Marketing Mix of Hershey


Assessment Task 2 -
Description of Task and Assessment Criteria 1)  Consider the companies Barry Callebut, Cargill, Mondelez, and Hershey. 1. With a focus on one of these companies identify the marketing mix of this organisation. 2. Consider the product, promotion, distribution and pricing strategy of this organisation. 3. Using a SWOT analysis, position your chosen organisation against the three other competitors listed above. a. Ensure your SWOT analysis is carefully explained. 4. Identify, with reference to at least 20 academic journal articles the sustainable marketing principles your chosen organisation is following. 5. Argue whether this strategy is successful or could be improved by following other principles. 




Hershey is one of the leading American food company and it is one of the world’s largest chocolate manufacturers. The company was headquartered in Hershey, Pennsylvania and it was set up by Milton Hershey in 1894. The initial name of the company was Hershey Chocolate Company and it was setup with the introduction of Hershey Cocoa. This cocoa product was the first product that the company has sold to its customers and thus it has targeted the upper class segment of the society. However, with the passage of time, the company has shifted its targeted market for the common mass and thus it has kept the middle class society happy. Presently, the company sells the product in more than 60 countries and the company is also a member of the World Cocoa Foundation. The chocolates of Hershey around United States because of their wide network of distribution. The company also has manufacturing plants in Virginia, Hazelton, Illinois, Mexico, Memphis and many other locations ( 2018). This paper will highlight the marketing mix of Hershey. It will also carry out a SWOT analysis and thus compare it with Barry Callebut, Cargill and Mondelez. Further, the sustainable practices adopted by the company and the strategies to develop these sustainable practices have also been discussed in the paper. 

Marketing Mix of Hershey

Hershey is one of the leader in the US confectionary market and the company has focused on brand equity, superior quality product and product innovation. The main strength of the company is its brand awareness and the brand loyalty in the market. The product, price, promotion and distribution strategy of Hershey is analysed below: 

4Ps of Hershey

Product:Hershey is one of the most popular brands that offer sweet sauces, chocolates and syrups. There are different varieties of products available in different size and shapes. The company has been constantly undertaking product innovation and thus it has grown rapidly with the passage of time. The conical shape of Hershey kisses and the other innovative hand rolled packages attracted the customers because of its appeal. The company has positioned its product as healthy for the kids and delicious. The products of Hershey generally targets customers of the age group of 15-24 years. It has been found that the individuals who love to have biscuits of honey and chocolate flavour prefers to purchase the biscuits of Hershey. The company has positioned itself in such a way so that it can attract the teenagers and the children and thus they can have a better time with their friends. There are different biscuits, chocolate products and crackers of Hershey that are available in the Australian marketplace. The famous “Tim Tam” biscuit that is available in different countries is famous for its chocolate cream filling among the children. On the other hand, there are different flavours of this biscuit and one of them is the “Tim Tam Crush” that is popular among the children. Choco ace, another product of Hershey is also common among the children and thus the company has gained a profitable share in the market due to its wide and preferable products ( 2018).

 The new productthat has been launched by the company is considered to be much better in the eyes of the consumers. The chocolate covered honeycomb is one of the leading products of the company and thus it has attracted a large customer base. The type of chocolate that is manufactured by Hershey Cocoa gives a much better taste than any other products and thus they have gained better position in the eyes of the chocolate lovers.  The products of the company have focused in the creation of healthy lifestyle for the consumers and thus this has strengthened the position of the company among the customers. 

Price:Hershey is considered to be a premium brand and thus the price of the products is comparatively high in relation to other products in the market. The company has targeted the upper middle class and the foreign tourists as well as the urban population of a particular country. The process of the products varies from $10 to $50. It can be said that there has been no price hike in the products and thus they are preferred by the customers over the period of time. The products of Hershey are famous in the Australian marketplace and thus it has followed penetration pricing strategy in the market. The other competitors of Hershey offers the same products at a much cheaper price and thus this has encouraged Hershey to develop more innovative strategies so that it can develop in a short span of time. It can be said that the development of the new product will lead to the profitability of the brand and thus it will help to earn sustainability over the long span of time. The penetration pricing strategy thus, will be considered beneficial for Hershey( 2018). 

Promotion:The products of Hershey will have to reach the targeted audience i.e. the youth aged between 15-254 years irrespective of the gender. The youth are considered to be the most active group who are enjoying the products of the company and thus this was possible with the advertisements over internet and other modes of communication.  The web campaigns included interactive and the social media campaigns such as Facebook, Twitter and other modes are considered to be effective in the advertisement of Hershey. It can be said that in order to reinforce the idea of Hershey, many attractive pictures and advertisements including social media advertisements has been developed by the company. On the other hand, the consumers are also encouraged to share their image while consuming their products and thus they can also share the stories of their brand. It can be said that the people of Australia are so active in sports that they prefer to consume the different products of Hershey and thus they can be regarded as the targeted market of the organisation. The public relation events such as the football league or other matches are also sponsored by the company and thus the different types of television campaign has helped in the growth of the organisation. The commercials that run on the television has also attracted the customers and thus Hershey has gathered a strong customer base with these advertisements. Moreover, the official websites of Hershey has also been successful in the promotion of the product and thus this has led to the success of the company( 2018).

Distribution:The products of Hershey are distributed through the dealers and the wholesalers and thus they play an active role in the distribution of product in the market. This is considered to bring advantage to the company and thus it has helped the customers to get the brand experience. As the tastes of the consumers vary, it was the responsibility of the company to capture the market and thus compete with the other global leading firms. On the other hand, research also indicates that the company has faced in the initial stage and thus it must try to adopt other strategies so as to successfully expand in the market. When the company entered a new market, it is the responsibility of the dealers and the wholesalers to represent the product in such a way that they are preferred by the customers of that market and thus this will help in the establishment of strong customer base in a quick span of time. The centralised management structure of the company and the generation of better sales have helped in the long run growth and success of the organisation. Hershey has also experienced difficulties in the decision-making process and thus this has helped the company to expand within the stipulated period of time with the available resources. The company has also controlled its expansion and thus this has negatively affected the success of the introduction of new product in the market. The website of the company has also played a vital role in the distribution of product and thus it has become easier for the customers to navigate and purchase the products of their choice. The online community of Hershey’s product is also considered to be the most important distribution and promotion network of the company( 2018). 

SWOT analysis of Hershey with Barry Callebut, Cargill and Mondelez

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• Hershey is known worldwide because of its sourcing and manufacturing in different countries.
•    The company has a strong human capital and thus can manage its staffs in an effective way.
•    The production capacity is very high and thus they have better relation with the customers
•    Hershey has strong distribution system in the market and thus they follow modern management system.
•    There is low cost spent on the producer and the company has a strong base for research and developmental activities ( 2018).     •    Strong customer base of manufacturers, retailers, bakeries and caterers.
•    The products are manufactured under different brand names such as Sarotti, Jacques
•    There is constant innovation in the development of new product
•    There are numerous CSR activities undertaken by the organisation(  2018).     •    Cargill has high brand equity and thus is present in more than 66 countries. 
•    The company has huge customer strength as well as its employee base is also very strong.
•    There has been technological advancement and the experts are from different fields who are involved in constant innovation
•    There is strong research and development operations in the organisation ( 2018).     •    It is considered to be a brand with high generation of revenue in the market.
•    There have been considerable investments in the research and development activities
•    It has a strong distribution network in the market ( 2018). 
Weakness    •    The price of the products is comparatively higher than the products of other companies.
•    The company faces difficulty when entering a new market
•    The storage and the transportation cost is the main weakness of the company.
•    There has been difficulties faced in the decision making process in the organisation and thus it is necessary to control during the process of expansion.      •    The company has limited brand awareness in the leading economies
•    There is strong competition from the other leading players in the market.     •    The customers easily opts the option of brand switching due to large available options.
•    The products of Cargill are negatively publicized and thus there has been over allegations.     •    There is decline in the net revenue in the market.
•    There has been fluctuations in the shares
Opportunity    •    Hershey has global presence in different countries around the world. 
•    It can expand into other countries with sourcing and manufacturing process.
•    The expansion of the company can also help in the creation of better job opportunities in the market. 
•    It can also build global partnership with other brands in the market. 
•    The quality of the product is considered to be the main advantage of the company.     •    It has undertaken continuous research and development. 
•    There is acquisition of competition.
•    The company is taking initiative in increasing its presence in the consumer goods market.     •    It is increasing its global penetration and thus tapping the rural opportunities.
•    It is trying to expand into other markets.
•    It is acquiring other companies within a short span of time ( 2018).     •    The sale of biscuits of Mondelez is increasing with the passage of time. 
•    It is developing its market in the developing countries( 2018)
Threat    •    The steep competition from the competitors of Hershey is one of the major threat faced by the company. 
•    The health concern faced by the company is another important threat of the company ( 2018).     •    There has been increase in the price of raw materials and thus this is considered to be a  threat for the company.
•    It is one of the local chocolate manufacturers in the country.
•    The euro zone crisis and the associated problems are the major threats of the company (  2018).      •    There has been fluctuations  in the cost of raw materials
•    There has been global economic instability in the market.
•    There is competition in all segments in the market.     •    The service providers of Mondelez are generally the third party providers.
•    The nature of input costa and the volatile nature of the products are the main threat of the company( 2018). 


Sustainable marketing practices followed by Hershey

The chocolate that is used by the company is 100% pure and thus it is derived from cocoa. On the other hand, it can be said that the farmers has decided to provide certification of the products and thus it will ensure enough pay for the farmers. According to the report published in the Guardian (2015), it has been found that the company has sourced 30% of its cocoa from sustainable sources and thus the farmers has decided to increase the production of cocoa due to its rising demand. Hershey has earned revenue of $7.4 bn and this is considered to be increasing with the passage of time due to increase in the quality of product. The company has tied partnership with Cocoa action and Bill and Melinda Gates Foundation and thus it has tried to help the poor farmers who are engaged in the sustainable cultivation of cocoa. The company has also undertaken projects such as Learn to grow for the farmers so that the farmers of Africa and other backward regions can use improved methods and technologies to boost up the level of production. The farmers of this region are also supplied with mobile phones and thus this has helped them to become equipped with the technological improvements. Hershey is also organizing different vocational programmes for the farmers and thus they are securing long term supply of cocoa from the farmers of this region. The company is purchasing Cocoa on fair terms of trade from the farmers and thus it is making different types of regular, public and transparent gaols for the future development of the company. It is also joining its partnership with Child labour Cocoa Coordinating Group and thus running different programs for the growth of the company ( 2018). 


Arguments to show the successfulness of this strategy chosen by Hershey
The company has the ability to positively improve the lives of the farmers by not changing the business practices that was adopted by Hershey previously. The company can choose to label and market any brands from the market as fair trade practices and this has helped in the growth of the organisation. It is also trying to commit to public level transparency of the practices and wages throughout the supply chain framework for different types of ingredients. Hershey is also joining partnership with the workers, framers and consumers and thus they are trying to implement better practices for payment and wages.


 Therefore, it can be said that Hershey is providing adequate support and promotion to those brands that are fully committed to the workers and the farmers through better practices. The company is taking initiative in displaying a label that indicates social and environmental sustainability and thus this has helped to meet the label standards. Moreover, the company has also adopted fair trade practices and thus it is positively affecting the life of the farmers through better trade practices. 

References  2018. Barry-callebaut. [online] Available at: [Accessed 17 Apr. 2018]. 2018. Cargill. [online] Available at: [Accessed 17 Apr. 2018]. 2018. Hersheys. [online] Available at: [Accessed 17 Apr. 2018]. 2018. Mondelezinternational. [online] Available at: [Accessed 17 Apr. 2018]. 2018. The Guardian. [online] Available at: [Accessed 17 Apr. 2018].


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