Running Head: Unit 6 Assignment 1
Brand Extension Market Plan – Unit 6 Hershey’s Sugar – Free Strawberry Syrup with Calcium Kaplan University GB530: Marketing Management Professor: Dr. Michael Mulnix December 27, 2013
Unit 6 Assignment
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The sales volume is estimated to be 60,000 units in the first year. The fixed costs are estimated to be $32,442 for the year. Using the contribution margin method, the break-even will be reached, when our sales reach 47,476 units which will result in $166,166 in dollars during the third quarter of our first year. The keys to Hershey’s success will lead to our product being profitable if we keep our strategic decisions clear and concise, have support from our top management team, have a product with great quality, have great customer service, and are fully aware of the nature of our market. Our needs of our consumers will be met by designing and producing light, sugar-free, and sugar-free with calcium products that our health conscious consumers are looking for.
2.0 SITUATION ANALYSIS
The Hershey Company is manufacturing its third product in our line of sugar-free syrups, which is sugar-free strawberry syrup with calcium. Their other products are
Unit 6 Assignment 4 doing very well. Marketing will be our key to the development of this product. There should not be any issues with the product entering the marketplace based on the company’s consumer base.
Results of surveys that were conducted show that the new product should perform very well.
2.1 MARKET SUMMARY
The Hershey Company has been in business since
PetSmart is one of the largest specialty pet retailers of service and solutions for the lifetime of pets. More than 1008 stores are open in the United States and Canada that provide pet foods and supplies that are priced reasonably. PetSmart provides all types of services for pets including pet training, pet grooming, pet boarding and adoption services. In addition to providing impressive value PetSmart has the broadest, deepest product range in the industry, including thousands of products exclusive only to PetSmart. Every year PetSmart takes care of the grooming for hundreds of thousands of pets in what PetSmart calls its PetSmart Salons. These animals are groomed and pampered by stylist who have
Hershey’s began as a single building, creating chocolate, but soon transformed to thousands of companies around the world. “A founder of one of the world’s largest confectionery companies … He [Milton] was a pioneer in the mass production of milk chocolate, turning it to form an expensive luxury into an affordable, everyday treat” (McMahon). Money was not a factor involved with this creation of greatness but much more the quality given to his customers. Even though the quality was a luxury he felt compelled to allow everyone to experience the flavor. Bringing the cost of chocolate down made many more people able to buy the product. “Milton Hershey was a man who measured success not in dollars, but in terms of a good product to pass on the public, and still more in the usefulness of those dollars for the benefit of his fellow man” (Milton S.). Along with the products growth in cost reduction, the company’s development grew as well. More people were buying the product all over the country so that called for an expansion of the industry. Hershey’s creation is what launched the chocolate industry that continues to expand today. The increase in consumers caused growth around the world therefore adding to Hershey’s
In many businesses, marketing needs to be a core concern, and often the overriding concern when it comes to running a successful business.
As of 2008, Hershey Company still appears to be providing strong investor returns. Although its profit margin has decreased, its gross profit rate has remained steady, indicating that the Company is still effectively
$1.6 billion / 466 thousand tpy = $3,433 (cost of capital per ton of capacity)
The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP) collectively hold about 70% of the US market which can making very hard for new entry to succeed in this industry. However, the decline in CSDs consumption has opened a great market for non-carbonated and health conscious drinks. So, LaMarquise intends to take advantage of this opportunity to develop its market of flavored syrups and fruits concentrate juices, also to note that there are very few competitors when it comes to flavored syrups in the U.S. The products are great refreshing drinks for adults and children and contain no preservatives or harmful chemicals. Furthermore, our marketing plans and strategies will offer an opportunity to succeed in this competitive market.
• Reliable delivery of products and services • Consistent experience across channels and platforms • Easy and simple to do business with • Single and insightful view of information • Flexible and responsive to requests
Milton S. Hershey founded the Hershey Company as Hershey Chocolate Company in 1894 by opening a candy store in Lancaster, Pennsylvania. They manufacture food products, specifically chocolate and other sugary things. It is one of the best known makers of chocolate candy in our era and looks like it will continue to be for some time after that. So, to evaluate this company, the triple bottom line standard will be used- social, environmental, and financial.
Milton Hershey was very motivated, even though all his previous shops had closed and gone broke, he didn’t want to give up and wanted to start a sweet company that made people in the US happy. When his caramel company started, The sales went up and Hersheys motivation paid off. Another one of Hershey’s personal traits was creativity. He wanted to start up something new, to make people around the world happier and introduce new things. An example of this was the original milk chocolate Hershey bar, it had never been made before in the US and was different to the chocolate bars made in Europe.
* Production capacity is 10,000 units a year however they hope to construct a $45 million facility with a capacity of
The year 2003 was a turning point for the Kit Kat bar as well as the confectionery industry in general. The popularity of low carb diets and the push to healthier eating stifled sales growth in many parts of the world. In addition, fierce competition from Cadbury 's newly formed Dairy Milk super brand
The geographic target area that I am choosing is the Houston Hispanic Market Area, San Antonio Area, Corpus Christi, and a few more highly populated Hispanic areas.
There are over 1.1 million men and woman amateur and pro bodybuilders alone in the United States. The IFBB has competitors age ranges from as young as 16 years to as old as 83 within a range categories for competition, The NutiBullet Pro is a necessary tool to assist the competitors in preparing for competitions fulfilling a need for a quick, convenient and easy way for bodybuilders to create their protein shakes, whey smoothies or one of their required 6 to 7 meals a day.
The Hershey Company, known until April 2005 as the Hershey Foods Corporation and commonly called Hershey 's, is the largest chocolate manufacturer in North America. Its headquarters are in Hershey, Pennsylvania, which is also home to Hershey 's Chocolate World. It was founded by Milton S. Hershey in 1894 as the Hershey Chocolate Company, a subsidiary of his Lancaster Caramel Company. Hershey 's products are sold in about sixty countries worldwide. In addition, Hershey is a member of the World Cocoa Foundation. The company has been topped to 384, compared with the previous rank 404, in 2013 (CNN, 2013). This paper is going to show the company’s international environment,
BRAND BUILDING 2 Assignment 1: How Brands are built Part1. Proposal Apple Incorporation Overview Apple Inc. plans, produces, and markets versatile correspondence and media gadgets, PCs, watches, and convenient advanced music players around the world. The organization likewise offers related programming, administrations, frill, organizing arrangements, and outsider advanced substance and applications (Abrahams & Norfolk, 2014). It offers iPhone, a line of cell phones that involve a telephone, music player, and Internet gadget; iPad, a line of multi-reason tablets; Mac, a line of desktop and convenient PCs; iPod, a line of versatile advanced