Hershey: Incorporating Artificial Intelligence as a Partner in Product and Marketing Innovation

This is a case written and researched by Greg Kihlström for Sage Business Cases. The case is available here.

The pressure to incorporate and effectively utilize artificial intelligence (AI) in organizations is growing. This case discusses how The Hershey Company adopted AI to accelerate innovation in product development and creativity in marketing new and existing products. By incorporating generative AI platforms such as Ai Palette and ZS, Hershey reduced its product concept-to-market timeline from several months to mere weeks. The platforms also rapidly synthesized massive consumer data, revealing unexpected flavor trends like Blueberry Muffin Kit Kat. Students will be prompted to consider relationships between the techniques that Hershey employed and the key tenets of Innovation Diffusion Theory (IDT), which include capitalizing on relative advantage, compatibility with existing processes, observability of quick wins, and effective internal communication channels to build momentum for innovation.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

This is a case written and researched by Greg Kihlström for Sage Business Cases. The case is available here.