DETAILED STUDYOF HERSHEY’S AND COMPARITIVE ANALYSIS WITH COMPETITORS

PROJECT REPORT
SUBMITTED TO PANJAB UNIVERSITY,CHANDIGARH  IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION
lm(2009-2012)

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DECLARATION
Hereby declare that the project report entitled ―DETAILED STUDY OF HERSHEY’S AND COMPARITIVE ANALYSIS WITH COMPETITORS‖ submitted for the degree of Bachelor of Business Administration, is my original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.

Place: Chandigarh

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CERTIFICATE

This is to certify that Raj has completed her project report on the topic of “DETAILED STUDY OF HERSHEY’S AND COMPARATIVE ANALYSIS WITH COMPETITORS” under the supervision of Mr.rajesh faculty member of Post Graduate Government College Sector-11.

To best of my knowledge the report is original and has not been copied or submitted anywhere else. It is an independent work done by her.

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ACKNOWLEDGEMENT

Detailed analysis is an excellent tool for learning and exploration. No classroom routine can substitute which is possible while working in real situations. Application of theoretical knowledge to practical situations is the bonanzas of this study.Without a proper combination of inspection and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needy services they render during the different phases of the lives. I too would like to do it as I really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project.

I would like to thank my professor Mr. rajeshwho was always there to help and guide me when I needed help. Her perceptive criticism kept me working to make this project more full proof. I am thankful to her for encouraging and valuable support. Working under her was an extremely knowledgeable and enriching experience for me. I am very thankful to her for all the value addition and enhancement done to me. No words can adequately express my overriding debt of gratitude to my parents whose support helps me in all the way. Above all I shall thank my friends who
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5 .constantly encouraged and blessed me so as to enable me to do this work successfully.

TABLE OF CONTENTS Chapter Number I II III Chapter name Introduction Company Overview History & Detailed background of Hershey’s Hershey’s Products Partnerships 52-67 Page Number 1-16 17 18-30 IV V VI 31-46 47-51 Market Competition &Comparision Financial Analysis Suggestions & Recommendations Conclusion Bibliography Annexure 68-76 77-79 VII VIII IX X XI 80-81 82 83-87 6 .

Introduction 7 .

is a worldwide 8 . Many chocolate manufacturers have created products from chocolate bars to fudge. Europe accounts for 45% of the world's chocolate revenue.S. known for their Hershey bar. Nestlé. corporations. This industry is prevalent on five out of seven continents. Both The Hershey Company and Mars have become the largest manufacturers in the world. Hershey's kisses and Reese's Peanut Butter Cups. However. Big Chocolate. as it is also called. The Hershey Company. Mars. These U. companies such as Mars and Hershey’s alone generate $13 billion a year in chocolate sales and account for two thirds of U. hoping to attract more consumers with each creation. one of the largest privately owned U. Incorporated. Kraft Foods and Lindt.S. manufacturers. Other significant players include Cadbury.S. is the largest chocolate manufacturer in North America.CHOCOLATE INDUSTRY The chocolate industry is a steadily growing. is essentially an oligopoly between major international chocolate companies in Europe and the U.S. $50 billion-a-year worldwide business centered on the sale and consumption of chocolate.

now own Milka and Suchard. In February 2010. the fair-trade brand Green & Black's also belong to the group. Twix. Kraft also acquired British-based Cadbury plc. the world's largest confectionery manufacturer. Nestlé acquired Rowntree's in 1988 and now market chocolates under their own brand. as well as other confectionery such as Milky Way. M&M's. Mars is known for Mars Bar. Skittles and Snickers. Fry's. Food conglomerates Nestlé SA and Kraft Foods both have chocolate brands. Trebor Basset.manufacturer of confectionery and other food products with US$21 billion in annual sales in 2006. including Smarties and Kit Kat. 9 . Cadbury is well known for its Dairy Milk range and Creme Egg. Kraft Foods through its 1990 acquisition of Jacobs Suchard.

which is harvested by hand. o r cocoa beans. they are placed in la rg e heaps or piles. After drying. home of the world’s largest chocolate factory. Pennsylvania. and takes about a week. and the rich cocoa flavor develops.Making Chocolate Welcome to Hershey. After the beans are removed from the pods. Cacao trees grow melon-like fruit. This is called fermentation. the beans are ready for transpo r t to the chocolate factory. This is where HERSHEY makes its famous chocolate. Born i n the Jungle All around the world. b u t i t really starts in the tropics. 10 . from Brazil to Indonesia to the I v o r y Coast and Ghana. the beans darken. the shells harden. deep in the tropical jungle there grows a very special tree…the cacao tree. During this time. Inside each pod are about 20-40 seeds.

by the way. After arriving a t the factory. suga r and milk. Hershey uses fresh. dark stream of pure roasters at very high temperatures.called the ―nib.Liquid Chocolate Railroad cars carry the cocoa beans from the docks to the chocolate factory where they are cleaned and stored. revolving the nibs into liquid called chocolate liquor . Now it is ready for the resto f the ingredients! Mixingi t up The main ingredients in chocolate are the chocolate liquor. roasted cocoa beans and distinct flavor.a smooth. the separates the shell from the insideo f the bean . The nibs now are ready for milling. contains no alcohol. It’s been that way since Milton Hershey developed the recipe in 1900. chocolate flavor which. Milling is a grinding process which turns Cocoa beans are roasted in large. whole milk to make its milk chocolate. blended to give them that special Hershey taste. Cocoa beans from different countries each have a A special hulling machine then takes the dr y . cocoa butter.‖ This is the beans are stored by country o f origin until the y are par t o f the bean actually used to make chocolate. Tanker trucks bring the fresh milk to the factory everyday where i t is 11 .

Now the chocolate paste has the smooth. taffy-like material. pasteurized. This new mixture is dried into a coarse. The crumb becomes a thick liquid called chocolate paste. Hershey adds cocoa b u t t e r to the crumb which brings o u t the rich taste and creamy texture o f the chocolate. making i t smoother. This process can take anywhere from 24 to 72 hours to com plete. familiar look o f milk chocolate and it’s ready to be made into our favorite 12 . The whole milk-suga r mixture is slowly dried until i t turns into a thick. lar ge granite rollers smooth ou t the g r i t typarticles from the crumb. The paste is poured into hu ge vats called conches. brown powder called chocolate crumb.tested. Perfecting the chocolate The chocolate crumb powder is used to make milk chocolate. the chocolate liquor is combined with the milk and sugar. The crumb travels through special steel rollers which grind and refine the mixture. and then mixed with sugar. A t the heart o f the chocolate factor is the central blending operation Where. Once inside the conches.

vibrating ride to remove air bubbles and allow the chocolate to settle evenly. The molding machines can fill more than 1.Chocolate Bars and HERSHEY ’S KISSES Chocolates Most chocolate bars are made by pouring the liquid chocolate paste into moulds. delicious. While a lot of HERSHEYs chocolate products are poured into moulds. Now it’s ready to wrap… fresh. HERSHEYS chocolate.000 moulds per minute with delicious HERSHEYs chocolate. Finally. they wind their way through a long cooling tunnel where the liquid chocolate is gently chilled into a solid candy bar. Special machines drop a precise amount o f chocolate onto a moving steel belt and then quickly cool it to form the famous HERSHEYS KISS shape. Fresh from the Factory 13 . HERSHEYs KISSES Chocolates are made a little differently. The filled moulds then take a bumpy. Hershey makes more than 80 million Kiss-shaped products every day a t its chocolate factories in Hershey and California.

So long 14 . Hershey produces a l o t o f other famous products like Reese 's peanut b u t t e r cups. Although the name Hershey means ―chocolate‖ to most people. and Jolly Rancher. Mounds and Almond Joy. Comevisit usi f you can here in Chocolate Town USA. Thanks for visiting the world’s largest chocolate factory. A sophisticated. Payday. York peppermint patties. twizzlers.As Americas leading chocolate manufacturer. computerized distribution system makes sure that fresh products arrive at retail outlets across the country. Hershey produces more than a billion pounds of chocolate products each year. They are all pa r t o f the growing family o f chocolate and candy products produced and distributed b y Hershey.

ratio analysis. peer comparison.g. industry/regulatory factors  Industry growth forecast: historical growth.. company vs. visions. industry  Market performance: prices. business segments  Financials: financial statements. 15 . analyst estimates/forecasts  Competitive analysis: SWOT analysis. growth drivers (e. goals  History: significant developments. changes in demographic profiles and growth of complementary products)  To measure what candy brands the target market eats most frequently   To identify the target market’s favorite brand(s) To assess the target market’s attitudes/beliefs about candy in general and chocolate candy in particular. charts.OBJECTIVES OF THE STUDY This project is based on the detailed analysis of Hershey’s: Its growth and expansion Objectives of the study are:  Missions. events and initiatives that shaped the company  Products & services: business description. values.

location . 16 . The Scope of Company analysis is limited to one company Hershey’s. this guide is designed to give someone searching for company information some ideas and strategies for finding this type of information. tend keep their information more closely held. The scope of my study is worldwide and is not limited to one particular area but. to know itsperformance. Rather. many sources to use. the comparison with the existing competition in the industry has been analyzed. industry.there are far more possible sources than could be included in a single guide. expansion skills. or by all publishers . When doing company research there are many. product description. Also. future plans and the standing of the company in the market. in all places. growth. Researching them tends to be a more creative exercise.SCOPE OF THE STUDY This finding aid is not intended to include all sources of company information on all industries. Depending on the company . Those companies in industries that are dominated by private players or those in areas that are more suspicious of their competitors.its size.some sources will be good while others will not. refers to many countries where Hershey’s is exported and manufactured.

snack products. Hershey. In this report. the terms ―Company.‖ ―us. The principal product groups include chocolate and confectionery products. and pantry items.Company Overview The Hershey Company was incorporated under the laws of the State of Delaware on October 24.‖ or ―the‖ mean The Hershey Company and its wholly-owned subsidiaries and entities in which it has a controlling financial interest. 1927 as a successor to a business founded in 1894 by Milton S. unless the context indicates otherwise. such as baking ingredients. We are the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery. gum and mint refreshment products. toppings and beverages. 17 .‖ ―we.

History and detailed background of Hershey’s 18 .

Close to the ports of New York and Philadelphia that supplied the imported sugar and cocoa beans needed. the new enterprise was named the Hershey Chocolate Company. the new factory was turning out delicious milk chocolate. Hershey’s company originated with candy-manufacturer Milton Hershey’s decision in 1894 to produce sweet chocolate as a coating for his caramels.History of Hershey’s It all started with a decision. In 1900. wafers and other shapes. high-quality milk chocolate soon caused the company’s owner to consider increasing his production facilities. He decided to build a new chocolate factory amid the gently rolling farmland of southcentral Pennsylvania in Derry Township. 19 . hardworking people. and with a local labor supply of honest. The immediate success of Hershey’s low-cost. Located in Lancaster. By the summer of 1905. the company began producing milk chocolate in bars. A company on the move. surrounded by dairy farms that provided the milk required. Pennsylvania. the location was perfect. where he had been born.

In 1924. 20 . At first. (which had provided milk chocolate bars to American doughboys in the first war) was already geared up to start producing a survival ration bar for military use. conical milk chocolate candy that Mr. HERSHEY’S chocolate goes to war. In fact. By the end of the war. the Hershey Chocolate Corp. That technology was also used to add the familiar ―plume‖ at the top to signify to consumers that this was a genuine HERSHEY’S KISSES Chocolate. they were individually wrapped in little squares of silver foil. the company’s machine shop even turned out parts for the Navy’s antiaircraft guns. With the outbreak of World War II. but in 1921 machine wrapping was introduced. Hershey decided to name HERSHEY’S KISSES Chocolates. the company even had it trademarked. Looking to expand its product line. the company in 1907 began producing a flatbottomed. more than a billion Ration D bars had been produced and the company had earned no less than five Army-Navy ―E‖ Production Awards for its exceptional contributions to the war effort.A KISS for the whole world.

S. The Hershey Company continues to introduce new products frequently and take advantage of growth opportunities through acquisitions. and Ronzoni Foods (1990). The Hershey Company enters a new century. confectionery operations (1988). Peter Paul/Cadbury’s U. As the new millennium begins. With approximately 13. acquiring related companies and even diversifying into other food products. makers of TWIZZLERS licorice (1977).’s confectionery operations (1986). Y&S Candies. manufacturing and marketing rights to English candy company RowntreeMacKintosh’s products (1970). the company exports to over 90 countries. The Hershey Company is the leading North American manufacturer of chocolate and non-chocolate confectionery and grocery products.expanding its confectionery product lines. In fact. Today. HERSHEY’S products are known and enjoyed the world over.renamed Hershey Foods Corporation in 1968 . Dietrich Corp. The following decades would see the company .Growing up and branching out.700 employees and 21 . Among the many acquisitions were San Giorgio Macaroni and Delmonico Foods (1966).

Milton Hershey became even more convinced that his future in the candy business lay in chocolate. the company produced baking chocolate. But things changed with the hiring of William Murrie to sell the excess product to other confectioners. the Hershey Chocolate Company was simply a wholly owned subsidiary of Milton Hershey’s Lancaster Caramel Company. not caramels.net sales in excess of $4 billion. Using chocolatemaking equipment purchased at the 1893 Columbian Exposition in Chicago. cocoa and sweet chocolate coatings for the parent company’s caramels. Murrie was so successful a salesman that the Hershey Chocolate Company quickly turned into a viable concern on its own. 22 . The Hershey Company remains committedto the vision and values of the man who started it all so many years ago GETTING STARTED A New Company: 1894 In the beginning.

sometimes holding a cup of cocoa. sometimes a chocolate bar. the Hershey Chocolate Company was manufacturing 114 different items in all sorts of sizes and shapes.Sweet Chocolate Novelties: 1895 – 1909 By 1895. Even the child’s hair and facial expression underwent changes over the years. Milton Hershey was certain the real market lay in milk chocolate. Finding the Formula: 1895 – 1904 While his company was successful enough selling sweet chocolate products. the company adopted a very distinctive symbol for its trademark. The problem 23 . The logo symbol was finally retired in 1968. Many were flavored with vanilla and given luxurious-sounding names like LeRoi de Chocolate. Petit Bouquets and Chocolate Croquettes. when it was finally replaced by the block lettering familiar today. The Baby in the Bean: 1898 On August 1. 1898. The ―Baby in the Bean‖ went through many incarnations. Chocolate ―segars‖ and cigarettes were also quite popular. when the company was reorganized as Hershey Foods Corporation. The small child in a cocoa bean pod appeared on cans of HERSHEY’S COCOA up until 1936.

EXPANDING AND INNOVATING Stepping Stones Many Hershey products that are familiar today were originally produced for the confectionary trade and were later reformulated for consumers.was in developing a formula for manufacturing it cheaply and efficiently. in 1899. he cracked the recipe and became the first American to manufacture milk chocolate. Hershey worked day and night. for example. while still maintaining a high level of quality. Hershey was the first to sell chocolate syrup for home use beginning in 1926. rarely even stopping for meals. HERSHEY’S powdered cocoa. While Sprigs. Finally. going back and forth between the condensing room and the creamery. the forerunner of HERSHEY’S chocolate chips. A Kiss and Tell Story 24 . has been manufactured continuously since 1894. Dressed in hip boots. Also. was introduced in 1928. Hershey built a milk-processing plant on the family farm in Derry Township in 1896 and spent the next several years developing a viable formulation for milk chocolate.

each one was hand-wrapped in a square of silver foil. with almonds. Finally. but in 1921 machine wrapping was introduced. Up and Away Despite Milton Hershey’s death in 1945. During its first few years. Sweet Inventions The KRACKEL bar was introduced on September 14. GROWING GLOBALLY Up. leaving the crispy milk chocolate recipe enjoyed by millions ever since.Of these. along with the addition of the unique ―plume‖ which marked it as a genuine HERSHEY’S KISSES Chocolate. the nuts were eliminated altogether in 1943. the very first addition to the HERSHEY’S product line of milk chocolate confections was HERSHEY’S KISSES Chocolates way back in 1907. and then peanuts. a host of new products were 25 . Originally. 1938. being included along with crisped rice in milk chocolate. Throughout the post-World War II period. Hershey Chocolate Corporation retained the entrepreneurial values of innovation and risk-taking imprinted on it by its founder. the formula for the confection changed several times.

introduced. Reese Candy Co. the Philippines and Taiwan. Hershey's International division exports HERSHEY’S chocolate and grocery products worldwide and maintains licensing agreements with partners in nations such as South Korea. We don’t believe Milton Hershey would have been at all surprised to learn that his HERSHEY’S KISSES Chocolates are especially popular in Japan. California. Japan. and Delmonico Foods. One example of this new approach was the purchase in 1963 of the H. the company was ready to enlarge the scope of its operations. Another was the company’s diversification into pasta manufacturing with the acquisition of San Giorgio Macaroni. 26 . Canada and Oakdale. some of which were discontinued after only a few years.B. The Hershey Company also carries on a significant international presence with operations in more than 90 different countries. The company also expanded geographically. many of which were successful. Inc. Inc. Hershey Goes International In addition to being the leading producer of chocolate and non-chocolate confectionary and other grocery products in North America. building new chocolate plants in Ontario. By the 1960s.

Top of the Charts Through unceasing technological modernization.000.55 in today's currency) and began to concentrate on chocolate manufacturing.4 billion in 2004. where he founded the Lancaster Caramel Company. In 1900. After trying unsuccessfully to manufacture candy in New York. The Hershey Company grew spectacularly in the last 30 years of the 20th century. whose use of fresh milk in caramels proved successful. which failed six years later. The company also is a leader in the gum and mint category. Detailed specifications After completing an apprenticeship to a confectioner in 1873. Milton Snavely Hershey founded a candy shop in Philadelphia.670. the company’s net sales soared to $4. The Hershey Company is the leading North American manufacturer of quality chocolate and non-chocolate confectionery and chocolate-related grocery products. From $334 million in 1969. 27 .613. Hershey returned to Pennsylvania. Hershey sold his caramel company for $1.000 (US$24. strategically astute acquisitions and continued new product development.

Milton built a milk-processing plant in the year 1896. Milton Hershey knew that a fortune lay in making and selling milk chocolate products. Canada 28 . he developed the Hershey process. In 1899.000 square feet (700 m2) Hershey Store located on the Falls Avenue Entertainment Complex in Niagara Falls. 7. three years later. so he could create and refine a recipe for milk chocolate candies.While his company was successfully selling sweet chocolate products.

small flat-bottomed conical-shaped pieces of chocolate that he named "Hershey's Kiss". Times Square. New York City Hershey's Syrup. Initially they were individually wrapped by hand in squares of foil. and the introduction of machine wrapping in 1921 simplified the process while adding the small paper ribbon to the 29 . circa 1950s In 1907.Hershey's Times Square Store. Hershey introduced a new candy.

The product was trademarked three years later and went on to become one of the most successful and well-known products ever produced by the company. 30 .top of the package to indicate that it was a genuine Hershey product.

Hershey’s Products 31 .

a block of white chocolate with small pieces of cookie in it.Hershey's produces a large variety of chocolate based products.    Hershey's Special Dark with Almonds Hershey's Extra Creamy Chocolate and Caramel Hershey's Cookies 'n' Creme. contains less sugar than other forms. The ingredients lists of it and its normal counterpart are 32 . Hershey's chocolate bars  Hershey's Milk Chocolate is commonly thought of as "plain" or "normal" Hershey's chocolate. It contains 45% cacao solids. a mildly bittersweet chocolate. Hershey's Symphony  Hershey's Symphony contains less sugar and is creamier than "normal" Hershey's chocolate.  Hersey's Milk Chocolate with Almonds standard Hershey's chocolate with almonds mixed in.  Hershey's Special Dark. Hershey is also licensed to produce Cadbury products.

& Almonds Hershey's Pure Dark Chocolate with Pomegranate Almond Joy  Almond Joy Bar. "Extra Dark" is 60%.  Hershey's Symphony with Almonds Hershey's Extra Dark  Hershey's Pure Dark Chocolate is a darker chocolate product under the "Extra Dark" name. Quantities are not listed.   Hershey's Pure Dark Chocolate Cranberries. Blueberries. to 6. Hershey recently reduced the size of the Symphony bar from 8 oz.identical. so one can not know for sure how greatly the proportions differ in Hershey's Symphony.8 oz. a milk chocolate enrobed bar containing a coconut based mixture and almonds   Almond Joy King Sized Bar Almond Joy Miniatures 33 . Whereas "Special Dark" is 45% cacao solids. in America it is mandated that ingredients only be listed in their order of total makeup. and added the words "Giant Bar" to the wrapper.

a small bite-sized candy version of the Almond Joy bar introduced in 2010 Mounds      Mounds Bar candy bars are dark chocolate enrobed coconut base mixture Mounds King Sized Bar Mounds Miniatures Mounds Snack Size Bars Mounds 8-Pack 100 Calorie Bar       York Peppermint Wafer Bars Reese's Peanut Butter Wafer Bars Hershey's Pretzel Bars Hershey's Special Dark Chocolate Bars Hershey's Crisp Wafer Bars Hershey's Whipped Vanilla Bars 34 .   Almond Joy Snack Size Bars Almond Joy 8-Pack Almond Joy Eggs.

Hershey's has also introduced Limited Edition varieties. was introduced in 2004 and features both 4 kinds of chocolate and 4 kinds of nuts.   Hershey's Bliss Milk Chocolate with a Melt Away Center Hershey's Bliss Dark Chocolate Hershey's Drops Circular-shaped chocolate candies based on 2 Hershey chocolate bars. including a holiday Mint Miniatures Collection. bite sized chocolates in a square shape and wrapped in foil.   Hershey's Drops Milk Chocolate Hershey's Drops Cookies and Cream Hershey's Miniatures A new collection. advertised as creamy and indulgent.Hershey's Bliss  Hershey's Bliss Milk Chocolate. Nut Lovers. 35 .

Caramel Assortment. Hershey's Special Dark and Mr. 36 . Mint Assortment. Goodbar varieties. Pecan Caramel Clusters. premium boxed chocolates in a variety of assortments: Almond Caramel Clusters. Devised in 1939 and unchanged since. Krackel (a chocolate bar containing crisped rice.  Cookies 'n' Chocolate. a bag of miniature Hershey's bars in Hershey's Special Dark varieties Hershey's Pot of Gold  Hershey's Pot of Gold. essentially chocolatecovered wafer bars. Premium Assortment. Créme Assortment. Chocolate Assortment. a bag of miniature Hershey's bars in Hershey's Milk Chocolate. Assorted. a bag of miniature Hershey's bars in Hershey's Milk Chocolate and Cookies 'n' Creme varieties  Special Dark Miniatures. Nut Assortment.). Sugar Free and Truffle Assortment Kit Kat Wafer Bar Sold only in the United States under license from Nestlé.

       Kit Kat Milk Chocolate Kit Kat Extra Crisp Kit Kat White Kit Kat Snack Size Kit Kat Minis Kit Kat Seasonal Bunny Ears Kit Kat Seasonal Best Friend Heart Hershey's Nuggets chocolates      Milk Chocolate Extra Creamy Milk Chocolate with Toffee and Almonds Milk Chocolate and Almonds Double Chocolate Special Dark Chocolate with Almonds Hershey's Kisses brand chocolates Hershey's Kisses brand chocolates ("kisses") are pieces of chocolate shaped like very large chocolate chips. 37 .

      Milk Chocolate. a larger Peanut Butter Cup with white chocolate 38 . a dark chocolate kiss Cherry Cordial. a kiss with caramel filling Hugs. a kiss with cherry flavored filling Reese's Peanut Butter Cups Possibly one of Hershey's best-known products due to long-running massive advertising campaigns. a kiss containing almond pieces Special Dark. a larger Peanut Butter Cup with milk chocolate  Peanut Butter and White Chocolate Big Cup.      Peanut Butter and Milk Chocolate Peanut Butter and White Chocolate Crispy Crunches Reese's Select Clusters Peanut Butter and Milk Chocolate Big Cup. a kiss containing a twist of white chocolate and milk chocolate Milk Chocolate with Almonds. a kiss containing milk chocolate Filled with Caramel.

a brownie containing peanut butter and chocolate Egg. Peanut Butter Cup in the shape of a heart Miniatures. Peanut Butter Cup in the shape of a pumpkin Tree. chocolate covered malted milk balls Peanut Butter Strawberry 39 .       Brownie. A variable of the classic Reese's Peanut Butter Cup Pumpkin. Peanut Butter Cup in the shape of a tree Dark Chocolate. Peanut Butter Cup in the shape of an egg Heart. A Reese's Peanut Butter using Hershey's Dark Chocolate Pieces     Reese's Pieces Almond Joy Pieces Hershey's Special Dark Pieces York Pieces Whoppers    Milk Chocolate.

Rolo consists of chocolate-covered caramels.   Skor is a candy bar containing toffee. Also made and sold in the US by Hershey under license by Nestlé.   The Heath Bar is a slab of toffee enrobed with chocolate.      York Miniatures York King Size Patties York 8-pack York Valentines York Snowflakes Others  The Whatchamacallit Bar is a peanut-flavored crisp with a layer of caramel and a milk chocolate coating. 5th Avenue is a candy bar which contains a peanut-based mixture. 40 . a patty of peppermint flavored filling enrobed with dark chocolate.York Peppermint Pattie  York Peppermint Pattie.

Milk Duds are commonly sold in American movie theaters as a snack. is a candy bar with pretzels. consists of creamy peanut butter and nougat covered in milk chocolate. The chocolate mixture has coconut and roasted peanut pieces incorporated into it. peanut butter. known as Max 5 in Canada.  Reese's Sticks made with Chocolate and Peanut Butterare peanut butter filled wafers covered in milk chocolate. 45g chocolate covered maraschino cherry and syrup. Milk Duds are small bits of caramel enrobed in milk chocolate. known as Hershey Sidekick in Canada.  Reese's Fast Break. 41 . Goodbar is a chocolate bar containing peanuts. Hershey Canada  Cherry Blossom is an individually packaged.  Glosette(s). a Canada exclusive product consisting of chocolate covered raisins. peanuts or almonds.   Mr. peanuts. and chocolate.  Reese's NutRageous consists of creamy peanut butter. caramel and roasted peanuts covered in milk chocolate. caramel. Take 5. They are sold in packages of two sticks each.

 Cadbury Caramel Egg. milk chocolate with almonds.    Cadbury Caramello candy bar milk chocolate squares with creamy caramel. vanilla flavored candy shell. Cadbury Roast Almond Chocolate Bar.  Cadbury Mini Eggs candy. bite-sized milk chocolate eggs coated in a hard. plain milk chocolate. currently made in the United States by Nestlé. and fudge enrobed in chocolate. a candy bar containing peanuts.   Cadbury Royal Dark Chocolate Bar. 42 . Cadbury Fruit & Nut Chocolate Bar. plain dark chocolate. usually sold around Easter. is a variety of Cadbury Creme Egg filled with caramel. Cadbury Dairy Milk Chocolate Bar.  Cadbury Creme Egg. milk chocolate with assorted fruits and nuts. caramel. is a chocolate egg with creme in it. Cadbury Chocolates Cadbury products are sold by Hershey's in the United States and Kraft Foods in other parts of the world. Oh Henry!.

a combination of caramel. peanut and almond nougat covered in white fudge. lollipops. They are chewy. PayDay candy bar. Bubble Yum bubble gum brand. Ice Breakers chewing gum and mints.Non-Chocolate         Breath Saversbreath mints. Reese's. and Skor. consisting of toasted coconut and peanut butter. Butterscotch. SemiSweet Chocolate. and flavored soda. Jolly Rancher hard fruit candy.  Hershey's cookies and cream is a bar made of vegetable oil-based white confection with added chocolate wafer bits (similar to Oreo cookies). Koolerz chewing gum. which contains peanuts and caramel but no chocolate. similar to Mike And Ike candy. Chipits. ZAGNUT candy bar. Dark Chocolate. comes in: Milk Chocolate. White Chocolate. Zero candy bar. white and purplish-red pill shaped licorice candies. CareFreeKoolerz mint based gum in various flavors made with Xylitol. 43 . chocolate chips. with Xylitol and regular. Other    CareFree sugarless gum.  Good & Plenty.

and Reese's pieces. Hershey's Trail Mix.  Really Nuts.  Snacksters. Reese's Honey Glazed Peanuts. Mauna Loa Cashew Nuts. and Cookies 'n Creme.  Hershey's Cookies.  Snack Barz. Caramel. Available in the following flavors: Hershey's Chocolate Créme. York Peppermint Patty. and Cookies 'n Créme. Reese's Trail Mix and Mauna Loa Trail Mix. 44 . Hershey's Brownies and Reese's Brownies. available in the following Hershey's flavors: Hershey's with Almonds. Double Chocolate and Confetti Sprinkles. Layered cookies are two cookies with a layer of sandwich creme in the middle and are available in the following flavors: Hershey's. Hershey's S'mores Marshmallow Créme. Caramel. 100-calorie packs of cereal puffs mixed with a variety of other Hershey's and Reese's items such as chocolate chip cookies. cereal squares. peanut butter chips. Reese's and Heath. Reese's Peanut Butter. Almond Joy. a chocolate cookie with toppings and covered in chocolate. Reese's peanut butter. Mini kisses cookies are shaped like Hershey's kisses and are available in the following flavors: Chocolate Chip. candy bars similar to rice krispie treats. semi-sweet and milk chocolate chips. snack nuts and trail mixes. brownies containing Hershey's chocolate chips or Reese's peanut butter chips with icing on top. Available in the following flavors: Reese's Roasted Peanuts. Hershey's Chocolate Cocoa Peanuts.

[2]  Sweet 'n Salty Granola Bars. Reese's with chocolate and Reese's with peanut butter. Available in three flavors: Hershey's with pretzels.S. This includes the Twizzlers Pull And Peel variety. Hershey's. which can be easily pulled apart. 45 . caramel. Hershey's first hard candy.  Twizzlers. Made in butterscotch. granola bars combined with other Hershey's and Reese's ingredients. and peppermint varieties. Military. in which the sticks are composed of semi-distinct smaller twisted rods of Twizzlers. and Reese's.Available in five varieties. Twizzlers. Hershey's Kisses. Hershey's S'Mores. artificially flavored licorice sticks in various flavors.[6] It was discontinued in July 2009. chocolate. Miscellaneous products  Hershey's makes military chocolate for the U. Cacao Reserve by Hershey's Cacao Reserve by Hershey's was marketed as a premium line in comparison to Hershey's other chocolate products.  TasteTations.

 Single Origin. 35% Cacao Premium Milk with Hazelnuts. chocolate bars which differed from the Signature Collection bars in that each bar was made from cacao beans that grew in a single region.  Truffles were tins. 65% Premium Dark. It came in fthe varieties: 35% Cacao Premium Milk. which contained eight small chocolate truffles with either 35 or 60 percent cacao content. 46 . in approximately the same size as those used by Altoids. Santo Domingo with 67% cacao content. These origins were São Tomé with 70% cacao content. Signature Collection. Arríba with 50% cacao content. and 65% Premium Dark with Cacao Nibs. the original series in this line. and Java with 37% cacao content.

Partnerships 47 .

SKOR toffee bars. and CHIPITS chocolate chips. REESE PEANUTBUTTER CUPS candy.Hershey’s seek to build strong relationships with suppliers that are mutually beneficial and that drive innovation and best practices for the total supply chain.TWIZZLERScandy. EAT MORE candy bars. OH HENRY! candy bars.GLOSETTE chocolate-covered raisins. market.JOLLY RANCHER candy. including NUTRINE and GODREJ confectionery and beverage products Canada Principal products they sell in Canada are HERSHEY’S milk chocolate bars and milk chocolate bars with almonds. sell and distribute confectionery. India They manufacture. Hershey has developed responsible sthecing programs to continuously improve the supply chain. peanuts and almonds. HERSHEY’S KISSES brand milk chocolates. WHOPPERS malted milk balls. POT OF GOLD boxed chocolates. beverage and cooking oil products in India. 48 .

import and market chocolate and confectionery products in Brazil. and PELÓNPELO RICO chocolate. including HERSHEY’S. Brazil They manufacture. market. toppings and chips for ythe culinary needs. KISSES.Mexico They manufacture. JOLLYRANCHER. They offer a broad line of branded products including cocoa. Supplier Programs The Hershey Company has a long history of operating with high ethical standards and integrity. syrup. import. Create and enhance ythe own 49 . The Hershey Company invites these companies to register as a potential supplier of goods and services in support of the global operations. confectionery and beverage items. sell and distribute chocolate and confectionery products in Mexico. including HERSHEY’S chocolate and confectionery items and IO-IO items. They seek to build strong relationships with suppliers of diverse ownership. Hershey's Food Service HERSHEY'S Food Service is one of the industry's leading branded sweet ingredient suppliers.

Hershey's Concession Concession sales drive theater profitability.signature recipes using HERSHEY'S. delivering more gross margin than ticket sales! HERSHEY'S Concession breakthrough brands and comprehensive support programs maximize concession sales and earn bigger profits all year long! Hershey's Convenience HERSHEY'S is the perfect partner for retailers across the Convenience Store Industry. Hershey's Fund Raising Candy is the #1 fund-raiser! What fund-raising event would be complete without HERSHEY'S Fund Raising products? Hershey's Vending Vending-ready product lines and state-of-the-art vending machine services. The HERSHEY'S Convenience website provides a first look at new 50 . REESE'S and HEATH branded products across all dayparts.

download a product catalog. Hershey's Order Connection HERSHEY'S Order Connection is a 24/7 real-time environment where their business customers can place and track orders. plus quick and easy access to exclusive offers and important sales tools.products and current promotions. view and print invoices. and view a variety of other data. 51 . Electronic Data Interchange(EDI) HERSHEY'S EDI saves their partner’s time and money by streamlining business transactions via a secure electronic connection.

Market Competition & Comparision 52 .

The company is also investigating expansion opportunities in Indonesia. In April 2010.Growing Global Demand Makes International Expansion Attractive Huge markets in China. and Thailand. the company is looking to UAE. it hopes to open six additional stores in the country within three years. In the Middle East. international expansion remains a big opportunity. India and other developing countries also present a big opportunity for Hershey's. Chocolate sales in China have doubled to $813 million over the last five years while India's chocolate sales have risen 64% over the same period Hershey's has tried to move into these markets with through joint ventures with Lotte Confectionery of South Korea and Godrej in India. Still. 53 . the company is still looking to international markets for its growth prospects. the company has said they are interested in acquiring foreign candy companies in order to expand their global footprint. Hershey's announced plans to open its first store in Singapore. with each country eventually supporting fthe to six stores. Malaysia. with 90% of sales within North America. and Qatar as possible store locations with fthe to six stores in the UAE and two or three in the other two countries eventually. Although Hershey's bid for Cadbury was unsuccessful. Kuwait.

Figure 1 below shows thisdata. In the past year the sales have raised but not significantly.Industry Overview The total chocolate candy sales for 2002 through 2007 increased slowly but leveled off between2004 and 2006. 54 .

The total confection sales between 2002 and 2007 started off stable and then slowly increase Approximately a billion dollars each year. Figure 2 shows this data. 55 .

Figure 3 below show this data. 56 .The chocolate sales for ―Every Day‖ for 2002 and 2007 significantly increased every year.

Figure 4 below shows this data 57 .The chocolate sales for ―Every Day‖ by market share of chocolate steadily increased each year.

The merger hurts Hershey's international growth prospects as the company had been hoping Cadbury would greatly expand Hershey's brands beyond their current domestic marketplace.5 billion. a spokesman for the Hershey Trust has categorically denied any possibility of a takeover. However. outbidding Hershey to create the largest chocolate and confectionary company in the world. rumors have circulated that Nestle (NSRGY) is looking to buy a smaller competitor such as H.On January 19. and Hershey's name has also been mentioned. With the new cash. 2010. Hershey's shares are currently valued around $10 billion.1 billion. In the wake of the merger.Despite the Trust's denial. Kraft Foods (KFT) bought Cadbury for $19. 58 .J. Nestle could buy almost any food or confectionery business with cash. especially since the company's recent sale of Alcon to Novartis for $28. Heinz Company (HNZ) or General Mills (GIS). rumors are still circulating about a possible takeover by Nestle.

59 .

Both the primary competitors and secondary competitors market share percentages are determined by the amount of sales of chocolate candy they sell each year. 60 . The secondary competitors are also known as specialized marketers.COMPETITORS Primary Competitors Mars | Nestle | Russell Stovers Secondary Competitors Lindt | Godiva | Ferrero Rocher | Scharffen Berger | Cadbury | Brach’s | Storck The primary competitors are the top marketers in the chocolate industry with the largest market share percentages. See details above for a list of Hershey competition.

Hershey’s dominates the chocolate market share with a steady increase over the past five years.3% over the past five 61 . In 2002 Hershey’s market share had 41.0%.9% from 2002 to 2006. Mars has decreased . In comparison. Mars and Nestle have lost market share.6% and in 2006 they had 43. Nestle has gone down .

It is evident that this demographic is buying less of Hershey’s Kisses.4 million in 2005 to $246.96 billion in 2006. Chocolate Sales. M&M’s brand has increased sales significantly over the past three years. Although Hershey’s is stealing the market share from Nestle and Mars.1 million to $125. Mars is leading in brand sales with M&M’s.13 billion but still not reaching Hershey’s leading company sales.7billion in 2002 to $1. Hershey sales grew from $1. Overall. Nestle came in third in the overall U. there is a noticeable trend in the growth of the chocolate market and Hershey’s consistent growth as a chocolate market leader. Despite Hershey’s dominance in market share.2million in the past year. which is a factor in Hershey’s leading market share. Hershey’s Kisses leading demographic is white women ages 45 to 54 in southeast. 62 . brand sales of Mars’ M &M’s is pulling most of the weight in the Mars market share.5 million in2008. but other Hershey brands also contribute to the overall leading market share. Mars decreased in sales between 2003 and 2005 but jumped back up to $1.years. On the other hand Hershey’s kisses brand sales have fallen from $128. Yearly company sales for Hershey’s once again lead over Nestle and Mars between2002 and 2006. Meanwhile. Reese’s brand is stabilizing in sales.S. M&M’s has increased from$210. Hershey’s Kisses is the brand sales leader for Hershey’s.

However. 63 . Hershey Kisses falls behind Mars M&M’s in brand sales. Hershey leads over the chocolate market in sales and in market shares.In conclusion.

2% decrease in consumption. adults Hershey’s Kisses claim the top spot with a preference rate of 6.8% in 2003to 8. In 2003 Snickers had a 20.8% Figure below shows the preference rates of adult consumers of the top chocolate brands between the years 2003-2006.8% Mars Snickers 3.6% Reese’s Peanut Butter Cups 3.ANALYSIS AND INTERPRETATION According to brand preference rates among U. Nestle Crunch comes in last with a rate of 0.3%. 64 .5% Nestle Butterfinger 2.8%. the consumption rate changing from 10. A complete list of the six brands is show in statistics below : Hershey’s Kisses 6.0%consumption rate and in 2006 the consumption rate declined to 14.6% in 2006.0% Nestle Crunch 0.3% Mars M&M’s 4.2% decline.S. While all six brands had a decrease in their consumption rate over the past four years Mars’ Snickers lost the most ground with a 5.8%. Nestle Butterfinger had the least percent change with a 2.

04% 8.Chocolate Brands Purchasing Index by Gender 2006 BRAND Hershey Kisses Butterfinger Butter Cups M&M's Snickers Crunch BASE % 15.09 6.61% 12.81 3.71 MALE 84 98 102 89 106 108 FEMALE 116 102 98 110 94 92 DIFFERENCE -31 -4 4 -21 12 16 65 .61 14.

61% 14.09% 12.61% 105 106 107 93 83 98 93 67 84 105 118 82 89 121 90 146 159 159 80 57 76 94 177 66 66 .04% 12.Chocolate Brands Purchase Index by Age 2006 Brand Kisses (Hershey) Reeses(Hershey) M&M(Mars) Snickers(Mars) Crunch( Nestle) Butterfinger(Nestle) 18-24 101 116 104 123 120 111 25-34 87 118 103 104 130 94 35-44 97 126 123 113 126 103 4554 110 92 108 100 102 92 5564 107 87 98 90 63 102 6574 104 70 64 91 60 116 75+ 91 56 58 57 56 87 Chocolate Brand Purchasing Index by Race/ Ethnicity 2006 BRANDBASE%WHITEHISPANICBLACKASIAN Kisses Reese's M&M's Snicker's Crunch Butterfinger 15.81% 3.77% 8.

96 billion in chocolate. in 2006 theysold $1.LIMITATIONS Hershey’s. all three companies have their ownstrengths and weaknesses. Mars and Nestle are allcompanies that dominate the chocolate industryin terms of sales of everyday chocolate. While they lead thechocolate market in terms of sales. Hershey has hadproblems over the past two years trying toincrease their sales. Another weakness of theHershey Company is the lack of spending onadvertising in the past year and neglecting topromote core brands in favor of pushing limitededitionproducts.However. These two weaknesses havehurt their sales in terms of chocolate. 67 . sales haveremained relatively stable with no significantincrease or decrease.

Financial Analysis 68 .

milk. such as Kit-Kat bars. however his power currently doesn't extend beyond the confines of his barricaded hotel. all of which saw price increases in 2009. and Kisses In 2009. Hershey maintains the right to manufacture and sell competitors' products. prices for this vital chocolate ingredient have risen more than 15% since November 2010. With the recent turmoil in the Ivory Coast. The company is particularly vulnerable to market prices of key ingredients like cocoa. Additionally. through licensing agreements with foreign Nestle (NSRGY) and Cadbury Schweppes (CSG). Hershey sells products in 50 countries under 60 brand names including.Hershey Foods (NYSE HSY) is North America's largest chocolate producer. With 42. the company's net revenues were nearly $5.30 billion with net income of $436 million. the president-elect issued a largely symbolic ban on the export of cocoa until March. The long-term effect of the conflict on chocolate prices remains to be seen but it closely follows crop 69 . the company has both lowered product weight and raised domestic wholesale prices. In order to combat rising costs. sugar and peanuts. which produces 40% of the world's raw cocoa.  Rising costs are a particularly difficult challenge for Hershey. Hershey's. Reese's. Most recently.5% of the US chocolate market.

Kraft Foods (KFT) bought Cadbury for $19.plagues in both Ghana and Indonesia which threatened the cocoa supply in mid2010. 2010. On January 19.5 billion. outbidding Hershey to create the largest chocolate and confectionary company in the world. Business Financials 70 .

however the quarter also benefited from a seasonal volume shift from Q4 2009 to Q1 2010. sales increased 14% for the 71 . net income nearly doubled to $147 million.Quarterly Earnings Q1 2010 In the first quarter of 2010. the core brands that the company spent money advertising saw their takeaway increase 10%. Hershey's market share increased 0.5% if you discount the increase that resulted from an early Easter season that atypically fell into Q1 this year. advertising expenditures are expected to increase 35%40% in 2010. The company has completely cycled through its August 2008 price increases and is still seeing base volume growth.5% for the quarter with the company's consumer take away (including Wal-Mart) increasing 7. Excluding sales at WalMart (WMT). Hershey's Valentine's season sales decreased by less than 10% and accounted for a 1% decline in market share for the quarter. Valentine's Day. In particular. usually the largest holiday of the quarter. Higher core brand sales volume and improved pricing were the major forces pushing the substantial increase in net sales for the quarter.5% or 5. an increase of nearly 14% from Q1 2009. was difficult for the entire candy industry this year with consumer spending and gifting down. Internationally but excluding Canada.41 billion. feeding off the company's better-than-expected revenues for the quarter. Hershey's posted revenues of $1.

an increase of 5. Delays with rolling out nation-wide distribution.23 billion. The business realignment charges that affected the company's net income stemmed from a $44.3% from Q2 2009. Brazil. Lower supply chain costs more than offset a slight increase in the cost of raw materials. The fall in net income was primarily attributable to business realignment and impairment charges. and Canada.quarter with strong earnings growth in Mexico. Without these charges. and a poor Indian sugar crop have all affected the company's business in India to date. Hershey's bought Godrej and started the joint venture in 2007.The increased revenues were driven by a 3% increase in sales volume for the company's core US brands. Q2 2010 In the first quarter of 2010. Although the company did not release specific figures for its various international 72 . Hershey's market share (excluding sales at WalMart increased by 0. India saw a decline in sales which offset some of the gains realized in these other countries. Hershey's posted revenues of $1.7 million. net income decreased by more than 34% to $46.3% and the consumer takeaway (including Wal-Mart) increased by 4%. net income would have increased nearly 18%. but it has not grown at the rate originally expected. China.7 million devaluation of the Godrej Hershey joint venture in India. In contrast. failing to implement higher pricing.

business in Mexico.5%. Q3 2010 In the third quarter of 2010. and improved pricing contributed 1% to revenues for the quarter. a certain portion of sales from the holiday will be accounted for in Q4. Hershey's posted revenues of $1.2% from Q3 2010. 73 .5% during the quarter and the company's market share grew slightly by 0.5 billion.2% to $180.2 million. international sales volume increased. Brazil.1%. The company is launching two new products in Q4 (Hershey's Drops and Reese's Minis) and since Halloween fell near the end of the quarter.operations. Consumer takeaway increased more than 3. Operating income for the quarter grew 11. an increase of 4. sales outside the US grew by more than 10% concurrent with an increase in advertising spending outside North America that was 65% higher than in Q3 2009. except for a slight increase in advertising which is now expected to be 50-60% more for the year than in FY 2009. Sales of core brands increased by 2. Internationally. though the company admits that India is not growing as quickly as they had planned.2% to $655. The company's performance in America steadily built on last quarter's progress but there were no major increases in any segment. net income for the quarter increased 11.2 million. China and India all grew during the quarter.

which almost doubled between January and August 2009. Since the beginning of 2008. Hershey's combats increasing input costs with a combination of price increases and various hedging strategies. These rapid price increases show no signs of abating as Hershey's predicts commodity prices will increase twice as fast in 2009 compared to 2008. has resulted in a cocoa price increase of more than 15% since November 2010. The president-elect AlassaneOuttara issued a largely symbolic ban on the export of cocoa until March 2011. milk and sugar which are all key ingredients in Chocolate making. Much of this rise comes increases in sugar. milk. prices for key ingredients like cocoa. sugar and peanuts are all up 20% to 40%. The election conflict in the Ivory Coast. The Ivory Coast produces approximately 40% of the world's total cocoa supply. the world's largest cocoa producer. The long-term effect of the conflict on chocolate prices remains to be seen but it closely follows crop plagues in both Ghana and 74 . the company has twice raised wholesale prices[47].Trends and Forces Rising Commodity Costs Pressuring Margins Rising commodity costs are putting negative pressure on Hershey's operating margins. In 2008 alone. however his power currently doesn't extend beyond the confines of his barricaded hotel. Hershey's is particularly sensitive to the prices of commodities like cocoa.

75 .Indonesia which threatened the cocoa supply in mid-2010. cocoa prices immediately rose an additional 7%. Following the announcement of the export ban.

..090 488............96 ..956....... —Basic—Common Stock ..............668 5............31 2.....................459 235........876 180..8% Payroll ... Advertising ..19 65....79 34.........3% Impairment Charges......0712 8.....023 647.......37–52...............262...6)% Short-term Debt and Current (42......954 349...............709 228....32– 32........... GAAPBasis .....77 1.........236 — 66..........531 3..4% 227...........6)% Percent of ..........4% Per Share ..........672 1......1% 8......844 256...........035 4.....09 2.......154 ........7% 200.....699 3...868 118......747 60...371 1.......061 2.......634....6% 171...............147 3................194 14.....84 2........... Provision for Income Taxes ...019 $ $ $ $ $ $ $ $ 82.27 1.....0)% Year-end Position and Statistics CapitalizedSoftwareAdditions ....34 174. (3....40 49.................10 56...4% $ $ $ $ $ 157.......36 166.44 2..............8% Portion of Long-term Debt ....986 867.........718 895.135 62.... 6....... Interest Expense.768 $ 3..............716 4......137 435. (5....750 13....... 7.......423 12.......1% Per Share .....038 108...813 231.....17 2... Rate Cost of Sales ..136 94...547 1.............0% Selling......378 276............. 7...............825 181..................... —Diluted ....245................016 2..............11 2....................533 235... Dividends Paid on Common 4................19 2.41 1....320 942.........324 19....800 227........157...................7)% Full-time Employees ... $ $ $ $ 60... 0.............229 137......2% 9........827 2004 4.....524 246..............998 227............28 76 ........85 1........2% Capital Additions ...............050 $ 1....722 60...637 2........4)% Year-end .. (7.032 1....................794...77 1..........................4)% Net Income Per Share: (3....817 239....132 125...............264 4..... Total Assets .....5)% 2008 2007 2006 2005 4......................965 1..... (1...602 1............839 1...............716 912........658 127.......073..100 227.874 860....256 .944......934 159......682 2....... (3........016.... Stockholders’ Equity .502....... Marketing and 6..7% Growth Net Sales .................076.............1)% —Diluted—Common Stock ........996 241.........399 574.............031 3.........088 .........520 683..133 645.....777 228.....456 262..........071 178........93 168............292 170.............896 645...............801 97..........0% (7.........93 51....2)% Weighted-Average Shares Outstanding: —Basic—Class B Stock .... Dividends Paid on Class B Stock ....672...050 230..90 167.....3% Stock .480 183........... Stockholders’ Data Outstanding Shares of Common Market Price of Common Stock at Stock and Class B Stock at (8. —Basic—Common Stock .069 13...............4)% Long-term Portion of Debt ..3% 11.24 193..064 1.20 67................104 96.....946.750 819....54 $42.....0712 6..441 559......05 1..103 13.3% 9.......037 60..... 6......137..800 12.......504 $ 39.7% 292...132....835 46.. (3...375.....................97 183........113 4..75–38......389 $ 5.....698 14..400 12.380 1....088 214.................247..97 1..............230 3......505.537 87.. 4... 16..083 189.....339 12..755 690..........25–30........19 65......................................49 56.........0% Net Income ...............585 126...313 $ 1...728 14.............25 55.............279.......315.. Net ..75– 37... 11...931 614.392 843....658 ...327 645....21 57...27 1.........449 190.675..........1% 11...985 277.......496 15..74 39.........416..............183 161.......565 856..821 248..248...................700 240.9% Business Realignment and Administrative ...........719 501..........199 1..336 4..875 90.........158 —Diluted—Class Stock ............ DepreciationNet Sales(a) ......03 56.......... 7....110 1.87 ..184 613.........87 ............ Year-end .....588 $ 35.994 1.298... Net ...115 622....................037 181.873 1.................995 198.050 60.0% 11..........405 1...............925 11.576 116. Range During Year ....................568 126.. 0............5% 181.....SIX-YEAR CONSOLIDATED FINANCIAL SUMMARY All dollar and share amounts in thousands except market price and per share statistics 5-Year 2009 Compound Summary of Operations 3...........146 $ 3..........643 20.84 10...........697 197...0206 4.709 60.944 $ 760........089 ..............2% Net Income as a Percent of Net Non-GAAP Adjusted Income as a Sales.....128 623....7576 13.....819....730 1... (0..65– 48..147 .617 311.208........998 1...........056 317......80 55.....27 44.................3)% —Basic—Class B B Stock ......

Their marketplace success makes this investment possible. they should continue to build 77 . Hershey’s continued business success depends on an engaged workforce that is able to meet the challenges of a rapidly changing global marketplace. As the company evolves and grows. strong core values and legacy of living up to the highest ethical standards enable Hershey to attract and retain highly talented employees.SUGGESTIONS AND RECOMMENDATIONS  They should focus more on their CSR priorities and goals  They should effectively control Workplace:They should strive to provide a dynamic and challenging workplace that gives employees the opportunity to develop their skills and talents.  Environment: They should minimize the negative effect on the environment while making progress and while meeting their functional requirements.Their unique heritage. sustainable sourcing and effective business operations  Community:They have made a positive impact in their communities for more than 100 years. They should concentrate on effective product design.

They should value their perspective in helping them set their CSR priorities. Hershey is an industry leader in fair and ethical business practices.on their heritage of making a difference in the communities where they live and work. By making the communities where they live and work better. Their progress on CSR prioritiesrequires coordination with their business partners. Providing an appropriate return to investors allows them the freedom to satisfy other stakeholders. their mission and values guide them in delivering high-quality products while engaging their stakeholders on the issues that matter most to them. their stakeholders are interested in how they conduct their global business. Their success depends on the trust consumers place in us.  Marketplace:They should be dedicated towards driving integrity across their entire value chain. from the ethical sourcing of raw materials to how they engage with consumers around the world. Shareholders perspective:Increasingly. they gain their 78 . As their company expands to meet the demands of the global marketplace.

Satisfied and engaged employees make better business decisions. They bring focus and resources to interest groups and nongovernmental organizations (NGOs) that help further their interests as a responsible company. They should strive to positively impact public policy and regulation through constructive engagement with regulators. 79 .support to enable their success.

which was within their long-term growth target. Their financial results and marketplace performance for the year indicate that their consumer-driven approach to core brand investment along with necessary pricing actions enable them to continue to meet their long-term financial goals. Hershey’s have essentially completed the global supply chain transformation program and have achieved their objectives. They generated strong cash flow from operations and our financial position remains solid. while also achieving strong growth in adjusted earnings per share-diluted. Hershey’s exceeded net sales targets. 80 . They increased advertising investment in our core brands in North America and in certain of our key international markets.CONCLUSION Results of my study indicated that Hershey’s have demonstrated excellent progress in a difficult economic environment. The increase was driven by price realization. Earnings per share growth exceeded our long-term objective and our North American market share increased during the year. while implementing price increases and operational efficiency improvements necessary to offset significant increases in input and employee benefits costs. Net sales increased 3. as sales volumes declined at less than expected rates due to pricing elasticity.2%.

81 .Their efforts will remain focused toward implementing our major strategic initiatives to deliver sustainable long-term growth in the evolving marketplace.

BIBLIOGRAPHY  
     http://en.wikipedia.org/wiki/preference  http://www.scribd.com/ http://www.nyse.com/ http://www.hersheys.com/ http://investing.money.msn.com/investments/company-report/ http://www.anico.com/annual_reports.dhtml/ www.annualreports.com/ http://www.fieldmuseum.org/chocolate/making.html/

82

Annexure

83

Questionnaire
PERSONAL DETAILS Name: Address: Age: Gender: Marital Status: Education: Phone number:

1.Brand Trial

a. Which of these brands have you eaten? b. What did you think of it? c. Was it for someone like you? Why or why not? d. For the brands they have not tried: Why not? 2. How often do you eat candy in the following situations? 1.Never 2. Sometimes 3. Always Studying in general On a Road Trip Cramming for a test When I’m Stressed Eating during astudy break 123 123 123 123 123
84

When I’m with others To reward myself

123 123

3. In the past 30 days, what three candy brands have you eaten the most? 1.________________ 2.__________________ 3.____________________

4. Of the brands you listed above, which one have you eaten the most? 1.__________________ 5.How much importance do you give to the following factors when you purchase a chocolate? (Tick in the desired column)

Factors

Very Important

Important

Normal

Least Important

None

Flavor/taste Price Quality Packaging Form Brand Image Color Shape Quantity

85

Which of these factors affect your purchase?  Advertisement  Suggestion from friends and relatives  Attractive Display  Doctors Advice  Brand Ambassadors 86 .6. How much are you satisfied with the following factors in your preferred chocolate? (Tick in the desired column) Factors Very Satisfied Satisfied Normal Least Satisfied Can’t Say Flavor/taste Price Quality Packaging Form Brand Image Color Shape Quantity 7.

 Ingredients 8. If you don’t like to change to the new brand. Which media of advertisement influence your purchase? Television Newspapers Brochures Hoarding Display 9. then what are the reasons for continuing to purchase the old brand? 87 .