It was founded in the year 1894. It operates in the North America with a market capacity of over 85%. It is one of the largest producer of high-quality chocolates and a leading provider of sugar confectionary and chocolate products globally. The company market its widen chain of products under close to eighty brand names in over fifty countries globally, this market capacity accounts to 15% of the total company’s revenue. The Hershey Company is the sole founder of the candy manufacturer, Milton Hershey. It also unveiled the Milton Hershey school for orphans and disadvantaged children. This is their core corporate responsibility across North America. Hershey Trust controls over 80% of the total voting rights of this company, it also administers the school. The financial records for the year ended December 2013 shows the total revenue collection of $6.22 million and net profit of over $742 million.
In comparison to its competitors, Hershey Company stands committed to the crowded market that offers no room for product differentiation. The brand name for this company contributes to its high market sales compared to its competitors. The company exhibits small advertisement volume is hence cutting the company’s cost of operations.
The Company’s Background
The Hershey Company (NYSE: HSY) is headquartered in Hershey. It is a global confectionary leader known for its specialization in the following chain of products; chocolate, sweets, mints and a wider variety of great tasting snacks. It has an employee capacity of over thirteen thousand across the globe who work daily to ensure delivery of quality and delicious products. The company owns renowned iconic brand names such as Reese’s, Hershey’, Jolly Rancher, Kisses and Ice Breakers. For over 120 years of operations, the company has always ensured goodness in the market delivery of its products. It operates under strict provision of ethical lines, fairness and sustainability which creates a positive impact to the society. The Company’s success can be credited to the Milton Hershey School that was founded by the company in order to help the orphaned and the disadvantaged students in the society.
The target customer for the company is simply everyone. The marketing slogan for the company is ‘There’s something for everyone!’ More so, on their first page on the US based website for the company, the quote is self-evident; “Hershey’s, America’s favourite for over a century!” Given the wider specialization in chocolates that are some of the appealing products to children, the company does not partake direct advertisements for these products to children. On the contrary, the company do advertise Hershey Track and Field games to children with the intent of brand promotion to children without necessarily focusing on chocolate and candy.
The product line for the company is self-evident for its positioning, the chocolate and candy brand names such as; Hershey’s Kisses, Hershey’s Bars, Reese’s Pieces, Mounds, Almond joy, Jolly Ranchers and Kit Kat, gives the company a stable market positioning compared to its competitors. The company is among the top position in chocolate sales with over 43% market share in the US. The company is also interested in diversifying into new products line with the following three categories; new forms off core products, new market segments and close-in variety of core products.
The company wider variety of brand names gives it the market stability to operate efficiently
There is no apparent source of weakness that the company is facing.
The available opportunity for the company is diversifying its operations into the wider global market
The accelerating rate of new market entrants gives the company plenty of threats in the market scene.
Local, National and International Competition
The company faces plenty of competition both in the local and international market scene. Huge market brand names are the source of stiff competition for the company within the global scene.
The company’s sealing agents for its products offers a threat to the environment. The company is, therefore, considering in diversifying into environmental friendly sealing apparatus.
The company’s primary objective is to stay committed to consumers and ensure high-quality provision of Hershey’s products.
Marketing tools and Strategies
The company markets its products through its brand names. It does not advertise the market provision of its products. The marketing strategy is diversification into a new product line.
The company operates under a budget of over $1.095 billion.
Tuttle, Brad. "Meet Hershey's New Candy Brand." Time.Com (2013): 1.