Hershey’s target market is a crucial part of hershey’s marketing strategy. The hershey company is always looking for ways to increase their customer base, with the ultimate goal being to have hersheys chocolate in every home. This essay will go over who hersheys target market is and how hershey can reach them more effectively.
The study of consumer behavior is critical when formulating marketing plans for a firm. There are several studies published that examine consumers’ attitudes toward a certain brand or product. Several models have been developed to analyze customers’ purchasing decisions, including the Hierarchy of effect model, consumer information processing model, and so on. Many factors influence customer decision-making, including psychographic, demographic, and geographic variables. We then go into detail by segmenting consumers according to their characteristics. These models will be used to study consumer decision-making processes. But first, we must understand the firm’s product and business, which are outlined below.
Prices start at $12
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Milton S. Hershey, a Pennsylvania native, founded the company. Milton Hershey School is a school for orphan boys that Milton Hershey opened in 1905. Not just in chocolate manufacturing, but also in social work, Hershey was involved from the start of his firm in 1905 by creating his own factory and producing delicious chocolates. In addition to being engaged in business activities, Milton Hershey established a school for orphan boys known as Milton Hershey School today.
Milton Hershey endowed the school with its wealth and control in 1918. Milton Hershey established several successful items, including Hershey’s syrup, Mr. Goodbar, Krackel, and others throughout the 1920s through 1940s. It also manufactured field rations for troops serving in World War II. Since then, Hershey has produced delectable chocolates in approximately 90 countries (Hershey n.d.).
TARGET MARKET OF HERSHEY
Because Hershey is now available in more than 90 countries throughout the world, it’s clear that the company’s aim market is to expand its business all over the world. As a result of this, Hershey aims to be accessible everywhere across the planet. If we analyze demographic data in order to determine the target market for Hershey, we discover that boys and girls aged 18 to 25 are targeted by the firm.
Hershey produces sweets, so it will be consumed by children and adults alike. However, the company’s main consumer is adult women between the ages of 18 and 25. Also, mothers play a crucial role in families when it comes to choosing sweets for their children, therefore we may see them in adverts for the firm. For Hershey, adult target consumers account for the majority of sales (Phipps, C., 2010).
For describing the firm’s target market decision-making process, we must select a specific country. For example, in the case of UAE, demographically, the target consumer of Hershey would be a woman between the ages of 18 and 25. Ethnicities are covered because chocolates can be eaten by anybody, regardless of their background. Hershey targets consumers who make less than AED 20000 per month as a whole household income.
We discovered that teenagers who live an affluent lifestyle are the main consumers of Hershey. These individuals do not buy anything without thinking; they first select the finest alternative and then purchase it. To retain its customers connected to it, the business must maintain the quality of its goods (Phipps, C, 2010).
The social, cultural, and societal norms inside the society also have an impact on a consumer’s purchasing habits. Chocolate consumption is influenced by a variety of factors much like other goods. These elements influence chocolate consumer’s purchase decisions. Chocolate is a mass-marketed food that is readily available to everyone. The most essential thing to remember is that consumers in the chocolate market seek for a wide range of products and desire them according to their own preferences.
Chocolates are frequently given on special occasions, such as Christmas, which causes chocolate producers to focus on a society where events are important. Consumers are compelled to buy chocolates when occasions occur. Furthermore, the custom of giving gifts to family members aids in the sales of chocolates (Thinking Made Easy, 2010).
Consumers are concerned with many aspects of chocolate, including its shape, texture, temperature, and melting. Other elements include the chocolate manufacturer’s ethical responsibility and corporate social responsibility. The company’s ethical responsibility includes legal compliance, environmental issues, and other factors. In making the product, the company must adhere to industry rules and regulations set by regulators.
Hershey always adhered to industry norms when producing candy. The company’s social responsibility also influences customers’ perceptions of the firm. Hershey established a school for orphan boys, which would undoubtedly have a favorable impact on consumers’ views of the business and influence their selection decision favorably (Thinking Made Simple, 2010).
Apart from the aforementioned variables, there are a number of social forces that affect consumer purchasing behavior, and religion is most frequently cited. There are numerous religions throughout the world, some of which ban certain items. The fact that chocolate is eaten by people of all faiths is a good thing. Sweet is liked by everyone, regardless of their cultural background. Many religious festivals also have an impact on chocolate purchases.
For example, Christians celebrate Christmas; Hindus observe Diwali, Holi, and Rakshabandhan; Muslims commemorate Eid; and so on. Chocolates are eaten during each celebration. The Hershey marketing plan is aided by the contemporary custom of friendship, which states that friends like to give chocolates as presents. Sweetness has no negative or impede effect on social culture; society readily incorporates sweets into its food pyramid.
PSYCHOLOGICAL INFLUENCE ON BUYING BEHAVIOR
Psychological variables, like as social ones, have an impact on consumers’ chocolate eating habits. Motivation, learning, attitude, health, and other psychological factors are at play here. Hershey is able to successfully leverage these psychological variables in order to maximize the company’s profits. The desire for chocolate is a significant element that influences chocolates sales because if there is a strong demand for the product.
The desire for chocolate may be defined as the occasions on which customers are obligated to offer some sweet stuff. Maslow’s hierarchy of needs also notes that people prioritize satisfying their psychological requirements before seeking safety, social connection, and personal fulfillment. Consumers of Hershey simply want the opportunities and the brand image it has implanted in their minds (n.d.).
Another psychological element that influences consumer behavior is health. Hershey should focus on this and develop products that are beneficial to health-conscious individuals. Another significant influencing factor for chocolates is perception. It’s the consumers’ perceptions that distinguish a firm from its rivals. Similarly, the consumer’s view of Hershey’s chocolates will affect his or her purchasing choice.
Since the firm has been operating for more than a century and has implemented numerous social initiatives as well as created some very delectable chocolates, it has earned a positive reputation among consumers. Obviously, when someone goes to buy a chocolate, he or she always chooses Hershey.
The next element that affects consumer buying behavior is learning. Learning here refers to prior usage of the goods by consumers. If a customer has previously used a product and liked it, he will most certainly go for another purchase whenever the need arises. Similarly, Hershey’s customers appreciate the company’s chocolates, which is good news for the firm.
The behavior of consumers plays a significant role in the success or failure of a business. Aside from product quality, brand image, company policies and procedures, and other aspects, consumer perceptions about the firm influence sales. Here, beliefs represent how customers regard the company’s products. Consumers’ opinions of Hershey chocolate are good; as a result, it aids in the sale of chocolates (n.d.). The attitude towards Hershey chocolate is positive and helps increase sales.
The purchasing behavior of Hershey chocolate consumers was examined in a study. This survey utilized a questionnaire that primarily focused on consumer buying habits. We inquired about the consumers’ perceptions of the Hershey chocolate, their experience with it, and their level of satisfaction with its goods.
We discovered that the company has made a favorable first impression on customers. Customers believe that Hershey’s chocolates are excellent, healthy, and provide a variety of selections. Candidates stated that their experience with the chocolates was fantastic, and they would purchase them again and again as they talked about their experience.
Among the many factors observed in the study that influenced customers’ purchasing decisions were the company’s strong product portfolio, brand image in the mind of the customer, and a wide range of tastes available. We discovered that consumers are happy with the brand after asking them about their post-purchase feelings. The questionnaire format and completed questionnaires are included at the conclusion of this paper.
In conclusion, we might state that Hershey has already achieved historic success in the chocolate industry. With the aid of high-quality chocolates and improved marketing methods, the company’s target market is children. Hershey continues to charm consumers with its delicious chocolates, and it will continue to do so in the future.
This is the name of the history section on The Hershey Company’s website, “From simple to hero.” It’s used to describe Milton S. Hershey and his company because he previously failed to start two other candy firms before discovering and becoming interested in chocolate. Fortunately, he didn’t give up after that; instead, Milton founded the Hershey Company in 1894 in what is now known as Hershey’s Pennsylvania (The Hershey Company, n.d.).
Hershey’s has expanded from a simple chocolate business to the No. 1 manufacturer of chocolate in the North American sector, with nearly 45% market share in 2017 (Statista, 2017). Chocolate is also consumed as a snack by many different customer types, and it may be given as gifts for Valentine’s Day, Christmas, anniversaries, and birthdays. The target market for chocolate under normal circumstances is children, but we can see from the study data that adults like to eat chocolate as well. Adults have the financial wherewithal to purchase chocolate. As a result targeting the adult market is simple money in the bank. “Seventy-five percent of all US adults consume chocolate or hard candy” (Experian Simmon, 2009).
Chocolate is a normal good, which implies that increasing consumer disposable income can lead to increased demand for chocolate. “Imagine economic conditions cause the incomes of many Americans to drop. Because chocolate bars are ordinary products, the demand curve would shift to the left as consumers purchase fewer chocolate bars at any price” (Econlowdown, n.d.). However it also means that substitutes’ prices can have an impact on demand.
Introduction. Hershey’s targets several market segments (Hershey, 2008). The firm sells chocolate items. In addition, the firm sells peanut butter products. The company meets the varied demands of various target markets. When Ferrero and Hershey’s chocolates were compared in a test where they were alternatives, most participants preferred the Hershey chocolate products (Pujol, 2011). Hershey’s marketing strategy guarantees that each market segment is met.
Hershey Company. Hershey’s packaging strategy has the company create a greater demand for its goods in various market segments (Hartline, 2011). Cacao is one of the primary ingredients. Chocolate liquor is another component. Chocolate liquor is also a third ingredient. The Hershey’s brand includes Hershey’s Kisses, Reese’s Whipps, and Reese’s Peanut Butter Cups (Hershey, 2008). Bliss chocolate is one of the firm’s newest items. It is anticipated to be a top seller (Dorfman, 2008).
The weight-loss industry comprises a wide range of companies that use a variety of techniques to help people reduce weight, including Weight Watchers. Other industries represented on the list include wellness and fitness, which includes weight management clinics. Furthermore, there is a Weight Watchers market segment. Patrons are conscious of their weight. They eat less calorie-dense foods. As a result, Hershey’s sells low-calorie chocolates to this market sector. For example, Hershey’s Reese’s Whipps chocolate has less fat content than normal (Hershey, 2008). Hershey’s clearly targets the Weight Watchers market segment.
Major Competitors. There are a few rivals to Hershey’s Chocolate. Mars is one of them. Mars sells the popular Snickers Charged, Dove Beautiful, and M & M Premiums among other things. Russell Stover is another adversary. Whitman’s Soho is produced by the firm (Hershey, 2008). One of Nestle’s competitors is Butterfinger chocolate (Hershey, 2008). Hershey’s segmentation reflects the importance of segmentation to its market dominance in chocolate and peanut butter (Daft, 2011). The business focuses its marketing efforts on each individual market category. Hershey promotes low-calorie goods to weight watchers members.
Hershey offers heart-shaped chocolates as tokens of love on Valentine’s Day. During Easter, Hershey releases egg-shaped Reese’s peanut butter products (Hershey, 2008). The demand for the company’s goods will automatically rise by satisfying the needs and wants of each market segment.
Hershey’s Market Segment Plans. The firm aims to continue satisfying the demands and desires of each market segment (Ferrell, 2010). The chocolates are designed to meet the specific requirements of the United States market. The firm creates new brand names for worldwide distribution. Hershey undoubtedly intends to continue satisfying the chocolate and peanut butter demands of its existing and future consumers.
In terms of geography, Hershey’s focuses on the United States market segment (Nutt, 2010). The market segment covers all existing and future consumers in the United States. In terms of previous sales performance, Hershey’s had dominated the US chocolate market (Hershey, 2008). The firm has expanded its operations to include the worldwide chocolate market. Chocolate is now available in a variety of countries. Hershey’s is clearly targeting.
In the United States market segment, as shown in Table 1, Hershey’s kisses is the company’s flag carrier (Hershey, 2008). Hershey’s Reese’s peanut butter brand comes next. The table above indicates that Hershey products made up 43 percent of the entire market in the United States. Mars’ goods, which include the M & M brand, accounted for a smaller proportion of the overall market at 25%. The Nestle brand captured just 8% of the overall United States market sector. The combination of the other competitor brands resulted in a 24% market share. Clearly, Hershey does an excellent job marketing its products as the top grosser in the US market sector (Weihrich, 2009).
Chocolate Brand Market Segment Sales Ranking (2007). One of Hershey’s market segments is the Kiss chocolate brand (Hershey, 2008). In terms of the Chocolate Brand market segment, statistics will show that Hershey isn’t number one in sales. The M & M chocolate placed first. Following close behind was Hershey’s kisses chocolate. Hershey’s Reese’s peanut butter took third place. Snickers chocolate from Mars ranked fourth. The Crunch variety occupied fifth position. Butterfingers from Nestle came last in the list. Without a doubt, M & M Chocolate is the most well-known chocolate brand in the world.
Market Segmentation. Hershey’s Distribution Center Market Segment In terms of table 3, Hershey enters the distribution center industry (Moyer, 2009). Supermarkets and convenience stores are the top two sellers of Hershey’s items (Hershey, 2008). The Wal-Mart store sales output is ranked third. Sales from pharmacies are ranked fourth. The sales output of Hershey’s goods in the fifth position is known as “warehouse club.”
Clearly, selling Hershey’s products in supermarkets and convenience stores will result in the highest number of product sales. The market group also includes enthusiasts. Advertisements encourage viewers to use kisses chocolates as a symbol of love (Hershey, 2008). By providing the lady with a kiss chocolate, the male lover can win her heart. Hershey’s famous tag line is “say it with a kiss.” The term “kiss” implies that the guy should give his love interest a kiss chocolate. Hershey clearly targets to the lover’s market segment (McDonald, 2012).
Hershey’s Reese brand, for example, caters to clients who want peanut products. The health nut and butter components are included in the Reese peanut butter. Customers like peanut butter. Other prospective consumers despise peanut ingredients. Reese caters to the peanut butter consumer market segment in a vivid manner.
Furthermore, the firm may cater to a distinct market sector, namely people who enjoy gambling. In a previous Hershey Kisses commercial, viewers were urged to look for specially marked chocolates in order to win a substantial prize. Customers who found the speci marked kisses were rewarded with $100,000. The same price also included an all-expendable-expectation trip to New York City. Vacation packages also included Caribbean Cruise itineraries.
A total of four minor prize-winners won a box of Hershey’s kisses. Clearly, the chocolate needs of the gambling market sector are fully satisfied by Hershey’s kisses (Burkard, 2011). Reese butter products from The Dark Knight were linked to this film. Customers who discovered specific marked Reese butter items were rewarded. A home theatre was among the rewards given away. Other Reese awards included a free motorcycle.
The Dark Knight memorabilia was given to the Reese product winners (Hershey, 2008). Evidently, the Reeseroducts are designed for The Dark Knight film market. Furthermore, the Hershey Company’s Reese peanut butter item is tailored to the Easter egg market (Mohr, 2010). The eggs-shaped Reese peanuts were developed in response to Easter being a popular holiday pastime. Children adore Reese’s items because they are shaped like eggs. There can be no doubt that Reese’s products meet the demands of the Easter egg market segment.
Additionally, the Hershey Company’s Reese butter products target the Valentine’s market. February is a month for love. The day for lovers is February 14. The company encourages couples to presents its sweets, particularly the Reese peanut butter varieties, to their significant others. The sweet taste of the Hershey items is enough to melt any unyielding heart (Hershey, 2008). Reese meets the demands of the Valentines market segment without a doubt.
Consumer Preference Market Segment. In table 4, Hershey’s satisfies the demands of the consumer market segment (Reid, 2009). 6% of consumers had a positive reaction to Hershey’s goods. 5% of customers liked M & M. Snickers generated a consumer preference index of 6%. 3.5 percent satisfaction among clients was recorded by Reese’s. 2% satisfaction in the customer base was achieved by Butterfinger. The consumer index for Butterfinger is 2 (Hershey, 2008). Clearly, Hershey’s Kisses is the most popular chocolate choice among consumers.
Hershey Brand Gender Market Segment. In table 5, Hershey’s aims at the gender market category. The firm serves both males and females. There is a distinction to be made between Hershey’s male and female consumers in terms of gender. Male respondents prefer kisses items, whereas 115 female customers choose Hershey kisses items (Hershey, 2008).
In terms of Hershey’s kisses, males are more likely to buy it than females. There is a difference in taste between male and female Reese’s peanut butter consumers. Male customers chose the peanut butter product over the 102 options available. Female consumers, on the other hand, picked from 98 different options. In comparison with female clients, more male clients prefer Reese peanut butter products.
Adult Market Segment. Hershey’s entered the adult market segment in terms of table 6. The following table shows that M & M chocolate is the most popular adult choice. Kisses from Hershey follows closely behind at 2nd place. The Snickers product is ranked third among adult chocolate brands. The Reese’s peanut butter product comes in at position 4th (Hershey, 2008). Certainly, M &M chocolate is the most well-known brand in the adult market sector. Adult Market Segment
In Table 7, Hershey’s has attempted to enter the age market. People in the 45-54 year old range have the most demand for Hershey’s kisses. Following close behind, people aged 55-64 years had the second highest demand for Hershey’s kisses. Customers aged 65 through 74 had the third greatest desire for chocolate kisses, while those aged 75 through 84 were 4th. 18-24 year olds have the fourth greatest demand for Hershey’s kisses (Hershey, 2008). nnCLients from the 35-44 years age group have a greater preference for kisses chocolate than clients from other groups (Hershey, 2008).
Clearly, the Kisses chocolate brand appeals to the 45-54 year old demographic. Hershey’s Reese product ventured into the age market segment in table 8. People aged 35-44 have the most desire for Hershey’s kisses, according to table 7. People aged 25-34 were next, placing 2nd.
The kisses chocolate, which is produced by Mars and contains no animal products, is the most popular candy in the United States. The Hershey kisses are one of the world’s best-selling chocolates. Undeniably, consumers aged 18 to 24 have a high demand for this candy. Consumers in the 45-54 year group have the fourth highest desire for Hershey kisses. Customers over age 55 have a strong preference for kisses chocolate (Hershey, 2008). Clients above 35 were clearly interested in Reese’s peanut butter goods.
The above analysis demonstrates Hershey’s dominance of the chocolate and peanut butter market segment (Hershey, 2008). The firm developed items that appealed to a variety of markets (Sharples, 2012). Both the Kisses chocolates and Reese peanut butter were appreciated by each market. The products offer enough calories for weight watchers. All members of the market segment’s sweet product requirements are addressed by the product.
The products appeal to a number of target demographics. Chocolate and peanut butter are liked by a wide range of people across the age spectrum. The demands of distinct market segments are met by Hershey’s (McLinden, 2011). Hershey’s clearly dominates the chocolate and peanut butter market sector, as can be seen from the statistics.
Conclusion. Hershey’s leading the chocolate and peanut butter business, as demonstrated by the preceding discussion. The market segments’ demand for the company’s goods will continue to rise as long as the market segments meet the company’s changing demands and wishes. As a result, Hershey is one of the most popular manufacturers in America, with gender, age, and other market segments. Clearly, convenience stores that sell Hershey’s products have created the greatest consumer needs for these items.
Reese fully satisfies the peanut butter customer market sector. The Reese’s products fulfill the needs of the Dark Knight film market segment, as demonstrated by their name. Without a doubt, Reese’s peanut butter is an important supplier to the neef and Valentines’ Day market segments. Hershey’s Kisses is without a doubt the most popular choice among consumers. The Hershey Company’s strategic marketing efforts are designed to meet the varied demands and desires of each market segment.