Hershey: Going through a Sweet Recession

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Case Details:

Case Code : MKTG222
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

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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.

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Excerpts Contd...

The Marketing Strategy Succeeds?

In August 2008, Hershey announced that it was raising the prices of its products by 10% to negate the rise in costs of inputs like nuts, cocoa, sweeteners, and energy. It stated that during 2008, within a space of a few months, the prices of commodities like cocoa and peanuts had gone up by between 20% and 45%...

Outlook

Even though Hershey expected profits to rise in 2009, due to high commodity prices and increase in promotion expenses, the company did not expect to meet its profit growth objective of 6-8%. Further, the price increase of August 2008 was expected to adversely affect sales volumes by 2-3% in 2009...

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Exhibits

Exhibit I: Hershey's Products
Exhibit II: US and World Market Shares of Various Firms in the Retail Confectionary Market * (2005)
Exhibit III: Hershey's Sales and Net Income (2001-2007)
Exhibit IV: Hershey's Dark Chocolate Range
Exhibit V: Products Under Cocoa Reserve
Exhibit VI: Hershey's Share Prices (2005-2009)
Exhibit VII: Hershey' S Quarterly Financial Results (2008)

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