Hershey's® Ice Cream | Home · Created Date: 2/4/2020 9:35:54 AM
Hershey's Presentation
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Transcript of Hershey's Presentation
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
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
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.
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.”
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.
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
Hershey's Financial
Analysis
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
World’s largest chocolate bar
Hershey’s life cycle
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.
Hershey’s Porter five forces
Potential EntrantsLow
SuppliersHigh
Industry Competitors
HighBuyersLow
SubstitutesModerate to
high
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
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
BCG Matrix
MARKET SHARE
MARKET GROWTH
General strategy:
cooperate level strategy Growth Diversification Merger and acquisition
Future strategy
Recommendation
Ansoff’s Matrix
Diversification
Product DevelopmentMarket Penetration
Market Development
New
Old
Mar
ket
Risk
NewOld
Risk
Success criteria Suitability Acceptability
Fair trade fun organisation Feasibility
Recommendation:
Thank You for Listening
Any Questions??