The Hershey Company Is The Largest Chocolate Producer Marketing Essay

The Hershey association Is The Largest Chocolate Producer selling EssayThe Hershey Company is the strikingst java producer in North the States and also one of the oldest US manufacturers of chocolate and non-chocolate confectionary and chocolate-related grocery product. The Hershey Company operates in accordance with their mission statement Undisputed Marketplace leaders (www.hersheys.com). Among the companys well established brands areHersheys Chocolate Bar, Almond Joy, Kit Kat, Hersheys Kisses, Reeses and many an(prenominal) others.I shall begin an external analysis with the first element of Porters phoebe bird Forces Model Industry Rivalry. Slow confectionery labor growth increases the intensity take of rivalry among legion(predicate) competitors. It needs to be mentioned that the stage of confectionery industry life cycle is Maturity stage. These chocolate have been around since a 100 years and most people buying these chocolates are relieve consumers. The Hershey Com pany holds one of the leading positions in the domestic trade, currently having a market share in the U.S. of over 22%. Its biggest rivals in US market are Mars Inc (the leader according to the industrys 2010 results), Kraft Foods and Nestle. As for the world(a) competition, according to the latest results of the confectionery industrys global survey, Hershey Foods Corp. (USA) is number 5 among the top 100 inter interior(a)HERSHEY COMPANY away analytic thinkingconfectionery brands rating with 4,881 US($) millions sales volume figure. The main competitors in the global market are Mars Inc (USA), Cadbury Schweppes PLC (UK), Nestl SA (Switzerland) and Ferrero SpA (Italy).(The Big Get Bigger, 2011, January 10).Although the Hershey Company has a steady strong social movement in the U.S. chocolate and confectionery market, its global position needs to be strengthened and the focus should be unplowed on the global market. Rapidly developing countries such as chinaware and India have t o be Hersheys main targets because even a limited presence in these countries would provide a substantial increase in revenue. similarly it, company sightnot duplicate their domestic strategy and expect to be successful. On the contrary they must integrate into each countrys culture and develop an adapt strategy to immerse their brand name into these areas.The next propel I need to specify is the Risk of Entry by Potential Competitors force and this risk for chocolate industry is quite low. The reasons of it are signifi toilettet innovation barriers (high production output, large capital requirements, product differentiation, and customer loyalty). These factors deter small competitors from entering into the market. (Ellis M., McCants M., Frye N., milling machine J., Polk M., Rogers G, 2008, May 22).HERSHEY COMPANY EXTERNAL ANALYSISThe third base and one of the most influential in the Hersheys case force is dicker Power of Suppliers. Their bargaining power is relatively high because the number of suppliers of the chocolate industry is limited, supplier group is concentrated and there are no substitute products as well. The Hershey Company needs to find alternate (non-West African) locations or different methods for obtaining cocoa beans, because this would allow Hershey to have a secure have got over their raw materials.The next force is Bargaining Power of Buyers which can be described as low to moderate. This industry has several large volume retailers that have significant bargaining power. Large volume retailers can bargain for lower prices and take the industrys profits, that the differentiated products (with high level of brand identification and customer loyalty among the chocolate consumers) considerably reduce the power of buyers.Finally, the Threat of Substitutes for chocolate industry is moderate. There are numerous substitute products such as alternative cooking flavors (such as vanilla, butter, etc) and non-chocolate snacks (such as ice cream, fruits, etc.). Also there is a threat of unhealthy kitchen range of chocolate products among the consumers.Besides Porters Five Forces Model and Industrys Life Cycle I would like to analyze the way demographic, social, orHERSHEY COMPANY EXTERNAL ANALYSIStechnical trends have influenced the chocolate confectionery industry.There are roughly positive and negative socio-cultural and demographic trends that make an influence. Among the positive are the desire for richer products/changing tastes, joint ventures (i.e. coffee), dark chocolate health benefits and increased impressiveness of holidays. The negative trends are spreading of allergies, increasing obesity and greater environmental concern.Among the social/political trends a problem of child labour and unsporting trade can be named. For example, Hershey has been criticized for not having programs to ensure sustainable and honest cocoa purchase, lagging behind its competitors infair trademeasures. (Hershey Dominates US Market, but Lags Behind Competitors in Avoiding Forced Labor, Trafficking and Child Labor (2010, kinsfolk 13). The positive technological trends are technological improvements to milking machines, efficiency improvements for distribution, telecommunications. And the negative technological trends are lack of government support to developing countries (poor education of tonic technologies) and increased cost of managing the manufacturing technological progress. And I would like to finish this demonstrate with Hershey Company founder Milton Hershey quote about the most distinctive feature of speech of Hersheys products Give them quality. Thats the best kind of advertising in the world.HERSHEY COMPANY EXTERNAL ANALYSISREFERANCE LISTHershey slogan (n.d.) is retrieved from www.hersheys.comThe Big Get Bigger (2011, January 10). Retrieved from http//www.candyindustry.com/Articles/Special_Reports/BNP_GUID_9-5-2006_A_10000000000000972812Ellis M., McCants M., Frye N., Miller J., Polk M., Rogers G, (2008, May 22). The Hershey Company Introducing the World of Chocolate. Retrieved from http//www.washingtoniv.com/?p=65Hershey Dominates US Market, but Lags Behind Competitors in Avoiding Forced Labor, Trafficking and Child Labor (2010, September 13). Retrieved from http//www.laborrights.org/stop-child-forced-labor/cocoa-campaign/ intelligence information/12397Confectionery Company Shares Report (2010), USA. Packaged Food Euromonitor from trade sources/national statistics.