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Hershey bars have been a staple of the American chocolate diet since the late 1800s, when the company was founded as a subsidiary of the Lancaster Caramel Company. Over the years it has focused on one thing – the consumer sweet tooth. Visit the Hershey website and examine the range of different products the company now offers. Focus in on the Hershey Kisses product. What has Hershey done to keep that little piece of chocolate a favorite over the years? A little research (visit the Candy Professor’s website) may point out a blip or two in the company’s Kisses success story. For example, at one point the company had some dubious rules about how many “Special Edition” brand extensions a retailer needed to carry. Retailers, with already jammed shelves during a holiday season, rebelled, and the rules were dropped. Consumers were unaware of the issue.
Over the years, there have been over 55 extensions of Hershey Kisses. While some have had limited reaction from consumers, most have been extremely successful. Still in your group, discuss why you think that Hershey has been so successful with its Special Edition extensions of the Kisses line. Should it continue to depend on Special Edition flavors? Where would you take the Hershey Kisses brand next?
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Assuming that the current turnover and profits of both the units are comparable, compare the relative benefits and limitations of Materials Requirement Planning (MRP) for these two businesses.
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