Presentation on a potential marketing plan for the Hershey brand Ice Breakers for their product Cool Blast Chews. Creative mockups courtesy of Alice Shy
4. History
• Founded by Milton S. Hershey in 1894 in PA
• Started out a private company and transformed
into a public entity
– 1927: $61.50/350,000 shares Now: $87.14/922,500 Shares
• Current leader of quality chocolate, non-
chocolate products, confectionary products and
chocolate related grocery items in North America
• Top manufacturer in the gum and mint markets
5. Social Responsibility
“Company’s commitment to their consumers,
community and children, by providing high-
quality HERSHEY’S products while conducting
our business in a socially responsible and
environmentally sustainable manner.”
6. Distribution Outlets
• Mass Merchandisers: 41%
• Convenience stores: 23%
• Supermarkets: 19%
• Drug Stores: 13%
• Wholesale Clubs: 2%
• Dollar Stores: 2%
• Specialty Channels: <1%
7. Industrial Analysis and Demand for
Confectionary Products
• Confectionary marketplace
– Currently $33.6 billion
– Anticipated to increase to $39.6 billion in 5
years
– Gum sales expected to continue to decline by
11% over the next 5 years
8. Industrial Analysis and Demand for
Confectionary Products
• Hershey’s manufactures products from many
different categories
-Chocolate candy -Baking and Pastry
-Sugar Confectionary -Snacks
-Gum and mints
• 1915: original attempt to enter gum and mint
market without much success.
• 2000: attempted to enter market once again
after acquisition of Ice Breakers (Nabisco)
9. Current Targeted Demographic
• 18-24 year old millennials
• Ethnically diverse singles and young couples
that socialize frequently
• Concern with peer perceptions and opinions
– Social media
10. Consumers
• Increased enrollment in Colleges and
Universities
– Increased from $16.6 million in 2002 to $20.6
million in 2012 (24%)
– Diversity has increased dramatically as well
– Implication: Americans are becoming more
educated and knowledgeable
11.
12. Environmental
• Committed to sustainability since it was
founded in 1894
– Ensure a quality life for future generations
• 11 of Hershey’s facilities in North America
have completely eliminated all waste sent to
landfills
• 2014: numerous payments to ensure
cooperation with environmental laws and
regulations
13. Environmental
• Works with:
– World Cocoa Foundation
– Cocoa Initiative Foundation
– Roundtable on Sustainable oil
• Assist suppliers of Hershey’s ingredients to
increase efficiency of production, to help
decrease supplier’s cost of production as well
as their impact on the environment
14. Economic
• Supply of Sugar and Cocoa Beans
• Price of the goods Increases
• Price of Production Increases
15. Technology
• Uses technology throughout entire company
• Partnered with AXS
– Helps create more innovative products
– Improve upon existing products
16. Health Factors
• Current trend
– Increased awareness of food nutrition
– increased consciousness
• Implications for expendable products
– Need to be functional or unique
– Gum market 2015-2019:
• Sugar-free
• Functional
– Mint market 2015-2019:
• Power mints
17. Interest Level
• Gum Industry
– Sales currently on the decline
• social acceptability
• Perception of mints as a healthier option
• Mint Industry
– Took advantage of this perception which increased
competitive advantage
• Markets must be innovative with their products
and packaging in order to stay competitive
18. Secondary Data Results
• Preserve Hershey’s Cool Blast product
• Functional
• Power Product
• Competitor in both gum and mint markets
19.
20. Strengths Weaknesses
-Trusted Brand
-Quick Breath Freshener
-Social Cultural
-Expand Target Market
-Play in both Gum and mint market
-Social Media
Opportunities Threats
-Unclear Product category
-Expensive Product
-Poor Distribution
-Bulky Packaging
-Established Competitors
-Declining Gum sales
21. Strengths
• Trusted Brand
– Ice Breaker’s is an established brand in the gum and
mints market.
– Ice Breakers has many years of experience in breath
freshening products.
• Product Features
– Ice Breakers Cool Blast gives the user minty fresh
breath in seconds.
– The instantaneous result is positive feature especially
for the target market
22. Weaknesses
• Unclear Product Category
– The identity of the product is unknown.
• Expensive Product
– The tends to be on the higher end for prices
when compared to its competitors.
23. Weaknesses
• Poor Distribution
– Ice Breakers needs to have product available
across many different retail channels
• Bulky Packaging
– Packaging redesign could take place to slim down
the pack.
24. Opportunities
• Social Culture
– People are more and more social and are often
constantly interacting people
• Expanding Target Market
– Including individuals who are twenty-eight years
of age or younger offers the chance to reach
young professionals.
25. Opportunities
• Playing in both the gum and mint markets
– The product could be for anyone wanting fresh
breath, attracting both gum and mint consumers
• Social Media
– Ice Breakers has room to expand their presence
on social media in order to reach the target
market.
26. Threats
• Established Competitors
– companies such as Wrigley Gum, which has many well
established products on the market.
– Ice Breaker’s Cool Blast need to differentiate itself from others
in the market in order stand out among the competition.
• Declining Gum Sales
– Ice Breakers Cool Blasts if the product in identified as a gum.
The brand may come into trouble driving consumers to
purchase if overall demand for gum products continues to
decline.
27. SWOT
The result for the SWOT analysis provide a
direction for choosing Hershey’s target market,
objectives and positioning for Ice Breakers Cool
Blast.
28.
29. Marketing Research: Objectives
• Primary Research for this case was conducted to better
gauge and define target markets, consumer
preferences and attitudes, set objectives, determine
positioning, and to gain further insight in order to
make Ice Breakers Cool Blasts more competitive within
the confectionary product market
• Target Market: 18-28 year olds
• Methods: In Person Taste-Tests, Follow-up Interviews,
and an Online Survey
30. Basic Findings
• Concerns for the state of one’s breath is a
primary concern before and during social and
intimate interactions within peer groups.
• A large portion of consumers in the defined
target market lead an active lifestyle, and are
often on-the-go.
• Consumer perception on taste and product
effectiveness as it pertains to a breath freshener
is extremely significant in guiding purchasing
habits.
31. Taste-Tests and In-Person Interviews:
Findings
• When given a choice of flavor to choose from to
sample, either Peppermint or Spearmint, almost
twice as many participants selected Spearmint.
• The majority of participants indicated that they
would use Cool Blasts either before or during a
social interaction with others as a way to ensure
fresh smelling breath.
• After sampling Cool Blasts, 59.375% of
participants would identify this product as a mint,
6.25% as gum, and 34.375% could not decide on
a label, placing it into an “other” category.
32. Online Survey
• Approximately 56.5% of those surveyed in the targeted
market use a breath freshener at least once a week.
• 31% of respondents surveyed indicated having used an
Ice Breakers product within the last month to freshen
their breath.
• When asked to rate their preference towards gum or
mint consumption, respondents tended to choose
gum, with over 40.3% strongly preferring gum, and a
cumulative percentage of 64.5% gravitating towards
gum over mints for breath freshening utility.
33. Survey Continued
• 62.9% of respondents indicated a strong proclivity
towards being conscious about how their breath
smelled, and of that percentage, 40.3% use a breath
freshening product at least once a week.
• In regards to socialization and quality of breath, a
significant portion of respondents indicated that
concerns about breadth quality became more
prevalent before or during social interaction
34. Breadth Quality Concerns as it pertains
to Interpersonal Relationships
• 69.4% ranked “Before going on a date” as
being one of their top three concerns for
breath quality
• 59.7% ranked both, “During a Date” and
“Before or Immediately preceding physical
intimacy” as one of their top three priorities
where breath is a concern.
35.
36. Target Market
• 18-28 year olds
• Highly social segment
• Social events
• Social media
37. Positioning Statement
”To 18-28 year old socially oriented people, Cool
Blast Chews is the brand of power-mint that is
longer lasting confidence booster due to its
chewable texture catalyze a long-lasting intense
flavor”
38.
39. Dare2BeCool Campaign
• The goal of this
campaign is to:
1. push the product’s
positioning
2. Increase awareness
surrounding product.
3. To entice target market
to try product.
4. Increase product sales.
42. Phase 1: Awareness
• Objective: Ice Breakers will leverage digital platforms
to viralize the message and attention to the brand
• How: Increase online presence
• Description: Awareness will be increase through the
use of these media outlets.
– Social Media
– Video Advertising
– Music Streaming
– Online Music Streaming
– Online Dating
– Partnerships
43. Social Media
• Objective: To heighten Ice Breaker’s Social
Media presence to reach target demographic.
• Metrics: Likes, Shares, Retweets,
• Description:
– Each post will be designed to a particular social
media platform.
– Post will show the emotional and practical uses of
the product.
48. Video Advertisements
• Objectives: Generate awareness around Ice
Breakers Cool Blast and help establish the
brand for individuals with social lifestyles.
• Metric: Ad Recall
• Description:
– Hulu Ad Picker
– Hulu show sponsor
– Youtube Ad
52. Music Streaming Services
• Objectives: Strengthen the consumer-brand
relationship
• Metrics: Click Through Rates, Ad Recall
• Description:
– Ads on this platform will consist of:
• Banner ads
• Sponsored playlist
54. Online Dating
• Objectives: Generate awareness with
individuals in target market seeking romantic
relationships while also solidifying the
positioning as a confidence catalyzer.
• Metrics: Ad Recall, Click Through Rates
• Description:
– Banner ads
– Tinder Ads
57. Partnerships
• Times Square New Year’s Eve Event
– Benefit: Connect brand with individuals who lead
socially-oriented lifestyles.
– Metrics: Number of attendees, number of “at-
home” viewers, and amount of merchandise sold
58.
59. Chegg
• Objective: Drive in-store sales with Ice Breaker’s latest
product
• Metrics: Number of samples distributed
• Will help reach over 15 million students
• Will join other brands who participate; Red bull, Tide,
& Dr. Pepper
• By sampling through Chegg, Ice Breakers will reach
target market in dorms and housing, creating hands on
experience with the product
• A pack of each flavor & 10% off coupon for next
purchase on the product
61. College Ambassadors
• Objective: Increase awareness on college campuses & drive in-
store sales through product samples, brand sponsored events and
social media.
• Metrics: Samples Distributed, Event Attendance, Likes, Retweets,
Shares
• “Cool guys” or “Cool Blaster”- 629 colleges- 3 ambassadors per
college
• Reach of 6 million students in target market
• each brand ambassador receives a $400 cash compensation
package per semester in addition to internship & marketing
experience & swag
• Distribute products & post pictures on social media
• Purpose: peer to peer marketing creates higher results in likelihood
to buy & loyalty
64. In-Store Product Placement
• Objectives: To heighten visibility in stores & to
capture sales at point of purchase
• Metric: Discuss product placement with desired
retail channels
• Distribution increased in grocery stores, discount
retail stores, drug stores, and convenient stores
• Familiar with target demographic
• Placed in check-out aisles to leverage impulse
purchasing
65. Coupons and Discounts
• Objectives: Drive in-store sales through
promotional pricing.
• Metrics:Coupon Redemption
• Promotional pricing will incentivize consumers to
try the product
• Distributed through social media
– Scan with their phone via social media
• Placed on packages for repurchase of product or
a multiple quantity buy
67. Sampling
• Objectives: Drive in-stores sales by introducing
customers to Ice Breakers Newest product.
• Metrics: Number of samples distributed
• Samples can be paired with other products
– Paired with Hershey’s chocolate
• Established product’s brand recognition is
leveraged with limited risk of buying Cool Blasts
69. Financial Analysis
• The execution of the IMC campaign is designed
around a 12-month timeline, with a total financial
budget of US$10,000,000 Of this allocated
amount, $550,000 will be used towards social
media campaigns, $1,000,000 will be budgeted
for digital media, $3,000,000 will be spent on
events, $4,950,000 will be spent on promotional
and awareness campaigns, and a residual
$500,000 will be set aside to be used as a
contingency fund (Exhibit 4.1).
70.
71. Forecast
• Based on data provided by Nielsen in the case
brief, ceteris paribus, Hershey’s is projected to
sell approximately $35,600,000 of Cool Blasts
Chews in its first year on the market.
Additionally, as trends predict that the
confectionary segment is projected to grow
18% over the next 6 years, Hershey’s can
conservatively predict a reasonable increase in
revenue for its Cool Blasts Chews product,
ceteris paribus, by a margin of 3% per year.
72. Sales Forecast
• When utilizing the data we have researched,
as well as current sales and overall market
forecasts, we predict that by implementing
the IMC as aforementioned, reaching over 10
million pre-existing and potential new
consumers in the targeted market, sales of
Cool Blasts Chews will reach approximately
$42,000,000 in the first year of marketing
implementation, representing a sales lift of
about 18%.