The Hershey's Company

IMC Plan

Group 5:
Angellyna Bui
Jessica Cornell
Eric Galan
Taylor LaBell
Vincent Lodato
Maisa Vendrasco
Laura Wolfart

MAR 3323 9:00AM

April 16, 2015
Dr. Mao

Situation
The Hershey's Company is the leading manufacturer for quality chocolate and nonchocolate confectionery in North America and strongly increasing its presence globally. Their
vision is to be the worlds first chocolate choice, everywhere and every time. In the U.S.,
Hershey currently holds about 44% of the chocolate market share with the second highest being
roughly 30%. Global sales make up about 15% of their total sales, a number that has been
steadily increasing since 2004. With our IMC plan, we want to increase the U.S. market share by
10%, leading Hershey to acquire more than half of the U.S. chocolate market at 54%. In order
for the company to be able to increase market share in the U.S., a few major concerns need to be
addressed. Consumers today have shifted their focus to health and well-being and want products
that fit within that healthy lifestyle. The focus of the Hershey IMC plan in the U.S. market will
primarily target adult consumers between the ages of 20-50 and mothers will be targeted as our
second priority. Secondary research shows that adults eat more than 55% of all candies sold,
meaning this market is too big to be ignored. Additional research shows that mothers have a
strong influence on childrens early taste in candy, and by targeting them, the objective is to
make both the mother and the child loyal to the Hersheys brands. By targeting these two
segments, we feel that we will get an extensive amount of positive word of mouth
communication as well as a great amount of posts on social media by consumers. We believe that
our positive and unique promotions about the healthier Hershey brand will potentially lead to
both domestic and global growth for the company. In order for Hersheys U.S. sales to increase,
the company must penetrate a target segment with very high buying power and prove why they
are better than their top competitors. Our team has created an in-depth IMC plan that will show
them how to do so.

Objective
With Hershey having a 44% market share within the United States, the objective of our
integrated marketing communications strategy is to remain the market leader by repositioning
what consumers believe to be the Hershey brand image. With so many consumers picking up on
trends like healthy eating, the company would benefit from an IMC plan that communicates to
consumers that Hersheys products are not unhealthy sugar filled sweets, but rather healthy onthe-go delicious snacks. We are developing a marketing strategy that will incorporate many
different platforms such as television commercials, print advertising, social media, podcasts, and
in-store promotions. Our focus will be on strengthening brand loyalty and brand recognition in
order to increase market share. We will accomplish this by clearly differentiating Hersheys
products from major competitors, while also informing consumers of the extensive amount of
healthy and on-the-go snack options Hersheys has added to its product lines.

Budget
We will be using a percentage of sale budgeting method for our IMC campaign.
Hersheys sales for 2014 were $7,421,768,000. Our budget will reflect our forecasted sales for
2015 with a 10% increase from 2014 ((7,421,768,000* (1 + .10)) =$8,163,944,800). Our
marketing team will monitor sales and make adjustments as needed if we are not reaching our
projected forecasted goal. Hershey will be executing an aggressive campaign that will focus on
increasing consumer awareness about new products and loyalty to the brand.
In the budget we will allocate: 3% of Project 2015 sales ($8,163,944,800*.03 =$244,918,344)
1. 40% ($244,918,344*.40 =$97,967,337.60) to Product Placement and TV commercials
Strategically placed products will be place in highly rated television shows and movies to
maximize consumer exposure

 Hershey will develop commercials that spark attention. These commercials will be placed
strategically on local television channels.
2. 25% ($244,918,344*.25 =$61,229,586.00) to print ads
Ads will run in issues of Cosmo Girl, Sports Illustrated Kids, Vogue, GQ, and Parenting
magazines.
3. 15% ($244,918,344*.15 =$36,737,751.60) will be allocated to In-Store Promotions
Promotional Staff will be placed in local grocery stores, malls, and other shopping centers
offering free samples of the varieties of products.
4. 15% ($244,918,344*.15 =$36,737,751.60) will focus on podcasts
A podcast will be developed to address relevant information and draw more attention to the
Hersheys products
5. 5% ($244,918,344*.05 =$12,245,917.20) to a Social Media Campaign
Marketing Blasts will be posted on Facebook, Twitter, Instagram, and Snapchat to reach our
overall segment groups.
Using this type of budget will allow Hershey to build a financially safe marketing
strategy. The company will also have the opportunity to make adjustments as needed and tweak
numbers with the fluctuations of sales that may not reflect what was projected.

Creative Concept
Since Hersheys is already such a well-known brand, we have decided to use a slice-oflife theme to execute our message to consumers. Slice-of-life portrays a problem that consumers
may face in their daily life, and then shows how the advertisers product can resolve the problem.
Hersheys is traditionally known for its chocolate, and chocolate is known to be a comfort food.
However, as times have changed, consumers perceptions have also shifted to become more

health conscious, making them more interested in gluten-free, portion-controlled products,

reduced sugar, sugar-free, and a variety of sugar-free gums and mints. With this in mind, we feel
that we need to attract loyal adults and mothers by developing ads that are relatable to their
problems and experiences. The goal when creating the IMC slogan was to redefine delicious,
keeping it simple and straightforward, while simultaneously reflecting the value desired by
consumers in todays market. After throwing around several ideas, we took each idea and meshed
it together. We created the slogan, Hersheys, because you deserve a delicious life. We created
this slogan in hopes of attracting new health conscious customers by communicating to them that
they deserve the stress-free, happy, and healthy life that Hersheys can provide. We want
consumers to know the changes the company has undergone in order to offer a more nutritious
alternative to the classic Hersheys chocolate candy. This IMC campaign follows a persuasive
advertising objective, meaning we will build brand preference, encourage switching and change
customer perception. This type of advertising is the best choice for this specific campaign since
our goal is to change the way consumers perceive Hersheys products and persuade them to
choose Hersheys over competitors.
IMC Elements :

For the television ads and product placement in TV shows we created a commercial to
represent the feeling that Hersheys chocolate gives people. The message we are trying to convey
tells how the product can transform a boring day into a magical one, instantly. We will air the ads
on major networks in between their most popular TV shows in order to get consumers thinking
about the brand unlike they ever have in the past.
Our second largest budget is allocated to print ads. For this element of our campaign, we
will develop an ad that consists of the image on the right. The magazine prints we will add a
chocolate scent to the page, in order to appeal to as many senses as possible.
This print ad will be our attention
grabber to capture our target market and get
them thinking about Hersheys products. As we
begin to increase brand awareness through print
advertisements the goal is to get people
wondering what makes Hershey so delicious all
of the sudden. Once we have captured their
attention, the message switches its focus to
communicating the positive benefits of
Hersheys healthier product offerings such as

gluten-free, sugar-free, and kosher products. Another key component to be displayed on the print
advertisement is Hersheys Healthy Weight Commitment. As a member of this foundation,
Hersheys is committed to reducing childhood obesity through programs that support families
and schools.
In store promotions account for 15% of the overall budget for the campaign. These instore promotions will be the introduction to Hersheys healthier promotions. Employees will give
away free samples and display a wide variety of products next to its samples, giving consumers
an incentive to purchase our brands instead of the competition. Product displays will be placed
near registers to promote impulse purchases. Hersheys products like DAGOBA Organic
Chocolate will be promoted and placed near similar organic foods with extra displays on the aisle
endcap facing the front of the stores. Additionally, we will work with retailers to provide
customers with coupons, and promotional sales discounts.
An addition 15% of our budget is allotted to producing live podcast for Hersheys target
market consumers. Our podcast will be a main component in the companys
On Hersheys Live Podcast, listeners will be able to gain insight into how

PR promotion.
the

company is operating in a socially responsible and environmentally

sustainable manner. The IMC plan aims to promote chocolate in a positive and healthier way by
talking to people using direct and simple communication. We will also have 10 of the most
popular podcasts hosts talk about the chocolate in a new way. We will give them 100% creative
control, as long as they talk about the product in a positive and respectful manner. We've chose
this approach because we believe that by giving the hosts creative control over their message
they will be able to convey the product in a more genuine light than they would otherwise. We
also want them to be as creative as possible in order to come up with ideas for future promotions.

Social media, where 5% of our budget is directed to, will be a place to promote different
Hershey's products like DAGOBA Organic Chocolate, sugar-free Jolly Ranchers, and Hersheys
all natural unsweetened 100% cocoa. The social media campaign will be introduced by having a
well-known actor or actress talking about Hersheys products and promoting them on their
personal social media accounts, because it helps to instantly attract consumers' attention. He or
she will start the campaign by posting a picture of himself/herself with his favorite Hersheys
candy, and ask people to tell what their favorite Hersheys candy is by using the hashtag
#myfavoritehershey.
As part of our social media campaign we will also utilize PR tools to engage blogger to
talk about the Hersheys products. We will mainly target blogs in the health and environment
category, in order to promote our efforts targeted to those same areas. We will pitch our success
stories to them, and invite them to visit our headquarters and factories, as well as give them the
opportunity to interview employees. We hope that by using this strategy we will provide them
with enough material to create blog posts with great content.

Media Plan for the Advertising Program:

The media plan for Hersheys IMC campaign will aim to reach target consumers in
America and communicate to them frequently through the strongest media vehicles in order to
increase brand awareness and convert more loyal customers to the Hersheys brands in order to
be the market share leader. The media plan will accomplish this by sticking to these objectives:
Creating a positive brand image through mood, creativity, and repositioning
Reaching 80% of the target market audience 2 times over a 12 week period
For the media plan to be effective the Hersheys brands message must be delivered
through select key mediums. The IMC plan targets U.S. consumers ages 20-50 and mothers as

their primary audience. The characteristics of these two target markets are somewhat similar in
that they both can be reached successfully through TV broadcast, magazines, in-store
promotions, and interactive media such as social media.
In order to achieve a duplicated reach of the target market, the ads will be placed during
the most efficient time spots on top TV shows such as John and Kate Plus 8, Desperate
Housewives, American Idol, and 90210. The ads will air on a continuous schedule that will allow
for this campaign to serve as a constant reminder while also covering the entire purchasing cycle.
Although the costs do come with running this type of schedule the company is large enough to
have the budget for it.
To tap into a very strong segment, the media plan will also utilize magazines as a medium
to communicate Hersheys new message to their target markets. The healthier message will be
read by mothers reading Parenting magazine as well as young consumers ages 20-35 who read
magazines like Cosmo Girl and GQ. In addition, Sports Illustrated Kids will be used to target
moms and their children. The ability to control the ad image is what matters most for this
medium. The fact that consumers will have a beautiful long lasting ad to look at increases the
chance that multiple readers will be affected by it. Another key reason for the use of magazine
ads is the ability to reach such a loyal niche market such as mothers. The magazine ads will
constantly bring Hersheys to mind through every issue consumers read.
5% of the Hersheys IMC budget is being spent on social media. In order to make this
most effective the media plan will execute campaign messages on platforms such as Facebook,
Twitter, Instagram, and Snapchat. Recently these companies have made it possible to display ads
within the platform that do not even appear to be advertisements at first. Banner ads and
interactive ads will be placed and shared by families, friends, and mothers alike. With the IMC

elements planting the trend for consumers to be exposed to Hersheys new message, and they
will be able to carry this conversation over to their favorite social media platform to share it. By
utilizing the most interactive media vehicles for the younger consumer and more traditional
mediums for consumers ages 35-50, the media strategy accomplishes the objectives of reaching
at least 80% of the market 2 times within 12 weeks. Because Hersheys company is already very
well known by consumers, a low frequency of 2 exposures to the 80% of the campaign target
market will be sufficient to accomplish the IMC objectives of increasing market share by 10%
while also increasing brand awareness.