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INTRO

Haagen-Dazs had been the pioneers in the market for creating distinctive and indulgent flavor experiences by simply marketing for an untapped portion – the adult ice cream lovers. The Haagen-Dazs manufacturer quickly produced a devoted following. Their early accomplishment was created by simply word of mouth and praise. Without the benefit of advertising the story of your incredibly wealthy and creamy confection propagate rapidly. At first, it was only available at fabulous shops yet soon division expanded

In 1983 Haagen-Dazs was purcahased by The Pillsbury Company, which will remained devoted to the tradition of superior quality and creativity on which Haagen-Dazs was founded.

Ever since then, it has become a global phenomenon. Goodies lovers the world over now recognize the unique Haagen-Dazs logo while synonymous together with the ultimate super-premium ice cream. However , for the company to reach where it is today, a honest marketing efforts was taken on from its early days to understand customers and their demands.

Since the beginning, Haagen-Dazs offers kept a keen focus on growing an internal & external advertising orientation.

They obtained their current competitive strong points to establish high grade pricing from:

*Developing the brand with a great attached good perfection and luxury

*Using the finest materials to deliver product excellence

*Invested in buyer research to know tastes and preferences of customers

*Used picky distribution and did not mass market until the minimum important mass of opinion commanders were proven

*Did not change their very own objectives in between

*Used creativity and innovations to support brand identity

This report can discuss in detail the evidence that Haagen-Dazs truly does, indeed, practise the marketing concept of keeping customers requirements as a priority for the rest of the business enterprise to follow.

RIVAL ANALYSIS

Year by season, new products and their competing things have created the field and have successfully created a position for themselves. This phenomenon is usually greatly supported by the open up down plan of the local government to the people originating from other countries for arrangement and tourism. Ice lotions are a merchandise that has certainly not seen their particular prime in the U. A. E. The potential can be tapped in a meagre contact form. Not that the commodity is at short source. There is sufficient ice-cream offered even at the moment. But , there is certainly great range of habitualizing the habitants of this place to consume a lot of product, by exploiting the U. A. E. environment to its best potential.

The Usa Arab Emirates has an your favorite ice cream market of Dh140 , 000, 000, yet it includes one of the least expensive consumption (6. 00 per capita/ pints) of ice-cream when compared to Sydney which eats 36. 87 per capita / pints and UNITED STATES 30. apr pints. In spite of these low figures, Haagen-Dazs began their Middle East venture by opening it is outlet in Al Diyafa Street in Satwa and from then on speedily opened up coffee shops, bookstores in Deira City Center, Rigga Street, Palm Remove Shopping Mall and Thunderbowl. Yet , prior to their very own entry in to this market, an effective industry examination was undertaken, similar to the a single described below using the Porter’s Industry Examination.

Rivalry in the Industry – Medium

Rivalry is usually strong because of a number of elements. Ben & Jerry’s and Haagen-Dazs control the global super-premium ice cream marketplace. Each of these competition has approximately 42% in the market, while using remaining 15% being divided up between a number of smaller firms that compete upon either a neighborhood or nationwide basis. Nevertheless , within the U. A. Electronic., Haagen-Dazs manufactured its entry while Bill & Jerry’s was still focusing on Europe.

Worldwide, Haagen-Dazs was competing for any larger slice of that which was a shrinking pie. The ice-cream sector has been stagnating in the recent times. In addition to this, fresh government labelling regulations, a rise in client price level of sensitivity, and other factors have triggered further slow growth. In the U. A. E. yet , the major competitor at the time was your highest costed ice-cream too stage, namely Baskin Robbins. Baskin Robbins ice-cream parlours are still not really considered direct competitors because they do not represent the image and class linked to a Haagen-Dazs café.

Further more, industry business lead times intended for copying a fresh flavour happen to be lowering, so that it is harder to maintain a competitive advantage in this area. Haagen-Dazs has been facing strong competition from a relatively similar priced competitor ‘London Dairy’ which has situated itself being a premium ice-cream but still made itself available at every gas station and convenience store in town. Haagen-Dazs quite readily imitated these people and are available nowadays in choose petrol pumps and supermarkets.

Threat of new entrants – Weak

Nevertheless there are a significant number of opponents in the market, the biggest firms have such huge market stocks that they are somewhat “insulated” against smaller competition. Barriers to entry into this market happen to be relatively low, especially as a firm that already competes in the premium or normal ice cream market could easily convert to the super-premium industry (though not with guaranteed success). There is not an important threat for the new firm to enter the marketplace and create itself as being a rival to the main opponents though brands like Unikai, Kwality and London Milk have been bringing out ice products to attract this market.

Substitute Products – Fragile

This is not a tremendous force, though there are a number of substitute goods for this marketplace. Because this is the super-premium goodies and fat free yogurt market, plus the products have prices that reflect this super-premium standard, the customer who is enthusiastic about this type of method probably going being an goodies lover that may be willing to pay the extra price to get the higher quality. One of the generating forces through this industry is a ability to make a range of flavors, and to retain introducing fresh ones. Many sales could possibly be attributed to the purchaser attempting to gratify a wanting for some non-traditional flavour of ice cream. Such a buyer may possibly not settle for a substitute item. Though there is certainly sure to always be some competition from items such as good quality cakes and cheesecakes, various other frozen dessert products, and other snack goods such as potato chips and dips, these products aren’t a significant component to this super-premium ice cream market.

Power of Suppliers – Fragile

This force is also fragile since, occasionally, Haagen-Dazs is paying very well above marketplace prices in order to stay faithful to their objective of producing super-premium quality ice-cream and unique flavours. Should the need arise, it would be quite easy for them to find a new supplier for any of its products. The benefit the Haagen-Dazs and Baskin Robbins include over the smaller producers happen to be that given that they purchase on the global range, being these kinds of a large client, gives them more power in the supplier/buyer marriage.

Power of Buyers – Good

This is naturally not a product that is necessary to the consumer. There is also a declining degree of the price flexibility of demand. This places more of the electrical power in the romantic relationship into the hands of the customer. Producers from this market must respect this kind of and be hypersensitive to client attitudes with regards to their products or face decreasing sales. Most of this involves flavours that they produce and for that reason, Haagen-Dazs is usually continuously searching for on more recent and more unique flavours to keep their customers continuously attracted to all of them.

FOCUS ON CLIENT NEEDS

Haagen-Dazs continuously researches its market because this is precisely what got them into the business to begin with. Effective promoting is based on 3 key elements, the marketing beliefs, market segmentation and consumer behaviour. Haagen-Dazs has been noted to practice the consumer-driven philosophy where they depend on research to find out consumer personal preferences, desires and wishes before production actually starts. This beliefs stresses the advantages of marketing study to be done in order to better understand exactly where or whom a market is and to create a strategy targeted toward that group. The core business they are in is production of ice-cream. This industry primarily is targeted on consumer tastes and preferences and only study can help recognize these.

However , it is not enough that research is conducted only prior to creation of a particular flavour. They must constantly research the movement of this taste in the market and get responses from buyers about this. Researching the market has given Haagen-Dazs a large number of advantages, including

*Unique environmental insight, that they used to spot opportunities others overlooked – Reuben Mattus found a segment available in the market he thought to be un-served, specifically, the mature ice-cream enthusiast segment. While other companies concentrated on alluring kids with ice cream, Mattus decided to faucet the more mature, mature part that had the non reusable income to ‘indulge’ themselves.

*Are proactive to competitor moves using them carefully – Haagen-Dazs quite easily met most of competitors’ Bill & Jerry’s moves by continuously bringing out new flavors focussing issues niche while some lost emphasis and were mass marketing heir snow creams. This can help makes them increasingly competitive constantly striving to protect their turf.

*Identify client wants thus focussing powers on providing them with exactly what they need – research helped these people realise that Japanese take pleasure in tea and therefore introduced the Green Tea flavour which was an instant success in that market.

They may be not the only ones commencing market research. Great britain Super Premium ice cream market had a selling value of £56 million in the UK in February 2150. Ben & Jerry’s accounted for fully 83 per cent from the overall expansion in the UK Super Premium marketplace in 2150. Multiple corner shop account for 70 per cent of all Super Premium ice cream bought from the UK, in addition to September 2k Ben & Jerry’s secured parity with Haagen Dazs in terms of sales through this channel, with Ben & Jerry’s obtaining a 52 per cent share of the marketplace as against 48 percent for Haagen Dazs. Inside the U. A. E. even though, despite getting of moderately higher price, the brand proven itself quite comfortably as being a ‘must try’ product among the list of elite and middle-class. This is just what Haagen-Dazs experienced hoped to attain when it initially came in this article. The administration were relying on the expat population with the U. A. E. who had been already knowledgeable about the brand to spread word of mouth about their high quality, unique flavours and prestige connected.

MARKET SEGMENTATION

As simple since it looks, every little detail of the your favorite ice cream is meticulously planned pertaining to the final consumer to buy the item. Of the cash that goes in to paying for the ice cream, practically 80% is usually returned in to marketing costs for the business. The rest of the twenty percent represents some of the production costs. Consumers are an integral part of the market and the market research helps identify the core market sections that Haagen-Dazs caters to.

Industry segmentation is definitely the process of determining a specific group of characteristics that differentiate one particular group of buyers from the rest. In respect to ice ointments, although many persons eat all of them, the market may quite easily always be segmented on bases of taste and price. Some individuals prefer top quality ice cream made with real sugars and cream because of its flavor while others simply cannot tell the difference in quality and would purchase primarily based in price and availability. Lower-priced competitors are into mass marketing while premium priced glaciers creams manufacturers have followed a niche strategy to target the particular one single portion consisting of rich upper-middle to upper class section.

Haagen-Dazs runs on the few main segmentation bases for dividing their industry, namely, demographic, socio-cultural and psychographic. Underneath demographic segmentation, they focus on the cash flow bracket of shoppers. Their products are mainly aimed at the affluent with higher throw-away income to shell out on frivolous luxuries just like super-premium your favorite ice cream. Although they tend not to segregate flavors by gender they do usually highlight he romantic and sensuous image of ice-cream by simply featuring lovers in all their very own international advertisements. They tend to link their particular ice creams directly to sexual in order to emphasize that the indulgence and satisfaction felt is similar in equally cases and simply as satisfying for internal desires. This kind of leverage gives it extreme importance among the mature population because they can appreciate this feeling and hence relate consumption of this product directly to this feeling.

The socio-cultural segmentation looks at numerous cultures and nationalities and their preferences. Selected cultural organizations tend to have comparable needs specially when it comes to meals, confectionery and drinks. With this, Haagen-Dazs has taken into account various national likes and personal preferences in their impressive product line simply by introducing flavors like Cheesecake ice cream intended for the UK, Green tea supplement ice cream to get Japan, The belgian chocolate for the people in East Europe, and so forth.

Finally, probably the most important sort of segmentation facets in this case is definitely the psychographic segmentation. To be interested in eating super-premium ice cream, people need to be a part of a particular life-style segment. They should technically always be among those that enjoy the luxurious and indulgence associated with the brand. Haagen-Dazs has been portrayed to become a reflection of pleasure and for this reason, the manufacturer creates an ambience behind its eateries too making sure the project that household furniture is comfy and in deep shades of browns, burgundy and red to incorporate a feeling of cocooning and closeness.

Using these kinds of segmentation means, Haagen-Dazs features narrowed down it is business to cater to particularly two key target marketplaces, namely

*Affluent, pleasure in search of adults who have are generally brand conscious, innovators & tendency followers

*Health conscious, youngsters who have an interest in desserts yet prefer 100 % natural ingredients and zero fat substitutes

Simply by identifying only two concentrate on segments and focussing on the small but profitable portion of the industry, Haagen-Dazs is practising a distinct segment market approach. They have been fairly successful in identifying and catering for this segment and this can be determined by their very own growth coming from gourmet retailers in Nyc to the global presence now in over 54 countries. Identity which sectors are rewarding to market to is insufficient. Companies need to design a marketing mix to cater to these segments. Another section discusses Haagen-Dazs current marketing blend for the mentioned sectors.

MARKETING MIX

INDULGENT & AFFLUENT ADULTSHEALTH CONSCIOUS ADULTS

PRODUCT

– All items made with spectacular ingredients to boost the luxury and fine style by sourcing nuts coming from Hawaii, vanilla from Madagascar, and candy from Belgium, etc .

– Ice cream flavours ranging from Bailey’s Irish Cream and Blueberry Cheesecake to Cherry Vanilla and Delicious chocolate Caramel, and so forth Velvety Gelato in flavors from Cappuccino to Raspberry. Ice cream, iceberg, gelato pubs for the adult taste in all flavours of the r�cipient

– Frosty yoghurts where fat content is derived directly from fresh cream and clean egg-yolk. Sorbets are sweetened only with ‘pectin’ which can be derived from fruits sugar therefore ensuring not any extra manufactured sweeteners

– All less fat bars & tubs are marked with accurate nutritional information and fat content around the packaging to ensure this segment knows precisely what it’s eating

PRICE

– premium costing AED 7-10 a details while regular ice-creams are merely priced at a maximum of AED five per deal

– not any price discount rates or promotions to keep based on the luxury and prestige linked to the brand

– for the conscious, Haagen-Dazs have not decreased price to try and attract all of them simply because this kind of segment already exists plus they are willing to pay a simlar amount and purchase the item

PROMOTION

– although primarily advertising was only through word of mouth, today Haagen-Dazs uses its print out adverts to entice buyers worldwide. As a result of regulations in the Middle East place, they have refrained from connecting their merchandise attributes to sex, closeness, alcohol, and so forth and have focussed on showcasing the enjoyment of eating ice cream made from the finest elements in the world

– advertising just for this segment features focussed on the truth that you can nonetheless maintain an excellent body but still treat yourself for an occasional ice-cream and not add on pounds for it

– available displays in the actual range of calories in every scoop and endorsements coming from fitness conscious stars will be evidence enough of how Haagen-Dazs is consistently trying to attract people from this segment.

PLACE

– cafes with comfortable seating for lovers, bar stools, darkish lighting, wealthy colours every help to make an appearance of closeness & take pleasure in

– every cafes are situated on primary streets or malls exactly where young adults tend to hang out or perhaps socialise as a result enabling optimum accessibility intended for the high level

– target for this portion has shifted away from genuine cafes where they may be tempted by the non-low fat companies towards supermarkets, petrol sends and other easy areas where they will pick a deal while their on go.

The current advertising mix does quite properly meet the needs of the point segment and my just recommendation to Haagen-Dazs should be to start aimed towards emerging portions such as the well-off teenage portion that would have an overabundance time to use in eateries an who be more conveniently convinced to realize flavours.

Haagen-Dazs major success factor was the way it positioned on its own in the minds of the consumer. It took an organized marketing outlook to achieve this placing. All explained and done, Haagen-Dazs primary business remains to be in the production of your favorite ice cream. However , difference using the finest products and growing of a superior ice cream company was the positioning they portrayed. The next section will look in how they achieved this.

PLACING

Superior taste and texture are primary to Haagen-Dazs and their definition of quality stretches much further more. From the elements they want to the quality recipes they develop, from the the labels materials they will select to the care with which they offer the ice creams, from the atmosphere of each Haagen-Dazs café to the attention which they provide, the Haagen-Dazs brand quite obviously indicates its commitment to perfection. However , it is not enough that they can believe they may have done this kind of. At the end of the day, the purchasers would base their decision on the real aspects of the brand such as the flavor of the goods, the quality of service offered at the cafes etc.

Product-wise, Haagen-Dazs ensures to maintain the high quality and luxurious taste associated with the brand by using best-selected ingredients from around the earth and making certain fresh cream is used for a rich creamy flavour, fresh skimmed dairy for body and feel and fresh egg yolk for sensitive flavour

Like a matter of differentiation, they advertise that their particular ice cream is ALL ICE CREAM purchasing a new that the goodies is properly rich because it contains no excessive air. Additional, unlike mass marketed brands, no unnatural flavourings or perhaps colours are used. Haagen-Dazs prefers to find better natural alternatives and make sure that their customers learn about this.

Though most companies limit their product quality screening only in their manufacturing method, Haagen-Dazs usually takes it a step further to ensure that quality checks take place each and every stage of production on and tests ingredients suppliers, checking manufacturing processes and equipment daily, tasting ice cream in-store regularly for heat and flavor.

From this we can see how Haagen-Dazs positioning is located primarily upon product & image difference. For this to be understood by customers, Haagen-Dazs has attempted to convey this kind of through just about every available conversation vehicle including the deep maroon & gold logo, to the Scandinavian brand and letters, and the seductive adverts bringing up the various spectacular flavours.

The only possible aspect that they need to change with regards to their very own positioning should be to start co-branding the product inside the U. A. E. with luxury events, shows, etc . Although at the moment premium ice creams just like Godiva and Haagen-Dazs happen to be served at all the major five-star hotels in town, they have not really ventured into sponsoring or conducting situations. Locally kept international-level fashion shows, horses races and golf tournaments are splendid opportunities to hyperlink the brand together with the ‘best with the best’.

Being primarily based with an actual product and its augmented offerings, Haagen-Dazs has not been extremely successful in differentiating usana products from its services. The next section will look with this in further detail.

SUPPORT VS . ITEM ASPECTS

Haagen-Dazs product factors have already been discussed and this section will now give full attention to the services that they can offer that acts as proof of their promoting orientation. Haagen-Dazs has a global website which offers customer information concerning all the hottest flavours, unique recipes, current promotions, incidents, links to other Haagen-Dazs international websites and even use of their dedication programme known as REWARDS. This really is a free membership to all their very own loyal customers who like to take pleasure from the uncompromising quality and indulgent flavor of their products.

This gives consumers VIP usage of all Haagen-Dazs sponsored events, fashion and art reveals, early story of all new items, trial discount coupons and totally free gift vouchers. An excellent means to keep consumers coming back to these people time and time again. The web page also gives investors information on how to open a franchise store and organization highlights which gives a better comprehension of the company’s early beginnings.

The principal mode of service at Haagen-Dazs was through their particular numerous high-street cafes. The website is a feature that was established of late but for actually receive the welcoming, customer-friendly service, 1 must go to a café. All Haagen-Dazs restaurants are well staffed with well-trained staff whose primary concern is to keep their customers truly feel relaxed in the cozy ambience of the outlet. The staff are always impeccably dressed in fine outfits and are sure to be there at every client’s beck and call whether asked for or certainly not.

The feeling is almost as if becoming served within a five star motel. Even in the various coffee shops, bookstores, club subscriptions are offered for all regular buyers. These clients get free liberties like participating flavour roll-outs, sample assessment and focus group meetings. Each one of these features support Haagen-Dazs continuously cater to their niche affluent segment whom are willing to pay that extra premium with this high grade of service. Extra services offered at the coffee shops, bookstores are the free of charge ‘love’ post cards and mugs that are given as special gifts to promote the impression of love, intimacy, sensuousness and passion that the company is immediately linked to.

SUMMARY

Haagen-Dazs’ main challenges will probably be faced through the growing mass media effect on buyer preferences and tastes. New segments will be emerging regularly and they need to continuously innovate and expand their marketplace to incorporate these. In the eighties, the high quality brands experienced intense competition from consumers changing choices to low-fat, fat cost-free and light ice-creams. Now, the media is really convincing people who they should have to indulge and this offers resulted in various ice cream online marketers to come up with items that are both indulgent, but not high in calories. Presently, Haagen-Dazs just has frozen yoghurts and sorbets to cater to this kind of segment, nonetheless they need to develop newer dishes and ideas for getting this segment to enjoy more of all their ice-cream.

Haagen-Dazs need to realize that the world is moving to a general financial trend better earnings, more disposable income and leisure time and they need to understand that their not just the affluent that are eating their very own ice-creams but also the ones from the lower and upper middle-income segments. They may have focussed in capturing the innovators on the market but ought to start producing their marketing strategies to include the early and late majorities into this section because they will pose like a larger industry. The brand provides repositioned on its own from getting exclusive to being available yet high class and top quality.

This must be further capitalised on by convincing industry move it from getting something to be eaten with the café to something in all family fridges to indulge in when important guests arrive for dinner. All their clear promoting orientation features given all of them an established manufacturer. They was able to educate buyers on how they need to indulge themselves occasionally regardless if it means getting a relatively more pricey ice-cream. Right now they need to modify focus to monitor international tastes and trends to raised predict changing customer tastes and tastes.

BIBLIOGRAPHY

LITERATURE

Lancaster, G., and Massingham, L., 93, Essentials of Marketing, 2nd

edition, McGraw Hill Book Company

Dickinson, P., year 1994, Marketing Administration, The Dryden Press

CONTENT

Business News Publishing Group, September 2001, Sales Level, Prices up for Top doze Ice Cream brands, Dairy Foods

Liebman, B., May 2002, Frozen Puddings Fatten Up, Nutrition Actions Healthletter

Reyes, S., seventh February 2000, Haagen-Dazs Runs Dulce’s Reach, Brandweek

Wallace, K., next July 2002, Consumer Reviews has the Scoop on the Best Ice Cream, Consumers Union of U. T.

WEBSITES

www.haagendazs.com