Hershey’s Company Perceptual Map

Hershey’s Company Perceptual Map

In the recent past, firms in the confectionery industry have committed themselves to producing healthy candy in order to satisfy clean snacking buyers. Hershey is, for instance, committed to transparency, responsible raw material sourcing, and simple ingredients. Nestlé is committed to eliminating artificial flavors and Food and Drugs Administration certified colors from candy products. Mars, just as Hershey and Nestlé, has developed a five-year plan to identify natural flavors that do not only meet, but also satisfy taste criteria as it strives at eliminating artificial colors from its extensive product portfolio.

With this in mind, it is important to prepare a perceptual map for Hershey’s products to determine the company’s market position and how consumers perceive its product attributes, especially in relation to price and quality. Hershey Company has 13 popular brands, including Almond Joy, Mounds, York Peppermint Patties, Payday, Kit Kat, Mr. Goodbar, Krackel, Whatchamacallit, Take 5, Heath, Skor, Dagoba, Fifth Avenue, and Zero Bar (Hershey’s Chocolate World, 2015). From a personal perspective, I prefer Skor and Mr. Goodbar because they are high quality products irrespective of their prices. Skor, for instance, is a unique product that is distinct from Hershey’s other candy lines, with its distinct crunchy and creamy texture.

Hershey’s Chocolate World (2015) indicates that the high quality and unique taste of Skor make it a decidedly Hershey’s candy bar. Mr. Goodbar is one of the company’s pioneer products, and its longevity is attributed to its pleasant simplicity, comprising thick milk chocolate mixed with pieces of raw peanuts. The product’s crunchy and creamy taste exemplifies high-quality candy. This product information can assist the firm in understanding consumer perceptions regarding nutritional content and making necessary product adjustments, especially when competitors like Nestlé or Mars outperform Hershey in nutritional value.

To better understand the market positioning of Hershey’s products, a perceptual map can be developed based on attributes such as price and quality. Perceptual maps, also known as positioning maps, are diagrammatic techniques used to visualize customer perceptions of organizational or product attributes (Hawkins & Mothersbaugh, 2010). Such maps are instrumental in developing marketing positioning strategies—either filling market gaps or competing directly against competitors by positioning Hershey’s products in specific segments.

In this case, Hershey can aim to position products like York Peppermint Patties, Take 5, Payday, Fifth Avenue, and Whatchamacallit at a medium price, medium quality position to increase market share. Gaps exist in the low-price, low-quality, and low-price, high-quality segments. However, the low-quality and low-price segment is unattractive because consumers are unlikely to purchase low-quality products at any price. Conversely, positioning high-quality products at low prices is economically unfeasible for Hershey, as it would not generate profit to sell premium products cheaply.

Therefore, the perceptual map suggests that Hershey should focus on consolidating its medium-price, medium-quality segment while avoiding low-quality or unsustainably priced high-quality products. This strategic positioning allows the company to attract consumers seeking value without sacrificing quality or profitability (Hawkins & Mothersbaugh, 2010). The perceptual map thus becomes a useful tool for visualizing where Hershey’s products stand relative to competitors and where strategic repositioning efforts can be most effective.

Overall, perceptual mapping is a valuable technique for Hershey to analyze and optimize its product portfolio. It helps to identify market gaps, understand consumer preferences, and craft marketing strategies that improve market share and brand strength in the highly competitive confectionery industry. As consumer demands shift towards healthier and responsibly sourced products, Hershey’s ability to reposition its products accordingly will be critical for maintaining competitive advantage in the evolving marketplace.

Paper For Above instruction

In the highly competitive confectionery industry, perceptual mapping serves as a vital strategic tool, guiding companies like Hershey to understand consumer perceptions and position products effectively within the marketplace. Hershey's, with its extensive product portfolio including iconic brands such as Mr. Goodbar, Skor, and Almond Joy, faces the challenge of aligning market positioning with evolving consumer preferences, particularly the shift towards healthier, responsibly sourced candies (Hershey’s Chocolate World, 2015). A perceptual map highlighting dimensions such as price and quality enables the firm to visually analyze where its products stand relative to competitors like Nestlé and Mars, and identify opportunities for targeted repositioning.

The development of an effective perceptual map requires identifying the critical attributes valued by consumers—here, primarily price and quality. The visual representation typically features a two-dimensional grid with axes representing these attributes, dividing the market into quadrants: high price–high quality, high price–low quality, low price–high quality, and low price–low quality. Based on market data and consumer insights, Hershey’s product positioning can be plotted within this grid. For instance, the company’s premium offerings, like Skor and Mr. Goodbar, are perceived as high-quality products. Conversely, some of the more affordable and mass-market items fall into the medium or lower segments.

Analyzing the perceptual map reveals opportunities for strategic repositioning. For example, Hershey could focus on strengthening its presence in the medium price–medium quality segment, targeting consumers seeking value and quality without premium pricing. By positioning products like York Peppermint Patties, Take 5, and Fifth Avenue in this middle segment, Hershey can capture a broader customer base and increase market share. Furthermore, the perceptual map highlights a market gap in the low-price, high-quality segment, which represents an attractive opportunity if the company can develop more affordable high-quality products or reposition existing lines accordingly. However, creating low-quality, low-price products is generally undesirable, as consumer perceptions associate quality with price, and offering low quality at a low price may harm brand reputation.

Strategic implications derived from the perceptual map suggest Hershey should avoid low-quality, low-price offerings to prevent damaging its brand image. Instead, the company should emphasize maintaining high standards while exploring opportunities to competitively price middle-market products to appeal to cost-conscious consumers. This approach is consistent with the industry trend toward clean labels and natural ingredients, which can be leveraged in product repositioning efforts to meet consumer demand for healthier options (Yu, 2017).

Furthermore, perceptual mapping can inform product development and marketing strategies by identifying specific target segments and tailoring messaging accordingly. For instance, emphasizing the natural ingredients and health benefits of certain products can strategically position Hershey’s offerings in the high-quality segment, appealing to health-conscious consumers. Similarly, promotional campaigns can focus on affordability and value for money in the medium-price segment to attract budget-conscious shoppers.

In conclusion, perceptual mapping provides invaluable insights into Hershey’s market positioning and can guide strategic decisions to optimize product placement and competitive advantage. As consumer preferences continue shifting towards healthier and more transparent products, Hershey’s ability to reposition and adapt its portfolio accordingly will be key to sustaining growth and market share in the dynamic confectionery industry. By continuously analyzing consumer perceptions and adjusting its marketing and product strategies, Hershey can maintain its relevance and drive long-term success.

References

• Hawkins, D. I., & Mothersbaugh, D. L. (2010). Consumer behavior: Building marketing strategy (11th ed.). Boston, MA: McGraw-Hill Irwin.
• Hershey’s Chocolate World. (2015). 13 candy bars you didn’t know are made by Hershey’s. Retrieved from https://www.hersheys.com/our-products/2015/portfolio
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