Through this assignment we are going to evaluate the Haagen Dazs brand and the strategy that they're adapting, in order to achieve and keep maintaining the luxury image of the product. The interesting thing with this brand is that it belongs in another of the most valuable brands, despite the fact that it belongs in a very difficult industry for luxury brands, as the ice cream industry which is recognized as a low cost industry. But Haagen Dazs, by carrying on its excellent job in quality and starting of new unique flavors, continues to be enjoying its premium brand position as well as high price and income. This story will prove us how a brand in a minimal price reselling industry and specific target group guidelines can identify its position and build a luxury brand icon and focusing on in customers that are willing to pay prime price to be able to taste the planet best tastes. We will also observe that too much advertising in Television, Radio is not the main element marketing concern, since Haagen Dazs has been mainly developed as an extravagance ice cream due to the "world of mouth" advertising. It is impressive that this brand has made its first advertising Television marketing campaign in 1983, after almost 60 years and having already being famous for its luxurious placement and popular as the creator of the luxury ice-cream category.
Haagen Dazs started out its record in early on 1920s, thanks to the dream of the young Reuben Mattus. Mr. Mattus was working in a family business, transferring along with his bicycle ice products with their customers in the roadways of Bronx in NY. This small family business was expanding business in the same local way until 1960. It had been then that Mr. Mattus got the top decision, reinforced also from his better half, to improve the function of the business and focusing on in further development of their products. He setup the brand name Haagen Dazs and the company begun with three basic tastes, centering always in top quality production. This is the reason why that the elements were only via their country of physical creation. Chocolates from Belgium, vanilla beans from Madagascar, macadamia nut products from Hawaii. On the other hand with other snow cream providers, Haagen Dazs is by using a raised percentage of dairy and cream, to build an original and much more dense glaciers cream. "Fresh cream and egg yolk were used to provide the glaciers creams a rich creamy flavour and fresh skimmed dairy was used for your body and texture of the glaciers cream" http://www. icmrindia. org, (viewed 21 March 2011).
Having reached the top quality the merchandise became famous very quickly, and the demand started growing due to the mouth advertising only. In the start, Haagen dazs glaciers products were only placed in luxury retailers in New York and after were further allocated in the southern coasts of USA. By 1973, the brand was further sent out in the whole cities of United States. The first Haagen Dazs shop has been exposed in 1976, by Mr. Mattus child, Doris. This tactical move was resulted of a huge success and as a result Haagen dazs products were spread in all United States.
In 1983 Haagen Dazs brand was sold in Pillsbury Company and then generally Mills group, since Pillsbury was acquired from Standard Mills in 2001. Pillsbury was truly focused on the imagine Mr. Mattus and the snow cream remained in the same quality level with a big variety of unique flavours, dispersing the variety in more than 100 tastes, including glaciers cream, glaciers cream bars, ice cream cakes, frozen yogurts, sorbets.
General Mills group is working in a worldwide level and has reported in 2009 2009 $14, 7 billion turnovers and world wide web profits of $2, 6 billion. (Matching to Standard Mills annual statement, 2009).
2. Brand Analysis
2. 1. Positioning
Haagen Dazs is put, mainly predicated on its products and service differentiation. As we have referred, they are trying always to maintain the quality because of the special selected ingredients coming only from their physical country of source. In addition the high cream density, without excess air offers truly unique snow cream experience. In order the product quality to be ensured, the company is strictly testing daily not only the suppliers, but also all the stages of manufacturing processes. The business fulfills its brand image with a huge variety produced only by the best elements round the world.
Its position is also predicated on their image differentiation pursuing always a luxury brand strategy. There is a specific custom logo with fantastic colors and dark-colored fonts in order to go the luxurious icon. The custom logo is also followed with the moto "made like no other. " All of the advertisements are focusing in highlighting the luxury flavors of the products and the initial exotic tastes.
2. 2. Target Group
Haagen Dazs has differentiated its concentrate on group right away of its development. While the ice-cream industry was considered worldwide as a low price industry and typically concentrating on in small age groups, haagen dazs has right away been concentrate on men and women, who love the luxurious ice cream flavors. A significant reason behind taking this choice, has been their premium price strategy, since only the financially independent men and women could spend more money for high quality ice creams.
The second target market, are the health conscious people, who are enthusiastic about desserts nevertheless they prefer natural ingredients and low fat substitutes. Concentrating only on both of these target segments, they could have a little market potential, however the income are much higher. With this differentiation Haagen dazs is "playing by themselves" in this interesting market field.
2. 3. Segmentation
Haagen Dazs is segmenting in its business relating to three major segments. These sections are, demographic, socio-cultural and psychographic.
Looking on demographics, the company focuses on adults who've higher income and could spend in luxuries as for example prime price ice-creams. But beside of the age, they often have a tendency to approach couples, by relating many tastes with relationship advertising and pleasure that can be earned whenever a couple tastes a haagen dazs dessert.
The second is the socio-cultural segmentation. Intercultural management has been very successful by the haagen dazs marketers. Big variety of tastes can cover any need matching to each country's habits. For instance, Europeans have some preferences in alcoholic beverages drinking, while Asian folks have personal preferences in teas. Islamic countries are negative in relationship images, while american populations are more enthusiastic on that.
The third section is regarding to psychographic characteristics. There are several people who love luxurious brands and "need" of being members of this brand category. Usually they feel more special, different and in higher quality level than the others. These category of men and women are too psychologically linked to brands and since branding is principally emotional based mostly, this target section is very important for Haagen Dazs. Thus, in the haagen dazs outlets the company tries to train the franchisers to concentrate on a high quality service, behavior and keeping the products within a way that they can be always fresh and delicious.
3. SWOT Analysis
Well known brand synonymous with a brief history of luxury, prime ice cream leader producer.
Strong market position.
Intelligent market targeting and segmentation.
High syndication cost.
Bad image of many franchise shops, non related to the brand image.
Ice cream market keeps growing.
Outside lunching is increasing.
Development of other markets, BRIC market segments.
New pattern in creams placement, i. e. cinemas, ho. re. ca.
Ben & Jerry's competition.
Nestle integration in the top quality price ice cream market.
Increase of ingredients price, engine oil price, distribution cost.
4. Marketing Mix
As we have referred the creation of the merchandise is dependant on high quality materials and rich creamy preference. The presentation is also important, having a particular protective cap to make sure the material in each container. The products are classified by size, in person mugs, family caps, pubs, sundae cones, and high weight plans for mass sales. (5kg, 10kg, etc). Very special flavors are often stated in limited amounts and higher prices, reminding the blissful luxury brand strategy.
Haagen dazs is immediately distributed with refrigerated vehicles to the customers. Customers might be very markets, top quality shops, top quality restaurants, hotels, food industry chains, i. e. , pizza hut, simply burgers, movie places, i. e. cinemas, movie selling retailers, other known chains, i. e. IKEA, sail boats and finally to the haagen dazs franchise shops.
The brand is characterized of a premium price, which is excused due to the elements and the high flavor quality. Price varies among the several tastes. Haagen dazs is still the price head and your competition as for example Ben & Jerry's, employs H. Dazs' strategy.
The product is not so much advertised in media as are Television, radio. It really is mainly marketed in printed themes or templates. All advertisements targeting in express the product quality and the differentiation against competition. Trade marketing is more developed than other means, sponsorships and incidents are also normal methods. Advertising is mainly target in haagen dazs' qualifications.
5. Evaluation of H. D. brand Strategy -Recommendations
Haagen Dazs is an extremely well established brand in the ice cream industry and has been successfully located in many countries worldwide.
Focusing on the men and women has been a amazing idea, because of income advantages, high tighten-emotional human relationships with brand lifestyle. This era is a lot more recognizing and desire high quality, in comparison with the youngest one, who looks more as "turn around" consumers. The business should continue focusing on on the adults, but they must not forget that younger generation is also growing. It might be a good period in start searching their mind and bringing out the brand value to the era as well. Love flavors might not be so successful, because they are mainly dealt with to younger ages. So, H. D. also needs to start target the younger lovers, but with the correct advertising text messages through different civilizations, ethics and moralities. For instance, if you need to address in younger couples, advertising should have more "sexy and funny" images, but you have to pay attention in different moralities. Nevertheless, if the business will establish such campaign, they need to take in thought that it has to be does with a much more spread advertizing communications with regards to the country.
The company is right based on the original ingredients which truth has given them the premium quality recognition worldwide. But taking in consideration that the populace is growing rapidly, the brand might be "prisoner" in its own options. The demand may not be able to be covered from the prevailing ingredient quantities, being that they are reduced a great deal every day. Cutting down might also create price raises and then your brand could face many challenges in remaining in the market. It could be the ideal the perfect time to rethink again their creation recipes, or spend money on ingredients creation worldwide, that will offer them a competitive advantage. Resources and capacities must be prepared in a much better way in order to face the future with more electricity.
In order to build up internationally, they have to target more in the exclusive haagen dazs shops, who are expressing the brand icon in the several markets. H. D. appears weaker in this development in international field and competition in many places is more powerful. They can educate their franchisers, or build Franchise supervisor managers and instructors. Personal relationship and selling must be more developed in this sector of exclusive retailers.
"In Beijing, freezers retailing Haagen Dazs stand proudly in the lobbies of 5 star hotels. The purchase price for a pint of Swiss vanilla: $10, compared to $3 in the U. S. However people don't mind spending money on prestige items, especially if they are foreign. "
This issue has to be serious taken under consideration, since Middle East and the BRIC countries will be the most potential markets so you cannot leave them outside of your expansion strategies. After my research for this assignment, I've came to the realization that H. D. has an extremely small market show in many countries of Middle East. They may have for example to get more in finding flavors more desirable to these populations.
Ice cream is an extremely strong industry, which keeps growing every day. Haagen Dazs reaches as soon as the global leader in this field, but no one is certain that they can be always in this position. Time goes by, changes in lifestyle, leading marketplaces are changing which fact means that marketers of Haagen Dazs should work a whole lot in modify their strategy in the new challenges that are before us. The brand is dominating the snow cream market for many years, but exterior and internal factors should be reconsidered to be able to handle future with success. The marketing mix of haagen dazs is actually impressive and wanted to the brand, the blissful luxury image and brand equity for years. By continue being dedicated in their elements strategy, fixing things that people known as logistics, creation, resources, growth gaps, attention to intercultural ethics-morals, norms, franchising strategy improvement, Haagen Dazs can definitely remain a gold brand and situated always ahead of competition as they have been doing for quite some time before.
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