Answer question #1

Hershey recently created a line of upscale chocolates called "Cacao Reserve by Hershey's." The company created fancy packaging, priced the product at the high end, and did little mass marketing for its new product. Initial sales were disappointingly slow even though the premium chocolate market is growing nicely, with brands like Ghirardelli faring well. As a consequence, Hershey almost immediately (within six months) dropped its prices and started mass advertising. 1. Using concepts in chapter 8 , why do you think Hershey failed in its move into the premium chocolate market? 2. Do you think the adjustments were the most appropriate, or could Hershey have taken other steps? EXPLAIN IN DETAIL. Hershey recently created a line of upscale chocolates called "Cacao Reserve by Hershey's." The company created fancy packaging, priced the product at the high end, and did little mass marketing for its new product. Initial sales were disappointingly slow even though the premium chocolate market is growing nicely, with brands like Ghirardelli faring well. As a consequence, Hershey almost immediately (within six months) dropped its prices and started mass advertising. 1. Using concepts in chapter 8 , why do you think Hershey failed in its move into the premium chocolate market? 2. Do you think the adjustments were the most appropriate, or could Hershey have taken other steps? EXPLAIN IN DETAIL