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ASSIGNMENT – 1

NAME OF THE STUDENT : DUDEKULA VUSSENI

REG NO : 18691E00K3

DEPARTMENT : M.B.A

COURSE TITLE & CODE : CREATIVITY INNOVATION (18MBAP203)

ACADEMIC YEAR : 2018-20

TOPIC : BUSINESS MODEL INNOVATION

NAME OF THE FACULTY : DR.K.T.VIGNESWARA RAO


About the company :

The Hershey co,engages in the manufacture in and market of chocklet and sugar confectionary
product .The hershey founded in 1894.the Hershey chief executive officer Michele Buck.The
North America distubutes and sales traditional chochalets,non-chocholets confectionary and
sncks in Cannada and United States.The inter national and other segement provides lisence to
third parties and operaters manufracting plans out side America. The company was founded by
Milton S.Hershey in 1894 and heardquartered in Hershey,PA.

1) KEY PARTNERS OF THE COMPANY :


Hershey works in conjuction with a range of companies and organizations in the
manufracturs and distubtions of its products .

These partners include :


 Supplers and vendor partners,comparising suppliers of raw ingredients,materials
and equipments used in the companies ,manufracturing and packaging processes.
 Channel and distubution partners comparising various distubution companies and
third party carrier that assists in delivering in the companys products to its
costumers around the world ;
 Licensing partners , comparising inter national confectionary producers that
licenses brands and products for manufracutre and sale by Hershey in the US ;
 Joint venture partner, comparising a range of manufracturing and distubution
business that produed the and market certain products in collaboration with a
Hershey through mutually owned entities ;

2) CUSTOMER RELATIONSHIPS :

Hershey o ffers a full range of prorducts to general consumers on a self-service


basis thoughts its online store,which allows customers to browse its catalogue of produc ts and
merchendies,pl ace odders ,track delivers and manage accounts with of intracting with members
of the companies sales and supports personnel. The com panies chain of physical retail out
layers also provides a largely self services experi ence offere personal assistansey and complete
purchasses . Hershey provideds customer support to consumers through its online customer care
portal inform ation on shipping and retuns,ordering and payment,and FAQ ,or can contact suppo
rt directly for personalized care through on online contact for.Hershey sales channels are
supportd its own exentive manufracturing and distubution infrastructure,which spans a no of
contries accress all of its oprating reasons .

3) CUSTOMER MARKET SEGMENTS FOCUSED BY THE COMPANY :


Hershey manufacturers, markets ,and distributes a range of chocolate and confectionery
products,intended for consumption by the mass consumer market.It principally reaches
the general consumer market indirectly via sales to customer in the following segments.
 Distributors, comprising confectionery wholesalers and consumer food product
distributors; and
 Retailers, comparising chain grocery stores , supermarket chain drug stores,vending
companes, wholesale clubes, convinence stores, dollar stores, concessionaries, and
department stores.

4)VALUE PROPOSITIONS OF COMPANY

Hershey provides value to its customers in the following ways.

 The Strength of its brand name and portfolio, with the company’s signature brand a
household name across North America and much of the wider world, in addition to its
other high-profile brands such as Reese’s, jolly Rancher, Kit kat , Rolo,and Twizzlers.
 Its domestic marketr share,with the company controlling a domestic market share of
more than 40%, serving an extensive consumer base through a network including all of
the country’s major confectionery retailers.
 Its international reah,with the company exporting,marketing and ditrubuting its products
and brands across around 70 countries worldwide, spanning North Americs,Latin
America, Asia pacific, Eroupe, the Middle East, and Africa.
 Its extensive manufacturing infrastructure, with the company owning and operating an
international network of manufacturing and distribution facilities ,which includes the
single largest chocolate factory in the world in Pennsylvania.

5) DISTRUBUTION CHANNEL USED BY THE COMPANY:

Hershey operates a website at, through which h it provides information on its various brands
products operating locations, and corporate activities. The company also operates an online
store at, where consumers are able to purchase a range of Hershey Products –include
flagship brands such as Hershey’s Reese’s and Twizzlers- as well as Hershey-branded
merchandise,such as homeware,apperal and toys.Addedwsitionally,Hershey sells products
directly to consumers through its physical network of Hershey Chocolate World locations
across the us, as well as in Dubai, Shangai, and sinapore.

6) KEY ACTIVITIES OF THE COMPANY:

Hershey is a manufacturer, marketer, and distributor of chocolate and non-chocolate


confectionery items. The Company offers a broad portfolio of products, including gum and mint
refreshment products; and pantry items, including baking ingredients, beverages, spreads, meat
snacks, bars, and snack bites.

Hershey aligns its operations into two reportable business segments: North America, which is
responsible for the Company’s chocolate and sugar confectionery business, as well as its grocery
and snacks business, across the US and Canada; and International and Other, which is
responsible for the Company’s operations across all other jurisdictions where the Company
manufactures, imports, markets, sells or distributes chocolate and non-chocolate confectionery
products. Hershey markets, sells and distributes its products under approximately 80 brand
names – including Hershey’s, Reese’s Jolly Rancher, and Kit-Kat – in more than 70 countries
across the Americas, Europe, Asia Pacific, Africa, and the Middle East.

7) COST STRUCTURE OF THE COMPANY:

Hershey incurs costs in relation to the development of its products, the procurement of supplies
and materials, the operation of its manufacturing and distribution infrastructure, the maintenance
of its IT and communications infrastructure, the implementation of advertising and marketing
campaigns, the management of its partnerships, and the retention of its personnel.

In 2015 Hershey recorded total cost of sales for the year of $4.00 billion, and selling, general,
and administrative costs, including advertising and marketing expenses, of $1.97 billion.

8) KEY RESOURCES OWNED BY THE COMPANY:

Hershey’s key resources are its brands and intellectual properties, its raw materials and supply
chain, its manufacturing and distribution facilities, its IT and communications infrastructure, its
sales and marketing channels, its partnerships, and its personnel.

Hershey owns a number of intangible assets, consisting primarily of trademarks and patents,
including those related to its high-profile brands, which have been obtained through business
acquisitions and are considered key to the Company’s operations. Searches of records published
by the US Patent and Trademark Office identified several patent applications filed in Hershey’s
name, including applications entitled ‘Methods of purifying and identifying the presence of and
levels of procyanidin oligomeric compounds’, ‘Rapidly dissolving comestible solid’ and
‘Confectionery’.
Hershey additionally owns and or leases a number of properties that are key to its activities, most
notably its network of manufacturing assets based primarily in the US, China, Malaysia, and
Mexico.

9) REVENUE OF THE COMPANY:

Hershey generates revenue through the manufacture and distribution of various confectionery
products – including chocolate products, baking ingredients, and gum and mint products – to
consumers, distributors, and retailers across the world. This includes sales of major brands such
as Hershey’s, Jolly Rancher, and Reese’s.

In 2015 generated net sales of $7.39 billion, down marginally on the $7.42 billion recorded by
the Company in 2014. The vast majority of the Company’s sales are attributed to its North
America segment, which alone recorded net sales of $6.47 billion in 2015.