Sweet Success!

How Hershey’s® Cocoa

Leveraged Digital to

Drive Strong Business

ResultsApril 24, 2012

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Business Situation:

Cocoa category growth was sluggish

Sales of Hershey’s® Cocoa were below category growth rate

Hershey’s® Cocoa market share was declining

Competitive landscape was showing increased growth, especially in private label

Business Strategy:

Leverage the iconic nature and heritage of the brand and its key role in baking/recipes, while also driving brand relevance

Heritage Marketing Lever: Launch limited-edition, vintage-style packaging

Relevance Marketing Lever: Activate the brand through a multi-channel digital program

The “Hershey’s® Cocoa Iconic Recipe” Promotion was created & launched in February 2011

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Hershey’s® Cocoa Iconic Recipe Sweepstakes Overview

Program launched February 2011 and ran thru April

Members of the Hershey’s® Kitchens community were invited to vote for one of 15 selected recipes they felt was the most iconic Hershey’s® Cocoa recipe

Over 1.1m nostalgic can labels were distributed

POS recipe cards, coupon, shelf tags and a PR campaign were designed to generate additional interest from consumers, bakers, bloggers and food writers

Grand prize winner won a trip to Hershey, PA and the Hershey’s® Kitchens to prepare the winning recipe

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Multi-Channel Digital Program to Drive Engagement

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Redesign of HersheysKitchen.com

Redesign Objectives:

Be a best-in-class home for chocolate recipes

Ensure HK.com is a trusted partner in chocolate recipe occasions

OWN Chocolate Dessert recipes on the web

Deepen relationships and engagement w/consumers

Drive sales

Increase new visitors

Increase repeat visitors

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Before: After:

Redesign of www.HersheyKitchens.com

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Promotion

Site Design

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Site Performance Results

Site Performance Metrics

Site visits +20%

Page views +11%

Recipe views +25%

Mobile views +40%

Time on site +5%

Promotion Metrics

180,000 visits

350,000 page views

100,000 entries

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Site Performance Results

Total Visits to Hersheyskitchens.com since re-launch = 2,554,008

Nov 2010 290,950 Dec 2010 770,226 Jan 2011 378,171 Feb 2011 403,636 average increase in Jan-April of +28.3% vs. November Mar 2011 346,185 Apr 2011 364,920

+138% increase in Hershey’s® Cocoa page views during Feb vs. Dec

+159% increase in Hershey’s® Cocoa page views during March vs. Dec

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Branded Recipe Integration and Banner Campaign

Hershey’s® baking brands were integrated into recipes on TasteofHome.com

Hershey’s® branded products replaced generic ingredient keywords in recipes on the site

Featured Hershey’s® ingredients included baking cocoa and various flavors of baking chips

Recipes were supported by banner ads as well as “Sponsored by Hershey’s® Kitchens” logos

The banner campaign and branded keyword integration generated multi-million impressions +450% above estimated levels

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Hershey’s Kitchens Facebook page launched

Hershey’s® Kitchens Facebook page was launched in October and experienced steady fan growth. Hershey’s® Cocoa and associated recipes were regularly posted and generated strong fan engagement

Hershey's Kitchens Facebook Fan Growth

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1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Oct, 10 Nov, 10 Dec, 10 Jan, 11 Feb, 11 Mar, 11 April, 11

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Earned/Shared Digital Media Activation

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Business Results

The Baking Cocoa Category and household penetration went up markedly

Hershey’s® Cocoa 2011 Factory Sales exceeded expectations at more than +15% growth

Hershey’s® Cocoa share growth exceeded category growth rates

Household penetration of Hershey’s® Cocoa went up nearly 10%

YTD velocity increased more than +15% to help drive sales growth

Leading competitor’s sales, distribution and household penetration went down

Hershey’s® Cocoa Iconic Recipe Sweepstakes drove 34M media impressions

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Kitchens Facebook presence continues to grow

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Hershey’s® Kitchens YouTube Channel launched 4Q2011

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And the winner is…

Iconic Cocoa Recipe Winner’s

“Day at Hershey”

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