Brittany Carlisle

The Hershey Company 2015 Media Plan

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Executive Summary Product: Hershey’s Confectionary Chocolate Year: 2015 Budget: 120 Million Primary Target Audience: White Adults in the US age 18 - 44 Secondary Target Audience: Minority Adults in the US age 18 - 44 Positioning Statement: Headquartered in Hershey, Pennsylvania, The Hershey Company is the leader manufacturer in the U.S. for confectionary goods. Hershey’s is focused on growing its international production lines while continuing to hold a competitive advantage in the United States. The company embraces its product diversity and is always willing to expand its production portfolio. Market Share Goal: Hershey’s goal is to increase sales by 6 percent while maintaining the 120 million dollar budget. Media Objectives: Media Mix and Budget Allocation:

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Table Of Contents

I. Situation Analysis……………………………………………….……..4

Company background………………………………………….………4

Product…………………………………………………….…………...6

Place………………………………………………………….………...6

Price………………………………………………………….…………7

Past Promotions…………………………………………….…………..7

Uncontrollable Variables…………………………………….…………8

Positioning Statement……………………………………….………….9

II. Competition………………………………………………….………...10

Market shares……………………………………………….…………10

Advertising Shares………………………………………….…………11

Competitor’s Media Mix………………………………….……….......12

Share of Voice (SOV)…………………………………………………13

Consumer Analysis……………………………………………...…….14

III. Marketing Objectives……………………………………...…………..16

Market share goals…………………………………………..………...16

Marketing Strategy…………………………………...………..…...…16

Communication Objectives…………………………………….……..16

SWOT Analysis.………………………………………………………17

IV. Consumer Target Market.…………………………………….……….17

Demographic.………………………………………………………….17

Geographic…………………………………………………………….19

Product Usage………………………………………………………….20

Rationale……………………………………………………………….21

V. Media Objectives………………………………………………………22

Reach and Frequency Chart……………………………………………22

Continuity………………………………………………………………22

Reach and Frequency goals...…………………………………………..23

Media Mix………...……………………………………………………27

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I. Situation Analysis

Company Background

In 1894, candy manufacturer Milton Hershey decided to produce a sweet chocolate

coating for his caramels. On this day in Hershey, Pennsylvania, The Hershey Chocolate Company

(here and after “Hershey’s”) was born. Only six years later, milk chocolate was produced in bars

and wafers. Chocolate was once a luxury that only the wealthy could afford due to the high cost

of manufacturing. Milton Hershey implemented the use of mass production to lower the cost of

milk chocolate.

Hershey’s low-cost high quality milk chocolate sales immediately skyrocketed, pushing

Milton Hershey into considering company expansion expansion. Returning to his roots, Milton

Hershey decided to expand his company in Derry Township, Pennsylvania. Surrounded by dairy

farms, the New York and Pennsylvania ports, and a local labor supply, Hershey was able to

acquire ample help and supplies for his new production facility. In the summer of 1905, the

production facility in Derry Township was producing delicious milk chocolate.

Milton Hershey soon became interested in expanding The Hershey Company’s product

line. Thus, he created The Hershey’s Chocolate Kiss. In the beginning, Hershey’s Kisses were

individually wrapped squares. Soon machine wrappers made that of the past, being able to mass-

produce the “plume” shape of the Hershey’s Kiss, making it an immediately recognizable

trademark for The Hershey’s Chocolate Company.

Hershey’s continued to venture into unmarked territory, developing new products such as

Mr. Goodbar in 1925, Hershey’s Syrup in 1926, Hershey’s Chocolate Chips in 1928, and the

Krackel Bar in 1938. Despite the economic hard times during the great depression in the 1930s,

the Hershey’s Company was able to maintain their production and profit while avoiding worker

lay-offs.

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The Hershey’s Company provided milk chocolate bars to American doughboys during

the First World War (1914-1917). With the outbreak of the Second World War underway,

Hershey’s created a survival ration bar. This chocolate bar was strictly for military use,

instructing those eating it to “consume very slowly, in about a half hour … to be melted in a

boiling water if eaten as a beverage.” The Hershey’s company produced a billion Ration-D bars,

winning numerous awards for exceptional contributions to the war effort.

Hershey’s Chocolate Company wasn’t the only chocolate company in Hershey,

Pennsylvania. H.B. “Harry” Reese’s Candy Company had been developing a chocolate covered

peanut butter cup since 1928. Hershey’s supplied the milk chocolate Harry used to coat his peanut

butter cups, so it’s not surprising that after Harry’s passing in 1956, The Hershey’s Chocolate

Company bought out Reese’s Candy Company and began producing the Hershey’s Reese’s

Peanut Butter Cup.

Hershey’s name was changed to Hershey’s Food Corporation in 1968; Hershey’s

expanded its production line with many other foods besides chocolate, buying out many similar

food corporations, all the while diversifying into other food production categories. “Today, The

Hershey’s Company is the leading North American manufacturer of chocolate and non-chocolate

confectionary and grocery products” (“History”, Hershey’s). The company is constantly thinking

of new production innovations and company growth. The Hershey’s Company distributes its

products world wide, being known in approximately 70 countries. Hershey’s is the global

confectionary leader with approximately 14,000 employees and net sales in excess of 6.6 billion

dollars (“History”).

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Product

The Hershey Company is committed to providing a colorful product portfolio. The

Hershey Companies Products can be organized into five main categories: Chocolate Candy,

Sugar Confectionary, Gum and Mint Baking and Pantry, and Snacks. Within these categories lay

principle product groups such as confectionery products sold in the form of bar goods, bagged

items and boxed items; grocery products in the form of baking ingredients, chocolate drink mixes,

peanut butter, dessert toppings and beverages (“Brands”, Hershey’s).

The Iconic Hershey’s Company Brands include the following: Hershey’s, Reese’s,

Hershey’s Kisses, Lancaster, Hershey’s Bliss, Twizzlers, Almond Joy, Mounds,

York (Peppermint Candies), Kit Kat and Pieces.

Hershey’s Company meets most dietary and religious restriction needs by offering

gluten-free, sugar-free and kosher products. (“Brands”)

Place

Hershey’s Chocolate Company was founded in Hershey, Pennsylvania in 1894. The

Hershey’s Company now provides 70 countries around the globe with their goods.

The 2013 major market segmentation for confectionary chocolate in the U.S. is shown in

the table on the next page, displaying the percentage sales of confectionary manufacturing

including Hershey’s Brand Chocolates. The “other” category consists of specialty confectionary

stores, independently owned retail stores, food service venues, military venues, fundraising, etc.

This retail portion of major market segmentation in the U.S. makes up 33.2% of confectionary

manufacturing sales.

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Price

Hershey’s chocolate prices vary depending on the size of the bar or bag. The cost of a

regular sized bar is only 89 cents, the same cost as other confectionary chocolate

competitors.

Past Promotions

Although promotions may seem somewhat limited by comparison to car raffles and other

such “flashy” promotions, Hershey’s focuses on wholesale promotions bringing sales to

retailers and supporting partnerships. A few of these promotions include the following: 2

for $3 pre-priced king-sized candy bars, NCAA March Madness designed wrappers for

king sized bars, NCAA Football designed wrappers for king sized bars, and The

Wounded Warrior designed wrapper for king size bars. Hershey’s has a dedicated

partnership with the Wounded Warrior Project. Hershey’s provides combat stress

recovery programs, physical rehabilitation, economic empowerment, and peer mentoring

for U.S. wounded service military members.

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Current Strategic Promotion

Hershey’s plans to wrap exotic fruit centers with milk chocolate; this will create

tasty treats as well as a healthy way to gain favanols and antioxidants. The demand for

organic food products and organic food production are growing throughout the U.S. and

U.K. Hershey’s intends to take this as a turning point in their production, expanding its

product portfolio to create a healthy alternative to the chocolate

bar (“Global Data”).

Uncontrollable Variables

The Hershey Company must work around the certain restrictions when

advertising during 2015. The first and most important uncontrollable variable is the

budget of 120 million dollars to be used between January 1st, 2015 and December 31st,

2015.

Another uncontrollable variable includes several legal proceedings, which can

impact not only brand sales, but also the brand image. There are currently about 90 anti-

trust cases in the U.S. and 14 cases in Canada. These allegations are assumed

“conspiracies” against the pricing practices within Hershey’s.

Poor nutritional values in confectionary chocolate goods hinder the demand for

products. Society is becoming increasingly aware for the connection between sugar

consumption and health complications such as obesity. This will impede the sales of

confectionary chocolate, impacting Hershey’s Chocolate sales.

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Last, but not least, Breadwinners’ disposable income hinders consumers’

consumption of confectionary chocolate. People are less likely to allocate funds to buy

goods such as confectionary chocolate. (“Clients”)

Positioning Statement

For 120 years, Hershey’s has been more about creating delicious confectionary

goods for the community; it has withstood the test of time, holding strong through the

great depression and the recession in 2008. Headquartered in Hershey, Pennsylvania, The

Hershey Company is the leader manufacturer in the U.S. for confectionary goods.

Hershey’s is focused on growing its international production lines while continuing to

hold a competitive advantage in the United States. The company embraces its product

diversity and is always willing to expand its production portfolio. For the upcoming 2015

year, Hershey’s goal is to increase sales by 6 percent while maintaining the 120 million

dollar budget.

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II. Competition

Market Shares

The current competition for Hershey’s includes any company producing

confectionary goods both nationwide and globally. These include, but are not limited to:

Brynwood Partners, Ferrero USA Inc., World’s Finest Chocolate, Inc., Russell Stover

Candies Inc., Lindt & Sprungli, R.M.Palmer Company, Nestle S.A., and Mars Inc.

Below is a graph displaying the market shares in the U.S. Confectionary Chocolate

Industry. As you can see, Hershey’s holds 31.1% of the confectionary market share in the

United States as of 2014. Mars is following quickly with 29.6%.

Nielsen.  qtd.  In  “Confectionary  Market  Share”  Mar.  2014  

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Advertising  Dollar  Shares,  Brynwood  Partners,  3%,  3%  

Advertising  Dollar  Shares,  Ferrero  USA  

Inc.,  3%,  3%  

Advertising  Dollar  Shares,  World's  Finest  Chocolate,  Inc.  ,  

3%,  3%  

Advertising  Dollar  Shares,  Russell  

Stover  Candies,  Inc.  ,  4%,  4%  

Advertising  Dollar  Shares,  The  Hershey  Company,  28%,  28%  

Advertising  Dollar  Shares,  Lindt  &  Sprungli,  1%,  1%  Advertising  Dollar  

Shares,  R.M.  Palmer  Co.,  6%,  6%  

Advertising  Dollar  Shares,  Nestle  S.A.,  

17%,  17%  

Advertising  Dollar  Shares,  Mars  Inc.,  

19%,  19%  

Advertising  Dollar  Shares,  Other/

Private  Label,  16%,  16%  

Chart  Title  

Advertising Shares

When calculating advertising share, I divided the money spent for each company

by the total spent in advertising by every company combined, and multiplied by 100.

As one can see when referencing the chart below, The Hershey Company spent the most

money in advertising, holding 28 percent of the advertising share. Mars follows with only

19 percent, followed closely by Nestle at 17 percent.

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Competitors’ Media Mix

When determining what media to use in for upcoming advertisements, it is

important to analyze what media was used the previous year in comparison to the

competition. In the chart below, one can make the appropriate comparisons between

Hershey’s and the competition. Along with Mars, Hershey’s utilizes every media besides

Sunday magazines and newspapers. Syndicated television is the most non-used television

medium across the board. Brynwood Partners allocates most of its advertising dollars

(approximately 70 percent) to spot television, along with 20 percent of total funds

assigned to cable television. Another unique advertising strategy can be seen with Lindt

& Sprungli. They have committed 99 percent of their advertising dollars to cable

television. Ferrero USA, Russell Stover and R.M. Palmer Company have chosen to not

utilize syndicated television. Nestle and World’s Finest Chocolate have utilized

syndicated television in their Media Mix. One can see that chocolate companies included

in the other/private label section spend their advertising dollars in network, cable and spot

television, spot radio and the Internet.

(Sunday magazines have been removed from the media mix graph because not one company utilized this particular media; Newspapers have been removed because only Brynwood uses them at a mere 1 percent.)

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Share Of Voice

When analyzing the competition, it is important to know who the “ring leaders” in

the individual media venues are. This share of media venue is known as Share of Voice

(SOV). Analysis has been made using the chart below to determine the share of voice in

each media. As one can see, Hershey’s has the dominant role in network television(29

percent), spot television(21 percent), and Internet (14 percent). Mars and Nestle are the

closest competition to Hershey’s. Nestle is a close second in terms of SOV. in network

television, holding 22 percent of total advertisements. Nestle ties at 19 percent with Mars,

Inc. and is a high contributor in magazine and network radio as well. Mars is the leading

advertiser in magazines and network radio. Coming in at a close second, Mars contributes

to 42 percent for advertisements seen for confectionary Chocolate Media Spending on the

Internet. Mars and Hershey’s are at a tie with advertising dollars spent on syndicated

television.

(Sunday magazines have been removed from the media mix graph because not one company utilized this particular media)

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Consumer Analysis.

The consumers that appear to be strong markets for chocolate confectionary

products are Asians and Hispanics. The strength in the category of purchased chocolate

within the last three months stays within the Asian demographic, holding at

approximately 91 percent. There appears to be a higher than average amount of

disposable income among Asian households; The Hispanic population is rapidly

expanding with an extraordinarily strong purchasing power.

Adults ages 18 and up who eat chocolate are more likely to buy chocolate if there

is one or more children in their household. Of those polled, 69 percent of adults with one

or more children in their household eat chocolate. Those with no children in their

household who eat chocolate include 60 percent. The same results are displayed; if one or

more children is present in a household, more chocolate is consumed within that

household. Price is also a factor when determining household consumption of chocolate.

28 percent of the African-American (Black) market is interested in individually wrapped

candies versus bags or packages or groupings (3 for $1).

With Hershey’s ability to expand their product portfolio, it is important to

consider peoples’ willingness to try new kinds of confectionary goods. The purchase

decisions for consumers vary among age groups and income levels. According to Mintel,

the older the consumer, the more loyal they are to brands they have purchased before. On

the other hand, younger and middle-aged generations are more willing to try new

products. Consumer ages 25-34 are willing to try exotic new flavors such as chili-orange

dark chocolate and sea salt.

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When analyzing consumers of the confectionary chocolate market, it’s critical to

keep in mind the consumption occasion. Females are more likely to buy chocolate as

dessert, on special occasions, when entertaining guests, and for use in baking. Males are

more likely to buy chocolate for eating on the go, eating while at school or work, or in

place of a meal. As the consumers’ age rises, the consumer is more likely to eat chocolate

as a snack. Chocolate consumers ages 18-34 are dramatically more likely to eat chocolate

during work or school. Those who eat chocolate and are in between the ages of 25 and 34

are more likely to use confectionary chocolate in their recipes for baking. Within

households with children, King-size bars are more likely to attract teen boys, while

regular-sized candy bars attract teen girls. 51 percent of teen boys age 12 – 14 are likely

to buy a king-size bar. The boys’ purchase of king-size bars may be due to their hearty

appetite and their craving for sweets. However, 86 percent of teen girls age 15-17 are

likely to buy a regular sized candy bar. Their self-awareness and self-image perception

may influence their purchase of a smaller candy bar. Mintel research data also concludes

that men prefer chocolate bars and women prefer smaller formats, such as fun-sized

chocolate snacks.

Consumers age 35-44 are more likely to buy chocolate, but only 78 percent of

those consumers buy it for themselves. This may be because the age group is more likely

to have kids of chocolate-eating age at home. According to Experian Marketing Services,

adults eat, on average, approximately 2 servings of chocolate per week. This consistent

consumption is one way to increase sales and exploit the daily chocolate ritual of

American adults (qtd. in “Consumers,” Mintel).

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III. Marketing Objectives

Marketing Share Goals.

In 2013, the net sales for Hershey’s was at approximately $7,146,100. The goal is to

increase sales by 6 percent in 2015.

Strategy.

Through innovative advertising, Hershey’s will effectively advertise for the three

promotions planned during 2015. Hershey’s will have continuous advertising scheduled

every month with high frequency and high reach during promotion months. Using a

strategic media mix, Hershey’s will project the message to the target audience in a very

effective manner.

Communication Objective.

Advertising will maintain sales among white adults by showing how versatile Hershey’s

Chocolate is when using them during family events such as during family gatherings or a

night by the campfire making smores. Hershey’s advertising during promotions will

encourage families to come together and create everlasting memories. The family events

that utilize Hershey’s will develop brand loyalty among the young children in American

households. Hershey’s will aim at expanding its product portfolio and create products

specifically for its secondary target audiences, the African America, Asian and Hispanic

demographics.

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SWOT Analysis.

SWOT table provided via One Source, Global Business Browser

IV. Consumer Target Market

Demographic

Although Simmons One View disagrees with Mintel research about the consumer

markets, the Simmons finding of a 4% greater consumption of chocolate by Whites is not

statistically significant. Mintel Research shows that the Hispanic and Asian consumer

markets are among the top two strongest markets for confectionary chocolate. According

to Simmons One View, when conducting a study on which consumer race eats the most

chocolate, there is no one answer. One may view the chart below when referencing the

indexes in each racial demographic. Confectionary chocolate appeals to people in every

race. Interestingly enough, the same applies to age groups. When asking ages 18-55+

(grouped into ten year sections), each group levels out at the national average for eating

chocolate, with indexes ranging from 95-106.

For Hershey’s advertising it is important not to leave out a specific group of

people, since there is not one specific demographic Hershey’s appeals to. Mintel states

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that 95 percent of households with children consume chocolate, 13% higher than

households without children. Because of the higher percentage of households with

children who eat chocolate, adults ages 35-44 are more likely to have children at home

and have been included as a major demographic. Because statistics indicate that younger

consumers tend to be less brand loyal and are willing to try new products, adults ages 18-

34 have also been included as a major demographic.

Hershey’s primary target audience should be white Americans ages 18-44. White

Americans are targeted because of the sheer mass within the US population. According to

the 2010 U.S. Census, Non-Hispanic White Americans make up 71 percent of the total

United States Population. Our secondary target audience will be consumers of the

minority races such as African Americans, Asians and Hispanics.

The Table below shows the indexes for each racial demographic listed in Simmons One

View. As one can see, the index in each demographic fall around the national average of

100.

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Geographic

Hershey’s Chocolate Brands can be found in nearly every grocery store,

convenience store and confectionary snack vending machine in the United States. There

are absolutely no restrictions on where Hershey’s can advertise. Although this may be

true, using a correct media mix can prove very effective when isolating the most densely

populated areas to reach our primary and secondary target audiences. These most densely

populated areas were found using the 2010 US Census and are listed in the table below.

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Product Usage.

As one may see below, Simmons One-View suggests that Adults ages 18-24 are

24 percent more likely to have consumed 5 or more bars of Hershey’s chocolate in the

last thirty days. Adults ages 25-34 are 24 percent more likely to consume 3-4 bars of

Hershey’s chocolate in the same time period. Adults ages 35-44 remain at the national

average for chocolate bars consumed. Although the statistics for adults ages 35-44 don’t

seem promising for additional consumption, this age range remains in our target

audience. Mintel’s statistics indicate that adults ages 35-44 are more likely to have

children at home.

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Rationale

Hershey’s primary target audience for the upcoming year is white adults age 18-

44. White adults consist of 71 percent of the total US Population. Hershey’s secondary

target audience includes minorities such as African Americans, Asians and Hispanics.

The specific spot markets for these groups include the following: New York, NY,

Los Angeles, CA, San Francisco, CA, San Diego, CA, Chicago, IL, Philadelphia, PA,

Detroit, MI, Huston, TX, San Antonio, TX, Dallas, TX, Phoenix, AZ, and Memphis, TN.

According to the US 2010 Census, 14.9 percent of the total population in California is

Asian. The US Census also shows that 32 percent of the total population in Texas

consists of Hispanics and 32.4 percent consists of Asians. This is why the majority of our

geographic spot markets are located in Texas and California. The remaining spot markets

are targeting the African American market.

According to Simmons One View, each demographic was asked if they eat

chocolate. Each indexed at or close to the national average of 100 for confectionary

chocolate consumption. The indexes are as follows: Asians, 89, African American, 98,

Hispanic, 90, and white, 102. The national average is 100.

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V. Media Objectives

Reach and Frequency Chart

Continuity

Hershey’s media strategy is to set a continuous media schedule from January 1st,

2015 – December 31st, 2015 with pulsing during the promotion periods. During these

promotion periods, advertising reaches both national and spot markets.

Advertising is divided into 7 periods. Three of these periods are promotion-specific with

a time period of one month each. The months to expect the peak periods are during

March, June and October.

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Goals by Period

Period 1: January 1st – February 28th

It is very important for any company to begin the new year on the right foot. Hershey’s

plans on doing so by welcoming the new year in, reminding people that just because the

holidays are over, does not mean everyone can not come together and enjoy sharing a

bowl of Hershey’s Kisses. Advertising for Valentines Day is also scheduled, enchanting

lovebirds with delectable Hershey’s chocolates. The reach goal for this period is 80

percent and the frequency goal is 4. Hershey’s is aiming for 320 Gross Rating Points

(GRPs) during this period.

Period 2: March 1st – March 31st

March 1st begins the first promotion of the year. With Easter right around the corner

(April 5th), Hershey’s shares the joy of family gatherings within national and select spot

markets. The reach goal for this period is 90 percent. The national frequency goal is 6

while the spot frequency goal is 8. Hershey’s is aiming for is 720 GRPs during this

period.

Period 3: April 1st – May 31st

Once the air starts warming up, camping season creeps around the corner. Hershey’s is

rolling in the summer with medium reach and low frequency. We’re sending the national

market some simple summer tips on bringing the family together while preparing the

markets for the upcoming smores promotion. This period is hoping to reach 65 percent of

the national market with a frequency of three. The GRP goal for this period is 195.

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Period 4: June 1st – June 31st

National and select spot markets are hit with a reach goal of 90. The frequency goal is 7

in national markets and 8 in spot markets. Hershey’s wants to share the joy of the

campfire with everyone this summer. Hershey’s shows different ways to use Hershey’s

Brand Chocolate in smores – whether it’s on a campfire or in an indoor family fort. The

goal for GRPs is 720 for this period.

Period 5: July 1st – September 30th

Hershey’s continues advertising on national scale with a medium reach and medium

frequency. Consumers should be reminded of the joys of Hershey’s chocolate, even if it

is consuming in moderation as advertised. The reach goal for this period is 70. The

frequency goal for this period is 6 while the GRP goal is 420.

Period 6: October 1st – October 31st

Hershey’s creative team gears up advertisements for Halloween. Special Reese’s

commercials are shown on both national and spot markets. Hershey’s wants their candy

to be at the doorstep of every “good” house to go trick-or-treating. Hershey’s goal is to

reach 90% of the national and spot markets. The national frequency goal is 7 while the

spot frequency goal is 9. The GRP goal for this period is 810.

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Period 7: November 1st – December 31st

Hershey’s embraces the holidays reminding consumers of the national market that the

holiday dinner table isn’t complete without the bowl of Hershey’s kisses on the dessert

table. This period, the goal reach is 75 while the goal frequency is 6. Hershey’s hopes to

reach 450 Gross Rating Points.

Proposed Promotions

Promotion 1: March 1st – March 31st

This promotion includes sending creative Easter displays to retail stores such as Wal-

Mart to boost traffic to the Hershey’s Easter Candy. Hershey’s will also put together pre-

made Easter baskets with age-appropriate toys, Hershey’s brands such as Reese’s and Kit

Kat, as well as Hershey’s coloring books and Hershey’s Brand crayons. Kids will wake

up to this on Easter morning and will be occupied all day with the goodies from

Hershey’s. Hershey’s will then become an Easter staple they will remember for years to

come.

Promotion 2: June 1st – June 31st

There’s nothing like the sound of family stories around the campfire. Those families who

can’t go camping over the summer – or those that prefer not to – can finally have the

family time they’ve always wanted. For this promotion, Hershey’s will develop Smores

kits for families to enjoy over the summer. These kits will be displayed on point-of-

purchase displays in select retail stores, encouraging parents to buy the Smores kit on

impulse, only to create lifelong memories later that night. The Smores kit will coordinate

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with spot television advertisements showing families that pick up the kits and try it

themselves. Hershey’s will also create a Smores recipe on the back of individually

wrapped Hershey’s chocolate bars. This recipe will spark the consumer’s interest in using

the candy bar for something else, rather than as a snack at the grocery store.

Promotion 3: October 1st – October 31st

Who doesn’t want to ride in the bat-mobile? Hershey’s final promotion for 2015 includes

an unforgettable cruise on the bat-mobile with Batman, himself. Consumers may enter to

win the Hershey’s Batman ride by going to a webpage and submitting their best Batman-

themed costume. Three winners will be selected at random at the end of the month. In

addition to informational product packaging, Hershey’s will provide special bulk

packaging for retail displays at every major retail venue in the United States. Heavy

advertising on Television, Billboard and Magazines will be prevalent.

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Proposed Media Mix

The Chart below gives the percentages of media channels used during the proposed 2015

media plan.

Network Television and Cable: 55 percent, 3550 GRPs

Because Hershey’s does not have a narrow target audience, a solid foundation of

advertisements on network television and cable is needed. This allows a steady message

to be relayed to consumers throughout the year. Message reach and frequency increases

during the promotion months. According to Simmons One View, adults ages 18-44 are at

the national average for television screening from 3pm – Midnight. With indexes around

national average, it’s acceptable to advertise to the general target market through the

following television dayparts: network television network daytime, network early news,

network prime, network late night, network cable daytime, network cable early fringe,

network  television  36%  

network  cable  19%  

network  radio  1%  

magazines  14%  

digital  national  8%  

spot  television  2%  

spot  cable  1%  

spot  radio  1%  

outdoor  3%  

direct  mail  11%  

digital  spot  4%  

Hershey's  2015  Media  Mix  

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network cable prime, and network cable late night fringe. Network Prime ads are 30

seconds while all other day parts are set to 15 seconds.

Magazines: 14 percent, 1000 GRPs

According to Simmons One View, Adults ages 18-44 are 17 percent more likely to read

glamour magazine. General interest magazines such as Country Living and Discover

proved to be popular reads throughout each targeted demographic. Magazines are

particularly utilized during promotional periods, emphasizing the family theme The

Hershey Company portrays in advertisements. All magazine ads are full page, full color.

Network Radio: 1 percent, 410 GRPs

The target demographic is slightly above average when referencing index numbers on

Simmons One View in relation to the radio day parts morning and evening drive. While

our secondary targeted audience does not appear to have a strong response with radio

morning and evening day parts. Network Radio ads will be timed at 30 seconds.

Digital National: 8 percent, 656 GRPs

Hershey’s currently advertises on the Internet, and to maintain sustainability in this

media, a portion of funds must be allocated to this media. National digital advertising

focuses on mobile advertising.

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Spot Television and Cable: 3 percent, 360 GRPs

In order to reach those spot markets, Hershey’s will advertise in spot television and cable.

The African American demographic is indexed closely to the national average for

television day parts watched. The Asian population indexes well above average when

referencing television viewed in the early morning. All spot television and cable ads are

set to 30 seconds.

Spot Radio: 1 percent, 250 GRPs

According to Simmons One View, Asians appear to be slightly under the national

average when looking at the index for listened radio during the drive time day parts.

However, by placing ads targeting Asians in select radio programs and/or stations already

targeting Asians, Hershey’s can reach this demographic through this media. Hershey’s

will advertise on select stations targeting the remaining targeted demographics. For

example, to reach Hispanics, Hershey’s will advertise on Hispanic radio stations. To

reach African Americans, Hershey’s will advertise on rap and hip-hop stations. All spot

radio commercials are set to 30 seconds.

Digital Spot: 4 percent, 2440 GRPs

Hershey’s currently advertises on the Internet, and to maintain sustainability in this

media, a portion of funds must be allocated to this media. Digital spot media targets

digital media users located in the spot market areas. The target audience (adults age 18-

44) appears 26 to 45 percent more likely to use the Internet for social media use, research,

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and instant messaging. Asians and Hispanics appear to be active in the online

community.

Outdoor: 3 percent, 3966 GRPs

Hershey’s will utilize outdoor and unconventional outdoor media including billboards,

mass transit vehicle graphics, “spectacular” ads (as seen on the streets of New York City

and other large cities), and sidewalk advertising. These media routes will prove to

creatively reach Hershey’s spot markets.

Direct Mail: 11 percent, 90 GRPs

Direct mail is utilized in the proposed Hershey’s 2015 media plan in coordination with

other media during the three main promotions. Hershey’s may mail creative “mini ads” to

households with children. These ads may include but are not limited to, creativity sheets

for kids, Hershey’s brand games, Smores recipes, coupons.

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Budget Recap

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2015 Media Plan Flow Chart

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Works Cited

“Brands” The Hershey Company. Web. (Access Date) http://www.thehersheycompany.com/brands.aspx “Chocolate Confectionary” USA February 2014. Impact of Race and Hispanic Origin Mintel. Web. http://academic.mintel.com.libdata.lib.ua.edu/display/680673/ “Clients” IBIS World (Date Issued) Web. (Date of Access) http://clients1.ibisworld.com.libdata.lib.ua.edu/reports/ua.industry/productsandmarkets.aspx?entid=230#MM "Confectionery Market Share in the United States in 2014” Hershey’s. " Statista - The Statistics Portal. Mar. 2014. Statista. 11 November 2014. http://www.statista.com/statistics/294497/us-confectionery-market-share- by-company/ Global Data Nov. 2014 One Source. Web. (DOA) http://globalbb.onesource.com/Web/Reports/ReportMain.aspx?KeyID=14476&Pr ocess=CP&CIK=47111&Report=STRENGTHWEAKNESS#0 Global Data 7 Mar. 2014 One Source. Web. (Date of Access) http://globalbb.onesource.com/web/Reports/ReportMain.aspx?KeyID=144 76&Process=CP&CIK=47111&Report=STRATEGICINITIATIVES “History” The Hershey Company. Web. (Access Date) http://www.thehersheycompany.com/about-hershey/our-story/hersheys- history.aspx “Simmons One View” 2014. Web. (Date Accessed) https://oneview-experian-com.libdata.lib.ua.edu/main/# “2010 US Census” USA 2010 Web. (Access Date)

African American Info: http://www.census.gov/prod/cen2010/briefs/c2010br-06.pdf Asian American Info: http://www.census.gov/prod/cen2010/briefs/c2010br-11.pdf Hispanic American Info: http://www.census.gov/prod/cen2010/briefs/c2010br-04.pdf