Market segmentation and strategies that could be used by the hershey company
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The document discusses market segmentation strategies that could be used by The Hershey Company for their chocolate bars. It identifies several potential market segments for Hershey, including promoting the health benefits of dark chocolate to adults. The target market analysis explores opportunities in health trends and specialized holiday products. To compete with major brands like Mars and Cadbury, the document recommends Hershey differentiate its products through new flavors and positioning statements emphasizing quality and customer benefits.
Market segmentation and strategies that could be used by the hershey company
- 1. Marketing Research 1 Running Head: Marketing Market Segmentation and Strategies That Could Be Used By the Hershey Company Victoria Rock AIU Online
- 2. Marketing Research 2 Introduction The marketing strategy is taken in the basis of internal and external environment of an organization. For the success of a company as well as its products and services, it is necessary to make some important and effective marketing decisions (Marketing Segmentation, Targeting, and Positioning, 2011). This paper will examine market segmentation and strategies that could be used by the Hershey Company for their product, chocolate bar.
- 3. Marketing Research 3 Marketing Strategy for Hershey and the Chocolate Bar Segmentation According to our book, Marketing, segmentation is the identification of subjects of buyers within a market who share similar needs buyer behavior (Marketing Segmentation, Targeting, and Positioning, 2011). Because of the world being made up of billions of buyers, with their own set of needs and behavior, segmentations aim is to match groups of purchasers with the same set of needs and buyer behavior. (Marketing Segmentation, Targeting, and Positioning, 2011) Segmentation is a form of critical evaluation and not a prescribed process or system because no two markets are the same. There are however a number of underlining criteria that can help with segmentation: Is the segment viable and can we make a profit from it? Is it accessible and how easy is it to get into the segment? Is it measurable and can we obtain realistic data to consider its potential? (Marketing Segmentation, Targeting, and Positioning, 2011) With adults accounting for the largest percentage of chocolate bar sales and with the increased interest in healthier foods, Hershey’s segmentation should cover: Promoting the health benefits of their dark chocolate products. Help in changing the mind of customers as to chocolate being an unhealthy snack. Increase potential sales through promotional programs throughout the year. Repackage so that the new look appeals to the consumers since it will be tagged as “low-calorie.” Target Market Consumers constantly change their preference for products, so it’s no big surprise that consumers’ wants for chocolate products has changed as well. They want a greater variety, which enables the industry to expand on their product line. This provides an opportunity for greater sales of the new product. With the health trend over the past decade, studies have shown that dark chocolate provides health benefits such as cardiovascular benefits as well as reducing an adult’s chance of cancer. (Marano, 2011) Non-traditional holidays as well as traditional holidays offer an opportunity to market specialized products tailored for a specific holiday while providing for the opportunity for specialized gift products to increase sales. (Food: Company Spotlight: Hershey, 2010)
- 4. Marketing Research 4 Positioning, Differentiation and Proposition Positioning is defined as the image of a particular product or service as seen by the consumers that are created by the marketer through promotional activities. An effective positioning builds up an image of the company in the mind of the consumers. (Marketing Segmentation, Targeting, and Positioning, 2011) The positioning and differentiation in the product will create a value proposition for the business and helps to create a competitive advantage that reduces competition. (Marketing Segmentation, Targeting, and Positioning, 2011) In the chocolate bar industry there are several companies operating. Some have a large market share while others have a smaller market share. The Hershey Company’s main competitors are Mars and Cadbury. The positing of these companies is quite high in the minds of the consumer due to the quality of their products. They have been in the industry for many years and have the leading market share. (The Hershey Company, 2012) In order to face competition, Hershey has to bring some differentiation in its product quality to create a better positioning in the minds of the consumers. By providing different flavors to their candy bar could cause an increase in the effectiveness of their product in the mind of the consumer. Different promotional strategies could be used such as: print advertising, sales promotion, public relation, personal selling, etc., could create a strong positioning (The Hershey Company, 2012). Proposition could be explained as the benefits that are delivered by the company to its customers. (Marketing Segmentation, Targeting, and Positioning, 2011) The value proposition of the chocolate bar is the increase in customer satisfaction by being produced in different tastes and flavors that accommodate all customers. High quality and different flavors would provide more benefits to the customers that are not provided by the competition. A good positioning statement would be very effective in increasing the customer base.
- 5. Marketing Research 5 Conclusion It can be concluded that a good marketing strategy is an important and crucial tool that can determine the success or failure of a product or service for a company. If Hershey uses the right marketing strategies they can take the market on health dark chocolate as well as other healthy snacks.
- 6. Marketing Research 6 Reference Food: Company Spotlight: Hershey. (2010, March). Marketwatch: Global Round-Up 9, no. 3, pp. 89-95. http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?sid=345aef1e-10ea-4e64- 9460-27afc745a81d%40sessionmgr12&vid=10&hid=101 Marano, H. (2011). The Scoop on Chocolate: Is chocolate really healthy? Psychology Today Vol. 44 Issue 2, p44-45. http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?nobk=y&sid=9b41 2f6c-be5f-4f73-87e4-5a02a9305fbf@sessionmgr110&vid=12&hid=101 (2011). Marketing Segmentation, Targeting, and Positioning. In H. S. Kerin R., Marketing (pp. 220-243). New York: McGraw-Hill/Irwin. (2012). The Hershey Company. Hoovers, Inc. http://subscriber.hoovers.com.proxy.cecybrary.com/H/company360/overview.html?companyId=75995 449
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