Case Analysis

(Hersheys Food Corporation)

Submitted to:
Dr. Stephanie Dadivas

Submitted by:
Monique Angela Garcia
Grecel Calbog
Michael Rey Galeno
Sharmaine Parcia
Rhissa Joyce Umadhay
BS Act 4-3
 Statement of the Problem

Hershey Food Corporations competitive strategy was not potent that they fell behind its major
competitors.

Objectives

To be the leading and strongest confectionary company in and out of the United States.
To retain its position as the leader in the confectionary industry in the US and globally.
To increase its profitable market share.
To develop a strong and effective competitive strategy.
To be able to implement the competitive advantage and to secure its sustainability.

Areas of Consideration

Marketing Strategy - Hershey has stepped up its focus on the convenience and vending channels, two
channels in which competitor Mars has traditionally done well. Hersheys must establish its own
marketing strategy to be able to oppose with its competitors and retain its title as one of the leading
confectionary company.

Differentiation Strategy - Hershey Foods Corp. does not focus on the products that they originally
manufacture, instead they bought other confectionary products for the consumers to have an array of
choice of their products. Hersheys must design a product that is different and within the consumers
tastes. Hersheys should also invest their time in developing a product that can clearly position themselves
as a leader in the confectionary industry.

Alternative Courses of Action

Create a differentiation strategy that could make their products unique and will enable them to be a leader
in the confectionary industry.

Develop a competitive intelligence that can build industry awareness, support the strategic planning
process, develop new products and create new marketing strategies and tactics.

They have to invest in advertisement, if they have to maintain/increase their market share.

Use international advertisement to promote their product.

Use multinational channel to increase the sales.

Hershey should adopt the Global Channels of Distribution to increase the sales worldwide in order to
compete with its competitors.
Recommendations

We recommend that Hershey should adopt the Global Channels of Distribution to

increase their sales in order to compete with its competitors. Hershey needs to continue to focus
on the global market. Hershey currently has a limited presence in many areas of the world.
Hershey has to develop a strong range of brands, increased the quality of their products and
focused on innovation of the existing products. The company must also engage in product
stimulation on a regular basis that enables it to stay on top of other competing products. They
must integrate into each countrys culture and develop a strategy to immerse their brand name
into these areas. This will make Hersheys, which is already a good performer in the industry, a
more competitive company in its market.

Conclusion

Hersheys market share is less than 10 percent, lowest among its competitor. So, Hershey should
come up with new strategies in finance, marketing, production department and in organization structure to
increase the market share and compete globally. Global competitive advantage will mean having the best
technologies and processes for designing, manufacturing, selling and servicing products at the lowest
possible cost. To gain lasting global competitive advantage a company has to leverage its capabilities
around the world so that the company as a whole is greater than sum of its parts. Selling globally, having
global brands or having operations in different countries will not be enough. This study used Hershey
Food Corporation as a case to demonstrate how to formulate global product strategy to penetrate growing
international markets.