If I say ‘chocolate syrup’, which brand comes to mind immediately? For me, and maybe even for you, it would be Hershey’s. Why? (more on this below).
Founded in 1894 by Milton S. Hershey, Hershey’s started as a humble chocolate manufacturer in Pennsylvania. Fast forward over a century, Hershey’s isn’t just a chocolate bar – it’s a pantry staple in over 60 countries. Hershey’s went from a local chocolatier to a global icon with its strategic marketing. It has mastered the art of winning hearts (and taste buds) across continents.
Did you know?
Cadbury hid a part of their chocolate-making process from Hershey’s, which made Hershey’s widely popular in the USA! (read about this below).
Hershey’s Founding Story
Milton S. Hershey had 3 failed ventures before he created the Lancaster Caramel Company in 1882. The first time he saw machines that made chocolates was in World’s Columbian Exposition in Chicago in 1893.
He bought equipment and decided to invest in chocolates –
| “Caramels are a fad but chocolate is permanent. I am going to make chocolate.”This idea led to the creation of Hershey’s Chocolate, which has been winning sweet tooths for 130 years! |
After this, he went to Cadbury to learn about their chocolate-making process. Cadbury tried to trick Hershey but this made Hershey’s a favorite among Americans:
In 1907, he introduced Hershey’s Kiss – a product that is marketed heavily in India, especially for gifting! Initial marketing strategies of Hershey’s included traditional channels.
Eventually, they also started creating ad films to reach the masses
In 2023, Hershey’s global net revenue was a $11.17!
How Hershey’s Made Its Mark in India
Hershey’s entered India in 2007 through a joint venture with Godrej, a trusted Indian conglomerate. This partnership was meant to combine Hershey’s global expertise with Godrej’s local market knowledge.
It launched with chocolate syrup – and that’s why, Hershey’s chocolate syrup is one of its most memorable products! Godrej Hershey produced a variety of confectionery products, and one of the most popular of them was this:
In 2012, Hershey’s decided to end the joint venture and take full control of its operations in India. So, Hershey’s bought the 49% stake of Godrej and the latter exited the partnership.
The Marketing Mix of Hershey’s
1. Product
Hershey’s is synonymous with high-quality chocolate and confectionery products that cater to diverse tastes and occasions. From their iconic Hershey’s Kisses and classic milk chocolate bars to Reese’s Peanut Butter Cups and Hershey’s Syrups, the brand has created an assortment that appeals to all age groups.
Hershey’s also innovates regularly with seasonal offerings like holiday-themed chocolates and limited-edition flavors, keeping the excitement alive for loyal customers.
They even did one with Harry Potter!
Beyond indulgence, the brand has tapped into health-conscious trends with sugar-free and organic options, ensuring they meet evolving consumer preferences.
Their packaging adds to the experience, with resealable pouches and easy-to-use baking products like cocoa powder and chocolate chips, making Hershey’s a household favorite.
2. Price
Hershey’s pricing strategy strikes a balance between affordability and premium quality, making their products accessible to a wide audience. By offering a mix of single-serving packs and bulk options, they cater to both casual buyers and larger gatherings.
Competitive pricing is key, especially when positioned against global giants like Mars and Nestlé. However, Hershey’s also offers premium products at slightly higher price points, justifying the cost with unique flavors and limited-edition collections.
This tiered pricing approach allows them to serve different market segments without diluting their brand value.
3. Place
Hershey’s has built a robust distribution network to ensure its products are available worldwide. Their chocolates can be found in supermarkets, convenience stores, vending machines, and online platforms, ensuring maximum reach.
The brand has also partnered with foodservice providers, enabling the use of Hershey’s products in cafes, bakeries, and restaurants. In addition, Hershey’s Chocolate World, their flagship retail and entertainment destination, acts as both a retail hub and a brand experience, deepening customer loyalty and creating memorable connections.
However, this is not yet available in India, but it has a manufacturing plant in Madhya Pradesh and a head office in Mumbai.
4. Promotion
Hershey’s promotional efforts leverage nostalgia, family values, and moments of joy to create emotional connections with their audience. The brand consistently highlights the role of Hershey’s in celebrations and everyday moments.
Sponsorships, partnerships, and collaborations with influencers further amplify their reach. For instance, look at this collab with the Malkin – Parul Gulati.
For Hershey’s, seasonal marketing, like Valentine’s Day or Halloween campaigns, plays a significant role in boosting sales during key periods. For instance, around Women’s Day in India this year, the company created a dedicated range with packing that celebrated women in different fields:
Continuing Mr. Hershey’s philanthropical legacy, the company also engages in CSR initiatives, such as sustainable cocoa sourcing.
This appeals to socially conscious consumers and enhances their brand reputation.
In a Nutshell
Hershey’s story underscores the value of balancing tradition with innovation and staying attuned to consumer needs while delivering memorable brand experiences.
Key Takeaways from Hershey’s Marketing
- Leverage Local Partnerships:
Hershey’s joint venture with Godrej helped them establish a foothold in the Indian market, showing the power of combining local expertise with global branding.
- Adapt Your Product Mix:
From sugar-free options to seasonal offerings, Hershey’s diversified products to cater to evolving consumer preferences.
- Create Emotional Campaigns:
Nostalgia, family values, and seasonal celebrations formed the backbone of Hershey’s promotional strategies.
