Discuss about the Contrasting Survey Results and Implementation.
The marketing mix refers to different marketing tools, which are used by the marketing firms to get achieve a large customer base. The marketing mix refers to the set of decisions, which can enhance the position of organization in the marketplace. In this regard, the marketing mix of Hershey in the market has been evaluated. The current report identifies the marketing mix strategy of the organization. It conducts SWOT analysis of the organization and identifies the Hershey’s relative and competitive position in the market.
Hershey is a leader in the confectionary industry and the US confectionary market has hold a significant amount of market share due to the focus on strong brand equity, product innovation and providing high product quality. It has a long tradition of providing high quality products, which has created brand awareness and brand loyalty among the customers. The top bands of the company are Kisses, Twizzlers, Reese’s Kit-Kat and Hershey Brand. These are the top candies and chocolates. By looking at the market share of the organization, it can be identified that the primary market of the company is in North America. The main competitor of Hershey is Mars; however, it has established various associations with other companies and sold its branded chocolates to different countries. Other than that, the company applies micro-marketing concept, which means that the organization has designed specific products, which are targeted to small audiences. The company also tailors its product so that it appeals to specific customer section. Hershey also offers its customized products, although offering them at a high price. It also predesign arrangements for different festivities and wedding (Wohl, 2018). It also follows the marketing strategy of holiday marketing. In this strategy, the company follows the strategy of holiday marketing. In this strategy, it promotes the products, by associating them with the major holidays of the organization.
In the present section of the report, the marketing mix strategies of Hershey have been discussed. The product, pricing, distribution and promotion strategy of the organization defines the marketing proposition and the positioning of the organization in the marketplace. The marketing mix of Hershey is:
Product Strategy: Hershey is a popular brand, which offers chocolate, candies and syrups to the customers. There is a wide range of products available at different shape and sizes. The conical shapes of Hershey’s kisses and hand rolled packaging designed products with appealing attractions. The company invests in innovation strategy and designs extremely healthy and delicious products. It has a wide array of products, including candy, gum, chocolate and nuts. All the products of the organization can be categorized as premium products, snack products, refreshment products and confectionary products (Johnson, 2017). The company also emphasizes product quality and health benefits and provides energy provider drinks. In order to make the product lucrative and attract more customers, the company provides various packaging and design and sizes of the product.
Pricing Strategy: The Company has established itself as a premium brand and marks the product slightly above the market price. The company targets the upper middle class and foreign tourists. By following premium pricing, the company has achieved a niche place in the market (Johnson, 2017).
Distribution Strategy: The Company does business globally, with a large number of distribution centers in drug stores, vending machines, gas stations, malls and departmental stores. It also distributes the products through online portals such as Amazon or eBay. It has a high distribution network and has a presence in most of the countries.
Promotion Strategy: The Company conducts its promotion through television advertisements, magazines and billboards. It has high awareness regarding the consumer taste and therefore, develops products, which can be purchased by every person. The company also organizes events, in which the public and the students can learn about the chocolate making process. It also organizes free sample events and chocolate tasting events. Recently, it has also adopted social media marketing tactics to acquire a large market share (MBA Skool, 2018). The company also provides recipes for cooking various confectionary items.
The company has appointed Arnold Worldwide to create a fully integrated advertising and marketing campaign for different chocolate brands such as Hershey, Reese, Kisses, York and Kit Kat. The company has promoted its brand through multi-faceted programs, which includes broadcast, print, interactive and public relations.
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Strengths Brand name Diversified global business Long and robust supply chain Financial sounding (Hershey, 2018) Innovative product Brand equity |
Weaknesses Dependence on the USA market High level of debt Limited customer service Criticism due to the purchase of Cocoa Decreasing margin |
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Opportunities Opportunity to enter other marketing avenues Entry into international market Developing innovative products Developing other products Enhancing its distribution network |
Threats Changes in consumer threat International competition Commodity cost Many small companies (Hershey, 2018) Counterfeit products Health awareness |
The SWOT analysis of the company revealed that the organization is biggest strength of the company is the brand name and the diversified product portfolio. The company sells a large number of products, including sauces, chocolates and other confectionary product. It is one of the largest and oldest organization in the food product history and famous for innovative product. However, when compared to the competitors, the organization has limited presence in the foreign countries. Therefore, according to SWOT analysis, the biggest opportunity for the company is entry into the foreign market.
The sustainable marketing is an important aspect of the marketing community, which emphasizes that the business organizations should focus on meeting the needs of the present generations, without compromising the needs of the future generations (Hörisch, Freeman & Schaltegger, 2014). It is important for the business community to maintain productivity by replacing the high value resources with resources of same value or higher value. In the recent year, the field of marketing has developed drastically. There are several concepts such as production, product and selling, which are commonly used in the sustainable marketing. The sustainable marketing refers to developing the customer relationships, while emphasizing sustainable development (Johnson, 2015). It focuses on establishing and maintaining sustainable relationships with the customers, social environment and the natural environment.
The sustainable marketing is the strategy of attaining the competitive advantage through adopting strategies, which are not harmful to the environment. However, there are significant challenges associated with the sustainable marketing (Lee & Saen, 2012). The sustainability in the marketing can enhance the competitive advantage by increasing cost saving and innovation of the employees. Most of the multinational companies are conducting efforts so that they can segment, target and position the customers with better pricing (Schuler, Rasche, Etzion & Newton, 2017).
Hershey has realized that for long-term sustenance, the companies have adopted sustainable approaches. The company will utilize simple and sustainable ingredients in a more transparent manner. The company recedes from using artificial flavors. The company aims to evolve the product portfolio of the organization (Windolph, Harms & Schaltegger, 2014). The organization has also adopted technology so that customers can access extensive product information with a single click of hand. The company provides information regarding the ingredients, allergen, calorie and nutritional information (Formentini & Taticchi, 2016). The company also aims to provide information regarding the sourcing and the manufacturing of the ingredients.
The company has also observed significant progress in the responsible sourcing of the ingredients. It has assisted the organization in sustainability of the products and the communities. In this sustainable sourcing effort, the company aims to enhance the livelihood of the farmers by providing them with financial and technical assistance (Hahn, Pinkse, Preuss & Figge, 2015). Over the years, the company has demonstrated its commitment for the environmental sustainability (Mena, Humphries & Choi, 2013). It reduced the greenhouse emission as the company controlled deforestation in the supply chain and specifically in the sourcing of palm oil, pulp and paper.
It has also launched a social campaign of Nourishing Minds, which is the global social purpose and necessary for enhancing the basic nutrition of children. The values and expertise of the company is contributing to develop a positive future for the children and the farmers in Africa (Brockhaus, Kersten & Knemeyer, 2013). The organization also emphasize on providing a better workplace experience and sense of purpose for the employees.
The company has adopted a shared goodness framework in which the company links its performance with the sustainable operations of the company (Reefke & Sundaram, 2017). This model is used to link the operations of the organization with the sustainable operations of the organization. It creates value for the shareholders, develop their skills, and enhance their financial skills so that the stakeholders can achieve a better future (Siva,Gremyr, Bergquist, Garvare, Zobel & Isaksson, 2016).
The company is heavily dependent upon the farmers in the cocoa-growing community in West Africa. The company is committed to enhance the livelihood of the farmers and ensure that it will receive sustainable supply of Cocoa. The company is also trying to establish a traceable plantation level so that it can guarantee its sustainable efforts (Garza, 2013). The company is sincere about protecting the natural resource; therefore, it is focusing on the establishing recycling centers and sustainable waste management practices.
Recently, the company has launched a sustainable packaging approach, in which the company will reduce the waste, reduce the carbon emission and enhance the sustainability of the organization. The design of the new product is based on DRC (Display Ready Case) model in which the retail organizations can reduce the packaging material (Lindell, 2017).
The company follows the corporate governance policies which are formed by the government. The Board of Directors and the CEO of the organization form policies for evaluating the performance, strategies and the major decisions of the organization. The Corporate governance body of the organization of Hershey regulate the operations of the company oversee whether the company is compliant to the legal and regulatory requirements of the organization (Brandenburg, Govindan, Sarkis & Seuring, 2014). It has created a transparent culture in the organization and has transparently shares the compensation of employees, senior executives and CEO of the organization. The company’s code of conduct is applicable to the directors, officers and the employees of the organization. The code of conduct of the company addresses several issues related to the conflict of interest, antitrust, fair trade and establishment of a sustainable supply chain (Azadi, Jafarian, Saen & Mirhedayatian, 2015). The company also expects that all the employees operate by this code.
The company also encourages reporting of ethical concerns to the management of the organization. There are a large number of communication channels available so that the employees can access the higher management in an easy manner. In its annual report, the company has shown its commitment towards shared goodness (Touboulic & Walker, 2015). With its actions, the company is showing its commitment towards environmental stability, providing support to the local community and including simple and healthy ingredients in all of its products.
The company is also a promoter of diversity. It understands the importance of supporting different types of business for stimulating the growth of the business. It has established supplier diversity programs to foster diversity at the workplace. The organization has formulated policies to enhance strong relationships with the business owned by minorities, women and disadvantaged (Genovese, Acquaye, Figueroa & Koh, 2017). The company provides procurement and business opportunities to the minority businesses.
The government regulators, health officials and the consumers have become more concerned about the importance of healthy eating. The company should have the responsibility to provide balanced and healthy eating to the customers (Starik & Kanashiro, 2013). In the product side, the company is focusing on the sugar-free versions of the employees. Another improvement in product development of Hershey is that it is developing products according to the calories and portion control. It is an effort towards promoting healthy eating, weight control and exercise among the employees (Schaltegger, 2011).
The company has designed a nutrition labeling so that consumers can control their nutrient intake. Therefore, the company helps the consumers in making informed decisions.
Another initiative in sustainable development of the organization is creating marketing efforts with integrity. Hershey Company shows its commitment towards transparency and product value. The company has established communication channels for marketing and advertising products to the consumers. In the recent years, the company has designed several engaging advertisements and published them in different media channels, such as broadcast, radio and television (Hörisch, Freeman & Schaltegger, 2014). Moreover, it has shown its commitment towards sustainable marketing. It provides factual and authentic information and recoil from misleading advertisements (Hershey, 2009).
The company has adopted significant principles in strategies for the sustainable marketing and operations. It has presence in different sustainability indices and its ranking is continually growing over the years. It has made substantial efforts in the global corporate social responsibility efforts and made significant strides in the sourcing and improvement of basic nutrition.
It is also establishing different milestones in adopting certified and sustainable cocoa. The company has also developed supply chain to obtain certified and sustainable cocoa required for the global production of its chocolate brands (Salzmann, Ionescu-Somers & Steger, 2005). The company has also made several training and educational program efforts, which is necessary for the long-term future of cocoa production.
The company is also striving to connect its social programs with its expertise so that it can benefit the community as a whole, with its food production abilities (CSP, 2015).
Conclusion
Hershey is one of the leading chocolate producers in the world. The strengths of the organization are high quality products. It has targeted affluent customers in its target market. The company has adopted several sustainable marketing and sourcing principles. It is the strategy of using resources such that they are not harmful to the environment. The sustainability in the marketing can enhance the competitive advantage by increasing cost saving and innovation of the employees. Most of the multinational companies are conducting efforts so that they can segment, target and position the customers with better pricing. Hershey is trying to raise the standard of living of the farmers of the cocoa-growing community in West Africa. The company is committed to enhancing the livelihood of the farmers and ensures that it will receive sustainable supply of Cocoa. It is also trying to establish a traceable plantation level so that it can guarantee its sustainable efforts. It is focusing on the establishing recycling centers and sustainable waste management practices.
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