Hershey-1 - responding with tactics such as running new ads...

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There are still some things that today’s consumers just aren’t willing to give up – such as chocolate. But as with eating out and clothing purchases, they are trading down. That is just fine with Hershey, America’s best-known chocolate maker. For years, riding the good times, premium chocolates have grown faster than lower-priced confectionery products. Slow to jump on the premium bandwagon, Hershey lost market share to Mars Inc.’s Dove line. But as consumers pinch pennies, sales of premium chocolate brands have gone flat. At the same time, Hershey’s sales, profits, and stock price increases as many consumers have passed up the higher-end goods in favor of Hershey’s chocolate bars, Reese’s Peanut Butter cups, and Kit Kat wafers. Hershey is
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Unformatted text preview: responding with tactics such as running new ads that stress the value. It is also cutting costs by paring back the varieties of products like Hersheys Kisses. As supermarkets trim back the shelf space they allot to premium chocolates, Hershey stands poised to cash in as consumers look to affordable Hershey favorites to satisfy their cravings. After all, even on a tight budget, people need to indulge at least a little. 1. Is Herseys resurgence based on a want or a need? Support your answer. 2. Evaluate the shift in chocolate sales based on benefits and costs that customers perceive. 3. What other products or brands are benefitting from the recent return to frugality?...
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