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 HersheyùReese'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 concerned with Hershey's consumer candy bar products.
Segmentation in the Candy Bar Market
The candy bar market is segmented in a number of ways. First, there is the division of the market between chocolate candy bars, and candy bars in which chocolate is either absent or is not a principal ingredient. Hershey Foods participates in each of these market segments Second, the candy bar market is segmented according to the size of the bar. Mini bars, standard-size bars, king-size, and giant siz...