Market Analysis for Hershey

Topics: Chocolate, The Hershey Company, Cadbury Creme Egg Pages: 8 (1892 words) Published: December 5, 2014
MKTG716 Assignment No. 1
Market Analysis

Done by: Judione Marshall

Student No.: 300782420

Done For: Professor Brian Press

Due: October 2, 2014

Market Analysis for Hershey Chocolate Bar
1 Macro Environmental Analysis
1.1 Demographic
While the number of immigrants entering Canada each year is small with 0.7% accounting for the total population of Canada in 2011; recent data suggests that the foreign born population is higher in Canada (20.6%), compared to the United States (13.1%). It is projected that by 2031 a quarter of Canada’s population will be foreign born (25% - 28%). Since 2010 the majority of immigrants coming to Canada are from the Philippines, India and China immigrant population is steadily increasing with majority of it immigrant accepted coming from Asia and the Middle East. Canada’s population is aging, 15.3% of the population was over the age of 65, as opposed to only 7.6% in 1960. The number of Canadian seniors is rapidly increasing. Since July 1, 2011 the senior population grew at an annual average rate of 4.2%, compared to the annual average rate of 2.8% for the previous five years. Fewer Canadians are having children. From 2006 through to 2011, more families without children have been recorded than house with children. 1.2 Economic

Economist are forecasting growth for the Canadian economy. Overall the economy is expected to grow by 2.4% this year and by 2.7% in 2015. This is following economic growth in the third and fourth quarter of 2013. Average income for Canadians is increasing. Between 1995 to 2011 families with income in the bottom 20% saw an increase of 12.7% in their income, while families in the middle 60% saw an increase of 23.2% and those in the top income group saw an increase of 40.9%. Canadians spending patterns have changed significantly over the last six years. They are more saving conscious and are look for greater value for their money. 1.3 Natural

Air pollution is becoming a concern in Canada.
There has been a dramatic increase in pest and disease that affect cocoa plants, which are used to make chocolate. Climate in Canada varies across its landscape, from permafrost in the north to four seasons further south, however it is not a tropical climate making cocoa production impractical. In Canada dairy is produced under strict guide lines. In September 2013 the government revised the Canadian Dairy Regulations and Codes of Practices for the care and handling of dairy cattle as a guide to dairy farmers to ensure safe production of milk. The Dairy Farmers of Canada was established 1934 (originally under the name Dairy Farmer’s Federation in as the spokesperson for dairy farmers in Canada. 1.4 Technological

As of 2012 Canada has 83% penetration for internet access, compared to twelve years earlier of only 40.3%. More and more Canadians are using television services such as Netflix, to access their favourite TV shows. However not many have unsubscribed from their cable service. According to Duncan Stewart, director of research at Deloitte in Toronto "Virtually nobody in Canada is actually stopping paying for TV," More seniors are using smart phones. They have become the fastest growing demography to adapt to this technology. Dutch researchers have come up with first ever thin-film radio frequency identification (RFID), which means RFID tags could replace bar codes on food packages. 1.5 Political

Despite the international Sugar Agreement which has been in effect since 1903, Sugar and cocoa are still subject to rapid changes in price. Fluctuation in Provincial and Harmonized Sales Tax will affect cost of food from province to province. Increasing need for companies to be socially responsible.

Recent amendments to the Food and Drugs act as the government continues to restructure regulations are administered. 1.6 Social/Cultural
There is a growing awareness and acceptance in green consumerism among Canadians, even though participation in the movement...

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