Hershey’s Kisses

MemoTo: CEO of Hershey’s Kisses

From: Lena Muldoon

cc: None

Date: June 4, 2015

Re: Buenos Aires Market

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Buenos Aires MarketHershey’s Kisses Company

Lena Muldoon

Table of ContentsExecutive Summary------------------------------------------1

Company Profile----------------------------------------------2

Goals, Objectives, Strategies, Tactics---------------------3

Situation Analysis--------------------------------------------4

Key Messages-------------------------------------------------5

Advertising Strategic Message Planner-------------------6

Timetable & Budget for the Campaign--------------------7

Evaluation Methods & Conclusion------------------------8

Appendix------------------------------------------------------9

Pitch Letter---------------------------------------------------10

Print News Release------------------------------------------11

Social Media News Release--------------------------------12

TV Ad Script-----------------------------------------------13-14

Radio Ad Script----------------------------------------------15

Product Fact/Sell Sheet-------------------------------------16

1

Hershey’s Kisses Chocolates plans to reach a new target audience in the South American country of Argentina.

Hershey’s Kisses Chocolate has relatively large success in the United States and European countries. Although the chocolates are available in South America, including Argentina, the demand and market is very small compared to other successes. In building a revenue and relationship of supply and demand with Argentina, Hershey’s Kisses Chocolates will be opened up to endless opportunities of marketing and profit. Argentina has a gigantic demand for chocolate already. There are countless companies that provide a range of types of chocolates seen at every kiosk, grocery store, and pharmacy in the country. Young students, in particular, frequent corner kiosks on a daily basis to find a quick treat. But there is nothing like Hershey’s Kisses. There is an open opportunity for Hershey’s Kisses to infiltrate the bite-sized chocolate snacks market of Argentina that would bring huge success for the company.

Hershey’s Kisses are quite hard to come by in Argentina. If they were available just as conveniently as the other chocolate available in the country, surely the demand would be there. Imagine if, at each corner kiosk in Buenos Aires, surrounded by the chocolate bars and minty gum, there was a jar of Hershey’s Kisses where young people could buy however many they please. It would attract customers and keep them attracted throughout time.

Recommendations also include a heavy advertising campaign. The biggest competition in Argentina would be Milka Chocolates, which come in a variety of bar-sized chocolates. Milka, although different in size from Hershey’s Kisses (which would end up benefiting Hershey’s Kisses), host a massive advertising campaign year-round in Argentina, specifically the capital of Buenos Aires. A heavy advertising campaign is necessary to begin infiltrating this market. A starting budget of $4 million to begin this campaign is recommended. The campaign includes radio, billboards, television, and magazine advertisements. This launching of this campaign in the Argentine summer (November-February) of 2015-2016 will take advantage of the carefree, vacation-like mentality of this time of year.

The key message for this campaign will be easy and care-free. The young people of Argentina are used to candy bars, not bite-sized chocolates. The tranquility of this snack is to be emphasized so as to appeal not only to the mentalities of the consumers during this time of year, but to continue to appeal to them throughout the year and beyond.

Expected profits are to exceed $10 million nationwide by July 2016.

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Since 1909, the Hershey’s Kisses product line has provided a variety of bite-sized treats all over the world. Hershey’s Kisses holds the image of a fun, relaxed, and playful treat that anyone can enjoy because there are so many options. The market is certainly the biggest in the United States and Europe, where sales reached a combined 5 billion just in the second quarter of 2014. Where the company seems to be lacking is, in fact, South America.

In Buenos Aires, Argentina, there is a huge market for chocolate, yet Hershey’s Kisses has not yet infiltrated it. Hershey’s Kisses would fit like a glove in this market because of its accessibility, variety, and care-free image. Corner kiosks are an incredible avenue for young people to find a daily snack, and Hershey’s Kisses would fit perfectly in them. If Hershey’s Kisses were available in this busy, beautiful, and huge city, it would open up a world of opportunity of the company. Sales would go up, future ideas would flourish, and the name of Hershey’s Kisses would be spread into a part of the world where it has never previously been.

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Goal: To begin sales of Hershey’s Kisses in Buenos Aires, Argentina corner kiosks to reach our target audience, those aged 10-25.

Objective: To begin sales during Argentine summer quarter to reach 150% profit turn in the first month.

Strategy: Launch an advertising campaign launched at the young audience who watch television nightly.

Tactic: Create a 30-second commercial for airtime during the most popular soap opera each night for the months of December-March.

Tactic: Create a 15-second radio commercial for airtime during the morning rush hour traffic for the months of January-March.

Objective: To exceed sales of Milka chocolates in Buenos Aires by 10% by the end of the first year of sales.

Strategy: Launch a social media campaign where participants are encouraged to share pictures of them with the chocolates and use a hashtag to enter to win a prize.

Tactic: Create a challenge where participants share photos of them with their chocolates with a hashtag to win a year of free Hershey’s Kisses chocolates.

Objective: Appeal to those that enjoy variety in their chocolates, reaching a 90% customer satisfaction review by 2017.

Strategy: Launch an advertising campaign in a magazine.

Tactic: Create a photo advertisement that is fun and relaxed that exemplifies the amount of types of Hershey’s Kisses, including the low-calorie option.

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The current brand image of Hershey’s Kisses is an established company that has been around for a long time. The brand image is one of a small, delicious treat that comes in so many varieties that it is hard not to be satisfied. The current brand image shows a fun, playful treat that anyone can enjoy. It is one that is not a quick snack, but rather a snack bought in bulk to keep for an extended period of time or for a group event or party.

The desired brand image of Hershey’s Kisses is a quick, on-the-go, delicious snack. The brand image would fit perfectly into the corner kiosk culture of Buenos Aires because these kiosks are a place where people stop in just for one minute to grab a snack. The desired brand image for Hershey’s Kisses is one of a quick snack that one can simply grab and go at the counter, and does not have to be bought in bulk but individually.

Inte

rnal

Fac

tors Strengths Weaknesses

1.Very prestige name-brand; everyone knows it

1. Has not previously been available in the country so public could be skeptical

2. Variety of flavors offers something for everyone

2. Could be not much room to go from here; have exercised all flavors, variations, etc.

3. A quick snack, small and an easy go-to 3. Dependence in US markets, hurts growth for international markets

Ext

erna

l Fac

tors

Opportunities Threats

1. Extending audience to South American cities, like Buenos Aires

1. Many other chocolate brands out there and always more developing

2. Infiltrating the “corner kiosk” market of Buenos Aires and its chocolates

2. Many chocolate brands in Buenos Aires that have been around for very long

3. Possibilities with size variety (minis, supersized)

3. Lower prices of private labels as competition

Positive Factors Negative Factors

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The key messages of Hershey’s Kisses in the Buenos Aires market include:

-Hershey’s Kisses is a quick on-the-go snack to be with you throughout your day. We understand the quick and fast-paced schedules of such a big city, and are the perfect snack to guide you on that journey. Our treats are easy to eat, easy to purchase, and easy to carry. This snack is the perfect one for your afternoon stop to the kiosk.

-Hershey’s Kisses is an affordable snack to guide you through your day. We understand that you are busy and that when you stop into a corner kiosk, it is to be in-and-out, leaving with a quick snack. Hershey’s Kisses intends on providing this to you, being easy to quickly purchase but also easy on your wallet. Hershey’s Kisses maintains the affordable kiosk prices that you are used to, and will continue to do so in the future.

-Hershey’s Kisses will treat all of your desired chocolate cravings. There are so many varieties of this delicious snack, there is no way that you won’t find something you love! Hershey’s Kisses provides a variety of flavors year-round, as well as special featured flavors during certain times of the year. This snack is variable and colorful, treating any type of chocolate craving!

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Product: Key FeaturesWhat is the product?

Hershey’s Kisses is a brand chocolate manufactured by the Hershey Company. The company was founded in 1905. Hershey’s Kisses is a bite-sized chocolate used for everything from snacks to recipes. Hershey’s Kisses is small, easily unwrapped, and accessible. Hershey’s Kisses comes in a variety of flavors, including seasonal flavors. Hershey’s Kisses is an international brand. A bag of Hershey’s Kisses sells for about $5.00US.

Direct Competitors and Brand Images Milka chocolates: The target audience for Milka is people who are on-the-go and have a sweet-

tooth. These chocolates are accessible anywhere from corner kiosks to major grocery stores, and many college students are seen snacking on these chocolate bars in class. The target audience is young and loves treats. The brand image is easily accessible, delicious, quick, and affordable. These chocolates can come with you on-the-go, or provide for a nice treat after dinner at home.

Kinder chocolates: The target audience for Kinder is young people ages 8-18. Kinder is very well-known not only in South America but in Europe, as well. The image is fun, carefree, and entertaining. Many of the chocolate snacks come with prizes or toys. Kinder is not as accessible as others because it is not as widely sold in corner kiosks, mostly only grocery stores or large chain convenience stores.

Indirect Competitors and Brand Images Granola bars: The target audience is young people on-the-go that simply need something to

continue to carry them throughout the day. Granola bars are the second-most common item sold in corner kiosks in Argentina, next to chocolate. The brand image is quick, healthy, and filling. They are seen as the healthier alternative to a quick snack in a kiosk store.

Other forms of candy: The target audience is young people, mostly college students, who look for a quick treat in a corner kiosk. Other forms of candy include skittles and other such small, bagged candies that are not chocolate. The brand image is delicious and easy to eat and carry with you.

Supporting Evidence: The Truth Hershey’s Kisses offers such a variety that there is something for everyone. There is also a low-calorie options of Hershey’s Kisses, which can provide a healthier but still

delicious treat. The affordable but satisfying flavor offered by these candies makes them accessible and sensible

for anyone. The prestige that the Hershey Company in general has for over 100 years provides a huge name

for the company and therefore its products.

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Tactic Start Date End Date Launch DateTV Ad December 15, 2015 February 1, 2016 December 15, 2015Radio Ad February 1, 2016 February 15, 2016 February 1, 2016Billboard Ad December 30, 2015 March 1, 2016 December 30, 2015Print Magazine Ad January 1, 2016 March 15, 2016 January 1, 2016Launch Party location confirmed

October 15, 2015 November 1, 2015 November 1, 2015

Announce Launch November 15, 2015 November 15, 2015 November 15, 2015Launch Party December 1, 2015 December 1, 2015 December 1, 2015Launch in stores December 20, 2015 December 20, 2015 December 20, 2015

Tactic Start Date End Date Dollar Amount TotalTV Ad Dec 15, 2015 Feb 1, 2016 $600,000.00Radio Ad Feb 1, 2016 Feb 15, 2016 $100,000.00Billboard Ad Dec 30, 2015 Mar 1, 2016 $500,000.00Print Magazine Ad Jan 1, 2016 Mar 15, 2016 $1,000,000.00Photoshoot/Production

Dec 1, 2015 Dec 3, 2015 $700,000.00

Salaries Dec 1, 2015 Apr 1, 2016 $1,000,000.00Launch Party Dec 1, 2015 Dec 1, 2015 $20,000.00

Subtotal $4,100,000.00

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The proposed evaluation methods include measuring sales as well as survey groups.

Measuring sales will tell us if we have reached our objectives for sales over the first few quarters. Measuring sales will also give us the ability to compare our sales to our main competitors’ sales, to see if we have infiltrated the market as successfully as we hope. These numbers will help us to evaluate future steps, as well as see if this market is successful for us in general.

Survey groups will be taken with the people of Buenos Aires, our target audience of young individuals, to see what they think of our products. Quantitative and qualitative research will be taken, using open-ended and closed-ended questions for the members of our survey to answer. We will also incorporate taste tests into these studies to see to what flavors this particular audience responds to the most positively. These results will tell us if our usual flavors reach this audience, as well as see how our target audience thinks of our products and if our desired brand image has been accomplished.

In conclusion, we are convinced that if we implement this plan, our infiltration of the Buenos Aires market will be successful. We expect that sales will increase, as well as open opportunities for more infiltration in Southern American markets. If this plan is implemented, our market will increase and our name will be spread beyond where it currently remains, further increasing sales and expanding opportunities for the company worldwide.

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Appendix

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To: MarielaWVasquez@KioskToday.comSubject: For Mariela Vasquez: The Newest Addition to Kiosks

Ms. Vasquez:

For years, kiosks have been the go-to corner store for everyone in Buenos Aires. Filled with chocolates, granola bars, and other quick snacks, it is the easiest way to fuel your day. Now, there is a brand new addition to the products: Hershey’s Kisses.

You’ve heard of Hershey’s Kisses. It’s a world-renowned chocolate treat that everyone loves. Previously, it hasn’t been a big player in the South American market, and not at all in Buenos Aires. But soon, that will change. Hershey’s Kisses is coming to Buenos Aires, and will be the newest quick treat to grab at every kiosk in the city beginning in December, 2015.

I think the story of Hershey’s Kisses coming to Buenos Aires is a vital one for Kiosk Today magazine to share. We at Hershey’s would like to personally invite you to our launch party in Buenos Aires on December 15, 2015. This event will provide more information for you to learn about the product coming to Buenos Aires, as well as learn a bit about our plans to infiltrate the Buenos Aires kiosk market.

We are offering this opportunity exclusively to Kiosk Today, so we would appreciate it if you could let us know about your attendance to the launch party by next Friday. We look forward to seeing you there!

I will call next Friday to see if you will be able to attend, as well as answer any questions you may have about the party or company. Thank you so much for your consideration.

Lena Muldoon

Lena MuldoonSocial Media CorrespondentHershey’s Kisses502-363-2348muldoonlena@gmail.com

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Hershey’s KissesNews ReleaseFOR IMMEDIATE RELEASE FOR MORE INFORMATION:July 1, 2015 Lena Muldoon

Public Relations Director(382) 493-2739muldoonlena@gmail.com

Hershey’s Kisses to open market in Buenos Aires, Argentina

CHICAGO—The Hershey Company will be extending its Hershey’s Kisses market into Buenos Aires, Argentina beginning December, 2015.

Previously, the company remained outside of the South American country. After researching the South American market and demand, the company has decided to further its infiltration of the South American market through Buenos Aires.

Hershey’s Kisses will begin its sales in the corner kiosks throughout the city, where customers, mostly young people, frequently stop in to buy a quick snack or treat to bring with them on-the-go. The Kisses will be provided at the counters of each of these kiosks throughout the city.

The flavors that will be sold upon the beginning of this market opening are the following: Milk Chocolate, Milk Chocolate with Almonds, Special Dark Mildly Sweet Chocolate, and HUGS Chocolate.

After testing this particular market, the Hershey Company will decide to expand into other Argentinian cities or not, as well as whether or not to add more flavors to the market.

The Hershey Company will begin with only Hershey’s Kisses, and after a period of surveillance and concluding success, will decide whether or not to provide the rest of their chocolate lines in the area.

The treats will be shelved in kiosks beginning in December, 2015.

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Hershey’s Kisses chocolates infiltrate Buenos Aires marketLine to be released and shelved December, 2015

June 5, 2015

News Facts Hershey’s Kisses will begin sales in Buenos Aires in December, 2015. The flavors sold will be Milk Chocolate, Dark Chocolate, Milk Chocolate with Almonds

and HUGS. The company has not previously released sales in the South American country. Sales will take place in all corner kiosks throughout the city. Hershey’s Kisses chocolates have not infiltrated a new country or city in this way since

2002. This addition will join seven other countries in the sales of Hershey’s Kisses. Other lines of Hershey’s products will not yet be sold.

Quotation “Hershey’s is incredibly excited for the opportunity to reach such an eclectic audience

through the addition of Buenos Aires in our market. We look forward to the opportunities that this brings.”

-Pamela M. Arway, Director of the Hershey Company “This is a great step the Hershey Company is able to take to continue to reach wider

markets and people with a variety of products.”-James M. Head, Finance and Risk Management at

the Hershey Company

Multimedia Photo (hi/lo resolutions): premiere shelf-day at kiosk in the most up-and-coming

neighborhood of Buenos Aires: Palermo Link to traditional news release (PDF) Audio (60 secs): Robert F. Cavanaugh (International Relations Chair of the Hershey

Company) introduces new line to Buenos Aires radio stations

Related Links

The Hershey Company online Hershey’s Kisses Twitter Page The Hershey Company International Twitter page Subscribe to Hershey’s Kisses International Facebook page Email the International Relations Chair of the Hershey Company for inquiries

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Title: Hershey’s Kisses comes to Buenos AiresClient/Sponsor: The Hershey Company Length: 30 secondsAir Dates: December 15, 2015-February 1, 2016

MUSIC:

(Bouncy and fun music. Establish, then under)

WS—Young college student walking through

streets of Buenos Aires (:03)

MS—Student glances at watch (:02)

CU—Student’s face, smiling and talking (:03) ANNOUNCER:

It looks like I have a few minutes before class to

get a treat from the kiosk.

WS—Student walking, talking towards camera

(:04)

I usually get one every day. My favorites are the

chocolates, but they’re always so messy!

MS—Student walking and talking towards camera

(:01)

But not anymore.

CU—Student in kiosk, purchasing a few

Hershey’s Kisses. Close up of hands doing

transactions (:05)

Hershey’s Kisses make the perfect solution to this

problem. They’re quick and easy to eat, and sooo

delicious.

MS—Student leaving kiosk, talking towards

camera and beginning to unwrap Hershey’s Kiss

(:05)

This new treat has finally come to Buenos Aires,

and now I have the perfect thing to snack on

between classes.

MS—Student entering school building, putting

Hershey’s Kiss in mouth (:02)

It’s the best new thing about Buenos Aires.

WS—Student smiling and laughing with her Welcome Hershey’s Kisses into your daily routine

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friends in class (:04) today. Available in all corner kiosks.

FADE TO BLACK AT :29

MUSIC:

(Up and then fade, out at :29)

RT—:29

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Title: Hershey’s Kisses are in Buenos Aires!Client/Sponsor: The Hershey CompanyLength: 15 secondsAir Dates: February 1, 2016—February 15, 2016MUSIC: Bouncy and fun music begins

(Establish, then fade)

ANNOUNCER: Psst! Have you heard? Hershey’s Kisses are

FINALLY in Buenos Aires! Yep, that’s right. In

every single kiosk in the city!

SFX: Music continues (Establish, then fade but

continue softly with music)

ANNOUNCER: There are four flavors, and you HAVE to try each

one today. Go to any kiosk, that’s right, ANY

kiosk in the city and try them out!

SFX: Music continues

ANNOUNCER: Hershey’s Kisses are finally here. Try them today!

SFX: Music (fade out at :29)

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-Hershey’s Kisses chocolates have been a product of the Hershey’s Chocolate line since 1907. It is not factually known how the product received its name, but it is believed that it is from the “kissing” sound that the machine made producing the chocolates when the product was first introduced.

-Before 1921, each individual chocolate was wrapped by hand. The famous plume coming from each chocolate was introduced around this time. Today, the chocolate-wrapping machine can wrap up to 1,200 chocolates in a minute.

-Today, Hershey’s Kisses is available in seven countries in Europe, Asia, North America, and South America.

-Hershey’s Kisses was the first Hershey brand to achieve $100 million annual sale outside of North America.

-Hershey’s Kisses is the company’s fastest growing brand globally.

-More than 40% of Hershey’s Kisses sales now come from outside of the United States.

-In 1976, the Hershey Company obtained a registered trademark for the foil wrapper look of the Hershey’s Kisses.

-The Hershey company currently has factories in Hershey, Pa., Oakdale, Calif., and Stuarts Draft, Va. Every day about 80 million Hershey’s Kisses chocolates are produced.

-Today, the permanent Kisses line includes Milk Chocolate, Almond, Caramel, Dark Chocolate, Chocolate Truffle, Peanut Butter, Hugs, and Mini Cookies. The current limited-edition Hershey’s Kisses flavors include Coconut Crème, Vanilla Crème, Strawberry Crème, Chocolate Cordial Crème, Candy Cane Bits, and Mint Truffle. Certain limited-editions change yearly.

-Apart from these permanent and limited-edition flavors, there have been over 50 varieties of Hershey’s Kisses chocolates throughout history, including holiday editions like Valentine’s Day, Christmas, and Easter.

-The Hershey Company employs about 13,000 people worldwide.

-The Hershey Company is considered one of the best to work for worldwide, due to its educational, financial, and retire-plan support.