COMPETITOR ANALYSIS: HERSHEY FOODS

This research develops a competitive analysis for Hershey Foods. The objective of this research is to identify the company's principal competitors and their strategies. The competitive characteristics of an industry are generally considered in the contexts of (1) the structure of competition, (2) marketing resources and skills, (3) production resources and skills, (4) financial resources, (5) managerial resources, and (6) competitive strategies (Thompson & Strickland, 1990). This research, however, is concerned only with the structure of Hershey's competition. The competitive structure of an industry is determined largely by the segmentation of the market, and the targeting of market segments. The identification of Hershey's competitors depends largely on the specific market segments in which the company operates. Hershey Foods operates in several market segments.

Because of the Hershey candy bar, Hershey Foods, aside from Coca-Cola, is the best known company in the United States (Moskowitz, Katz, & Levering, 1986). In the 1990s, Hershey markets candy under brand names other than Hershey Reese's, Krakel, Kit Kat, Mr. Goodbar, After Eight, Rolo, Skor, and Symphony, to name but a few. The company also markets cooking chocolate, prepared puddings, ice cream, and pasta products. Hershey's pasta products are marketed under the brand names San Giorgio, Delmonico, Skinner, and Procino-Rossi, or P&R (Dagnolin, 1990). This research is con

level, and (4) minimal chocolate content/premium quality level. Within each of these four market segments, size segmentation is considered where appropriate. High Chocolate Content/Standard Quality Level The high chocolate content/standard quality level segment is the largest single segment in the candy bar market. All five size segmentations are found in the high chocolate content/standard quality level segment. Hershey markets products in each size segmentation of the high chocolate content/standard quality level segment. Hershey's primary competitor in this market segment is Mars. Mars is the market leader in the candy bar market in the United States (Moskowitz, Katz, & Levering, 1986). Mars passed Hershey in the market share standings in the 1970s (Moskowitz, Katz, & Levering, 1986). The Mars strategy is to provide chocolate candy confections, as opposed to the Hershey strategy of, for the most part, making small additions to what is basically a milk chocolate bar. Mars' Snickers is the market leader in this segment. Hershey's chocolate bar with almonds is number two in this segment. Mars' Three Musketeers and Hershey's milk chocolate bar are three and four, respectively. Mars' Milky Way is fifth in the segment,