Identify And Describe Hershey’s Company And Its Business ✓ Solved

Identify and describe Hershey’s company, the business it is in, and the

Identify and describe Hershey’s company, the business it is in, and the marketing problem to solve; develop a marketing plan as a situational analysis. Determine a product or service needing a fresh look or redefinition to generate consumer interest and increase sales, or propose a new product or service. Describe Hershey’s company and the products or services offered. Identify the new or redefined product or service and state the mission and vision of the company, describing how the new or redefined product aligns with the mission and vision. The end deliverable is a Situational Analysis, described in the textbook (Peter, J. P., & Donnelly, Jr., J. H. 2019). Please refer to A preface to marketing management (15th ed.). Paper length: 4 pages, double-spaced, Times New Roman 12 pt; APA; include at least 6 references (can include 2 blogs/webpages).

Paper For Above Instructions

Introduction

The Hershey Company stands as a global leader in confectionery and snacking, with a history dating back to Milton S. Hershey’s chocolate-making innovations in the late 19th century. Today, Hershey operates a diversified brand portfolio across chocolate, confectionery, and snacking categories, reaching consumers worldwide through multiple channels. This paper undertakes a situational analysis to identify a marketing problem facing Hershey and to propose a strategic plan for a new or redefined product that aligns with the company’s mission and vision while expanding market share and revenue. The analysis draws on foundational marketing theory (Peter & Donnelly, 2019) and contemporary market data on consumer snacking trends and confectionery competition (Kotler & Keller, 2016).

Company overview and current product landscape

The Hershey Company, founded in 1894 and headquartered in Hershey, Pennsylvania, operates across multiple product categories, including iconic chocolate brands such as Hershey’s Milk Chocolate, Reese’s, Kisses, and Hershey’s Cookies ’n’ Creme, as well as other snacks and confections (The Hershey Company, 2023). The firm emphasizes scale, distribution breadth, and a broad brand portfolio that supports both impulse purchases and category expansion. Hershey’s strategy has included product line extensions, limited-edition flavors, and partnerships to maintain relevance in competitive candy aisles and growing snacking segments (The Hershey Company, 2024). Market position among global confectionery players remains strong, though growth faces pressure from health trends, private-label competition, and evolving consumer preferences (Statista, 2023; IBISWorld, 2023).

Marketing problem and opportunity

The central marketing problem for Hershey is sustaining growth amidst shifting consumer preferences toward healthier, higher-protein, and lower-sugar snacks, while maintaining the emotional appeal and indulgence that drive chocolate purchases. The company also faces heightened expectations around sustainability, ethical sourcing, and packaging. This situation presents an opportunity to refresh or redefine a product line or to introduce a new product that satisfies health-conscious demands without sacrificing taste or brand equity (NielsenIQ, 2023; Mintel, 2023). A situational analysis grounded in classic marketing frameworks (Peter & Donnelly, 2019) suggests focusing on a wellness-oriented chocolate/snack platform that complements Hershey’s core brand and extends its reach to a broader consumer base, including health-conscious millennials and families seeking snacks with functional benefits.

New or redefined product concept and alignment with mission/vision

Proposed product: Hershey Wellness Dark Chocolate Bars with reduced sugar, added dietary fiber, and optional probiotic presentation, marketed as a premium, on-the-go wellness-snack. Features would include: (a) sugar reduction of 25–40% relative to standard dark chocolate bars, (b) 3–5 grams of fiber per bar, (c) select probiotic strains to support gut health, (d) sustainably sourced cocoa and recyclable packaging. The product can be positioned as a “guilt-free indulgence” that aligns with a modern wellness narrative while preserving Hershey’s indulgent taste experience. A premium price tier would reflect the enhanced ingredients and health-forward positioning (NielsenIQ, 2023; Mintel, 2023).

Mission and vision alignment: Hershey explicitly frames its purpose around delivering joy and moments of goodness to consumers while pursuing sustainable growth. The development of a wellness-oriented line extends Hershey’s mission by combining enjoyment with health-forward benefits, aligning with a vision to be a trusted, admired, and future-facing global confectionery leader. The company underscores its commitment to responsible sourcing and packaging—dimensions that reinforce the sustainability component of the new product (The Hershey Company, 2024). The proposed product thus reinforces core brand values and broadens the brand story to incorporate wellness without abandoning indulgence.

Situational analysis: internal and external context

Internal strengths include a globally recognized brand portfolio, robust distribution networks, and strong cash flow enabling innovation and marketing investments. Weaknesses may include dependence on traditional chocolate formats and vulnerability to sugar-related consumer concerns. External opportunities include growing demand for healthier snacks, plant-based or lower-sugar alternatives, and demand for sustainable packaging; threats include increasing competition from specialty wellness brands, price sensitivity, and regulatory pressures related to sugar and labeling. A synthesis of industry data suggests a favorable environment for a wellness-oriented chocolate line if executed with credible ingredient claims, taste integrity, and transparent supply chains (Statista, 2023; IBISWorld, 2023; NielsenIQ, 2023; Mintel, 2023).

Marketing strategy: segmentation, targeting, positioning

Segmentation: health-conscious adults aged 25–45, parents seeking healthier options for children, and wellness-minded millennials who still crave indulgence. Behavioral segmentation includes frequent snackers, on-the-go meal replacements, and consumers seeking functional benefits from sweets. Targeting: primary focus on health-conscious adults and active families; secondary focus on premium chocolate enthusiasts who value taste and sustainability. Positioning: Hershey Wellness Bars as premium, delicious chocolate with a scientifically plausible wellness benefit (reduced sugar, added fiber, optional probiotics), produced with sustainable sourcing and packaging. This combination seeks to balance indulgence with health benefits and environmental responsibility (Kotler & Keller, 2016; Peter & Donnelly, 2019).

Marketing mix (4 Ps)

Product: Hershey Wellness Bars with low sugar, added fiber, probiotics; packaging is recyclable; clear claims supported by third-party certifications. Price: premium tier pricing, with a value line introduced after the launch to expand reach. Place: broad retailer footprint, with emphasis on mass-market grocery, club stores, and e-commerce; partnerships with wellness retailers. Promotion: integrated campaign combining digital advertising, influencer partnerships, in-store tastings, and sampling; content marketing emphasizing taste, health benefits, and sustainability; corporate social responsibility storytelling. The mix emphasizes credible health claims, sensory appeal, and sustainability credentials to drive trial and repeat purchases (Kotler & Keller, 2016; Peter & Donnelly, 2019).

Implementation plan and metrics

A phased launch over 12–18 months is recommended, beginning with product development, supplier audits for cocoa sourcing, taste testing, and regulatory validation; followed by pilot launches in select markets, then a broader rollout. Key metrics include sales growth in the wellness segment, market share changes in premium chocolate, unit volume by channel, price realization, and return on marketing investment. Customer feedback, social listening, and sustainability impact metrics (packaging recyclability, responsibly sourced cocoa) should be tracked to ensure ongoing alignment with brand promises (Hershey CSR reports; NielsenIQ, 2023).

Risk and mitigation

Risks include skepticism about health claims, price sensitivity, potential supply chain volatility for specialty ingredients, and competitive responses from established wellness brands. Mitigation involves rigorous third-party certifications, transparent labeling, robust QA, diversified ingredient sourcing, and a staged pricing strategy with compelling value propositions for early adopters. Ongoing consumer testing and market feedback loops will guide refinement (The Hershey Company, 2023; Mintel, 2023).

Conclusion

Hershey’s move toward a wellness-oriented product line aligns with current consumer preferences for healthier snacks and sustainable packaging while leveraging the company’s strong brand and distribution network. By focusing on credible health benefits, taste, and responsible sourcing, Hershey can refresh its portfolio, reach new consumer segments, and sustain growth in a competitive confectionery market. The situational analysis framework supports the rationale and guides execution, measurement, and adaptation as market conditions evolve (Peter & Donnelly, 2019; Kotler & Keller, 2016).

References

  • The Hershey Company. (2023). Form 10-K. Retrieved from The Hershey Company investor relations site.
  • The Hershey Company. (2024). Corporate Social Responsibility Report. Retrieved from The Hershey Company website.
  • The Hershey Company. (2022). Annual Report. Retrieved from The Hershey Company investor relations site.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  • Statista. (2023). Leading chocolate manufacturers worldwide by revenue. Retrieved from Statista database.
  • Euromonitor International. (2023). Chocolate confectionery market overview. Retrieved from Euromonitor database.
  • IBISWorld. (2023). Chocolate manufacturing in the US—Industry Report. Retrieved from IBISWorld database.
  • NielsenIQ. (2023). Global snacking trends report. Retrieved from NielsenIQ database.
  • Mintel. (2023). Plant-based and healthier snacks trends. Retrieved from Mintel database.

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