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Lauren Nickel The Hershey Company Media Plan Student Project Fall 2014

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Lauren  Nickel    The  Hershey  Company  Media  Plan  

Student  Project  Fall  2014

 

   1  

     

Executive  Summary  

Product:  Hershey’s  Chocolate  Year:  January  2015-­‐  December  2015  Budget:  $120  million    Target  Audience:  Women  ages  18-­‐34  Primary  Audience:  Women  who  are  between  the  ages  of  18  and  34  who  are  brand  loyal  to  Hershey’s  chocolate  and  will  continue  to  buy  it  for  their  children.      Positioning:  The  Hershey’s  Company  has  always  strived  for  innovative,  affordable,  and  luxurious  chocolate  that  brings  happiness  into  the  consumer’s  day.      Market  Share  Goal:  The  goal  is  to  increase  Hershey’s  sales  by  6  percent.  This  would  cause  Hershey’s  to  increase  their  share  in  the  market  from  the  current  42  percent  to  48  percent  by  the  end  of  2015.  The  company  plans  to  do  so  by  targeting  women  18-­‐34.        

Media  Objectives:    National  Goals   Reach   Frequency   Gross  Rating  

Points  January   70   3   210  February   95   10   950  March,  April,  May   70   6   420  June   95   10   950  July,  August,  September  

70   6   420  

October   95   10   950  November,  December  

70   6   420  

     

Media  Mix  and  Budget  Allocation:  

 

 

 

 

   2  

     

Table  of  Contents  

Executive  Summary                 1  

Situation  Analysis  • Company  Background             3  • Product,  Place,  Price               4-­‐7  • Past  Promotions               7-­‐8  • Uncontrollable  Variables             8  • Positioning  Statement             8-­‐9  

Competition  • Market  Shares               9-­‐10  • Advertising  Shares               10-­‐11  • Competitor’s  Media  Mix             11  • Share  of  Voice               12      • Consumer  Analysis               12-­‐13    

           Marketing  Objectives  

• Market  Share  Goals               13  • Strategy  for  Achieving             13  • Communication  Objectives             13  • SWOT  Analysis               14  

Consumer  Target  Market  • Demographic                 14-­‐16  • Geographic                 17  • Product  Usage               14-­‐16  

Media  Objectives  • Reach  and  Frequency  Chart             18  • Reach  Goals                 18-­‐20  • Frequency  Goals               18-­‐20  

 Planned  Promotions               20-­‐22    Media  Mix                   23  

• Budget  Recap                 27  • Flow  Chart                 28  

 Works  Cited                   29    

 

 

 

   3  

     

 

 

Situation  Analysis  

I. Company  Background  

The  Hershey  Company  has  been  devoted  to  excellence  since  1894.  In  that  year,  

Milton  Hershey  decided  to  produce  baking  chocolate,  cocoa,  and  sweet  chocolate  

coatings  for  his  original  product,  Lancaster  caramels.    These  products  took  off  and  

the  Hershey  Chocolate  Company  quickly  turned  into  a  company  all  of  its  own.    

Milton  Hershey  saw  how  fast  his  chocolate  was  entering  the  scene  and  knew  that  

he  had  struck  gold.  The  one  thing  he  couldn’t  figure  out  was  how  to  produce  the  

perfect  milk  chocolate;  a  product  that  he  believed  would  revolutionize  the  chocolate  

world.  In  1896,  he  built  a  milk-­‐processing  plant  on  his  family  farm.  There  he  began  

developing  a  formula  for  this  chocolate.  Finally  in  1899,  he  figured  it  out  and  

became  the  first  American  to  manufacture  milk  chocolate  

(thehersheycompany.com).    

Milton  Hershey  began  making  milk  chocolate  in  bars,  wafers,  and  other  shapes  in  

1900.  This  was  also  the  same  time  that  mass  production  was  invented  and  Hershey  

was  able  to  lower  the  per-­‐unit  cost  of  his  chocolate.  This  changed  a  product  that  was  

normally  a  luxury  good  into  an  item  that  was  available  for  all  without  loosing  its  

luxurious  appeal.  The  Hershey  Company  still  follows  this  low-­‐cost,  high-­‐quality  ideal  

today  as  it  did  over  100  years  ago.    

Besides  producing  exemplary  chocolate,  Milton  Hershey  was  dedicated  to  

philanthropic  work.  He  founded  a  school  for  orphan  boys  in  1909.  He  and  his  wife,  

   4  

     

Catherine,  could  not  have  children  of  their  own  and  wanted  to  give  back  to  the  

community  that  had  helped  them  gain  their  wealth.  The  Milton  Hershey  School  is  

now  a  coeducational  home  and  school  that  stays  true  to  the  ideals  it  was  founded  on.  

They  provide  education,  meals,  clothing,  health  care,  counseling,  and  career  training  

to  nearly  2,000  children.      

Milton  Hershey  passed  away  in  1945  but  not  without  leaving  a  legacy.  The  

Hershey  Company  continues  to  innovate  and  take  risks  when  it  comes  to  creating  

the  best  possible  product  for  their  consumers.  It  is  the  leading  North  American  

manufacturer  of  chocolate  and  non-­‐chocolate  confectionery  and  grocery  products  

(thehersheycompany.com).  They  market  in  70  countries  worldwide  and  their  

products  are  known  all  over.  They  have  14,000  employees  and  net  sales  above  $6.6  

billion.  The  company  also  recently  teamed  up  with  Mar’s  Inc.  to  commit  to  use  cocoa  

only  from  sustainable  sources  and  invest  to  help  cocoa  farmers  improve  their  

profitably  (Greenbiz.com).  Hershey’s  also  has  teamed  up  with  Cargill  on  an  Ivorian  

cocoa  program  (Confectionarynews.com).  The  Hershey  Company  continues  to  stay  

true  to  the  values  that  Milton  Hershey  first  established  over  100  years  ago.      

II. Product  

The  Hershey  Company  has  11  iconic  brands  and  more  than  80  brands  

worldwide  (thehersheycompany.com).  These  brands  include  the  famous  Hershey’s  

chocolate,  Reese’s,  Hershey’s  Kisses,  Lancaster,  Hershey’s  Bliss,  Twizzlers,  Almond  

Joy,  Mounds,  York,  Kit  Kat,  and  Pieces.    

The  Hershey’s  chocolate  brand  includes  the  chocolate  bars  in  milk  and  dark  

chocolate,  baking  chocolate,  miniature  bars,  sundae  syrup,  and  sugar  free  candy.    

   5  

     

In  1963,  the  Hershey  Chocolate  Corporation  purchased  the  H.B  Reese  Candy  

Company.  Since  then,  the  Reese’s  line  has  expanded  beyond  the  original  idea  of  

chocolate  covered  peanut  butter  cups  to  wafer  bars,  crispy  crunchy,  nutrageous  

candy  bars,  fast  breaks,  Reese’s  pieces,  and  creamy  peanut  butter.  Reese’s  has  

captured  the  hearts  of  the  North  American  market,  as  it  currently  stands  as  the  

overall  favorite  Halloween  candy  among  U.S  consumers  in  2013  

(thehersheycompany.com).    

Milton  Hershey  decided  to  expand  his  product  line  in  1907  by  creating  a  flat-­‐

bottomed  piece  of  chocolate  that  he  eventually  named  the  “kiss”  and  thus  the  

Hershey’s  kiss  was  introduced.  In  1924  the  shape  of  the  kiss  was  trademarked  and  

has  continued  to  stay  a  fan  favorite.    

Lancaster  caramels  are  a  throw  back  to  the  original  Hershey  product  that  Milton  

made  before  his  chocolates.    

Hershey’s  Bliss  is  a  line  of  even  more  luxurious  chocolates  that  allow  for  a  well-­‐

deserved  moment  of  bliss  in  a  consumer’s  busy  day.    

Twizzlers  are  not  a  chocolate  brand,  but  they  are  a  high  selling  product  of  the  

Hershey  Company.  They  are  a  licorice  brand  that  sells  products  such  as  pull  ‘n’  peel,  

bites,  NIBS,  and  sugar  free  licorice.    

Almond  Joy  and  Mounds  are  the  two  Hershey’s  products  that  contain  coconut.  

Almond  Joy  is  a  bar  made  with  chocolate  and  almonds  over  a  bed  of  coconut  while  

Mounds  are  the  same  product  without  the  almonds.    

York  Peppermint  Patties  are  a  mixture  of  chocolate  and  mint.  This  brand  entails  

the  original  patties,  sugar  free  york,  york  pieces  and  sundae  syrup.    

   6  

     

33%  

25%  

15%  

10%  

8%  

4%  5%  

Place  of  Sale  

Mass  Merchandisers  

Supermarkets  

Convenience  Stores  

Drug  Stores  

Wholesale  Clubs  

Dollar  Stores  

Specialty  Channels  

Kit  Kat  is  another  one  of  The  Hershey  Company’s  number  one  sellers.  This  brand  

has  products  such  as  the  original  wafer  bar,  king  size  bars,  snack  size  bars,  

miniatures,  extra  crispy  bars,  and  white  chocolate  bars.    

 Pieces  are  one  of  the  newer  ideas  of  Hershey.  They  come  in  resalable  bags  in  

brands  such  as  Reese’s,  York,  and  Almond  Joy.    

The  Hershey  Company  also  does  a  great  job  at  having  special  dietary  need  

options  such  as  gluten  free,  kosher,  and  sugar-­‐free  products.    

III. Place  

 

 

 

 

 

 

 

 

 

 

Hershey’s  products  can  be  found  in  a  number  of  places  worldwide.  According  to  

a  Hershey’s  Investor  update  from  2012,  supermarkets  and  mass  merchandisers  sell  

the  largest  amount  of  Hershey  products.  Coming  in  behind  these  two  are  

convenience  stores  and  drug  stores.  Finally,  there  are  wholesale  clubs,  dollar  stores,  

and  specialty  channels.  The  chart  above  further  explains  the  percentages  of  each.    

   7  

     

IV. Price  

The  Hershey’s  company  has  been  dedicated  to  making  a  luxury  chocolate  

affordable  to  all  since  Milton  Hershey  decided  this  in  1900.  They  have  stayed  true  to  

those  values  even  in  a  continuously  changing  marketplace.  After  looking  at  the  

prices  of  Hershey’s  six  count  individually  wrapped  bars  at  a  grocery  store,  it  is  

obvious  that  prices  continue  to  be  competitive.  Six  count  bars  sell  for  around  $4.00  

while  a  Twix  package  of  the  same  amount  was  selling  for  $5.00.  While  there  may  not  

be  a  mind-­‐blowing  difference  in  prices,  it  is  enough  to  see  that  Hershey’s  cares  about  

keeping  their  products  affordable.    

V. Past  Promotions  

The  Hershey’s  Company  is  dedicated  to  monthly  consumer  promotions.  For  the  

2014  year,  Hershey’s  has  planned  out  12  promotions  that  run  a  month  at  a  time  and  

two  that  run  during  any  month  (thehersheycompany.com).      

The  month  of  January  had  a  promotion  of  Kit  Kat  minis  240  count.  February  had  

a  promotion  of  pre-­‐priced  79-­‐cent  Standard  Bar  Shipper,  312  count.  In  March,  

Hershey  paired  with  the  NCAA  for  a  March  Madness  King  Size  Bar  Shipper,  220  

count.  April’s  promotion  was  Hershey’s  Foodservice  Bundle  Standard  Bar  Shipper,  

252  count.  May  had  a  pre-­‐priced  2  for  $3.00  King  Size  bar  shipper,  242  count.  In  

June,  Hershey’s  partnered  with  Coca-­‐Cola  and  promoted  grabbing  a  Coke  and  a  

Reese’s.  It  was  titled  Reese’s  Summer  Coca-­‐Cola  Bundle  Assorted  Standard  Bar  

Shipper,  266  count.  In  August,  Hershey’s  worked  with  the  Wounded  Warrior  Project  

to  promote  the  nonprofit.  This  was  titled  Hershey’s  Wounded  Warrior  Partnership  

King  Size  Bar,  240  count.  August  had  a  promotion  of  Pre-­‐Priced  79  cent  Standard  

   8  

     

Bar  Shipper,  312  count.  In  September  they  partnered  with  the  NCAA  again  in  a  

promotion  called  NCAA  Football  King  Size  Bar  Shipper,  220  count.  In  October  the  

Hershey’s  Company  worked  with  Foodservice  again  and  called  this  promotion  

Hershey’s  Foodservice  Bundle  Standard  Bar  Shipper.  November  had  a  promotion  of  

Pre-­‐Priced  2  for  $3.00  King  Size  Bar  Shipper,  242  count.  In  December,  Hershey’s  

paired  with  Coca-­‐Cola  again  for  another  promotion  on  pairing  a  Coke  with  a  Reese’s.  

Any  month  standard  promotion  is  a  promotion  where  Hershey’s  partnered  with  

Wounded  Warrior  Project  and  supports  the  troops  year  round.  Any  month  king  

promotion  is  a  Reese’s  promotion  for  the  assorted  king  size  bar.    

VI. Uncontrollable  Variables    

The  Chocolate  confectionary  industry  is  always  going  to  have  unforeseeable  

setbacks.  The  number  one  issue  in  the  chocolate  market  is  that  people  see  chocolate  

as  fattening.  Chocolate  is  one  of  the  number  one  things  that  dieters  give  up.  There  is  

also  a  rise  in  diabetes  in  the  United  States  so  more  and  more  people  are  looking  to  

give  up  sugar  and  other  sweet  items.  Thankfully,  the  Hershey  Company  has  adjusted  

and  come  out  with  a  line  of  sugar  free  candies  that  are  available  to  buy.    

There  are  other  unforeseen  factors  that  lead  to  setbacks  in  the  industry.  Thanks  

to  a  dry  weather  in  West  Africa,  the  Ebola  outbreak,  and  an  increase  in  Chinese  

chocolate  sales,  chocolate  could  become  harder  to  come  by  within  the  next  10  years  

(WashingtonPost.com).    

VII. Positioning  Statement  

The  Hershey  Company  is  dedicated  to  the  values  and  ideals  that  Milton  Hershey  

put  in  place  back  when  he  founded  the  company  in  1894.  It  is  a  company  known  for  

   9  

     

42%  

29%  

6%  

5%  

5%  

1%   12%  

Market  Shares  

The  Hershey  Company  

Mars  Inc.  

Nestlé  S.A.  

Lindt  &  Sprungli  A.G.  

Russell  Stover  Candies  Inc.  

Private  Label  

Other  

providing  happiness  to  consumers  through  chocolate  and  the  other  products  they  

create.  Hershey’s  is  focused  on  growing  in  international  markets  while  continuing  

its  brand  awareness  in  North  America  (thehersheycompany.com).  Hershey’s  is  also  

a  company  dedicated  to  innovative  ideas  as  they  continue  to  push  the  boundaries  of  

the  chocolate  industry  by  creating  healthier  and  affordable  options  for  all.    

Competition  I. Market  Shares  

 The  chart  below  presents  the  market  shares  for  the  year  2013.    

                                              The  Hershey  Company  has  41.7  percent  of  the  market  share  and  reported  a  7  

percent  increase  in  sales  in  the  past  year  thanks  to  its  bestsellers  of  name  brand  

chocolates  and  Reese’s.  Mars  has  a  28.8  percent  market  share  but  had  the  weakest  

sales  of  2013  with  an  increase  of  only  0.8  percent.  Nestlé  comes  in  as  a  distant  third  

with  5.9  percent  share  of  the  market  and  experienced  slight  growth  last  year.  Lindt  

   10  

     

3%  3%  3%  

4%  

27%  

2%  6%  17%  

19%  

16%  

Advertising  Shares  

Brynwood  Partners  

Ferrero  USA  Inc.  

World's  Finest  Chocolate,  Inc.  

Russell  Stover  Candies,  Inc.  

The  Hershey  Company  

Lindt  &  Sprungli  

R.M.  Palmer  Co.  

Nestlé  S.A.  

Mars  Inc.  

Other/Private  Label  

&  Sprungi  A.G.  is  coming  in  at  5.2  percent  market  share  and  saw  the  biggest  rise  in  

sales  at  16.6  percent,  which  can  be  attributed  to  the  consumers  growing  interest  in  

premium  chocolates.  They  are  quickly  moving  in  on  Nestlé  and  trying  to  take  over  

third  place  in  market  shares.  Russell  Stover  Candies  Inc.  has  5.4  percent  of  the  

market  and  saw  an  increase  in  sales  of  7  percent  in  2013.  Private  labels  keep  hold  of  

1.3  percent  of  the  market  but  grew  a  whopping  18.6  percent  in  the  past  year.  Finally  

other  companies  come  in  at  11.7  percent  of  the  market.    

II. Advertising  Shares  The  chart  below  presents  the  advertising  shares  for  the  year  2013.    

                                         

  The  Chocolate  confectionary  industry  is  made  up  of  11  major  companies,  

however  Other/Private  Labels  are  combined  in  the  above  chart.  Lindt  &  Sprungli  

hold  the  least  amount  of  advertising  shares  at  2  percent.  Brynwood  Partners  

accounts  for  3  percent  of  the  advertising  shares,  as  does  Ferrero  USA  and  World’s  

   11  

     

Finest  Chocolate,  Inc.  Russell  Stover  Candies,  Inc.  holds  four  percent  of  the  

advertising  shares.  R.  M.  Palmer  Co.  has  six  percent  of  the  advertising  shares.  

Other/Private  Label  chocolate  companies  hold  16  percent  of  the  advertising  shares  

while  Nestlé  comes  in  right  in  front  of  them  with  17  percent.  Finally,  we  have  our  

top  two  competitors  with  Mars  Inc.  coming  in  at  19  percent  and  The  Hershey  

Company  with  27  percent.  The  Hershey  Company  is  the  clear  leader  of  advertising  

and  holds  the  largest  share.  

III. Competitor’s  Media  Mix    

The  graph  below  breaks  out  each  category  along  with  the  brand  to  display  where  

Hershey’s  and  their  competitors  spend  their  money.    

     

                                               

   12  

     

IV. Share  of  Voice  (SOV)    

The  Media  Mix  shows  how  companies  spend  their  advertising  money  while  the  

Share  of  Voice  is  the  percentages  of  total  spending  in  each  category  according  to  the  

total  amount  spent  by  all  brands  in  that  category.  The  graph  below  explains  this  

further.    

                             

 V. Consumer  Analysis  Consumers  of  chocolate  spread  over  age,  race,  sexual  orientation  and  religion.  

According  to  Mintel’s  Chocolate  Confectionary  report,  nearly  nine  out  of  10  adults  

purchase  products  in  the  chocolate  category  for  themselves  or  others  in  their  

household  (academic.mintel.com).  Young  consumers  are  also  more  likely  to  buy  and  

eat  chocolate  because  for  the  most  part,  they  are  less  worried  about  the  sugar  and  

chloric  intake  than  someone  of  an  older  age.  Even  though  young  consumers  are  

more  likely  to  buy  and  eat  chocolate,  adult  consumers  still  partake  by  eating  

chocolate  at  an  average  of  two  times  a  week  (academic.mintel.com).    

Another  survey  found  that  some  95  percent  of  households  with  children  

purchase  chocolate  confectionary,  compared  to  82  percent  of  those  

   13  

     

without  (academic.mintel.com).    There  is  also  a  survey  that  shows  that  the  

mother  of  the  household  is  significantly  more  likely  to  buy  chocolate  than  the  father  

of  the  household.  This  is  important  to  note  because  these  studies  show  that  it  is  not  

only  crucial  to  advertise  to  the  younger  crowd  that  buy  chocolate  more  often  but  it  

also  shows  how  important  it  is  to  advertise  to  slightly  older  audiences  that  have  

children  at  home.    

 Marketing  Objectives    I. Market  Share  Goals  

 Currently,  The  Hershey  Company  holds  a  market  share  of  42  percent.  The  

market  share  goal  is  to  increase  sales  by  6  percent  in  2015,  creating  a  market  share  

of  48  percent.  Hershey’s  will  do  this  by  targeting  women  18-­‐34  years  old.    

II. Strategy  for  Achieving    The  Hershey  Company  has  always  been  devoted  to  creating  a  luxury  chocolate  

that  is  affordable  for  everyone  without  loosing  its  high-­‐end  appeal.  Hershey’s  will  

continue  this  tradition  and  achieve  its  market  share  goal  by  creating  promotions,  

being  aggressive  in  media  advertisements,  and  marketing  to  a  specific  target  

audience  of  women  18-­‐34  years  old.    

III. Communication  Objectives    

The  communication  objective  is  to  increase  advertisements  in  television,  radio,  

magazines,  and  outdoors  for  women  18-­‐34  years  old.    

 

 

 

   14  

     

 

IV. SWOT  Analysis  

     Consumer  Target  Market    I. Demographic  and  Product  Usage  

According  to  the  graph  below  obtained  from  Simmons  OneView,  Hershey’s  has  

multiple  factors  to  look  at  when  deciding  on  a  target  market.  Research  has  shown  

that  women  ages  18-­‐34  have  a  higher  index  of  eating  Hershey’s  (114)  and  a  slightly  

lower  for  eating  chocolate  over  all  (106).  This  is  significant  because  it  shows  that  

Strengths  • Well  known  • Philanthropic  • Strong  customer  loyalty  • Involved  in  International  

Cocoa  Initiative  Foundation  

Weaknesses  • Chocolate  as  fattening  • Increase  in  diet  fads  • Nut  allergies  • More  long  term  debt  

than  key  competitors  (sec.gov/archives)  

Opportunities  • Increase  awareness  of  

newer,  healthier  options  • Social  media  (Facebook,  

twitter,  blogs)  • Energy  and  meal  

replacement  bars  

Threats  • Steady  price  increase  

of  milk,  sugar,  and  cocoa  bean  

• Increasing  diabetics  • Steady  increase  of  

minimum  wage  of  employees  

   15  

     

these  women  are  already  brand  loyal  to  Hershey’s  and  will  most  likely  continue  to  

purchase  Hershey’s  in  the  future.  Simmons  OneView  also  displays  that  this  target  

age  group  has  the  highest  index  for  fun-­‐size  packages  (132),  meaning  they  will  buy  

larger  bags  of  smaller  items.  This  fact  will  come  in  handy  when  planning  out  

Halloween  promotions  where  candy  is  typically  bought  in  large  bags  but  bite-­‐size  

pieces  of  chocolate.  This  target  audience  also  has  a  high  index  in  multi-­‐packs  of  bars  

(122).  This  is  another  important  piece  of  information  that  pertains  to  buying  in  bulk  

for  future  promotions.    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

   16  

     

Demographic  and  Product  Usage    (Simmons  OneView)                

             

                                                           

   17  

     

II. Geographic  

According  to  research  found  on  Simply  Maps,  chocolate  really  is  a  product  loved  

by  most  states.  The  states  with  the  largest  amount  of  people  that  said  that  they  eat  

chocolate  are  Idaho,  Utah,  Nebraska,  Kansas,  Oklahoma,  Iowa,  Wisconsin,  Indiana,  

Ohio,  Kentucky,  and  West  Virginia.  By  comparing  this  map  with  the  map  that  shows  

which  states  eat  the  most  Hershey’s  products,  it  was  clear  which  states  could  use  

more  spot  advertising.  These  states  are  Kentucky,  Oregon,  and  Tennessee  

(simplymaps.com).  Since  chocolate  is  eaten  all  over  the  United  States,  it  is  important  

to  continue  to  do  national  advertising  while  focusing  spot  advertising  in  those  three  

states.    

                                                   

   18  

     

   Media  Objectives  

 I. Reach  and  Frequency  Chart  

  See  chart  above  for  reach  and  frequency  for  2015  media  objectives.      

II. Reach  and  Frequency  Goals  by  Period    

Period  1-­‐  January  

  The  first  month  of  the  period  is  when  women  ages  18-­‐34  are  least  likely  to  

buy  chocolate.  This  is  the  first  month  of  the  New  Year  and  a  lot  of  women  are  

making  resolutions  to  eat  healthier  or  loose  weight.  Therefore,  the  appropriate  

reach  and  frequency  based  off  of  these  findings  would  be  a  medium  reach  (70  

percent)  and  a  low  frequency  (3).  This  should  allow  for  the  target  audience  to  still  

hear  about  the  product  but  not  be  bombarded  by  heavy  advertising  before  a  

promotion  month.  The  total  gross  rating  point  goal  for  this  period  is  210.    

Period  2-­‐  February  

  February  is  the  first  month  of  the  year  that  contains  a  Hershey’s  promotion  

because  of  Valentine’s  Day.  The  promotion  will  consist  of  a  point-­‐of-­‐purchase  

display  and  hearing/seeing  ads  on  the  radio  and  television.  It  is  important  that  this  

month  contain  a  high  reach  (95  percent)  and  high  frequency  (10)  in  order  to  cause  a  

rise  in  sales  particularly  from  our  target  audience.  The  total  gross  rating  point  goal  

for  this  period  is  950.    

Level   Reach   Reach   Frequency   Frequency  

    Range   Average   Range   Average  

High   75-­‐95%   85%   8-­‐10   9  

Medium   60-­‐75%   68%   5-­‐7   6  

Low   50-­‐60%   55%   1-­‐4   3  

   19  

     

 

Period  3-­‐  March,  April,  and  May  

  This  period  of  three  months  contain  March,  April,  and  May.  These  are  the  

three-­‐month  following  the  first  promotion  of  the  year.  It  is  crucial  that  Hershey’s  

continues  to  stay  in  the  consumer’s  mind  during  these  months  since  they  contain  

Easter  and  Mother’s  day.    This  is  why  there  needs  to  be  a  medium  reach  (70  

percent)  and  medium  frequency  (6)  during  all  three  of  these  months.  The  total  gross  

rating  point  goal  for  this  period  is  1260.    

Period  4-­‐  June  

  The  fourth  period  containing  the  month  of  June  is  another  promotion  month.  

Students  are  out  for  summer  while  others  are  graduating  and  starting  new  passages  

of  their  lives.  This  promotion  is  focused  on  the  Hershey  original  bar  and  will  entail  

the  use  of  advertising  through  television,  radio,  magazines,  coupons  on  social  media,  

and  some  outdoor  displays.  The  best  reach  and  frequency  for  this  month  is  a  high  

reach  (95  percent)  and  a  high  frequency  (10).  The  total  gross  rating  point  goal  for  

this  period  is  950.  

Period  5-­‐  July,  August,  and  September  

  Period  five  is  made  up  of  July,  August,  and  September.  These  months  are  

important  as  they  continue  to  advertise  the  happiness  of  summer  and  how  

Hershey’s  chocolate  can  provide  them  with  happiness.  They  are  not  promotional  

months  however  so  it  is  best  not  to  overload  the  consumer  with  advertisements  but  

keep  the  Hershey  name  fresh  in  their  minds.  There  should  be  a  medium  reach  

   20  

     

(70  percent)  and  medium  frequency  (6)  during  this  period  with  a  total  gross  rating  

point  goal  of  1260.  

Period  6-­‐  October  

This  period  is  an  obvious  promotional  month  with  Halloween.  October  is  a  

large  selling  month  for  candy,  especially  for  Reese’s,  which  is  the  number  one  

Halloween  candy  in  North  America.  This  promotion  will  call  for  an  in-­‐store  point-­‐of-­‐

purchase  display  along  with  more  advertisements  on  television,  radio,  magazines,  

and  outdoor.  This  month  calls  for  a  high  reach  (95)  and  a  high  frequency  (10).  The  

total  gross  rating  point  goal  for  this  period  is  950.  

Period  7-­‐  November  and  December  

This  final  period  of  the  year  is  made  up  of  November  and  December.  These  

will  be  medium  reach  (70)  and  medium  frequency  (6)  months  because  they  are  still  

holiday  months  but  they  are  right  after  Halloween.  The  total  gross  rating  point  goal  

for  this  period  is  840.    

Planned  Promotions  

Promotion  1:  February  2015  

  The  month  of  February  is  the  perfect  time  to  have  the  first  Hershey’s  

promotion  of  the  year.  This  promotion  will  be  for  Valentines  Day  and  will  be  a  buy-­‐

one-­‐get-­‐one  free  deal.  The  consumer  will  buy  a  special  Valentines  Day  assorted  bag  

of  candy  while  another  bag  will  be  given  to  the  nearest  Ronald  McDonald  House  so  

that  the  parent’s  living  there  may  have  candy  for  themselves  as  well  as  candy  for  

their  children  in  the  hospital.  Since  Hershey’s  is  dedicated  to  bringing  happiness  to  

those  who  eat  their  chocolate,  this  promotion  will  focus  mainly  on  bringing  joy  

   21  

     

through  chocolate  into  the  home  of  those  who  need  some  happiness  the  most.  This  

promotion  will  consist  of  an  in-­‐store  point-­‐of-­‐purchase  display  that  has  the  special  

Valentines  Day  bags  on  it  while  explaining  who  the  free  one  is  given  to.  There  will  

also  be  a  higher  use  of  television  ads,  both  national  and  local.  The  radio  will  also  be  

employed  in  this  promotion  along  with  outdoor  signs  near  the  Ronald  McDonald  

Houses.  This  promotion  should  pull  on  the  heartstrings  of  our  target  audience  of  

women  ages  18-­‐34  and  cause  them  to  buy  the  special  bag  not  only  because  it  has  a  

creative  design  but  also  because  it  helps  those  in  need  of  a  little  happiness  this  

season.    

Promotion  2:  June  2015  

  June  is  another  month  that  is  great  for  a  promotion,  especially  one  centered  

on  the  nostalgia  of  S’mores.  June  is  the  month  where  children  are  on  summer  break  

and  parents  begin  their  family  vacations.  Whether  these  families  are  heading  to  the  

beach  or  to  a  cabin  in  the  woods,  it  is  important  that  they  know  that  a  S’more  using  

Hershey’s  original  chocolate  bar  is  the  best  way  to  create  a  sweet  treat  and  a  family  

moment.  This  promotion  will  consist  of  coupons  on  social  media  for  bundled  

Hershey’s  chocolate  bars  with  graham  crackers  and  marshmallows,  as  well  as  

television  and  radio  ads  both  national  and  spot,  reminding  people  how  great  a  

Hershey’s  S’more  really  is.  There  will  also  be  a  mailed  out  sample  to  people  of  a  mini  

Hershey’s  chocolate  bar  with  a  coupon  for  a  the  bundled  package  that  can  be  

redeemed  at  the  local  grocery  store.    

 

 

   22  

     

Promotion  3:  October  2015  

  The  month  of  October  is  a  great  month  for  a  promotion  because  of  

Halloween.  Reese’s  has  been  ranked  as  the  overall  favorite  Halloween  candy  among  

U.S  consumers  in  2013  (Hersheycompany.com).  Therefore,  this  is  a  great  time  to  

pair  Reese’s  with  St.  Jude  children’s  hospital  in  Memphis,  Tennessee.  When  a  

consumer  buys  a  bag  of  Reese’s  Halloween  candy,  a  bag  will  be  given  to  St.  Jude  so  

that  the  children  who  are  staying  in  the  hospital  over  the  holiday  will  still  be  able  to  

enjoy  the  tradition  of  trick-­‐or-­‐treating  inside  of  the  hospital.  This  promotion  will  

employ  the  use  of  in-­‐store  point-­‐of-­‐purchase  displays  with  the  bags  of  Reese’s  on  

them.  There  will  also  be  increased  television  and  radio  ads  both  nationally  and  

locally  that  show  the  joy  you  can  bring  to  a  child’s  life  just  by  buying  a  bag  of  

Reese’s.    

                                           

   23  

     

51%  

23%  

11%  

6%  0%  

3%  1%  0%  

3%   2%  

Media  Mix  

Network  Television  

Network  Cable  

Network  Radio  

Magazines  

Social  Media  

Spot  Television  

Spot  Cable  

Spot  Radio  

Outdoor  

Direct  Mail  

Media  Mix                                                 The  chart  above  outlines  the  Media  Mix  percentages  for  the  proposed  

Hershey’s  media  plan  of  2015.  

 

Network  Television-­‐  Early  Morning,  Daytime,  Early  News,  Prime,  and  Late  

Night/Late  News:  51  percent  weight,  2,499  gross  rating  points-­‐  The  media  type  

of  Network  Television  as  a  whole  is  being  used  because  it  is  the  best  way  to  reach  

our  target  audience  of  women  ages  18-­‐34.  According  to  Simmons  OneView,  the  

target  audience  has  the  highest  index  of  viewers  during  late  night/late  news  and  

daytime.  This  is  where  most  of  the  money  should  go.  These  advertisements  will  be  

30  seconds  in  length  and  will  be  played  between  either  the  hours  of  11pm-­‐1am  or  

Monday-­‐Friday  10am-­‐4pm.  Advertisements  will  still  run  during  the  other  hours  

however  but  not  as  heavily.    

   24  

     

 

Network  Cable-­‐  Daytime,  Prime,  and  Late  Fringe:  24  percent  weight,  2,610  

gross  rating  points-­‐  Network  cable  is  the  second  largest  media  of  where  money  

should  be  spent.  According  to  Simmons  OneView,  women  18-­‐34  regularly  watch  

cable  television,  especially  during  late  fringe.  These  advertisements  will  be  30  

seconds  in  length  and  should  run  during  shows  such  as  90210  (154  index),  

American  Dad  (185  index),  Crimetime  Saturday  (142  index),  Family  Guy  (151  

index),  Greys  Anatomy  (130  index),  The  Vampire  Diaries  (145  index),  and  House  

(135  index).  These  are  all  shows  that  have  high  indexes  in  Simmons  OneView  and  

would  be  best  suited  for  18-­‐34  year  old  women.    

 

Network  Radio-­‐  Morning  Drive,  Daytime,  Evening  Drive,  and  Nighttime:  11  

percent  weight,  1,700  gross  rating  points-­‐  Network  Radio  is  another  important  

media  to  use  when  targeting  women  18-­‐34  years  old.  According  to  Simmons  

OneView,  they  are  big  listeners  on  Monday-­‐Friday,  7pm-­‐midnight  and  midnight-­‐

6am.  These  radio  spots  are  60  seconds  long  and  should  be  interesting  enough  to  

catch  the  audience’s  attention  within  three  seconds.  

 

Magazines-­‐  Women’s  and  General  Interest:  6  percent  weight,  780  gross  rating  

points-­‐  Magazines,  specifically  women’s  magazines,  are  another  great  way  to  reach  

our  target  audience.  They  should  be  full  page,  four  color  ads  that  will  attract  the  

reader’s  eye  and  make  them  notice  the  ad.  It  is  not  important  that  the  ads  inform  the  

reader  about  what  Hershey’s  is,  but  rather  it  should  just  remind  the  reader  that  it’s  

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time  for  a  Hershey’s  product.  These  advertisements  should  run  in  magazines  with  

the  highest  index  numbers  for  women  18-­‐34.  These  magazines  include  Babytalk  

(182),  Seventeen  (178),  American  Baby  (172),  Golf  Digest  (166),  Parenting:  Early  

Years  (159)  and  Cosmopolitan  (155).    

 

Digital  National-­‐  Mobile:  0.05  percent  weight,  12  gross  rating  points-­‐  Social  

media  is  important  during  the  promotions  for  items  such  as  coupons  and  brand  

awareness,  especially  through  the  apps  on  ones  phone.  According  to  Simmons  

OneView,  women  ages  18-­‐34  have  an  index  of  115  for  using  social  media,  meaning  

that  83  percent  of  them  use  it.    

 

Spot  Television-­‐Daytime,  Primetime,  Late  Fringe/Late  News-­‐  3  percent  weight,  

570  gross  rating  points-­‐  Spot  television  was  used  primarily  during  promotion  

months  so  that  consumer’s  could  see  that  the  deal  was  going  on  at  their  local  

grocery  store.  Again  there  is  more  money  dedicated  to  daytime  and  late  fringe/late  

news  because  that  is  when  the  target  audience  is  most  likely  to  watch.  The  

advertisements  should  be  30  seconds  in  length.    

 

Spot  Cable-­‐  1  percent  weight,  210  gross  rating  points-­‐  Spot  cable  is  also  only  

used  during  promotions  since  we  know  women  ages  18-­‐34  watch  cable  television  

and  would  like  to  see  that  their  local  grocery  store  is  holding  the  promotion.  The  

advertisements  should  be  30  seconds  in  length.    

 

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Spot  Radio-­‐  Morning  Drive,  Evening  Drive,  and  Nighttime:  1  percent  weight,  

300  gross  rating  points-­‐  Spot  Radio  is  another  media  that  is  used  only  during  

promotions  and  used  mostly  during  evening  drive  and  nighttime  slots  because  of  

our  target  audience.  These  advertisements  should  be  30  seconds  in  length  and  

should  be  used  because  they  can  say  the  local  grocery  store  that  is  participating  in  

the  promotion.    

 

Outdoor-­‐  3  percent  weight,  5,502  gross  rating  points-­‐  Outdoor  is  used  

specifically  during  promotions  to  increase  awareness  of  the  current  promotion.  

There  should  be  full  billboards  near  major  intersections  where  busy  18-­‐34  year  old  

women  would  be  likely  to  see  them  while  driving.    

 

Direct  Mail-­‐  2  percent  weight,  14  gross  rating  points-­‐  Direct  mail  will  only  be  

used  during  the  promotional  month  of  June  when  Hershey’s  will  send  out  samples  of  

their  chocolate  bars  along  with  a  coupon.  Sending  out  samples  that  have  a  coupon  

attached  is  a  great  way  to  bring  the  target  into  a  hands-­‐on  environment  with  the  

product  and  really  remind  them  how  great  a  Hershey’s  S’more  is.    

                       

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Budget  Recap  (Year  at  a  Glance)  

The  table  below  explains  the  Hershey’s  Media  Plan  Budget  Recap  for  the  year  

2015  from  Media  Flight  Plan.    

                                                                               

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Flow  Chart  

The  Flow  Chart  below  presents  each  media  used  for  Hershey’s  Media  Plan  for  

the  year  2015.  

                                                                                 

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Works  Cited    The  Hershey  Company.  Hershey's,  n.d.  Web.  17  Nov.  2014.   <http://www.thehersheycompany.com/investors/company-­‐profile.aspx>.    The  Hershey  Company,  Our  Story.  Hershey's,  n.d.  Web.  17  Nov.  2014.   <http://www.hersheys.com/our-­‐story.aspx#/home>.    Hershey's  Convenience.  Hershey's,  n.d.  Web.  17  Nov.  2014.   <http://www.hersheys.com/cstore/consumer-­‐promotions/>.    Walmart.  Walmart,  n.d.  Web.  17  Nov.  2014.  <http://www.walmart.com/ip/              Hershey-­‐s-­‐Individually-­‐Wrapped-­‐Bars-­‐Milk-­‐Chocolate-­‐6-­‐ct/10452239>.      Ferdman,  Roberto  A.  "The  World’s  Biggest  Chocolate-­‐maker  Says  We’re  Running  out  of  Chocolate."              Washington  Post  [Washington]  15  Nov.  2014:  n.  pag.  The  Washington  Post.  Web.  17  Nov.  2014.       <http://www.washingtonpost.com/blogs/wonkblog/wp/2014/11/15/theworldsbiggestchocolatemakersayswererunningoutochocolate/?utm_source=Daily+Skimm&utm_campaign=2746a88f90daily_skimm_west&utm_medium=email&utm_term=0_74efee6205-­‐2746a88f90-­‐27493209>.      Chocolate  Confectionary-­‐US-­‐April  2014.  N.p.:  n.p.,  n.d.  Mintel.  Web.  17  Nov.  2014.              <http://academic.mintel.com/display/680673/>.      Lifestyle  Demographics-­‐Chocolate.  N.p.:  n.p.,  n.d.  Simmons  OneView.  Web.  17  Nov.  2014.              <https://oneview.experian.com/main/#>.      Chocolate  US  States.  N.p.:  n.p.,  n.d.  SimplyMap.  Web.  17  Nov.  2014.  <https://www.simplymap.com/              index.html>.