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Sweet Success!
How Hershey’s Cocoa
                 ®




Leveraged Digital to Drive
Strong Business Results
April 24, 2012
2
3
4
5
6
Business Situation:


 Cocoa category growth was sluggish

 Sales of Hershey’s® Cocoa were below category growth rate

 Hershey’s® Cocoa market share was declining

 Competitive landscape was showing increased growth, especially in private label

 Business Strategy:

 Leverage the iconic nature and heritage of the brand and its key role in baking/recipes,
  while also driving brand relevance

 Heritage Marketing Lever: Launch limited-edition, vintage-style packaging

 Relevance Marketing Lever: Activate the brand through a multi-channel digital program

 The “Hershey’s® Cocoa Iconic Recipe” Promotion was created & launched in February 2011


                                                                                             7
Hershey’s Cocoa Iconic Recipe Sweepstakes Overview
                   ®




 Program launched February 2011 and ran thru April
 Members of the Hershey’s® Kitchens community were
  invited to vote for one of 15 selected recipes they felt
  was the most iconic Hershey’s® Cocoa recipe
 Over 1.1m nostalgic can labels were distributed
 POS recipe cards, coupon, shelf tags and a PR
  campaign were designed to generate additional
  interest from consumers, bakers, bloggers and food
  writers
 Grand prize winner won a trip to Hershey, PA and the
  Hershey’s® Kitchens to prepare the winning recipe




                                                             8
Multi-Channel Digital Program to Drive Engagement




                                                    9
Redesign of HersheysKitchen.com

Redesign Objectives:

 Be a best-in-class home for
  chocolate recipes

 Ensure HK.com is a trusted
  partner in chocolate recipe
  occasions

 OWN Chocolate Dessert
  recipes on the web

 Deepen relationships and
  engagement w/consumers

 Drive sales

 Increase new visitors

 Increase repeat visitors

                                  10
Redesign of www.HersheyKitchens.com

Before:                After:




                                      11
Promotion
Site Design




              12
Site Performance Results

Site Performance Metrics

 Site visits +20%

 Page views +11%

 Recipe views +25%

 Mobile views +40%

 Time on site +5%


Promotion Metrics

 180,000 visits

 350,000 page views

 100,000 entries
                           13
Site Performance Results

   Total Visits to Hersheyskitchens.com since re-launch = 2,554,008

            Nov 2010   290,950
    Dec 2010           770,226
    Jan 2011           378,171
    Feb 2011           403,636   average increase in Jan-April of +28.3% vs. November
    Mar 2011           346,185
    Apr 2011           364,920


   +138% increase in Hershey’s® Cocoa page views during Feb vs. Dec

   +159% increase in Hershey’s® Cocoa page views during March vs. Dec




                                                                                        14
Branded Recipe Integration and Banner Campaign


 Hershey’s® baking brands were integrated into
  recipes on TasteofHome.com
 Hershey’s® branded products replaced generic
  ingredient keywords in recipes on the site
 Featured Hershey’s® ingredients included baking
  cocoa and various flavors of baking chips
 Recipes were supported by banner ads as well as
  “Sponsored by Hershey’s® Kitchens” logos
 The banner campaign and branded keyword
  integration generated multi-million impressions
  +450% above estimated levels




                                                    15
Hershey’s Kitchens Facebook page launched

 Hershey’s® Kitchens Facebook page was launched in October and experienced
  steady fan growth. Hershey’s® Cocoa and associated recipes were regularly posted
  and generated strong fan engagement

                        Hershey's Kitchens Facebook Fan Growth

     10,000

      9,000

      8,000

      7,000

      6,000

      5,000

      4,000

      3,000

      2,000

      1,000

        -
              Oct, 10   Nov, 10   Dec, 10   Jan, 11   Feb, 11    Mar, 11   April, 11
                                                                                       16
Earned/Shared Digital Media Activation




                                         17
Business Results


 The Baking Cocoa Category and household penetration went up markedly

 Hershey’s® Cocoa 2011 Factory Sales exceeded expectations at more than +15% growth

 Hershey’s® Cocoa share growth exceeded category growth rates

 Household penetration of Hershey’s® Cocoa went up nearly 10%

 YTD velocity increased more than +15% to help drive sales growth

 Leading competitor’s sales, distribution and household penetration went down

 Hershey’s® Cocoa Iconic Recipe Sweepstakes drove 34M media impressions




                                                                                       18
Kitchens Facebook presence continues to grow




                                               19
Hershey’s Kitchens YouTube Channel launched 4Q2011
        ®




                                                     20
And the winner is…




  Iconic Cocoa
Recipe Winner’s
“Day at Hershey”




                     21
22

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Hershey's Cocoa Leverages Digital Marketing to Drive 15% Sales Growth

  • 1. Sweet Success! How Hershey’s Cocoa ® Leveraged Digital to Drive Strong Business Results April 24, 2012
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  • 7. Business Situation:  Cocoa category growth was sluggish  Sales of Hershey’s® Cocoa were below category growth rate  Hershey’s® Cocoa market share was declining  Competitive landscape was showing increased growth, especially in private label  Business Strategy:  Leverage the iconic nature and heritage of the brand and its key role in baking/recipes, while also driving brand relevance  Heritage Marketing Lever: Launch limited-edition, vintage-style packaging  Relevance Marketing Lever: Activate the brand through a multi-channel digital program  The “Hershey’s® Cocoa Iconic Recipe” Promotion was created & launched in February 2011 7
  • 8. Hershey’s Cocoa Iconic Recipe Sweepstakes Overview ®  Program launched February 2011 and ran thru April  Members of the Hershey’s® Kitchens community were invited to vote for one of 15 selected recipes they felt was the most iconic Hershey’s® Cocoa recipe  Over 1.1m nostalgic can labels were distributed  POS recipe cards, coupon, shelf tags and a PR campaign were designed to generate additional interest from consumers, bakers, bloggers and food writers  Grand prize winner won a trip to Hershey, PA and the Hershey’s® Kitchens to prepare the winning recipe 8
  • 9. Multi-Channel Digital Program to Drive Engagement 9
  • 10. Redesign of HersheysKitchen.com Redesign Objectives:  Be a best-in-class home for chocolate recipes  Ensure HK.com is a trusted partner in chocolate recipe occasions  OWN Chocolate Dessert recipes on the web  Deepen relationships and engagement w/consumers  Drive sales  Increase new visitors  Increase repeat visitors 10
  • 13. Site Performance Results Site Performance Metrics  Site visits +20%  Page views +11%  Recipe views +25%  Mobile views +40%  Time on site +5% Promotion Metrics  180,000 visits  350,000 page views  100,000 entries 13
  • 14. Site Performance Results  Total Visits to Hersheyskitchens.com since re-launch = 2,554,008 Nov 2010 290,950 Dec 2010 770,226 Jan 2011 378,171 Feb 2011 403,636 average increase in Jan-April of +28.3% vs. November Mar 2011 346,185 Apr 2011 364,920  +138% increase in Hershey’s® Cocoa page views during Feb vs. Dec  +159% increase in Hershey’s® Cocoa page views during March vs. Dec 14
  • 15. Branded Recipe Integration and Banner Campaign  Hershey’s® baking brands were integrated into recipes on TasteofHome.com  Hershey’s® branded products replaced generic ingredient keywords in recipes on the site  Featured Hershey’s® ingredients included baking cocoa and various flavors of baking chips  Recipes were supported by banner ads as well as “Sponsored by Hershey’s® Kitchens” logos  The banner campaign and branded keyword integration generated multi-million impressions +450% above estimated levels 15
  • 16. Hershey’s Kitchens Facebook page launched  Hershey’s® Kitchens Facebook page was launched in October and experienced steady fan growth. Hershey’s® Cocoa and associated recipes were regularly posted and generated strong fan engagement Hershey's Kitchens Facebook Fan Growth 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Oct, 10 Nov, 10 Dec, 10 Jan, 11 Feb, 11 Mar, 11 April, 11 16
  • 18. Business Results  The Baking Cocoa Category and household penetration went up markedly  Hershey’s® Cocoa 2011 Factory Sales exceeded expectations at more than +15% growth  Hershey’s® Cocoa share growth exceeded category growth rates  Household penetration of Hershey’s® Cocoa went up nearly 10%  YTD velocity increased more than +15% to help drive sales growth  Leading competitor’s sales, distribution and household penetration went down  Hershey’s® Cocoa Iconic Recipe Sweepstakes drove 34M media impressions 18
  • 19. Kitchens Facebook presence continues to grow 19
  • 20. Hershey’s Kitchens YouTube Channel launched 4Q2011 ® 20
  • 21. And the winner is… Iconic Cocoa Recipe Winner’s “Day at Hershey” 21
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