henny - marketing mix strategies

8/6/2019 Henny - Marketing Mix Strategies

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Marketing Mix Strategies

1/PRODUCTS:

a/ Product levels:

1. Core benefit: Chocolates are convenience products, because everyone can eat chocolates

whenever they want them. Moreover, for those whose favorite food is chocolate, eating

chocolate will satisfy their needs.

2. Actual products:

y Brand name: Hershey is a well-known brand in the chocolate industry. This is partly due to

Hershey¶s philanthropy in helping homeless children and high quality products. Manycustomers choose Hershey as their favorite brand to some extent that they can help these

students.

y Quality:

o Many good quality recipes are created for customers. Besides, allergies are taken

seriously during the production process to ensure that consumers will not suffer

allergies.

o There is a consistency of quality in every product supplied.

y Packaging: All packages are simple, wrapped in many sizes and made easy for customers to

split. In each package, all useful information about the ingredients is provided so that

customers can control their nutritional intake as using.



y Design: The design is quite simple with the brand name stamped directly in each chocolate

bar.

y Features:

o There are many fat-free products for dietitians to freely eat Hershey¶s chocolates

without caring about the levels of cholesterol and fat, such as Hershey¶s dark

chocolate.

o There are many flavors for customer¶s choices (line extension), such as milk

chocolate, pure-dark chocolate, and chocolates with almonds.

3. Augmented: Hershey¶s products are distributed widely in many places to make it

convenient and available for consumers to buy.



b/ Product improvement:

Hershey¶s products will be free and just-in-time delivered if customers buy chocolates online

through Hershey¶s website (www.Hersheys.com.mx). Hershey treats any complaint of customers

as valuable contribution that aid in improving our products. Hershey will attract target customers

by introducing Hershey¶s bundle products on holidays, like Valentine day and Women¶s day.

Hershey Mexico not only manufacture, sell and distribute their own product, but also they will

import more chocolates from the parent company to vary the products and introduce additional

brands (Hershey¶s SKOR, Health and Symphony). By doing that, Hershey¶s chocolate bars can

appeal to everyone¶s taste and create more choices for consumers. This could lead to growing

sales.



2/Price

1. General pricing strategy:

Hershey will apply two general pricing strategies, Valued-based pricing and Competition-

based pricing together to bring the final reasonable and profitable price. First, we analyze our

competitors¶ prices. Hershey products will have the prices that lower than foreign chocolate

brands competitors but higher than other Mexican brands. After that, we will base on the value

that customers perceive our products to give the final number of the prices.

For example, a Guylian 200gr chocolate bar has a price of 30,5 MXN and a Vifranco 200gr

chocolate bar has a price of 14,5 MXN. Then Hershey¶s price will be lower than 30,5 MXN and

more than 14,5 MXN. After that, as our customer perceive our products are high quality, so we

will take a price of about 26 MXN.

2. Product Mix-Pricing strategy:

Product-line pricing: Hershey sells many lines of products such as HERSHEY'S milk chocolate

bar, HERSHEY'S EXTRA DARK or HEATH toffee bar. In each line, customers have threechoices of products: big size (500gr), normal size (200gr) and small size (100gr). This will give

customers more options to suit their needs. Furthermore, the price of bigger size will be cheaper

than small size based on average price on weight. For example, a 100gr chocolate bar costs 14,5

MXN, but 500gr one costs only 58 MXN.



Product bundle pricing: Hershey also offers bundle products at a reduced price, e.g. Family

Set, Couple Set, and Happy Birthday Set. These bundles will suit each circumstance for purpose

of selling in higher quantity. However, in holidays such as Valentine¶s Day or Women¶s Day, we

will offer bundles with a higher price because of special products (this will be explained more in

psychological section later).

3. Price-Adjustment Strategies:

Psychological pricing:

We price the products about 0,5-1,5 MXN less than normalcy. Particularly, a bundle of 115,5

MXN and a chocolate bar of 11,5 MXN will be priced at 114 MXN and 11 MXN.

In special holidays, we take the prices for special bundles higher. This will drive customers

perceiving products with better quality. Moreover, people tend to spend more in these special

days, so these are good opportunities to capture profit. For instance, a Happy Birthday set with 5

types of chocolate, if customers buy these 5 types individually, total of them will cost only 127,5

MXN. However, we change both the design of the packages and the shape of chocolates, and

then we charge a higher price of 162MXN



3/Place:

Hershey¶s chocolates are convenience products. Hence, to ensure the availability of

Hershey¶s, our products are delivered widely in many outlets. Hershey will focus on

distributing products to big supermarkets such as Wal-Mart, Soriana, Gigante, Commercial

Mexicana, Mega, Bodega Aurrera, and plazas such as Centro Santa Fe, Colonia del Valle,

Centro Comercial Perisur, Plaza Independencia, and Plaza del Sol.

The relationship with import companies puts Hershey at an advantage in

implementing intensive distribution. These wholesalers will deliver Hershey products to

many other resellers such as small shops, groceries, or even some street shop. Therefore,

Hershey will be able to save time and energy and spread its market widely. This creates the

opportunities for customers to catch a Hershey bar whenever and wherever they want.

However, Hershey have not built a good relationship with customers yet, thus our

plan is to create our own website (www.Hersheys.com) to get better communications with

consumers as well as other businesses that want to carry our products. Thereafter, consumers

are able to purchase or comment products online; businesses (local shops) can order products

online. Furthermore, company¶s sales persons will proactively contact all prospective

businesses in order to find more channel members to cooperate and technically stimulate

sales.



4/Promotion

1. Advertising:

Hershey Mexico will focus on informative advertising, such as making video for

broadcasting on the TV. Through that method, it can bring on Hershey¶s message, ³Hershey

chocolate - sweet of nature´, which means Hershey¶s chocolate is good for health as well as

environment.

2. Personal selling:

Territorial sales force will be established, starting in Mexico City for the purpose of

persuading, contacting effectively and proactively with some prospective businesses. For

example, cooperating with hotels there, then they will sell chocolates to couples whom

celebrating their wedding party there, so that chocolates become gifts for wedding¶s guests.

3. Public relations:

To make Hershey¶s products more publicized, Hershey organized an event in famous plaza,

which could attract customers attention. In addition, they would become the main sponsors

for some events, example: a music events in high school or university. With the aim to obtain

favorable relationship with publics, this event will show a full line of products and

simultaneously present the quality of Hershey¶s chocolate by a number of certificates gained

from experiences.

4. Direct marketing:

Online marketing is another tool to reach customers. Hershey Mexico already had their own

website www.Hersheys.com.mx for end-users to know more about Hershey¶s chocolate bars.

In their website, Hershey Mexico using the successful box office, an American fiction action

movie, the Transformer to promote their product, Pelon Pelo Rico, which provides a lot of

prize worth thousands peso.



Using Hershey Mexico¶s main website (www.Hersheys.com.mx) consumers can find links to

Hershey Mexico profile, history, products, the nutrition, a link to Hershey's promotions and

contact us link.



valuation / Action Plan

Department

responsibleTasks

Budgets

($USD)

Management

Get business licenses: to acquire 5 years chocolate

business license, SignU p seals business circles in the

police, Sign up tax codes with tax authorities, Register

import and export code at Department of Planning and

Investment and other requirements of the government.

3000

Sales force do customer satisfaction survey and set new

price1000

Sales force contact with supermarket and shops300

Contract with expedition company for importing, storing

and distributing products

9000

Marketing

Do Market Research competitors¶ prices and set our

products¶ prices750

Contract with billboards owners and posters producer 4000

Contract with TV channel for advertising5000

Contract with the design company to prepare

advertisement on TV, Billboards and posters

12000

Contract with newspaper and magazine to announce the

existence in Mexican market.1500

U pdating the content of the website, and maintenance of

the website300

Presentation at plazas about µChocolate and your health¶,

as part of company¶s promotion program1500

Main Sponsor for music event at school and university 4000

Human

Resources

Hiring and training: LongHoang security group,

employees and train them to suit company¶s work term.1000

Total $ 43.350



Control

To make sure that all process of marketing plan going well, there are some methods that help

to analyze current situation right away:

y Sales report (weekly)

y Performance of promotional activities report (monthly)

y Competitors¶ actions report (weekly)

y Observation and evaluation of our channel members¶ reports (monthly)

y Feedback from customers¶ survey (quarterly)

y Customer relationship report (monthly)

y Through evaluations and benchmarks above, we can see clearly every activity. If there is

any problem, it will be recorded and resolved immediately.

henny - marketing mix strategies

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