Hershey marketing plan - 3025 Words

Hershey marketing plan (Essay Sample) Content: Hershey Marketing Plan Name: Instructor: Date: Contents  TOC \o "1-3" \h \z \u  HYPERLINK \l "_Toc435224386"
Executive Summary  PAGEREF _Toc435224386 \h
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Introduction  PAGEREF _Toc435224387 \h
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The Marketing Environment of the Industry  PAGEREF _Toc435224388 \h
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Economy  PAGEREF _Toc435224389 \h
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Environment  PAGEREF _Toc435224390 \h
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Political  PAGEREF _Toc435224391 \h
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Competitors  PAGEREF _Toc435224392 \h
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Influences or industry landscape  PAGEREF _Toc435224393 \h
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Strength  PAGEREF _Toc435224394 \h
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Current Situation of the Product to identify the Problems and Opportunities  PAGEREF _Toc 435224395 \h
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Micromarketing  PAGEREF _Toc435224396 \h
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Keeping current, honest marketing  PAGEREF _Toc435224397 \h
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American Dependence  PAGEREF _Toc435224398 \h
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Opportunities  PAGEREF _Toc435224399 \h
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Stagnation and inability to exploit opportunities  PAGEREF _Toc435224400 \h
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Recommendation  PAGEREF _Toc435224401 \h
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High/low pricing strategy  PAGEREF _Toc435224402 \h
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Advertising  PAGEREF _Toc435224403 \h
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Conclusions  PAGEREF _Toc435224404 \h
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Bibliography  PAGEREF _Toc435224405 \h
12  Executive Summary Hershey Food Company has witnessed tremendous growth and this has been linked to i ts marketing strategy, which has helped it beat off competition in a highly competitive industry. Priding itself as one of the global leaders in food and confectionery industry, Hershey’s steady business model is built around sustainable as well as responsible operations that have remained almost unchanged. The marketing plan of the company involves a vital part in which organizing and communicating the corporate social is encouraged even as it seeks to sell it range of products to the esteemed clients. This evidences that the company seeks to market its products while observing business ethics, which is mirrored in the Good Business slogan that has seen the organization continue to develop value for shareholders. Indeed, it is the intention of the company to utilize the model whilst evaluating as well as prioritizing the existing commitments and emerging opportunities including those linked to marketing investments leading to the wellbeing of stakeholders as well as value ch ain. The company’s growth will continue being guided by detailed market analysis to help meet client needs. However, challenges in the modern business environment remain an improved marketing plan would help the company grow even further. Indeed, the company faces strong competition in a swiftly changing business environment and it is recommended that it reposition itself in the market to retain its strategic position. Introduction This marketing plan is about the Hershey company, which is renowned globally and is widely viewed a global leader in confectionery and food industry. It was incorporated under Delaware State’s laws in 1927 as the successor to the family business started by M. S. Hershey. In fact, the company is among the largest producers of chocolate throughout North America. The firm’s principal product range include confectionery and chocolate with such products as beverage and food enhancers including baking ingredients, beverages, toppings as well as mint and gum refreshment products. These products are sold and distributed in excess of 80 brand names underlining the firm’s solid position in the market. As well, the company’s operates in different segments across the world such as the United States, Brazil, Mexico, Canada, as well as other international locations including China, Korea, Japan, and Philippines (Alfonso 2009, p 4-6). The company markets confectionery products in up to 50 countries globally. This signifies a mammoth marketing drive and for segment reporting reasons, the company’s operations are aggregated in the Americas, which is based on similar characteristics (economic, distribution chain, client, local jurisdictions). Problem statement: Hershey has faced the challenge of taking advantage of global growth in the food and confectionery industry and needs to reevaluate its marketing strategies to seize the opportunities presented. The Marketing Environment of the Indust ry The confectionery industry has witnessed considerable growth over the last two decades or so. This includes the marketing environment, which has continued to witness unprecedented transformation as other industries such as information technology and health lead to significant changes. Morris (2014, p 3) notes that the global industry was expected to hit U.S $117 billion in 2014 alone, which underlines the enormous potential of the industry. In fact, a typical day sees approximately a billion persons consume confectionery products. This insinuates a business environment that is ripe for marketing even though competition in the industry has skyrocketed in recent years. Economy Yet, concerns over the industry linger for companies such as Hershey as they seek to operate globally. A key factor involves economic viability of different options available to the firm. Worth noting, is that the prices of cocoa and sugar may not show considerable fluctuations as they did, but they remain quite high due to speculators trading in the commodity market and no longer adhere to demand-supply model (Grewal and Levy 2012, p 419). Environment As well, Hershey wants to market and sell its products in various countries and this introduces the legal environment factor. In fact, the company ought to consider export as well as import tariffs and quotas as far as finding cocoa and sugar suppliers are concerned. As well, labor laws on wages, working conditions, and age need to be complied with despite the cocoa/chocolate industry facing unparalleled criticism over evidence of unethical conduct during production. For instance, the story of child labor in cocoa-producing West African nations has remained and any marketing drive must seek to overcome such hurdles (D’Antonio 2007, p 59). Nonetheless, the laws and policies governing the legal environment vary between countries and Hershey must decide what model of operations it uses. Political In addition, political factors co me into the fold and likely to influence the kind of FDI (foreign direct investment) the company is allowed to develop. As an example, India has longstanding restrictions with regard to foreign business set up in the country and a wholly owned subsidiary may not be easily accepted. Such a move is line with the nation’s drive to grow the domestic market that has increasingly witnessed slump in the last half- century or so (Brechner 2011, p 509). Worth noting, is that this policy has been met with opposition since the beginning as it deters increased foreign investment, and subsequent regimes have sought to relax the measures. This insinuates that the business environment changes almost with every new regime. Nonetheless, Hershey is also affected by political factors of nations it sources some of the raw materials for making chocolate including the West African region. Political stability in some countries such as the Ivory Coast has remained irritable to say the least. In fact , the future of Hershey cocoa as a raw material from the region remains questionable. Competitors The company’s major competitors in the confectionery industry include Nestle, Mars, as well as Mondelez International. These companies are known to provide clients with almost similar products as offered by Hershey, and aggressive marketing is needed if the firm is to take advantage of the massive potential evident in the industry. Indeed, competition is skyrocketing if one considers that Hershey operates internationally, which characteristically requires research on local competitors leading to tailored marketing strategy. For instance, Hershey has developed a reputation in the United States and regional nations as a company offering quality chocolate products at affordable prices. Yet, other countries including those within the American continent have been known for artisan chocolate products and often unwilling to sacrifice quality. While the confectionery indust ry might be looked at as a block, there is need to break it down for marketing pointers. Hershey has concentrated on the chocolate segment in recent years and its United States market share is approximated at 43 percent (Leone 2003, p 72). This places the company just ahead of competitors such as Mars Inc. Influences or industry landscape As insinuated above, the confectionery industry is witnessing profound influence from other areas including health, and sustainable development. The sustainability trend will have a major role in confectionery industry with respect to packaging as well as sourcing ingredients. As an example, the use of green or recyclable material as well as cutting down packaging amounts can emerge as a selling point for the firm. In fact, the use of ingredients produced sustainably could lead to increased uptake of Hershey’s products in an age when clients are increasingly concerned over the need to safeguard environment. As well, health consciousness is a modern trend and confectionery makers are realizing the need to market themselves as healthy. In ...