Hershey: Going through a Sweet Recession

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : MKTG222 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Marketing Strategy / Market Research / Advertising and Promotion
Case Length : 17 Pages
Period : 2000-2009
Pub Date : 2009
Teaching Note : Not Available
Organization : The Hershey Company
Industry : Chocolate and Confectionary
Countries : US, Global


The case describes the efforts undertaken by The Hershey Company (Hershey) to grow its business. It begins with a brief history of the over 100-year old company and then discusses the various reasons for the company's flat sales starting from the early 2000s.

Later, the case talks about the business strategy adopted by the company in 2004-05 to boost sales, which involved the introduction of new products and entry into new market segments. It then describes the restructuring initiatives undertaken by the company in 2007 in order to streamline production, and how these efforts failed to improve its financial situation.

The case ends with a discussion on Hershey's new marketing strategy, developed and adopted after extensive consumer research in 2008, which finally managed to give a fillip to sales.


Finding ways to increase sales when faced with a mature market.

Expanding into international markets.

Consumer research in formulating the marketing strategy.


  Page No.
Introduction 1
Background Note 2
The Changing Chocolate Market and Hershey's New Products 4
Restructuring of Operations and Making International Forays 6
The Marketing Initiative 8
The Marketing Strategy Succeeds? 11
Outlook 12
Exhibits 13


Hershey, Chocolate and Confectionary, Market research, Consumer research, Advertising and Promotion, Marketing strategy, International expansion, Product innovation

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