In a down economy, it’s fantastic when you hear about an ad spending strategy paying off
January 29th, 2009 by Greg Straface
Hershey reported a fourth-quarter and full-year earnings report this week that exceeded expectations of analysts, some great news for this economy. This was in part from price increases, increased advertising, and consumers trading down from premium chocolates. Yes folks, increased advertising if you can believe that! Sure we could equate the continued growth of Hershey to stress levels of this turbulent economy, and people eating a little more, I’m sure I’ve packed on a few lbs., ok let’s be honest, I have, but let’s look at the positive side of the advertising market at this one, we are seeing an organization increasing their spending levels to take advantage where their competition is not. You have to give credit to Hershey for focusing on their core products at the lower end of the scale as opposed to their premium chocolates where people are looking to save a buck here and there. AdAge provides a nice overview of this through an editorial “Boost in Ad Spending Pays Off for Hershey.” If you are hearing about other companies that are having success in this market, I’d enjoy hearing from you, let us know, we all can use some good karma.
