This action might not be possible to undo. Are you sure you want to continue?
New Product Proposal
Rebecca Buddingh, Robyn Wolfish, Stephanie Carpenter, Stanley Ho, Winnie Xu
Hershey’s is the only chocolate candy brand in the United States that offers low price, convenient, multipurpose products uniquely associated with feelings of nostalgia and the classic American dream.
Emotional Modifier Hershey’s Cheerful Descriptive Modifier American Classic Brand Function Chocolate Product
Positive Associations Negative Associations
PERCEPTUAL MAP Convenience versus Quality Note: The ratings for Hershey’s and the competing brands are based strictly on quantitative survey findings Quality Cheerfulness .
Fun .American .CONSUMER PROFILE The typical Hershey’s consumer is: .Young and/or .Youthful .Frugal .Middle Class .Family-oriented .Conservative .Loves chocolate .Happy .
heritage brand -.Enjoyed by people of all ages Consistent quality Associated with holidays (ie: Halloween.Variety of types Sweet and indulgent -. PA Sold in different types of retailers -.POINTS OF PARITY ----Used for snacking or baking -.Associated with S’mores Nostalgic.Identifiable by Hershey Kisses Low price enables daily consumption -.Entertainment & resorts . Valentine’s Day) POINTS OF DIFFERENCE ----“American” image -.Hershey.
Consumer Judgments: Brand Performance: Consumers indicate that they purchase Hershey’s chocolate because of its low price.CBBE MODEL Strengths: Brand Salience: Hershey’s is extremely well-known in the chocolate category and the favorite chocolate brand for about 1/5 of consumers. associations with holidays and an exceptionally high sense of nostalgia and history. Levels of happiness and satisfaction are raised slightly after consuming Hershey’s products. easiness of purchase (available in grocery stores. Brand Imagery: Hershey’s fails to evoke strong feelings among consumers. convenience. superstores. snacking). but considered “a quick fix for a chocolate craving. etc. Hershey’s is not usually preferred when premium chocolate brands are available. they do not actively engage with the brand or recommend it to others. they question the quality of the products. Weaknesses: Though consumers trust Hershey’s as a company. Hershey’s has a 75% likelihood of repeat purchase among respondents. Consumer Feelings: Hershey’s has a wide variety of usage situations (S’mores. but does not compare to competitors in other feeling categories. Additionally. Though Hershey’s consumers exhibit some behavior loyalty.) and large variety of products.” as one respondent said. cooking. Consumer Brand Resonance: . convenience stores.
CONCEPT # 1 Bisquick Pancake Mix with Hershey’s Chocolate Chips “Love chocolate chip pancakes? Now you can make your breakfast experience that much easier with your favorite pancake mix and Hershey’s chocolate chips in one convenient box.” .
.00 BRANDING STRATEGY Branding Strategy: Modified Ingredient Branding Extension Strategies: Product that contains the brand’s distinctive Extension Classification: Category Extension ingredient.Traditional Bisquick box and product -Will include 6 oz bag of Hershey’s semisweet chocolate chips for consumer to add if they choose -Bisquick box will include Hershey’s logo .CONCEPT STATEMENT Description: A new Bisquick product with Hershey’s chocolate chips for chocolate lovers everywhere.Will be sold next to traditional Bisquick in the baking aisle at grocery stores Suggested Price: $ 5. Product that capitalizes on the firm’s perceived expertise .
Shoppers want to spend minimal time at grocery store .Increase in manufacturing partnerships between corporations with different expertise.Discretionary income available for middle and upper-middle class to afford the luxury of convenience easy-to-make products ECONOMIC . working parents results in little time to make breakfast SOCIAL Quick and pancakes that simplify the grocery shopping experience and capitalize on an existing usage trend .PRODUCT OPPORTUNITY GAP . especially within the baking category TECHNOLOGY .Increase in single.Shoppers looking for “bundled” deals in current economy .Increase of in-home breakfast preparation .
recognizing the shared equity. Instant Relevant Points of Difference . One respondent said.CONSUMER INSIGHT Reality Consumers in focus groups were surprised Hershey’s hadn’t already created this relationship.Quick.” Thus.Breakfast . Therefore. they would begin to associate the two brands with each other. Points of Parity .Baking item . even if consumers didn’t purchase the Bisquick/Hershey’s mix.Easy-to-make pancakes . it would provide consumers with an incentive to use Hershey’s chocolate chips over other brands. the product seems realistic for the target market. Because Hershey’s would be the first chocolate brand to partner with a pancake mix. “I wouldn’t be surprised if Hershey’s actually did this.13 ratings on a scale of 5) because of its convenience and use to make large quantities. Survey respondents and focus group participants liked this product (4.First partnership of its kind Resonate Reaction .Pre-packaged chocolate chip pancakes . I don’t know why they haven’t already. This extension capitalizes on an existing trend – using chocolate chips in pancakes to add flavor and unique taste.
Can be purchased in grocery stores like other Hershey’s products. Reinforces core brand association of classic and family products Strong Moderate: Gives consumers a reason to use Hershey’s chocolate chips when making pancakes. the product capitalizes on the perceived expertise. . First chocolate chip/pancake mix combination on the market. Creates additional usage occasions for Hershey's chocolate. quality. but may not have a strong enough impact to change Hershey’s brand perceptions because the product is in a new category.35 (on a scale of 1 to 5) as a product they would trust from the Hershey’s brand.29 “tasty” rating (on a scale of 1 to 5) because of their previous experiences or associations with Hershey’s chocolate. Survey respondents gave the product a 4. In addition. convenience.3 FACTOR MODEL Salience Favorability Focus group respondents were aware of the transfer of the following associations to the new product: Semi-sweet chocolate. Strengthens consumer judgment of Hershey’s market leadership due to omnipresence in grocery stores Survey respondents ranked product a 4 (on a scale of 1 to 5) for how well it “fit” with the Hershey’s brand. traditional. New usage situation for Hershey’s chocolate . Reinforces nostalgic quality of Hershey’s chocolate as focus group participants recounted on childhood memories when they saw the product Hershey’s chocolate has greater purchase consideration as 72% of survey respondents would definitely or probably buy the product. Reinforces the use of Hershey’s chocolate as an ingredient. family-oriented. reliability and nostalgia of Hershey’s. easy-to-use Survey respondents ranked product a 4.breakfast Uniqueness 4 FACTOR MODEL Compelling Relevant Consistent Entrance in breakfast category allows new usage situations. cooking/baking usage.
” “Never been done. smart!” IDENTITY Point in time Sense of place Personality .” “I love chocolate chip pancakes. Easy to make in bulk.VALUE OPPORTUNITY CHART Low EMOTION Adventure Independence Medium High IMPACT Social Environmental Low Medium High Security Sensuality Confidence Power ERGONOMICS Comfort Safety CORE TECHNOLOGY Reliable Enabling QUALITY Craftsmanship Durability OVERALL Profit Brand Ease of Use AESTHETICS Visual Auditory Tactile Olfactory Taste Extension Focus group participants said: “It is instant and quick.
PROS AND CONS Pros .All respondents preferred Bisquick to other instant pancake mix brands .Consumers can purchase their own chocolate chips. nostalgic treat – much like Hershey’s chocolate products .Respondents said product was slightly unoriginal.Remain silent about health risk. and may not be motivated to purchase the product unless the price was low or a better value than purchasing the two ingredients separately . quick and made it easy to produce large quantities Cons . high caloric value.Market product as something that is unique because it simplifies the shopping process for chocolate chip pancakes .Respondents were disillusioned by high caloric value RECOMMENDATIONS . feel similar products already exist . The product is not intended to be healthy and should be advertised as a special.61% of respondents said a partnership between Hershey’s and Bisquick is a “great idea” .Respondents felt the product was instant.
Hershey’s CocoaTo-Go pleases fans of hot chocolate and chocolate milk. No need to hassle with the big container of chocolate powder or syrup.CONCEPT # 2 Hershey’s Cocoa-To-Go “A portable alternative to the bulky hot chocolate packages offered by competitors such as Swiss Miss and Nestlé. And with dual uses.” .
Each box of Cocoa-To-Go will contain 10 servings -Portability will allow consumers to bring the product with them to school. Just add water or milk and you’re good-to-go! .00 .CONCEPT STATEMENT Description: High quality chocolate powder for quick and easy hot cocoa or chocolate milk. work. Product that capitalizes on the firms perceived expertise . Product that contains Extension Classification: Line Extension the brand’s distinctive ingredient. in a slender tube .5 oz of Hershey’s unsweetened chocolate cocoa and sugar mix. restaurants Suggested Price: $ 3.1.Will be sold in grocery stores in the coffee/tea aisle and in an end display near the milk BRANDING STRATEGY Branding Strategy: Modification of Existing Brand Extension Strategies: Same product in a different form.
sleek food packaging TECHNOLOGY .Trend of 2-in-1 products SOCIAL Multi-use chocolate powder in a portable.PRODUCT OPPORTUNITY GAP . Nescafé.Increase in discretionary income to purchase higher-end drink mixes (ie: Starbucks VIA) . slender package that can be used to make hot cocoa or chocolate milk .Increase in manufacturing abilities to produce slender. Tasters Choice Instant Coffee) .Decrease in amount of leisure time to enjoy hot or cold drinks at home . as the product’s main ingredient is already offered by the parent brand ECONOMIC .Low material costs.Trend of on-the-go products .Capitalizes on success of other packaged powder drinks (ie: Crystal Light.
as they would merely consider this endeavor as a “copy” of what other brands are doing. it would not help the Hershey’s brand as a whole. According to one participant. Because there are already many brands using similar packaging.CONSUMER INSIGHT Reality The majority of focus group respondents said they could see this being something Hershey’s would market. Points of Parity . “I don’t think the exiting Swiss Miss packaging is bulky or tastes any worse than Hershey’s.Stick-shaped package .Can be combined with milk or water Relevant Points of Difference . “People already use Hershey’s baking powder to make hot chocolate.Cocoa Mix .” one person said. Consumers generally responded that they liked the portability of the product. but that did not necessarily make them want to purchase the product.Pre-portioned Resonate Reaction .Hot Drinks . but do not see a need for the slender packaging.Chocolate Milk Mix . but were not motivated enough to purchase the product.Can be used on-the-go . Respondents said they enjoy hot cocoa. Thus. Only 20% of consumers said they would definitely purchase Cocoa-To-Go. why not make it more convenient?” Most participants understood why Hershey’s would want to pursue a 2-in-1 product. the upgrade for Hershey’s would not resonate with consumers.
easy-to-use.20 (on a s cale of 1 to 5) by survey respondents. Supports Hershey’s brand association as tasty.16 (on a scale of 1 to 5) as a product they would trust from the Hershey’s brand. In addition.88 (on a scale of 1 to 5) for how well it “fit” with the Hershey’s brand. multiple uses and good taste of Hershey’s products. but the product capitalizes on the option to make either drink from one tube. Survey respondents ranked product a 4. the product strengthens the reliability of Hershey’s. The product has low purchase consideration as only 20% of survey respondents would definitely purchase it. giving it a neutral rating of 3.16 (on a scale of 1 to 5) as something that seemed like it would taste good.04 (on a scale of 1 to 5). Reinforces cross-generational appeal of Hershey’s. Appeals to moms. Innovative. Intended for single use with pre-portioned. Cocoa-To-Go capitalizes on the perceived expertise. as survey respondents rated product a 4. Survey respondents ranked product a 3. but would not necessarily change the way consumers feel about the Hershey’s brand. children and others.3 FACTOR MODEL Salience Favorability Uniqueness Focus group respondents were aware of the transfer of the following associations to the new product: Childhood. Can be used for hot chocolate and chocolate milk 4 FACTOR MODEL Compelling Relevant Portability allows for new usage situations. Consistent Strong . However. The use of cocoa powder to make hot chocolate and chocolate milk is already a function of Hershey’s. Survey respondents said the product would not change their feelings toward the Hershey’s brand. Respondents were aware that Hershey’s products can currently be used to make hot chocolate or chocolate milk. sleek packaging.. college students. Allows Hershey’s to be innovative with the packaging of its products. convenient and traditional. Moderate: The product would strengthen the consideration of Hershey’s for hot chocolate and chocolate milk. as it was given an average rating of 4.
VALUE OPPORTUNITY CHART Low EMOTION Adventure Independence Medium High IMPACT Social Environmental Low Medium High Security Sensuality Confidence Power ERGONOMICS Comfort Safety CORE TECHNOLOGY Reliable Enabling QUALITY Craftsmanship Durability OVERALL Profit Brand Ease of Use AESTHETICS Visual Auditory Tactile Olfactory Taste Extension Focus group participants said: “Portable. and easy” “Inventive” “I love hot cocoa and things that are portable” IDENTITY Point in time Sense of place Personality . fast.
It has different packaging and a unique look in comparison to other hot chocolate and chocolate milk products Cons . there is not a big enough differentiation RECOMMENDATIONS .Many competitors .Finding hot water or milk on-the-go is not always a simple task .The product may be too similar to regular hot chocolate. has likeable ingredients and would be effortless to carry .Respondents said the product is convenient.Some respondents felt that existing hot chocolate packets are easy enough to transport so there is no need for new packaging .This product ranked higher than the other new Hershey’s products for being the easiest to use . chocolate milk) and focus solely on a hot cocoa product or a chocolate milk product .Drop the dual use (hot chocolate.PROS AND CONS Pros .Stress the low price point that is similar to competitors when marketing the product .Concern that the price would be too high .Develop another point of difference between Hershey’s Cocoa-To-Go and competitors .
combine Hershey’s chocolate with miniature marshmallows and graham cracker crumbs for an easy-to-make dessert.CONCEPT # 3 Betty Crocker Supreme Bars – S’mores “Recreate the S’mores taste you love without the campfire. perfect for any time of the year!” . Betty Crocker Supreme Bars—S’mores.
Packaged in Betty Crocker Supreme Bars box .Box comes with: .1 package of miniature marshmallows . .Water.CONCEPT STATEMENT Description: Betty Crocker’s newest addition to the Supreme Bars line.5 Hershey's Milk Chocolate bars . Product that capitalizes on the firm’s perceived expertise . cake and bar mixes Suggested Price: $ 3. graham crackers and marshmallows. vegetable oil .Sold in baking aisle next to cookie.Additional ingredients needed: .1 packet of squeezable chocolate for decorative finish .1 package of graham cracker dough mix .00 BRANDING STRATEGY Branding Strategy: Ingredient Sub-Brand Extension Strategies: Product that contains the brand’s distinctive Extension Classification: Line Extension ingredient. An easy-to-make dessert creation with Hershey’s rich milk chocolate. 1 egg.
PRODUCT OPPORTUNITY GAP .Trend of baking desserts from boxed mixes (ie: Betty Crocker.) due to less free time to make baked goods from scratch An easy-to-make dessert .Value-priced grocery products appeal to the masses .Low material costs by using ingredients already produced by Betty Crocker and Hershey’s ECONOMIC Hershey’s association with the strength of one of America’s favorite baking brands. Betty Crocker .Increased desire for more that leverages a common occasions to eat S’mores SOCIAL . Duncan Hines. etc.High-quality manufacturing abilities of Betty Crocker TECHNOLOGY .
Points of Difference . Those who cooked said they would definitely want to bake a dessert that resembled S’mores.” therefore this product would help strengthen one of Hershey’s key usage associations. Points of Parity . This product had the highest likeability rating on the survey. Consumers love the idea of creating this dessert in the comfort of their own kitchen. versus the usual campfire setting which isn’t a feasible year-round location. “Hershey’s is often associated with S’mores and Betty Crocker is always coming out with new mixes.Entertaining usage Relevant Respondents indicated that they enjoy eating S’mores and would like more opportunities to do so.Dessert .Baking product .CONSUMER INSIGHT Reality None of the eight focus group participants said they would be surprised if Hershey’s and Betty Crocker actually created this product.” one respondent said. This product evoked feelings of nostalgia among focus group participants.S’mores flavor .Creates nostalgia through sense of place Resonate Reaction .Easy to make . Many said they already thought of Hershey’s when they heard the word “S’more.
Use of S’mores for entertaining purposes. and makes S’mores a more useful and common cooking practice in an additional location. meaning there is a high chance that they would venture to purchase this product as well. tasty.24 (on a scale of 1 to 5) for how well it “fit” with the Hershey’s brand. Survey respondents ranked product a 4. as survey respondents rated the product a 4. Transfer location of S’mores-making from the campfire to the kitchen 4 FACTOR MODEL Compelling Relevant Consistent Strong As a baking product. Supports Hershey’s brand associations of tastiness. the popularity of Hershey’s chocolate for making S’mores and its ability to be used by chocolate lovers in any market segment. A majority of participants said they only use Hershey’s chocolate when making S’mores. tradition. survey respondents rated the product a 4.3 FACTOR MODEL Salience Favorability Uniqueness Focus group respondents were aware of the transfer of the following associations to the new product: S’mores. the product capitalizes on the perceived expertise of both Hershey’s and Betty Crocker. Betty Crocker Suprem e Bars – S’mores capitalizes on a strong and unique association of Hershey’s. classic.16 (on a scale of 1 to 5) as something that would make them happy. Additionally. In addition.4 (on a scale of 1 to 5) as something that seemed like it would taste good. which is already received well among consumers . Survey respondents ranked product a 4. Strong: The product extends from two of Hershey’s points of strength – S’mores association and taste – and has the potential to strengthen the relationship between Betty Crocker and Hershey’s. The product strengthens the existing relationship between Hershey’s and Betty Crocker and reinforces nostalgic associations of bo th brands. family activity. affordable. 80% of survey respondents already purchase ingredient branded Betty Crocker/Hershey’s products.36 (on a scale of 1 to 5) as a product they would trust from the Hershey’s brand. Betty Crocker Supreme Bars – S’mores allows for new usage occasions and locations of Hershey’s products. heritage.
” IDENTITY Point in time Sense of place Personality . they’re easy to make.” “It’s easy and it makes me nostalgic.VALUE OPPORTUNITY CHART Low EMOTION Adventure Independence Medium High IMPACT Social Environmental Low Medium High Security Sensuality Confidence Power ERGONOMICS Comfort Safety CORE TECHNOLOGY Reliable Enabling QUALITY Craftsmanship Durability OVERALL Profit Brand Ease of Use AESTHETICS Visual Auditory Tactile Olfactory Taste Extension Focus group participants said: “I like bars.” “I love these.
Some focus group participants would rather make regular.PROS AND CONS Pros .The product creates nostalgia because it is something respondents associated with memories of their childhood . authentic S’mores RECOMMENDATIONS .This product appeared difficult to make to some respondents .Focus group participants received this product more favorably than the other two Cons .Market the product as something that would be extremely easy to bake. to reduce fears of those who are not experienced with baking .Makes it easy to recreate the traditional S’mores treat through the new usage location .This product was rated higher than the other new Hershey’s products in tastiness .
800 units Revenue Per Unit: $2.35 per box Brand Awareness: 50% Availability: 40% Trial: 42% Repeat: 15% Market Share Percentage: 1.38 Note: See Appendix for calculations .772.29% Projected Annual Category Sales: 12.4% Market Share Percentage: .26% Projected Annual Category Sales: 8.35 per box Annual Sales Forecast: $48.439.200 units Revenue Per Unit: $1.54% Brand Awareness: 50% Availability: 40% Trial: 23% Repeat: 6.658.317.72 Annual Sales Forecast: $634.25 per box Projected Annual Category Sales: 37.699.600 units Revenue Per Unit: $1.FORECASTED SALES Bisquick with Chocolate Chips Purchase Intent: Definitely Buy: 28% Probably Buy: 44% Cocoa-To-Go Purchase Intent: Definitely Buy: 20% Probably Buy: 20% Betty Crocker S’mores Purchase Intent: Definitely Buy: 44% Probably Buy: 20% −−−−−−−−−−−−−−−−−−− Adjusted Intent: 37% Adjusted Intent: 23% −−−−−−−−−−−−−−−−−−− −−−−−−−−−−−−−−−−−−− Adjusted Intent: 42% Brand Awareness: 50% Availability: 40% Trial: 37% Repeat: 7.4% Market Share Percentage: .860.47 Annual Sales Forecast: $107.
reliability.Highest value ratings of the three products .The most profitable of the products presented .Respondents reacted neutrally to this product .There is not enough of a difference between this product and competing products . uniqueness.Survey respondents liked the partnership between Bisquick and Hershey’s.Projected sales forecast is very low Recommendation: Move Forward .Ranked highest in survey in likeability.Combines a well-known Hershey’s association (S’mores) with an easy-to-make dessert item .Focus group participants did not feel this idea was unique .Opportunity does not resonate with the consumers’ needs and desires .Not a very profitable endeavor Recommendation: Drop .OVERALL RECOMMENDATIONS Recommendation: Drop . but still intended on purchasing chocolate chips separately . quality and other categories .Highest likelihood-to-purchase percentage .Would be difficult to establish Hershey’s in the breakfast-food category .Low likelihood-to-purchase percentages .
Easily accessible to many people through placement strategies .LAUNCH PROGRAM Product Tangible Benefits: . sight. smell.Leverages secondary equity from Betty Crocker by using the same logo and packaging as the existing Betty Crocker baking mixes Intangible Benefits: .Ranked extremely high by survey respondents in reliability and trustworthiness .Emotional relevance is established through nostalgia and sense of place associated with Hershey’s .Evokes strong sense of taste.Appropriate for entertaining at any given time of year . almost all focus group members said the packaging alone made them hungry .High quality associations with Betty Crocker and Hershey’s .Can be easily targeted toward children or adults .
at retailers like grocery stores .Pricing should reflect existing pricing on Betty Crocker products.Promotions .Quantity Discounts: Offer deals to retailers for ordering a certain number for their stores Pull Strategies: .Product should follow the value pricing model Placement .Coupons .Mass placement recommended to be consistent with brand’s previous efforts .Distribute through indirect channels. thus we suggest a retail price of $3.00 Push Strategies: .LAUNCH PROGRAM Price .Advertising .Cooperative Advertising: Pay for placement in grocery store circulars .
Offer coupons .Television Commercials: Create a TV spot emphasizing the sense of nostalgia associated with product.Print Advertisements: Place in family.Point of Purchase .Advertising . and the same delicious treat without the need for a campfire . parent and cooking magazines.Sales Promotion .Create a point-of-purchase display in the baking aisle to draw attention to the new product.MARKET ENTRY STRATEGY Promotion IMC Plan: . as well as local newspaper inserts . Would work well because Betty Crocker already has one of the largest presences in the baking aisle .“2 for the price of 1” deals to grocery store shoppers .