Hershey Research Paper

Hershey’s and Cadburys are moving towards the premium chocolate market through the acquisition or upmarket launches (Zietsma, 2007). The profit potential present in this sector supported by its 20% annual growth rate make it very attractive for large organizations to come forward and avail this opportunity. There is a low threat of new entrants prevailing in this chocolate industry because of the high capital requirements and expected retaliation by current manufacturers. Current players in the industry also possess some barriers to entry for new entrants by maintaining economies of scales with their large production capacity and keeping their product differentiation with their specialized and novelty chocolate products. Even though there are low switching costs and easy access to distribution channels, but still the brand loyalty of the customers including the Rogers’ Chocolate itself make it harder for new firms to come into the competition.

Alfred Day Hershey was born on 4th of December 1908, in Owosso, Michigan. Robert Day Hershey and Alma Wilbur Hershey were his biological parents. While his father worked for an auto manufacturer, Alfred attended public schools in Owosso and nearby Lansing. He studied Bachelor of Science in Bacteriology from Michigan State College in 1930 and he earned his Ph.D. in chemistry from the same school in 1934. Hershey's interest in bacteriology and the biochemistry of life was clearly noticeable. His doctoral dissertation was focused on the chemistry of Brucella, the bacteria responsible for brucellosis, also known as undulant fever. Undulant fever is transmitted to humans from cattle and causes recurrent fevers and joint pain. After receiving his Ph.D., Hershey took a position as a research assistant in the Department of Bacteriology at the Washington University School of Medicine in St. Louis. There he worked with Jacques Jacob Bronfenbrenner, one of the pioneers in bacteriophage research in the United States.

he employed over 14,000 people in his business. In 1893, Milton went to Worlds Columbian exposition. It was here that he had to take a closer look at the art of chocolate. And yet again Milton Hershey became fascinated with the entire process. “With a thriving Carmel business already in hand, he decided to start the Hershey chocolate company.” (Bilbrey 2) Milton wanted to concentrate more on milk chocolate rather than Carmel. After several years, he started a candy-making factory in Derry Church. “The factory had modern machinery and was considered as a path breaking unit in the history of Hershey and the candy industry. Milton Hershey’s experimentation with the milk chocolates in the long run led to the discovery of the Hershey bar which became popular with everyone. But in 1924 was a land mark in Milton’s career when he found the most impeccable way to mass-distribute his chocolates with the introduction of foil

Milton Hershey singlehandedly revolutionized the chocolate industry in the United States. In his time, he was one of the few major company owners who actually cared about his workers and their well-being. Not only was he setting the bar for treatment of workers, he was the first man to bring the decadence of milk chocolate, previously reserved for only the richest of folk, to the mass market of America. While bringing milk chocolate to the masses, he also established a sustainable source for his ingredients, a rarity for that time. In his wake of successfulness, many imitators and copies soon followed with their own brands of chocolate. However, Milton Hershey was the leading philanthropist and business leader of his time with his use of sustainable ingredients and his commendable efforts in times of war.

The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline

The Scharffen Berger Chocolate Maker is experiencing an exponential year over year growth rate of their premium product. This is a situation that all new businesses strive for and although Scharffen Berger is pleased with their growth, they are facing a potential dilemma. The company must consider how they will keep up with growing demand while having enough capacity to handle the increase in production and maintain their high quality standards.

M&M’s biggest competitor is Hershey’s brand like M&M candies. The competition is fierce among the chocolate industry. Hershey and Mars are rivals and want the opportunity to gain more of the market share. In 1954, Hershey-ettes were introduced to compete against the similar M&M’s. However, they were not successful and are generally only available for consumers around the Holiday season. By the millennium, Hershey extended the popular Hershey Kisses brand in creating the Kissables. Hershey intended for direct competition to M&M small candy coated round tablet of chocolate in multitude of colors. The candy factories started in standard size packs and by the 70’s moved into standard size candy boxes. In the current year and season, you will find M&M’s in candy canes to small snack sizes and inside ornamental objects. The chocolate world becomes difficult to present as it becomes difficult to come up with new ideas in the candy business. As more companies release products similar to the M&M’s, it will become increasingly difficult for Mars to continue to command the level of market share in the chocolate candy industry and the product has a potential to get lost in the supermarket aisle.

For over one hundred years, there has been only one company that has been on top of the candy industry in North America; Hershey. With over 14,000 employees, serving 70 countries worldwide and net sales of $6.6 billon, Hershey has come out on top. The Hershey company began in 1894 by Milton Hershey. The company has over 8 factories, but their main headquarters resides in Pennsylvania. The beloved Hershey milk chocolate bar has been a favorite by many, but would it still be if more people knew how it came to be that? One of chocolates main ingredients is cocoa. Cocoa, or cocoa beans come from tropical areas around the world, but is mostly found on the Ivory Coast in West Africa. Hershey, along with Mars and Nestle are the three major companies that buy their cocoa from West Africa, but with further investigation, it has been known that over 4,400 children work on those cocoa farms that they buy from.

Since the creation of Hershey’s chocolate, chocolate today has taken on many different flavors and shapes.

When the cocoa beans arrive at the factory they are processed into the cocoa products that can be used in manufacturing chocolate. These include cocoa liquor, cocoa butter and cocoa powder. Most processing occurs away from the countries where cocoa is grown because it is more efficient to process and manufacture the products close to where they will be consumed.. What happens during processing has a direct effect on the flavor and qualities of the resulting chocolate.The taste and texture of a particular chocolate product depends on the each recipie , which remains a guarded secret of the company. Mars uses different types and proportions of cocoa liquor, cocoa butter and other ingredients such as milk and sugar to make their products consistent with the brand.

The transportation cost of chocolate was high and small mom and pop stores commonly supplied chocolate made locally. Today you would be hard-pressed to find local chocolate in the United States, with the shelves dominated by four major brands. The

Whether she is your sister, your best friend, your college roommate, or simply the woman who works three cubicles down from you, you have somehow been pulled into hosting the bridal shower. Because she is someone you care about, you want the bridal shower to really be a chance to honor her. If one of the things you are worrying about is picking the perfect bridal shower party favor, consider these three reasons we might be the right pick for party favors.

Milton Snavely Hershey founded the Hershey Chocolate Company. He was a pioneer in the mass production of milk chocolate. The Hershey Chocolate Company was one of the largest confectionary companies (McMahon).

The hershey food cooperation is a confectionery kind of industry that was founded in 1894 by Milton Hershey who is a candy-manufacturer who decided to try adding chocolate to his caramels; transforming the name of his enterprise the Hershey Chocolate. This new factory was located strategically near dairy farms and surrounded by the spirits of hardworking people , by 1900 production of the delicious mil chocolate took place. Followed that, the launch of so many

Chocolate is made from cacao beans found on cacao trees which grow wild in the Amazon, South and Central America, as well as the Caribbean and Africa. The process begins with harvesting, ripe cocoa pods are harvested every year. The harvest times vary from region to region but the process of turning it into chocolate begins immediately. The pods are cut open and the white pulp containing the cocoa beans is taken out. The pods and pulp are placed into large wooden containers, at this point the pulp is allowed to ferment for five to seven days. During the process, the beans are turned to help them ferment more evenly. This is the first stage in developing the flavour of the chocolate and part of the reason why a farmer can have a direct impact on the quality of the finished chocolate.