Hershey Foods Corporation is faced with more challenges than you might think! It’s one-of-a-kind style and interesting background give it a unique outlook, compared to it’s unbearably generic rivals. There’s a lot more to this chocolate company than meets the eye! In the early 1900s, Milton Hershey made a huge fortune through dogged persistence and the courage to pursue a dream. Though he was modest and unassuming in appearance, Mr. Hershey was a shrewd and determined businessman. He had a genius for timing and an instinctive ability to hoose loyal and able people to help him.
He was raised as a Mennonite, and was in school until fourth grade, when his father took him out of school to become a printer’s apprentice (a lot like Benjamin Franklin) It was obvious that he was not meant to be a printer, and he was sent to become the apprentice of a candy maker. When he turned 18, he opened a candy shop, which failed miserably. He traveled to Denver, Colorado and accepted a job with a caramel maker. There he learned how adding milk enriched the candy, and left to find his own fortune again. He opened a caramel company, which succeeded, and soon became fascinated with German chocolate making.
He soon bought a German chocolate maker machine, and started making chocolate coatings for his caramels. In 1900, he sold the Lancaster Caramel Company and moved to Pennsylvania, where he opened the Hershey Foods company we all know and love. Hershey’s chocolate and candy targets all ages, from young chidren to the senior citizens of our great country. It reaches it’s audience of potential customers by showing light-hearted, funny commercials starring heir Hershey’s Kisses acting as humans, or the famous Reese’s peanut butter cup commercials.
There are many others, including Jolly Rancher commercials, which depict bright, sunny farms that remind the watcher of relaxing summer days. There is cheap milk chocolate for which mothers thank the Lord for, as it will quiet their children and they can have some peace and quiet, as well as more expensive chocolate for the more refined, adolescent or adult tastes. Hershey’s would do fine with only it’s own products (Kisses, Hugs, Cookies and Cream, etc. but it wouldn’t be such a fine company without it’s diversity of flavors.
There’s the traditional Hershey’s slightly sour milk chocolate, along with the wonderful peanut butter treats from Reese’s company, and Peter Paul’s coconut candy (Mounds and Almond Joy). The list goes on and on, including Heath, for those with a craving for English toffee, Jolly Rancher, for a sweet, fruity taste, and the classic York Peppermint Patties, for an excellent after-dinner mint. These have been purchased by the Hershey’s corporation, and make up the wonderfully diverse candy company. Even if you’re allergic to nuts or peanuts, there are still many things you can eat from the Hershey’s candy Company.
Next to it’s chief rival, Mars, it is most definitely tied for the top of the chocolate and candy industry. It has more companies, and therefore more diversity than Mars, but what little companies Mars has, they are all well-known and well-liked. Because of that, Hershey’s and Mars have been neck-and-neck since the 1970s. Hershey’s has a rather large income. I will relate it in comparison of 2002’s income as opposed to 2001’s. In 2002, $4,120,317 was made, and n 2001, $4,137,217. After expenses like tax, money made in 2002 was $403. 528, and in 2001 was $207,156.
So, even if one year more money was made, after tax and other expenses, it could end up much less. In other words, money made is unpredictable.
Critical thinking questions
1. What critical decisions were made in this company’s infancy that kept it alive? When this company didn’t even exist, Mr. Milton Hershey made a wise decision by selling his current company- the Lancaster Caramel Company- for $1,000,000 (which was quite a lot back then), but keeping the chocolate aking equipment and the rights to make it. That was when he started up this company. If he had not been so smart as to keep the rights and equipment, Hershey’s as we know it would not exist, and Mars would rule the chocolate industry.
2. How does this compny ensure success in an ever changing economic market? Hershey’s ensures success by making their workers like them. They have different kinds of employee development programs, and focus much attention on them. Instead of forcing employees to work, go through the rat race, go to work that is utterly boring and hard each and evey day, Hershey’s makes their employees want to work hard and reach new heights. This is a valuable thing to Hershey’s, and it is something that many companies don’t have.
3. What companies are its competitors and how does it distinguish itself? Hershey’s main competitor is Mars company, as they are tied neck-and- neck. Not far behind, though, are Nestle and Nabisco, and if the two in the lead aren’t careful, the others might take the lead instead. What is truly unusual about Hershey’s, setting it apart from the others in generosity by miles, is the kissmobile. This is a huge van Hershey’s developed shaped like a giant kiss candy. It travels around the country raising money for a charity called the Children’s Miracle Network. That is how Hershey’s is different from it’s competitors.
4. What is and how does this company reach its demographic? This company’s demographic is not specifically targeting one age group. It targets all ages, using a variety of light, humorous commercials. There are some commercials that are meant to be like slapstick comedy, while others are subtle humor, and others still try to be erious, but you usually end up laughing in the end.
One example of a commercial that is semi-serious is the commercial for Hershey’s kisses with almonds, where two Hershey’s kisses are doctors’ examining a kiss with strange purple foil. This kiss turns out to be simply a regular kiss with an almond inside, and it does a little dance. When you first look at Hershey’s, you might see just a money- grabbing confectionary company. But when you look deep inside, it has a long past, and is more than meets the eye! I don’t know about you, but I know where I’m going to buy my chocolate from now on!
