Case Analysis - Hershey's
Hershey’s is one of the companies which had a sweet spot in the time of financial recession while others plunged into a decline in sales and profit. Hershey’s managed to feed the hunger of the consumers for a less expensive type of chocolate. As the Americans spending’ changed from carefree to being frugal, the recession provided a vacuum for the Hershey’s company to innovate and make the staple food of the American for sweets available to the prudent consumers.
Hershey’s resurgence in the market during the times of recession was due to a WANT of a SUBSTITUTE for an instant delight and satisfaction; a cheaper chocolate for the daily consumption of the American people which propelled the consumers to find comfort in “little boxes of happiness” called chocolates. The recession in America brought depression to the American people because they were not capable anymore of buying and indulging themselves on luxury and premium products. The demand for “sweet solace” increased its production and distribution as the financial crisis lingers up to the present. The Americans ' love for the sweet made the confectionery industry triumph over the recession for the people find comfort in chocolates that bring a temporary bliss in the times of anxiety and insecurity.
Aside from finding “minute happiness” and comfort for depression in Hershey’s chocolates, consumers also saw it as a way for them to experience a fragment of leisure that fitted their small budgets. Instead of paying for vacations and getaways, it was easier for them to run to the convenience store, buy $2 and $3 chocolates and stay at home.
With the recession in full swing, consumers also still found a way to avail of the health benefits that are present in chocolates as recent research shows. In an increasingly health-conscious world, people are getting their hands on whatever they can to have a healthy lifestyle.
Consumer frugality brought about by the Great recession was either the profit boost a
Hershey’s resurgence in the market during the times of recession was due to a WANT of a SUBSTITUTE for an instant delight and satisfaction; a cheaper chocolate for the daily consumption of the American people which propelled the consumers to find comfort in “little boxes of happiness” called chocolates. The recession in America brought depression to the American people because they were not capable anymore of buying and indulging themselves on luxury and premium products. The demand for “sweet solace” increased its production and distribution as the financial crisis lingers up to the present. The Americans ' love for the sweet made the confectionery industry triumph over the recession for the people find comfort in chocolates that bring a temporary bliss in the times of anxiety and insecurity.
Aside from finding “minute happiness” and comfort for depression in Hershey’s chocolates, consumers also saw it as a way for them to experience a fragment of leisure that fitted their small budgets. Instead of paying for vacations and getaways, it was easier for them to run to the convenience store, buy $2 and $3 chocolates and stay at home.
With the recession in full swing, consumers also still found a way to avail of the health benefits that are present in chocolates as recent research shows. In an increasingly health-conscious world, people are getting their hands on whatever they can to have a healthy lifestyle.
Consumer frugality brought about by the Great recession was either the profit boost a
Bibliography: http://www.stanford.edu/~pista/cons_recess_August_2011.pdf http://www.huffingtonpost.com/2012/06/19/the-lipstick-effect-women-beauty-recessions_n_1606298.html http://www.dailymail.co.uk/news/article-1172971/Americans-bust-recession-blues-Hershey-bars.html http://online.wsj.com/article/SB123306391902119401.html http://ezinearticles.com/?Profit-From-Chocolate-Stocks-in-This-Recession&id=2625999 http://www.thechocolatelife.com/forum/topics/mixed-news-from-hershey http://www.businessweek.com/stories/2009-10-14/hersheys-arrested-developmentbusinessweek-business-news-stock-market-and-financial-advice