Amity School of Business

Amity University
Uttar Pradesh
Weekly Progress Report

Topic: HERSHEY & It’s marketing

Objectives of the week:

 To know about the company Hershey.

 To analyse the marketing strategies of the company.
Work Done/Objectives Achieved:

About the company:

Hershey was founded in 1899 when Milton S. Hershey has opened his shop
in American company selling chocolate and cocoa with other glossary. In
1896 Milton built a milk processing plant so that chocolate candies could be
processed with a refined recipe.
Its corporate office is in Derry Township, U.S.. Hershey is one of the largest
chocolate manufacturing company in the world. In 1900, they introduced
chocolate for consumption with very attractive packaging, pursued by
different types of Hershey's bars such as Hershey's Milk Chocolate with
Almonds, presented in 1908. The most widely known and top grossing
product Hershey’s milk chocolate was launched in 1905 to compete with the
leading brands of Swiss milk chocolates & Cadbury. By 1913, Hershey’s
milk chocolate had become the company's bestseller. After a few years it
gained the recognition as a leading chocolate product.
Hershey India is a food product company dealing in
 Cookies
 Cakes
 Milkshakes
 Drinks

Hershey is the market leader in Chocolate Industry with a market share of

7.1 percent.
Some of their favorite products are
Hershey Special Dark, Hershey ‘cookies n crème’, Hershey gold bar, etc.
This project shows some research on current marketing strategy used by
Hershey in Indian market.
I have also try to find some of Strength, Weakness, Opportunity and Threats
of the Hershey for Indian chocolate industry.

SWOT Analysis of Hershey

SWOT Analysis is the method to evaluate the Strength, Weakness,

Opportunity and Threats involved in an organization. It includes identifying
the internal and external factors that are favorable or unfavorable to achieve
the objectives of the organization.

Strengths and Weakness are frequently internally-related, while

Opportunities and Threats commonly focus on environmental placement.

 Strengths: characteristics of the business or project that give it an

advantage over others.
 Weaknesses: characteristics of the business that place the business or
project at a disadvantage relative to others.
 Opportunities: elements in the environment that the business or project
could exploit to its advantage.
 Threats: elements in the environment that could cause trouble for the
business or project.
Strength:

 Largest global confectionery manufacturer

 Market leaders in three sectors: Chocolates, Confectionery and food
drinks
 Cost of Production is low due to economic of scale which leads to
higher profit and better market penetration.
 High financial strength.
 Strong brand name and leader in innovations.
 Strong Brand Loyalty: Hershey is a part of an impulse buying
industry, confectionery. In such an industry, customers tend to switch
brands at zero cost and thus maintaining customer loyalty is difficult.
But, Hershey has been able to maintain strong brand loyalty.
 Variety in offerings: Hershey is present in 4 different variants which
are Chocolate, Fruit & Nut, Roast Almond and Crackle. This attracts a
different set of consumers and helps in increasing revenues.
Weakness:

 Poor technology in India as compared to other nations

 Limited key products as it is depended only on chocolates and
beverage market compared to other competitors.
 Child Labor.
 Hershey to show such ignorance because such infected chocolates
should not leave quality control at all. Thus quality control needs to be
strengthened.
 It involved child in its operations.

Opportunities: (What is a weakness can become an opportunity)

 Growing middle class and growing urban population.

 Increasing gifts cultures.
 Substitute to "Mithais (sweets)" with higher calories/cholesterol.
 Opportunity increases with increase in market shares by acquisition.
 Transfer production to low cost countries where labour cost and raw
material will be cheap.
 Introduction of new products with low fats.
  Hershey dominates various markets around the world in the
confectionery segment. Being an impulse market, it is very important
to keep engaging customers and roll out interesting advertisements.

Threats:

 Due to highest brand equity and low cost, it is successful in India.

 Globalization will bring in better brands for upper end of the market.
 High fats and calories in the products of Hershey may reduce the
demand of the consumers who are conscious of nutrition and healthier
lifestyles.
 Competitive pressure from other national and global suppliers Eg.
Nestle, Amul

Any Ad on/deficits:

In 2015 and 2018, American consumers recorded two separate class activity
lawsuits against The Hershey Company.

Plan/Objectives for next week:

 Study of Marketing Mix of Hershey
 Comparison between Hershey & Nestle