Industry Introduction: Ice Cream Market analysis
Competitors
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Case Profile: Hagen-Dazs
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Case Profile History: the idea for the Hagen-Dazs brand dates
back to the early 1920s, NY Reuben Mattus in 1976, opened the first
Hagen-Dazs Shop in 1983, sold to The Pillsbury Company The brand
name is still owned by General Mills but is licensed to Nestl in
the US and Canada.
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Case Profile Philosophy: find the purest and finest ingredients
in the world and craft them into the best ice cream, sorbet, and
frozen yogurt available.
Case Profile: Hagen-Dazs Distribution channels: Supermarkets,
convenience stores and Hagen-Dazs shops (flagships) distribution
partnerships: restaurants, airports, entertainment Over 700
branches(retails) in 54 countries around the world 37 chains in
Taiwan
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Case Profile: Hagen-Dazs Package and Price: 473 ml----- NTD$320
100ml------ NTD$100 1 scoop---- NTD$135 Profitability: Raises more
than 14.9 billion revenue, over 1.8 billion net profit a year
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Business Model
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Vertical Integration Ingredients acquisition: Farms in
Madagascar (vanilla), Poland(strawberries),US, France (dairies)
Packaging: France Processing: global Retail channels: Chain
stores(shops), convenience stores, etc. Manufacturer &
Marketer: General Mills
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Business Model Vertical Integration Ingredients acquisition
Farms in Madagascar (vanilla), Poland(strawberries),US, France
(dairies) Packaging France Processing Global Retail channels Chain
stores(shops), convenience stores, etc. Manufacturer &
Marketer: General Mills
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Business Model Integration economic benefit: Quality control
and assessment Efficiency from resource arrangement Cost-down
Distribution
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Business Analysis
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SWOT Analysis Strength Pioneer Strong brand recognition Really
innovative brand Excellent image : brand good quality products
International presence Weakness Seasonal product High price (could
be a strength) The customer base targeted too narrow High calorie
products Opportunities Development of individualism : individual
cups + others format available Increase of demand in exotic
products Threats Very competing market for example cold stone
materials price been expensive SWOT
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STP Analysis Segmentations Segment Variables Description of the
variables Demographic Adults who have higher income Young, middle-
high class people Couples( flavors with romance advertising )
Social-Cultural Big variety of flavors cover need according to each
countrys habits. European preferences in alcohol drinking Asian
preferences in teas Psychographic People who love luxurious brands
Need of being members of this brand
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STP Analysis Target Hagen-Dazs Focus on 2 targets 1. Adults who
love the luxurious ice cream flavor 2. Health conscious adults who
prefer natural ingredients and low fat substitutes General Ice
Cream Industry -Low price industry -Targeting in small ages
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STP Analysis Position Luxury product Super-premium Ice cream
without either artificial colorings or additives. Naturally
aromatized ingredients (Ex :Madagascars vanilla) Selected
inclusions (pecans, grilled almond, cookies) High differentiation
according to its competitors
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STP Analysis Position The Brand repositioning: Being exclusive
Being accessible to middle-class people An individual ice cream A
sharing one
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Comparison Expensive than regular ice cream 5 to 10times
Emphasis on keeping the selection of the best quality ingredients,
pure natural ingredients Price Top ice cream brand and establish
brand image of luxury fashion Brand position Focus on brand and
quality, the New York Times said the Haagen-Dazs ice cream in
Rolls-Royce Product Position Do not do TV ads, only the rich visual
impact of print ads. Advertising The main stores are selected in
the core business center or high traffic locations crowd Store
position
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Pricing Strategy
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Cost Structure Variable Cost Material Transport Tariff Fixed
Cost Retail shops Machinery Utensils Operating Cost Wage Rent
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Premium Pricing Also called Skim pricing Keep the price of a
product artificially high In order to encourage favorable
perceptions among buyers, based solely on the price. Asymmetric
Information Market status as a Luxury good Less elastic, Less
substitutes Strategic Considerations Factors
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Value-based Pricing Kind of Psychological Pricing Tactics 1.The
high price is based on invest heavily in ensuring product quality.
2.The higher priced products, but also the promise makes consumers
believe that product quality is higher.
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Marketing Strategy
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Elasticity Segment Customer Potential customer Unusual eating
ice cream High elasticity Regular customer Like eating ice cream
but non Exclusive brand Medium elasticity Loyalty customer
Exclusive brand only Low elasticity
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Characteristic Dependence Continue to introduce new products
for different festivals localization Introduction of ice cream moon
cake Mid-Autumn Festival Customized Customers able to collocate
their own flavor and enjoy creative ice cream
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Retail distribution To prevent channel conflict, Haagen-Dazs
ice cream sold through outlets other than franchised or licensed
retail dipping shops is ordinarily confined to prepackaged pints
and quarts, bars and single serving for on- premises consumption at
restaurants.
Slide 33
Retail distribution Restaurant will regard Haagen-Dazs as a
high level merchandise and luxury brand as a store selling
point.
