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HERSHEY’S TAKE 5 CANDY BAR RE-LAUNCH

MARKETING PLAN

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Situational Analysis

STRENGTHS The main strength of Hershey’s lies in its strong brand recognition. The brand name is well known and is considered a reliable brand to all chocolate lovers. The Hershey’s Company has been around since the dawn of the chocolate industry, and this kind of history proves that the brand is trusted among its customers. The success that Hershey’s has expressed over the years proves that they have the capital necessary to rebrand their Take 5 bar. This is a noticeable strength because we do not have to raise capital, as competitors may need to do. Hershey’s also has an incredibly loyal fan base. These chocolate lovers would love to try out another product from Hershey’s. The Take 5 candy bar’s main strength is that it combines salty and sweet in a candy bar. None of the competitors combine salty and sweet, so this should be a leg up on the competition. WEAKNESSES The main weakness of Hershey’s is their weak overseas market. This leaves an opportunity for competition to gain market share on the company and its brands. The Take 5 bar’s weaknesses are more extensive than that of the Hershey’s brand overall. The Take 5 candy bar is not well known among consumers, and the lack of marketing results in little to no reminder that the candy bar actually exists. The candy packaging does not differentiate itself among the many other bars on shelf, and the font used to portray the “Take 5” message implies an energy/protein focus. OPPORTUNITIES An opportunity for Hershey’s is to expand its overseas market, given their weak overseas market share. A few worldwide trends among consumers are the search for an eco-friendly option and for a healthier, dark chocolate choice. Both of these trends provide opportunities for the Hershey’s Company. When advertising the brand, its new sustainability focus, and/or its new line extension, there is also the opportunity to use a celebrity endorser. By hiring someone who is considered a credible source among the target market, not only will awareness of the brand increase but also sales. THREATS Competition, natural disasters, rising awareness in health issues, increasing ad costs, and imitators each pose a threat to the Hershey’s Company and its brands. Although Hershey’s owns a majority of the market share in the Candy, Mint, and Gum industry, Mars, a huge competitor, closely follows. Because of this direct competition, Hershey’s must stay aware of all strategic moves the Mars Company makes to avoid any loss of market share to the competitor. Also beyond Hershey’s control, natural disasters can affect the resources used to make Hershey’s products, including the Take 5 bar, and the prices associated with making them. Health concerns and diseases including peanut allergies and diabetes pose a threat to the number of customers and the amount of sales obtained. Imitators, increasing ad costs, and the clutter of advertisements are consistent threats in any market or industry, and are each something that requires the attention and awareness of the Hershey’s Company.

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Primary Market Research

In order to create a successful re-launch of Hershey’s Take 5 candy bar, it was imperative that we understand the current opinions of the product’s customers and what they are looking for. Therefore, we developed several methods to obtain primary research; an observational study, several focus groups, and a survey. These research methods forced us to see the candy bar through the consumers’ eyes and not only helped us pinpoint what Take 5’s strengths and weaknesses are, but also aided in determining the opportunities that Hershey’s has to grow awareness and sales of this product. During our observational study, we set up a booth in one of our college’s buildings. At our booth we laid out a variety of candy for students to take. For this experiment we used Reese’s, Kit Kats, and Take 5 bars. The goal of our study was to gather data on how the Take 5 bar performed against other popular Hershey’s candies in an effort to see consumers’ opinions about the Take 5. At the beginning of this study we recorded the number of each candy bar that we started with, then recounted what was left every 15 minutes. Our results are displayed in the graph below: From the results of our experiment it is clear that Hershey’s Take 5 bar is one of the more popular candy bars, if not the most popular choice from our selection. This study proves that a re-launch of the Take 5 bar would be beneficial to the Hershey’s Brand and instrumental in bringing awareness to this understated candy bar. Another way that we gained primary research was by setting up three focus groups. The 35 participants were student volunteers from our business college. The three focus groups consisted of 10, 11, and 14 participants for the first, second, and third focus groups respectively. Each group was approximately a half hour long and the same

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questions were asked in each session. Before starting all participants were given a five-question survey covering their general demographics (See appendix). Following the questionnaire, we asked participants questions about candy in general, the look and taste of the Take 5, the packaging of Take 5, etc. (See appendix). The focus groups were recorded and analyzed for information that could help remarket the candy bar based on customer demands. The following are the results that came from the three focus groups:

1. Packaging: There were two main trends among our focus groups about the packaging of the Take 5 bar. The first was that it reminded them of an energy/protein bar. The font used on the packaging and the way that the number 5 is printed going “uphill” seems to draw in someone who is looking for a way to reenergize rather than someone looking for a sweet and salty snack. The second trend was the idea that the color of the packaging seemed to be too similar to that of a Kit-Kat bar, and many people thought that it was one at first. These two ideas/trends proved to us that it was imperative that we change the overall look of the packaging to 1) differentiate it from other candy bars on the market and 2) draw the attention of the correct target market. During our focus groups, we showed a few different packaging options. While preparing for our focus groups, we were unaware of the “energy bar” impression that it gave people, and therefore left the font the same as the original in our new packaging options. We offered three different colors: the original red, a yellow, and a blue. We were very surprised to find that most people were drawn to the red over any of the other colors, but were looking for a way to use the red while also differentiating it from the several other red candies on shelf. With these observations, we have decided on the following packaging for the re-launch of Hershey’s Take 5 bar:

The packaging for our line extension, the dark chocolate Take 5 bar, will be as pictured below.

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2. The candy bar itself: When outside of it’s packaging, Hershey’s Take 5 bar does not look as neat as it’s other well-known bars. Many of our participants claimed that if they were given the candy bar without it’s packaging, they would assume it was homemade and others claimed that they would not consider it appetizing enough to try. When participants tried the candy bar, many shared their opinion that the five layers were not as generous as they had thought they would be; almost all participants stated that they would have liked there to be more caramel. With these observations, we have decided that the five ingredients will remain the same, but using more caramel will provide the flavor that is most popular to the target market more generously. We will also change the overall look of the candy bar itself to make it look more appetizing outside of it’s packaging and to match it with the reputation of the other Hershey’s candy bars: clean, neat, and appetizing.

3. Advertising: The general consensus among our focus groups was that it is imperative to advertise the brand in order to raise awareness. While the agreement on this idea was unanimous, many also spoke of the importance to use advertisements as a reminder that the brand exists rather than an annoying, overly advertised product that will create a poor reputation. Our participants suggested that using online social media and TV broadcasting would be the best options to reach a target market, and that any commercial advertisements should be played with ample time in between them or should be a series of different stories that can create an image of the brand while being a simple reminder and avoiding over exposure. These observations and opinions were used in our communications decisions (please see page x).

Our final primary research method was a survey (found in appendix). We used the information gained in our observation study and focus groups to create questions that would provide us with answers needed to understand how the target market views the current Take 5 bar, what they would like to see in the event of a change, where they are most likely to purchase their candy bars, how we should advertise the product, and age groups/demographics that we should be targeting. Our surveys were given online to family and friends via social media and were handed out during class in our University’s School of Business. Our survey reached ages ranging from 15– 72 and its results were used to make distribution and marketing decisions. In our survey, we learned that majorities of people prefer chocolate to alternatives, such as sweets and gummies. We found that most purchase their candy bars at super markets, and that the most popular ingredients in a candy bar are the simple chocolate and caramel pair. The survey literally had a 50/50 split between those who had eaten a Take 5 bar before and those who had not, and out of those who had eaten the candy before, most would consider purchasing again.

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Target Market, Positioning, Strategy, and Objectives

To successfully market any product, Hershey’s must identify the correct target market and then identify the correct marketing segment. To successfully re-brand Hershey’s Take 5, Hershey’s needs to target consumers from the age of 18-30 (see appendix), which can be seen through the extensive marketing research that has been conducted from our chapter. After analyzing the data, it was determined that college students and young professionals are two of the largest segmentations for the Take 5 bar. College students and young professionals are always on the go, quickly scavenging vendors looking for that sweet, salty and convenient snack to ease their day. Instead of buying chocolate and pretzels separately, they have the option to buy them together, which will satisfy their need for a sweet treat with the right amount of pretzel. Also, college students are always stressed from homework and exams, while professionals are stressed from meetings and large projects. They are looking for that one stress reliever food and more times than not, it is going to be a piece of candy, something salty, or both. Positioning Statement: Hershey’s Take 5 bar is a convenient candy that offers five ingredients in one bar. The mix of chocolate, pretzel, caramel, peanuts, and peanut butter provides a flavor that is a unique snack that satisfies your ravenous craving of the perfect candy bar. Your taste buds will thank you. To have a competitive edge over Hershey’s competitor, Mars, Hershey’s Take 5 bar needs to compete on quality and price. The quality (taste) of the product must be pristine, for having too much may turn consumers away and having too little will leave consumers unsatisfied from their sweet and salty craving. While sodium may be an issue, having too much of other products may give consumers a wrong impression of the bar. Too much peanut butter and peanuts may leave consumers thinking of Reese's and too much caramel may leave consumers thinking of Milky ways. While quality is an important competitive edge, Hershey’s needs to focus on their price. Our suggested retail for the Take 5 bar is $1.19, which falls below the competition, Snickers, by six cents. Consumers are looking for a lower price and getting five ingredients allows them to see the bang for the buck. Also in order for the Take 5 to receive more attention, it must be featured in more locations. Convenient stores and supermarkets are likely to have Take 5, along with most other candy and chocolate bars. The most popular and successful treats can be found in vending machines, snack stands, sports stadiums, and other locations. The problem is, Take 5 isn’t featured in enough of these places for the consumer to feel like it is a superior product. In theory, it is, because Take 5 can offer a combination of ingredients that no other candy bar can offer. So in order for Take 5 to become a premier candy bar, it must be featured like one. Through our observational study, we

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found that compared to Kit-Kats and Reeses cups, Take 5’s were taken by students at a quicker rate. Kit-Kats and Reese’s cups can almost always be found in all the aforementioned places. Who’s to say Take 5 shouldn’t be there either?

Marketing Tactics

Our plan to re-launch the Take 5 Hershey’s bar will rely heavily on the way we convey our message. Our communications plan will address how and where we will advertise. We believe utilizing social media will attract people who haven’t heard of or tried the candy bar before. Social media is a quick way of spreading information and reaches a wide variety of people. A lot of social media is used by the younger generations so advertising on these types of sites will expose younger people to the product. We will create a Twitter Account and pay for some tweets to be “promoted” which means it will show up on people’s accounts even if they don’t follow them. This will spread the word and will catch readers’ attention. Instagram also has a new feature that allows advertisements to be shown on people’s feed. We will use websites such as YouTube, Pandora, and ITunes Radio to incorporate radio and video advertisements that will reach our niche market before they view a video or in between listening to a song. Another way we will communicate our message is through Billboards, this will draw attention to a mass market as they are driving by and urge them to buy a Take 5. We also need to improve our advertising by re-launching new commercials. Our idea is “Take a Break” scenarios, a series of commercials displaying humorous situations where the person is in a hectic situation and needs to take a 5-minute break. Take 5 has not been exposed to successful aired commercials in years and this will be a great way to break back into the competition. We will create and a series of five different commercials throughout the year. A final way to communicate our message will be to create incentives for consumers to want to either try a Take 5 bar or to buy one again. Our plan for this is to print coupons for a Take 5 inside of Hershey’s other popular candy bar wrappers such as Reese's, Kit Kat’s, and classic Hershey’s bars. Our distribution plan will involve the demographics in which we plan to target and the locations where we plan to distribute the product. We plan to target lower middle class consumers between the ages of 18-30. We will focus on attracting the cubicle worker, the sports fan, the Hershey’s fanatic, the typical candy lover, and college students. To best reach this target markets we plan on selling the product is: supermarkets, dollar stores, vending machines, movie theaters, gas stations, frozen yogurt and ice cream stores, convenience stores, airports, sports stadiums, drug stores, and chain retailers such as K-Mart, Wal-Mart, and Target.

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We will create displays that can be showcased in the front or center of store or featured in display buckets that will increase initiative of consumers. Product placement is key when looking at location in the store; we want to focus on breaking away from similarly colored packaging like other Hershey’s products such as Kit-Kat. Also, through our research we found that Take 5 is overlooked in stores because it is placed low on shelves and does not stand out. We will change this by placing Take 5 higher on market shelves to be seen easier by the target demographic. Through research we found many students thought the exterior of a Take 5 looked similar to an energy bar, this is why we are planning on making the following changes. We will still advertise the 5 main ingredients and make the picture displaying them more vivid. The exterior of our product packaging will change slightly to be a base color of red with accents of golden yellow. We will have shadowing to emphasize the name and include a swirl design in the background to make it stand out. We will use a simple but alluring font. Overall, we want our packaging to be simple, honest, and original. We also plan to change the interior of the product by making the actual bar appear more appealing. We will make take the bar and break it up into smaller bite-size pieces rather than 2 large pieces. To go along with this new design we will introduce a new slogan, “Chose to share or be unfair”. This will promote the idea that it is a breakable candy bar that can be easily shared and eaten. Our Suggested Retail Prices will be as follows: The Hershey’s Company will utilize the Pulsing Advertising Model, in which there will be a low level of advertising throughout the year but an increase in advertising during peak selling periods such as holidays and specifically during the winter months. Our timeline of events will be as follows:

Standard Size $1.19

King Size $1.87

Snack Size (Pack of 15) $8.95

Dark Chocolate Extension $1.19

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Measurement and Evaluations

In order to properly measure the success of our new packaging, advertising, and distribution decisions, we will use several metrics:

1. Organic Search: Organic search represents the amount of times Take 5 will show up in a search online done through a popular engine such as Google. The more times that our product shows up through related words represents how many times our product is talked about on the world wide web. This is advertising that we cannot control and because of this, it is a great way to analyze how much our product is reaching the world.

2. Traffic To Lead Ratio: Traffic to lead ratio represents how we can figure out where our customers are gaining awareness of the brand name Take 5. Whether it is through TV, in store promotions, or just through online twitter posts, there is always a root that can be traced back to where a customer heard about Take 5. By learning which leads work and which don’t, we can target the more effective ones and increase brand awareness. We can also trace progress and figure out what is working in the new strategy.

3. Customer Satisfaction: Customer satisfaction is how the consumer feels about Take 5 and any changes we make to the product. By enacting changes to packing, ingredients, etc. we risk consumers becoming unsatisfied with the product. By analyzing how consumers feel, we can figure out first hand what our consumers like and don’t like and from there give the customer what they truly want, thus increasing sales. Analyzing customer satisfaction also allows us to discover what worked with our new strategy.

4. Compare to Competition: By comparing to competition we can discover how much our changes have affected sales. If we look at Take 5’s market share now against other Hershey’s bars, and all other candy bars, this will allow us to understand how much of the market Take 5 truly has. Then, after our changes our implemented, we can look at market share once again and see if Take 5 is truly gaining any share. This allows us to understand what has been working and how we can beat the competition and bring Take 5 to the top.

5. Product Margin: the amount of the money a company actually receives after paying all costs. In order to stay successful as a company, businesses need to keep a high product margin. This will continue success and profit in order to expand as a whole company, which usually is an end goal.

6. Brand Awareness: how many people are aware of our product? This measurement can be used to compare the awareness of Take 5 before our re-launch with its general awareness afterwards. The objective is to make sure that consumers recognize the availability of the Take 5 bar. This is key when trying to

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promote and product and increase sales. High brand awareness will make the product more successful resulting in higher profits.

7. Promotional success: With this measurement, we will compare sales before a promotion with that after the promotion. This will allow us to determine if first-time purchasers that tried Take 5 during the promotion became repeat buyers afterwards.

8. We will measure our flexibility by the number of SKU’s we offer. The more sizes of the Take 5 we can offer, the broader range of consumer we can appeal to. Customer appeal will be dependent on how they are feeling, the occasion for what they are buying the candy for, etc. If we can adapt to these entire consumer needs then we will dominate the market in each aspect by having the Take 5 bars being a versatile candy.

9. We will measure our performance by the amount of sales revenue we accrue. The more profitable we are will conclude how well we have performed. We will also determine how well we perform by the number of shipments we deliver to customers on time. We want shipments delivered promptly to keep customer’s satisfaction high.

10. Promotions will be determined on how well we do in the sales of the product. The more we sell the larger discount we can give. We will also gauge promotions by how we can package the product. This will include units such as Fun size, Minis, Big Take 5’s, etc.

11. The amount of revenue we receive should exceed the amount of capital it takes to produce the product. If we achieve this goal then we will have a successful product. We want to minimize costs and increase our revenue stream. We will minimize costs by finding alternative ways of producing Take 5 bars. This includes making the candy, packaging, delivery, etc.

12. Social Media Reach: Increasing need for convenience relies on how easy it is for a consumer to purchase the Take 5 bar itself. When the product is easily accessible consumers become more satisfied. This will tend to increase the demand of the product because it is always readily available for them. Following this, the company’s profit will increase leading to more money and a bigger product margin.

13. Distribution is the way a product is transported and given out. It must be ensured that the Take 5 bar is correctly distributed out to all participating stores in order to be successful. Keeping stock is essential for keeping sales high. Especially when demand is high.

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Budget

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Appendix

Focus Group Information The outline of the how each focus group was ran is as follows: First, we obtained some general information about participants in a hand out that asked:

1. What is your age? 2. What is your gender? 3. What is your hometown/state? 4. Do you live on or off of campus? 5. Food allergies:

We then started the focus group by stating the following script: “Thank you for agreeing to be part of our focus group. We appreciate your willingness to participate. “We are conducting this focus group to obtain information and opinions about the Hershey’s Take 5© candy bar. Our American Marketing Association Chapter has been given the opportunity to compete with other chapters throughout the United States. We have been asked to conduct primary research, hence the completion of this focus group. “Here are some of the ground rules:

1. We want you to do the talking a. We would like everyone to participate b. We will go around the table and have each of you answer the questions

asked 2. There are no right or wrong answers

a. Speak up if you agree or disagree with an idea 3. We will be recording this group

a. Speak loudly b. We want to capture all ideas and opinions c. You will remain anonymous

“We will now start the open ended questions:

1. What comes to mind when you think of the Hershey’s brand 2. What type of candy do you usually purchase? 3. Where do you usually purchase candy (i.e. supermarket, drugstore, dollar store)? 4. Where do you usually eat candy (i.e. home, work, school, in travel, outdoors,

etc)? 5. When are you most inclined to purchase/eat a candy bar? 6. What type of promotions entice you to go purchase a candy bar (i.e. mailed

coupons, in store promotions, sale prices, etc.)?

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7. What type of communication do you feel is best to market a candy bar (i.e. internet, email, social media, print, TV, etc.)?

8. Do you believe that a high amount of promotion will always result in higher sales?

9. Have you ever heard of Hershey’s Take 5 bar? 10. What age group do you think Take 5 targets or should target? 11. What comes to mind when you think of Take 5? 12. Have you ever had a Take 5? 13. If you have had a Take 5 bar before, how were you introduced to the candy? 14. Do you know why it’s called a Take 5 bar? 15. What was your first impression of the candy bar packaging? 16. Do you think it is wise of Take 5 to refrain from calling out that it is a Hershey’s

product on its packaging? Or do you think that it would be beneficial to have the Hershey’s name on packaging?

[At this point, we showed participants a variety of different packaging options to obtain information and opinions on which color would be best. We asked participants which options they liked best and why. The options were as follows:]

17. What was your first impression of the way the candy bar looks? 18. What do you like about the taste of the candy bar? 19. What do you dislike about the taste of the candy bar? 20. Was there something about the taste that stood out compared to other candy

bars? 21. Is there anything else that you have to say about the Take 5 candy bar that you

feel would be beneficial to our study?” Survey Information Questions asked:

1. What is your age? 2. What is your gender?

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3. What is your favorite color? 4. Do you prefer chocolate candies to other kinds (i.e. sweets, gummies, etc.)?

a. Yes b. No

5. Where do you purchase your candy? Choose all that apply. a. Drug Stores b. Super Markets c. Convenience Stores d. Dollar Stores e. Other:

6. What are your favorite ingredients in a candy bar? Choose all that apply. a. Chocolate b. Caramel c. Peanuts d. Peanut Butter e. Pretzel f. Other:

7. Have you ever had a Take 5 bar? a. Yes b. No

8. If you have had a Take 5 bar before, would you make a second purchase? a. Yes b. No c. Never had one before

9. Where would you most likely eat a candy bar? Choose all that apply. a. Home b. Work c. Travel d. Other:

10. Why do you eat candy? Choose all that apply. a. Taste b. Craving c. Mood d. Other:

The results of the survey are as follows:

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References

http://en.wikipedia.org/wiki/Organic_search http://www.contractortalk.com/f12/website-traffic-leads-ratio-79885/ http://www.surepayroll.com/articles/small-business/how-to-measure-success-of-small-business.asp http://www.surepayroll.com/articles/small-business/how-to-measure-success-of-small-business.asp http://www.entrepreneur.com/article/83108 http://www.mediapost.com/publications/article/192213/costs-for-tv-spots-rocket-7.html http://domainshane.com/complete-list-of-30-second-ad-cost-for-all-primetime-tv-shows-a-200000-domain-looks-like-a-bargain/ https://owl.english.purdue.edu/owl/resource/559/01/