14
--EXECUTIVE SUMMARY--------- Hershey is the leading U.S. manufacturer of chocolate. However, in an article published bl.A (l n) Forbes in May of 2013, H [j hey'sTake 5 candy bar was labeled the "most undervalued · .J 'o' rand in the world ." For the U. . relaunch of the Take 5 an~ ceive brand growth and increase in sales, a compreli sive marketing plan has beEfl1 created from the evaluation of the value proposition, distribution, and communications for a derived target market. KEY RESEARCH FINDINGS: ~ nly 35% of those surveyed responded positively to brand image but 68% ed) >ositively to flavor. -rt was noted frequently that the candy bar had a distinct and unique ingredient combination. : ---~, [ <Yf- g efuv "' ~ t~ h·,, e-o'I . ~\jl · •Before 0:iey e: ~ t ad f~ candy bar, many respondents believed they would enjoy it based solely on the ingredients. •60% of people have tried Take 5. This is higher than expected, but significantly lower than competitors. In comparison , 98% of people have tried Kit Kat. •"Boring" was mentioned 24 times to describe the brand image. •People responded more positively about the product-once they were aware it was made by Hershey. •67% would definitely recommendAto a friend. j,\-· MARKETING SUGGESTIONS: •First and foremost, distribution of Take 5 needs to be inc~ sed. Research members visited 15 stores to evaluate Take 5 shelf placement. Onl 5 f these retailers sold Take 5! All of them sold Hershey bars, Snickers, and Kit . •Initiate a re~auncb campaign for Take 5. The current brand image is "boring" and unappealing to the target market. This will give customers the perception that the brand has been reinvented. •Hershey should consider a package redesign. Shelf appeal of the current packaging is low. Customers associate the package with off-brand products. •Create a brand image for Take 5 centered around the idea that Take 5 is the candy · bar that "has it all!" This will resonate well with American customers who can relate to ~! e~ling of wanting to have it all-but much more often they feel the need to ~ promise on things in their life. tiliz e social~ ia to reach the target market - 78% of people say that social media posts(effec) their purchase decisions. In conclusion, the overall flavor perception was VERY high. Take 5 has definite potential for growth if Hershey invests money and resources in the brand. Specific objectives include increasing Take S's market share fro~ 5% of the countlines segment of the industry to ~ 0% by 2016, increasing the Take 5 Mnd awareness from 60% to 80% in the first year of ~plementation , and bringing Take 5 sales from 25.1 million to SO million by 2015.

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Page 1: jl - WordPress.com · name was resurrected. Take 5's brand positioning with Hershex_~ has not been updated since the initial launch. INDUSTRY ANALYSIS: ~ It is forecasted that by

--EXECUTIVE SUMMARY---------Hershey is the leading U.S. manufacturer of chocolate . However, in an article published

bl.A ( ln) Forbes in May of 2013, H[jhey'sTake 5 candy bar was labeled the "most undervalued ·.J 'o'rand in the world ." For the U. . relaunch of the Take 5 an~ ceive brand growth and

increase in sales, a compreli sive marketing plan has beEfl1 created from the evaluation of the value proposition, distribution, and communications for a derived target market.

KEY RESEARCH FINDINGS: ~ nly 35% of those surveyed responded positively to brand image but 68% ed) >ositively to flavor. -rt was noted frequently that the candy bar had a distinct and unique ingredient combination. : ---~, [ <Yf- g efuv"'~ t~ h·,, e-o'I . ~\jl · •Before 0:iey e:~ tad f~ candy bar, many respondents believed they would enjoy it based solely on the ingredients. •60% of people have tried Take 5. This is higher than expected , but significantly lower than competitors. In comparison , 98% of people have tried Kit Kat. •"Boring" was mentioned 24 times to describe the brand image. •People responded more positively about the product-once they were aware it was made by Hershey. •67% would definitely recommendAto a friend .

j,\-·

MARKETING SUGGESTIONS: •First and foremost, distribution of Take 5 needs to be inc~ sed. Research members visited 15 stores to evaluate Take 5 shelf placement. Onl 5 f these retailers sold Take 5! All of them sold Hershey bars, Snickers, and Kit . •In itiate a re~auncb campaign for Take 5. The current brand image is "boring" and unappealing to the target market. This will give customers the perception that the brand has been reinvented. •Hershey should consider a package redesign . Shelf appeal of the current packaging is low. Customers associate the package with off-brand products. •Create a brand image for Take 5 centered around the idea that Take 5 is the candy · bar that "has it all!" This will resonate well with American customers who can relate to ~!e~ling of wanting to have it all-but much more often they feel the need to ~ promise on things in their life.

tilize social~ ia to reach the target market - 78% of people say that social media posts(effec) their purchase decisions.

In conclusion , the overall flavor perception was VERY high. Take 5 has definite potential for growth if Hershey invests money and resources in the brand. Specific objectives include increasing Take S's market share fro~ 5% of the countlines segment of the industry to

~ 0% by 2016, increasing the Take 5 Mnd awareness from 60% to 80% in the first year of ~plementation , and bringing Take 5 sales from 25.1 million to SO million by 2015.

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L SITUATIONALANALYSIS Industry Analysis 1 Competitive Analysis 2 Customer Analysis 4 SWOT Analysis 4

IL PRIMARY RESEARCH Objectives 5 Taste Tests 5

TABLE OF CONTENTS --

Focus Groups 6 Online Surveys 6 \?o s.tBo v' 7

III. TARGET MARKET(!'@ ( STRATEGY Target Market 7 Position Statement 7 Strategy 7 Marketing Objectives 8

IV: MARKETING TACTICS

Distribution 9 Promotional Pricing 10 Co-Branding 10

V: IMC PLAN Commercials 11 Billboards 12 Website 12 Social Media 13 Contest 14 (o v\::KSf-S Future Suggestions 15

VI. MEASUREMENT AND EVALUATION 15

VIL APPENDIX 22

VIII. CITATIONS 35

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I. SITUATIONAL ANALYSIS-------

BACKGROUND: In 2005, Hershey formulated a new" ... delicious salty sweet snack unlike anything else .. r..lThe classic version of the Take 5 candy bar was nugget sized with five layered ingre&ents - pretzel, peanut butter, caramel , peanuts, all covered in chocolate. "[The] candy bar [came] in a standard rectangular r~d packag·e. with metallic go!d letteri.~g_. ''. fu b E r re 'I i O L. \ S. -- I + -S -.:i.-\.\/-J.S _ ((\ ,~ +l-e U}-4, 16 'j "~ . . , , The name was chosen from a previously chocolate covered wafer called Take 5 from cov~"~' # the 1980s. When Hershey formulated the new candy bar in 20Q5, the Take 5 brand ei·, u ev. o- · · name was resurrected . Take 5's brand positioning with Hershex_~ has not been updated since the initial launch.

INDUSTRY ANALYSIS: ~ It is forecasted that by 2016, the United States chocolate c~ _cti~~ market will reach a value of approximately $20 billion (Chocolate). Tbis is arr~ase of 9.9% since 2011. Though the growth in the industry does provid pportunities for success, the pre-dicted average annual growth rate is only 1.98% ich is considerably lower than the average United States annual GDP 9J:0Wth-ol .24% (United States). Both the Asia-Pa­cific and the European chocolate c nfectiona , markets are expected to grow at a much higher rate - with the Asia-Pacific gro rate double that of the United States.

S+cJ.e.s) Though the United ~ gro~ te!as~ _wer than other countries, they represent 20.5% of the global chocolate onfectio~ market (Cho Jat~.:l: The Hershey Company is the leading player in the Unite States chocola e -fecti 1m~,1y market, holding over 40% of the market. The competition in the US chocolate .... ~rec;tio~ market is very tough, with the top four players representing over 86% of the~ ket.

CHOCO LATE INDUSTRY .SEG.'vt ENTATION

• Chcx:<il.atec;o~~C.u: P othu

U.S . CHOCOLATE CONFECTIONARY MARKET SHARE

The HersheyComp11ny 40.6% ...

3().8% Mars, Inc .

Nestle S.A. 9 .4%

Russell S110ver Candles Inc. 5.3% .

· Other 13.9%

Total 100.0% . - . . ..

Figure 1: 2011 Data from MarketLine

Take 5 falls in the chocolate countlines segment (sold in bulk packages to retailers who break them into ind· ·atialitems for resale) : Chocolate countlines is the largest segment of the chocolate c nfection~ market in .the United States. It alone accounts for 45.4% of the market's valu ~ ch was ove~A>illio~ Jin 2011 (Chocolate). The com­petition in the counthn s segment is even m/xe intense than the industry as a whole with the leading companies representing over 92% of the market share.

Voir;+- ~ lJ0-H11

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COMPETITIVE ANALYSIS: The candy bar market at the Take 5 price range exhibits intense rivalry. To find its main competitors a perceptual map was created using less dense to dense and smooth to crunchy on the axes. Take 5 fell in the quadrant dense and crunchy. This shows that main competitors for this type of candy bar are Snickers, Baby Ruth, Pay Day, and 100 Grand. Its secondary competitors are Kit Kat, Pretzel M&Ms, and Twix due to ingredient overlap and level of market share. It is important to note that many of Take 5's competi­tors have considerably larger market share.

MORE DENSE

(JNJCKERSJ3

•;ft<Jfr·'tt.:_

Urnti3 :J~~' •) -

S es !!II!!!' - C • M ... ,.. "' m BlJb•1Jl-Nfv;-M · ~ -::-:. · ~ ~~ '"Ii R

O U O N T tE-~~ c H r1aT•sil~-.i -1 H

y

IIIUW!i'fl (lf!:J)

LESS DENSE

2

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Main Competitors: Snickers: Snickers is a sub-brand of Mars, Inc. and is the world's best-selling candy bar. It contains peanuts, caram~J~ nd nougqt:lj'coated with milk chocolate. Snickers quickly became one of the planet's fclvorite treats after its introduction in 1930 (Mars). Their cur­rent campaign is "You're not you when you're hungry," which· promotes the candy bar as being a filling snack (Exclusive). Snickers has annual global sales of $2 billion (Snick­ers). It is a main competitor to Take 5 due to its salty sweet flavor combination, high densit&nd amount of ingredients

Baby Ruth: Nestle's Baby Ruth is a candy bar made of peanuts, caramel, and chocolate nougat covered in milk chocolate. It was introduced in 1921 (Baby Ruth). Their cam­paign is "This baby really gets you going ," promoting the energy you will get from the peanuts in the candy bar (Baby Ruth Ad) . Because of the salty sweet combination it is a main competitor to Take 5.

Pay Day: Pay Day is a candy bar made of salted peanuts around a chewy caramel center madmHershey. Pay Day was first introduced in 1932 (PayDay). Their current campaign i "~II up and go" which emphasizes the energy you will get from the protein in peanuts J"'\l ommercial). It is seen as a main competitor because of its texture and salty sweet flavor combination.

100 Grand: 100 Grand is made by Nestle and was first produced in 1966. It is made of caramel and crisped rice covered in chocolate (100 Grand). The crunchiness and tex­ture combination make 100 Grand a main competitor to Take 5.

onaarv l;omoe ~\.J---

Kit Kat: Kit Kat i~ olate-covered crispy wafer that is a product of Hershey. Each bar consists of(JJmaller bars that you can easily break apart. Kit Kat is associated with taking a break and is recognized by the jingle "Give me a break, give me a break, break me off a piece of that Kit Kat bar" (Kit Kat). It is considered a secondary competitor be­cause of its crunchy texture.

Pretzel M&Ms: M&Ms were first introduced in 1941 in the United States. M&Ms are a sub-brand of Mars, Inc. However, Pretzel M&Ms were not released until 2010 (Pretzel) . The product consists of pretzels coated in a milk chocolate candy shell. These M&Ms are larger in size than the plain M&Ms, so each package contains fewer M&Ms. Pretzel M&Ms had a total of $18 million in sales from June of 2012 to June of 2013 compared to $9 million for Take 5.

Twix: Twix candy bars originated in the United Kingdom in 1967, and were then intro­duced to the United States in 1979 (History) . Two bars come in a package. Each bar consists of a biscuit with caramel , covered in milk chocolate. Twix's current ad campaign involves two separate factories , each producing Twix bars. One factory produces the~ ft bar while the other produces the right bar (Nudd) . With sales at $81 million, Twix ha~ ) - V\( ~ times the sales of Take 5.

3

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CUSTOMER ANALYSIS: The chocolate industry is focused on a demographic of predominately female consum­ers who are married, age 18-44, employed , have children under 18, and income under i ) 00,000. Adults account for 81% of chocolate consumption. On days when ,Chocolate .kb l1.1 er CP-fc 1s e~~ it's typically eaten only once per day, often as an after dinner dessert or late nig, r nack while watching TV.

Demographics Age

Household Income Census Region Marital Status Children's Age

Ideal Customer 18-34

$60 ,000-$74 ,999 Midwest Engaged

Less than two years old

After looking at the MRI+ database, information was gathered about current Take 5 cus­tomers. The table above shows demogra~ and full data is available in Appendix .

.,1

SWOT ANALYSIS: +~

SWOT ANALYSIS Strengths Weaknesses

-Product of Hershey -Product Packag ing is Unattractive -Unique Ing red ient Combo -Brand Personality is Unclea--Two Piece Bar -Lack of P romotion -Sweet and Sa lty -Accessibi lity is Low -Generally Likeable Flavor -Low Awareness -Dense Bar

Opportunities Threats

-Hershey has the Resources to -Market exhibits Intense Riva lry Invest in Take 5 -Peanut A lle rgies

-Lack of Advertising leaves room for -Lack of Ava ilabili ty Creativ ity -Increasing Health Awareness

-Product Extensions , Co-Branding -Hard to Compete with Estab lished -G lobal Aud ience B rands

Hershey's patronage was listed as a major strength and opportunity. The resources, im­age, and leverage that Hershey can provide should not be undervalued - especially in a market with intense rivalry among long established brands.

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... •II. PRIMARY RESEARCH The development of the situational analysis led to the collection and evaluation of sec­ondary data. Upon reviewing the information, it was noted that many important topics regarding Take 5 still needed to be explored. These questions led to an extensive pri­mary research study, which included focus groups, surveys, and taste tests.

OBJECTIVES \.,J Ir\' <.:.. L,

•Understand the purchasing haWaf the target audience •Develop an understanding of~ t customer needs candy bars meet .ia.,\...v.u-o~

J ~1\er opinions on the taste, look, and brand image of the Take 5 f andy bar (" ~ rr,tasure the awareness level of Take 5 - ~

In order to help market Take 5, it was important to understand the product. 54 taste tests helped measure the overall likeability of the candy bar, as well as the perception of the brand. Students .frem U,e l::.IAi.w:csity; primarily between the ages of 18-24, represented a wide variety of majors, ethnicities, and backgrounds. The questionnaire and full list of responses can be found in the@pendix. ,, . ;,-1 _ .• ~

. . +I -.;. wo.s Ufit-a-Jl.(=c-q} DH t:L~l L.-:--M'' p,~'5-e Key Findings: fl! {E,~r.e"~ J -Only 35% of those surveyed responded positively to brand image but 68% responded positively to flavor. -Pretzel-was the most prominent ingredient, followed by chocolate and peanut butter respectively. Only three respondents tasted the peanuts. - "Boring" was mentioned 24 times to describe the brand image. - Respondents mentioned it looked like an off-brand product. - 67% would definitely recommend to a friend.

-1 -, ..... ,, :s .x

b c: ..., _ c: C(Wl1C! • ns • i1side ·- ... - ~ .i a r rtgredil!nts IM!.ts ns ~ p get kind £i " \ ..Q

che ~~ 1 size ; Elllmel- pretzels aJ T a~e QJ w i 'QIJ 8-. wy type ::: t! I C. i Chocolate

i gang ,.. .i H 11 .... l§Y1• salty, . ~· Ecrunchy c~iei(-=)recomm~nH::-g~~ - 10 ~: .r pretty

,q,rats h wrt,QMn .~t;a, cnbagf ~~ i \\l ·~ ~ '00 mUC £!'0 t'~ ~~g o PicturelaJ.vl ~N\ · ~ ... j

b,y Snack~ 1packaging ~e > package .......... 1 g.c u pretzel - ·is>ni~eat":~Jfo l, ...... nni llc. caramel~ 1]Mi ~ i-~rea1yii~~ ~if sma a,.;~ gttssweet htt . · ~

0 ,·v Efj ~! ~ l ja: ~ ,dlooks w;~~~ f~lot bard Ov:n ~vv. eJc 0P 0(.) 1 ' i l t 11~ . ..... . ~ ~ ~V 0::~ - ! l ::S Th~ bove~ ~rldl repre-

sents the words-c sed during .Q the taste test. The most often

used words are the largest.

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Focus GROUPS: { Students, generally age 18-24, were selected to represent a variety of majors and class

standing at the university. These students were asked to talk about their impressions of-.:tM Take 5 candy ba~ . The participants represented a variety of majors and class stand-ings. Participants signed a confidentiality and consent form to use their answers. A total of~ focus groups were led. (each consisting of 6-8 respondents). These focus group5'orought to light valuable insights ~ t perceptions of Take 5, Hershe~ nd over~ -all customer buying behavior. The full list of themes from the focus groups can be found in the Appendix. . 1 ? .

ti<--~ "

Key Findings: · · -Before they e~ tried the candy bar, many resp~ndents believed they would enjoy it based so1e1y on the ingredients.- ~ r.rnsi stenes -Th~_o~ rall p~rception of ~he taste of th~ candy ~ar was positi~e. '--· ,, ~

. - T e packaging was continuously described as BLAND and BORING . U <})';'~ Pe pl~ responded more positively about the product once they were aware it was '-if- J made by Hers.hey.

-It was noted frequently that the candy bar had a distinct and UNIQUE ingredient combination.

ONLINE SURVEY The objective of the online survey had three main components. The first was to gain insight on consumer buying behavior, needs met by candy bar purchases, and factors leading to the purchase of candy bars. Second, Take 5 awareness and purchase level

lf'-'.iG'> ~ measured. Lastly, respondents were asked to rate candy bar brands on i:i~ f iteri f3) ( ~ 7

··,ef ,,?'rice, brand name, convenient location, flavor, ingredien~ nd packaging. Th~ ~rvey. f .o~~.s-< was created and distributed in Survey Monkey. College aged students were targeted

through email and consumers 25+ were targeted through Facebook posts. A full list of survey results can be found in the appendix. .. ? A; Key Findings: -60% of people have tried Take 5. This is higher than expected, but significantly lower than compet\tors. In comparison, 98% of people have tried Kit Kat. -15% had purchased Take 5 in the last 6 months and 30% said they would be purchas­ing Take 5 in the NEXT 6 months. Other candy bar brands did not see this significant increase. - 18-24 year olds are significantly more likely to believe that candy bars satisfy their nu­trition needs, the need to enjoy many flavors, and their taste cravings. -Flavor was the MOST important criteria on which c~ ~ers purchased candy bars. - When consumers rated popular candy bars on the ~ 1teria listed above, Take 5 per-formed very well on flavor and ingredients. It performed poorly on accessibility, packag­ing , price, and brand name.

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II.TARGET MARKET/POSITION/STRATEGY---•

TARGET MARKET: Take 5 candy bar will be primarily targeting 18-24 year old women and men. These young adults

, X..4. c . ./ prefer the excitement and flavor of the candy bar and consume chocolate regularly (f ee Appen-dix A). They rely heavily on social media for information, purchasing suggestions, and entertain­ment. In fact, research shows that 50% of 18-24 year olds access Facebook during primetime hours. In comparison, only 37-43% watch TV during that same time period (Smith). Though they all utilize social media frequently, their background, ethnicity, and religion is highly diverse. This age group connects with their brands. A typical customer profile is included in Appendix q. "

- Ashley and Josh

The secondary market will include 25-44 year old women. This category specifically aligns with the chocolate industry's main customers. Though most of these women have children and/or spouses, they primarily buy chocolate for themselves. They have a household income between _____ and . A typical customer profile is included in Appendix e

,~

~ ~\~ $' ~r~

POSITION STATEMENT: '1 To those who aspire for a fulfilling life, Hershey 's offers Take 5 - the ultimate candy bar. This

delicious snack is unlike any other candy bar because it satisfies all the sweet and salty cravings.

-r,(r,. 0 \ ~ BRAND STRATEGY: <:o,.\(

In order to combat the low industry growth rate, Take 5 s~<JtJld pursue an increased penetration strate"gy. Wiith this strategy, it is important th, tTake 5 adds perc~ ved value to their produ6l._Jhis can bed~ by promoting the Take"o'candy bar as @,e candy bar that has it all." The unique @ fayers give custom~s everything they wanfin one candy bar. Take 5 contains multiple flavors and texturei -the crunchiness of the peanuts and pretzel, the smoothness of the peanut butter, and'1F,'e chewiness of the carame(i~w hich satisfies virtually every customer need. It is the perfect combination of salty an~ weet. The slogan 'the candy bar that has it all" will resonate well with American customers who can rela1e to the feeling of wanting to have it all-but much more often they feel the need to compromise on things in their life.

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RELAUNCH: As part of this strategy, it is important that Take 5 creates a "re-launch" campaign. This campaign will give Take 5 the opportunity to introduce their newly found identity to cus­tomers. Also, the re-launch will include a package redesign , co-branding, displays, and promotional pricing to entice new customers.

1. Package Redesign: After evaluation of the Take 5 candy bar package us­ing basic graphic design principles (Wee full audit in Appendix D), it is advised that the Take 5 package be redesigned in the following ways:

•Place the "Hershey" name on the package- most people are unaware Take 5 is a Hershey product. In fact, many taste test respondents believed it was an off-brand product (See Appendix A). Hershey has a strong brand image so adding the name would help attract customers. Eventually, as Take 5 builds their own branw ershey can phase out their patronage. •Change the colors on the wrapper. The red and yellow combina­tion does not stand out on the shelf (See Appendix C). It has no appetite appeal, and our research shows that customers view the color combination as "chea~ •Change the "Take 5" font and angle. The angle suggests move­ment. This contradicts the idea of enjoying a candy bar, and many survey respondents noted that it resembled the NASCAR logo. •Create a visual hierarchy on the package by using variance in sizing for the texG •Take off the image of the candy bar, it doesn't look appealingy

2. Product Name: Take 5 should maintain the brand name. Primary research shows that at least 60 percent of people have heard of the Take 5 candy bar (Appendix A). Changing the name of the candy bar could jeopardize the already established base of Take 5 consumers. Also, the name change would be an unnecessary expense, as research shows that the name is not a pri­mary reason for lack of sales.

MARKETING OBJECTIVES:

1. Increase Take 5's market share fro,,So/o of the countlines segment of

the industry t~ <f,0% by 201 ~ 2. Increase thVTake 5 brandawareness from 60% to 80% in the first year6-.,,, 3. Create a strong brand image that resonates with customers1, 4. Reconnect with15drrent customer base to increase their purchasing 5. Increase distribution to make Take 5 available at all Hershey retailers

6. Bring Take 5 sales from 25.1 million to ~O million in the first year

~ lf

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----111. MARKETING TACTics-------

DISTRIBUTION: First and foremost, distribution of Take 5 needs to be increased. Research members vis­ited 15 stores to evaluate Take 5 shelf placement. Only 5 of these retailers sold Take 5! All of them sold Hershey bars, Snickers, and Kit Kat. Accessibility is particularly impor­tant in the countlines segment of the chocolate industry. This is because customers note purchasing specifically out of convenience and opportunity (Appendix A).

The overall Hershey sales channel is divided up into seven retail carriers, in which the company holds the title of being the market leader in CMG sales. The first is ~ass merchandisers, totaling 33% of the net sales, followed closely by supermarkets at 25%. Convenience stores (C-stores) bring in 15% of net sales and the market share within the channel has been continually increasing for the past four years, reaching 31.4% in 2012. The next retail outlets include drug stores and wholesale clubs, which are contrib­utors o;r 0% and 8% to net sales, respectively. The final two carriers of Hershey brands includ ar stores and specialty channels, together yielding 9% of the total net sales (AMA - eting Case Competition Packet).

t The Take 5 candy bar is not distributed amongst all of the channels / he Hershey Com­pany uses. Convenience stores bring in the most revenue to the total net sales at $14 million. Supermarkets, such as Delhaize Group leading in king size sales, and mass merchandisers, such as Walmart, which is the leader in the snack size sales, contribute $4.2 million. Drugstores generate $2.6 million while only $1 mi · . ome from whole-sale clubs, such as Sam's Clue»'hich generates the most e standard loose bars packaged in boxes. The least amount of sales is fro ores with less than $50,000. In June of 2013, Take 5 sales throughout its en ribution were only $25 million (AMA Marketing Case Competition Packet).

Expanding Distribution: Within the markets that are currently used as distribution channels, the supply of Take 5 candy bars should be increased. Supplementary venues within the retail supply chain where Take 5 should be sold include vending machines, point-of-purchase displays in all of the current channels, and specialty stores such as candy shops and gift shops.

The Hershey's Milk Chocolate bar, which can be found in all of the distribution channels in high quantities, has over $170 million sales. This is a great example of a brand within the Hershey Company that shows how increases in sales revenue can be achieved by making the product more readily available to consumers by offering it in additional ven­ues (AMA Marketing Case Competition Additional Information Packet). In order to en­courage retailers to stock Take 5, volume discounts and allowances should be offered .

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PROMOTIONAL PRICING AND PACKAGING: It is especially important during the first stages of the re-launch that Take 5 uses pro­motional pricing to encourage purchases. It is recommended that coupons be placed in retail locations. These coupons will be for one FREE Take 5 candy bar with the pur­chase of two Hershey products. In addition, it is recommended that Hershey specifically work with grocers that use rewards cards. These rewards cards have the ability to track consumer purchasing habits. ·Offer FREE Take 5 coupons to customers that have pur­chase~I\>r more candy bars in one year.

-~ w around Halloween). Instead of including Take in the variety mix, Hershey should Take 5 candy bars should be placed in Hershei s ack-sized variety packs (especially

initially place a graphic on the bag that says " wo Take 5 candy bars fre~"! This will en-courage customers to search through the bag and try their free prize. ~ V'\ ~\ ~ 6(v'" 0 K,;;:

Displays should be placed at supermarkets and mass merchandisers. These card­board displays should invite customers to try the "new" Take 5. It is important that these displays are aligned with the strategy and positioning mentioned above. The aim is to reinforce the brand identity and value at every step of the purchase process.

CO-BRANDING: Take 5 should also consider co-branding with Dairy Queen during the re-launch of the Take 5 candy bar. Dairy Queen currently sells Blizzards featuring Hershey products so the relationship is already established . Dairy Queen also has over 4,500 locations throughout the United States (Jorge). Using Take 5 pieces (or ingredients) inside DQ .blizzards will bring awareness and customers t<? the product. Also, if the DQ campaign Ts launched simultaneously with the Take 5 re-launch, both companies can benefit from these synergies.

IV. IMC PLAN----------• It is important to note that throughout this pla~ ach advertising outlet is projecting the same message. One of the weaknesses of the Take 5 brand is that the brand image is unclear. This IMC plan will incorporate many elements of advertising and marketing with a cohesive strategy that portrays Take 5 as ''.the candy bar that has it al! "

::.:: A Budget, Timeline, and additional IMC data available in the appendix.

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TELEVISION: , The theme throughout each commercial reflects the Take 5 slogan '} he candy bar that has it all. " Each of the suggested commercial ideas present a situatl()n in which the characters wish to "have it all" only to end up having to compromise with their results. However, when eating a Take 5 there is no need to settle- therfv'..eJ~)lcious and unique flavors satisfy consumers' sweet and salty cravings. Becaus~ h~~ach commercial will display the layering of the ingredients and an announcer will name and describe each layer as it appears. To implement Take 5 television commercials , we advise con­tracting an advertising agency that has a video production division. The following series of commercial suggestions are bel ieved to be relatable situations to either the primary or secondary target market. They should increase awareness levels of the Take 5 brand and generate an interest and a desire to purchase the candy bar.

1. "Bad Hair Day" This television advertisement would take place in a beauty shop. A young woman would enter requesting a new, trendy, and eye-catching hairstyle. The beautician says she will work her magic to give her a hairstyle no one will ever forget. When the "op­eration" is over the young woman's hair turns out to be too flamboyant and she real­izes she cannot have it all in a hairstyle. Again, the end of the commercial will display that the Take 5 can give her and others watching all that they want in a candy bar.

2. "The Imperfect House" A couple is house searching in this television commercial. The husband has his opinion on what he wants his house to have and the wife has her own set of qualities the house has to have. Their realtor presents them with many options and finds them a house that has it all. Then she presents them the house's listing price, which turns out to be $100,000 over the couple's budget. The end of the commercial will reso~ te that you can 't have it all in a house but you can have it all in the Take 5 candy bJ.cJol­lowed by the candy bar's ingredients and packaging.

·3."He 's Not the One" This Christmas commercial takes place in an upscale, bustling bar. Two women are conversing and one brings up that she has met a man who has many great quali-ties (he has a jolly personality, is great with children , owns his own business, etc.). Just as the other woman asks to meet th is man, Santa walks into the bar and up to the women. The theme of this commercial is that a man may have some qualities a woman wishes for but they may not have them all. The end of the commercial dis­plays the candy bar and the ingredients, which show that Take 5 is the ultimate candy bar. An example script is in the Appendix.

4."Tricked Out Truck Fail" The final TV advertising idea targets 18 to 24 year old males within our primary target market. A man will be showing his friends his truck, which he just finished adding cus­tom equipment (subs, lift kit, front grill guards, cherry bomb muffler, etc.). However, when he goes to start his truck it will not start resulting to the ridicule of his friends. The final cut will be to the Take 5 candy bar and an announcer will state its "have it all" uniqueness.

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Page 14: jl - WordPress.com · name was resurrected. Take 5's brand positioning with Hershex_~ has not been updated since the initial launch. INDUSTRY ANALYSIS: ~ It is forecasted that by

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The suggested time slots for these commercials to be run are on daytime and ~ e t~~ parts, Monday through Friday, and spot announcements in secondary markets. According -;,c the MRI + data from the Fall of 2012 for Candy/Sweets/Snacks bought in the previous six · months, the types of TV shows adults watch are Day Time TalkNariety (81.5%), Comedy/ Variety (80.7%), and ~ (75.4%). Example television channels highly watched by these adults are MTV (80.1 %), ABC Family Channel (78.9%), and the Hallmark Channel (76.6%). Another outlet where the proposed commercials can air is on online outlets, such as You Tube during music videos, ABC.com (used by 77.8% of the adults), and Hulu.com (76.3%).

BILLBOARDS: Hershey can take advantage of outdoor advertising in the form of billboards and transit opportu­nities. The Seattle, San Francisco, Los Angeles, Phoenix, Denver, Dallas, Chicago, Atlanta, Mi­ami, and New York metropolitan areas will be targeted. These ten metro areas have an estimated population of 76.8 million people for 2012. From 2010 to 2012, these areas have exp~rienced a growth from as little as 0.65% in Chicago to as high as 4.28% in Dallas. Major i nteirstates in these ten metro areas will be targeted. Central Puget Sound Regional Transit Authority in Seattle, Bay Area Rapid Transit in San Francisco, Los Angeles County Metropolitan Transportation Au­thority, Valley Metro in Phoenix, Regional Transportation District in Denver, Dallas Area Rapid Transit, Chicago Transit Authority, Metropolitan Atlanta Rapid Transit Authority, Miami-Dade Transit, and Metropolitan Transportation Authority in New York City rail and bus stops will display Take 5 advertisements. The advertisements featured on both the billboards as well as the rail/bus stops will be fairly similar and focus on the "have it all" theme. The billboards and transit advertisements will focus entirely on the flavor, ingredients, and visual appeal of the candy bar. #haveitall will be featured on every advertisement.

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