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?