Published by MBA Skool Team, Last Updated: December 26, 2017
Marketing Strategy of Hersheys analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Hersheys marketing mix, help the brand succeed.
Hersheys marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Hersheys Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Hersheys Product Strategy:
The product strategy and mix in Hersheys marketing strategy can be explained as follows:
Hersheys is a popular brand which offers chocolates and other sweet sauces & syrups. A variety of products are available in different shapes and sizes. The conical shape of Hersheys kisses and innovative hand rolled packaging in some products adds to the appeal. Continuous product innovation in its marketing mix has helped Hersheys to grow through the years. The product is positioned as something delicious and healthy for growing kids.
Chocolate - Hersheys, Kisses, Reese's, Kit Kat, Brookside, Take5, York, Almond Joy & Mounds
Candy – Twizzlers, Jolly Rancher, Allan Candy
Mint & Gum - Ice Breakers, Breath Savers, Bubble Yum
Nuts & Caramel – Lancaster, Payday, Rolo
Others - chocolate bars, Symphony, Extra Dark, Almond Joy, Mounds, 100 Calorie Bar, Bliss, Drops, Hersheys Miniatures, Pot of Gold, Nuggets, Hersheys Kisses, Reese's Peanut Butter Cups, York Peppermint Pattie.
Hersheys Price/Pricing Strategy:
Below is the pricing strategy in Hersheys marketing strategy:
Hersheys is a premium brand and charges higher price compared to other standard chocolates available in the market.
It targets upper middleclass urban population and foreign tourists. The prices vary from $10 to $50. There hasn’t been any price hike recently but the quantity in various SKUs have been reduced.
Hersheys Place & Distribution Strategy:
Following is the distribution strategy in the Hersheys marketing mix:
Hersheys is available globally in grocery stores, drug stores, vending machines, wholesale clubs, gas stations, malls, hospitals, department stores. It can also be purchased online from Amazon, Bigbasket, eBay etc. Hersheys has a strong distribution network and is able to reach across many countries worldwide.
All major cities are covered by the distribution channels of the company.
Hersheys Promotion & Advertising Strategy:
The promotional and advertising strategy in the Hersheys marketing strategy is as follows:
Promotion is done through TV Ads, Magazine Ads and Billboards. Hersheys mission is to create delicious chocolate that could be enjoyed by everyone. Hersheys milk booster Ad tries to position itself as a healthy product for growing kids and a substitute to traditional milk powders. A similar approach is followed in Hersheys spreads Ad where a cute child is shown playing dumb charades with his mother and its emphasised how the almond helps in kid’s growth and can be used in daily breakfast. It has traditionally tried to make Ads which showcase spreading happiness which is in line with the vision of its creator Milton Hershey. The My Dad Ad campaign can be seen which shows how a Hersheys chocolate is used to strengthen the bond between a father and a son and spread happiness in the family. Hersheys also has a tourist attraction place in Pennsylvania, USA, called the Hersheys chocolate world. Kids and families go there to have a good time and in the process Hersheys also gets some promotion. One can get to know the chocolate making process, taste free samples and experience the state of the art technology here. There are various promotional activities like 4D chocolate mystery, trolley tours etc. which tells the chocolate story to everyone. The kids can design their own candy and be a part of the chocolate making process. It also uses Instagram and twitter for social network promotions. They also provide recipes for Cakes & Cupcakes, Cookies, Brownies & Bars, Breads & Muffins, Puddings & Mousse, Pies & Tarts, Candies & Snacks, Frostings & Fillings. Hence this completes the marketing mix of Hersheys.
Hersheys is an American food company and one of the largest chocolate manufacturers in the world. Its headquarters are in Hershey, Pennsylvania. The company was started by Milton S. Hershey in the year 1894. It was named as the Hershey Chocolate Company. The brand was born in 1894 with the introduction of Hersheys cocoa. It was the first product from the company to be sold to the public. While chocolate was something enjoyed by the upper-class society only, Hersheys made it available at lower prices so that other sections of the society could enjoy the delicacies of chocolate as well. Hershey tries to keep its employees happy as they believe that happy employees can make good chocolates. In 1906 a Hersheys park was built for the same purpose.
Hersheys sells its products in around sixty countries throughout the world. Hersheys is also a member of the World Cocoa Foundation.
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