Market

Research
on Hershey’s

TEAM D11
Ariz Anan(043)
Jeby Raja Jesura T (092)
Piyush Keshri (144)
Saumyashree Das (194)
Vigneshwar Hegde(241)
 Executive summary
A study on Hershey’s chocolate market was
carried out among the population of the age
group 18 years above to assess the preferences The study was done in two phases.
and to evaluate the market penetration.
1)The Qualitative phase used focus groups to
understand the nature of the market

2)In the Quantitative phase, a questionnaire

was developed and administered to 101 people.

Respondent Profile

The sample comprised of 101 people out of

which 52 were male and 46 were females and the
remaining came under others category.

64 of them were below age 25.

 Executive summary(Continued)
• Awareness Trial And Usage

Major brands Cadbury has a larger

Cadbury and Nestle have
close to 100 per cent
awareness while others
have low levels of
awareness.
share(75%) compared to
The two major brands – other two major brands
Cadbury & Nestle have Nestle(19%) & remaining
close to 95% trial.. 6%( home made &
others) .

The two major brands – On average each

Cadbury & Nestle have Every person has tried 3
respondent is aware of 4
close to 95% trial. brands on average
to 5 brands.
 Executive summary(continued)
• Benefits Sought and Benefit Segmentation
In cluster 2 (20 people)
The most important prefer chocolate because of
attribute is “quick their love for chocolate,
energy source” with an because it is a mood
average score of 4.08 on booster, the variety and
a 1 to 5 importance cause it is a quick energy
scale and the least In cluster 1 (32 people) source
important attribute is prefer chocolate just
packaging 3.3. because of their love for
chocolate, it is a mood
booster, the health benefits,
cause it is a quick energy
source and for the
packaging/ease of gifting.
 Executive summary-Continued
• Competitive Positioning Of Brands

Hershey’s is considered Nestle is considered Cadbury’s is generally

Trendy and Magical Innocent and Outdated recommended.

Price, Brand & Packaging:

Based on the data, Hershey Nestle, on the other hand, These load separately and
appears to have a slight edge in seems to excel in terms of appear less influential than
terms of company factors. customer factors. taste and mood

Ferro Rocher is considered Taste, Mood & Health Benefits:

Popular, Trustworthy, Efficient, These factors load highly together,
Friendly, Convenient and indicating they are likely the most
Reliable important for customers.
Section 1:
Profile of the Respondents
GENDER PROFILE
Age Profile
SECTION- 2
Purchase and
Usage Habits
 Usage- Is chocolate really
preferred

•Indians generally prefer their homemade sweets

over any chocolate or desserts of fruits to be in
included as a part of their daily sweet intake.
Place of purchase
• Indians generally prefer buying their
chocolates from the local shops.
• Hershey’s not being available in local shops
with this finding substantiates our
assumption that Hershey’s is not sold much
in India as their availability is pretty low.
We buy chocolate for !!!

•An individual buys chocolate just for the taste of

it as per data unlike how we assumed that price,
packaging and brands matter.
Section – 3:
Benefit Segmentation
 Tabulation(Brand Vs Gender)

• The derivation from this data could be

that Cadbury is the most preferred
brand among both males and females.
Nestle is the second most preferred
brand, while homemade and other
brands are less preferred
Tabulation(Brand Vs Age)

•Cadbury is the most preferred brand

among all age groups. Nestle is the second
most preferred brand, while homemade
and other brands are less preferred.
 CHI-SQUARE
TEST(BRAND VS
GENDER)
Our null hypothesis for this analysis is that “There is no
association between brand preference and age group”.
Based on these results, all p-values (Asymptotic
Significance) for the tests are greater than the common alpha
level of 0.05. This suggests that we would not reject the null
hypothesis based on this data, indicating that there’s no
significant association between the variables tested.
CHI-SQUARE TEST(Brand
Vs Age)
Our null hypothesis for this Chi-Square Test is that there
is no association between brand preference and gender.
Based on these results, all p-values (Asymptotic
Significance) for the tests are greater than the common
alpha level of 0.05. This suggests that we would not reject
the null hypothesis based on this data, indicating that
there’s no significant association between brand
preference and gender.
ANOVA (Units
consumed Vs age)

•The null hypothesis for this ANOVA test is

that age does not affect the units consumed.
The alternative hypothesis is that age does
affect the units consumed.

•Based on the ANOVA table, the F statistic is

very small (.011) and the p-value (Sig.) is
much larger than the common alpha level
of .05 (.917). This suggests that we would
not reject the null hypothesis based on this
data, indicating that there’s no significant
effect of age on the units consumed.
 T-test (units consumed Vs Gender)

The null hypothesis for this T-Test is that there is no significant difference in the units consumed
between the two age groups. The alternative hypothesis is that there is a significant difference in
the units consumed between the two age groups.

Looking at the T-Test for Equality of Means, the p-value is also greater than the common alpha
level of 0.05 (.488 > .05). This suggests that we would not reject the null hypothesis based on
this data, indicating that there’s no significant difference in the units consumed between the two
age groups.
Cluster Analysis(Name and Attributes

1
There are two prominent clusters that have
been identified from this dendrogram, that
we used to further explore and use in our
K- Mean analysis
2
Analysis: K- Mean

In cluster 1 (32 people) prefer

chocolate just because of their love for
chocolate, it is a mood booster, the
health benefits, cause it is a quick
energy source and for the
packaging/ease of gifting.

In cluster 2 (20 people) prefer

chocolate because of their love for
chocolate, because it is a mood
booster, the variety and cause it is a
quick energy source.
Section 4:
Brand Positioning
Mean Ratings of •In the analysis of brand positioning using the snake chart, it’s observed that
Hershey and Nestle have distinct strengths in different areas.
Brands •When it comes to pricing, Nestle appears to have a slight edge over Hershey.
•On the other hand, Hershey outperforms Nestle in the area of packaging
•And In the remaining attributes there is not much difference
 Snake chart

Excellent 1
Snake Chart
3.5
Very Good 2

3
Good 3

Somewhat 4 2.5

Poor 5
2

1.5
According to above ratings the lower
the mean it is better 1

0.5

Hershey Nestle Total

 FACTOR
ANALYSIS
 Rotated Component Matrixa
Component

1 2
. [Quick energy source] 0.816 0.27
Customer Factors: . [Health benefits] 0.8 0.211
•Taste, Mood & Health Benefits: These factors load . [Love for chocolate] 0.787 0.289
highly together, indicating they are likely the most . [Mood booster] 0.783 0.412
important for customers.
. [Taste] 0.741 0.432
Company Factors:
•Price, Brand & Packaging: These load separately . [Variety] 0.679 0.513
and appear less influential than taste and mood . [Price] 0.168 0.855
Key Takeaways: . [Brand] 0.454 0.799
•When it comes to chocolate bars, taste is king . [Packaging] 0.495 0.66
according to this data. Manufacturers looking to win Extraction Method: Principal Component Analysis.
over customers should focus on developing products
with superior taste. Rotation Method: Varimax with Kaiser Normalization.

a Rotation converged in 3
iterations.
 1.00
company factors

. [Price], [Y VALUE]
. [Brand], [Y VALUE]
0.80

. [Packaging], [Y VALUE]

0.60
. [Variety], [Y VALUE]
. [Taste], [Y VALUE] . [Mood booster], [Y VALUE]

0.40
. [Quick energy source], [Y
VALUE]

. [Love for chocolate], [Y

0.20 VALUE]

Hershey, [Y VALUE] . [Health benefits ], [Y VALUE]

-
(0.20) - 0.20 0.40 0.60 0.80 1.00

Nestle, [Y VALUE]
(0.20)
Brand positioning company
vs customer factors

•Based on the data, Hershey appears to have

a slight edge in terms of company factors.
•Nestle, on the other hand, seems to excel in
terms of customer factors.
Section 5:
Brand Personality
Mapping
Brand Vs Attributes

Analysis:
1. Hershey’s is considered Trendy and Magical
2. Ferro Rocher is considered Popular, Trustworthy,
Efficient, Friendly, Convenient and Reliable
3. Nestle is considered Innocent and Outdated
4. Cadbury’s is generally recommended.
Age vs Brand

Analysis
• People in the 18-24 age group prefer Nestle’s and Ferro.
• People in the 45+ age group prefer Cadbury’s.
• People in the 25-34 age group prefer Hershey’s to some
extent.
• People in 35-44 years old are not really bothered with
their chocolate brand
Brand vs Consumption

Analysis
• Cadbury’s is consumed either few times a month
•Hershey’s is consumed once a week or several times a
week.

The whole conclusion is though people are not very keen on

having Hershey’s they like to keep the tag that they eat
Hershey’s.
 6
KANO Analysis

Delighters

4
Satisfaction Level

2
Satisfyier

0
0 1 2 3 4 5 6 7 8 9 10 11
Must havers
Functinality
Analysis for KANO

• In KANO Analysis we have the data for the satisfaction level of consumers on the attributes of taste, love for
chocolate, mood booster, variety, health benefits, etc. and functionality which tells us the product life cycle.
• In the chart we have taken the scatter plot and we have different segments which identify different things.
• We have delighters, satisfiers, and must havers in KATO Analysis.
• Delighters – They have some unique properties which differentiate them from others. E.g.: iPhone cooks food.
• Satisfiers – They have been there for a long time and fulfil the basic requirements that are required. E.g.: the
iPhone has a camera.
• Must havers – They are the things without which the product cannot be produced.
• Love for chocolate and mood busters are the attributes that fall under Delighters.
• Rest all fall under the satisfier category.
Section 6:
Hypothesis & Findings
Hypothesis

•Null Hypothesis: Despite being a younger and less diversified brand in India,
Hershey's brand perception, product portfolio, and market performance are not
significantly different from the more established and diversified brand Nestle in the
Indian chocolate market.

Alternate Hypothesis: As a relatively young brand with limited product diversification

in India, Hershey's faces significant challenges in establishing a strong foothold in the
Indian chocolate market compared to the more entrenched and diversified brand
Nestle, leading to poorer brand perception, narrower product acceptance, and weaker
overall market performance for Hershey's.
 Brand Preference: Hershey's lags behind Cadbury and Nestle in overall
brand preference across age groups and genders in India.

Key Findings: Distribution Challenges: Limited availability and accessibility of Hershey's

products in local retail channels, which are the primary purchase points, is
hampering its sales and brand awareness.

Brand Personality: While Hershey's scores well on traits like being trendy
and magical, it underperforms compared to Nestle on critical customer-centric
factors such as trust, reliability, and efficiency.

Consumption Patterns: Frequency of consuming Hershey's chocolates seems

lower than competing brands, with no significant variations across
demographics.

Attribute Associations: Indian consumers do not strongly associate Hershey's

with attributes like popularity, trustworthiness, and reliability, which are
crucial for brand loyalty.

Competitive Positioning: The analysis suggests Nestle may have an

advantage over Hershey's in terms of customer-focused positioning and better
distribution reach.
Conclusion

•From the Key findings:We rejecting the null hypothesis and accept the
alternate hypothesis Because Hershey's relatively new brand status, limited
diversification, and product availability challenges have resulted in weaker brand
perception, product acceptance, and market performance compared to the more
established and diversified Nestle brand in the Indian chocolate market.
 Key Recommendations:

•Retail Expansion: Prioritize expanding Hershey's distribution network and drive greater availability through local retail channels to improve
visibility and accessibility.

Brand Building: Leverage Hershey's unique brand personality of being trendy and magical through targeted marketing campaigns to reinforce
distinctive brand identity.

Trust and Reliability: Implement initiatives to enhance perceptions of trust, reliability, and efficiency associated with Hershey's brand through quality
assurance, customer service, and transparent communications.

Product Innovation: Develop product offerings tailored to Indian consumer tastes and preferences, focusing on indulgence and flavor experiences.

Targeted Promotions: Deploy tailored promotional strategies for different age segments based on their specific brand preferences and consumption
patterns.

Competitive Positioning: Closely monitor and respond to competitive moves by Nestle and other brands, especially in areas where Hershey's may be
at a disadvantage, such as customer-centric factors or distribution reach.
Thank you