The Hershey CompanyRecommendations Report for Marketing Team
Overview • Strengths
• Weaknesses
• Opportunities
• Threats
• Recommendations
Strength Brand Loyalty
• Raise prices without losing customers
• Raise prices without losing income
Candy Bar Prices
Pric
e
$0.25
$0.50
$0.75
$1.00
$1.25
Year2003 2007 2008 2009 2010 2011 2013
Hershey’s Net Income
Net
Inco
me
$0
$225,000
$450,000
$675,000
$900,000
Year2004 2006 2008 2010 2012
Source from Mergent Online
Strength Brand Awareness
VS
• Customers choose Hershey’s over smaller brand names
Strength Micromarketing
• Customization
• Small target audience
• High prices
• High marginal revenue
Weakness American Dependence
• Hard for Hershey’s to Expand
• Does not have leverage over competitors
• Nestlé: international company
• Mars Inc.
Sales
20%
80%
North America Rest of the world
Opportunity Expansion in Asia
• Through Shanghai Golden Monkey
• Secondary and Primary research
• Expand from China through Asia
Opportunity High/Low Pricing
• Lower price of dark chocolate
!
!
• Raise Price of high-sugar products
Threat Competitor Advertisements
• Mars Commercials
• M&M
• Snickers
• Super Bowl
• Top ranked advertising event
Recommendations
• High/Low Pricing Strategy
• Advertisements
How do we get there?
Recommendation High/Low Pricing
• How:
• Price low sugar goes down
• Price higher sugar goes up
• Sales will not drop because of brand loyalty
Recommendation High/Low Pricing
• Why?
• Sugar price increase
• Health concerns
• When?
• 2015
• After sugar prices go up
Recommendation Advertisements
• How:
• More commerciales
• Target the audience
• Advertise Hershey’s “health concerns”
“Life is delicious”
Recommendation Advertisements
• Why?
• Mars Inc.
• Nestlé
• When?
• 2015 superbowl
• After Hershey’s create memorable commercial
Conclusion • Great brands
• Few marketing weaknesses
• Implement the high/low pricing strategy
• Feature a Hershey’s Super Bowl commercial
Questions?