Hershy's Strategic Planning Essay Example | Topics and Well Written Essays - 1000 words

Hershys Strategic grooming - Essay ExampleThis promotional strategy was the biggest marting activity of the company which became one of its strongest core competencies. an early(a)(prenominal) major(ip) competencies include its purchase of British candy maker Cadbury Schweppes PLCs US business in 1988 and many another(prenominal) other candy, pasta and ice-cream assemblyrs in the United States. Continuous new product developments other than drinking chocolate through acquisition of different confectionery product manufacturers in US realise become its major core competency as closely as a competitive advantage. Hershey has maintained the leadership role in the global chocolate industry through effective bulls eye presence in threescore countries in the world. It has 43% market role in the chocolate market and 18% market share in the non chocolate candy market. The company is globally recognized by top cross offs like Hershey itself, Kisses, kit up Kat, Reeses, Almond Joy , Twizzlers, York and Jolly Rancher. Hersheys has retained 30% market in the global confectionery market that is near about double of its nearest competitor. Hersheys has the opportunity to expand its areas of core competencies in other areas of its business which are strong distri andion channel through franchises, efficient management, product quality and many impressive brands. These can become its competitive advantage. The company exports its product to most of its foreign markets. So, it can manufacture in different countries to cut down the cost of distribution mainly to reduce the price which talent be one of the competitive advantages to compete with the domestic brands of each foreign market. The Hersheys brand is well popular for its quality and it needs to concentrate on low fat and calories product and also saccharide free candies so as to attract a particular demographic segment of customers who do not enjoy chocolate because of health consciousness (Zhang, 2001, p.2 6). 2. Internal strategies The companys internal strategies lie in different areas of its business, like innovation in the product quality with obeisance to change in lifestyle and food consumption habits of the worldwide consumers. Also, an important strategy would be environmental free packaging as a way of taking on effective social responsibilities. Hersheys needs to concentrate on the quality differentiation of the existing products with respect to competitors product rather than focusing on the product differentiation. The brand has a market presence in more than sixty different markets in the world but they have to consider the similar taste and preference of the consumers. It needs to differentiate taste and preference with respect to consumers choice of each different location so that it can compete with the local players in foreign markets. Apart from categorizing product by geographic segmentation it also needs to concentrate on producing low fat and sugar free products to extend its target to a different segment of people who do not like chocolate and other confectionary product for health considerations. Most of the Hersheys products have packaging that is not environmental friendly. The packaging is also one of the major criteria for the food products especially for the confectionary products. Although the brand have attractive packaging which is essential for promotion as well as being a quality indicator but they also need to