Chapter 18: Sales Promotion and Personal Selling

Companies can use sales promotions to attract new customers and help keep ones. Hershey’s realizes on sales promotions especially during holidays in which a lot of candy and chocolate is expected to be sold such as Halloween, Valentines Day and Easter to be the preferred choice over competitors such as Mars and Nestle. These deals are usually buy any two bags for $5 as shown in the picture below or 4 for $7.

They also take part in point of purchase display promotion to encourage the impulse buyer. Also they sometimes take part in sweepstakes such as the current S’mores fall tailgating contest, in which the ultimate prize is a new Chevy SUV. On their website they even have tab named promotions. With the aide of these promotions they hope that customers will choose them time and time again if they ever decide to purchase chocolate.

Due to the fact that there only a handful of stores named Hershey’s they don’t focus so much on personal selling as they do on promotions since most of their sales comes from connivance stores and pharmacy’s. However in the few stores that they do have such as the one in Times Square they are usually giving out samples of either brand new products or a customer favorite such as Kisses. By doing so they are interacting with the customer and drawing them into the store. They are a few sales associates who will gladly help you find that  special souvenir although most are not very aggressive due to the fact that most of the items will sell themselves. They are however knowledgeable in the different types of chocolate they carry.

Chapter 17- Advertising and Public Relations

Hershey's has been one of the top companies in the chocolate business having a diverse profile extending from Kits Kat's to Hershey's Kisses. Its current advertisement consist of a S'mores commercial using Hershey's Chocolate Bar, a pure Hershey's commercial with a mother and daughter and two commercial for their latest drop collection that promotes the Hershey's Bar now coming in bite size chocolate pieces.

Before 2008 the company was highly criticized for not investing enough on marketing causing its sales to decline behinds its main competition Mars who own Snickers and M&Ms therefore they began to implement a new strategy investing in its core brands such as Hershey's, Kiss and Resses. As a result they have seen a significant increase in their sales in those products. Since this was such a success they later expanded their campaign to include Kit Kat and Twizzlers spending over $426.4 million last year in adverting.

As a result the net income has increased by 11% overall. In 2010 they debuted the Pay Day and Hershey;'s Syrup ad's which have not had advertisements since 2001. For the current season they have focused their attention the S'mores with there slogan “ Making every occasion a S'more occasion.” This goes together with the tailgating theme due to football season. To engage the customers they are having a promotion in which they are giving away an SUV. Their other concentration is the newest line drops which has been a success mainly due to creative advertisement.  

Chapter 15- Retaling

Hershey has three specialty stores not including the one at the theme park in Hershey, Pa. The stores are in Chicago, IL , Times Square in NYC and at Niagara Falls, Ontario. In all of these stores you will find a wide variety of chocolates and souvenirs including clothing and toys. Each store has something unique to offer. The one in Times Square has an outdoor scrolling marquee sign which you can display your own message. Also you create your own  mix of candy with The Original Automatic and Gravitational Chocolate Machine featured inside the store. At the one at Niagara Falls, life-size Hershey's brand characters that roam throughout the store creating a fun and welcoming atmosphere. You can also take a picture with a Hershey's Kiss character with there background of Niagara Falls inside. An assortment of baked goods such as their famous fudge is offered at the fresh food counter at which you can also get a milkshake if you prefer. There they also offer a number of unique memorabilia such as copy's of Hershey's 1934 cookbook. The first of these store was in Chicago. At this location you can be a factory worker as you create your own mix of Hershey's products. A Hershey's Bake Shoppe is also featured inside were the Hershey-izer the singing baker brings you an assortment of baked goods. The two things that are most unique about this location is that you can celebrate an occasion there or schools can take field trips to the location.

While all the stores create its own sweet atmosphere tailored to meet their customers needs they all offer some of the same products such as tin cans and jars filled with its chocolates. They all offer a chocolate bar with customized  wrapper with your photo on it and message on it. There stores motto is " one-of-a-kind, interactive experience in sweetness." They also have three international stores.

Chapter 6 Consumer Decision Making

The Consumer Decision making process is what everyone uses when they purchase any product or service. It is important to know how this process works in order to stay in business.  Hershey chocolates rely on brand loyalty for its consumers to consume its products. This is how a costumer may go about purchasing a Hershey chocolate product.

Need Recognition

For  Hershey they try to ensure they are the first ones to cross a customer’s mind when they want a chocolate bar. They have external stimuli by being placed by the registers at most stores and their brightly colored packaging attracting the attention. Also through advertising they have tried to convince that by choosing Hershey chocolate they will have a wonderful experience.

Information search

They long display of impulse buys are filled with many sweet treats and they can easily see all their options in front of them. Hershey packaging states what type of chocolate they are offered whether its milk chocolate or special dark. The customer waiting inline can easily ask others on the line about the chocolate or simply ask their cashier what their experience has been if they are in doubt.

Evaluation of alternatives and purchase

Although there will be other options available to the customer such as Mars chocolate, the Hershey chocolate will stand out in its simple good quality chocolate. Their biggest threat will be the chocolate health bars which target the health conscious individual.  Therefore since it is reasonably priced the consumers will more than likely buy the product also it is widely available. Usually if a person picks up the chocolate bar they have already decided to buy it.

Post purchase behavior

Most of the time a person will buy the product again since they have been enjoyed the quality chocolate and has cost them very little. This is what has created the brand loyalty and is what the company relies on.

Hershey chocolates are inexpensive products that fulfill the craving for something sweet. There isn’t much though into the buying process considering it is not a product that will continue to offer benefits in the long run instead it is instant gratification.