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. The Hershey Company has 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. Hershey s products include chocolates, confectioneries, food and beverage related products such as baking ingredients, toppings etc. The company lives by its mission statement, Undisputed Marketplace Leadership (www.hersheys.com). Hershey continues to preserve a higher position by successfully converting consumer desires into reality.
2. Brand Research
2.1 Detailed History Milton Hershey was fascinated with the process of making chocolate, and his interest began at an early age under candy maker Joe Royer of Lancaster, Pennsylvania. Milton was an entrepreneur who was keen to own a candy-making business. His first successful business was the Lancaster Caramel company and it was only in 1893 that Milton expressed interest in making Chocolates. Soon after, Milton began producing chocolate coated caramels that eventually led to the founding of Hershey Chocolate Company in 1894. After much experimentation, Milton discover the famous ed Hershey s Chocolate recipe and sold his caramel business in 1900 for the sum of $1 million. In 1903, Milton built his company at a place called Derry Township in Pennsylvania, which was later renamed Hershey, Pennsylvania in 1906. This was the first step towards the company s expansion since this city had a large population, was easily accessible to ports that would supply sugar, cocoa beans etc, and had a vast amount of dairy farms. As quoted on the corporate website, In a long and useful life, Milton S. Hershey proved himself to be a courageous entrepreneur, a determined builder and a compassionate humanitarian (www.thehersheycompany.com)
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2.2 Company Mission statement The Hershey Company s mission statement, according to their corporate website, read as follows, Our mission is to be a focused food company in North America and selected international markets and a leader in every aspect of our business. Our goal is to enhance our #1 position in the North American confectionery market, be the leader in U.S. chocolate-related grocery products, and to build leadership positions in selected international markets (www.hersheys.com) This statement is further broken down into five categories to ensure leadership in the marketplace. 1. Hershey values creation of their products. 2. Encourage and promote healthy living. 3. Continuously note consumer desires for their product. 4. Maintain high levels of ethics and conduct. 5. Sustain a strong result oriented approach to business.
2.3 Corporate Expansion In 1968, the company was renamed as Hershey Foods Corporation. During this time, Hershey sought to expand its product line by partnering up with several related c ompanies and even created different brands for their own products. Some famous partnerships include San Giorgio Macaroni Foods(1966), Y&S Candies, makers of Twizzlers liquorice(1977), Peter Paul/Cadbury s U.S. Confectionery operations(1988) and Ronzoni th Foods(1990). Hershey Foods Corporation became the industry leader by the end of the 20 century. The company continued diversifying and soon acquired Joseph Schmidt confections in 2005 and a year later, in 2006, acquired Dagoba Organic Chocolates. This maintains Hershey s top position in the North American market. (www.hersheys.com)
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3. P.E.S.T. Analysis
3.1 Political/Legal Analysis - Chocolate producers unable to distribute products to certain countries. - Major issue is child labour in cocoa farms...