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Choclate industry 2011
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HERSHEY’S CHOCOLATE
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Content
IntroductionIndustry overviewExpansionCompetitorsMarket share4P’sVisit to retailer
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CHRONOLOGY
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1894:Milton Hershey decided to produce sweet chocolate
1898: adapted a new symbol
1900: milk choclate bars , wafers
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CHRONOLOGY (contd)
1907: Kisses 1925:Goodbar1926:syrup1927: Hershey goes public1945: Milton Hershey died
1956 : Reese Candy company acquired
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CHRONOLOGY (contd)
1963: SMITH FALLs(first plant outside Pennyslvania)
1965: third plant -Oakdale, California1966: acquired San Giorgio Macaroni and Delmonico Foods1968: Nationwide consumer advertising
campaign 1983: Krackle launched
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CHRONOLOGY (contd)
1986: started (first ever)Product Placement Reese's Pieces on E.T.
1990: acquired Ronzoni Foods
2005: name changed to “Hershey Chocolate Corporation”
& ……….
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NOW…….
oExport in over 90 countriesoNet sales $4billiono13700 employeeso10.7 $BILLION MARKET CAP OF HERSHEYoPresident, CEO, and Director:- David J. (Dave) West
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VALUES : Commitment to health & wellness
MISSION: Bringing sweet moments of Hershey happiness to the world every day
VISION :Eat lots of chocolate and you'll be able to see better."
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Hershey Trust Company
Milton Hershey School
(non-profit)
Milton Hershey School Trust
M.S. Hershey Foundation
Hershey Foods Corporation (31% owned)
Hershey Entertainment and Resorts (100% owned)
Hershey Theatre
Hershey Museum
Hershey Gardens
Hershey Community Archives
The Players
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HERSHEY CHOCLATE WORLD
VIDEO 1
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GROSS TURNOVER
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INDUSTRY SIZE
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o The global confectionery market was valued at approximately $147 billion USD in 2008, an increase of 3.2% over 2007
oSales of chocolate confectionery are expected to more than double from INR26.9bn in 2009 to INR54.98bn in 2014 (63m tonnes in 2009 to 127m tonnes in 2014).
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INORGANIC EXPANSION
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2004-Mauna Loa Macadamia Nut Corp. from The Shansby Group
2005-Berkeley, California based boutique chocolate-maker Scharffen Berger
2005-Joseph Schmidt Confections, the San Francisco based chocolatier
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INORGANIC EXPANSION
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2006- Dagoba Organic Chocolate based in Ashland, Oregon.
2007 - JV in India with Godrej Beverages & Foods Ltd.
2009 - Van Houten consumer chocolate business
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COMPETITORS
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COMPETITION (till 2009)
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S.NO COMPETITOR NET SALES (approx)
NO. OF EMPLOYEES
FACTORIES WORLDWIDE
1 MARS INC(VIRGINIA USA)
$16.50B 65000 1353
2 KRAFT FOOD CO.(ILLONOIS ,USA)
$14.4B 90000 1683
3 NESTLE SA(VEVEY, SWIZERLAND)
$11.83B 283,000 4563
4 CADBURY(LONDON UK)
$8.81 B 47000 64
5 HERSHEY(PENNSYLVANIA USA)
$ 6B 13000 13
SOURCE: http://www.top5ofanything.com/index.php?l=1365
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MKT SHARE-BY VOLUME
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MKT SHARE-BY share(global)
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MKT SHARE-BY SHARE (U S)
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P O S I T
I O N
I N G
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PRODUCTS
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HERSHEY offers in its product
Variety
Quality
Design
Brand name
Sizes
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PRODUCTS
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PRODUCTS
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PRODUCTS
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PRODUCTS
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NUTRITION VALUE
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PRICE
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• Hershey’s pricing strategy ---- maintaining the price level at a consistently hiked rate --- targeting mostly foreigners & upper class Indians.
•Price cut off, or no increase in prices but products weight would be reduced
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PRODUCT PLACEMENT
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PROMOTION
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PROMOTION
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Wrapper Cash codes will appear on specially marked wrappers from Hershey's most popular single serve candy bars, cookies and snack bars.
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PROMOTION
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HERSHEY & COKE partnership
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PROMOTION
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National radio promotion
1-Kitkat coffee bar coffee bundling
2- Reese program –(coming soon)
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PRODUCT POSITIONING
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•Product quality (levels of fat/cocoa) : e.g. Kisses, though priced higher, sells more than other choclates, presumably due to quality.
•Seasonal product
•Packaging: this being predominantly an impulse driven purchase category, packaging is an important mode of attracting attention at the display counter.
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PRODUCT POSITIONING
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•International heritage of the product
•Size (mainly in US)
•Shape (e.g. Bliss- chocolates in shape of toys targeted at children)
•Chocolates with additives like fruits and nuts
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BRAND Wt PRICE POSITIONING AD CAMPAIGN (promotion)
REESE 2.4 oz $34.99 Snack food There's no wrong way to eat a Reese's
KISSES 24 OZ $8 VALENTINE’S DAY JUST GOT A WHOLE LOT SWEETER
Recipe for every occasion
TWIZZLERS
5 ounce
$13 Low fat snack Make mouth happy
KITKAT 36 gm. Rs 15 Snack for routine use Have a break, Have a KitKat
BLISS 9.6 oz (272 g)
$61.28 Best for house party (blissful pairing)
Its not just a choclate , it’s a BLISS
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HERSHEY’S Premier Partner Program
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Product
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Placement
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Promotion (2011)
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RETAILER VISIT
I.N.A Khan Market,Morning store-G K1M BlockBig apple- Lakshmi nagar
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Q. Whether Shelf Space purchased by Hershey or not?Ans. NO
Q. Does the representative of the company visit the store often?Ans. NEVER
Q. If the product is not sold under expiry date bracket what you generally do?Ans. Retailer send the product back and with due permission they start selling the product again with the help of various schemes.(Discount up to 20%,Buy one get one Free etc.)
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Q. Slow moving product ?Ans. Hershey’s Nugget
Q. Fast moving Product ?Ans. Hershey’s Syrup
Q. Any promotional support from the company ?Ans. NO
Q. Any signboard, hoarding availed by the Company? Ans. NO
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Q. Do customers ask for Hersey’s product or you refer “PUSH Strategy” it to them?Ans. We generally refer Hershey’s Syrup.
Q. Are you satisfied with the offers and schemes given by Hershey?Ans. Satisfaction—3 out of 4
Q. Any Suggestions ?Ans. The prices should go down as it’s one of the main concerns of the Indian customers.
Q. Do you have the stock all the time?Ans. Yes, but we generally increase our stock during festive seasons (Diwali) and winters.
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Q. How frequently you order for Hershey product?Ans. Thrice in a year.(heavy sales during season)
Q. Who are the customers who buy Hershey’s product?Ans. Mostly foreigners upper class Indians.
Q. Is there enough brand awareness about the Hershey product among the customers?Ans. YES (Hershey’s Syrup , Kisses , Reese)
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SITES
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•http://www.hersheys.com/CSTORE/consumer-promotions/hersheys-coke-bundle/Default.aspx#
•http://www.top5ofanything.com/index.php?l=1365
•www.euromonitor.com
•www.hersheycompany.com
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