Business Foundation Assignment
In this assignment each student must choose a company from the list of companies provided (see table on next page). You will choose a country (not Australia) that your company operates in and provide relevant background information and analysis on both the company and country, and design a new product for the company to launch in that country.
You will need to provide a market description of the relevant market conditions that your company operates in. This might include variables such as the prevailing economic conditions, demand and supply factors, and a description of the industry etc. for that country. You will need to provide a referenced SWOT analysis for the company in that market, identifying the internal strengths and weaknesses and external opportunities and threats of the company for the chosen market. The goal of a SWOT analysis is to identify the critical factors that may affect your proposed business concept (or new product) and then build on your strengths to reduce your weaknesses, exploit opportunities and avoid potential threats. Students are also expected identify and describe using marketing segmenting variables, one target market being served by your company.
Students are required to use 3 types of resources in the marketing plan:
List of Companies
Social Action Plan
Each group will collaborate together to choose ONE socially-based problem in business from the list below. These issues could be applied in a local, national or global context and cover aspects of diversity, equity, social inclusion and engagement, which requires a proposal for a solution or offers an opportunity for development that will involve an aspect of social advancement. Each group is required to choose ONE issue from the following list of 5 social business issues:
As a small group**, you must be able to define the scope of the issue through inquiry/research, critically analyse the issue and arguments regarding the nature/importance of the issue; and offer solutions to the issue or a means of realising the opportunity. This assessment requires students to actively engage and work collaboratively with a diverse range of students to be able to understand the perspectives of others; therefore, small groups of 5 (groups will be formed in week 2) will be formed by self-selection (with the support of the lecturer) however, you are highly recommended to have a range of disciplines, ages, cultural and linguistic skills as the greater the diversity of your group, the broader the range of ideas that will be available to you. This assessment task provides students an opportunity for inter-cultural learning, which requires a culturally heterogeneous mix of students.
Students are required to reference at least 4 types of resources in the group social action plan report:
Individual Personal Reflection
you are required to write a personal reflection to be submitted on LMS reflecting on your experiences, thoughts and feelings of working collaboratively as a member of the group on the development of a social action plan.
This is an opportunity for you to reflect on your values and how they impact on your perspectives. Students must answer at least 2-3 questions from the questions listed below in their personal reflection?
Groups are expected to present their video campaign to the rest of the class. This needs to be done in an engaging and professional manner, and is required to be presented in a video format. The video can be recorded using any devices including smart phones.
Each group must present for 12 mins in total, including questions. Each member of the group will need to present for 2 mins and each student will receive an individual mark based on the presentation.
Students are required to attend week 12 classes to receive a grade for the video. Failing to attend without a medical/personal reason will result in receiving 0/10 for the video.
Guidelines for Campaign Video
Hershey Company Marketing Report
This marketing report outlines the marketing operations of Hershey Company. It first gives a brief history of the company, its area of operations and the products that the firm offers to the market. A brief overview of the confectionery industry and analysis of the key players in the market is outlined while giving their share of the market. The report further gives the SWOT analysis of Hershey and evaluates the strategies that the company has adopted in order to remain a key player in the industry. It also establishes the target markets of the firm and its financial overview.
Introduction and Background of the Company
The Hershey Company (HSY) is the chief producer and marketer of quality chocolate in North America. With over 80 brands selling in 70 nations, HSY is a multi-international firm and trades in chocolate, sugar confectionary and chocolate-made products. Hershey was formed in 1927 to succeed the trade-line started by Milton Hershey in 1894. It became a public limited firm in 1978. For the financial year 2014, the firm garnered net sales of $7.4 billion and made a net income of $847 (Key, 2014). It has been recording income growth of about 7% each year in the past five years. The management is projecting that the firm will make net sales of $10billion by 2017.
HSY offers a wide range of products including chocolate and sugar confectionery products like gum and mint refreshment commodities. It also offers toppings, beverages, and snacks. Some of its strong brands by the firm include Hershey, Kisses, Twizzlers and Ice Breakers.
Some of the company’s goals and objectives that are considered in its marketing strategies include:
HSY is one of the leading firms in the confectionery industry, which had an increase in growth rate of 4% between 2010 and 2014. The industry recorded overall revenue of $198.4 billion in 2014. The market is projected to continue growing and record an increase in growth of 2.7% from 2015 to 2019. In America, the chocolate confectionery sales increased by 24% from 2009 to 2014 and reached revenue of $21 billion by 2014 (Key, 2014).
The Statista recorded HSY and Mars as the largest market shareholders in the US confectionery market. HSY ha a 31.2% share of the market while Mars had 29.2%. In Canada, the leading firm was Nestle with a market share of 18.6%. HSY and Mondelez closely followed it. HSY has the highest overall market share in the production of chocolates with as share of 44.4% while Mars has 29.5% (The Hershey Company, 2014).
In the North America Market, Hershey had 85% of the total revenue of $6.4 billion in the confectionery industry. This was the highest performance that the company has ever recorded. HSY net sales increased by 4.5% during the years 2012 to 2014. It also recorded a sales growth of 2.7%, which was higher than that of the entire industry that stands at 1.8%. After the merger involving Mars and Wrigley, HSY lost some market share in America. It has however been able to regain its command and remain the leader in the sector.
HSY and Mars combined had the leading share of the market in the US confectionery market. The two had a record 60.4% of the market according to the records by Harris Interactive. This is because both HSY and Mars each have 7 brands among the 20 most famous brands in the industry. IRI recorded that Reese Peanut and HSY milk chocolate bars were among the top five most selling items in the US market. This implies that HSY brands are always among the leading brands in each segment of the industry (Key, 2014). The market has been taken by a few players courtesy of mergers and acquisitions with the leading players being Mars, Mondelez, HSY, and Nestle. These have taken the biggest share of the market.
Findings from SWOT Analysis
Following the SWOT analysis of Hershey, some issues can be established. Some of the issues have enabled the company capitalize on its strengths and use any opportunity available to boost its sales. Some of the findings from the analysis include the strategies that the company has adopted to increase its share of the market
International marketing Strategy
The firm embarked on a new international market strategy in order to boost its sales and increase its share of the market. The new marketing strategy involves building collaborations with other firms via mergers, acquisitions, and joint ventures. In order to boost the share of the market, the firm has resulted in this new strategy as a means of enhancing its share of the market. HSY acquired 49% of the market share of the market in Brazil by having a joint venture with Bauducco a key player in the field then (Key, 2014).
Holiday marketing is another strategy that HSY has employed to increase its share of the market in the industry. In this strategy, the firm mainly advertises its products in the holiday season. It creates a new theme targeting to market chocolates and candies. It also ensures that its products are on display in major stores and outlets.
New Marketing Strategy
To ensure that the HSY achieves its objectives mentioned above, it needs to adopt new marketing. The firm needs to invest more in advertisements in order to achieve its objectives. One of the methods that it should use in the advertisement is micro-marketing. Micromarketing is another strategy that has enables the firm to maintain a leading position in terms of market share in the field (Kotler & Keller, 2012). HSY has adopted the concept of micromarketing to boost sales. In this strategy, the company should advertise its products in small target groups while customizing such products to meet the demands of such groups. The aim of this strategy is to ensure that the clients get the exact products that meet their preferences and are given a chance to select products from a large assortment.
The target market for the company is North America where is makes a revenue of 85%. HSY is also determined to build its international presence. From the international field, the firm made 14.4% of its total revenues. These were higher than the previous years, which were 13.2% in 2013 and 12.5% in 2012 (Key, 2014).
New Product Description
The company has introduced the first-class product Brookside Fruit and Nut Bar as ways of attracting health-conscious consumers. The new product is innovatively designed to the extent that it is creating new demands for low-calorie and low-fat candies. This new product has enabled the company have a competitive edge over its rivals in the industry (Kerin, 2012).
Customer Value Proposition
The company value its customers’ opinions and suggestions and has resulted in producing products that directly fit the customers’ needs and preferences (Hersheycompany, 2015). The company always conducts researches to establish customer preferences and opinions concerning its products. This ensures that it meets the specific needs of its customers
Justification of Choice of New Product
The new product that the company has designed has enabled the firm to boost its sales in the sector. Most people in the current world are health-conscious which has enabled the firm to get new demands and sales from such customer. It is thus a creative idea that is enabling the firm to achieve its objectives.
The marketing report has outlined the marketing activities of Hershey Company (HSY). It has established that it is the leading firm in the confectionery industry where it has the leading sales volume as well the largest market share as well. Other issues that the report has analyzed are the SWOT analysis of the company, financial analysis including sales forecast and revenues. It has also outlined some of the strategies that the company has adopted to boost its share of the market. Some of these strategies include micro-marketing, advertisement, value deposition of its customers and innovation of new products.