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Copy of Hershey's 2

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Fanny Andryani

on 8 January 2013

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Transcript of Copy of Hershey's 2

Dong Jerome James Myrene Strategic Management : The Hershey Company Company Profile : Founded by Milton S. Hershey on 1894. Founder : Products: Hershey's
Hershey’s Kisses
Jolly Rancher
Ice Breakers headquartered in the United States in Hershey, Pennsylvania.
markets confectionery products in over 50 countries worldwide,
employs more than 13,000 people and have revenues of more than $5 billion per year Background: Mission : Core Values: Industry Analysis: Source: http://notesdesk.com/notes/strategy/porters-five-forces-model-porters-model/ Porter's Five Forces Supplier: Confectionery Industry primary requires raw materials such as Cacao and Sugar. These two raw materials play significant roles in the movement of prices related to this industry. Though regulation is being observed for these resources, other external factors still plays a big factor in its movement. (Global events, Climate, etc..) Cacao: Sugar: Source: http://www.indexmundi.com/commodities/?commodity=sugar Source: http://www.icco.org/statistics/cocoa-prices/monthly-averages.html?currency=usd&startmonth=01&startyear=2010&endmonth=08&endyear=2012&show=graph&option=com_statistics&view=statistics&Itemid=114&mode=custom&type=1 Buyer: Potential Entrants: The threat of new entrant is low because of the existence of the following factors :
Distribution / Network Substitute: The threat of substitutes of chocolate and cocoa industry is high as people are becoming more health conscious over time and are trying to find alternatives for chocolate and cocoa flavors in their daily consumption. There are also many products for snacks and non chocolate snacks in the market as a whole. Industry Rivalry: Although chocolate are slightly differentiated products, the rivalry amongst the key players is high with respect to the following factors:
Network / Distribution
Advertisement / Marketing Company Updates: Acquisition: On January 19, 2012, the Hershey completed the acquisition of Brookside Foods, LTD, a privately held confectionery company based in Abbotsford, British Columbia.

Brookside produces great-tasting products based on a unique formula for making chocolate-covered fruit juice pieces, traditional chocolate-covered nuts and dried fruit. *The acquisition of Brookside can be an opportunity for Hershey to expand their portfolio, network and resources. Source : http://www.businesswire.com/news/home/20111208006310/en/Hershey-Reaches-Agreement-Acquire-Brookside-Foods-Ltd. Announcements: Source: http://www.businesswire.com/news/home/20120625005858/en/Hershey-Details-Strategy-Continued-Growth-Announces-Long-Term SWOT largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery.

seasonal and limited edition products

Experiential marketing

Hershey Center for Health and Nutrition heavy reliance on US domestic sales

limited products mainly chocolates acquisition and joint ventures

further development and advertisement of healthy and organic products.

global seasonal and limited products

diversification of products Competitors product scope

resources and raw materials Competitive Profile Matrix Thank you! Thank you! Buyers play a significant role on the movements of products in the market. Products are dependent as to the buyer’s demand. The higher the demand of buyers the higher the chances of the product being reproduced. Below are some factors that buyers do consider:

Need Ranks :
# 1 - Nestle
# 2 - Mars
# 3 - Cadburry
# 4 - Hershey
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