Human Resources

Marketing Strategy in Action

Hershey North America

Although Hershey Chocolate USA, a division of Hershey Foods

Corporation, did not meet its performance expectations in

1999, the company played an important role in increasing

U.S. candy sales. Retail confectionery sales grew at a rate of

4 percent in 1999, which was greater than the average growth rate

within the general packaged foods industry. The past decade has

shown an increase in competition in the candy industry, with companies

such as Mars Candy Company introducing a variety of new

products, brand extensions, and additional pack types. Similarly,

Hershey has diversified its product line and formed alliances with

other companies, such as Breyer’s.

Record sales in the early 1990s resulted in part from the introduction

of a number of new Hershey products, the most significant being

Hershey’s Kisses with Almonds. This product was introduced in 1990

and became one of the top 20 U.S. candy brands during 1991. By

reaching the top 20 in less than one full year of national distribution,

Hershey’s Kisses with Almonds became the most successful newproduct

introduction in the corporation’s history.

In 1991, Hershey Chocolate also received the Equitrend Outstanding

Quality Award. This award was based on a national survey

that measured how consumers perceived the quality of 190 nationally

recognized brand names. Hershey’s milk chocolate bar was the highest-

rated confectionary brand.

Part of Hershey’s strategy is to target mothers. The company reasons

that mothers determine children’s early taste in candy. In addition,

research shows that adults eat more than 55 percent of all candy

sold. Bite-size products are especially popular with adult consumers.

When wrapped in seasonal colors, these products have tremendous

appeal for adults during Christmas and Easter season. Halloween

season, however, is more oriented toward candy bars. In December

1998, Hershey targeted the ever-growing snacking...