Transcript HERSHEY*S New Product Proposal

HERSHE
Y’S
New Product Proposal
Rebecca Buddingh, Robyn Wolfish, Stephanie Carpenter, Stanley Ho, Winnie Xu
POSITIONING STATEMENT
Hershey’s is the only chocolate candy brand in the United
States that offers low price, convenient, multipurpose
products uniquely associated with feelings of nostalgia
and the classic American dream.
BRAND MANTRA
Hershey’s
Emotional
Modifier
Descriptive
Modifier
Brand
Function
Cheerful
American
Classic
Chocolate
Product
MENTAL MAPS
Positive Associations
Negative Associations
PERCEPTUAL MAP
Convenience versus Quality
Note: The ratings for Hershey’s and the competing brands
are based strictly on quantitative survey findings
Quality
Cheerfulness
CONSUMER PROFILE
The typical Hershey’s consumer
is:
- Young and/or
- Youthful
- Loves chocolate
- American
- Family-oriented
- Happy
- Fun
- Middle Class
- Conservative
- Frugal
POINTS OF PARITY
-----
Used for snacking or baking
-- Variety of types
Sweet and indulgent
-- Enjoyed by people of all ages
Consistent quality
Associated with holidays (ie: Halloween, Valentine’s Day)
POINTS OF DIFFERENCE
-----
“American” image
-- Associated with S’mores
Nostalgic, heritage brand
-- Identifiable by Hershey Kisses
Low price enables daily consumption
-- Hershey, PA
Sold in different types of retailers
-- Entertainment & resorts
CBBE MODEL
Strengths:
Weaknesses:
Brand Salience:
Consumer Judgments:
Hershey’s is extremely well-known in
the chocolate category and the favorite
chocolate brand for about 1/5 of
consumers. Additionally, Hershey’s has
a 75% likelihood of repeat purchase
among respondents.
Brand Performance:
Consumers indicate that they
purchase Hershey’s chocolate
because of its low price, convenience,
easiness of purchase (available in
grocery stores, convenience stores,
superstores, etc.) and large variety of
products.
Brand Imagery:
Hershey’s has a wide variety of usage situations
(S’mores, cooking, snacking), associations with
holidays and an exceptionally high sense of nostalgia
and history.
Though consumers trust Hershey’s
as a company, they question the
quality of the products. Hershey’s is
not usually preferred when
premium chocolate brands are
available, but considered “a quick fix
for a chocolate craving,” as one
respondent said.
Consumer Feelings:
Hershey’s fails to evoke strong
feelings among consumers.
Levels of happiness and
satisfaction are raised slightly
after consuming Hershey’s
products, but does not compare
to competitors in other feeling
categories.
Consumer Brand Resonance:
Though Hershey’s consumers exhibit some
behavior loyalty, they do not actively engage with
the brand or recommend it to others.
CONCEPT # 1
Bisquick Pancake Mix with Hershey’s Chocolate Chips
“Love chocolate chip pancakes?
Now you can make your
breakfast experience that much
easier with your favorite pancake
mix and Hershey’s chocolate
chips in one convenient box.”
CONCEPTSTATEMENT
- Traditional Bisquick box and product
Description:
A new Bisquick
product with Hershey’s
chocolate chips for
chocolate lovers
everywhere.
-Will include 6 oz bag of Hershey’s semisweet chocolate
chips for consumer to add if they choose
Suggested Price:
-Bisquick box will include Hershey’s logo
$ 5.00
- Will be sold next to traditional Bisquick in the baking
aisle at grocery stores
BRANDING STRATEGY
Branding Strategy: Modified Ingredient Branding
Extension Strategies: Product that contains the brand’s distinctive
ingredient; Product that capitalizes on the firm’s perceived expertise
Extension Classification: Category Extension
PRODUCT OPPORTUNITY GAP
SOCIAL
- Shoppers want to spend minimal
time at grocery store
- Increase of in-home breakfast
preparation
- Increase in single, working parents
results in little time to make
breakfast
ECONOMIC
- Shoppers looking for “bundled”
deals in current economy
- Discretionary income available for
middle and upper-middle class to
afford the luxury of convenience
easy-to-make
products
Quick and
pancakes that simplify the
grocery shopping
experience and capitalize
on an existing usage trend
TECHNOLOGY
- Increase in manufacturing
partnerships between corporations
with different expertise, especially
within the baking category
CONSUMER INSIGHT
Reality
Consumers in focus groups were
surprised Hershey’s hadn’t already
created this relationship. One
respondent said, “I wouldn’t be
surprised if Hershey’s actually did this.
I don’t know why they haven’t
already.” Thus, the product seems
realistic for the target market.
Relevant
This extension capitalizes on an
existing trend – using chocolate chips
in pancakes to add flavor and unique
taste.
Resonate
Because Hershey’s would be the first
chocolate brand to partner with a
pancake mix, it would provide
consumers with an incentive to use
Hershey’s chocolate chips over other
brands. Therefore, even if consumers
didn’t purchase the Bisquick/Hershey’s
mix, they would begin to associate the
two brands with each other,
recognizing the shared equity.
Reaction
Survey respondents and focus group
participants liked this product (4.13
ratings on a scale of 5) because of its
convenience and use to make large
quantities.
Points of Parity
- Baking item
- Easy-to-make pancakes
- Breakfast
- Quick, Instant
Points of Difference
- Pre-packaged chocolate
chip pancakes
- First partnership of its
kind
3 FACTOR MODEL
Salience
Focus group respondents were aware of the transfer of the following associations to the new product:
Semi-sweet chocolate, family-oriented, traditional, cooking/baking usage, convenience, easy-to-use
Favorability
Survey respondents ranked product a 4.35 (on a scale of 1 to 5) as a product they would trust from the
Hershey’s brand. In addition, the product capitalizes on the perceived expertise, quality, reliability and
nostalgia of Hershey’s.
Uniqueness
First chocolate chip/pancake mix combination on the market; New usage situation for Hershey’s
chocolate - breakfast
4 FACTOR MODEL
Compelling
Entrance in breakfast category allows new usage situations; Reinforces the use of Hershey’s chocolate as an ingredient;
Survey respondents gave the product a 4.29 “tasty” rating (on a scale of 1 to 5) because of their previous experiences or
associations with Hershey’s chocolate; Reinforces nostalgic quality of Hershey’s chocolate as focus group participants
recounted on childhood memories when they saw the product
Relevant
Hershey’s chocolate has greater purchase consideration as 72% of survey respondents would definitely or probably buy
the product; Strengthens consumer judgment of Hershey’s market leadership due to omnipresence in grocery stores
Consistent
Survey respondents ranked product a 4 (on a scale of 1 to 5) for how well it “fit” with the Hershey’s brand; Can be
purchased in grocery stores like other Hershey’s products; Creates additional usage occasions for Hershey's chocolate;
Reinforces core brand association of classic and family products
Strong
Moderate: Gives consumers a reason to use Hershey’s chocolate chips when making pancakes, but may not have a
strong enough impact to change Hershey’s brand perceptions because the product is in a new category.
VALUEOPPORTUNITY CHART
Low
EMOTION
Adventure
Medium
High
Low
IMPACT
Independence
Security
CORE TECHNOLOGY
AESTHETICS
Comfort
QUALITY
Craftsmanship
Durability
OVERALL
Profit
Safety
Brand
Ease of Use
Extension
Visual
Auditory
Tactile
Olfactory
Taste
IDENTITY
Reliable
Enabling
Power
ERGONOMICS
Social
Environmental
Sensuality
Confidence
Medium
Point in time
Sense of place
Personality
Focus group participants said:
“It is instant and quick. Easy to make in bulk.”
“I love chocolate chip pancakes.”
“Never been done, smart!”
High
PROS AND CONS
Pros
- 61% of respondents said a partnership
between Hershey’s and Bisquick is a “great
idea”
- All respondents preferred Bisquick to
other instant pancake mix brands
- Respondents felt the product was instant,
quick and made it easy to produce large
quantities
Cons
- Respondents said product was slightly
unoriginal; feel similar products already exist
- Consumers can purchase their own chocolate
chips, and may not be motivated to purchase
the product unless the price was low or a better
value than purchasing the two ingredients
separately
- Respondents were disillusioned by high
caloric value
RECOMMENDATIONS
- Market product as something that is unique because it simplifies the shopping process
for chocolate chip pancakes
- Remain silent about health risk, high caloric value. The product is not intended to be
healthy and should be advertised as a special, nostalgic treat – much like Hershey’s
chocolate products
CONCEPT # 2
Hershey’s Cocoa-To-Go
“A portable alternative to the
bulky hot chocolate packages
offered by competitors such as
Swiss Miss and Nestlé. No need to
hassle with the big container of
chocolate powder or syrup. And
with dual uses, Hershey’s CocoaTo-Go pleases fans of hot
chocolate and chocolate milk.”
CONCEPTSTATEMENT
Description:
High quality chocolate
powder for quick and
easy hot cocoa or
chocolate milk. Just
add water or milk and
you’re good-to-go!
- 1.5 oz of Hershey’s unsweetened chocolate cocoa and
sugar mix, in a slender tube
- Each box of Cocoa-To-Go will contain 10 servings
-Portability will allow consumers to bring the product with
them to school, work, restaurants
Suggested Price:
$ 3.00
- Will be sold in grocery stores in the coffee/tea aisle and
in an end display near the milk
BRANDING STRATEGY
Branding Strategy: Modification of Existing Brand
Extension Strategies: Same product in a different form; Product that contains
the brand’s distinctive ingredient; Product that capitalizes on the firms perceived
expertise
Extension Classification: Line Extension
PRODUCT OPPORTUNITY GAP
SOCIAL
ECONOMIC
- Trend of on-the-go products
- Decrease in amount of leisure time
to enjoy hot or cold drinks at home
- Capitalizes on success of other
packaged powder drinks (ie: Crystal
Light, Nescafé, Tasters Choice Instant
Coffee)
- Trend of 2-in-1 products
- Increase in discretionary income
to purchase higher-end drink mixes
(ie: Starbucks VIA)
- Low material costs, as the
product’s main ingredient is already
offered by the parent brand
Multi-use chocolate
powder in a portable,
slender package that can
be used to make hot cocoa
or chocolate milk
TECHNOLOGY
- Increase in manufacturing
abilities to produce slender, sleek
food packaging
CONSUMER INSIGHT
Reality
The majority of focus group respondents
said they could see this being something
Hershey’s would market. According to one
participant, “People already use Hershey’s
baking powder to make hot chocolate, why
not make it more convenient?” Most
participants understood why Hershey’s
would want to pursue a 2-in-1 product, but
that did not necessarily make them want to
purchase the product.
Relevant
Respondents said they enjoy hot cocoa, but
do not see a need for the slender packaging.
“I don’t think the exiting Swiss Miss
packaging is bulky or tastes any worse than
Hershey’s,” one person said.
Resonate
Because there are already many brands
using similar packaging, the upgrade for
Hershey’s would not resonate with
consumers, as they would merely consider
this endeavor as a “copy” of what other
brands are doing. Thus, it would not help the
Hershey’s brand as a whole.
Reaction
Consumers generally responded that they
liked the portability of the product, but were
not motivated enough to purchase the
product. Only 20% of consumers said they
would definitely purchase Cocoa-To-Go.
Points of Parity
- Cocoa Mix
- Hot Drinks
- Chocolate Milk Mix
- Can be combined with
milk or water
Points of Difference
- Can be used on-the-go
- Stick-shaped package
- Pre-portioned
3 FACTOR MODEL
Salience
Focus group respondents were aware of the transfer of the following associations to the new product:
Childhood, easy-to-use, convenient and traditional. Respondents were aware that Hershey’s products can
currently be used to make hot chocolate or chocolate milk.
Favorability
Survey respondents ranked product a 4.16 (on a scale of 1 to 5) as a product they would trust from the Hershey’s
brand. In addition, Cocoa-To-Go capitalizes on the perceived expertise, multiple uses and good taste of
Hershey’s products.
Uniqueness
Innovative, sleek packaging; Intended for single use with pre-portioned; Appeals to moms, college students,
children and others.; Can be used for hot chocolate and chocolate milk
4 FACTOR MODEL
Compelling
Portability allows for new usage situations; Allows Hershey’s to be innovative with the packaging of its products; Reinforces
cross-generational appeal of Hershey’s; Supports Hershey’s brand association as tasty, as survey respondents rated product a
4.16 (on a scale of 1 to 5) as something that seemed like it would taste good.
Relevant
Survey respondents said the product would not change their feelings toward the Hershey’s brand, giving it a neutral rating of
3.04 (on a scale of 1 to 5). The product has low purchase consideration as only 20% of survey respondents would definitely
purchase it. However, the product strengthens the reliability of Hershey’s, as it was given an average rating of 4.20 (on a scale of
1 to 5) by survey respondents.
Consistent
Survey respondents ranked product a 3.88 (on a scale of 1 to 5) for how well it “fit” with the Hershey’s brand. The use of cocoa
powder to make hot chocolate and chocolate milk is already a function of Hershey’s, but the product capitalizes on the option to
make either drink from one tube.
Strong
Moderate: The product would strengthen the consideration of Hershey’s for hot chocolate and chocolate milk, but would not
necessarily change the way consumers feel about the Hershey’s brand.
VALUEOPPORTUNITY CHART
Low
EMOTION
Adventure
Medium
High
Low
IMPACT
Independence
Security
CORE TECHNOLOGY
AESTHETICS
Comfort
QUALITY
Craftsmanship
Durability
OVERALL
Profit
Safety
Brand
Ease of Use
Extension
Visual
Auditory
Tactile
Olfactory
IDENTITY
Reliable
Enabling
Power
ERGONOMICS
Social
Environmental
Sensuality
Confidence
Medium
Focus group participants said:
“Portable, fast, and easy”
Taste
“Inventive”
Point in time
“I love hot cocoa and things that are portable”
Sense of place
Personality
High
PROS AND CONS
Pros
- Respondents said the product is
convenient, has likeable ingredients and
would be effortless to carry
- This product ranked higher than the other
new Hershey’s products for being the
easiest to use
- It has different packaging and a unique
look in comparison to other hot chocolate
and chocolate milk products
Cons
- Many competitors
- Some respondents felt that existing hot chocolate
packets are easy enough to transport so there is no
need for new packaging
- Concern that the price would be too high
- Finding hot water or milk on-the-go is not always
a simple task
- The product may be too similar to regular hot
chocolate; there is not a big enough
differentiation
RECOMMENDATIONS
- Develop another point of difference between Hershey’s Cocoa-To-Go and competitors
- Drop the dual use (hot chocolate, chocolate milk) and focus solely on a hot cocoa
product or a chocolate milk product
- Stress the low price point that is similar to competitors when marketing the product
CONCEPT # 3
Betty Crocker Supreme Bars – S’mores
“Recreate the S’mores taste you
love without the campfire. Betty
Crocker Supreme Bars—S’mores,
combine Hershey’s chocolate
with miniature marshmallows
and graham cracker crumbs for
an easy-to-make dessert, perfect
for any time of the year!”
CONCEPTSTATEMENT
Description:
Betty Crocker’s newest
addition to the Supreme
Bars line. An easy-to-make
dessert creation with
Hershey’s rich milk
chocolate, graham crackers
and marshmallows.
- Packaged in Betty Crocker Supreme Bars box
- Box comes with:
- 1 package of graham cracker dough mix
- 5 Hershey's Milk Chocolate bars
- 1 package of miniature marshmallows
- 1 packet of squeezable chocolate for decorative finish
- Additional ingredients needed:
- Water, 1 egg, vegetable oil
- Sold in baking aisle next to cookie, cake and bar mixes
Suggested Price:
$ 3.00
BRANDING STRATEGY
Branding Strategy: Ingredient Sub-Brand
Extension Strategies: Product that contains the brand’s distinctive
ingredient; Product that capitalizes on the firm’s perceived expertise
Extension Classification: Line Extension
PRODUCT OPPORTUNITY GAP
SOCIAL
- Trend of baking desserts from
boxed mixes (ie: Betty Crocker,
Duncan Hines, etc.) due to less free
time to make baked goods from
scratch
An easy-to-make dessert
- Increased desire for more
that leverages a common
occasions to eat S’mores
Hershey’s association with
the strength of one of
America’s favorite baking
brands, Betty Crocker
TECHNOLOGY
- High-quality manufacturing
abilities of Betty Crocker
ECONOMIC
- Value-priced grocery products
appeal to the masses
- Low material costs by using
ingredients already produced by
Betty Crocker and Hershey’s
CONSUMER INSIGHT
Reality
Relevant
Resonate
Reaction
None of the eight focus group
participants said they would be surprised
if Hershey’s and Betty Crocker actually
created this product. “Hershey’s is often
associated with S’mores and Betty Crocker
is always coming out with new mixes,”
one respondent said.
Respondents indicated that they enjoy
eating S’mores and would like more
opportunities to do so. Those who cooked
said they would definitely want to bake a
dessert that resembled S’mores.
This product evoked feelings of nostalgia
among focus group participants. Many
said they already thought of Hershey’s
when they heard the word “S’more,”
therefore this product would help
strengthen one of Hershey’s key usage
associations.
Consumers love the idea of creating this
dessert in the comfort of their own
kitchen, versus the usual campfire setting
which isn’t a feasible year-round location.
This product had the highest likeability
rating on the survey.
Points of Parity
- Baking product
- S’mores flavor
- Dessert
- Entertaining usage
Points of Difference
- Easy to make
- Creates nostalgia
through sense of place
3 FACTOR MODEL
Salience
Favorability
Uniqueness
Focus group respondents were aware of the transfer of the following associations to the new product: S’mores,
family activity, tradition, tasty, affordable, classic, heritage. A majority of participants said they only use
Hershey’s chocolate when making S’mores.
Survey respondents ranked product a 4.36 (on a scale of 1 to 5) as a product they would trust from the Hershey’s
brand. In addition, the product capitalizes on the perceived expertise of both Hershey’s and Betty Crocker, the
popularity of Hershey’s chocolate for making S’mores and its ability to be used by chocolate lovers in any
market segment.
Use of S’mores for entertaining purposes; Transfer location of S’mores-making from the campfire to the
kitchen
4 FACTOR MODEL
Compelling
As a baking product, Betty Crocker Supreme Bars – S’mores allows for new usage occasions and locations of Hershey’s products. The
product strengthens the existing relationship between Hershey’s and Betty Crocker and reinforces nostalgic associations of both
brands. Supports Hershey’s brand associations of tastiness, as survey respondents rated the product a 4.4 (on a scale of 1 to 5) as
something that seemed like it would taste good.
Relevant
80% of survey respondents already purchase ingredient branded Betty Crocker/Hershey’s products, meaning there is a high chance
that they would venture to purchase this product as well. Additionally, survey respondents rated the product a 4.16 (on a scale of 1 to
5) as something that would make them happy.
Consistent
Survey respondents ranked product a 4.24 (on a scale of 1 to 5) for how well it “fit” with the Hershey’s brand. Betty Crocker Supreme
Bars – S’mores capitalizes on a strong and unique association of Hershey’s, and makes S’mores a more useful and common cooking
practice in an additional location.
Strong
Strong: The product extends from two of Hershey’s points of strength – S’mores association and taste – and has the potential to
strengthen the relationship between Betty Crocker and Hershey’s, which is already received well among consumers
VALUEOPPORTUNITY CHART
Low
EMOTION
Adventure
Medium
High
Low
IMPACT
Independence
Security
CORE TECHNOLOGY
AESTHETICS
Comfort
QUALITY
Craftsmanship
Durability
OVERALL
Profit
Safety
Brand
Ease of Use
Extension
Visual
Auditory
Tactile
Olfactory
Taste
IDENTITY
Reliable
Enabling
Power
ERGONOMICS
Social
Environmental
Sensuality
Confidence
Medium
Point in time
Sense of place
Personality
Focus group participants said:
“I like bars, they’re easy to make.”
“I love these.”
“It’s easy and it makes me nostalgic.”
High
PROS AND CONS
Pros
Cons
- The product creates nostalgia because it is
- This product appeared difficult to make
to some respondents
- Some focus group participants would
rather make regular, authentic S’mores
something respondents associated with
memories of their childhood
- Makes it easy to recreate the traditional
S’mores treat through the new usage location
- This product was rated higher than the other
new Hershey’s products in tastiness
- Focus group participants received this product
more favorably than the other two
RECOMMENDATIONS
- Market the product as something that would be extremely easy to bake, to
reduce fears of those who are not experienced with baking
FORECASTED SALES
Bisquick with Chocolate Chips
Purchase Intent:
Definitely Buy: 28%
Probably Buy: 44%
−−−−−−−−−−−−−−−−−−−
Adjusted Intent: 37%
Cocoa-To-Go
Purchase Intent:
Definitely Buy: 20%
Probably Buy: 20%
Betty Crocker S’mores
Purchase Intent:
Definitely Buy: 44%
Probably Buy: 20%
−−−−−−−−−−−−−−−−−−−
−−−−−−−−−−−−−−−−−−−
Adjusted Intent: 23%
Adjusted Intent: 42%
Brand Awareness: 50%
Availability: 40%
Trial: 37%
Repeat: 7.4%
Brand Awareness: 50%
Availability: 40%
Trial: 23%
Repeat: 6.4%
Brand Awareness: 50%
Availability: 40%
Trial: 42%
Repeat: 15%
Market Share Percentage:
Market Share Percentage: .29%
Market Share Percentage:
.54%
Projected Annual Category
Sales: 8,860,800 units
Revenue Per Unit: $2.25 per box
Annual Sales Forecast:
$107,658.72
Projected Annual Category
Sales: 12,439,200 units
Revenue Per Unit: $1.35 per box
Annual Sales Forecast:
$48,699.47
1.26%
Projected Annual Category
Sales: 37.317.600 units
Revenue Per Unit: $1.35 per box
Annual Sales Forecast:
$634,772.38
Note: See Appendix for calculations
OVERALL RECOMMENDATIONS
Recommendation: Drop
- Survey respondents liked the partnership between Bisquick and Hershey’s, but still intended
on purchasing chocolate chips separately
- Focus group participants did not feel this idea was unique
- Would be difficult to establish Hershey’s in the breakfast-food category
- Not a very profitable endeavor
Recommendation: Drop
- Respondents reacted neutrally to this product
- Opportunity does not resonate with the consumers’ needs and desires
- There is not enough of a difference between this product and competing products
- Low likelihood-to-purchase percentages
- Projected sales forecast is very low
Recommendation: Move Forward
- Ranked highest in survey in likeability, uniqueness, reliability, quality and other categories
- Combines a well-known Hershey’s association (S’mores) with an easy-to-make dessert item
- Highest value ratings of the three products
- Highest likelihood-to-purchase percentage
- The most profitable of the products presented
LAUNCH PROGRAM
Product
Tangible Benefits:
Intangible Benefits:
- Appropriate for entertaining at any
given time of year
- Can be easily targeted toward
children or adults
- Evokes strong sense of taste, smell,
sight; almost all focus group members
said the packaging alone made them
hungry
- High quality associations with Betty
Crocker and Hershey’s
- Leverages secondary equity from
Betty Crocker by using the same logo
and packaging as the existing Betty
Crocker baking mixes
- Easily accessible to many people
through placement strategies
- Ranked extremely high by
survey respondents in reliability
and trustworthiness
- Emotional relevance is
established through nostalgia and
sense of place associated with
Hershey’s
LAUNCH PROGRAM
Price
- Product should follow
the value pricing model
- Pricing should reflect
existing pricing on Betty
Crocker products, thus
we suggest a retail price
of $3.00
Placement
- Distribute through indirect channels, at
retailers like grocery stores
- Mass placement recommended to be
consistent with brand’s previous efforts
Push Strategies:
- Cooperative Advertising: Pay for placement
in grocery store circulars
- Quantity Discounts: Offer deals to retailers
for ordering a certain number for their stores
Pull Strategies:
- Advertising
- Promotions
- Coupons
MARKET ENTRY STRATEGY
Promotion
IMC Plan:
- Advertising
- Print Advertisements: Place in family, parent and cooking magazines, as
well as local newspaper inserts
- Television Commercials: Create a TV spot emphasizing the sense of
nostalgia associated with product, and the same delicious treat without the
need for a campfire
- Sales Promotion
- Offer coupons
- “2 for the price of 1” deals to grocery store shoppers
- Point of Purchase
- Create a point-of-purchase display in the baking aisle to draw attention to
the new product; Would work well because Betty Crocker already has one
of the largest presences in the baking aisle