By: Kathryn Frehse
Business 330 Principles of Marketing
Professor Susan Craver
December 3rd, 2012
The Hershey Chocolate has been dominating the market in chocolate in the United States for many years. They have expanded to different countries. But, they have not expanded to Europe. This is an excellent market where the Hershey chocolate would have competition, but they would also thrive in such a large market. With the right promotion, integration, and careful checks and balances for the introduction of this product. It can be successful. If every one of these marketing techniques are not carefully looked at then the product could easily fail. Hershey knows all too well the ideas behind marketing. They are already in 90 countries and the leader in selling chocolate in the United States. Moving their product to Europe could be one of the greatest challenges they have ever faced. Taking into consideration the customer value equation, the marketing process on how they will promote the product, and analyze the product. The different macro environmental factors the marketers will have to worry about in Europe. That they do not have to worry about in the United States. Since everyone loves chocolate the product is loved by both children and adults. The biggest factor of the success or failure of the product will be the competition. Europe produces some of the finest chocolate in the world. The United States and international ethical marketing consideration will also have to be taken into effect when they think about marketing this product to children. Making sure that their advertisements are not false or manipulating the minds of young children. The customer value is important to marketers. The customer value equals the perceived benefits/price as stated in S. White, (2012) (Section 1.3). The perceived benefit is that someone is hungry and they want something sweet at is affordable. With Hershey’s wide range of chocolates, this would satisfy a hunger. This would make the customer believe that the value of the chocolate was worth the price in Euro.
Hershey’s chocolate would be a good product that is sold in over 90 different countries, but not in Europe. (Herhsey Company, 2012). If they were to expand to Europe this product would do well. Even though Europe has many competitors, the chocolate is made different and tastes different then the locally maid chocolate in Europe. This is what is going to set it apart from the other competitors in Europe. The four utility of these are form, Time, place, and ease of possession. The form of Hershey’s chocolate has two raw materials. The first is cocoa beans that are imported from all over the world (Hershey Company, 2012). The other is the fresh milk that is pumped daily. Before the Hershey factory moved to Pennsylvania it was known as dairy country. (Hershey Company, 2012). The cocoa beans are roasted and split up. Then they are melted down to make a liquid form of chocolate. From there they are combined with milk, sugar, and butter to give a rich texture. Then they are added to peanut butter, almonds, or simply made into Hershey kisses. (Hershey Company, 2012). The Hershey candy already has a reputation in many European countries because they are featured in many American films. Having these bars shipped to large grocery stores, and advertised on TV and internet commercials, will help. If someone chocolate for an occasion or just because, then they can easily go to a store and buy them while they are getting there weekly grocery’s. Which adds value to the product since it is easy to obtain. This takes care of the time and place utility. If they want chocolate they are able to do it quickly and easily with little hassle. Since the candy is cheap, and satisfies a hunger the ease of possession speaks for itself. There would be no lay away, or payment plan. In Europe layaway and payment plans are less common practice then in the United States, and it...