Market segmentation and strategies that could be used by the hershey company
Marketing Research 1Running Head: Marketing Market Segmentation and Strategies That Could Be Used By the Hershey Company Victoria Rock AIU Online
Marketing Research 2 IntroductionThe marketing strategy is taken in the basis of internal and external environment of anorganization. For the success of a company as well as its products and services, it is necessaryto make some important and effective marketing decisions (Marketing Segmentation,Targeting, and Positioning, 2011). This paper will examine market segmentation and strategiesthat could be used by the Hershey Company for their product, chocolate bar.
Marketing Research 3 Marketing Strategy for Hershey and the Chocolate BarSegmentation According to our book, Marketing, segmentation is the identification of subjects of buyerswithin a market who share similar needs buyer behavior (Marketing Segmentation, Targeting,and Positioning, 2011). Because of the world being made up of billions of buyers, with theirown set of needs and behavior, segmentations aim is to match groups of purchasers with thesame set of needs and buyer behavior. (Marketing Segmentation, Targeting, and Positioning,2011) Segmentation is a form of critical evaluation and not a prescribed process or systembecause no two markets are the same. There are however a number of underlining criteria that can help with segmentation: Is the segment viable and can we make a profit from it? Is it accessible and how easy is it to get into the segment? Is it measurable and can we obtain realistic data to consider its potential? (Marketing Segmentation, Targeting, and Positioning, 2011) With adults accounting for the largest percentage of chocolate bar sales and with theincreased interest in healthier foods, Hershey’s segmentation should cover: Promoting the health benefits of their dark chocolate products. Help in changing the mind of customers as to chocolate being an unhealthy snack. Increase potential sales through promotional programs throughout the year. Repackage so that the new look appeals to the consumers since it will be tagged as “low-calorie.”Target Market Consumers constantly change their preference for products, so it’s no big surprise thatconsumers’ wants for chocolate products has changed as well. They want a greater variety,which enables the industry to expand on their product line. This provides an opportunity forgreater sales of the new product. With the health trend over the past decade, studies haveshown that dark chocolate provides health benefits such as cardiovascular benefits as well asreducing an adult’s chance of cancer. (Marano, 2011) Non-traditional holidays as well astraditional holidays offer an opportunity to market specialized products tailored for a specificholiday while providing for the opportunity for specialized gift products to increase sales. (Food:Company Spotlight: Hershey, 2010)
Marketing Research 4 Positioning, Differentiation and Proposition Positioning is defined as the image of a particular product or service as seen by theconsumers that are created by the marketer through promotional activities. An effectivepositioning builds up an image of the company in the mind of the consumers. (MarketingSegmentation, Targeting, and Positioning, 2011) The positioning and differentiation in theproduct will create a value proposition for the business and helps to create a competitiveadvantage that reduces competition. (Marketing Segmentation, Targeting, and Positioning,2011) In the chocolate bar industry there are several companies operating. Some have a largemarket share while others have a smaller market share. The Hershey Company’s maincompetitors are Mars and Cadbury. The positing of these companies is quite high in the mindsof the consumer due to the quality of their products. They have been in the industry for manyyears and have the leading market share. (The Hershey Company, 2012) In order to face competition, Hershey has to bring some differentiation in its product qualityto create a better positioning in the minds of the consumers. By providing different flavors totheir candy bar could cause an increase in the effectiveness of their product in the mind of theconsumer. Different promotional strategies could be used such as: print advertising, salespromotion, public relation, personal selling, etc., could create a strong positioning (The HersheyCompany, 2012). Proposition could be explained as the benefits that are delivered by the company to itscustomers. (Marketing Segmentation, Targeting, and Positioning, 2011) The value propositionof the chocolate bar is the increase in customer satisfaction by being produced in differenttastes and flavors that accommodate all customers. High quality and different flavors wouldprovide more benefits to the customers that are not provided by the competition. A goodpositioning statement would be very effective in increasing the customer base.
Marketing Research 5 Conclusion It can be concluded that a good marketing strategy is an important and crucial tool that candetermine the success or failure of a product or service for a company. If Hershey uses theright marketing strategies they can take the market on health dark chocolate as well as otherhealthy snacks.
Marketing Research 6 ReferenceFood: Company Spotlight: Hershey. (2010, March). Marketwatch: Global Round-Up 9, no. 3, pp. 89-95.http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?sid=345aef1e-10ea-4e64-9460-27afc745a81d%40sessionmgr12&vid=10&hid=101Marano, H. (2011). The Scoop on Chocolate: Is chocolate really healthy? Psychology Today Vol. 44 Issue 2, p44-45. http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?nobk=y&sid=9b41 2f6c-be5f-4f73-87e4-5a02a9305fbf@sessionmgr110&vid=12&hid=101(2011). Marketing Segmentation, Targeting, and Positioning. In H. S. Kerin R., Marketing (pp. 220-243). New York: McGraw-Hill/Irwin.(2012). The Hershey Company. Hoovers, Inc.http://subscriber.hoovers.com.proxy.cecybrary.com/H/company360/overview.html?companyId=75995449