1. By: Regina DiTomassi, Cason Kirkpatrick, Brianna Peoples Market Research: What We Believe

2. Preferences for Chocolate o Consumer Preferences Lower fat and calories Gluten-free Sugar-free Additives (ex: probiotics helps with healthy digestion) High Flavonol content (a subgroup of flavonoids that occur in varying levels and offer health benefits like reduced risk of cardiovascular diseases, cancer and stroke) Refined sugar alternatives (ex: stevia – has around 300 times the sweetness of sugar, and is ridiculously low in carbohydrates) Dark chocolate (healthier benefits) o What Providers Think Consumers Want Gluten-free (16.9%) * Organic (11.4%) No Preservatives (9.8%) No Artificial Color (9.8%) Natural (8.8%) Non-GMO (7.9%) * High-Protein (6.8%) * High-Fiber (6.7%) Vegan (5.2%) * Low Fat (3.9%) Dairy-Free (3.1%) Low Calories (3.0%) Lactose Free (2.6%) Low Sodium (1.3%) *- means those with the highest slope/increase

3. o Premium Chocolate 1. Ghiradelli Chocolate – Lindt 2. Godiva Chocolate – Yildiz Holding 3. Dove Milk Chocolate – Mars 4. Lindt Chocolate - Lindt o Chocolate 1. Hershey’s Kisses Chocolate Candy – Hershey 2. Reese’s Peanut Butter Cups Chocolate Candy – Hershey 3. M&M’s Milk Chocolate Candy - Mars 4. Hershey’s Milk Chocolate Candy Bars – Hershey 5. M&M’s Peanut Chocolate Candy – Mars 6. Snickers Chocolate Candy – Mars 7. Kit Kat Chocolate Candy – Hershey Current Product Standings o Candy 1.Reese’s Pieces Candy – Hershey 2.Life Savers Candy – Mars/Wrigley 3.Skittles – Mars/Wrigley 4.Jolly Rancher Candy – Hershey 5.Tootsie Pops – Tootsie Roll 6.Starburst Candy – Mars/Wrigley 7.Jelly Belly Candy – Jelly Belly 8.Twizzlers Candy – Hershey 9.Laffy Taffy Candy – Nestlé

4.  Acquired KRAVE Jerky on January 29th 2015 “KRAVE” is pre existing company Allows Hershey to enter into rapidly growing meat snacks market and expand further into snacks category Hershey’s News

5. Survey (Demographics)

6. Survey Continued 1 being most frequently

7. Survey Continued

9. What We Should Do Based on Hershey's current standing among the rankings of other chocolate competitors, Were #1! Very good for sales and marketing We should continue our route and improve some basics

10.  All Hershey’s labels should include “Gluten free, Organic, and Lactose free” Based on what providers think consumers want and consumer preferences *According to specific products and ingredients  Gluten-free (16.9%) - current trend  Organic (11.4%) - current trend  Lactose Free (2.6%) - for those who think “Milk Chocolate” include lactose  Simplify the labels Analysis of Preferences

11.  Increases costs to reformat and change labels Cons  More awareness of benefits  Easy to quickly read benefits  Strikes some non-Hershey audience attention Pros Re-Labeling

12. AfterBefore

13.  Increase organic awareness  Increase advertising of these new products related to Hershey + the benefits of each (Gluten Free, Lactose Free, Organic, Low Fat)  Such as: Brookside chocolate covered fruits (Under the “organic, low fat categories”) Krave Beef Jerky Recent purchase by Hershey  Campaigns: Social media Website design Commercials What We Should Do

14.  YouTube lacking  Facebook and Twitter at competitive capacity  Produce more posts on what is actually in the products  Interview/show organic farms with milk  Show trips to coco harvesting plants  Display manufacturing in non-GMO plant Increase Social Media

15. “The Best Just Got Better” The Hershey Corporation Better for you, that is, with Non-GMO production facilities, no artificial flavors, non-hormonal milk, gluten free ingredients, and much more. All without sacrificing that great taste of Hershey's chocolate. Campaign

16.  Huge advertising market to reach  Difficulty with certain social media platforms  Eliminates campaigns to come of the older demographic that lack the use of technology Cons  Demographic differentiation with younger users among social media  Sharing of media by consumers acts as WOM advertising  Modernizes Hershey's design without taking away the Hershey's great name  Much cheaper form of media than TV ads and billboards  Tailored to specific holidays Pros New Campaign

17. Kowitt, Beth. "Special Report: The War on Big Food." Fortune. Fortune, 21 May 2015. Web. 11 Nov. 2015. Reuters. "'Healthier' Chocolates Becoming More Popular." NY Daily News. NYDailyNews.com, 4 June 2013. Web. 05 Dec. 2015. "The Hershey Co." LexisNexis. LexisNexis® Corporate Affiliations™, 30 Nov. 2015. Web. 06 Dec. 2015. "The Hershey Company Candy Brands." The Hershey Company. The Hershey Company, n.d. Web. 05 Dec. 2015.. "The Hershey Company to Acquire KRAVE Jerky: A Leading All-Natural, Gourmet Snacks Brand." The Hershey Company. The Hershey Company, 29 Jan. 2015. Web. 05 Dec. 2015. "U.S. Market Share of Chocolate Companies, 2015 | Statistic." Statista. Statista, 2015. Web. 05 Dec. 2015. Works Cited

18. Thank you for listening. Please feel free to ask any questions or contact us for more information. The End