Core Concepts of Marketing by John Burnett - HTML preview

CHAPTER 7

INTRODUCING AND MANAGING THE PRODUCT

According to

sales figures, Hershey chocolate milk is the number-one chocolate milk

in the country. These results are indeed admirable considering the gamble Hershey took with their chocolate milk. It was the first time Hershey had attempted to sell a premixed beverage or promote a product not under its direct control. Hershey is licensing the use of its name on the chocolate milk-another big first for the company. Hershey sells powdered chocolate to large dairies, which mix the product with their milk, package it, and handle distribution. Following strict standards, Hershey has selected only certain dairies to be licensed to use the Hershey chocolate powder and labeL Each dairy must follow detailed specification on mixing. To make sure there are no slip-ups, Hershey has printed a toll-free telephone number for consumers to call if they have complaints about the chocolate milk.

For

the taste of success is sweet.

Questions:

1. What type of innovation is Hershey chocolate milk?

2. How would you describe the product development process Hershey followed?

3. Describe any potential problems.

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February 23, 1998. pp. 22-30.