Mini Reese’s Chocolate
Mini Reese’s Chocolate
The company that deals in the manufacture of Reese’s chocolate is known as Hershey Company, based in the United States and America’s icon for the chocolate bar. The company was established in 1894 by Milton Hershey, hence being ranked as one of the oldest chocolate organizations worldwide. The company’s products, such as the mini Reese’s chocolate, will be impacted by several social forces, which include: demographic shifts and cultural changes; macroeconomic conditions and consumers; changing technology and technology’s impact on customer value; type of competition faced in company’s/product’s industry and how this might change in the future; and regulation impact on the company in various ways (Sommers, 1998).
Demographic Shifts and Cultural Changes
In order for mini Reese’s chocolate to succeed, the company has to focus on an effective marketing plan and the quality of the product. Indeed, a good number of forces play a big part in the acceptance of the product. Social forces are extremely important in making decisions on what is highly consumed. This means that companies that do not consider social norms of people when selling their products to them never succeed, and Reese’s mini chocolate product is not excluded. Demographics are the social factors in a group of individuals living within a given area. They tend to observe the way the population shifts in one area and how that changes the age gap and ethnic background of the place. The differences in groups of individuals are viewed as parts of the market in which the company functions. Thus, having adequate knowledge concerning people’s attitudes is important in the selling and development of the product. Therefore, Reese’s chocolate product could be impacted by the demographic shift in that because of the changing population within that area, the product should be created and marketed to meets the needs of the age group present at the time. This is because as people shift, the demand of the product may also decline. For instance, a certain social group such as the youth may be the main consumer of the chocolate product, thus in case of a shift in their number in a certain area, a decline in the demand for the product will be noted.
Concerning cultural changes, it is important that a company learn to live within the social standards of the different groups around it. For instance, cultural differences include religion, language, gender and social equality. Therefore, a person may not buy a product that he/she does not identify with or feel could be of use. Reese’s chocolate product may be impacted by this social force if the group consuming the product identifies themselves with it and enjoys consuming chocolate. However, the product may be negatively impacted if most people do not value chocolate or they consume it less.
Macroeconomic Conditions and Consumers
The chocolate product may be impacted mostly by the external environment as well as by competitors. This implies that it is necessary for producers of the product to be aware of the changes that occur in the external environment for it to be successful. By understanding the impacts of macroeconomic conditions, companies can determine the present conditions of the market as well as benefits of the product, which will lead to its success. For instance, economic growth as a factor in macroeconomic conditions changes rapidly hence affecting the business. The changes could be due to income level changes, the economy’s future and natural disasters amongst others. Concerning consumers, the product is likely to be influenced by the consumers both positively and negatively. For instance, in case the income level of the consumers is increased, then their consumption level of products such as chocolate is likely to increase. However, in cases where the consumer’s income level is low, less spending especially on luxury products such as chocolate will be observed.
Changing Technology and Technology’s Impact on Customer Value
Changing technology influences a product through creation of new market opportunities or new products. For instance, changing technology results in tremendous change in lifestyle of people, patterns in the consumption level, and the economy in general. Therefore, changing technology will influence mini Reese’s chocolate in that the product will be forced to adapt fast enough in terms of how it has developed, its prices, distribution and even promotion conditions. In most cases, clients prefer to purchase their products in companies that are highly developed in terms of technology since they assume that the products produced are of high quality. Therefore, technology will affect customer value in terms of lifestyle and purchasing pattern hence influencing the chocolate product.
Type of Competition Faced in Company’s/Product’s Industry
The type of competition the product faces involves imperfect competition where various companies also deal with the production of the same kind of product although with differences in quality, durability, price or utility. This type of competition may change in future if mini Reese’s chocolate product exits the market in case it is not bought by consumers due to high competition from other chocolate products.
Regulation Impact on the Industry/Company/Product
Regulations are conditions that are identified as necessary in influencing the activities of a company, product or industry. Therefore, regulations are likely to influence the product in different ways depending on the process of implementation of the regulations. For instance, some regulations may be very strict making it hard for growth of the product or industry in terms of innovation, hence leading to fewer sales. However, some regulations may motivate innovation in industries hence leading to its growth and development.
Sommers, M. (1998). Fundamentals of Marketing. New York, NY: McGraw-Hill Ryerson.