Industry Analysis on The Hershey Company
The Hershey Company is the largest chocolate manufacturer in North America. Founded in 1894, Milton Hershey created the first cocoa product sold to the public. Although Hershey’s chocolate is not considered a high quality chocolate brand, it was introduced at a time when chocolate was largely consumed by the wealthy. Milton Hershey was a pioneer in making chocolate available and affordable for everyone.
We chose The Hershey Company over the other candy conglomerates because it is a well-known brand. While they produce a wide variety of products including Twizzlers and Jolly Ranchers, Hershey’s is notably recognized for their quality chocolate. When consumers want a chocolate bar, a majority buys …show more content…
Driven by the changing preferences of their consumers, The Hershey Company’s primary focus has been on product development (concentration strategy) and additional growth through acquisitions (horizontal integration strategy). Just this year, they launched several new products: Reese’s Pieces Peanut Butter Cup, Hershey’s Simply 5 Chocolate Syrup, and Lancaster Soft Crèmes. Hershey’s has continued their product innovation by capitalizing on two consumer trends: snacking on the go and healthier snacking options. They introduced Hershey’s Snack Mix and Reese’s Snack Mix, which are both sweet and salty. These on-the-go snack packs, which are aimed to replace traditional boring snacks, include various nuts, pretzels, and bite-sized candies. Through their acquisition of the Brookside brand, Hershey’s introduced a new Fruit & Nut Bar line as a healthier alternative to candy …show more content…
While the Hershey name is synonymous with chocolate in many people’s minds, The Hershey Company is invested in more than just chocolate. Hershey’s has used related diversification strategies in the acquisitions of companies in similar markets. The company has many brands under license that expand Hershey’s into different areas of the food industry. In 2015 Hershey’s acquired the beef jerky company, Krave Pure Foods. The acquisition of Krave brought Hershey’s into the growing health food industry (Giammona). Later in 2016, they will continue this focus on the healthy-snack niche through the launch of their SoFit products, which include functional snack bars, fruit squeezes, and nut and seed packs. These recent examples show that Hershey’s has not only continued to innovate in an industry they have dominated domestically for years, but they have also stayed current by taking advantage of consumer trends to stay ahead of their
The Hershey Company is the largest chocolate manufacturer in North America. Founded in 1894, Milton Hershey created the first cocoa product sold to the public. Although Hershey’s chocolate is not considered a high quality chocolate brand, it was introduced at a time when chocolate was largely consumed by the wealthy. Milton Hershey was a pioneer in making chocolate available and affordable for everyone.
We chose The Hershey Company over the other candy conglomerates because it is a well-known brand. While they produce a wide variety of products including Twizzlers and Jolly Ranchers, Hershey’s is notably recognized for their quality chocolate. When consumers want a chocolate bar, a majority buys …show more content…
Driven by the changing preferences of their consumers, The Hershey Company’s primary focus has been on product development (concentration strategy) and additional growth through acquisitions (horizontal integration strategy). Just this year, they launched several new products: Reese’s Pieces Peanut Butter Cup, Hershey’s Simply 5 Chocolate Syrup, and Lancaster Soft Crèmes. Hershey’s has continued their product innovation by capitalizing on two consumer trends: snacking on the go and healthier snacking options. They introduced Hershey’s Snack Mix and Reese’s Snack Mix, which are both sweet and salty. These on-the-go snack packs, which are aimed to replace traditional boring snacks, include various nuts, pretzels, and bite-sized candies. Through their acquisition of the Brookside brand, Hershey’s introduced a new Fruit & Nut Bar line as a healthier alternative to candy …show more content…
While the Hershey name is synonymous with chocolate in many people’s minds, The Hershey Company is invested in more than just chocolate. Hershey’s has used related diversification strategies in the acquisitions of companies in similar markets. The company has many brands under license that expand Hershey’s into different areas of the food industry. In 2015 Hershey’s acquired the beef jerky company, Krave Pure Foods. The acquisition of Krave brought Hershey’s into the growing health food industry (Giammona). Later in 2016, they will continue this focus on the healthy-snack niche through the launch of their SoFit products, which include functional snack bars, fruit squeezes, and nut and seed packs. These recent examples show that Hershey’s has not only continued to innovate in an industry they have dominated domestically for years, but they have also stayed current by taking advantage of consumer trends to stay ahead of their