HERSHEY’S CHOCOLATE BRAND 1

Hershey’s Chocolate Brand

HERSHEY’S CHOCOLATE BRAND 2

Hershey’s Chocolate Brand 1. Company & Competition Overview

The Hershey Company is a global confectionery leader and the largest producer of quality

chocolate in North America. Hershey’s operations consist of two segments, North America

accounting for 90% of revenue (85% is in the United States) and the international segment

accounting for 10% of revenue1.

The Hershey Company has had consistent financial performance with most recent

revenues of $7.94 billion for the twelve months ending in June 2020. This revenue was an

increase of 1.22% from the previous year. As of December 31, 2019, the company has

approximately 16,140 employees2. Within the North American markets, Hershey has a diverse

brand portfolio including a variety of confectionery categories including chocolate, candy,

baking, and snack foods. In the chocolate category, key brands include Hershey’s, Reese’s,

KitKat, and Hershey’s Kisses3. The best selling brand in this category is Reeses. After Reeses ,

the Hershey brand comes in second for retail sales in the chocolate category making it a

considerably valuable brand to the company’s overall portfolio4.

As far as competitors go, Mars Inc. comes in second with market share after The Hershey

Company. Mars, Incorporated is an American global manufacturer of confectionery, pet food,

and other food products. The company is headquartered in McLean, Virginia, United States and

is a private company owned entirely by the Mars family. Mars Inc. has several notable brands in

the chocolate confectionery category including Snickers, M&M’s, Mars Bars, Three Musketeers,

1

https://www.thehersheycompany.com/content/dam/corporate-us/documents/investors/2020-proxy-statement-2019-annual-report.pdf

2 https://www.thehersheycompany.com/content/dam/corporate-us/documents/investors/2020-proxy-statement-2019-annual-report.pdf 3 https://www.hersheys.com/en_us/our-brands.html 4 https://www.mentalfloss.com/quizzes/14168/name-13-best-selling-candies-us

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Dove, Twix, and Milky Way. Mars has an annual revenue of approximately $37.6 Billion and

employs approximately 115,000 employees5.

The Ferrero Group is another key competitor in the chocolate confectionery space for the

Hershey Company. The Ferrero company is an Italian manufacturer of branded chocolate and

confectionery products and is the third biggest chocolate producer and confectionery company in

the world. For the purpose of this analysis we will be focusing on Ferrero North America. In the

United States, Ferrero employs 3,000 people and has annual revenues of $900 million. Global sales

for Ferrero are $12.5 billion6. Ferrero entered the US market back in 1969 with Tic Tac mints and

has expanded their portfolio with several notable brands such as Ferrero Roche, Nutella, Kinder,

and Fannie May Chocolates6. In 2018, Ferrero expanded further into the US with the acquisition of

the Nestle North American confectionery business. This acquisition gave Ferrero more than 20

new American brands with strong brand awareness. In the chocolate confectionery category, this

acquisition included brands such as Crunch, Butterfinger, Baby Ruth, 100 Grand, Raisinets, and

Wonka. This transaction made Ferrero the third largest confectionery in the U.S. market7.

2. Situation Analysis

The North American chocolate confectionery industry is a mature market with many

competitors. The industry is currently experiencing slow growth as a result of consumer

preference and increasing trend towards healthier, natural, and clean label products. As of 2019,

5 https://www.forbes.com/companies/mars/?list=largest-private-companies&sh=7fbd5b003bb7 6 https://www.vendingmarketwatch.com/products/confections-cookies-pastries/news/21140579/ferrero-usa-expands-logistics-in-us-market-with-new-distribution-center 7 https://www.forbes.com/sites/douglasyu/2020/06/01/ferrero-adds-new-distribution-center-to-drive-acquisition-driven-growth-in-the-us/?sh=664af17a3378

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the US chocolate confectionery industry is $19.5 Billion and this is expected to reach $20.7

Billion by 20258.

The chocolate confectionery industry is highly fragmented with the presence of a few

established companies holding a majority of the market. Prominent players in the United States

include the Hershey Company, Ferrero Group, Mars, Lindt/Ghirardelli/Stover, and Mondelez

International. Hershey is leading the market share with around 44%, while Mars comes in second

around 30% of Market share9. After the Nestle Acquisition in 2018, Ferrero became the third

biggest player with close to 6% of the chocolate confectionery market10.

The chocolate confectionery industry is heavily impacted by health trends. For North

American consumers, concern regarding high sugar content related to obesity has shifted

consumer preferences. Health trends have increased the demand for sugar free, low calorie,

premium, and dark chocolates. Market players are constantly facing competition from the

increasing healthy snacks market. To strengthen their market position, Hershey, Mars, and

Ferrero have responded to these trends by cross branding, introducing “better for you” snack

options, and offering premium dark chocolates.

When it comes to sustainability, Hershey and the other major players in the industry have

had to establish various sustainability commitments and programs in response to concerns over

child labor, climate change, and deforestation11.

8 https://advanton.com/chocolate-market-united-states/ . 9

https://www.forbes.com/sites/michaelcannivet/2019/02/14/hershey-offers-investors-certainty-in-an-uncertain-time/?sh=7b36977c7ba9.

10 Euromonitor Passport - Chocolate Confectionery in the US - Country Report - Sept 2020

11 https://www.supplychaindive.com/news/hershey-new-environmental-policy/546864/

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One way to assess the industry of confectionaries, chocolate in particular, is through

Porter’s Five Forces. When looking at the competitive rivalry, the industry is highly competitive.

Within the industry, the top 3 market leading firms (Hershey, Mars, and Ferrero) comprise close

to 70% of the market. With the Market being heavily competitive it is imperative that the market

leaders keep their portfolio competitive and leverage their brand awareness by partnering and co

branding. Suppliers have moderate power when it comes to providing the raw materials to the

candy manufacturers. Some examples of the suppliers’ power include raising the prices of cocoa,

sugar, and nuts that candy manufacturers use in their products. These price increases can be the

result of natural disasters decimating crops. Purchasers have high purchasing power in the

market. Since there are many substitutes available for each candy bar, a significant increase in

price would likely lead consumers to explore their alternatives, since there also are no switching

costs incurred and money is likely to be saved when purchasing a substitute product. Since candy

is often an impulse purchase, a high price point would not be ideal to entice consumers. The

threat of substitutes is extremely high, with each candy manufacturer having a vast array of

comparable products available. Between Hershey, Mars, and Ferrero each has at least 5 different

chocolate bar brands in their portfolio. The threat of new entrants is relatively low in the candy

market. Though it is not difficult for a new candy manufacturer to create a product, they are

likely going to face many obstacles with patents and trademarks, regulation by the Food and

Drug Administration, and competing for national distribution and shelf space in an already

heavily established market.

3. Brand Positioning Framework

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Target Audience

While Hershey’s appeals to a very large audience of all genders, ages, races, and

socioeconomic statuses that can be simplified as “everyone,” their core target demographic is

middle-class mothers who have pre-teen and teen children. In terms of psychographics,

Hershey’s targets people who value family, friends, loved ones, togetherness, happiness,

cheerfulness and sentimentality. Hershey’s also targets consumers by closely associating their

products with holidays and other special occasions and experiences. Geographically, Hershey’s

targets consumers in the US and internationally. In this project, we are focusing only on their US

operations, in which they target consumers across the entire country.

Competitive Frame of Reference

Hershey’s competes in the confectionery - more specifically chocolate - market. While

Hershey’s is one of the biggest brands in the space, they do have competition. Some of their

most direct competitors include Snickers, Milky Way, 3 Musketeers (all Mars brands), Crunch,

and Butterfinger (both Ferrero brands). They also indirectly compete with other chocolate brands

such as Lindt, as well as other confectionery brands such as Skittles.

Using the customer decision matrix (Exhibit 1), we can see how Hershey’s measures up

relative to these competitors. Hershey’s is an affordable chocolate bar - they are either similar in

price or more affordable compared to much of their competition. Hershey’s adequately delivers

on sweetness and indulgence, and has a heavy advantage in history, tradition, and nostalgia - the

brand has been around since 1894. Their status as a time-tested, traditional fixture within the

market that evokes strong consumer feelings is Hershey’s strongest feature as a competitor in the

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marketplace. All these factors, and more that are touched on below, contribute to Hershey’s

being the highest rated brand in terms of customer satisfaction12.

Benefits

Hershey’s rational benefits begin with the fact that their products are very accessible.

Hershey’s products are conveniently located, easy to find, and affordable to all consumers. In

addition, the brand provides consumers with products that can be used in more ways than just

snacking - syrups, cocoa powders, spreads, and other iterations allow consumers to use the brand

in a great variety of ways. Hershey’s chocolate bar also features convenient and useful portion

control with their thoughtful chocolate bar design that features small, breakable pieces.

Hershey’s also uses non-artificial ingredients.

Perhaps even greater are the emotional benefits that come with Hershey's product.

Having a Hershey’s bar can evoke feelings beyond simply the pure enjoyment of the treat. When

enjoying a Hershey’s bar, one can feel warmth, togetherness, and feelings of nostalgia. In

addition, Hershey’s status as a deep heritage brand gives consumers feelings of American pride

and tradition.

Points-of-Parity and Points of Difference

Hershey’s has several points-of-parity in relation to their competitors. The most simple is

that it is used for snacking. Like other confectioneries and chocolates, Hershey’s is also sweet

and indulgent. Lastly, Hershey’s products are convenient and accessible for most consumers.

Hershey’s enjoys a handful of points of difference in the marketplace. While all brands in

the category can be used for snacking, Hershey’s has a more versatile array of uses and

iterations, such as baking and cocoa powder, adding to their breadth of awareness. Hershey’s

12 Candy Industry

https://www.candyindustry.com/articles/88853-hershey-ties-for-top-spot-in-food-industry-customer-satisfaction-index#:~:text=The%202019%20American%20Customer%20Satis

faction,one%20point%20from%202018's%2083.

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also enjoys the status of being a very experiential product, being highly associated with S’mores,

for example. In addition, Hershey’s benefits from their rich heritage, which comes with a high

depth of brand awareness and brings about feelings of nostalgia and even evokes the “American”

image. Lastly, as mentioned before, Hershey’s trademarked candy bar design offers portion

control and easy sharing opportunities with their breakable pieces feature.

Brand Values

Hershey’s core brand values, according to their website are devoted, selfless,

team-focused, and respectful13. In addition to these listed values, Hershey's brand is one that is

rooted in family, togetherness, empathy, inclusion, sustainability, and American values.

Brand Mantra

Hershey’s brand mantra can be seen as “Heartwarming Sweet Treat.” The emotional

modifier is derived from their “Heartwarming The World” campaign and marketing mix, and the

descriptive modifier and brand function are self-explanatory.

Brand Personality

Hershey’s brand personality is largely characterized by positive, warm associations.

Through their cultivated image as an experiential brand, they have created a personality that is

happy, cheerful, empathetic, kind, and inclusive. The brand is rooted in togetherness, family,

friends, significant others, and the key experiences that take place in these relationships.

Looking at the major categories of brand personality, Hershey’s can be described as both

a sincere and competent brand. Hershey’s advertising and communications, among other brand

elements, create a brand that is wholesome, cheerful, and down to earth.The last facet of

Hershey’s strong brand image and personality is their history, heritage, and user experiences.

13 The Hershey Company https://www.thehersheycompany.com/en_in/our-values.html

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Their history is rich and creates lots of nostalgia, often tied to warm experiences as mentioned

above.

Hershey’s has achieved transformational advertising, as their advertisements create

consumer perceptions that associate the brand with favorable outcomes and experiences, such as

holiday cheer and first kisses. Of the six brand-building feelings, Hershey’s successfully checks

off on warmth (sentimental, warmhearted, affectionate, strong status as a heritage brand), and

also touches on the feelings of fun (joyousness, cheerfulness) and excitement (experiencing

something special) a little bit.

Brand Positioning Statement

For middle-class mothers, Hershey’s is the confectionery chocolate that brings joy,

togetherness, and warmth to their families because of the brand heritage and nostalgia. It can be

used for every occasion because of its breadth of product line so that mothers can be assured that

their families and loved ones will be together to enjoy every special moment together.

4. Competitor Positioning

Snickers (Mars)

Hershey’s primary competitor to their namesake chocolate bar is Snickers, which has a 5.0%

market share for the Snickers brand alone and is the #4 brand in the market. Snickers reached

this success through extremely successful marketing campaigns and unique product differences.

Snickers focuses on a slightly different, more male dominated core target market positioning. A

potential positioning statement for Snickers is: for the time-pressed young professional, Snickers

is the quick energy treat due to the unique mix of chocolate, caramel, and soft nougat paired with

peanuts. Some key elements of Snickers' brand positioning are as follows:

Benefits - Rational

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● Quick boost of energy from an easy to find and tasty treat.

● Satisfy a taste craving with the crunch of peanuts and creamy nougat and caramel.

Benefits - Emotional

● Snickers provides a sweet, fun alternative to handle hunger needs, allowing you to focus

on other important things.

● A break from the stress of the day

Points of Parity

● Readily accessible for impulse purchase

● Aggressive integrated marketing communication campaign supports positioning

● Web site is focused around increasing community engagement and recipes (parity with

Hershey’s - differentiator to others in industry who have basic product oriented sites)

● Assortment of various different products branded under the ‘Snickers’ brand name allows

for a branded variety pack similar to Hershey’s

● Strong brand slogans: recently have included “Hungry, Why Wait?”, “#EatASnickers”,

and the overarching “Snickers Satisfies”.

Points of Difference

● Connection to better-for-you segment through focused messaging of quick energy.

Snickers brings larger message of chocolate’s health benefits & aiming to ‘tackle hunger’

● Additional ingredients provide unique taste and experience

● Packaging - Iconic packaging & logo allow it to begin substitute its brand name and use

this primary spot on packaging to further the “Hungry” campaign10

● “The world’s best selling candy bar”14

● Celebrity endorsements and event placements within NFL

14 Snickers Website: https://www.marschocolate.com/snickers

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Brand personality

● Excitement - Fun and unique marketing campaigns have created an exciting personality

● Competence - Through use of high profile celebrity endorsements and event placements

Brand Mantra

● Snickers’ brand can be summarized as Fun, Unique, Treat.

Crunch (by Ferrero in US market / Nestle globally)

Within Ferrero USA the key competitor to the Hershey’s bar is the Crunch bar. However, as a

result of Nestle’s shift out of the candy market into the ‘better-for-you’ market, many of the

brands within their portfolio have lost market share prior to the Ferrero acquisition, leading

Crunch to now only have a 0.3% brand share in 202010.

Crunch’s target market overlaps heavily with Hershey’s with a potential positioning statement

of: for Americans aged 18-34, Crunch is the refreshing chocolate bar due to its crisped rice

filling. Key positioning elements for Crunch bar are:

Benefits - Rational

● Easy-to-find, impulse-driven energy with a refreshing crisp crunch

● Satisfy a taste craving

Benefits - Emotional

● The simple joy of 100% real milk chocolate and crisped rice

● Feelings of nostalgia for a chocolate bar treat enjoyed for generations (since 1928)15

● Enjoying a treat and helping the community16

● The feeling of making things better to change your life

Points of Parity

15 https://www.snackhistory.com/crunch-bar

16 Crunch Website - Crunch Generation - https://www.crunchbar.com/crunch-generation

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● Readily accessible for impulse purchase

● Simple, natural ingredients - 100% real chocolate and crisped rice

● Giving back to the community

● Return to traditional advertising after 10 years.

Points of Difference

● Internationally known (under Nestle brand)

● Descriptive, sound-based onomatopoeia “Crunch” is trademarked within category

● Crisped rice crunch filling providing unique texture / chocolate experience

● Packaging - Signature bright blue and red wrapper, prominently stating “100% Real

Chocolate” and “No artificial flavors or colors” - a potential healthier alternative to

Snickers (with artificial flavors) or Hershey’s (not outwardly making these statements)

Brand personality

● Sincerity - Achieved by provoking feelings of nostalgia as the candy has been enjoyed for

generations, through community giving with the “CRUNCH Generation”, through the

slogan “America Loves Crunch”, and ensuring diversity in all creative.

● Competence - Reinforced through references of generations enjoying Crunch.

Brand Mantra

● The Crunch brand can be summarized through Welcoming, Crisp, Chocolate.

5. Hershey’s Marketing Program

The campaign that Hershey has chosen to establish their current brand positioning is

called, “Heartwarming the World,” which began in September of 2018. This campaign was

created to communicate the Hershey company’s values of empathy, inclusion, family, and

community. This is the message that Hershey strives to communicate via all of the marketing

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activities their brand has chosen to engage in. Among these activities are tv, promotions,

sponsorships, and social media.

Hershey TV spots over the last two years feature similar themes and mainly run during

productions targeting young mothers and families with pre-teenage children or older, such as

MTV’s Ridiculousness, and BET’s Blackish17. Most spots showcase interactions between family

members or friends and demonstrate how Hershey’s chocolate brings individuals together as

exemplified in Hershey’s 2018 commercial, “Heartwarming the World: Break Up” (Exhibit 2).

This spot shows a heartbroken teen hiding in their room after being broken up with and a mother

sliding a milk chocolate Hershey’s miniature under her door to encourage her to come out. This

spot, along with many other Hershey’s commercials, features Roger Hodgson’s, “Give a Little

Bit,” supporting Hershey’s positioning as a brand that values kindness, compassion, and

togetherness. In addition to the messages in these commercials being appropriate for Hershey’s

brand positioning, airing them on family-friendly networks and productions strengthens their

positioning even further.

Hershey’s sponsorships and corporate partnerships during the “Heartwarming the

World,” campaign are very much in line with the positioning communicated in their TV ads. In

2015, the Hershey company announced their goal to “nourish a million minds by 2020.” To

achieve this goal, Hershey partnered with organizations such as Annamrita in India, Food Banks

Canada, and Feeding America, to provide food to children around the world18. While this

initiative began prior to the 2018 “Heartwarming the World,” campaign, it still falls in line with

the campaign’s goals and contributed to the integration of Hershey’s marketing communications

once the campaign was launched. These partnerships reinforce the empathetic and

17 iSpot.tv: https://www.ispot.tv/brands/d_6/hersheys 18Thehersheycompany.com: https://www.thehersheycompany.com/en_us/blog/doing-more-to-nourish-a-million-minds-by-2020.html

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community-oriented brand image that Hershey is trying to convey. Hershey is also a current

sponsor of the US Olympic Committee for the 2021 Olympic and Paralympic games19. By

sponsoring the US team in the Olympic games, Hershey once again demonstrates that their brand

places a high level of importance on unity and communal support. In 2018 Hershey began

partnering with popular gamers, such as Ninja and DrLupo, during Twitchcon, a popular

e-gaming conference20. In 2019 Hershey became a sponsor of the North American Twitchcon

event itself in addition to continuing its partnerships with Ninja, DrLupo, and more21. While

these partnerships are definitely attractive to a smaller submarket of Hershey’s, we believe that

compared to Hershey’s other activities, they are least in line with the “Heartwarming the World,”

campaign. Hershey’s most recent partnerships have come about as a result of their newest

sustainability initiative, “The Heartwarming Project,” launched in June of 201922. Under this

initiative, Hershey has partnered with the Boys and Girls Club of America, the Crisis Text Line,

We.org, and Snapchat. All of these partnerships are very appropriate for the, “Heartwarming the

World,” campaign as each of these organizations are known for demonstrating empathy and

inclusion and are all trusted by their target market of young parents and families with

pre-teenage children or older23. The partnerships with Snapchat and We.org specifically have

helped facilitate live virtual events surrounding sparking connections and building

communication, further integrating the marketing communications of this campaign.

19 TeamUSA.org: https://www.teamusa.org/News/2015/October/14/Hershey-And-US-Olympic-Committee-Announce-Partnership#:~:text=HERSHEY%2C%20Pa.%2C%20(October,2018%20and%20Tokyo%202020%20Games. 20 Finance.yahoo.com: https://finance.yahoo.com/news/hershey-partners-ninja-drlupo-twitchcon-120000235.html?.tsrc=rss&guccounter=1&guce_referrer=aHR0cHM6Ly9zcG9uc29ycGl0Y2guY29tLw&guce_referrer_sig=AQAAAG4GMSowqRU51U8XdejR7bPJjVf6L8yrQqL4Zqf67uTUit8qTndsyuKzooo8YOU0b-ZEoENOUmbbaow_1yYFRGqZoU8vCM5i7D_--N4cHLy19NXykzwjfpcDNkuBljaXvkcQQcp3Jh6qEPkdjEZIaccsNMD4vVxI3LyZa3rMUPBy 21 Esportobserver.com: https://esportsobserver.com/twitch-hershey-twitchcon/ 22 3blmedia.com: https://www.3blmedia.com/News/Heartwarming-Project-Hershey 23 Thehersheycompany.com: https://www.thehersheycompany.com/en_us/sustainability/the-heartwarming-project.html

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One activity that Hershey engaged in to promote their standard bars was their

Heartwarming tour. Beginning in February 2020, this tour featured a pop-up s’mores shop

featuring free s’mores, photo ops, and chocolate-themed games and was scheduled to travel

across the United States throughout the Summer24. However, as a result of the pandemic, the tour

was cancelled after appearing in Peoria, AZ on March 7th. Prior to its cancellation, this

promotional event helped strengthen Hershey’s positioning as a brand that values community

and togetherness by facilitating positive interactions within households and between neighbors.

Other Hershey’s promotions have echoed the importance the brand places on family as well,

such as the 2019 animated Adams Family movie costume contest (Exhibit 3). Running a

promotion such as this aided in further positioning Hershey as a brand that strives to bring

families together and strengthen familial bonds.

The social media platforms utilized by Hershey include Instagram, Twitter, Facebook,

YouTube, and Pinterest. All of these platforms are in line with their brand positioning and are

attractive to Hershey’s target consumers. By posting almost identical content on each platform,

Hershey is able to effectively integrate their social media mix and communicate a consistent

message. Posts on these sites depict families and friends and emphasize the importance of

sharing and community. The “Heartwarming the World,” tagline can be found on all of these

platforms and is included as a hashtag on most content posted (Exhibit 4). Of all of Hershey’s

social media accounts, their YouTube page is the least developed as very few of Hershey’s other

marketing activities are reflected in their content. Hershey’s YouTube page is also the least

frequently updated of all of their social media pages. Outside of paid advertisements, the last

Hershey’s chocolate content posted to YouTube is over six months old while Hershey posts via

Instagram and Facebook are typically made at least every two weeks.

24 Hersheys.com: https://www.hersheys.com/en_us/promotions/smores/heartwarming-tour.html

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6. Brand Strength Assessment

After analyzing Hershey and its competitors, it can be said that Hershey’s is a strong

brand in the chocolate confectionery market. Hershey’s is the market leader in the confectionery

segment, has a brand with a history that has been ingrained into American life, and has several

prominent partnerships. Hershey’s had 43% of the sales in the chocolate market in 2018 and

second place Mars had roughly 30%25. This position as the industry leader shows that Hershey’s

is a strong brand in the mind of the consumer and the top choice when it comes to purchasing.

Third place in the market of chocolate sales is Lindt/Ghiradelli/Russell Stover with 9% of sales.

With such a vast difference between Hershey and their competitors, Hershey is able to venture

into the hearts and mind of consumers by positioning themselves as the American standard for

chocolate. Hershey’s started making chocolate in 1894 and has always been focused on bettering

the lives of all stakeholders. By making Hershey’s chocolates affordable, building Hersheypark,

and opening a school for orphans, Hershey’s has built a brand that creates a sense of belonging

and community that is vital to Americans26. Also, though maybe seen as a miniscule aspect, all

Hershey’s products are designed to be broken into pieces and shared as seen in the Kit-Kat,

Reese’s cups, and lines on the Hershey bar; this design for sharing further embraces the Hershey

brand’s values of sharing and community. Mars and other competitors’ chocolates are each

individually wrapped and not designed to be shared. Hershey’s has become an iconic brand and

much more than simply a product. Though competitors like Mars have been around since the

early 1900’s, they have not had the immense effect in the community and Americans' lives like

Hershey’s has27. Through this long history as an iconic American brand, Hershey’s has been able

to expand their portfolio and even partner with other brands to make products. Because of their

25 https://www.statista.com/statistics/238794/market-share-of-the-leading-chocolate-companies-in-the-us/ 26 https://www.hersheys.com/en_us/our-story/our-history.html 27 https://www.mars.com/about/history

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large market share and brand awareness, Hershey’s has been able to introduce new products like

Hershey’s chocolate syrups, the recipe for s’mores, and joint products like Betty Crocker cookies

with Hershey’s chocolate. Mars’ Snickers bar is well known and heavily advertised and has a

partnership with the National Football League in the United States, but Hershey is a sponsor of

the United States Olympic Committee, giving Hershey a much larger audience28. Again, by

sponsoring the Olympics and the uniting of nations to support their top athletes, Hershey is able

to show how they are still strongly in favor of unity and inclusion.

7. Recommendations

Based on the analysis we have completed of the Hershey company, we have created

several recommendations that we believe can aid in improving their brand. The first of which

would be continuing to develop innovative product crossovers that would allow them to compete

in more categories than just candy bars. For example, with their Reese’s brand, Hershey has

announced that they will be launching a Reese’s snack cake in December of 2020 which will

allow them to compete in the “mid-morning snack” category. We believe that Hershey could

create a similar product under their chocolate brand, such as individually packaged milk

chocolate muffins, to facilitate their entrance into this new category and provide more

opportunities for their brand to prove its value to consumers.

Our second recommendation includes improving their packaging. As mentioned in our

analysis of Hershey’s competitive environment, Snickers, one of Hershey’s main competitors,

has done just this and it has proved to be beneficial in encouraging the purchase of their candy

bars. Therefore, we would suggest that Hershey begin offering eye-catching, limited edition

packaging to inspire consumers to choose their bar over competing products. This packaging

28 https://www.hersheys.com/content/dam/corporate-us/documents/media-resources/sponsorship-promotional-fact-sheet.pdf

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would surround various topics in popular culture, such as a movie, tv series, art, or music. By

offering a series of designs under a particular topic, Hershey can position these bars as collectible

items to encourage consumers to purchase multiple bars at once or return to the store to purchase

a new design later. Offering themed packaging can also position Hershey’s bars to be more

valuable products to individuals who identify strongly with the themes being included on the

packaging. By appealing to these various fandoms, Hershey could potentially promote the sale of

their bars to consumers who might not have been in the market for a Hershey otherwise.

Our third recommendation includes appealing to the more health-conscious consumer.

This would include offering lower-calorie and reduced sugar versions of their existing products.

Market trends have shown an increasing demand for sugar-free confectionaires and many of

Hershey’s competitors are beginning to move into the “better for you,” category. Therefore,

proving that they can manufacture a product that is both delicious and better for the health of

their consumers will be crucial if Hershey wishes to remain a strong brand into the future.

Appeals to health-conscious consumers can also be made by changing the Hershey packaging to

highlight attributes that align with health trends, such as the fact that they do not include any

artificial ingredients which are all sustainably farmed. A move such as this would also help

strengthen the empathetic message that Hershey tries to communicate in all of their marketing

activities. By providing products that contribute to improving the long-term health of their

consumers, Hershey can once again prove that they value family and community and strive to

make the world a better place.

Our last recommendation would be to begin utilizing TikTok as a new media vehicle. We

believe that this could be a viable way to reach their target consumers who are rapidly beginning

to turn to TikTok for inspiration for family activities and recipes. Hershey’s competitors have yet

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to leverage this platform, meaning that Hershey could establish a first mover advantage in

increasing their brand awareness with those who frequent TikTok. This platform would also be

appropriate for the Hershey brand because of the opportunity it provides for the sharing of video

content. As the Hershey brand is extremely experiential in nature, utilizing TikTok videos could

aid in truly showing consumers how the Hershey brand can add value to their lives.

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Exhibits

Exhibit 1: Hershey’s Customer Decision Matrix

Exhibit 2: “Heartwarming the World: Break Up” Commercial (2018)

Customer Decision Factors

Importance to Customer

Snickers Milky Way Crunch Butterfinger Lindt (indirect)

Skittles (perceived)

Taste 9 - - - - - -

Price 9 = = + = + =

Nostalgia/ history/ tradition

6 + + + + + +

Health 6 - + + + = +

Wrapper 3 - = - = = -

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Exhibit 3: Adams Family Costume Contest

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Exhibit 4: Hershey’s Social Media Homepages (Instagram, Facebook, Pinterest, Youtube,

and Twitter)