Hershey's Marketing Plan

Table of Content 1. Executive Summary 3 2. Introduction 4 2.1. Background 4 2.2. Mission 4 3. Situational Analysis 5 3.1. PEST Analysis 5 3.2. SWOT Analysis 6 3.3. Competitive Analysis 9 4. Market Overview 10 5. Marketing Objectives 10 6. Market Research 10 7. STP 11 7.1. Segmentation 11 7.2. Targeting 12 7.3. Positioning 12 8. Marketing Mix 8.1. Product 13 8.2. Price 14 8.3. Promotion 15 8.4. Place 17 9. Conclusion 18 10. Appendix 19 11. Reference List 22

1. Executive Summary HersheyÕs is a chocolate brand first founded and developed in Lancaster, Pennsylvania, U.S. HersheyÕs committed to developing relationships and delivering satisfaction to consumers, offering chocolates of superior quality by using premium cocoa and fresh milk directly from their plant in Hershey, Pennsylvania. (Corporate, n.d.) Singapore has a well-developed and matured market for confectionery products, with the market share currently divided into three major players; The Hershey Company, Nestle SA and Cadbury. HersheyÕs does not have a large market presence as compared to its competitors, as it markets heavily in its home country. A situational analysis is conducted to evaluate HersheyÕs marketing environment, as well as a SWOT analysis to assess the companyÕs overall strengths, weaknesses, opportunities and threats. A market research conducted narrowed the target audience to young and working adults aged between 18 to 29 with increasing health consciousness. Hence, HersheyÕs has the opportunity to enter in the Singapore market by tapping into consumer health concerns. This shows potential to increase brand awareness, market share, profitability, customer base and retention rate. HersheyÕs marketing plan is to accentuate its improved brand image, new and unique flavours accompanied by aggressive promotional activities. HersheyÕs will acquire customers and increase profitability by positioning itself as a quality chocolate with increased varieties, selling at an affordable price and easily accessible to all. HersheyÕs plans to see a growth of 5% in sales and 3% in market share in the next 12 months. Further development of marketing mix include: * New organic chocolate bar flavours with granola and fruits * New pricing strategies * New advertising and promotion platforms * New brand placement in retailers The team plans to increase brand awareness and acquire new customers through social media platforms and events, public transportation advertising, charity campaigns and free samples during the roadshows. By aggressively achieving the goals through these promotional outlets, HersheyÕs can have a larger market presence in Singapore and be the top choice in consumersÕ mind.

2. Introduction 2.1 Background Milton S. Hershey was the founder of The Hershey Company (HersheyÕs). HersheyÕs was established in 1894 with the belief that chocolate will have continual demand in the future. Back then, chocolate was only for wealthy people to consume, hence Milton HersheyÕs decided to mass-produce chocolate to make it affordable for the everyone to purchase. By 1956, the companyÕs revenue was around $14million. Over the years, a new variety were innovated, for example in the year of 1925, ÔMr. GoodbarÕ and ÔPeanut Butter CupÕ was released to the market and became their best product in 1956. In 2010, its annual revenue was close to $5.5 billion and the profit being $500 million (Successstory.com, n.d.). Till end of 2016, Hershey have 16,300 employees working for the company (Statista, n.d.). 2.2 Mission ÒContinuing Milton HersheyÕs legacy of commitment to consumers, community and children, we provide high-quality HERSHEYÕS products while conducting our business in a socially responsible and environmentally sustainable manner.Ó (Hersheys.com, n.d.).

3. Situation Analysis 3.1 PEST Analysis 3.1.1 Political Singapore has a stable political climate, offering a peaceful environment for companies to do business. Singapore's network of 20 free-trade agreements with 31 partners have helped to reduce or eliminate trade barriers and brought closer economic integration, making exports cheaper and easier entry into the export markets. According to the Doing Business 2017 Report, Singapore was ranked third on the ease of trading across borders (Worldbank.org, 2016). Hence, it gives chocolate confectionary companies such as HersheyÕs a great prospect to establish their company in Singapore. However, compelling food and drinks trends emerging in consumer market creates a need for business to consider improvising their products. In a bid to align with 21st century eating trends, HersheyÕs removed artificial flavors from its milk chocolate bar and replaced with recognisable ingredients (Lorenzetti, 2015). 3.1.2 Economic According to Trading Economics, Singapore experienced its greatest inflation impact since August 2014, with the rate rising 0.7% year-on-year in February 2017 (Tradingeconomics.com, n.d.). It was resulted by an increase in transportation cost and prices of food. The growing inflation rate in Singapore is not a good sign for HersheyÕs as it brings up issues concerning business uncertainty and consumer confidence. HersheyÕs business confidence might be affected as costs and prices may fluctuate (tutor2u, n.d.). However, the purchasing power parity in Singapore has been increasing steadily each year. This indicates that Singaporeans have relatively high purchasing power. Hence, HersheyÕs will still have potential growth given the favourable economic factor. 3.1.3 Socio-cultural In recent years, the government has been working with food manufacturers and companies to increase pervasiveness of healthier options for consumers. Majority of the effort is to combat diabetes, as Singapore is currently the second highest diabetes prevalence among developed countries (Wan Ching, 2016). More products with Healthier Choice symbol are appearing on shelf spaces of supermarket, encouraging consumers to select healthier options. This growing health consciousness might be disadvantageous to HersheyÕs, as chocolates are often assume to be high in sugar content. However, this creates opportunities for HersheyÕs to tap into consumer health concern, improving its products to meet consumer needs. 3.1.4 Technological HersheyÕs has a global Research and Development team that leads the organization in accelerating innovation and maintaining market share. Its new Asia Innovation Center was opened in Shanghai, China in 2013, focusing on consumer-centric brand building (Businesswire.com, n.d.). The facility and technologies allow HersheyÕs to translate their insights and knowledge of consumer tastes and preferences into products. Advances in data and technology also made real-time market possible,