INDUSTRY

ANALYSIS
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GROUP 4
 Brief history
In 1908 the Hershey chocolate Co. Was
incorporated, and in 1927 it was
reorganized as the Hershey Chocolate
Corporation, a publicly traded company.
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 Field Ration D
-an emergency nutrition bar that did not melt in tropical heat and was
intentionally not tasty enough to tempt soldiers to eat it as a snack.

the
1907 introduction of Kisses (large morsels)

1908 Milk Chocolate with Almonds

1925 Mr. Goodbar (with peanuts)

Krackel (with crisped rice)

1938
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 1960s
Hershey bought the manufacturer
of Reese’s Peanut Butter Cups
and two pasta businesses.
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 did you
know?

-1968
The company was renamed Hershey Foods
Corporation.
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 1905

Milton S. Hershey established the Hershey Trust

Company for the upkeep of a school for
underprivileged children; the facility eventually
became known as the Milton Hershey School.
He later donated most of his Hershey stock to
the trust company, which by the early 21st
century was the largest shareholder in the
Hershey INDUSTRY
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 “
The value of our good is not
measured by what it does, but
by the amount of good it does
to the one concerned.
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― Milton S. Hershey
 GEOGRAPHIC AREA

STUARTS DRAFT, VA
Stuarts Draft is our second largest plant in the U.S. Hershey network and primarily produces products
with peanuts.

HAZLETON, PA

Our Hazleton Plant, located in the foothills of the Pocono Mountains, produces delicious Cadbury,
Caramello and Kit Kat® products.

MEMPHIS, TN
Our manufacturing plant here produces Hershey’s gum, mints and licorice and is home of the Ice
Breakers brand.
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 SIZE OF THE
INDUSTRY
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This is where you section ends. Duplicate this set of slides as many times you need to go over all your sections.
 -The global net sales of the Hershey Company
amounted to about 8.97 billion U.S. dollars in
2021. Headquartered in Hershey, Pennsylvania, and
founded by Milton Hershey in 1894, the company
is one of the largest manufacturers of chocolate in
North America. Hershey also manufactures baked
product, including cookies and cakes, and milk
shakes and drinks. One of Hershey’s biggest
competitors Lindt & Sprüngli, a Swiss chocolate
manufacturer founded in 1845. The company also
owns brands such as Ghirarde
-Operating income: US$1.275 billion (2019)
-Net income:US$1.5 billion (2019)
-Total assets:US$8.140 billion (2019)
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 PRODUCTS AND
SERVICES
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 PRODUCTS AND SERVICES
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 TARGET MARKET
-Hershey’s Market Segment Plans
● Children and adults from the
middle and upper middle class.
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The company plans to continue supplying the needs and wants of
each market segment (Ferrell, 2010). The products are made to fill
the chocolate demands of the United States market segment
(Hershey, 2008). The products contain peanut butter, filling the wants
of the peanut butter customers. The company continues to sell its
products in popular distribution centers, especially the top-selling
convenience stores and supermarkets.
 MARKETING STRATEGIES
-Hershey’s Marketing Strategy & Marketing Mix (4Ps)
-Published by MBA Skool Team, Last Updated: January 22, 2022
-Marketing Strategy of Hershey’s analyses the brand with the
marketing mix framework which covers the 4Ps (Product, Price, Place,
Promotion). There are several marketing strategies like product
innovation, pricing approach, promotion planning etc.
-Hershey’s Product Strategy:
-The product strategy and mix in Hershey’s marketing strategy can be
explained as follows:
-Hershey’s is a popular brand which offers chocolates and other sweet
sauces & syrups. A variety of products are available in different shapes
and sizes. The conical shape of Hershey’s kisses and innovative hand
rolled packaging in some products adds to the appeal.
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Hershey’s Price/Pricing
Strategy:
Hershey’s is a premium brand and charges
higher price compared to other standard
chocolates it targets upper middleclass
urban population and foreign to Tourists.
The prices vary from $10 to $50.
Hershey’s Place & Distribution
Strategy:
Hershey’s is available globally in grocery
stores, drug stores, vending machines,
wholesale clubs, gas stations, malls,
hospitals, department stores. It can also be
purchased online from Amazon, Walmart
etc. Hershey’s has a strong distribution
network and is able to reach across many
countries worldwide.
 Hershey’s Promotion & Advertising
Strategy:

● Promotion is done through TV Ads, Magazine Ads and Billboards. Hershey’s mission is
to create delicious chocolate that could be enjoyed by everyone. Hershey’s milk booster
Ad tries to position itself as a healthy product for growing kids and a substitute to
traditional milk powders. A similar approach is followed in Hershey’s spreads Ad where a
cute child is shown playing dumb charades with his mother and its emphasised how the
almond helps in kid’s growth and can be used in daily breakfast. It has traditionally tried
to make Ads which showcase spreading happiness which is in line with the vision of its
creator Milton Hershey. The My Dad Ad campaign can be seen which shows how a
chocolate is used to strengthen the bond between a father and a son and spread happiness
in the family. The company also has a tourist attraction place in
● Pennsylvania, USA, called the Hershey’s chocolate world.
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 COMPETITORS
INFORMATION
-Mars

Hershey’s and Mars chocolate

companies have rivaled each other
since the early 20th century. This
competition, like most
competitions, brings out the best of
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both companies.
 Nestle

Nestle is a Swiss company that was founded in

1866 by Henri Nestle and was created by a
merger with Anglo-Swiss Milk Company in
1905. Their headquarters is in Vevey, Vaud,
Switzerland. Nestle is a food and drink
conglomerate, who has around 6,000 brands.
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 Ferrero

RocherFerrero Rocher (Italian

pronunciation: [ferˈrɛːro roʃˈʃe]) is a
chocolate and hazelnut
confectionery, introduced in 1979
and produced by the Italian company
Ferrero. Michele Ferrero is credited
as the product’s creator. .
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 TOBLERON

Is a Swiss chocolate brand[1]

produced in Bern.[2] Toblerone is
known for its distinctive shape, a
series of joined triangular prisms
and lettering engraved in the
chocolate.
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 FACTORS THAT AFFECT THE GROWTH OF THE INDUSTRY
SWOT ANALYSIS

STRENTHS WEAKNESSE OPPORTUNITIE THREATS

S S
● Strong Brand ● Need more investment in new ● New environmental ● Rising raw material can
Portfolio technologies. policies pose a threat to the
● Good Returns on ● There are gaps in the product ● New customers from Hershey Company
Capital Expenditure range sold by the company. online channel profitability.
● Strong dealer ● The marketing of the products ● Lower inflation rate ● The company can face
community left a lot to be desired. ● New trends in the lawsuits in various
● Strong Free Cash ● Not highly successful at consumer behavior markets given
Flow integrating firms with ● Intense competition
different work culture. ● Changing consumer
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buying behavior
 FINANCIA ASPECTS
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 thank you!
Do you have
any questions?
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