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Source 1 (Product, Correlates to 3, 4, and 8) 

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Source 1 (Product, Correlates to 3, 4, and 8) 

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What are the most popular flavors

Top 5 Global Flavors
1. Unflavored/Plain
2. Hazelnut
3. Caramel
4. Almond
5. Orange

Top 5 North American Flavors
1. Unflavored/Plain
2. Caramel
3. Almond
4. Peanut Butter
5. Hazelnut

Claims

Ethical claims have seen tremendous growth in the chocolate category, with Low/No/Reduced Allergen, Gluten-Free and Organic claims posting large gains since 2012.

Top 5 Global Claims
1. Seasonal (+21 percent)
2. Ethical-human (+300 percent)
3. Ethical – Environmentally Friendly Product (+846 percent)
4. Low/No/Reduced Allergen (+195 percent)
5. Kosher (+36 percent)

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The reports are in. FONA's Trend Team has released a detailed overview on chocolate confectionery trends based on data accumulated between Jan. 2012 and Dec. 2015.

With 75 percent of women and 68 percent of men reporting that they indulge in chocolate, those trends are ones to keep an eye on.

Flavors

Hazelnut is the flavor to watch, experiencing nearly a 50 percent increase in launches since 2012 (411 to 606). That growth is poised to continue. By the second week of February, the number of hazelnut product launches was already at 110.

Coffee flavor follows with the second highest percentage of growth at 40 percent, while coconut and caramel fight for third at around 30 percent growth over the same time period.

Top 5 Global Flavors
1. Unflavored/Plain
2. Hazelnut
3. Caramel
4. Almond
5. Orange

Top 5 North American Flavors
1. Unflavored/Plain
2. Caramel
3. Almond
4. Peanut Butter
5. Hazelnut

Claims

Ethical claims have seen tremendous growth in the chocolate category, with Low/No/Reduced Allergen, Gluten-Free and Organic claims posting large gains since 2012.

Top 5 Global Claims
1. Seasonal (+21 percent)
2. Ethical-human (+300 percent)
3. Ethical - Environmentally Friendly Product (+846 percent)
4. Low/No/Reduced Allergen (+195 percent)
5. Kosher (+36 percent)

Reconnecting Adults with Chocolate

According to Mintel data, older consumers have a lower engagement with chocolate. The lack of interest reflects their desire to eat healthy. To regain adult customers, companies have turned to tactics such as using alcohol flavors, organic ingredients, and premium positioning.

Recent launches have featured Limoncello and dark chocolate, chocolates filled with the sweet herbal Liqueur Beirao, and dark chocolate and truffles flavored with Merlot, Pink Champagne, and Pinot Noir.

And although the organic claim has dropped in the United States between 2012 and 2015, it's on the rise globally, growing from 351 launches to 705. Seven percent of chocolate confectionery launches currently carry the organic claim.

Global chocolate premium claims have also risen by 50 percent since 2013.

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Chocolate trends: Popular flavors, growing claims and reconnecting with adults

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The reports are in. FONA's Trend Team has released a detailed overview on chocolate confectionery trends based on data accumulated between Jan. 2012 and Dec. 2015. With 75 percent of women and 68 percent of men reporting that they indulge in chocolate, those trends are ones to keep an eye on.

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Source 2: How often do people eat chocolate, what do they prefer, and where do they buy it (Place + Promotion) (Q3, 5, 6,)

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Source 2: How often do people eat chocolate, what do they prefer, and where do they buy it (Place + Promotion) (Q3, 5, 6,)

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2 Secondary Source  (how often do people eat chocolate, what do thye prefer, where do they buy it) (Place + Promotion)

Additionally, consumers are brand-loyal and about half (47%) are purchasing $5-$10 worth of chocolate a few times a month from their grocery store.

The chocolate market has not seen consumers shift away from in-person sales to online stores and food delivery services the way other CPG categories have trended. Grocery stores are the center of chocolate purchasing, with 93% of respondents identifying their local grocery as the source of their confection collection. Other than grocery stores, 69% purchase their candy at convenience stores and specialty candy stores.

90% of respondents indicating strong preference for their preferred brand. Reese’s and M&M’s are tied at 57% for consumers’ favorite chocolate candy, followed by Hershey’s (48%) and Snickers and KitKat (47%).

One-fifth of consumers buy candy weekly, and slightly more (22%) buy candy multiple times per week

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In a 2022 online survey of over 15,000 confection-buying consumers, conducted from June 12 to June 16, Shopkick identified several major trends; first and foremost, chocolate dominates the marketplace. Chocolate is the favorite candy category among the vast majority of consumers (90%). Additionally, consumers are brand-loyal and about half (47%) are purchasing $5-$10 worth of chocolate a few times a month from their grocery store.

The chocolate market has not seen consumers shift away from in-person sales to online stores and food delivery services the way other CPG categories have trended. Grocery stores are the center of chocolate purchasing, with 93% of respondents identifying their local grocery as the source of their confection collection. Other than grocery stores, 69% purchase their candy at convenience stores and specialty candy stores.

Although brand loyalty has experienced a general weakening in the U.S. marketplace, candy consumers show strong brand preferences, with 90% of respondents indicating strong preference for their preferred brand. Reese's and M&M's are tied at 57% for consumers' favorite chocolate candy, followed by Hershey's (48%) and Snickers and KitKat (47%).

One-fifth of consumers buy candy weekly, and slightly more (22%) buy candy multiple times per week. Interestingly, 11% of consumers identified "spicy" candy as their most sought-after variety.

In the non chocolate candy categories, the favorite sweet candy is Starburst (55%) followed closely by Skittles (53%). Consumers' preferred sour candy is Sour Patch Kids (73%), their favorite minty candy is York Peppermint Patties (64%) and their favorite spicy candy is Hot Tamales (52%).

A pandemic-related shift toward home consumption has occurred across many categories, and candy trends bear this out. The majority of consumers' favorite place to enjoy their confectionery treats is from the comfort of their own home (89%). However, classic movie theater candy remains popular even following Covid-19 shifts in moviegoing habits: 34% of consumers enjoy their candy at the movie theater or drive-in.

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Chocolate is the most popular U.S. candy product

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Among confection-buying consumers, chocolate is the dominant favorite among candy products, followed by sweet candy like Starburst and Skittles.

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Source 3: Hershey's Marketing Tactics (Promotion Q1, 2, 9

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Source 3: Hershey's Marketing Tactics (Promotion Q1, 2, 9

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Branding and packaging

Iconic Logo and Color Scheme

Seasonal Limited Editions:

Personalization and Customization

Eye-Catching Displays and Merchandising

Meet Evolving Consumer Demands: As people become more health-conscious, environmentally aware, and adventurous in their taste buds, Hershey adapts by developing new products or reformulating classic ones. For instance, they introduced lower sugar versions of beloved candies like Reese’s Peanut Butter Cups and Kisses, along with gluten-free and non-GMO options. They also experiment with unique flavor combinations, such as Cookie Layer Crunch bars or Caramel Swirl Bliss chocolates.

Utilize Collaborations and Partnerships: Hershey has teamed up with iconic brands like Starbucks, Reese’s Pieces, and Twizzlers to develop exclusive treats that capitalize on established fanbases. These limited editions create buzz, drive impulse purchases, and attract new customers intrigued by the cross-promotional synergies.

Engage Customers Through Experiential Activations: Hershey regularly participates in major events like music festivals, sports games, and holiday celebrations to showcase its latest offerings and connect with audiences. Interactive installations, virtual reality simulations, customized dessert stations, and giveaways provide memorable encounters that leave lasting impressions. By creating immersive environments that align with target demographics’ interests, Hershey generates social media buzz, sparks positive word-of-mouth, and reinforces its position as a fun and enjoyable brand.

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Hershey's, one of the world's most recognized and beloved confectionery brands, employs a comprehensive marketing strategy to maintain its leadership in the global chocolate and sweets market. Here's a detailed breakdown of Hershey's marketing strategies:

As a marketing strategy, Hershey's utilizes its product portfolio to create value for consumers through diversification and differentiation. Here are some ways in which Hershey's leverages its product portfolio:

Diversification: Hershey's offers a wide range of confectionery products catering to various consumer segments and preferences. From milk chocolate bars to dark chocolate, from hard candies to gummy bears, Hershey's provides options for people with diverse tastes and dietary requirements.

Brand Extension: Hershey's expands its core brands into new categories to increase sales and reach new markets. For example, Reese's, one of Hershey's most popular brands, now includes peanut butter cups, spreads, cookies, and even snack mix.

Seasonal Offerings: To capitalize on holiday seasons like Halloween, Christmas, Easter, etc., Hershey's introduces limited edition products tailored specifically for those occasions. These seasonal offerings not only drive sales but also generate excitement among consumers.

Premiumization: Hershey's targets upscale consumers who seek higher quality, luxury chocolates with unique flavors and ingredients. Its artisanal subsidiaries, Scharffen Berger (In 2021, SCHARFFEN BERGER Chocolate Maker has returned to private ownership after being held by The Hershey Company for 16 years) and Dagoba Chocolate, provide these premium products to meet this demand.

By leveraging its product portfolio strategically, Hershey's ensures it meets the needs of a broad spectrum of customers while continuously innovating and growing its business.

Innovation and new product development serve as crucial components of Hershey's marketing strategy. By introducing fresh ideas and diversifying its portfolio, the chocolate giant remains competitive and appealing to changing consumer preferences. Here are several ways in which Hershey leverages innovation and new product development as marketing tools:

Meet Evolving Consumer Demands: As people become more health-conscious, environmentally aware, and adventurous in their taste buds, Hershey adapts by developing new products or reformulating classic ones. For instance, they introduced lower sugar versions of beloved candies like Reese's Peanut Butter Cups and Kisses, along with gluten-free and non-GMO options. They also experiment with unique flavor combinations, such as Cookie Layer Crunch bars or Caramel Swirl Bliss chocolates.

Expand into Different Categories: To broaden its customer base and capture more revenue opportunities, Hershey explores adjacent categories where it can leverage its expertise in confectionery. Their acquisition of Amplify Snack Brands added brands like SkinnyPop popcorn and Oatmega protein bars to their portfolio. Similarly, their purchase of Pirate Brands gave them access to baked snacks like Pirate's Booty and Smart Puffs. Such moves enable Hershey to cater to different occasions, dietary restrictions, and consumption habits.

Utilize Collaborations and Partnerships: Hershey has teamed up with iconic brands like Starbucks, Reese's Pieces, and Twizzlers to develop exclusive treats that capitalize on established fanbases. These limited editions create buzz, drive impulse purchases, and attract new customers intrigued by the cross-promotional synergies. Additionally, Hershey works with food startups and entrepreneurs through accelerator programs like The Hershey Company Accelerator powered by RECESS, providing mentorship, resources, and distribution networks to support innovative concepts in the sweet and savory space. By nurturing these relationships, Hershey positions itself as a forward-thinking organization open to disruptive thinking and creativity.

Engage Customers Through Experiential Activations: Hershey regularly participates in major events like music festivals, sports games, and holiday celebrations to showcase its latest offerings and connect with audiences. Interactive installations, virtual reality simulations, customized dessert stations, and giveaways provide memorable encounters that leave lasting impressions. By creating immersive environments that align with target demographics' interests, Hershey generates social media buzz, sparks positive word-of-mouth, and reinforces its position as a fun and enjoyable brand.

Branding and packaging play critical roles in Hershey's marketing strategy, helping the company stand out among competitors while fostering emotional connections with consumers. Here are some key aspects of how Hershey leverages branding and packaging for effective marketing:

Iconic Logo and Color Scheme: Hershey's distinctive logo featuring a stylized milk churn and the words "Hershey's" in bold, all-capital letters is instantly recognizable across generations. Its signature color scheme, consisting of brown and white, evokes warmth, nostalgia, and quality. The consistent use of this visual identity creates brand recognition and loyalty, enabling easy identification of Hershey's products even without reading the labels.

Heritage Storytelling: Hershey's history dates back over a century, and the company frequently references its rich past in its brand messaging. Founder Milton Hershey's vision, perseverance, and philanthropy form an integral part of the brand narrative, emphasizing tradition, authenticity, and trustworthiness. By weaving heritage elements into advertising campaigns, packaging designs, and experiences, Hershey's cultivates a sense of pride and belonging among its audience.

Seasonal Limited Editions: Hershey's releases special edition variations of its popular products around holidays, cultural events, and seasonal changes. These limited time offers feature festive packaging designs, often incorporating colors, graphics, and text related to the occasion. Not only do these exclusives generate excitement and anticipation among existing customers, but they also entice new buyers who might otherwise pass over traditional Hershey's products.

Eye-Catching Displays and Merchandising: In stores, Hershey's employs visually appealing displays and shelf arrangements to draw attention to its products. During peak seasons or promotional periods, the company may create interactive, thematic settings that engage shoppers and drive impulse purchases. Well-organized and attractively presented merchandise increases the likelihood of consumers picking up Hershey's products, leading to increased sales and stronger brand visibility.

Pricing plays a crucial role in Hershey's overall marketing approach, allowing the company to balance profit margins, customer satisfaction, and competition within the confectionery industry. Here are several pricing strategies employed by Hershey's:

Value-Based Pricing: Hershey's sets prices based on the perceived worth of its products relative to those offered by competitors. By conducting market research and analyzing consumer preferences, the company determines optimal price points that reflect the unique qualities and benefits of its chocolates, candies, and snacks. This value-based pricing strategy helps ensure that Hershey's remains competitive while maintaining premium pricing levels commensurate with its high-quality ingredients and manufacturing processes.

Dynamic Pricing: Hershey's adjusts its prices dynamically based on factors such as supply and demand, production costs, market conditions, and competitor actions. By monitoring real-time data and making quick adjustments, the company avoids losing revenue due to sudden fluctuations in raw material costs or unexpected changes in consumer behavior. This agile pricing strategy enables Hershey's to remain competitively priced while maximizing profits and minimizing losses.

Hershey's places significant emphasis on customer engagement, recognizing the importance of creating personal connections with its audience to build lasting relationships and enhance brand affinity. Here are some ways Hershey's implements effective customer engagement strategies:

Social Media Interaction: Hershey's actively participates in social media platforms like Facebook, Twitter, Instagram, Pinterest, and YouTube, using these channels to interact directly with customers. Through regular posts, contests, polls, Q&A sessions, and user-generated content, the company creates opportunities for two-way communication, enabling fans to share their experiences, provide feedback, and feel heard. This active presence on social media not only improves customer engagement but also allows Hershey's to monitor conversations about its brand and respond promptly to any concerns or issues.

Loyalty Programs: Hershey's offers various loyalty programs designed to reward frequent buyers and keep them engaged with the brand. Its "Hershey's AMP Loyalty Program" grants members exclusive perks, such as early access to new products, special event invitations, birthday surprises, and personalized gifts. Participants earn points through purchases, online activities, and referrals, providing an incentive to stay connected with Hershey's and promote the brand among friends and family.

Experiential Marketing: Hershey's frequently organizes immersive events and activations to engage customers in memorable ways. For example, the company hosts annual Halloween and Christmas celebrations at its Hersheypark theme park, where visitors can enjoy seasonal attractions, meet costumed characters, and sample Hershey's products.

Similarly, Hershey's Chocolate World locations feature interactive exhibits, virtual reality rides, and hands-on workshops, giving guests an unforgettable sensory experience tied to the brand. Such experiential marketing initiatives deepen customer engagement by fostering emotional connections and creating lasting memories associated with Hershey's brand.

Personalization: Recognizing that individual preferences play a crucial role in shaping consumer choices, Hershey's has introduced customizable options for its chocolates. At select retail locations and online, customers can create their own assortment of Hershey's Milk Chocolate Bars, choosing from over 80 different toppings and inclusions. This tailored approach not only satisfies unique tastes but also encourages repeat visits and word-of-mouth recommendations. In addition, Hershey's personalizes communications with customers via email campaigns, addressing them by name and highlighting relevant products or promotions based on purchase history and preferences.

Hershey's has leveraged both influencer and celebrity collaborations as part of its marketing strategy. These partnerships help increase brand visibility, attract new customers, and reinforce positive associations with the Hershey's brand. Here are some notable examples of influencer and celebrity collaborations undertaken by Hershey's:

The collaboration resulted in delicious treats like s'mores dip, peanut butter cup cheesecake bars, and cookies stuffed with Reese's Peanut Butter Cups. By aligning itself with influential figures in niche communities, Hershey's can tap into their established followings, gain credibility, and inspire new ideas for incorporating its products into everyday life.

As part of this alliance, Hershey's created limited edition Kisses packages featuring Perry's signature style and launched a social media contest offering VIP concert tickets and backstage passes. By associating with a well-known pop icon, Hershey's could leverage Perry's massive following and appeal to younger audiences while maintaining its core values of nostalgia and tradition.

Co-Branding Campaigns: Another way Hershey's has utilized influencer and celebrity collaborations is through co-branding efforts with other companies. For instance, Hershey's joined forces with Starbucks to offer exclusive coffee drinks featuring Hershey's syrups and toppings during the holiday season. This strategic alignment allowed both brands to capitalize on each other's strengths, expand their reach, and provide customers with unique experiences.

Additionally, Hershey's teamed up with Universal Studios Hollywood to create a one-of-a-kind chocolate bar inspired by the theme park's most popular attraction, "Harry Potter and the Forbidden Journey." This cross-promotion enabled Hershey's to tap into the Harry Potter fandom and entice fans to try its product while visiting the park.

Overall, these influencer and celebrity collaborations demonstrate how Hershey's continues to adapt its marketing strategy to stay relevant and appealing to diverse audiences. By forming meaningful relationships with respected voices across various industries, Hershey's can enhance its reputation, boost engagement, and ultimately drive sales growth.

Hershey's marketing strategies are rooted in its strong brand identity, commitment to quality, innovation, and customer engagement. These strategies allow Hershey's to maintain its position as a leading confectionery brand and continue to connect with consumers on an emotional level, building long-lasting brand loyalty.

Marketing Mix of Hershey's

The marketing mix, also known as the 4Ps, is a fundamental framework in marketing that helps businesses plan and execute their marketing strategies. It consists of four key elements: Product, Price, Place, and Promotion. Let's break down the marketing mix of Hershey's, one of the world's largest and most recognizable chocolate and confectionery brands.

Hershey's product line primarily revolves around chocolates and confectionery items. This includes a wide range of products such as:

Chocolate Bars: Classic Hershey's Milk Chocolate bars, Hershey's Special Dark, Hershey's Cookies 'n' Creme, and more.

Kisses: Iconic foil-wrapped bite-sized chocolates.

Reese's: Peanut butter cups and various other Reese's branded products.

Other Candy: Products like Twizzlers, Jolly Ranchers, and Ice Breakers.

Baking Products: Hershey's also offers baking ingredients like cocoa powder and chocolate chips.

Hershey's continually introduces new products and variations to cater to different customer preferences and market trends. They also focus on product quality and branding to maintain their reputation for delivering high-quality chocolate products.

Hershey's employs a pricing strategy that reflects the premium quality of its products. Pricing can vary based on factors like product size, packaging, and location. They offer a range of price points to cater to different customer segments. Seasonal and limited-edition products may be priced higher, while standard products maintain competitive pricing in their market segment.

Hershey's often runs promotions, especially during holiday seasons, by offering discounts or special packaging, encouraging consumers to buy more. They also engage in dynamic pricing strategies based on market demand and competitive factors.

The "place" element of Hershey's marketing mix refers to distribution and how its products reach consumers. Hershey's products are widely available across the globe. Key distribution channels include:

Retail Stores: Hershey's products are found in grocery stores, convenience stores, and supermarkets. They have a strong presence in the candy aisle.

Online Sales: Hershey's has an online store, and its products are also available through various e-commerce platforms.

Specialty Stores: Hershey's has its own branded stores and visitor centers in certain locations, such as Hershey, Pennsylvania.

Effective distribution ensures that Hershey's products are readily accessible to consumers, regardless of where they live or shop.

Hershey's invests heavily in promotional activities to build brand awareness and stimulate demand. Their promotional strategies include:

Advertising: Hershey's runs advertising campaigns through various media channels, including television, radio, print, and digital platforms. They often create heartwarming and nostalgic commercials to connect with consumers emotionally.

Sponsorships: Hershey's sponsors various events, sports teams, and entertainment properties, further increasing brand visibility.

Social Media: Hershey's has a strong presence on social media platforms to engage with consumers, share product updates, and run contests and giveaways.

Seasonal Promotions: Hershey's leverages holidays like Halloween, Christmas, and Easter with special packaging, limited-edition products, and themed promotions.

Partnerships: Collaborations with other brands or businesses, such as baking companies or ice cream brands, help expand Hershey's product reach and appeal.

Hershey's marketing mix is a well-balanced blend of these four elements, ensuring that they consistently deliver high-quality chocolate products to their consumers and maintain their strong brand presence in the market. Their marketing strategies are adapted to changing consumer preferences, seasonal trends, and emerging technologies to remain competitive in the confectionery industry.
Also Read: Exploring Marketing Strategies and Marketing Mix of M&M's To read more content like this, subscribe to our newsletter

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Marketing Strategies and Marketing Mix of Hershey's

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In this article, we'll delve deeper into Marketing Strategy and Marketing Mix of world's leading chocolate maker - Hershey's.

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The price for chocolate candy outpaced non-chocolate in 2019, averaging 2.27 U.S. dollars per unit compared to 1.88 for non-chocolate. In private label, chocolate candy was also priced higher than non-chocolate, although the spread between prices was greater. Private label chocolate candy was priced at an average of 2.75 dollars per unit compared to 1.41 for non-chocolate.

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The price for chocolate candy outpaced non-chocolate in 2019, averaging 2.27 U.S. dollars per unit compared to 1.88 for non-chocolate. In private label, chocolate candy was also priced higher than non-chocolate, although the spread between prices was greater. Private label chocolate candy was priced at an average of 2.75 dollars per unit compared to 1.41 for non-chocolate.
Average price per unit explained
The average unit price of a product is derived by dividing the total sales by the number of units sold. This data is valuable in helping to understand pricing of a product that may be sold in multiple formats of size and packaging. By calculating average unit price such variance is neutralized and product prices can be fairly compared. In the example above for instance, sales of private label chocolate candy totaled 188.2 million U.S. dollars and unit sales totaled 67.9 million units. The former divided by the latter does indeed average 2.77 dollars per unit.

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U.S. candy and chocolate average price by segment 2019 l Statistic | Statista

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The price for chocolate candy outpaced non-chocolate in 2019, averaging 2.27 U.S.

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