The Hershey Company

In: Business and Management

Submitted By kevtae
Words 1908
Pages 8
Hershey Company

Weaknesses in the Product Life Cycle There are a couple of weaknesses in the product life cycle of Hershey. To begin with, candy sales are being lowered by health and wellness trends, which are not only a weakness for Hershey, but the entire chocolate and candy industries as a whole. In addition to that, Hershey has had price inflation for their products. There has been an increase in consumer consciousness when it comes to the health risks related to foods with high sugar and salt products as well as high-fat and cholesterol foods. Consumers are giving more attention to the product labels of the items they purchase and are choosing to purchase the healthiest products available. When it comes to price inflation, rising costs have been a principally tough challenge for the company. The raw material costs having to do with producing a basic milk chocolate bar weighing 3.5 ounces or 100 grams, has soared 28 percent. Hershey’s has been susceptible to market price increases of key ingredients like cocoa, milk, sugar and peanuts, which all have seen increasing prices. The price of cocoa butter, which makes up about a fourth of each chocolate bar, has risen 63 percent in the last 2 years, reaching a four-year high. Whole milk powder, which is another major part, has risen above 20 percent (Tidy, 2013). In order for the company to fight the rising costs, they would need to both raise domestic wholesale prices and lower product weight. The rising price of cocoa has already been causing pressure for the manufacturer to increase retail prices. Another strategy is to reduce the portion sizes of Hershey bars. In the future, a two-tier chocolate market could develop as brands begin to station themselves as either affordable or premium. So called “premium chocolate” can emerge to be similar to wine sector, with cocoa origin blends customized to meet…...

Similar Documents

Hersheys

...to meet the needs of consumers. From the early 1900’s to the present Hershey purchased several companies and manufactories located in the Norwegian areas, Brazil, Japan, Italy, and several other locations. In the early 2000 year Hershey “announced a pre-tax restructuring charge of $275 million…supporting initiative to enhance the future operating performance of the Company” (“Key corporate events,” 2012). Currently Hershey owns and operates 11manufacturing plants in the United States. In 2007 the company decided to transform its global supply chain so they will disembark on a plan to reinforce cocoa by developing community programs in West Africa. Hershey will “expand and accelerate programs to improve cocoa communities by investing $10 million in West Africa and continuing to work with experts in agriculture, community development and government over the next five years” (“Hershey expands responsible,” 2012). These cocoas farms are generally operated through family farms so this venture will improve farming in West Africa and increase the family’s income. As the CEO J.P. Bilbrey of Hershey stated, the company will invest in education, health, and various economic opportunities for the farming families (2012). Hershey will work alongside the Rainforest Alliance to monitor labor to avoid illegal practices. Training programs will be offered to educate those in the legal matters of operations. In 2011, Hershey introduced a mobile phone program, CocoaLink, to communicate with......

Words: 453 - Pages: 2

Hershey

...ershDominic Ciantar Ronnie Pollack Christopher Macuga Michael Evans Case Study Hershey North America 1. What are the advantages of targeting candy bars to adults rather than to children? The advantages of targeting candy bars to adults may be one that many people don’t understand but, there are some very important reasons on why some candy manufacturers do so. First off mothers determine children’s early taste in candy. Therefore, if a company like Hershey can target mothers to buy Hershey candy than their children are more likely to buy Hershey candy. In addition to targeting mothers as adults, research shows that adults eat more than 55 percent of all candy sold. This is the main reason why candy manufacturers target candy bars to adults rather than children. 2. Does targeting to adults require a change in image for candy products? Now that we understand why candy manufacturers target adults, next we have to understand the process of targeting this candy to adults. The most important aspect of this process is the image. Bite-size products are especially popular with adult consumers. When wrapped in seasonal colors, these products have tremendous appeal for adults during Christmas and Easter season. In December 1998, Hershey targeted the ever-growing snacking segment of the confectionery industry by transforming some of its most popular bars into “Hershey Bites.” Included in this range of products were Hershey’s Milk Chocolate with Almonds, Cookies ‘n’ Creme...

Words: 688 - Pages: 3

The Hershey Company Analysis

...THE HERSHEY COMPANY ANALYSIS Pursuant to Securities Exchange Act of 1934 Form 10-K & Schedule 14A Proxy Statement BUS 500A Accounting Fundamentals Professor Dennis Kyte February 19, 2012 Olabisi Carr I. Background Information Name of the Company: The Hershey Company. See SEC Form 10K, front page 0. Hereinafter. “Hershey.” or the “Company.” See Proxy Statement, page 2. Fiscal year covered by the annual report: Fiscal year 2009. See SEC Form 10K, front page 0. Stock Exchange where shares are traded and stock ticker symbol: New York Atock Exchange under ticker symbol HSY. See SEC Form 10K, page 16. State of Incorporation: Delaware. See SEC Form 10K, page 1. Describe the Company’s business(es), e.g. types of products manufactured: The Hershey Company sells quality chocolate and is the global leader in chocolate and sugar confectionery. Principal product groups include chocolate and confectionary products; snack products, gum and mint refreshment products; and pantry items, such as baking ingredients, toppings and beverages, See SEC Form 10K, page 1. II. Management and Audit Report Who are the Company’s Auditors? KMPG LLP. See Proxy Statement, page 35. What opinion did the auditors issue? KMPG opinion says the consolidated financial statements referred to above present fairly, in all material respects, the financial position of The Hershey Company and subsidiaries as of December 31, 2009 and 2008 and the results of their......

Words: 2202 - Pages: 9

Hershey

...BUS 520 The Hershey Company is famously known for being the biggest manufacturer of chocolates and confectionery products in USA, having hired over 15,000 employees worldwide and exporting their products to ninety different countries over the world. They have several popular brands, some of most notable ones being Hershey’s Chocolate Bar, Kit Kat, Hershey’s Kisses, Reese’s, York Peppermint Pattie, Rolo and Krackle Bar. With the help of these brands, Hershey gained success and popularity, making the company’s net worth over $4 billion dollars. As the preeminent chocolate empire in the United States, Hershey has rewarded its owners as it showered them with profits from sales of chocolate bars, chocolate kisses, candy, cocoa, and baking supplies.  The problem has always been that the market recognizes how phenomenal of a business it is and prices it accordingly.  Hershey is not a stock you can buy cheaply; at least not at any point in the past quarter century. “Hershey has been riding high on a wave of lower expenses brought about because sugar prices are at a three-year low.”2 With costs low, Hershey has been able to simply keep pace with inflation on its pricing while keeping its marketing budget at bay and relying on its brand name to drive margin and sales growth. The worry here, though, is that neither sales trends nor sugar prices are going to work in Hershey's favor in the long run. The company is vulnerable to market prices of key ingredients all of which saw price......

Words: 1171 - Pages: 5

The Hershey Company

...The Hershey Company Worldwide Educators OR/5000 May 7, 2013 The Hershey Company Introduction The founder of the Hershey Company was Milton S. Hershey. He was raised in rural central Pennsylvania. Even though he lacked formal education and went nearly bankrupt by the time he was 30 years of age, Milton S. Hershey became one of the wealthiest men in the world. He started Lancaster Caramel Company in 1876, in Philadelphia, hiring about 1400 people, in his chocolate factory. By the time the year 1900 came in the picture Milton S. Hershey made 1 million dollars. This was the name before it was Hershey. Soon the Lancaster Caramel Company was shipping all over the U.S. and Europe. As time progressed on, Mr. Hershey opened a school for orphan boys called the Milton Hershey School; it has since opened its doors to girls as well. In 1918, Hershey transferred the bulk of his considerable wealth, including his ownership in the Hershey Chocolate Company and other enterprises, to the Hershey Trust to be held for the Hershey Industrial School. The Hershey’s Company many products to choose from such as Hershey’s milk chocolate bar, Reese’s peanut butter cups, Kit Kat wafer bars, Hershey’s Kisses, Jolly Ranchers, Ice Breakers, and many more. These products are only, to name a few. Hershey does not only offer sweets to eat also offer job opportunities, or if one would like to be an investor in the company. Mission Statement Hershey’s considers their mission......

Words: 1692 - Pages: 7

Hershey Company Paper

...Hershey Company Name University Abstract The Hershey Company introducing the world of chocolate examines the remarkable successes and failures of the company. They are the largest North American manufacturer of chocolate and sugar confectionery products in its constant pursuit to maintain growth and profitability in a competitive industry. Hershey Company has an array of chocolate and confectionery products, which includes candies, beverages, baking ingredients, gums, syrups, and toppings for ice cream. Hershey Company produces and maintains more than 80 different brands. Hershey chocolate bar is known as the “Great American Chocolate Bar,” which is produced by Hershey Company and was invented by Milton Hershey over a hundred years ago and its products are sold in sixty different countries. We will look at the history of the company, its good marketing plan to expand that allows them to be more profits and more world recognition. Hershey Company maintain its dominant position in the industry and where the company is going in the near future. Hershey Company Mission and Objective Vision The vision of The Hershey Company is—Continuing Milton Hershey’s legacy of commitment to consumers, community and children, we provide high-quality Hershey’s products while conducting our business in a socially responsible and environmentally sustainable manner (The Hershey Company, n.d.). Mission Statement The mission of Hershey’s is encapsulated in the following words:......

Words: 4777 - Pages: 20

The Hershey Company

...Management 306 The Hershey Company Introduction Trying to make chocolate chip cookies without eating all the chocolate chips first. Finally achieving the ever elusive perfect peel of a Reese’s cup wrapper. Breaking off a piece of a Kit Kat bar only to eat the whole thing anyways. These are all things everyone associates with one of the world’s leading candy companies, and that company is Hershey’s. The Hershey Company is one of the world’s leading manufacturers of chocolate and chocolate confectionary products. Hershey is a publicly owned company with over 14,000 employees and locations in over 90 countries. Hershey is known to manufacture many different products, including but not limited to Hershey Chocolate Chips and Chocolate Syrup; Kit Kat, Reese’s, Heath bars, Milk Duds, Goodbar, and many more. Hershey is a very interesting company, with a storied history, and proven business success. History The Hershey Chocolate Company began as a wholly owned subsidiary of Milton Hershey’s Lancaster Caramel Company in 1893. Soon after that William Murrie was hired to sell the excess product to other confectioners and he quickly turned the Hershey Company into a successful venture on its own. By 1895 the Hershey Company was making more than 114 chocolate products, and marketed several specifically to women and athletes. Hershey then realized the real market was in milk chocolate; he just needed to find a way to produce large quantities quickly and efficiently. Hershey worked......

Words: 3554 - Pages: 15

The Hershey Company Presents Bucket of Chocolate

...The Hershey Company Presents Bucket of Chocolate The Hershey Company Presents Bucket of Chocolate Table of Contents Situational Analysis Executive Summary 4-5 Introduction 5-6 Industry Analysis 7 Product Category 7 Nature of Demand 7 Product Life Cycle 8 Top Competitors 9 Company Analysis 9 The Hershey Company Background 9-10 The Hershey Company Mission Statement 10 The Hershey Company SWOT Analysis 10-16 Competition 17 Nestlé Background & SWOT Analysis 17-21 Mars Background & SWOT Analysis 21-25 Objectives for the New Product Plan 25-29 Segmenting, Targeting, Positioning 29 Segmenting 29-30 Demographic 30-32 Geographic 32-33 Psychographic 33 Behavioral 34 Target Market 34-35 Positioning 35 Marketing Mix Product Decisions 36 Product Description/Classification 36 Branding, Packaging, and Labeling 37 Hershey’s New Product vs. Hershey’s Existing Products 38 Hershey’s Bucket of Chocolate vs. Competitors 38-39 Price Decisions 39 Pricing Strategy 39-40 Hershey’s Bucket of Chocolate vs. Competitors 40-42 Place Decisions 43 Distribution Channel and Physical Distribution 43 Distribution Intensity 43-44 Placement Decisions Fit Positioning and Pricing Goals 44-45 Hershey’s In-Store Placement vs.......

Words: 15143 - Pages: 61

A Comparative Anlysis of Hershey Company and Tootsie Roll Industries

...ability to pay obligations as they are expected to be due within the next year. When working capital is a positive number, there is a higher likelihood that the company will be able to pay it liabilities. Is this case Tootsie Roll is more likely to be able to pay their liabilities because they have a positive working capital and Hershey’s is negative. The current ratio indicates the ability to pay on maturing obligations and to be able to meet unexpected cash needs. Again in this case Tootsie Roll has a higher probability of being able to pay their obligation and meet their unexpected cash needs. They have a $2.34:1 ratio compared to Hershey’s $0.92:1 Current cash debt coverage is considered a better representation of the ability of a business to meet its immediate obligations on the average day. The text explains if below 0.40 more investigation in the company’s liquidity should be done. Both Tootsie Roll and Hershey are above 0.40; however Tootsie Roll still shows a higher ability to meet their immediate obligations. Inventory turnover ratio shows how quickly the company sells its products. Although a high inventory ratio means the company is tying up little funds in inventory, it also means they could be losing out on sales opportunities due to inventory shortages. In this case Hershey sells their product faster, but they may be losing out on sales due to shortages. Days in inventory indicates the average age of inventory. Tootsie Rolls......

Words: 794 - Pages: 4

The Hershey Company and Csr Challenge

...The Hershey Company and CSR Challenge The Hershey Company is the leading North American manufacturer of chocolate confectionery (The Hershey, 2014). The company uses cocoa suppliers in West Africa, where the harvest type of child labour and human trafficking is exposed in the chocolate industry. Thousands of children are forced to engage in unsafe activities such as using machetes and carrying heavy loads. Therefore, the majorities have scars on their body (Nieburg O., 2014). Nearly two million children work illegally on cocoa farms. Children from the Western Africa start to work at a young age of 12 to help their families because of the intense poverty that surround them (Louv J., 2014). Decision-making models • Bounded Rationality In order to address the issue of child labour and to build sustainability in the community, Hershey Company should follow the Bounded Rationality style of decision- making. The rational decision making model is very effective in the cocoa farms as it’s based on the rational thinking in order to come up with the best potential results. It gives the possibility to find possible solutions to the child labour issue, to calculate the consequences of them and finally to choose the best option. There is a cycling through different choices until an applicable one is found (Cioran N.A., 2013). • Varoom and Yetton’s Leadership On the other side, referring to the Varoom and Yetton’s Leadership and Decision-making (1973), it also can be an...

Words: 567 - Pages: 3

Acc 206 Week 3 Journal Hershey Company New

...ACC 206 WEEK 3 JOURNAL HERSHEY COMPANY NEW To purchase this visit here: http://www.nerdypupil.com/product/acc-206-week-3-journal-hershey-company-new/ Contact us at: nerdypupil@gmail.com ACC 206 WEEK 3 JOURNAL HERSHEY COMPANY NEW Go the Hershey website to learn how to make Hershey chocolate. Review the process and take a look at some of the videos. Pay particular attention to the process steps of milling and pressing, mixing the ingredients, and refining. In at least one paragraph, describe the costing system that you would recommend Hershey use to account for its cost of goods sold and why. Include a few product costs you think would be traceable, which costs should be allocated, and how Hershey should account and apply the manufacturing overhead costs. Carefully review the Grading Rubric for the criteria that will be used to evaluate your journal entry. Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 206 Week 3 Journal Hershey Company New in order to ace their studies. ACC 206 WEEK 3 JOURNAL HERSHEY COMPANY NEW To purchase this visit here: http://www.nerdypupil.com/product/acc-206-week-3-journal-hershey-company-new/ Contact us at: nerdypupil@gmail.com ACC 206 WEEK 3 JOURNAL HERSHEY COMPANY NEW Go the Hershey website to learn how to make Hershey chocolate. Review the process and take a look at some of the videos. Pay particular attention to the process steps of milling and pressing, mixing the ingredients,......

Words: 705 - Pages: 3

The Hershey Company: an Integrated Global Marketing Plan

...The Hershey Company An Integrated Global Marketing Case Study | AbstractThe confectionary industry is becoming intensely competitive and so, the Hershey Company needs to continue to strengthen brand loyalty to stay competitive in a growing and changing global market. Hershey’s has increased the value proposition of chocolate and snacking in the minds of consumers by producing a variety of flavors and product choices that are marketed to targeted audiences in targeted segments through specific channels of communication. The company’s strategic focus on aligning marketing strategies with changing consumer preferences has led Hershey’s to expand their integrated marketing communications plan into social media channels and produce innovative new products for the health-conscious consumers. Rebecca Simmons MBA FP-6012 Assessment 5 | The Hershey Company An Integrated Global Marketing Case Study | AbstractThe confectionary industry is becoming intensely competitive and so, the Hershey Company needs to continue to strengthen brand loyalty to stay competitive in a growing and changing global market. Hershey’s has increased the value proposition of chocolate and snacking in the minds of consumers by producing a variety of flavors and product choices that are marketed to targeted audiences in targeted segments through specific channels of communication. The company’s strategic focus on aligning marketing strategies with changing consumer preferences has led Hershey’s to......

Words: 3312 - Pages: 14

Hershey Company Strategic Management

...A. TWO KEY LESSONS LEARNT FROM THIS CASE Hershey Company is famous known for being the biggest manufacturer of chocolates and confectionery products in North America and grocery products in over 60 countries worldwide. In 2009, Hershey sales up to 3.23 percent. Advertising expenses increased by 46 percent as the company continued to promote iconic brands such as the Hershey Kiss and Reese’s products. Due to lower commodity prices, the company plans to discontinue their Cacao Reserve brand as well as their Starbucks chocolate partnership. The company also plans to close their online gift business. The company expanded its global presence via joint ventures in china and India. From this case, we found two key lessons as following: (a) The first lesson is about the important of expanding to global market (b) The second lesson is about the importance for the firm to keep developing customer preferences. It is important for company to focus on how to formulate global product strategy to penetrate growing international markets. Therefore, Hershey should come up with new strategies in finance, marketing and production department to complete globally and to increase the customer satisfaction and market share. B. Vision Statement Since we could not find a vision statement of Hershey company then we suggest a vision as below: “Achieving consumers needs which making chocolate more healthy, delicious and delightful for life” From our opinion,......

Words: 6152 - Pages: 25

Hershey Company

...CONSUMER INTERNET Bear, Stearns & Co. Inc. – U.S. Equity Research February 4, 2008 Rating Information Sector Rating Target Price YE ’08 Long-Term Growth Market Weight 26.23% (YHOO-$28.38-Outperform) MicroHoo!: Where are We Now & Where Do We Go From Here? Trading Data 52-Wk Range Market Cap. Shares Out. Dividend Yield Avg Daily Vol. Float Yahoo! Corp. $18.58 - $34.08 $25,459 MM 1,336.4 MM 0.0% 27,140,000 NA Source: FactSet It’s not often that management of a company sees its stock skyrocket ~50% in one day and have to ask themselves “Is this the best day in company history or the worst?” We believe Yahoo!'s valuation has being hampered by near-term investment concerns which weighed on investor realization of the long-term potential and value of the company. As we pointed out in our 4Q earnings note, we thought the near-term investor disappointment created an opportunity for any suitor that was remotely serious. Fundamental Data EV/EBITDA Enterprise Value LT Debt to Total Cap. Book Value 16.4x $24,681.6 MM 0.0% $7.00 • Implications to Traffic and Search Market Share. Domestically, Yahoo! and MSN together command 11% in page views market share, more than double Google’s 5% market share. In the international market, however, Yahoo! and MSN jointly account for 8% of total page views, still slightly lower than Google at 9%. On Search, the combination of Yahoo! and MSN would represent 33% of query market share in......

Words: 7791 - Pages: 32

The Hershey Company

...The Hershey Chocolate Company Table of Contents Board of Directors 1 Introduction 2 Report 3 Financial Report Card 9 Annual Report Board of Directors Pamela Arway- Senior Advisor to Chairman and CEO of American Express Robert Cavanaugh- Managing Director of DLJ Real Estate Capital Partners Charles Davis- CEO of Stone Point Capital, LLC James Nevels- Director of Tasty Baking Company Thomas Ridge- President and CEO of Ridge Global, LLC David Shedlarz- Vice President of Pfizer, Inc David West- President and CEO of The Hershey Company Leroy Zimmerman- Senior Counsel of Eckert, Seamans, Cherin, And Mellott, LLC The Hershey Company The Hershey Chocolate Company is one of the leading producers of chocolate and confectionary products. Hershey produces such chocolates as: the Hershey Kiss, Hershey Chocolate Bar, Mounds, Almond Joy, Reese’s Peanut Butter Cups, Kit Kat, and York Peppermint Patty. In this report we will give you the company’s mission, the description, the background and history, highlights of major news events, the SWOTS, their marketing strategy, their commitment to social responsibility, and the financial report card. Business 100 Project Amanda Milgim Ava Winckler Hossai Rahimpur Karen Montoya The Hershey Chocolate Company When you think of Hershey what is the first thing that comes to mind? Chocolate right? Right! Hershey is one of the largest and oldest......

Words: 2052 - Pages: 9

CONTACTS | The Complete Digital Photography Manual - Volume 10 | Anthony Baines