BUSI 520 Positioning, Competition and Branding.pdf

Running head: POSITIONING, COMPETITION AND BRANDING 1

Positioning, Competition and Branding

Denyse Miskin

Liberty University

Busi 520 Strategic Marketing Management

Dr. Keith Bowery

February 16, 2020

POSITIONING, COMPETITION AND BRANDING 2

Positioning, Competition and Branding

Product/Service Positioning in the Market

Segmentation, targeting and positioning are how strategic marketing is built. A company

process marketers use to determine how to best communicate their products’ attributes to the

targeted consumer based on carefully crafted key messages, customer needs, competitive

pressures, and available communication. Well placed product positioning ensures that the

marketing message is heard by the target consumers and compel them to act (Iyer, Davari,

Zolfagharian, & Paswan, 2019).

“Positioning is the act of designing a company’s offering and image to occupy a

future. Additionally, marketers must define and communicate similarities and differences

between their brand and the brand of their competitors (Kotler & Keller, 2016).

Based on the Hershey Company's analysis, targeting grownups, between ages 25 and 35,

instead of children in their Hershey Kisses campaigns is the way of the future. The Hershey

Company believes their marketing should be targeted toward these adults who have children,

especially mothers who determine the early tastes of their children, thus influencing them to

consume Hershey Kisses (Kizil, Eddy, Clary, & Crowell, 2013). The Hershey Kiss is known as

the portable candy that is healthy and only 21 calories each.

POSITIONING, COMPETITION AND BRANDING 3

Positioning Statement

Identifying a targeted group of customers is the first step in developing a brand

positioning statement. The positioning statement explains why the brand should be chosen over

only chocolate Kiss in the United States, that is low in price, convenient to carry, and uniquely

connected with feelings of love and the classic American Dream. This positioning statement

considers all of Hershey Kisses positive attributes in one statement. The Hershey Kiss is a

recognizable candy in the United States. It is known for its chocolaty goodness and known for

its feelings of love.

Hershey Kisses in the Market

(PODs) are attributes or benefits that consumers strongly associate with a brand, positively

evaluate, and believe they could not find to the same extent with a competitive brand” (Kotler &

Keller, 2016, p. 278). Points-of-difference can be based on any type of attribute of benefits.

Hershey Kisses have several points-of-differences, they are considered an “American” image, a

nostalgic, heritage brand, low in price which enables daily consumption, they are sold in multiple

types of retailers, and identifiable as Hershey Kisses (Hershey's, n.d.). Points-of-parity (POPs)

“are attribute of benefit associations that are not necessarily unique to the brand but may in fact

be shared with other brands” (Kotler & Keller, 2016, p. 279). Points-of-parity for the Hershey

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Kisses are, used for snacking or banking, sweet and indulgent, consistent quality, associated with

holidays, enjoyed by people of all ages, and variety of types (Hershey's, n.d.).

(Kotler & Keller, 2016). Additionally, a brand can have a positive or negative brand equity

depending upon how the consumer reacts to the brand. Brand equity ultimately resides in the

mind of the consumer, and is “shaped through product design, advertising, distribution, and all

other ways an organization touches the buyer. Without equity, a brand is a product with a

meaningless name attached to it” (Tybout, Sternthal, & Kolter, 2012, p. 115).

For the Hershey Kisses many elements encompass their brand equity, and many of these

memorable, and most consumers know of the name, the name is meaningful and is synonymous

with chocolate. Additionally, you have the kiss shape candy that is one-of-a-kind, memorable,

meaningful, and appealing to chocolate lovers. There is also the Hershey Kiss logo and the

fancy candy foil wrapper that are recognizable to those around the United States, and possibly

the world, and reminds consumers of the Hershey Kiss (Hershey's, n.d.).

A brand promise is a statement made by an organization that states to the consumer what

they can expect from a brand or a service, and a vision of what the company can do for the

POSITIONING, COMPETITION AND BRANDING 5

consumer. The brand promise is thought to be the most important aspect of any brand and

companies spend a lot of time and resources developing and marketing their brand promise

(Kotler & Keller, 2016).

always focused on doing well by doing good. Because bringing goodness to the world is in our

character” (Hershey's, n.d., p. Sustainability). This has been the Hershey Company’s promise

for over 125 years, when the founder, Milton Hershey, who was a driven entrepreneur linked the

success of his company to supporting children. In 1909, Mr. Hershey and his wife Catherine,

founded the school for orphaned children.

To this day the school still exists and the profits from the Hershey Company help fund the

Market Classification

The market is occupied by several different types of classifications. There is the market

leader, the market challenger, the market follower, and the market nichers. Market leaders carry

40% of the market, while the market challenger carries 30% of the market, the market follower

carries 20% of the market and holding the last 10% are the market nichers (Kotler & Keller,

2016).

There are two different markets that the Hershey Company measures their products

performance, the North America market and the global market. As of 2018, according to the

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Hershey Company’s website, they are the leading chocolate manufacture in North America,

holding 43% of the target market share (Hershey's, n.d.). As the leader in North America, the

Hershey Company’s strengths are its ability to continue to offer a wholesome product to its

manufacturing and marketing of new products. Their annual report from 2018 details part of their

marketing strategy, “We utilize a variety of promotional programs directed towards our

customers, as well as advertising and promotional programs for consumers of our products, to

stimulate sales of certain products at various times throughout the year” (Hershey's, n.d.,

Hershey Facts page 47). In North America, the Hershey Company’s biggest competitor is Mars

Wrigley Confectionery Company, which has about a 30% market share (Cannivet, 2019).

the need to continue growing and expanding globally is vast. The top chocolate producer in the

global market is Mars Wrigley Confectionery with about $18 million in sales for 2019 (14.4% of

the market) compared to the Hershey Company’s almost $8 million in sales (Lindell, n.d.). The

Hershey Company has a great plan for expanding its services and products in the international

markets like Brazil, Mexico, and China while simultaneously gaining a solid competitive

advantage in the Canadian market (Velasquez, 2019). Globally the Mars Wrigley Confectionery

company is successful because their brands are loved for similar reasons as the Hershey

POSITIONING, COMPETITION AND BRANDING 7

Company’s products. Mars Wrigley Confectionery brands are loved for their quality, great taste

and value ("Mars wrigley," 2019, March 11).

stage and the declining stage. Each stage represents a different period in the life of a product.

The introduction represents the initial period when a product is first introduced to the market,

costs are normally high, and profits are usually low. In the next stage, the growth stage is when

the product has gained market acceptance, the product is starting to take off and cash flow is

improving. The maturity stage is a natural slow down in sales growth and the product has

reached its peak in the market. The final stage is the declining stage where the product is out of

the Hershey Company has created and sells. The Hershey Kiss is a product that the public trusts

and is most accepted by most of its potential consumers. Profits for the Hershey Kiss could level

off in today’s market due to competition if the Hershey Company did nothing to re-create or

properly promote the Hershey Kiss.

To continue to have Hershey Kisses as a top product chosen by consumers, the Hershey

Company needs to continue studying and innovating Hershey Kisses. Currently, the Hershey

Company continues to grow the Hershey Kisses market by finding new target audiences and

POSITIONING, COMPETITION AND BRANDING 8

finding new ways to implement the Hershey Kisses to connect with the consumers who will

surely stay eternally connected.

The international market however is a market that the Hershey Company is still migrating

time.

Product Classification

A consumer product is a product purchased for personal consumption by a consumer.

Consumer products are broken down into four different types. The four different types are

convenience, shopping, specialty, and unsought products. Of the four types of products, the

convenience product is purchased more frequently, purchased immediately and without great

characteristics or brand identification for which a significant group of consumers are willing to

make special purchase effort. The specialty product requires a special purchase effort but applies

only to certain customers. The last type of consumer products is the unsought products, which

are those consumer products that a consumer either does not know about or does not consider

buying under normal circumstances (Kotler & Keller, 2016).

The Hershey Kisses can be classified as either a convenience type of consumer product.

Hershey Kisses are convenience products because they available for immediate purchasing in

most convenience stores and can be purchased with minimal effort. A buyer can routinely

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purchase a Hershey’s Kiss in many places other than convenience stores; the Hershey Kiss can

be purchased in grocery stores, at the bowling alley or at Hershey Chocolate World. Convenient

for consumers all around.