The Hershey Company
1. History and Overview
The first Hershey’s Chocolate Bar was produced in 1900, six years after the firm that would become The Hershey Company (“Hershey”) was founded by candy-manufacturer Milton S. Hershey. 2. Strategic Planning, Corporate Vision
Until late last year when Hershey announced plans to revamp how it organizes its business with two new strategic business units—one for chocolate and the other for sugar confectionery—the company’s marketing organization was comprised of five primary product groups and three divisions: Hershey North America, Hershey International and the Global Marketing Group. According to their 2009 Annual Financial Report, this organization structure allowed Hershey to capitalize on unique customer and consumer trends, leverage marketing and sales leadership in the US and Canada, and focus on key growth areas in global markets (Annual Report p. 2). As indicated by a November 2nd, 2010 press release, the new structure is meant to leverage competencies for global growth, strengthen regional focus with additional resources, and augment confectionery consumer insights and innovation capabilities. (http://www.thehersheycompany.com/newsroom/news-release-1490640.aspx) In 2009, Hershey put forth their first Corporate Social Responsibility Report. In the opening paragraphs of this report they call Corporate Social Responsibility integral to their mission of “Bringing sweet moments of Hershey happiness to the world every day.” Kotler and Keller (27) contend that not only should a mission statement be short, memorable, meaningful, and enduring, it should provide employees with a shared sense of purpose, direction, and opportunity. Hershey is attuned to these needs. The report elaborates, “Our employees are committed to our mission…In all of our efforts, we are guided by our values, which have enabled our company to succeed over the long term.”
Hershey’s internal marketing strategy is driven by their stated corporate values—“One Hershey: A global and diverse team, operating with integrity, working together, determined to make a difference (Hershey Our Values). Kotler and Keller (29) identify the importance of utilizing three specific internal groups toward the goal of successful strategy making: employees with youthful perspectives; employees far removed from company headquarters; and employees new to the industry. In a concerted effort to encourage ideas from the younger generation, Hershey has implemented an innovative approach by putting in place an R&D mentoring program where new Millennial employees are paired with experienced Boomers. Hershey recognizes that Millennials have categorically received greater support from their schools and families and expect it from their employers as well. Hershey also has a program called Quality Through Excellence that engages “the most committed and energetic thought leaders from all over the company and from different functional areas.” Among other things, these employees are charged with the duty of provided feedback to the company about what’s going well and what needs to be changed. Further, they have redesigned their performance management system to reward employees for their contributions to the success of the company. (Attracting, Developing and Retaining Talent p11) A superior value chain incorporates a high level of product quality, service, and speed (Kotler and Keller 23). The conjunction of these components allows marketers to achieve profitable growth by, among other things, building loyalty and capturing customer lifetime value. Hershey has an ongoing commitment to deal fairly and ethically with all parties in its global value chain which extends from the farmers who supply raw materials for ingredients to consumers all over the world. They are dedicated to conserving energy and reducing emissions throughout their value chain, beginning with a company-wide initiative in 2007 to reduce greenhouse gas...
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