It seems that Hershey is competitive in many areas and one in particular is \"cu

Question

It seems that Hershey is competitive in many areas and one in particular is "customer loyalty." Next to Hershey, Nestle stands out, a bit surprising--and I am wondering if you think the fact that both Nestle and Hershey have been around so long and their brand is solidified into America's culture, customer loyalty wavers? That being said, leaders at Hershey cannot grow complacent--as competitors are always trying to gain advantage, and with a new generation coming into power, this "loyalty" that you and I might feel could be overlooked--simply because a product is more appealing, better marketed, or cheaper. Thoughts?

Explanation / Answer

Answer) Both Hershey and Nestle deal in low involvement products. In this case customer loyalty depends on the taste of customer. Hershey fails in understanding the customer’s taste, this result in serious losses in profits, market share and stakeholder confidence.

Hershey refocused its efforts to understand the customer taste and desires to maintain its dominant position in the industry.

As todays culture is focused heavily on personal health, candies and chocolate are considered unhealthy. So to gain market share companies in this sector should focus healthy product.

Hershey need to concentrate on alternative location to expand its brand and should consider each county’s culture before developing strategies or product. The company should also invest more on advertisement and distribution channels.

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