Hershey, Mondelez Grow S'mores at Target

Minneapolis — The Hershey Co., Mondelez International and Kraft Foods Group brands have partnered for 20 years on national promotions for s’mores – that gooey treat made with Hershey’s chocolate, Mondelez’s Honey Maid grahams and Kraft’s Jet-Puffed marshmallows. Over the last seven years, the strategy has gone from a seasonal, April-to-September promotion to a year-round, 360-degree activation.While sales continue to rise every year and the brands are exceeding their KPI targets, according to Michael Klei, senior manager of shopper and customer marketing at Hershey, and Steve McGowan, director of shopper marketing at Mondelez, the companies saw a big opportunity for growth in 2013: bringing their brands to life at Target stores in a guest-centric way.During a presentation at the Shopper Marketing Conference & Expo in October, Klei and McGowan said that s’mores are about family, creativity and inspiration – qualities that resonate at Target. Hershey and Mondelez decided to use this insight to make their program more inspiring to shoppers.The team reviewed its past performance and saw room for improvement in three areas: planning, collaboration and execution. The goal was to extend Target’s typical timeline for planning, collaborate by pooling resources to create the best possible program for Target, and execute with excellence. The team pinned its planning process on two of Target’s own strategies: grow busy families, and win seasons.In summer – a very busy season at Target – confections and snacks can build baskets by driving concurrent purchases as shoppers buy all the ingredients for s’mores. Hershey and Mondelez leveraged their deepest data to date on the Target guest, including concurrent purchases, basket lift and affinity. They analyzed the data from each brand’s perspective to set their benchmark and goal. Execution included special displays and endcaps. The results: a 213% basket lift for participating brands.For 2014, the team started planning three months earlier and brought Target into the planning process early to create a more holistic program using all partners’ collective assets and insights. Two goals shaped planning: to reach Target shoppers more before they’re in-store, and to integrate digital into the program.Digital elements gave moms ideas for variations on homemade s’mores; exclusive recipes gave Target something to own in the marketplace. Activities and displays brought the brands out of the candy & snacks aisle. Results: a 214% basket lift, plus a jump in concurrent purchases (41%, up 6 points from 2013).That success has prompted Hershey and Mondelez to collaborate even more. The two companies agreed on four key elements for future s’mores marketing at Target: Understand the ways that moms purchase s’mores ingredients; and help moms feel good about the purchase; alleviate moms’ guilt about serving indulgent snacks; help moms remember that their families’ treats came from Target.Hershey and Mondelez will pursue four key areas to drive their strategy with Target for the next few years:Build scale promotions. With consumer insights and its s’mores program as a model, Hershey and Mondelez are improving other scale promotions, starting with their March Madness joint effort. Shoppers told the CPGs that the 2013 March Madness promotion was too complicated; Hershey and Mondelez simplified with a one-stop shop for March Madness party supplies, anchored by Reese’s Cups sporting basketball graphics.Drive merchandising solutions. The CPGs create displays leveraging core equity of key brands, such as Oreo (think Double Stuf Racing League), and recipes for key seasons.Offer innovation. To promote Hershey’s Lancaster Caramels, Hershey and Mondelez paired them with Hershey Kisses sandwiched between Ritz crackers (a Mondelez brand) and microwaved for a warm after-school snack. The ingredients were merchandised together.Leverage digital. Hershey and Mondelez approach digital differently; meanwhile, Target wants to expand its digital endeavors, too. The three partners want to get more mileage by working together.Hershey and Mondelez agree that the longer planning horizon is a critical element to their success, with time built in for revisions from all partners to evolve the concepts – and to incorporate Target’s goals into the CPGs’ planning.And what of categories where Hershey and Mondelez compete? “When you work together year after year, you know where the places are that you can’t cross,” said McGowan. “The best defense is that consumer insights drive the planning, and consumers are buying the products – so we know we’re giving them what they want.”

P2PI MEMBERS

JOIN P2PI

You May Also Like

2023 Women of Excellence, Innovator

Brand Watch: Oreo Shines at Target, Family Dollar