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Running Head: Marketing
Market Segmentation and Strategies That Could Be Used By the Hershey Company
Victoria Rock
AIU Online

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Introduction
The marketing strategy is taken in the basis of internal and external environment of an
organization. For the success of a company as well as its products and services, it is necessary
to make some important and effective marketing decisions (Marketing Segmentation,
Targeting, and Positioning, 2011). This paper will examine market segmentation and strategies
that could be used by the Hershey Company for their product, chocolate bar.

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Marketing Strategy for Hershey and the Chocolate Bar
Segmentation
According to our book, Marketing, segmentation is the identification of subjects of buyers
within a market who share similar needs buyer behavior (Marketing Segmentation, Targeting,
and Positioning, 2011). Because of the world being made up of billions of buyers, with their
own set of needs and behavior, segmentations aim is to match groups of purchasers with the
same set of needs and buyer behavior. (Marketing Segmentation, Targeting, and Positioning,
2011) Segmentation is a form of critical evaluation and not a prescribed process or system
because no two markets are the same.
There are however a number of underlining criteria that can help with segmentation:
Is the segment viable and can we make a profit from it?
Is it accessible and how easy is it to get into the segment?
Is it measurable and can we obtain realistic data to consider its potential? (Marketing
Segmentation, Targeting, and Positioning, 2011)
With adults accounting for the largest percentage of chocolate bar sales and with the
increased interest in healthier foods, Hershey’s segmentation should cover:
Promoting the health benefits of their dark chocolate products.
Help in changing the mind of customers as to chocolate being an unhealthy snack.
Increase potential sales through promotional programs throughout the year.
Repackage so that the new look appeals to the consumers since it will be tagged as
“low-calorie.”
Target Market
Consumers constantly change their preference for products, so it’s no big surprise that
consumers’ wants for chocolate products has changed as well. They want a greater variety,
which enables the industry to expand on their product line. This provides an opportunity for
greater sales of the new product. With the health trend over the past decade, studies have
shown that dark chocolate provides health benefits such as cardiovascular benefits as well as
reducing an adult’s chance of cancer. (Marano, 2011) Non-traditional holidays as well as
traditional holidays offer an opportunity to market specialized products tailored for a specific
holiday while providing for the opportunity for specialized gift products to increase sales. (Food:
Company Spotlight: Hershey, 2010)

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Positioning, Differentiation and Proposition
Positioning is defined as the image of a particular product or service as seen by the
consumers that are created by the marketer through promotional activities. An effective
positioning builds up an image of the company in the mind of the consumers. (Marketing
Segmentation, Targeting, and Positioning, 2011) The positioning and differentiation in the
product will create a value proposition for the business and helps to create a competitive
advantage that reduces competition. (Marketing Segmentation, Targeting, and Positioning,
2011)
In the chocolate bar industry there are several companies operating. Some have a large
market share while others have a smaller market share. The Hershey Company’s main
competitors are Mars and Cadbury. The positing of these companies is quite high in the minds
of the consumer due to the quality of their products. They have been in the industry for many
years and have the leading market share. (The Hershey Company, 2012)
In order to face competition, Hershey has to bring some differentiation in its product quality
to create a better positioning in the minds of the consumers. By providing different flavors to
their candy bar could cause an increase in the effectiveness of their product in the mind of the
consumer. Different promotional strategies could be used such as: print advertising, sales
promotion, public relation, personal selling, etc., could create a strong positioning (The Hershey
Company, 2012).
Proposition could be explained as the benefits that are delivered by the company to its
customers. (Marketing Segmentation, Targeting, and Positioning, 2011) The value proposition
of the chocolate bar is the increase in customer satisfaction by being produced in different
tastes and flavors that accommodate all customers. High quality and different flavors would
provide more benefits to the customers that are not provided by the competition. A good
positioning statement would be very effective in increasing the customer base.

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Conclusion
It can be concluded that a good marketing strategy is an important and crucial tool that can
determine the success or failure of a product or service for a company. If Hershey uses the
right marketing strategies they can take the market on health dark chocolate as well as other
healthy snacks.

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Reference
Food: Company Spotlight: Hershey. (2010, March). Marketwatch: Global Round-Up 9, no. 3, pp. 89-95.
http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?sid=345aef1e-10ea-4e64-
9460-27afc745a81d%40sessionmgr12&vid=10&hid=101
Marano, H. (2011). The Scoop on Chocolate: Is chocolate really healthy? Psychology Today Vol. 44 Issue
2, p44-45.
http://ehis.ebscohost.com.proxy.cecybrary.com/ehost/pdfviewer/pdfviewer?nobk=y&sid=9b41
2f6c-be5f-4f73-87e4-5a02a9305fbf@sessionmgr110&vid=12&hid=101
(2011). Marketing Segmentation, Targeting, and Positioning. In H. S. Kerin R., Marketing (pp. 220-243).
New York: McGraw-Hill/Irwin.
(2012). The Hershey Company. Hoovers, Inc.
http://subscriber.hoovers.com.proxy.cecybrary.com/H/company360/overview.html?companyId=75995
449

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