Chocolate brand Hershey’s will launch milk chocolate bars and Hershey’s kisses made out of locally sourced ingredients rather than artificial flavours. For instance, instead of using vanillin (artificial vanilla flavour), Hershey’s will actually use real vanilla. Additionally, lactose, a sugar in milk will not be used anymore to produce these chocolates.
This strategy is part of the company’s customer relationship segment. Since market research has proven that consumers are demanding less-processed food, the company is trying to meet this demand to increase and maintain their customers. Moreover, to accomplish this goal and to keep their customers satisfied, Hershey’s is also planning to launch a mobile tool called SmartLabel. This tool will provide nutrition information, facts and ingredients for all Hershey lovers.
It is important to note the Hershey’s is not only responding to a change in consumer’s demand. They are also responding to the nature of consumer’s purchasing decisions as holidays approximate. They are are producing chocolate without artificial flavours because in holiday seasons, people tend to buy better quality chocolates for personal consumption rather than to give them away as in Halloween.
In my opinion, using natural ingredients rather than artificial ones is a great strategy because doing so will allow the company to reach out to another market, the market that encompasses consumers that eat chocolate but are looking for healthier alternatives. Other companies such as Nestle, General Mills and Yum Brands have already done this so Hershey’s is in fact hopping on the trend bandwagon. Although using natural ingredients might increase the company’s costs, this can be recovered when the products are released.
This example clearly demonstrates that firms should always be aware of changes in demand. Tastes and preferences will vary so firms should respond to them.
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