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2004/05 Hershey Foods Challenge

HERSHEY'S Products page
Hershey Foods Corporation is the leading North American manufacturer of quality chocolate and non-chocolate confectionery and chocolate-related grocery products, and has a variety of international operations.

Be sure to review the schedule and procedures for submitting a solution.


Challenge #1 by Hershey Foods Transportation Department:

"Develop a survey to determine the reasons behind the high turnover and recruiting difficulty in the refrigerated carrier business."

Background:  Recruiting and retaining drivers has proven to be extremely difficult in the refrigerated carrier business, costing Hershey Foods and our carriers. Turnover for refrigerated carriers is close to 100%. This causes an added expense for our carriers that is passed from them to Hershey Foods and eventually to our consumers. Develop a survey to determine the reasons behind this high turnover and recruiting difficulty. Who would the survey go to, how would it be administered & tabulated, and what would the questions be?

Details: What questions would you ask either a carrier, driver or potential driver to determine what is lacking in the industry and what we could realistically do to rectify the problem?  Remember, throwing money at the problem doesn’t always work and would increase the cost of our products.  How would you recommend the survey be administered?  How would you ensure candid responses?

Suggested Approaches/Considerations: Be creative!  Think of questions that would prompt realistic answers

Resources: American Trucking Association, Individual Transportation Companies

Judging: We are looking for something realistic, innovative, and easy to administer.   

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Challenge #2 by Hershey Foods US Marketing:

"How can Hershey Foods reach out to Hispanic teen consumers on the Internet in the US?"

Background:  Hispanics are a strong and growing force in America, but are being underserved by Hershey Foods. Recent initiatives to address this include signing popular Mexican singer Thalia to a 3-year spokesperson contract and the acquisition of the Mexican confectionery company Lorena - which markets the popular Pelon Pelo Rico brand. They export the brand to the US, but it is currently underdeveloped here.

According to studies by Nielsen Media Research, one in five teens in the United States (20%) is of Hispanic descent. Between 1993 and 2001, the Hispanic teen population grew 30%, while the non-Hispanic population grew 8% during the same period. By 2020, the Hispanic teen population is expected to grow 62% compared to 10% growth in the number of teens overall.

Regarding internet usage, over 11 million Hispanics are currently online and spend more time online than the average non-Hispanic consumer. While Hispanic internet usage has grown dramatically in recent years, total Hispanic usage is 45%, compared with 75% for overall general market usage. Quick to master new technologies, teens have flocked online with 83% of total Americans currently using the internet.

Details: Hershey is considering what the appropriate role is for the web in marketing to Hispanic teens.

Expectations: Investigate how companies are successfully marketing to Hispanic teens via the web in the US. Identify opportunities for Hershey to leverage the web to meet it's objectives in marketing to this target.  Recommend appropriate strategies, plans and tactics including budget direction.

Resources:

Hershey's Latino website:
www.hersheyslatino.com

Grupo Lorena website:
www.lorena.com.mx

Hershey's website:
www.hersheys.com

Cheskin Research Article on of the Hispanic Teens:
http://www.cheskin.com/p/ar.asp?mlid=7&arid=30&art=1

Hispanic American Center for Economic Research Article:
http://www.hacer.org/current/US064.php

Hispanic Magazine Article:
http://www.hispanicmagazine.com/2001/sep/Features/teens.html

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Hershey Foods Challenge Schedule and Procedures:

Step #1: Registration Forms Submittal (also complete written proposal submittal instructions, below) — Be sure to view the rules, registration and forms. You must submit completed registration forms and contract forms for a Hershey Foods Challenge via US postal mail to:

Let's Get Real
624 Waltonville Road,
Hummelstown, PA 17036
by January 28, 2005

Step #2: Written Proposal Submittal (also complete registration forms submittal instructions, above) — You must submit your written proposal for a Hershey Foods Challenge in acceptable electronic format* via e-mail to:

jpfautz@hersheys.com
AND a Copy to: LGR@epix.net

by January 28, 2005

*Acceptable electronic formats for your written proposal are: Microsoft Word (.doc), Microsoft Excel (.xls), Microsoft PowerPoint (.ppt), or simple text file (.txt). If separate graphics or scanned images are included, they should be in gif, jpg, or jpeg format.

Step #3: Oral Finals Notification — If your solution is selected as a finalist, your team coordinator will be notified by February 25, 2005 that your team has been chosen to present your solution at the oral finals. The finals will be held on Tuesday, April 5, 2005 at Hershey Foods Corporate Headquarters, 100 Crystal A Drive, Hershey PA.

NOTE: Only finalist student team members and their adult team coordinator are invited to attend the oral presentation finals at Hershey Foods Corporate Headquarters. Hershey Foods is not prepared to host student family members or additional school faculty at this facility. Please visit www.HersheyPA.com to view current events and attractions available to the public in the Hershey area.

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