Hershey’s Marketing Strategy

Hershey’s Marketing Strategy
Name
Institution Affiliation

Hershey’s Chocolate
Hershey’s chocolate is one of the leading producers of chocolate in North America. Although the company is well known for the production and distribution of quality chocolate products, it also produces food and beverage enhancers as well as gum and mint refreshment. The chocolate manufacturing giant operates solely in the production, marketing, and distribution of chocolate and confectionary products. Among the most common of the chocolate products are the Hershey’s kisses. The kisses are small in size, flat-bottomed, and conical shaped and were first produced in 1907 (Reference for Business, 2007). Currently, the company produces more than eighty million pieces of the Hershey’s Kisses every day. Other chocolate products include the Reese’s, Brookside, Kit Kat, Take5, Almond Joy, York, and Mounds.
Hershey’s chocolate has a well-outlaid distribution network that distributes its products to over 80 countries in North America, Europe, and Asia. The products are distributed to these regions by agents such as Old Navy when the company is not in a position of distributing the products by itself. The company also relies on wholesalers and retailers to distribute the products to the consumers. To enhance the distribution process, Hershey utilizes grocery and drug stores, vending machines, gas stations, hospitals, and wholesale clubs. Consumers who cannot access the facilities can purchase Hershey’s chocolate through the online platforms such as Amazon, eBay, and Bigbasket.

As a premium brand, Hershey’s chocolate sells at a higher price compared to other chocolates. The prices vary depending on the size and flavor. For instance, the 25 lb. Kisses sell at $115.99 while the 1lb. Kisses milk chocolates cost $25 (Hershey’s Store, 2018). The consumers of the chocolates are the local middle and upper-class population as well as foreign tourists.
Unlike other companies, Hershey chocolate succeeded without advertising its products and only changed its logo over time as communicate its missions more effectively. However, the rise of new companies in the industry pushed Hershey to use traditional advertising methods. The company mainly utilized business to business trade journals such as the confectioner’s journal to promote its products (Parcell and Lamme, 2013). The primary aspects portrayed in the journals were self-sufficiency, purity of the dairies and the ingredients used by the company, and the technology employed in the manufacturing process. Currently, the traditional advertising methods have been substituted with TV Ads, Magazine Ads, and electronic billboards. Furthermore, the company uses social media platforms such as Facebook, Twitter, and YouTube to help them promote their products.
Hershey marketing strategies are focused on creating strong brand equity, product innovation, and provision of high-quality products. The company’s primary marketing strength is brand awareness and loyalty. Due to the success of the marketing strategies employed by Hershey, the company dominates on the North American chocolate market in both bulk and single-serve product supply. The company thus enjoys some internal strength such as exporting the products to over eighty countries and attaining a sale of over four billion dollars. At the same time, the marketing strategies face several threats such as the presence of other companies such as Mars who dominate the market in Mexico and some European countries. Furthermore, there has been a reduction in the number of workers and land for cocoa growing which threatens their production capacity. Following the threats and weaknesses, the marketing managers should adjust their marketing strategies. For instance, the company’s reliance on North American market is a weakness which can be resolved by expanding their supply to African countries. They should also diversify the range of personalized bars they offer for weddings, birthdays, and baby shower.

References
Hershey’s store (2018). “Hershey’s Kisses.” Retrieved (February 26, 2018) http://www.hersheysstore.com/category/shop-by-brand-kissesParcell, L. M., & Lamme, M. O. (2013). Promoting Hershey: The Chocolate Bar, The Chocolate Town, The Chocolate King, Journalism History 38,4, 178-206.
Reference for Business (October 8, 2007). “Hershey Foods Corporation.” Retrieved (February 26, 2018) http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html