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Abstract
“Sourballs, peppermint drops, fudge-Milton Hershey loved candy. ... Hershey became one of the most well respected businessmen in the United States. Most recently, the Hershey Corporation has had increased difficulty with its’ cash flow. ... It is the purpose of this paper to provide a Marketing Plan with which the Hershey Food Corporation will increase revenue in order to repay the loan recently provided by the state of Pennsylvania. The Marketing Plan will include newly defined objectives, as well as strengths, weaknesses, opportunities, threats and trends (SWOTT) as they relate to a newly proposed marketing plan for the Hershey Company.
Five-Year Marketing Plan
Hershey Foods Corporation
Table of Contents
1. ... Company Description
The Hershey Chocolate Company, known today as the Hershey Foods Corporation, was started as a subsidiary of Milton S. Hershey’s Lancaster Carmel Company 1894 in Derry Church, Pennsylvania, later to become Hershey, Pennsylvania. Six years after the development of the Hershey Chocolate Company, Hershey sold his Lancaster Carmel Company and invested in the development of what would later become the largest chocolate manufacturing plant in the world (Burford, 1994). In 1905 Hershey opened the manufacturing plant and began mass production of milk chocolates for both the United States and abroad. Today, products are available in 90 countries worldwide (Hershey Foods, 1995-2002).
The Hershey Foods Corporation is now the leading North American manufacturer of quality chocolate, non-chocolate, confectionery and chocolate-related grocery products. Included today in the Hershey Foods Corporation list of principal brands are: Almond Joy, Mounds, Cadbury Cream Eggs, Hershey Cookie ‘n’ Cream, Hershey Nuggets, Hershey KISSES, Hershey Hugs, Jolly Rancher, KitKat, Milk Duds, PayDay, Reese’s, Reese’s NutRageous, Sweet Escapes, TastieTations, Twizzlers, Whoppers, as well as York Peppermint Patties. ... Strategic Focus and Plan
Mission/Vision
Hershey Foods mission of maintaining its “number one position in the North American confectionery market, remaining the leader in U. ... chocolate related grocery products, and to build leadership positions in selected international markets” (Hershey Foods, 2002) will continue to be the primary mission of the organization. This marketing plan will outline how the company will increase revenue through product sales to repay the state of Pennsylvania’s loan within five years rather than the agreed upon six years. ... The loan from the state of Pennsylvania was also requested after an attempt to sell part of the Hershey Company to Wrigley, Jr. ... was terminated by the Milton Hershey School Board of Directors (Ackman, 2002 para 2,3). ...
Goals
After a review of the most recent data (Hershey Foods, 2002), on the current economic status of the Hershey Corporation, the following goals were developed:
▪ Non-financial
1. ...
Core Competency and Sustainable Competitive Advantage
Hershey Foods projects to increase revenue such that pay off of this year loan to the state of Pennsylvania will be complete prior to maturity date due to positive risk taking and diversification in the form of new product development, current product line expansion and other capital ventures. To complete these tasks, Hershey Foods will diversify its cash flow to meet the needs developed from the new ventures. ...
Product Supplies and Distribution
The following have been identified as supplies: the current warehouse and distribution center in Hershey, PA, international warehouses in Canada, Mexico and Europe, the Internet paper products, plastics, cocoa, milk and milk products, vanilla, as caramel, taffy, chewing gum, peanut butter, wafers, well as various nuts. In 2001 raw materials accounted for $50,000,000 of the yearly inventory (Hershey Foods, 2002).
Competition
The following have been identified as competitors to the Hershey Foods Chocolate Division: M&M Mars, Nestle, Godiva Chocolate, Wrigleys Gum, as well as Toberlone. ... SWOTT Analysis for Hershey Corporation
Internal Factors Strengths Weaknesses
Management Younger upper management team may have new research and development ideas for the company. Newly formed management team including the current CEO has a limited number of years in the Hershey Corporation and is still in transition. ...
Marketing Name recognition, distribution of products throughout the world, variety of products.
Merchandising displays which deliver superior sales Marketing cost = 17% of yearly sales,
Finance Continued growth potential as a result of product development. ...
Manufacturing Quality chocolates over 90 years have earned Hershey a reputation for excellence. ... SWOTT Analysis for Hershey Corporation
External Factors Opportunities Threats Trends
Consumer/Social Stable market with regular increases during September, December and April, give away games/prizes. ...
Company Analysis
Hershey Foods Corporation bases its marketing strategies on the quality of not only its product, that consist mostly chocolate, but of its name as the all American chocolate company, Hershey’s Chocolate. Hershey also currently devotes significant amount of resources to the creation, testing, distribution, and marketing of current product line expansions as well as new products. Hershey’s most important marketing strategy is developing a profitable business from its developing and creating of new and improved products to maintaining the core brands. Hershey also markets customer loyalty to the company and product. ... Telephone sample surveys, advertising research, product line profitability, and distribution and sales, however, one that may help Hershey Foods Corporation the most is Web site Data Analysis. This market research technique that Hershey Foods Corporation may possibly use to bring in new business can be beneficial especially to current product line expansion, new product development and to find out what consumers want or do not want. ...
Compared to other candy distributors such as M&M Mars or Nestle, Hershey can use the data analysis from the Internet Web site to determine what kind of candy product a customer may or may not want purchase during peek and off-peek seasons. ... During each season peek or off-peek, Hershey Foods Corporation will offer different surveys from their website www. ...
Hershey Foods Corporation might also utilize the Web site to generate orders and purchases of other products that would be the start of the distribution phase. ... Delays in completing a $112 million automated ordering and distribution system snarled deliveries, caused spot shortages of Hershey’s candy and inflated operating costs during the Halloween and Christmas seasons.
Approximate Word count = 4997
Approximate Pages = 20
(250 words per page double spaced)
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