Business Wars Encore: Hershey's vs Mars | A Chocolate Rolls Royce | 5
Jan 12, 2022
In the late 1970s, Mars reigns as the top candy maker, but Hershey is ready to stage a comeback. Fueled by a desire to outshine Mars, Hershey focuses on innovation and emotional connections to its community. The competition heats up as Hershey finds a golden opportunity in Hollywood, leading to the success of Reese's Pieces. With both companies battling fiercely for market dominance, the candy landscape is forever changed. This rivalry is about more than just candy—it's a fight for identity and legacy.
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Hershey's Comeback Plan
- In 1976, Hershey's executives plotted a comeback strategy to regain market leadership from Mars.
- CEO Bill Dearden, a Hershey's Orphan School alumnus, aimed to build a "Ford Model T" that would evolve into a "Rolls Royce."
Reese's Pieces Development
- Jack Dowd, Hershey's head of new products, spearheaded the development of Reese's Pieces to rival M&M's.
- Initial tests showed promising results, but consumer interest waned after the novelty wore off.
Mars' Counter-Strategy
- To combat Hershey's resurgence, John Mars implemented a two-pronged attack.
- Mars increased candy bar sizes without raising prices, anticipating Hershey would struggle to match the value proposition.