Marketing Objectives Strategies Of Hershey Company: A Case Study

Situation analysis

Discuss About The Marketing Objectives Strategies Of Company.

Hershey Company is one of leading companies in the United States which is incorporated by Milton Hershey. The organization is a leader in the world of kisses chocolate. Furthermore, here is the discussion about the marketing plan which is implemented by the organization for promotion and selling of the kisses chocolate in Australia. It has been noted that Hershey has become a global leader in the field of collaborating and co-branding with other organizations to create a new products and services. With innovations and effective strategies, the company has been able to handle the obstacles and issues of the marketplace. Kisses chocolate product has been selected in the task. It is one of the attractive and well known brands of the firm. The report also focuses on the Australian external market that could affect the progress of the firm. The paper explains the situational analysis that is done by Hershey in the Australian country to implement a new marketing plan in the marketplace (David, 2011). Marketing objectives, segmentation, targeting, positioning (STP) strategies and marketing mix strategies have been explained in the task. Lastly, an appropriate budget is made by the company to initiate the business activities and operations successfully. Marketing plan is made by the company in an effective way so that it helps in estimating the future risks and challenges in the competitive market. Also, it will help to stand out against the rivalries and further will help in making a strong and attractive image in the eyes of the consumers. More detail of the task has been detailed below.

The chocolate industry is growing and leading worldwide. Hershey Company is well-known food Corporation with its headquarter is located in Hershey, Pennsylvania. The company was incorporated in 1894 in the United States. They have three mega-distributors’ centers with labor management systems and modern technology (Harsheycompany, 2018).  The company’s products are sold in more than 60 countries across the world. Hershey chocolate is available across the United States due to their wide and attractive network of distribution. The organization is a member of the world Cocoa foundation. Apart from this, it is associated with Giant center and Hersheypark stadium. The core values include collaborate, deliver, develop, question, innovate and inspire (Harsheycompany, 2018). It has been analyzed that Hershey is a global leader in the global market. The organizational structure of Hershey is unique and strong. The organization produces a list of a variety of chocolate products and services in the international market. Teenagers, professionals, and children are covered in the target market of the firm.

SWOT analysis

The situation analysis refers to a collection of methods, and tools that managers use to analyze and evaluate an organization’s internal and external environment to understand and evaluate the organization’s capabilities, business, customers, and environment (Thiele and Lehner, 2012). This analysis helps to know and evaluate the marketing trends and preferences of the customers in the Australia. Along with this, it analyzing and identifying the needs and requirements of the wide range of the customers across the world (Kizil et al, 2013). SWOT analysis, pestle analysis, and porter five forces analysis are done by Hershey company to initiate the marketing plan in the Australia. The porter five forces analysis has been discussed below.

Threats of new entrants: It shall be noted that threats of new entrants are low because of the existence of the economies of scale and changes in the needs and requirements of the consumers. These elements determine the position of the competitors in the Australian country (Porter, 2011). 

Bargaining power of suppliers: It has been analyzed that bargaining power in the hands of the suppliers is quite high because of the wide range of suppliers of the chocolate industry is limited and there is no substitute products are available in the market as well. The company needs to find and evaluate the best alternate locations and different techniques for gaining cocoa beans.

Bargaining power of buyers: It is seen that bargaining power of buyers is low to moderate. The large market retailers can bargain for cheaper prices and eliminate the industry’s profits but the distinguished products and services remarkably eliminate the power of buyers (Wheelen and Hunger, 2011).

The intensity of the rivalry among the competitors:  The intensity of the rivalry is high in the global market that could affect the profitability and revenue of the firm. The company operates and manages in a very competitive confectioners industry. This competition may influence the outcomes of the organization adversely (Taghavifard et al, 018).

Threats of substitutes: It has been noted that threat of the substitutes in the chocolate industry is moderate that could hamper the image of the firm in Australia. Many companies are producing the similar products and services as compared to Hershey. Apart from this, threats of unhealthy image of chocolate products among the customers in the global market. It is noted that Hershey needs to focus on the porter five forces analysis to beat the competitors (ALAmeri, 2015).

Marketing goals and objectives

SWOT analysis stands for strengths, weaknesses, opportunities and threats. This analysis is done by the company to analyze and identify the opportunities and threats of the firm (Mohapatra, 2012). The SWOT analysis has been detailed below.

SMART goals are used by the Hershey to initiate the marketing plan in the Australia. SMART stands for specific, measurable, achievable, results-oriented and timed. Hershey Corporation has set some of the specific long term goals and objectives in order to attain mission and vision in the competitive market (Lamb, Hair and McDaniel, 2011). Rising marketplace competition is significantly impacting Hershey’s business activities and results in the country. The organization wants to maximize the expenditures, for advertisements, promotions and continue to introduce and establish the new products and services. The foundation of the company marketing strategy is their unique and strong brand equities, best quality of the products, product innovation, mass distribution capabilities and manufacturing expertise. The company stimulates the sales of specific products with promotional campaigns and programs at various times throughout the year (Boone and Kurtz, 2013). The marketing objectives of Hershey for marketing plan are elaborated below.

• To increase sales through promotional campaigns and programs planned through the year during the holiday seasons.
• Continue to explore globally and have a stronger presence in the oversee market with a reduction in their reducing Asian market.
• Promote and encourage their core brands like kisses through numerous magazine ads and TV.
• To leverage existing products to innovative markets and customers through the new collections of the products and services in the Australia.
• Making up 10 profit rate each year in an effective way by valuing and protecting the rights and interest of the stakeholders and workers while maintaining the customer’s morality and loyalty.
• By raising the sales percentage by maximizing the manufacturing rate of the core brands.
• Introduction of tasty and delicious chocolates in local markets through innovation in research and development.

On the other hand, the main goal of Hershey is to attain desired long-term goals and objectives in the Australian market. From the above-mentioned marketing objectives, it has been analyzed that the overall objective of Hershey is to expand and flourish the business globally with its products penetrating into the local markets. It will help to attain loyalty and confidence of the workers in the international market. The other aim of the company is to attain people’s satisfaction of feeling pleased and looking good. This can be possible by rendering the tasty kisses chocolates at appropriate prices. Hershey takes each and every action after considering the values and beliefs of the consumers (Grifoni,’Andrea  and Ferri, 2012).

Segmentation is the process of dividing the market into submarkets to accomplish the long term goals and objectives. It is the process of identification and analyzing the buyers for kisses chocolates within a market who share their similar needs and buying behavior. The main aim of the segmentation is to match groups of buyers with the same bunch of needs, requirements and buying behavior. The kisses products are segmented on the basis of demands and preferences of the Australians. It has been noted that Hershey needs to promote and inspire the health benefits of their kisses chocolate product. It also helps in changing the minds and thinking of the consumers as to chocolate being an unhealthy snack.

Target marketing strategy is also a unique strategy that increases revenue and profitability as they want in the competitive market. It is analyzed that consumers change their needs, tastes and preferences for the kisses product, thus it is not surprise that consumer’s wants for kisses chocolate has changed as well. They want high variety which ensures the industry to flourish and expand on their product line. This provides a wonderful opportunity for increasing and enhancing the sales and profitability of the new products. The main target group of Hershey in Australian includes children and adults who want to eat chocolates highly. After the various researchers, it has been stated that Hershey focuses and analyzes the expectations and requirements of the target market to cope with the competitors in the Australian market.

One of the empirical and important strategies that used by Hershey is positioning strategy that maximize the outcomes and minimizes the risks of the market. Positioning may be defined as the image of a specific product or service as seen by the consumers that are generated by the marketers through advertisement and promotional activities. An effective and attractive positioning builds and develops an image of in the minds of the customers across the world. It has been noted that differentiation and positioning in the product will create a great image and value proposition for the business and helps to gain a competitive benefits that eliminates the competition.

Some of the marketing strategies to implement a marketing plan for attaining long-term mission and vision have been stated below.

Market penetration strategy: One of the significant strategies for Hershey is market penetration that helps to beat the competitors in the Australian country. Through market penetration strategy, Hershey is able to focus on the selling of the existing products and services to gain a higher market share globally (Blowfield and Dolan, 2014). Under this strategy, effective and dynamic actions are taken by the firm to expand and flourish the business actions and operations in the dynamic market. It will also increase the sales and profit percentage of the firm. By using this strategy, the organization has been able to focus and evaluate the plans and policies of Hershey. The market augmentation can be done by simultaneously the market with market penetration and product innovation (Keller, Parameswaran and Jacob, 2011).

Market development strategy: Hershey is unique and extending the practically of its market expansion and development strategy by controlling and stimulating the product innovation and R&D sector for the kisses chocolate in the international market. Market development for Hershey Company becomes more incorporated with the company’s acquisitions, partnerships and expansion. Thus, Hershey is also focusing and analyzing all these respects (Manza, 2014).

Diversification strategy: The kisses chocolates provide satisfaction to the consumers because these chocolates are made in different tastes. The company focuses on the diversification strategy to differentiate its products from the competitors. The products can be rendered at a higher competitive price (Gautam and Agarwal, 2010). The company created a new product such as kisses chocolate that was diverse. The organization produced the new products such as kisses chocolates in order to meet the demands and requirements for multi textural eating experiences and various snacking occasions. One of the significant benefits of the diversification strategy is increasing performance and productivity. Diversification strategy improves and eliminates the risks and challenges of the Australian country (Raphan and Friedman, 2014). 

Marketing mix strategy: The marketing mix is one of the effective and dynamic strategies that can be used by the firm while implementing a marketing plan effectively. The marketing mix for Hershey has been detailed below.

Product: Hershey is a popular brand which renders kisses chocolates and other sweet syrups and sauces. The wide range of products and services are available in different features, size, and shapes. The conical shape of the company’s kisses chocolates helps in attracting and retaining the potential customers in the country. Rapidly product innovation in its marketing mix strategy has supported the company to grow and flourish the business over the last few years. The kiss chocolates are positioned as health and tasty for growing kids. The products of the firm include kisses, Kit Kat, Almond Joy, Icebreakers, Bubble Yum and Rolo. If the company makes the plan to sell the kisses chocolates in the Australian market it needs to focus on the product strategy in such country (Santos-Vijande,  López-Sánchez and Trespalacios, 2012). 

Price strategy: Hershey is the biggest and well-known brand and charges higher prices as compared with other competitors. The organization focuses on the requirements and needs of the customers to increase and enhance the sale of the kisses chocolates. It targets foreign tourists, children, upper and middle-class people who want to eat kisses chocolates. The prices vary from $10 to $50. The company set the prices of kisses chocolates after considering the choices and needs of the consumers. Along with this, Hershey identifies and focuses on the prices of the rivalries to maximize the number of clients in the marketplace. The organization sets the prices of the kisses chocolates after considering the features and quality of the products in the Australia. 

Promotion strategy: One of the significant strategies that help to increase and improve the sale of the kisses chocolates in Australia. The company can use effective promotional and advertisement strategies to promote the kisses chocolates in such country (Drewniany and Jewler, 2013). Promotion is done by Hershey through TV ads, Billboards, Magazine. The organization mission is to create delicious and tasty chocolate that might be enjoyed by everyone globally. The firm is also promoting its kisses chocolates through advertisement by print media and electronic media. Apart from this, the organization offers various types of schemes such as sales and premium packs to attract a large number of the customers in the marketplace (Savitz, 2013).

People strategy: It has been noted that Hershey maintains effective and dynamic management team to handle and manage operations and activities in the country. Effective leadership styles shall be used by the leaders to motivate and encourage the employees for performing tasks and duties in a hassle-free manner. Having an effective and unique team leads to increase productivity and effectiveness of the organization as well as employees. No company can survive and grow its business activities without maintaining an effective workforce at the workplace. It has been stated that the company should enlist an effective and potential workforce to increase sale and minimize the additional cost of the firm.

Physical evidence: Before purchasing the kisses chocolates and any other food products, physical evidence shall be collected by the consumers. It will distinguish the products and services of Hershey from the competitors (Kimmel, Weygandt and Kieso, 2010).

After making the initiating the strategies, monitoring and control are done by the company to earn maximum outputs and returns. The monitoring and control by Hershey Company is effectively and successfully carried on through the balance control card method monitoring and analyzing the four perspectives including internal perspective, financial perspective, customer perspective and innovation and learning perspective. Effective and unique supply chain management and control activities shall be used by the company to implement the marketing plan successfully and effectively in the Australia. Besides this, budget also plays a critical role to make marketing plan in a hassle-free manner. A budget is decided by Hershey Company in marketing strategies and programs (Doyle, 2011).

Since Hershey has been able to make a strong and unique financial position in the global market. To develop and implement a contingency plan for kisses chocolate, the organization would likely to improve and enhance the campaigns and programs in the marketplace. It will help to tie up with public relations firms.

Conclusion 

From the above mentioned analysis, it can be concluded that Hershey Company is one of the biggest chocolate leaders in the North America. Also, it is one of the oldest US manufacturers of chocolate and non-chocolate confectionery related to the grocery products and services. The company produces its chocolate products according with their mission statement. Chocolate Bar, Kit Kat, Hershey’s kisses, Almond Joy are main brand of the company. The above mentioned shows that how the firm makes an effective and unique marketing plan for selling of the kisses products and services in the international market. It is the second part of the assignment which provides information about the marketing plan of Hershey Company. It shall be noted that situational analysis such as SWOT analysis, pestle analysis and porter five forces analysis are done by the company to evaluate and identify the opportunities and threats of the market as it also helps the organization to eliminate and reduce the risks and challenges of the marketplace. To implement marketing plan successfully, SMART goals are set by Hershey Company and further dynamic strategies are initiated by the organization to promote and encourage the kisses chocolates in the global market. Apart from this, effective budget is made by the Corporation to implement the unique marketing plan for development and promotion of kisses chocolates. 

References

ALAmeri, T.A., 2015, August. Impact of knowledge sharing on decision making and situation analysis. In International Conference on Knowledge Management in Organizations (pp. 134-145). Springer, Cham.

Blowfield, M. and Dolan, C.S., 2014. Business as a development agent: evidence of possibility and improbability. Third World Quarterly, 35(1), pp.22-42.

Boone, L.E. and Kurtz, D.L., 2013. Contemporary marketing. Cengage learning.

David, F.R., 2011. Strategic management: Concepts and cases. Peaeson/Prentice Hall.

Doyle, C., 2011. A dictionary of marketing. Oxford University Press.

Drewniany, B.L. and Jewler, A.J., 2013. Creative strategy in advertising. Cengage Learning.

Gautam, T. and Agarwal, R., 2010. Diversification plans of Prime Technologies. Management Decision, 48(3), pp.456-464.

Grifoni, P., D’Andrea, A. and Ferri, F., 2012. An integrated framework for on-line viral marketing campaign planning. International business research, 6(1), p.22.

Harsheycompany. 2018. About us [Online], Available from 15^th May 2016, [Accessed from https://www.thehersheycompany.com/en_in/about-us.html]

Harsheycompany. 2018. Our values [Online], Available from 15^th May 2016, [Accessed from https://www.thehersheycompany.com/en_in/about-us.html]

Keller, K.L., Parameswaran, M.G. and Jacob, I., 2011. Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India.

Kimmel, P.D., Weygandt, J.J. and Kieso, D.E., 2010. Financial accounting: tools for business decision making. John Wiley & Sons.

Kizil, C., Eddy, V., Clary, L. and Crowell, K., 2013. Hershey’s Entry to the Australian Market with a New Brand: An Accounting and Marketing Perspective. Emerging Markets Journal, 3(2), p.97.

Lamb, C.W., Hair, J.F. and McDaniel, C., 2011. Essentials of marketing. Cengage Learning.

Manza, K., 2014. Making chocolate sweeter: How to encourage Hershey Company to clean up its supply chain and eliminate child labor. BC Int’l & Comp. L. Rev., 37, p.389.

Mohapatra, S., 2012. IT and Porter’s Competitive Forces Model and Strategies. In Information Systems Theory (pp. 265-281). Springer New York.

Porter, M.E., 2011. Competitive advantage of nations: creating and sustaining superior performance (Vol. 2). Simon and Schuster.

Raphan, M.A.R.T.I.N. and Friedman, H.H., 2014. Adaptivity, creativity, and diversification in the age of convergence. Business Quest.

Santos-Vijande, M.L., López-Sánchez, J.Á. and Trespalacios, J.A., 2012. How organizational learning affects a firm’s flexibility, competitive strategy, and performance. Journal of Business Research, 65(8), pp.1079-1089.

Savitz, A., 2013. The triple bottom line: how today’s best-run companies are achieving economic, social and environmental success-and how you can too. John Wiley & Sons.

Taghavifard, M.T., Amoozad Mahdiraji, H., Alibakhshi, A.M., Zavadskas, E.K. and Bausys, R., 2018. An Extension of Fuzzy SWOT Analysis: An Application to Information Technology. Information, 9(3), p.46.

Thiele, M. and Lehner, W., 2012. Real-time BI and situational analysis. In Business intelligence applications and the Web: Models, systems and technologies (pp. 285-309). IGI Global.

Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy. Pearson Education India.

Wiist, W.H., 2011. The corporate play book, health, and democracy: the snack food and beverage industry’s tactics in context. Sick societies: Responding to the global challenge of chronic disease, pp.204-216.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order