Classic but boring?
Hershey is the classic bar that everyone loves and adores. This timeless bar you relish today is presumably the same one you enjoyed as a kid. In fact, the recipe is still quite similar now to what it was 20 years ago. However, is there anything more they can do to differentiate themselves in the market?
The Hershey formula has not changed much along the years and many enjoy this reliable consistency that isn't too bold to the palate. However, chocolate as we all know it is an arena that allows for lots of innovative and imaginative creativity. Although chocolate lovers choose Hershey, are there any other ways that make it stand out in the market? The issue is that there is little differentiation and in terms of long-term growth this won't permit a holding when entering a new market. In fact, chocolate lover's perception of Hershey's differentiation from other brands was not that strong, with 74% commenting that it was the same or only slightly different than competitors.
Hershey should look more into expanding their brand into different opportunities. They have already extended beyond the chocolate segment with areas like cakes and ice cream. However, these extensions are pretty safe options since Hershey is staying with an industry that they are completely skilled in.
In a very crowded market where differentiation is difficult, Hershey still stands strong due to its strong sales and comparatively low advertising relative to competitors. Hershey is obliged to keep up its strengths to leverage amongst competitors, but it should look more into more opportunities to make them a bit more diversified in the market. Otherwise, how much longer can we refer to Hershey's as 'The Great American Chocolate Bar'?
Cited Sources:
The Hershey Company - UBC Blogs. (n.d.). http://blogs.ubc.ca/carolynbeaumontportfolio/files/2012/08/Brand-Audit-The-Hershey-Company-Final.pdf
Pizzaguy2002. (2012, August 18). Hershey's Chocolate candy bar commercial 1980. https://www.youtube.com/watch?v=u2qex2cLj_M