The Hershey Company was founded in 1894 by Milton Hershey in Pennsylvania. It is now a global confectionery company known for products like Hershey's chocolate bars and Hershey's Kisses. The company has faced competition from other candy makers like Mars, Nestle, and Mondelez International. However, it has maintained its brand recognition through widespread distribution in stores, TV advertising, and its Hersheypark theme park. The document recommends strategies like developing a protein snack line and biodegradable packaging to help the company adapt to future trends in the candy industry.

1. The Hershey
Company
ConfectionaryIndustry
Research Done by: Daniel, Ivan, Jacie, Jake, Maria, Mikayla, Nick

2. Introduction
• Founded the company in 1894
• Derry Township, PA
• 1900 first Hershey Bar
• 1905 first Hershey Kiss
• 1918 donates all wealth to the Hershey School
• 1941 Billion bars for the troops
Hershey’s continues to bring happiness till this very day!
Milton Hershey

3. Economic

4. Types:
Brand
Industry
Form
Generic
Brand Competition
 Similar products
 Same customers
 Same products
class
Industry Competition
Competition

5. Competition
Brand, Industry, Form, Generic
Form Competition
 The companies manufacturing products that supply the same
service
Generic Competition
 All companies that compete for the same consumer
dollars

6. Technology & Political
Legal
Technology
“The most technologically advanced chocolate making facility”
 Spent 300m on new factory finished in 2012
 Interactive Candy bar
 Internet & Hershey park app
Political Legal
 Child labor in Ghana (Harkin-Engel Protocol)
 FDA

7. Social-cultural
Trends
 Customers want healthy products
 New flavors
 Socially responsible companies
 More products

8. S.W.O.T. Analysis
Strengths
Strong customer base and company image
International brand
Diversified products
Product availability is extremely convenient
Extremely fast production line able to meet there high
demands
Weaknesses
Extremely high advertising expenses
Difficult to control the size of the company and its
geographic market
Not environmental friendly packaging
Hershey’s global market share is low, 10%
The unhealthy products limit consumer intake and
choice
Opportunities
Richer chocolate/new flavors
Healthy benefits/ Protein bars
Environmental friendly packaging
Establish Hershey’s in China and India
Efficiency improvements for distribution
Threats
Constant fluctuation of commodities (milk, sugar, cocoa)
Consumers want healthy product
Nestle, Mars, Cadbury
Natural disasters can destroy ingredients
High Costs to improve technology

9. Mission statement
"Continuing Milton Hershey's legacy of commitment to consumers,
community and children, we provide high-quality HERSHEY's
products while conducting our business in a socially responsible
and environmentally sustainable manner,"
Goods, and snacks.
Share goodness &
spread happiness
through chocolate
sweets, goods,
and other snacks.

10. Hershey’s Top 3 Direct
competitors
Mars Inc.
Worlds third largest company in the U.S
Have more than 80 brands made
Low prices and have a variety of items
Nestle
Swiss transnational food and beverage company
Economical products
Reasonable price
Mondelēz International Inc
American multinational confectionery food and beverage
company
Wide sub labels products

11. Indirect Competitors
Frito-Lay
Snacks and beverages Partner with PepsiCo
Chips made with 100% real cheese and are fat free
Wide variety
Brands with sub labels
General Mills
Manufacturer and marketer of branded consumer foods sold
through retail stores.
Wide range of products
Sub labels

12. Target Market
Hershey’s Target Market
Demographics Everyone (however wont market directly to kids)
Mom’s & Dad’s (for their children)
14+, males & females
Middle-class
Couples
Young adults
Geography International Company
Wants & Values Spending time with family, indulgence, happiness,
authenticity, simplicity, love, fun, quality
Needs &
Motivations
Making memories, celebration, surprising their kids, taste
Where do they
shop?
Chain Grocery stores, mass merchandisers, chain drug
stores, vending machines, wholesale clubs, convenience
stores, dollar stores, concessions stands, and
department stores
Frequency/Quantity Varied (Everyday and Special Occasions)
Price Sensitivity Somewhat (Middle Class)

13. Product and Positioning
High quality chocolate at an affordable price
Helps satisfy customer’s personal pleasure
Position their products to international markets
Focus on five core brands: Hershey’s, Hershey’s kisses,
Reese’s, Jolly Rancher, and Icebreaker
Aiming to satisfy customers who want a healthy snacking
alternative- sugar free and gluten free options
Maturity stage of the product life cycle

14. Pricing
Fair prices available at convenient locations
Candy bars cost around $2
Increased prices on healthy snack products
Select products are discounted monthly
Discounted prices during Halloween, Christmas, and
Valentines day

15. Hershey’s Distribution

16. Intensive Distribution
Hershey is a company that is known globally and can be
found in most stores such as.
Convenience stores
Super markets
Gas stations
Vending machines

17. Exclusive Distribution
Hershey only has 3 specialty stores which are in the U.S.
and one of the locations are in “Chicago”.
They sell items that cannot be found in any regular store
such as Wal-Mart.

18. Hershey Co.
(B2B) Business to
Business
They make the products
and then send it to
Wal-Mart and then Wal-
Mart sells it to the
customers
(B2C) Business to
Consumer
They make the product
then send it to their own
chain store then sell it to
the customer.
They also sell online
items on their site
customers buy items on
the companies website.

20. Promotion

21. Hershey
Park
Roller Coaster
Rides
Water Park

22. Recommendations
Creation of new protein line
Expansion of Hershey’s Chocolate World
Partnership with Keurig
Biodegradable packaging

23. Recommendations
Guerrilla marketing
Jewelry line
More scholarships
Commercial competition

24. Work Cited
http://www.fritolay.com/index.htm
http://www.pepsico.com/Brands/BrandExplorer
http://www.mars.com/global/about.aspx
http://www.forbes.com/companies/frito-lay/
http://www.nestle.com/brands
https://www.generalmills.com/en/Brands/Overview
https://www.generalmills.com/en/Company/Overview
http://www.mondelezinternational.com/
http://www.forbes.com/companies/mondelez-international/
http://www.forbes.com/companies/mars/
http://www.forbes.com/companies/nestle/
http://www.forbes.com/companies/general-mills/

25. https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1366&bih=599&q=Mars+logo&oq=Mars+log
o&gs_l=img.3..0l8.111.2374.0.3145.9.6.0.1.1.0.328.1006.0j3j1j1.5.0....0...1ac.1.64.img..3.6.1016.-
knvmvGOF5w#imgrc=ZY02wnlRCk8hUM%3A
https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1366&bih=599&q=Mars+logo&oq=Mars+log
o&gs_l=img.3..0l8.111.2374.0.3145.9.6.0.1.1.0.328.1006.0j3j1j1.5.0....0...1ac.1.64.img..3.6.1016.-
knvmvGOF5w#hl=en&tbm=isch&q=Nestle&imgrc=jeVDjqR8QvYp4M%3
https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1366&bih=599&q=Mars+logo&oq=Mars+log
o&gs_l=img.3..0l8.111.2374.0.3145.9.6.0.1.1.0.328.1006.0j3j1j1.5.0....0...1ac.1.64.img..3.6.1016.-
knvmvGOF5w#hl=en&tbm=isch&q=mondelez+logo
https://www.google.com/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1366&bih=599&q=Mars+logo&oq=Mars+log
o&gs_l=img.3..0l8.111.2374.0.3145.9.6.0.1.1.0.328.1006.0j3j1j1.5.0....0...1ac.1.64.img..3.6.1016.-
knvmvGOF5w#hl=en&tbm=isch&q=general+mills+&imgrc=3gH80k7rKblEgM%3A
"Chocolate and Nutrition Facts and Information." The Hershey Company. N.p., n.d. Web. 16 Nov. 2015.
"Hershey's Convenience." HERSHEY'S Convenience. N.p., n.d. Web. 16 Nov. 2015.
Work cited