Short Term Fix Identification

Answer

   Short Term Fix Identification

Brief Overview of the Rivals

Hershey Limited Company has more than 80 brands in the global market. The business   realizes an approximate of $7.4 billion every year (Wood Samantha, 2017). It is a licensed producer of Cadbury products as well as Kit Kat bar, and Rolo candies, which are both owned by Nestle.   The company uses iconic brand names as Hershey’s, Reese’s, Hershey’s Kisses, jolly Rancher, Ice breaker and Brookside.  One of the main competitors is Pepsi Company. Pepsi Limited Company (PepsiCo) is a   manufacturer of a wide range of beverages, foods and snacks. The company sells under various brands such as Pepsi, Pepsi Max, Mountain Dew Diet Pepsi, Frito-Lay Tropicana, Aquafina, Mirinda, Gatorade and Quaker among others (PepsiCo, Inc. SWOT Analysis, 2019). The main customers, which these two rivals compete for are grocery stores, drug stores, convenience stores, discount/dollar stores, mass merchandisers, membership stores, wholesale distributors, e-commerce retailer and the independent authorized agents.

In terms of the realizable turnover every year, Pepsi Limited Company is much ahead of its rival. This could be attributed to a higher market experience, as well as a stronger capital base. Pepsi realizes over $ 63 billion every year. The margin increases every year, depending on the market state, as well as trends.

The Channel of difference Between the Two rivals

Pepsi Limited Company enjoys a very strong market position, which is anchored on a continuous research and development activities, re-investment to generate a stronger financial results   and strong customer base.  Despite this, the company has been able to recall a number of its products from the market (PepsiCo, Inc. SWOT Analysis, 2019). This remains one of the main concerns which have been addressed properly. In the future competitive pressures, as well as escalating process for raw materials are some of the stumbling blocks for Pepsi’s marker growth.  Pepsi limited has business presence in North   America, South America, Europe, Asia-Pacific, the Middle-East as well as Africa. There is also a remarkable reduction in consumption of sugar based products, based on health concern. However, this is a universal challenge for Pepsi and its rivals like Hershey.

            Hershey on the other hand, trades by strict focus on its portfolio expansion, to include a broader range of products and snacks.  The company remains focuses on growing its presence in the Key international markets, as it continues to widen its market within the Northern America (Wood, Samantha, 2017). This is unlike Pepsi Limited Company, which operates in the global scale.  At Hershey limited, the main point has been focusing in producing more quality products, which is appealing to the target customers. This has led to the company introducing a much more delicious products.  For more than 120 years, the company has been committed to ethical operations in the industry, as well performance of the Corporate Social responsibilities as required by law.

Performance of the corporate social responsibilities is not confined within American borders only. Instead, it extends across the United States, to the streets of Shanga and Mumbai Villages in the Western part of Africa. The main focus, which propels this, is to nourish approximately one million minds by 2020. Pepsi on the other hand, is market oriented, and not product oriented. Besides, the corporate social responsibilities performed by the company are countable.

The Possible Benefit         

           From the foregoing, it is evident that, the main reason as to why Pepsi Limited has been able to realize more turnover, as compared to Hershey is risk diversification through marker expansion. Unlike Hershey which is more focused on the North American marker, Pepsi Limited focuses on the global market. Through this, Pepsi Company has been able to diversify its risks, by one market risk being cancelled by another one. Hence an increase in the sales   volume. In the year 2017 for instance, Pepsi Company realized an increase on its turnover by 1.2% (PepsiCo, Inc. SWOT Analysis, 2019).  Hershey should therefore start targeting the global market, in a bid to maximize its profit, through risks diversification. It is also worth to note that, focus on the global market, will obviously make the company produce more products, hence   being able to enjoy the advantages which are associated with economies of scale.

Other Factors to Consider

           Other than diversification of risks through market, the following are some of factors which could provide Hershey with competitive advantage:

Technology

        Dent (2014), defines technology is defined as the technical knowhow, which enables one to improve the level of productivity. The market in which Hershey operates in (North America), is advanced technologically.  Besides, the continent is mainly composed of first world countries, whose rate of technological advancement growth is very high. Hershey could take advantage of this, to improve its level of creativity and innovation. Besides, this could help the company to produce more customer oriented products.

Economy 

         Economy refers to the state of a nation, in terms of production and consumption of goods and services, as well as money supply (McIntyre, Melewar & Dennis, 2016). As has been stated above, Hershey operates in North America, which is mainly composed of developed nations such as United States, Canada, Mexico, Costarica, Panama among others. These countries have a   good monetary policies, which ensures that the rate of inflation is properly kept on check. Besides, their Gross Domestic Product per capita is over $ 40,000. This makes the buyers in this market to have a high purchasing power. This is another factor, which could Hershey could capitalize on, in order to boost its turnover.

Political Factors

           This is an externa   factor, which is influenced by the political policies and relationship that a particular country has. The political factors can either favor or work to the disadvantage of an investor. Hershey originates from the United States, in which it has operated for more 92 years now. The political temperature within this state, has been very conducive for trade.  All the countries within North America have a good diplomatic relationship. This means that the company will not have any tough time in crisscrossing the various borders of Northern America. In the likely event that the company decides to venture into the global market,   the host nation (United States), has got a very goodwill within the global market. This is owing to the fact that the nation is a super power.  Products from this nation are perceived to be of high quality. This work to the advantage of the company when it makes a decision to venture into the global market.

Designing of the Ideal Channel

          Channel designing refers to the various decisions which involve the development of a new marketing channels, where not had existed before or modification of the existing channels, in order to meet the market dynamics (Strategies in Marketing,2014). Manufacturers usually struggle between what is ideal and what can be achieved practically. In marketing channel design, four main aspects are usually focused on. These are, the customer needs, settling channel objectives, identification of the major channel alternatives and finally evaluation of the available alternatives. The ideal channel is one of the most effective ways, through which the needs of the customers can be met.

           Hershey limited has been committed to a strong brand equity. The company focuses on ensuring that their products maintains their originality and superiority, which is one of the reason as to why they have   maintained customer loyalty. In order to achieve this, the company has been using various channels such as traditional, online, mobile and social media, licensed and franchised channels.

Ideal Channel for Lower and Lowest Customers
        In order to reach the lower customers, the company will have to use commercial television advertisements and retailers stores.  The company should focus on advertisements which are able to agitate the customer s and have an emotional touch on them. If the company will manage to capitalize on Television advertisements, especially during holiday seasons then it will be able to reach very many people. However, each brand of the chocolates and Candies sold, the company should s ensure that it has enough stock, to sustain the market, in case the demand booms.  This is a traditional channel, which can be very handy in boosting the company’s turnover levels.

Cost efficiency and Oher Classes Customers

In order to ensure that the high class customer are reached at an economical cost, the company should venture into online or website and social media product promotion.  The Supply Chain Management Association (2014), argues that website adverts can be accessed by all the various classes of people, ranging from the middle class to high class. Social media on the other hand, can allow the products to be promoted easily and an affordable cost.  The above will ensure that the company’s products reaches many people, within a short span of time.

Rationale
          The rationale behind this channel is that it is cost effective and it will enable the company to reach a wider scope of the market. Besides, the channel is technology oriented, meaning that it will enable the company to meet the required level of market competition.