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Take 5
Learning Beyond The Classroom
Group 1 Professor He
Stacy Alvarez Mktg3410 - 01
Shelby Pesenti
Shamal Asnani
Ryan Strouse
Yeyu Zhu
Sean Burns
Table of Contents
I. Background and Project Objective
II. Target Audience
III. Creative Brief
IV. Deliverables
V. Budget
I. Background and Project Objective
When you hear the brand name Hershey’s most people think of Hershey’s Kisses, KitKat,
and Reese’s Peanut Butter Cups. We want to change people’s thoughts to include Hershey’s
Take 5 candy bar. Our client Hershey’s has asked us to come up with a plan to get Take 5 back
on the market and selling as well as all of their other products.
In December 2004, Hershey’s introduced Take 5 to the market. It is called Take 5
because of its 5 ingredients; milk chocolate, caramel, pretzel, peanuts and peanut butter. Due to
all it different flavors, Hershey’s presumed that Take 5 was going to be a big hit with people
ranging in age from 20 years old to about 35 years old. Unfortunately, the reality soon became
that Take 5 was not the next best thing in their product line.
In May 2013, Forbes wrote an article on how “ill-named, mis-marketed and diminutive
masterpiece” that Take 5 is to the Hershey’s company. To Forbes, Take 5 could be the biggest
thing since Hershey’s has entered the market. It could be the “iPhone” of Hershey’s candy bar
product line. Instead Take 5 is hard to find and if it fell off the face of the earth tomorrow many
people would have never known it even existed. This is the problem we are faced with. Still, we
are taking on the challenge to change and make Take 5 a main contender with its Hershey
counterparts.
Due to the lack of successful marketing of Take 5, an IMC plan is necessary to make
Take 5 a relevant player in the candy bar market. Take 5 needs to be a consistently heard and
seen candy bar brand to make it once again relevant. If you never hear about it on television or
the radio, and you never saw it in store or on the internet, then it’s not that we have failed at
marketing Take 5, it’s that we never marketed it in the first place.
Our goal is to create a successful IMC plan, which will be attempted through creating a
CSR campaign with Take 5 as the star on the show. If consumers see that Take 5 is a candy bar
that doesn’t only give satisfaction to every sense on your palate, but gives you the satisfaction of
knowing that a piece of the proceeds go to your local school district, then why not try a candy
bar that you may have never known even existed?
As all CRS campaigns, ours will come to an end, but our main goal is to make Hershey’s
Take 5 a product you will not only remember, but crave.
II. Target Audience
“Primary research show that mothers determine the children’s early taste in candy, so by
being the first to reach this target and converting these mothers into layer consumers the
company is hoping they will introduce their children to Hershey’s candy.” With this being said
our main focus is wrapped around parents with children and adolescence K-12. Hershey’s Take 5
bar will bring the most benefits to these children, as our main focus is the outcome when you
purchase this candy bar. The cause that comes when purchasing a Take 5 bar is helping a local
school around the county of purchased on school activities. With all the budget cuts that are
occurring all across the world the most fulfilling and rewarding part in a child’s life is those after
school activities that schools offer.
As a parent you are in charge of your household including what your child eats and the
benefits that will come along with your purchased goods. Therefore, only parents can make the
right choice in their purchase of a Take 5 bar. The purchase of a Take 5 bar will benefit the local
school county from your purchased destination. The geographic of our target audience is
benefiting low-income schools who’s after school activities aren’t being funded.
These are enough people to fit our product of Take 5 because of the benefit and high
contribution they can bring into their children’s lives. Therefore, our demographic for our target
audience is any parent who has a child or adolescence from the grades K-12. Without the parents
purchase the local community school won’t be profited for those after school activities. It is very
important for the child to be able to be involved in after school activities. Not only for their
development of a healthy lifestyle, but to be able to learn what their interest are and to progress
self-esteem. Psychographic parents for our target audience are those who want to benefit their
child’s lives and impact their future. As parents they want the best for children during their
growth years and when purchasing a Take 5 bar you are making those positive measures in your
child’s life. The parents will be able to identify the difference when you purchase a take 5 and
allow their contribution to see growth to the expansion of extracurricular activates. The cause of
parents and their involvement in their purchase will “Help Take 5 build the next generation.”
Children will be able to have a successful and memorable future with the consideration of their
parents and their contribution of helping schools build our future.
III. Creative Brief
Objective
The campaign will convince parents of children age 14 and under that buying Take 5 will
help enhance their child’s educational experience all while enjoying a unique candy bar with a
sweet and salty taste. The advertisement of Take 5 will bring awareness to customers about the
actual product and also create a relationship between the candy bar and contributing to low-
income schools. This will give the customer a preference over other competitors because it will
be known when parents purchase a Take 5 chocolate bar in their local school district, a
percentage of the profit will be donated to the local schools in order to help improve education.
Support Statement
Support will be found in the different ads that Take 5 runs, and data that has been
collected. TV ads will be focused around low income school settings that are in need of funds
which can be provided by the purchase of Take 5 candy bars. Magazine ads will show the
benefits that purchasing Take 5 can have for school districts. There will also be social media
efforts via Twitter, Facebook and Instagram that reinforce the good that Hershey’s and Take 5
are doing by donating money to schools in need. Some data that supports this idea is, parents use
to rely on organic foods as a means to correlate their food purchases with being a responsible
parent, but due to the recent economic downturn many have stopped purchasing organic items.
Take 5 will then be able to take advantage of the fact that partnering with school activities
significantly increases the likelihood parents will buy a certain product for their child coupled
with pressure on parents to purchase a product is significantly increased when there is an
association to fundraising for schools.
Tone/Brand Character Statement
The tone of the ads should convey Take 5 as a provider. The ads should suggest that Take
5 understands the challenges the consumers are facing with struggling funding for their
children’s schools and education. They should suggest that buying Hershey’s Take 5 can take
some of the hardships away from their children and provide them with some of the necessities
they desperately need.
IV. Deliverables
Advertising
Hershey’s Take 5 has all the qualities to be a leading competitor as America’s favorite
chocolate bar, but it is lacking the awareness of more popular brands. During our campaign we
will be focusing on increasing Take 5’s brand awareness among young children age 14 and
under, as well as their parents, with a goal of associating the purchase of our chocolate bars to
donations being made towards schools. The placement of the majority of our advertisements will
be through national mediums such as, television, magazines and internet. However, the out of
home advertisements will be displayed exclusively on a billboard. Parents naturally want to
support education for their children, and therefore, if they see that Take 5 revenues will have a
contribution towards schools, which will make children very happy and parents will feel like
they are part of the solution to the issues in local schools funding.
Our company would pick two IMC elements to executive the plan, which are advertising and
public relations. For the advertising part, we are especially focusing on making the television
advertising, different from other ways of advertising, TV advertising is the most direct way,
which can let our customers hear what we want to tell them, see what we are going to perform,
and think what we want to consecrate to this society. Therefore, our sample of the television
commercial will be 30 seconds long; it consists of the following four scenes;
We can see that before people purchased the Take 5 chocolate bars, no communities or
companies would support the local primary schools for improving their education and
infrastructure, children were studying in the classroom with poor qualities and limited
technologies. After class, children had not actual playgrounds, basketball fields or football
pitches. Even though, they had found some place to play, they just disappointed with their
playgrounds all the time. And we Take 5 product of Hershey’s company noticed that, we are
recognizing that we should do something to help more and more local primary school, also give
our children a better childhood and education. So, we set up a lot of Take 5 retail stations in some
local stores, such as Wal-Mart, Safe-way, Lucky, which are around some local primary schools,
we decided to use some percentage of revenue as donation, sending to some local primary
schools, which is in order to attract more and more parents and children come to buy our product
and support the local primary schools, At the very end of the year, our Take 5 Company would
split the percentage of geographic revenue of the total donation, some of the donation may from
one county, and some of them may from one state, just depend on the location or area, we send
those donation to each of the local primary school so as to improve their software and hardware,
this amount of money can give our children a better environment to study and enjoy the school
life. As a result, we can tell in the last scene, we would totally see a different primary school,
with a very shining day;children have their own playground, and ball court. And the primary
school has rebuilt, even some of the primary schools has the observatory, which could let
children know about the Astronomy. “Learning beyond the classroom” become our company’s
main idea for the children and we would very appreciate that customers can buy our products as
well as help more children to have a better education.
Public Relations
Hershey has a representation in the past of having high standards on their corporation’s social
responsibility. In 2012, Hersey was recognized as one of America’s 50 most community-minded
companies by The Civic 50 survey. Hershey plans on continuing their vision of Bringing
Goodness to the World. The company has taken initiative of providing $1 billion over the next 5
years towards economic benefits for regions spread out across the globe. Hershey’s well-being
initiatives have sent out messages of how the company can be part of healthy lifestyle.
Our focus with Hershey’s public relations sector is to increase involvement with the company’s
well-being lifestyle by providing support to the enhancement of afterschool programs within the
states. The Afterschool Alliance has identified that over 14 million children are alone after
school, which is a vital time for children to have a safe place to go. We have planned a public
relationship marketing plan of involving Hershey’s Take 5 product with reaching out to the
children’s parents by donating a portion of Take 5 sale to 400 different schools spread out around
America. Our marketing agency will personally be sending out representatives to travel across
the states to talk during school assemblies of how Take 5 sales will be providing learning beyond
the classrooms. Our representatives will be focusing specifically on promoting afterschool
activities while building relationships with the schools. Thousands of dollars will be donated to
each of the 400 afterschool programs to give children a safe and healthy environment where they
can expand their learning through a variety of activities.
The goal of promoting Take 5 candy bars with donations to after school programs will
help bring awareness to parents of the product while influencing them to actually go out and by
the candy bar. By linking the Take 5 candy bar with after school programs, Hershey’s can
continue the company’s public relations strategy of establishing Hershey’s products as
contributing to a well-being lifestyle.
V. Budget
Since 2006, Hershey’s has increased their spending on advertising from $108 million, or
2% of their sales, to $580 million, or 8 % of their sales (adage). With the increase in advertising
spending, Hershey’s realized net sales of $3.34 billion in 2012, a six percent increase from the
same period a year earlier. The increase in their bottom line was directly attributed to their
increase in investing in their marketing. Although most of the increased spending went towards
their two major brands, Hershey’s and Reese’s, the money spent on the marketing of smaller
brands was cited as having direct beneficial results as well. In both 2011 and 2012, Hershey’s
spend approximately $21 million in advertising the candy bar PayDay, as compared to $10
million in 2010. During the same period, the brand recognized a four percent increase in their
sales. In 2012, Hershey also brought their brand Rolo back to television. The brand recognized
48% increase in their total sales within the same period. Undoubtedly, Hershey’s is a company
which has very tangible results derived from their advertising. The money they spend on
advertising their brands tends to increase the bottom line for the brand of the respective
advertisement with diminishing returns that are not realized all too sudden.
As of 2013, Take 5 is rated as an $11 million brand. Although this represents a 10%
increase within the last twelve months, it is hardly a fraction of Hershey’s total brand worth
(Forbes). What is more astonishing is the fact that this increase in brand name value occurred
with virtually zero advertising. Studies show that the brand tends to do well with Middle Income
homes. This further adds to our notion, that a CSR campaign focusing on the improvements of
our consumer’s schools would be most appropriate.
In order to set a budget for this campaign, we must allocate our budgets from two major
categories. First, we must set a standard for how much we are willing to spend on the CSR
portion of this campaign. To do this, we look at entities which have been rated as top reputable
companies in the field of CSR. These include companies such as BMW, Sony, Disney, and
Apple. When we look at their spending towards CSR efforts, we see that they have averaged
approximately $102.6 million. Since we are pursuing this advertising campaign on behalf of
Hershey, we then compare this number to their reported charitable donations. When combining
both their cash donations and the value of their product donations, we see that they have donated
$9.1 million and $8.9 million in 2011 and 2012 respectively. When we compare this to the recent
$550 million dollars Hershey has allocated to advertising, we see that there is clearly more than
enough funds generated by the company that could be spent towards this CSR initiative. With the
given data, we feel that Hershey’s can safely double their figure in charitable donations to
approximately $20 million in total, with $10 million being allocated to school donations for our
Take 5 campaign.
The second portion of the budget we must acknowledge is how much more will be spent
on advertising. Hershey’s history shows that there is a clear correlation between the amount of
money they spend on advertising a brand, and the amount of revenues in which that respective
brand soon generates. It is important to recognize that customers are more likely to pay a slight
premium on a product that they see is linked to charity. Thus, it is very possible that a marginal
increase in the price of the Take 5 product may occur with this campaign. Since the possibility of
a slight price increase may occur as a result of this campaign, we propose that Hershey’s will be
able to safely increase their total advertising spending from 8% of sales, to 10.5-11% of total
sales, with the extra 2.5-3% distributed towards this product campaign. Hershey’s is predicted to
increase their revenues to approximately $7 billion in the upcomingyear, and thus, this would
suggest that the company should spend $20 million on Take 5’s new direction in advertising.
Works Cited
Hershey's score card.(n.d.). Hershey's the company. Retrieved February 27, 2014, from
http://www.thehersheycompany.com/assets/pdfs/hersheycompany/scorecard2012.pdf
Hames, David. Negotiation: Closing Deals, Settling Disputes, and Making Team Decisions.
Thousand Oaks, CA: SAGE Publications, 2012. Print.
"Hershey's Corporate Social Responsibility Scorecard."Thehersheycompany.Hershey's, 2012.
Web.
Kim, Peter H. "Power Dynamics in Negotiation." Jstor. Academy of Management, Oct. 2005.
Web.
Rao, S. L. "Negotiation in Business: An Overview." Jstor. Economic and Political Weekly, 28
Nov. 1992. Web.
Steiner, Christopher. "The Most Undervalued Brand The World." Forbes, 20 May 2013. Web.
"We Need After School Programs." American Leaders Agree, 2007. Web.
Elfenbein, Daniel W. "A Greater Price for a Greater Good? Evidence That Consumers Pay More
for Charity-Linked Products." Washington University in St. Louis, Oct. 2007. Web.

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Take 5 CRS campaign

  • 1. Take 5 Learning Beyond The Classroom Group 1 Professor He Stacy Alvarez Mktg3410 - 01 Shelby Pesenti Shamal Asnani Ryan Strouse Yeyu Zhu Sean Burns
  • 2. Table of Contents I. Background and Project Objective II. Target Audience III. Creative Brief IV. Deliverables V. Budget
  • 3. I. Background and Project Objective When you hear the brand name Hershey’s most people think of Hershey’s Kisses, KitKat, and Reese’s Peanut Butter Cups. We want to change people’s thoughts to include Hershey’s Take 5 candy bar. Our client Hershey’s has asked us to come up with a plan to get Take 5 back on the market and selling as well as all of their other products. In December 2004, Hershey’s introduced Take 5 to the market. It is called Take 5 because of its 5 ingredients; milk chocolate, caramel, pretzel, peanuts and peanut butter. Due to all it different flavors, Hershey’s presumed that Take 5 was going to be a big hit with people ranging in age from 20 years old to about 35 years old. Unfortunately, the reality soon became that Take 5 was not the next best thing in their product line. In May 2013, Forbes wrote an article on how “ill-named, mis-marketed and diminutive masterpiece” that Take 5 is to the Hershey’s company. To Forbes, Take 5 could be the biggest thing since Hershey’s has entered the market. It could be the “iPhone” of Hershey’s candy bar product line. Instead Take 5 is hard to find and if it fell off the face of the earth tomorrow many people would have never known it even existed. This is the problem we are faced with. Still, we are taking on the challenge to change and make Take 5 a main contender with its Hershey counterparts. Due to the lack of successful marketing of Take 5, an IMC plan is necessary to make Take 5 a relevant player in the candy bar market. Take 5 needs to be a consistently heard and seen candy bar brand to make it once again relevant. If you never hear about it on television or the radio, and you never saw it in store or on the internet, then it’s not that we have failed at marketing Take 5, it’s that we never marketed it in the first place.
  • 4. Our goal is to create a successful IMC plan, which will be attempted through creating a CSR campaign with Take 5 as the star on the show. If consumers see that Take 5 is a candy bar that doesn’t only give satisfaction to every sense on your palate, but gives you the satisfaction of knowing that a piece of the proceeds go to your local school district, then why not try a candy bar that you may have never known even existed? As all CRS campaigns, ours will come to an end, but our main goal is to make Hershey’s Take 5 a product you will not only remember, but crave. II. Target Audience “Primary research show that mothers determine the children’s early taste in candy, so by being the first to reach this target and converting these mothers into layer consumers the company is hoping they will introduce their children to Hershey’s candy.” With this being said our main focus is wrapped around parents with children and adolescence K-12. Hershey’s Take 5 bar will bring the most benefits to these children, as our main focus is the outcome when you purchase this candy bar. The cause that comes when purchasing a Take 5 bar is helping a local school around the county of purchased on school activities. With all the budget cuts that are occurring all across the world the most fulfilling and rewarding part in a child’s life is those after school activities that schools offer. As a parent you are in charge of your household including what your child eats and the benefits that will come along with your purchased goods. Therefore, only parents can make the right choice in their purchase of a Take 5 bar. The purchase of a Take 5 bar will benefit the local school county from your purchased destination. The geographic of our target audience is benefiting low-income schools who’s after school activities aren’t being funded.
  • 5. These are enough people to fit our product of Take 5 because of the benefit and high contribution they can bring into their children’s lives. Therefore, our demographic for our target audience is any parent who has a child or adolescence from the grades K-12. Without the parents purchase the local community school won’t be profited for those after school activities. It is very important for the child to be able to be involved in after school activities. Not only for their development of a healthy lifestyle, but to be able to learn what their interest are and to progress self-esteem. Psychographic parents for our target audience are those who want to benefit their child’s lives and impact their future. As parents they want the best for children during their growth years and when purchasing a Take 5 bar you are making those positive measures in your child’s life. The parents will be able to identify the difference when you purchase a take 5 and allow their contribution to see growth to the expansion of extracurricular activates. The cause of parents and their involvement in their purchase will “Help Take 5 build the next generation.” Children will be able to have a successful and memorable future with the consideration of their parents and their contribution of helping schools build our future. III. Creative Brief Objective The campaign will convince parents of children age 14 and under that buying Take 5 will help enhance their child’s educational experience all while enjoying a unique candy bar with a sweet and salty taste. The advertisement of Take 5 will bring awareness to customers about the actual product and also create a relationship between the candy bar and contributing to low- income schools. This will give the customer a preference over other competitors because it will be known when parents purchase a Take 5 chocolate bar in their local school district, a
  • 6. percentage of the profit will be donated to the local schools in order to help improve education. Support Statement Support will be found in the different ads that Take 5 runs, and data that has been collected. TV ads will be focused around low income school settings that are in need of funds which can be provided by the purchase of Take 5 candy bars. Magazine ads will show the benefits that purchasing Take 5 can have for school districts. There will also be social media efforts via Twitter, Facebook and Instagram that reinforce the good that Hershey’s and Take 5 are doing by donating money to schools in need. Some data that supports this idea is, parents use to rely on organic foods as a means to correlate their food purchases with being a responsible parent, but due to the recent economic downturn many have stopped purchasing organic items. Take 5 will then be able to take advantage of the fact that partnering with school activities significantly increases the likelihood parents will buy a certain product for their child coupled with pressure on parents to purchase a product is significantly increased when there is an association to fundraising for schools. Tone/Brand Character Statement The tone of the ads should convey Take 5 as a provider. The ads should suggest that Take 5 understands the challenges the consumers are facing with struggling funding for their children’s schools and education. They should suggest that buying Hershey’s Take 5 can take some of the hardships away from their children and provide them with some of the necessities they desperately need. IV. Deliverables Advertising Hershey’s Take 5 has all the qualities to be a leading competitor as America’s favorite
  • 7. chocolate bar, but it is lacking the awareness of more popular brands. During our campaign we will be focusing on increasing Take 5’s brand awareness among young children age 14 and under, as well as their parents, with a goal of associating the purchase of our chocolate bars to donations being made towards schools. The placement of the majority of our advertisements will be through national mediums such as, television, magazines and internet. However, the out of home advertisements will be displayed exclusively on a billboard. Parents naturally want to support education for their children, and therefore, if they see that Take 5 revenues will have a contribution towards schools, which will make children very happy and parents will feel like they are part of the solution to the issues in local schools funding. Our company would pick two IMC elements to executive the plan, which are advertising and public relations. For the advertising part, we are especially focusing on making the television advertising, different from other ways of advertising, TV advertising is the most direct way, which can let our customers hear what we want to tell them, see what we are going to perform, and think what we want to consecrate to this society. Therefore, our sample of the television commercial will be 30 seconds long; it consists of the following four scenes; We can see that before people purchased the Take 5 chocolate bars, no communities or companies would support the local primary schools for improving their education and infrastructure, children were studying in the classroom with poor qualities and limited technologies. After class, children had not actual playgrounds, basketball fields or football pitches. Even though, they had found some place to play, they just disappointed with their playgrounds all the time. And we Take 5 product of Hershey’s company noticed that, we are recognizing that we should do something to help more and more local primary school, also give our children a better childhood and education. So, we set up a lot of Take 5 retail stations in some
  • 8. local stores, such as Wal-Mart, Safe-way, Lucky, which are around some local primary schools, we decided to use some percentage of revenue as donation, sending to some local primary schools, which is in order to attract more and more parents and children come to buy our product and support the local primary schools, At the very end of the year, our Take 5 Company would split the percentage of geographic revenue of the total donation, some of the donation may from one county, and some of them may from one state, just depend on the location or area, we send those donation to each of the local primary school so as to improve their software and hardware, this amount of money can give our children a better environment to study and enjoy the school life. As a result, we can tell in the last scene, we would totally see a different primary school, with a very shining day;children have their own playground, and ball court. And the primary school has rebuilt, even some of the primary schools has the observatory, which could let children know about the Astronomy. “Learning beyond the classroom” become our company’s main idea for the children and we would very appreciate that customers can buy our products as well as help more children to have a better education. Public Relations Hershey has a representation in the past of having high standards on their corporation’s social responsibility. In 2012, Hersey was recognized as one of America’s 50 most community-minded companies by The Civic 50 survey. Hershey plans on continuing their vision of Bringing Goodness to the World. The company has taken initiative of providing $1 billion over the next 5 years towards economic benefits for regions spread out across the globe. Hershey’s well-being initiatives have sent out messages of how the company can be part of healthy lifestyle. Our focus with Hershey’s public relations sector is to increase involvement with the company’s well-being lifestyle by providing support to the enhancement of afterschool programs within the
  • 9. states. The Afterschool Alliance has identified that over 14 million children are alone after school, which is a vital time for children to have a safe place to go. We have planned a public relationship marketing plan of involving Hershey’s Take 5 product with reaching out to the children’s parents by donating a portion of Take 5 sale to 400 different schools spread out around America. Our marketing agency will personally be sending out representatives to travel across the states to talk during school assemblies of how Take 5 sales will be providing learning beyond the classrooms. Our representatives will be focusing specifically on promoting afterschool activities while building relationships with the schools. Thousands of dollars will be donated to each of the 400 afterschool programs to give children a safe and healthy environment where they can expand their learning through a variety of activities. The goal of promoting Take 5 candy bars with donations to after school programs will help bring awareness to parents of the product while influencing them to actually go out and by the candy bar. By linking the Take 5 candy bar with after school programs, Hershey’s can continue the company’s public relations strategy of establishing Hershey’s products as contributing to a well-being lifestyle. V. Budget Since 2006, Hershey’s has increased their spending on advertising from $108 million, or 2% of their sales, to $580 million, or 8 % of their sales (adage). With the increase in advertising spending, Hershey’s realized net sales of $3.34 billion in 2012, a six percent increase from the same period a year earlier. The increase in their bottom line was directly attributed to their increase in investing in their marketing. Although most of the increased spending went towards their two major brands, Hershey’s and Reese’s, the money spent on the marketing of smaller brands was cited as having direct beneficial results as well. In both 2011 and 2012, Hershey’s
  • 10. spend approximately $21 million in advertising the candy bar PayDay, as compared to $10 million in 2010. During the same period, the brand recognized a four percent increase in their sales. In 2012, Hershey also brought their brand Rolo back to television. The brand recognized 48% increase in their total sales within the same period. Undoubtedly, Hershey’s is a company which has very tangible results derived from their advertising. The money they spend on advertising their brands tends to increase the bottom line for the brand of the respective advertisement with diminishing returns that are not realized all too sudden. As of 2013, Take 5 is rated as an $11 million brand. Although this represents a 10% increase within the last twelve months, it is hardly a fraction of Hershey’s total brand worth (Forbes). What is more astonishing is the fact that this increase in brand name value occurred with virtually zero advertising. Studies show that the brand tends to do well with Middle Income homes. This further adds to our notion, that a CSR campaign focusing on the improvements of our consumer’s schools would be most appropriate. In order to set a budget for this campaign, we must allocate our budgets from two major categories. First, we must set a standard for how much we are willing to spend on the CSR portion of this campaign. To do this, we look at entities which have been rated as top reputable companies in the field of CSR. These include companies such as BMW, Sony, Disney, and Apple. When we look at their spending towards CSR efforts, we see that they have averaged approximately $102.6 million. Since we are pursuing this advertising campaign on behalf of Hershey, we then compare this number to their reported charitable donations. When combining both their cash donations and the value of their product donations, we see that they have donated $9.1 million and $8.9 million in 2011 and 2012 respectively. When we compare this to the recent $550 million dollars Hershey has allocated to advertising, we see that there is clearly more than
  • 11. enough funds generated by the company that could be spent towards this CSR initiative. With the given data, we feel that Hershey’s can safely double their figure in charitable donations to approximately $20 million in total, with $10 million being allocated to school donations for our Take 5 campaign. The second portion of the budget we must acknowledge is how much more will be spent on advertising. Hershey’s history shows that there is a clear correlation between the amount of money they spend on advertising a brand, and the amount of revenues in which that respective brand soon generates. It is important to recognize that customers are more likely to pay a slight premium on a product that they see is linked to charity. Thus, it is very possible that a marginal increase in the price of the Take 5 product may occur with this campaign. Since the possibility of a slight price increase may occur as a result of this campaign, we propose that Hershey’s will be able to safely increase their total advertising spending from 8% of sales, to 10.5-11% of total sales, with the extra 2.5-3% distributed towards this product campaign. Hershey’s is predicted to increase their revenues to approximately $7 billion in the upcomingyear, and thus, this would suggest that the company should spend $20 million on Take 5’s new direction in advertising.
  • 12. Works Cited Hershey's score card.(n.d.). Hershey's the company. Retrieved February 27, 2014, from http://www.thehersheycompany.com/assets/pdfs/hersheycompany/scorecard2012.pdf Hames, David. Negotiation: Closing Deals, Settling Disputes, and Making Team Decisions. Thousand Oaks, CA: SAGE Publications, 2012. Print. "Hershey's Corporate Social Responsibility Scorecard."Thehersheycompany.Hershey's, 2012. Web. Kim, Peter H. "Power Dynamics in Negotiation." Jstor. Academy of Management, Oct. 2005. Web. Rao, S. L. "Negotiation in Business: An Overview." Jstor. Economic and Political Weekly, 28 Nov. 1992. Web. Steiner, Christopher. "The Most Undervalued Brand The World." Forbes, 20 May 2013. Web. "We Need After School Programs." American Leaders Agree, 2007. Web. Elfenbein, Daniel W. "A Greater Price for a Greater Good? Evidence That Consumers Pay More for Charity-Linked Products." Washington University in St. Louis, Oct. 2007. Web.