syrups to the
customers. There is a wide range of products available at different shape and sizes. The conical
shapes of Hershey’s kisses and hand rolled packaging designed products with appealing
attractions. The company invests in innovation strategy and designs extremely healthy and
delicious products. It has a wide array of products, including candy, gum, chocolate and nuts. All

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the products of the organization can be categorized as premium products, snack products,
refreshment products and confectionary products (Johnson, 2017). The company also emphasizes
product quality and health benefits and provides energy provider drinks. In order to make the
product lucrative and attract more customers, the company provides various packaging and
design and sizes of the product.
Pricing Strategy: The Company has established itself as a premium brand and marks the product
slightly above the market price. The company targets the upper middle class and foreign tourists.
By following premium pricing, the company has achieved a niche place in the market (Johnson,
2017).
Distribution Strategy: The Company does business globally, with a large number of distribution
centers in drug stores, vending machines, gas stations, malls and departmental stores. It also
distributes the products through online portals such as Amazon or eBay. It has a high distribution
network and has a presence in most of the countries.
Promotion Strategy: The Company conducts its promotion through television advertisements,
magazines and billboards. It has high awareness regarding the consumer taste and therefore,
develops products, which can be purchased by every person. The company also organizes events,
in which the public and the students can learn about the chocolate making process. It also
organizes free sample events and chocolate tasting events. Recently, it has also adopted social
media marketing tactics to acquire a large market share (MBA Skool, 2018). The company also
provides recipes for cooking various confectionary items.
The company has appointed Arnold Worldwide to create a fully integrated advertising and
marketing campaign for different chocolate brands such as Hershey, Reese, Kisses, York and Kit
Kat. The company has promoted its brand through multi-faceted programs, which includes
broadcast, print, interactive and public relations.

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SWOT analysis and Positioning against Competitors
Strengths
Brand name
Diversified global business
Long and robust supply chain
Financial sounding (Hershey, 2018)
Innovative product
Brand equity
Weaknesses
Dependence on the USA market
High level of debt
Limited customer service
Criticism due to the purchase of Cocoa
Decreasing margin
Opportunities
Opportunity to enter other marketing avenues
Entry into international market
Developing innovative products
Developing other products
Enhancing its distribution network
Threats
Changes in consumer threat
International competition
Commodity cost
Many small companies (Hershey, 2018)
Counterfeit products
Health awareness
The SWOT analysis of the company revealed that the organization is biggest strength of the
company is the brand name and the diversified product portfolio. The company sells a large
number of products, including sauces, chocolates and other confectionary product. It is one of
the largest and oldest organization in the food product history and famous for innovative product.
However, when compared to the competitors, the organization has limited presence in the
foreign countries. Therefore, according to SWOT analysis, the biggest opportunity for the
company is entry into the foreign market.

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Sustainable Marketing Principles of Organization
The sustainable marketing is an important aspect of the marketing community, which
emphasizes that the business organizations should focus on meeting the needs of the present
generations, without compromising the needs of the future generations (Hörisch, Freeman &
Schaltegger, 2014). It is important for the business community to maintain productivity by
replacing the high value resources with resources of same value or higher value. In the recent
year, the field of marketing has developed drastically. There are several concepts such as
production, product and selling, which are commonly used in the sustainable marketing. The
sustainable marketing refers to developing the customer relationships, while emphasizing
sustainable development (Johnson, 2015). It focuses on establishing and maintaining sustainable
relationships with the customers, social environment and the natural environment.
The sustainable marketing is the strategy of attaining the competitive advantage through
adopting strategies, which are not harmful to the environment. However, there are significant
challenges associated with the sustainable marketing (Lee & Saen, 2012). The sustainability in
the marketing can enhance the competitive advantage by increasing cost saving and innovation
of the employees. Most of the multinational companies are conducting efforts so that they can
segment, target and position the customers with better pricing (Schuler, Rasche, Etzion &
Newton, 2017).
Hershey has realized that for long-term sustenance, the companies have adopted sustainable
approaches. The company will utilize simple and sustainable ingredients in a more transparent
manner. The company recedes from using artificial flavors. The company aims to evolve the
product portfolio of the organization (Windolph, Harms & Schaltegger, 2014). The organization
has also adopted technology so that customers can access extensive product information with a

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single click of hand. The company provides information regarding the ingredients, allergen,
calorie and nutritional information (Formentini & Taticchi, 2016). The company also aims to
provide information regarding the sourcing and the manufacturing of the ingredients.
The company has also observed significant progress in the responsible sourcing of the
ingredients. It has assisted the organization in sustainability of the products and the communities.
In this sustainable sourcing effort, the company aims to enhance the livelihood of the farmers by
providing them with financial and technical assistance (Hahn, Pinkse, Preuss & Figge, 2015).
Over the years, the company has demonstrated its commitment for the environmental
sustainability (Mena, Humphries & Choi, 2013). It reduced the greenhouse emission as the
company controlled deforestation in the supply chain and specifically in the sourcing of palm oil,
pulp and paper.
It has also launched a social campaign of Nourishing Minds, which is the global social purpose
and necessary for enhancing the basic nutrition of children. The values and expertise of the
company is contributing to develop a positive future for the children and the farmers in Africa
(Brockhaus, Kersten & Knemeyer, 2013). The organization also emphasize on providing a better
workplace experience and sense of purpose for the employees.
The company has adopted a shared goodness framework in which the company links its
performance with the sustainable operations of the company (Reefke & Sundaram, 2017). This
model is used to link the operations of the organization with the sustainable operations of the
organization. It creates value for the shareholders, develop their skills, and enhance their
financial skills so that the stakeholders can achieve a better future (Siva,Gremyr, Bergquist,
Garvare, Zobel & Isaksson, 2016).

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The company is heavily dependent upon the farmers in the cocoa-growing community in West
Africa. The company is committed to enhance the livelihood of the farmers and ensure that it
will receive sustainable supply of Cocoa. The company is also trying to establish a traceable
plantation level so that it can guarantee its sustainable efforts (Garza, 2013). The company is
sincere about protecting the natural resource; therefore, it is focusing on the establishing
recycling centers and sustainable waste management practices.
Recently, the company has launched a sustainable packaging approach, in which the company
will reduce the waste, reduce the carbon emission and enhance the sustainability of the
organization. The design of the new product is based on DRC (Display Ready Case) model in
which the retail organizations can reduce the packaging material (Lindell, 2017).
The company follows the corporate governance policies which are formed by the government.
The Board of Directors and the CEO of the organization form policies for evaluating the
performance, strategies and the major decisions of the organization. The Corporate governance
body of the organization of Hershey regulate the operations of the company oversee whether the
company is compliant to the legal and regulatory requirements of the organization (Brandenburg,
Govindan, Sarkis & Seuring, 2014). It has created a transparent culture in the organization and
has transparently shares the compensation of employees, senior executives and CEO of the
organization. The company’s code of conduct is applicable to the directors, officers and the
employees of the organization. The code of conduct of the company addresses several issues
related to the conflict of interest, antitrust, fair trade and establishment of a sustainable supply
chain (Azadi, Jafarian, Saen & Mirhedayatian, 2015). The company also expects that all the
employees operate by this code.

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The company also encourages reporting of ethical concerns to the management of the
organization. There are a large number of communication channels available so that the
employees can access the higher management in an easy manner. In its annual report, the
company has shown its commitment towards shared goodness (Touboulic & Walker, 2015).
With its actions, the company is showing its commitment towards environmental stability,
providing support to the local community and including simple and healthy ingredients in all of
its products.
The company is also a promoter of diversity. It understands the importance of supporting
different types of business for stimulating the growth of the business. It has established supplier
diversity programs to foster diversity at the workplace. The organization has formulated policies
to enhance strong relationships with the business owned by minorities, women and
disadvantaged (Genovese, Acquaye, Figueroa & Koh, 2017). The company provides
procurement and business opportunities to the minority businesses.
The government regulators, health officials and the consumers have become more concerned
about the importance of healthy eating. The company should have the responsibility to provide
balanced and healthy eating to the customers (Starik & Kanashiro, 2013). In the product side, the
company is focusing on the sugar-free versions of the employees. Another improvement in
product development of Hershey is that it is developing products according to the calories and
portion control. It is an effort towards promoting healthy eating, weight control and exercise
among the employees (Schaltegger, 2011).
The company has designed a nutrition labeling so that consumers can control their nutrient
intake. Therefore, the company helps the consumers in making informed decisions.

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Another initiative in sustainable development of the organization is creating marketing efforts
with integrity. Hershey Company shows its commitment towards transparency and product
value. The company has established communication channels for marketing and advertising
products to the consumers. In the recent years, the company has designed several engaging
advertisements and published them in different media channels, such as broadcast, radio and
television (Hörisch, Freeman & Schaltegger, 2014). Moreover, it has shown its commitment
towards sustainable marketing. It provides factual and authentic information and recoil from
misleading advertisements (Hershey, 2009).
Analysis of Sustainable Strategy
The company has adopted significant principles in strategies for the sustainable marketing and
operations. It has presence in different sustainability indices and its ranking is continually
growing over the years. It has made substantial efforts in the global corporate social
responsibility efforts and made significant strides in the sourcing and improvement of basic
nutrition.
It is also establishing different milestones in adopting certified and sustainable cocoa. The
company has also developed supply chain to obtain certified and sustainable cocoa required for
the global production of its chocolate brands (Salzmann, Ionescu-Somers & Steger, 2005). The
company has also made several training and educational program efforts, which is necessary for
the long-term future of cocoa production.
The company is also striving to connect its social programs with its expertise so that it can
benefit the community as a whole, with its food production abilities (CSP, 2015).