Godiva And Hershey's Case Summary: The Demand Of Chocolate

758 Words 4 Pages
Summary: The demand of chocolate, at first, vastly outweighed the processors supply. Because of this the number of processors has increased immensely over the last couple of years, especially in West African and Asian nations. The outcome of this caused the global processing capacity to grown more than 400,000 metric tons in just five years. Godiva and Hershey’s market to two totally different groups. Godiva markets their chocolate to people who are willing to spend a little bit more money to satisfy their craving while Hershey’s seeks a level of quality that is sufficient but not overly expensive. As a result, Godiva buys more expensive coco beans to get the higher level of chocolate they are looking for while Hershey’s will buy cheaper …show more content…
So, there is too much chocolate being produced and not enough consumers buying the chocolate products. This is all occurring even though in Brazil consumers used to eat around 10.5 ounces to now eating 90 ounces of cocoa beans per year. This results with companies, new or old struggling to make a profit.

The Alternative:
Advertising
Decrease your product's price
Companies Merge

Analyze the Alternative:
Advertising- Advertising can help promote your products. By advertising it can increases the consumer's interest in your chocolate. Types of advertising can include TV, newspaper, website, and social media advertising.
Decrease your product's price to sell more to the consumers who want cheap quick chocolate to satisfy their wants.
Companies Merge: If two quality companies would merge together they would produce less and get the consumers from both companies

A Solution:
Advertising is our Solution

A Plan of
…show more content…
Our plan with adding the new product line and the new wrapper is to increase the demand for chocolate. Once the demand for chocolate increases we hope the supply and demand for chocolate reaches an equilibrium point, and at this point we should be maximizing our profits.The new product we plan on introducing is a cookie dough chocolate bar. Hershey’s has had the same type of wrapper for years, so we decided to change it up a little and create a new flashy wrapper. The new flashy wrappers will help market our product by making it stand out, and some people like change or something

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