CHOCOLATE WAR "HERSHEY VS MARS"

Tommy Andika
Graduate Student of Master Program Management
School of Business (www.mb.ipb.ac.id)
Bogor Agriculture University (www.ipb.ac.id))

MARKETING CLASS
Lecturer
Prof. Dr. Ir. Ujang Sumarwan, M.Sc.
www.sumarwan.staff.ipb.ac.id, sumarwan@mb.ipb.ac.id
Dr. Ir. Hartoyo, M.Sc.
Dr. Ir. Dodik Nur Rachmat, M.Sc.F.
Dr. Kirbrandoko, M.S.M.
Dr. Ir. Mukhammad Najib, M.M.


A video https://www.youtube.com/watch?v=GVmWfTSr9Fk in 48 minutes about chocolate war between Hershey and Mars have gave us a knowledge about how competitiveness in business specially marketing challenge.

7P marketing mix perspective about chocolate wars :

1.   Products

·     Hershey and Mars always developing new products to match what the customer need. Start from branding, taste, packaging, until the product resistance to temperature. For example in world war I in the middle east, Hershey supply military chocolate “desert bar” that resistance to temperatur until 60 degree Celcius which is usually just 30 degree Celcius.

·     Branding strategy, hershey using company name strategy in their products, while Mars using individual branding strategy in their products (Mars, Milky Way, Snickers, Three Musketeers, M&M’s, dll.)

2.    Price

Price show the cost of products plus profit margin that accepted by company. In video no specific tell us about the product price in their products but some company like Godiva in now days make a premium price to their products and build the chocolate cafe/store to increase value added and sell product more.

3.    Place

·     Hershey and Mars use several distribution channel start level zero until level three tosell their products over the world.

·     Both Hershey and Mars have delivered their products to supermarket and candy store to make customer easy buy it. Even when country war they distribute the products to military as food supplies in the battlefield.

·     Some of the smaller chocolate company like Godiva just use level zero distribution channel with cafe or chocolate store.

4.    Promotion

·     Both Hershey and Mars have promoting their products in newspaper, magazine, pamphlet, but Mars is the first company use television to promoting chocolate and its make Mars to be Market leader.

·     Mars decided to stop buying chocolate from hershey and its make big effect to hershey business. But Hershey can rise with differentiation product and promoting to movie in Hollywood. E.T movie make hershey products sales increase significant.

5.    People

Hershey and Mars have different personal character. In side of business, Hershey isnot agressive to running their business, not profit oriented and more do social responsibility program. Its proven by no marketing division at that time. In other side Mars, so agressive in running the business and big ambition to be market leader. Proven when Mars stop cooperation with hershey in buying chocolate to M&M products.

6.    Process

Milton Hershey need about 8 years to make a good taste chocolate milk. Technology give big advantages  in chocolate process. Now days big company have used modern technology to make chocolate. Its standardized an computerized and make better quality of products than manually process. Modern technology make production increase fastly and efficient cost.

7.    Physical Evidence

·     School of Hershey is one of the physical evidence. Its have an important role to developing hershey generation.

·     Pabric expansion, both Hershey and Mars have grow up and hold over 70 percent market share in US. Of course, building more are needed. 

Notes On Marketing Class

Tommy Andika
Graduate Student of Master Program Management
School of Business (www.mb.ipb.ac.id)
Bogor Agriculture University (www.ipb.ac.id))

MARKETING CLASS
Lecturer
Prof. Dr. Ir. Ujang Sumarwan, M.Sc.
www.sumarwan.staff.ipb.ac.id, sumarwan@mb.ipb.ac.id
Dr. Ir. Hartoyo, M.Sc.
Dr. Ir. Dodik Nur Rachmat, M.Sc.F.
Dr. Kirbrandoko, M.S.M.
Dr. Ir. Mukhammad Najib, M.M.

300 WORDS ABOUT MARKETING MANAGEMENT 

What is marketing ? when I hear about marketing first words in my head is about "selling product". Trip around to houses, store, market, or firm to selling products. That's my first opinion about what the marketing is. But I'm wrong about it. Marketing isnot only selling the product but also everything a company does to acquire customer and maintain a relationship with them. Even the small thing like send the letter for birthday party client or playing golf with prospective client, or some activity that can make good relationship with client. So the ultimate goal is to match products company to the client who need and want them.

Product have many categories, Sumarwan (2017 :41) said that product can be classified as below :

1. Goods, such as food, beverage, electronics etc.
2. Services, such as insurance, bank, hotel, education, communication etc.
3. Experience, like disneyland, universal studio, camping etc.
4. Events, such as music concert, wedding party, football show etc
5. Peoples, such as singer, athlete, singer professional etc.
6. Places, to promoting tourism spot like Bali, Jakarta, Bandung etc.
7. Properties, can be building like aparment, housing or investment like bond, mutual fund or equity.

One of the study about marketing is called marketing management. Marketing management is "the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value" (Kotler and Keller, 2008 : 5).

The company must have the best marketing strategy to boost their business growth. Its also depend on their position in the market. Whether the company is a marker leader, market challenger, market follower or market nicher.

Text Book

Ujang Sumarwan (editor). 2015. Pemasaran Strategic: Perspektif Perlilaku Konsumen dan Marketing Plan. IPB Press.

Silahkan download e-book:

2015 01 BUKU PEMASARAN STRATEGIK PERSPEKTIF PERILAKU KONSUMEN DAN MARKETING PLAN

Sumarwan Ujang; Agus Djunaedi; Aviliani; H.C Royke; Jusuf Agus Sayono; Rico R Budidarmo; Sofyan Rambe. (Strategic Marketing: Strategy for Corporate Growth and Share Holder Value).-Pemasaran Strategik: Strategi Untuk Pertumbuhan Perusahaan dalam Penciptaan Nilai bagi Pemegang Saham . Published byInti Prima, Februari 2009, ISBN 979-450-451-3  Please dowload link below for book preview:

Silahkan download e-book:

2009 UJANG SUMARWAN PEMASARAN STRATEGIK – STRATEGI UNTUK PERTUMBUHAN PERUSAHAAN

Sumarwan, U., Achmad Fachrodji., Adman Nursal., Arissetyanto Nugroho., Erry Ricardo Nurzal., Ign Anung Setiadi., Suharyono., Zeffry Alamsyah. 1^st Printing. 2011. Marketing Strategic: Value Based Marketing and Marketing Metrics. Pemasaran Strategik: Persfektif Value-Based Marketing dan Pengukuran Kinerja. Bogor, IPB Press.

Silahkan download e-book:

2010 UJANG SUMARWAN PEMASARAN STRATEGIK – PERSPEKTIF VALUE-BASED MARKETING

SINOPSIS
Pemasaran strategik menguraikan bagaimana sebuah perusahaan harus memahami konsumen, sehingga dapat menyusun strategi pemasarannya untuk mencapai tujuan-tujuan perusahaan guna meningkatkan kinerja perusahaan dan menciptakan nilai tambah bagi pemegang saham.Pemasaran adalah memahami berbagai kebutuhan para pelanggan dan mengembangkan sebuah proposisi untuk menawarkan nilai yang superior. Melalui penyediaan nilai pelanggan yang lebih tinggi maka manajemen dapat memberikan dan menghasilkan nilai yang lebih tinggi pula kepada para pemegang saham. Nilai suatu merek dagang terbentuk dari kepercayaan para pelanggan terhadap merek dagang perusahaan. Kepercayaan ini membentuk relasi antara merek dan pelanggan yang mendorong preferensi, loyalitas merek, dan keinginan untuk mempertimbangkan produk dan jasa baru yang ditawarkan perusahaan di masa depan dengan merek tersebut. Buku ini juga menguraikan bagaimana langkah-langkah untuk membangun ekuitas merek serta menjelaskan beberapa metode untuk mengukur ekuitas merek.