REPORT I: Marketing Background Economic Trends: Increase in cost for manufacturing such as packaging or ingredients. Chocolate bars are thought of as impulse buys, which means they require no thought. This is due to how inexpensive they are. However, if an ingredient such as sugar was to rise drastically, so will the cost of the chocolate bar therefore changing the buyer's perspective on the product class. Social, Demographic Trends: Although chocolate bars are thought to have been more enjoyed by a younger consumer, crispy crunch has always focused towards older demographics. This is shown through their mature packaging commercials. Healthier Living: Consumers are now watching what they eat, and want to avoid products that contain ingredients that have become deemed as fattening. Technology: Internet advertising is at an all time high, and consumers are attracted to products that they can get more information on over the Internet. Also, "buzz" promotion can be created efficiently via Internet. Political: French/English Packaging In Canada it is illegal not to have both English and French writing on the packaging. Ingredients: All ingredients must be labeled on the packaging. Market Analysis Total Canadian Size and growth: From 1996 to 2000, the chocolate market enjoyed a total growth rate of 19.1% with retail sales in 2000 producing a whopping $13.7 billion. Competitive Analysis Market Trends: Hershey Canada is one the largest competitors in the chocolate bar market. Hershey brands have a strong market value and a long history dating back to 1903. Hershey Canada owned three of the top five chocolate bars sold in 2000 to 2001. Hershey's three principle brands held ... ... middle of paper ... ...o recreate the image of the brand, window is still open for opportunity which either choice. Threats: (External) Cadbury must be able to create or revise a marketing mix that would keep a strong stand in the market against the big competition from Nestle and Hershey who both have very successful campaigns for their chocolate products. Positioning Statement A Crispy Crunch Bar contains the grouping of chocolate and peanut brittle that offers distinctive and delectable flavor. Eat your Crisply crunch bar before somebody eats it for you! "the only thing that tastes better than my Crispy Crunch, is someone else's Crispy Crunch." Target Market Definition Males and females 15-24 years old, who are currently working and make time for going out with friends and family. They are infrequent users because they are health conscious and may be into another brand.
While Europe and the United States account for most chocolate consumption, the confection is growing in popularity in Asia and market forecasts are optimistic about the prospects in China and India (Nieburg, 2013, para 9). According to the CNN Freedom Project, the chocolate industry rakes in $83 billion a year, surpassing the Gross Domestic Product of over a hundred nations (“Who consumes the most chocolate,” 2012, para 3). If chocolate continues grow popular in Asia, it stands to become even more lucrative.
“His decision to focus on the production of the Hershey milk chocolate bar is now hailed as one of the most important decisions in the history of American business” (Milton Hershey 1). Certain aspects of Milton Hershey’s life are impossible to not take notice of. A simple chocolate bar completely changed the world of business, Milton S. Hershey impacted the world in a huge way.
Today, Hershey owns or has made over eighteen different candies besides the Kiss, which include: Almond Joy, Cadbury Creme Eggs candy, Hershey 's Cookies 'n ' Creme candy bar, Hershey 's milk chocolate, Mounds candy bars, Hershey 's Nuggets chocolates, Hershey 's Hugs chocolates, Reese 's crunchy cookie cups, Reese 's Nut Rageous candy bar, Reese 's Peanut Butter Cups, Hershey Air Delight, Sweet Escapes candy bars, TasteTations candy, Twizzlers candy, Kit-Kat wafer bar, Whoppers malted milk balls, and York Peppermint Patties. All these candies have made Hershey’s a multimillion company (Bellis,
Claire’s Chocolates does not advertise, relying on word of mouth. Their promotional methods, therefore, are based on quality customer service, building customer relationships, high quality products and service delivery (Gronroos, 1994, 4). This creates the experience that makes customers want to talk about their product and this, therefore, creates new customers.
Milton S. Hershey was born in a small Pennsylvania town named Derry Township on September 13, 18571. He was the only child of Fannie and Henry Hershey. His mother was a Mennonite2 and moved often, which disrupted his education and could only finish 4th grade3. Hershey became an apprentice of a Lancaster candy maker for four years and started to get into the candy business. Milton opened his first candy store in Philadelphia on 1876 at the age of 184which failed after 6 years and went bankrupt on 1882.5 Milton then tried his luck at opening candy stores at Chicago and New York, both resulting in failure and went bankrupt again on 1886.6 When Milton visited Denver, he discovered how to mix fresh milk with caramel and returned to Lancaster to start a caramel business on 1883. 7his business proved to be a huge success and was named the Lancaster Caramel Company8. The success of this caramel company was the thing that set Milton as a candy maker and provided him with financial stability to start on his next interest, chocolate. Milton purchased his first chocolate-making equipment from a German company called J.M.Lehmamm Company on 1893 that was displayed in the World’s Columbian Expedition9. He started a sub-company called Hershey Chocolate Company under the Lancaster Caramel Company and began to produce chocolates. On 1900, Hershey sold his successful caramel company for $1,000, 0010and in order to set his sights to begin mass-producing chocolate. Hershey needed a place to produce that much chocolate and returned to Derry Township, PA to build his new factory on 1903. The Derry Township was an ideal location for producing chocolate because of its source of water, fresh milk, and workers. The factory, later named The Chocolate Factory was built on 1905 and used latest mass production techniques that produced the first milk chocolate that was made in America 11.
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
The Hershey Company is the largest manufacture of chocolate and candy in the United States. The Hershey Company produces and sells a wide variety of sweets, including gluten-free and sugar-free sweets (The Hershey Company). Some famous brands produce by The Hershey Company include, Hershey, Reese’s, York, Kit-Kat, Ice Breakers, Twizzlers, Almond Joy, and Mounds (The Hershey Company). Milton Hershey changed the candy making industry by turning his caramel business into a chocolate industry, caring enough to influence his company to help organizations and individuals, and by remaining successful for over a hundred years.
...terized as the “Henry Ford of Chocolate Makers.” With the help from his aunt, he established his own candy business in Philadelphia in 1876, he was merely 19. He mainly produced caramel confections, which he ended up selling for one million dollars after a trip to the chocolate centers of Europe. With the money, Hershey bought a farm in Derry Township, Pennsylvania, and built his chocolate factory. This became the nucleus of “Hershey, the Chocolate Town.”
During a "chocolate scare" in the early 1970's when the supply of chocolate went way down and the price went way up Hershey's who uses chocolate as a main ingredient more than Mars does had to cut down on spending in some area of business, so they chose to cut down spending on advertising. Mars saw this as an opportunity to spend more money on advertising and even more importantly M&M/Mars saw an opportunity to knock Hershey's out of the #1 spot. M&M's plan was successful, they used very aggressive marketing and they become the #1 chocolate/candy company in America.
In 2013, about 7.4 million tons of chocolate is expected to be consumed globally, totaling to nearly $110 billion (Pardomuan, Nicholson). I can honestly say that I will be one of the many people who contribute immensely to those massive quantities. Chocolate has always been one of my guilty pleasures, leading me to consider myself a “chocoholic.” After 20 years of eating chocolate, I learned there is more to chocolate than meets the eye. Many chemicals compose each delicious piece creating multiple psychological effects on the mind. With the knowledge of the chemical and psychological influences that chocolate has on the human mind and body and my own curiosity as to why I love it so much, this led me to ask: Why is chocolate considered such a pleasurable and craveable food?
From 2008 to 2012, the exports value (in current prices) of chocolate and other food preparations containing cocoa increased on average by 5.6% to reach its peak of 24.1 bln US$. During the same period, imports showed a similar development with an average increase of 5.5% to amount t...
The aim of this report is to present and critically estimate the market strategies of an international and a local chocolate manufacturer in Austria. The analysis is carried out in three stages – macro-environment (PEST analysis), micro-environment (Porter’s Five Forces Model) and company comparison (SWOT analysis). In the end, recommendations are given for the local brand Wiener Schokolade König.
The market can be further divided according to gender because both men and women have different tastes (chocolate shapes, packaging, and type of liquor). It is known that women are already consuming chocolate. In fact, the numbers of women that consume chocolate far outnumber the numbers of men that consume chocolate. It follows that there is a ready market for the commodity in question. Nonetheless, the reality that introducing alcohol to make liquor-filled chocolates increases the market.
Chocolate is rated in percentage of smoothness and sweetness. I am far from being a chocolate connoisseur, but I know what I like. As with everything, the price of chocolate seems to play into the comparison by the percentage it is given. The higher the percentage of the chocolate, because of the cocoa and less milk fats it contains, the more expensive the chocolate will become.
Building and enhancing a strong brand has been found to have profitable rewards in business, it has therefore become a prime priority for many firms. Customer-base brand equity (CBBE) is a model that has been adopted by Cadbury in order to build a strong brand that can compete with the other ones in the market. The company has followed the four steps of the model. The first step involves the establishment of appropriate brand identity, which includes enhancing customer awareness of the brand.