Hershey's Presentation
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Transcript of Hershey's Presentation
![Page 1: Hershey's Presentation](https://reader033.fdocuments.net/reader033/viewer/2022061320/577cc6831a28aba7119e752b/html5/thumbnails/1.jpg)
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Done by: Done by:
Sharifa AL-toubi.5456431Sharifa AL-toubi.5456431Annisa Gilang.5363209Annisa Gilang.5363209Maddi Gimbia Baba.5403480Maddi Gimbia Baba.5403480Tabish Mujahid. 5395886Tabish Mujahid. 5395886Jannat Rehana. 5339868Jannat Rehana. 5339868
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Background Mission and vision Timeline Corporate Social Responsibility Product life cycle Marketing mix Financial Analysis SWOT analysis PESTLE Porter Five Forces Recommendation (general strategy, Ansoff Matrix, & Success
Criteria)
Table of Content
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Hershey’s Background
• Largest producer of chocolate in North America.
• Milton Hershey is the owner.
• Theme park.
• The first flagship store New York's time square.
• Hershey products are sold to more than 2 million outlets.
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Hershey’s Mission& vision
Vision:“Achieving consumers needs which making chocolate more healthy, delicious and delightful for life”
Mission :“Bringing sweet moment of Hershey happiness to the world every day.”
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Hershey’s Social Responsibility
• The theme park includes , school, housing and park for employees of Hershey.
• Milton Hershey school for orphan with residential services including meals and health care.
• Join the international cocoa initiative foundation.
• Change product packing to minimize the waste during the manufacturing process.
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SWOT AnalysisStrengths:
• High quality products
•Strong name and brand image
•Corporate Social Responsibility
Weaknesses:
•More focus in US market
•Advertisement expenses
•71% Cadbury generate their sales outside USA.
Opportunities:
• Changing tastes or flavors; new sugar free products
•Expanding across Asia
•Develop new packaging (go green)
Threats:
•High competition with Cadbury, Nestle, and Mars
•Manage the increase in prices of raw materials
•Increasing competition
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Hershey's Financial
Analysis
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Ratio/Year 2006 2007 2008
Current Ratio 0.98 0.88 1.06
Quick/acid test 0.43 0.38 0.39
Debt/Equity (%) 1.83 2.17 4.72
Gross Profit Margin% 37.7 33 34.25
Operating Profit Margin % 20.08 9.28 11.49
Return on Assets (%) 13.44 5.32 8.56
Return on Equity % 97.86 36.11 81.8
Net profit Margin % 11.31 4.33 6.07
Return on Invested Capital % 22.82 10.55 14.82
Interest Coverage 8.55 3.86 6.02
Total Assets Turnover 1.17 1.18 1.3
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World’s largest chocolate bar
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Hershey’s life cycle
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Marketing Mix
Product: Hershey’s products include chocolate, gum, cereal bars and sugar
confectionery products. Chocolate is the largest product of Hershey and accounts for 55.8% of their products.
Price: Setting price a bit below that of premium chocolate will cause
consumers to believe they are getting premium chocolate at an affordable price.
Place: Hershey distribute to more than 2 million outlets. Hershey's products are sold in about sixty countries worldwide
Promotion: Hershey spend a lot of money advertising for their products. Hershey uses different types of media to advertise for their
products. Hershey offers different type of copons.
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Hershey’s Porter five forces
Potential EntrantsLow
SuppliersHigh
Industry Competitors
HighBuyersLow
SubstitutesModerate to
high
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Political/Legal Analysis:- Major issue is child labour in cocoa farms- Government control prices
Economic Analysis- In 2006, due to hurricane impact, the price of refined sugar
decreased from $0.38 to $0.31 per pound (Hershey’s 10-K, 2009).
- This allowed companies to cut retail costs and redistribute the savings.
- A lot of waste material is produced, and companies spend thousands of dollars on disposing it.
Hershey’s PESTLE
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Sociocultural Analysis:- Consumers want a larger variety of chocolates and healthier alternatives to
the traditional chocolates.- Dark chocolates provided several health benefits by adding a flavonoid in the
chocolate that prevents various cardiovascular problems (Chocolate Trading Co., 2005).
Technological Analysis:- The chocolate and cocoa industries lack supports of Non-Government
Organizations (NGO), which restrict the farmer’s access to business guidance, funding, and continuing education.
- Farmers can’t learn new technologies making them less efficient.- This prevents the chocolate manufacturers from gaining cocoa efficiently to
create more chocolates for the consumer.
Hershey’s PESTLE
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BCG Matrix
MARKET SHARE
MARKET GROWTH
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General strategy:
cooperate level strategy Growth Diversification Merger and acquisition
Future strategy
Recommendation
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Ansoff’s Matrix
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Diversification
Product DevelopmentMarket Penetration
Market Development
New
Old
Mar
ket
Risk
NewOld
Risk
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Success criteria Suitability Acceptability
Fair trade fun organisation Feasibility
Recommendation:
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Thank You for Listening
Any Questions??