Our Company Is Hersey Reese's Action Programs Concrete Marke

Our Company Is Hersey Reesesaction Programs Concrete Marketing Action

Our company is Hersey Reesesaction Programs. Develop concrete marketing actions that you plan to implement within the first year, detailing what will be done, when it will be done, who will execute it, and how it will be carried out. Additionally, provide an estimate of the budget, forecasting revenues (including units sold and average net sales price) and costs associated with production, distribution, and marketing. Calculate the projected profit from these figures. Outline how the promotion budget will be allocated across different promotional activities, specifying the amount assigned to each. For the financial section, include a simple two-year forecast and a breakeven analysis.

Paper For Above instruction

Introduction

Hershey's Reese’s brand is a prominent player in the confectionery market, known for its peanut butter cups and related products. Developing a concrete marketing action plan for the first year involves strategic initiatives aimed at increasing sales, enhancing brand visibility, and building customer loyalty. This paper outlines detailed marketing actions, budgeting, revenue and cost forecasts, and financial analysis, including breakeven points, to guide the brand's initial growth phase.

Concrete Marketing Actions and Implementation Plan

To achieve substantial market penetration during the first year, Hershey’s Reese’s will implement targeted marketing actions across multiple channels. The first action includes launching an integrated advertising campaign combining digital and traditional media. This campaign will commence in the first month, with advertisements on social media platforms, television, and outdoor billboards. The digital segment will focus on engaging younger demographics through targeted ads and interactive content, managed by the company's digital marketing team, led by the Social Media Manager.

Complementing advertising, Hershey’s Reese’s will initiate a sampling program in key retail outlets during months three to six. The sampling will be coordinated by the sales team and executed in high foot-traffic locations such as shopping malls and supermarkets, to boost product trial and awareness. Moreover, a promotional partnership with a popular entertainment event is planned for months five and six, involving sponsorships, on-site branding, and giveaways, overseen by the Marketing Manager.

To foster customer engagement and loyalty, the company will introduce a loyalty rewards program via a mobile app by month seven. The program, managed by the Customer Relationship Management (CRM) team, will incentivize repeat purchases through points accumulation and exclusive offers.

Throughout the year, Hershey’s Reese’s will engage in social media campaigns emphasizing seasonal themes, leveraging influencer collaborations, and conducting contests. The content creation and influencer partnerships will be coordinated by the Digital Content Team.

Finally, in the last quarter, a limited-edition product line linked to holidays or special occasions will be launched to stimulate sales and create excitement, managed by the Product Development Department.

Timeline and Responsibilities

| Activity | Timeline | Responsible Party | Execution Details |

|---|---|---|---|

| Digital advertising campaign launch | Month 1 | Digital Marketing Team | Planned social media ads, TV, outdoor ads |

| Retail sampling program | Months 3–6 | Sales Team | In-store sampling at malls, supermarkets |

| Entertainment sponsorship | Months 5–6 | Marketing Manager | Event branding, giveaways |

| Loyalty program launch | Month 7 | CRM Team | Mobile app development, marketing |

| Social media campaigns | Months 1–12 | Digital Content Team | Seasonal campaigns, contests |

| Limited-edition product line | Last quarter | Product Development | New product launch |

Budget and Promotion Allocation

The total promotional budget for the first year is projected at $2,000,000. The allocation plans are as follows:

- Digital Advertising: 40% ($800,000)

- In-store Sampling: 20% ($400,000)

- Sponsorship and Event Branding: 15% ($300,000)

- Loyalty Program Development: 10% ($200,000)

- Social Media Campaigns and Influencer Partnerships: 10% ($200,000)

- Limited-Edition Product Launches: 5% ($100,000)

This distribution ensures a balanced investment across channels to maximize outreach and engagement.

Financial Forecast and Analysis

Using industry data, the forecast estimates mean annual sales volume for the first year at 10 million units with an average net sales price of $1.50 per unit. The projected revenue, thus, totals $15 million. The costs include production, distribution, and marketing expenses.

Estimated costs:

- Production costs per unit: $0.50, totaling $5 million

- Distribution costs: $2 million

- Marketing expenses (including promotional activities): $2 million

The total costs sum to $9 million, resulting in an estimated gross profit of $6 million in Year 1.

For Year 2, assuming a growth rate of 10%, sales volume will increase to 11 million units, and revenue will be approximately $16.5 million. Marketing and operational efficiencies are expected to reduce costs slightly by 5%, bringing total costs to around $8.55 million, leading to projected profits of about $7.95 million.

Breakeven Analysis

The breakeven point is when total revenue equals total costs. Calculating the breakeven units:

- Fixed costs (marketing, distribution, fixed production overhead): $4 million

- Variable cost per unit: $0.50

- Selling price per unit: $1.50

Breakeven units = Fixed costs / (Selling price – Variable cost) = $4 million / ($1.50 – $0.50) = 4 million / $1.00 = 4 million units.

Therefore, Hershey’s Reese’s must sell at least 4 million units annually to break even, which is achievable given the first-year forecast of 10 million units.

Conclusion

Implementing a strategic, well-budgeted marketing plan will significantly enhance Hershey’s Reese’s market share and profitability in the first year. Through targeted advertising, in-store promotion, sponsorships, loyalty programs, and new product launches, the company can foster customer engagement and achieve sales growth. The financial forecasts and breakeven analysis indicate a healthy outlook, with substantial room for growth and profit maximization.

References

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