Hershey's Bliss Product Launch: Great idea, but poorly executed

Shortly after I finished writing a paper for my graduate-level marketing class about how Hershey's should reposition its product in order to capture market share from low-price competitors like Mars and Nestlè, I was surprised to see a t.v. commercial for a new Hershey's line of chocolates called Bliss. Wrapped in richly colored foil and priced higher than similar Hershey's products, these bite-size chocolates have been marketed as a "premium" addition to the brand's product mix.

In tough economic times like these, when discretionary income may be more limited, items that consumers perceive as luxuries, such as chocolate, are often the first for which they cut spending. Fighting for fewer consumer dollars, chocolate companies are under greater pressure to achieve the competitive advantage of differentiation. In Hershey's case, the brand has failed to stand out from other low-cost, basic-flavor chocolate producers like Mars and Nestlè, and the launch of Bliss is an attempt to change that.

While the company is wise to try moving higher on the flavor spectrum with Bliss, it doesn't appear to have changed its product substantially enough to achieve a more gourmet status. Victoria at the Candy Addict blog says, "The most appealing thing about Bliss chocolates is probably their tasteful packaging... If you want to actually eat your Bliss... find [it] someplace else." Cybele at Candy Blog echoes Victoria's sentiments, "[Bliss chocolates] might have a great texture but lack the chocolate punch that would really make them a rich indulgence." At the same time, Hershey's has priced the Bliss chocolates higher than other options in its product mix. Generally, customers don't respond well when the price of a product increases without any improvement in quality (different packaging usually isn't enough to fool us!). Further, the higher price puts the chocolate into the realm of competing with higher-end options like Ghirardelli, which have a much more gourmet flavor. My outlook for Bliss, therefore, is not a rosy one. I think Hershey's was trying to take the easy way out by introducing a new product to get in on the premium market instead of initiating the branding overhaul* that may really be needed. (I mean, how many of you actually knew that Hershey's is made with whole milk from local farms in Pennsylvania? I rest my case.) Oh yeah, I almost forgot-- I've heard that Hershey's is partnering with Starbucks on a premium chocolate-- now that's a wise move, if you ask me!

* Please note: I am in no way suggesting that the Hershey's brand is weak because it has, in fact, build a very strong reputation as an American classic with a rich history, but its brand is definitely not associated with premium/gourmet chocolate at this time.