Hershey Case Analysis

Case Analysis (Hershey’s Food Corporation)

Submitted to: Dr. Stephanie Dadivas

Submitted by: Monique Angela Garcia Grecel Calbog Michael Rey Galeno Sharmaine Parcia Rhissa oyce !madhay "S Act #

%$ Statement of the Problem &ershey 'ood Corporation(s competitive competitive strategy )as not potent that they *ell behind its ma+or competitors.

Objectives , , , , ,

-o be the leading leading and stronge strongest st con*ectio con*ectionary nary company company in and and out o* the !nited !nited States. States. -o retain its its positio position n as the leader leader in the con*ecti con*ectionary onary indus industry try in the !S !S and globally globally.. -o increa increase se its its pro*i pro*itab table le mare marett share. share. -o develop develop a strong strong and e**ective e**ective competiti competitive ve strategy strategy.. -o be able to implem implement ent the competit competitive ive advantag advantagee and to secure secure its sustaina sustainabili bility ty..

Areas of Consideration Mareting Strategy $ &ershey has stepped up its *ocus on the convenience and vending channels/ t)o channels in )hich competitor Mars has traditionally done )ell. &ershey(s must establish its o)n mareting strategy to be able to oppose )ith its competitors and retain its title as one o* the leading con*ectionary company. Di**erentiation Di**erentiation Strategy $ &ershey 'oods Corp. does not *ocus on the products that they originally manu*acture/ instead they bought other con*ectionary products *or the consumers to have an array o* choice o* their products. &ershey(s must design a product that is di**erent and )ithin the consumer(s tastes. &ershey(s should also invest their time in developing a product that can clearly position themselves as a leader in the con*ectionary industry. industry.

Alternative Courses of Action ,

Create Create a di**erenti di**erentiation ation strate strategy gy that that could mae mae their produc products ts unique unique and )ill )ill enable enable them to be a leader leader in the con*ectionary industry. industry.

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Develop Develop a competitive competitive intell intelligenc igencee that can build build industry industry a)areness a)areness// support support the strategic strategic planning planning  process/ develop ne) products products and create ne) mareting mareting strategies and tactics. tactics.

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-hey have have to invest invest in advertis advertisement ement// i* they have have to maintain0 maintain0incre increase ase their their maret maret share.

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!se internati international onal advertisem advertisement ent to to promot promotee their their produc product. t.

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!se mult multina inati tiona onall channe channell to incre increase ase the the sales sales..

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&ershey &ershey should should adopt the 1Global 1Global Channel Channelss o* Distributi Distribution2 on2 to increase increase the sales sales )orld)ide )orld)ide in order order to compete )ith its competitors.

ecommendations 3e recommend that &ershey should adopt the 1Global Channels o* Distribution2 to increase their sales in order to compete )ith its competitors. &ershey needs to continue to *ocus on the global maret. &ershey currently has a limited presence in many areas o* the )orld. &ershey has to develop a strong range o* brands/ increased the quality qua lity o* their products and *ocused on innovation o* the e4isting products. -he company must also engage in product stimulation on a regular basis that enables it to stay on top o* other competing products. -hey must integrate into each country(s culture and develop a strategy to immerse their brand name into these areas. -his )ill mae &ershey(s/ )hich is already a good per*ormer in the industry/ a more competitive company in its maret.

Conclusion &ershey(s maret share is less than 56 percent/ lo)est among its competitor. So/ &ershey should come up )ith ne) strategies in *inance/ mareting/ production department and in organi7ation structure to increase the maret share and compete globally. Global competitive advantage )ill mean having the best technologies and processes *or designing/ manu*acturing/ selling and servicing products at the lo)est  possible cost. -o -o gain lasting lasting global competitive competitive advantage a company company has to leverage its capabilities capabilities around the )orld so that the company as a )hole is greater than sum o* its parts. Selling globally/ having global brands or having operations in di**erent countries )ill not be enough.  -his study used &ershey 'ood Corporation as a case to demonstrate ho) to *ormulate global product strategy to penetrate gro)ing international marets.