Haagen-Dazs target consumers are the younger generation which are fashionable and in the “income pyramid peak” which looking for the “excellent ice cream”. . In positioning the target market, for example, Haagen-Dazs’s China Road continued its inception marketing strategies. In the time when many competitors considered that China’s domestic market is caught in a price war, Haagen-Dazs entrust on its excellent sensitivity and marketing tools, opened up a high-end market. Thereafter, a precise understanding of consumer’s psychology is indispensable.
Before Haagen-Dazs entering into new market areas, Haagen-Dazs does careful analysis of the domestic consumers; this eventually provides better assistance for marketing and branding. Haagen-Dazs apportion to retain key customers. Protects is customers and win the consumers equally important, Haagen-Dazs leave its high-end customers to a smaller target consumer crowd. Therefore, most of their marketing and advertising is print ads, and published within certain media. It do not only save costs, or enhance advertising effects.
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Simultaneously, Haagen-Dazs also selectively cut the other retail channels to expand their retail side and reach the home ice cream market. Haagen-Dazs advertise the lifestyle of “enjoy the perfect”, to inspire people to buy high quality of life. While in arrangement of ice cream, Haagen-Dazs join importance to make an environment in which the taste of Haagen-Dazs ice cream has become a memorable experience: this is the so called “Haagen-Daz moment”. Haagen-Dazs propose various flavors of ice cream, which is designed to approach the need of dissimilar tastes and every with a intention to give to costumer to enjoy the amazing taste.
International Environment Internal Environment This refers to factors existing within a marketing firm. They are also called as controllable factors, because the company has control over these factors : a) it can alter or modify factors as its personnel, physical facilities, organization and function means, such as marketing mix, to suit the environment. The factors the affect Haagen-Dazs are: Top Management : The organizational structure, Board of Director, professionalization of management.. etc..
Factors like the amount of support the top management enjoys from different levels of employees, shareholders and Board of Directors have important influence on the marketing decisions and their implementation. Finance and Accounting: Accounting refers to measure of revenue and costs to help the marketing and to know how well it is achieving its objectives. Finance refers to funding and using funds to carry out the marketing plan. Financial factors are financial polices, financial position and capital structure.
Research and Development : Research and Development refers to designing the product safe and attractive. They are technological capabilities, determine a company ability to innovate and compete. Manufacturing : It is responsible for producing the desired quality and quantity of products. Factors which influence the competitiveness of a firm are production capacity technology and efficiency of the productive apparatus, distribution logistics etc. , Purchasing : Purchasing refers to procurement of goods and services from some external agencies. It is the strategic activity of the business.
Company Image and Brand Equity : The image of the company refers in raising finance, forming joint ventures or other alliances soliciting marketing intermediaries, entering purchase or sales contract, launching new products etc. External Environment External factors are beyond the control of a firm, its success depends to a large extent on its adaptability to the environment. The environmental factors that are in its proximity. The factors influence the company’s non-capacity to produce and serve the market. The factors are : 1) Suppliers: The suppliers to a firm can also alter its competitive position and arketing capabilities. These are raw material suppliers, energy suppliers, suppliers of labor and capital. According to michael Porter, the relationship between suppliers and the firm epitomizes a power equation between them. This equation is based on the industry condition and the extent to which each of them is dependent on the other. The bargaining power of the supplier gets maximized in the following situations: a) The seller firm is a monopoly or an oligopoly firm. b) The supplier is not obliged to contend with other substitute products for sale to the buyer group. c) The buyer is not an important customer. ) The suppliers’ product is an important input to the buyer’s business and finished product. e) The supplier poses a real threat of forward integration. 2) Market Intermediaries : Every producer has to have a number of intermediaries for promoting, selling and distributing the goods and service to ultimate consumers. These intermediaries may be individual or business firms. These intermediaries are middleman (wholesalers, retailers, agent’s etc. ), distributing agency market service agencies and financial institutions. 3) Customers : The customers may be classified as : ) Ultimate customers: These customers may be individual and householders. b) Industrial customers: These customers are organization which buy goods and services for producing other goods and services for the purpose of other earning profits or fulfilling other objectives. c) Resellers: They are the intermediaries who purchase goods with a view to resell them at a profit. They can be wholesalers, retailers, distributors, etc. d) Government and other non-profit customers: These customers purchase goods and services to those for whom they are produced, for their consumption in most of the cases. ) International customers: These customers are individual and organizations of other countries who buy goods and services either for consumption or for industrial use. Such buyers may be consumers, producers, resellers, and governments. f )Competitors: Competitors are those who sell the goods and services of the same and similar description, in the same market. Apart from competition on price, there are like product differentiation. Therefore, it is necessary to build an efficient system of marketing. This will bring confidence and better results. g) Public: It is uty of the company to satisfy the people at large along with its competitors and the consumers. It is necessary for future growth. The action of the company do influence the other groups forming the general public for the company. A public is defined as ‘any group that has an actual or potential interest in or impact on a company’s ability to achieve its objective. ’ Public relations are certainly a broad marketing operation which must be fully taken care of. International Market Entry Mode Haagen Dazs has franchises throughout US and many other countries around the world.
Haagen Dazs is using Franchise mode to enter the market across oversea by set up Haagen Dazs shop in many countries. Franchising mode is form of licensing whereby the franchisor ( the seller ) gives the franchisee ( the overseas buyer ) the legal right to undertake business in a specified manner under the franchisor’s name as Haagen Dazs brand in return for royalty payment usually in the form of percentage of sales ( IM study guide, 2011 ). Haagen Dazs franchising spread to North and South America, Europe, Asia, Africa, Middle East .
It also provides franchising in many local locations in each country. Likewise, Haagen Dazs franchisee is also distribute Haagen Dazs ice cream product in the retail store, convenience store and supermarket. In my opinion, Haagen Dazs is choosing the correct entry mode to expose Haagen Dazs ice cream over many countries around the world. Franchise is the best way for Haagen Dazs to enter the international market because ice cream is like food or beverage product that it taste need to be standard as it original company like it own Haagen Dazs.
By using Franchise, Franchisor teaches Franchisee on how to make Haagen Dazs ice cream, serving service and run the business to be the same as its original Haagen Dazs in the US. Additionally, ice cream product has short shelf life, not even in 1 day which needs to keep the product only in the cold place otherwise it is melting very easily. To compare with other product that has long shelf life upon 6 months – 1 year or above 1 year such as beer product, this kind of product is appropriate to use direct exporting. International Competitive Strategy And finally the stratergy of Haagen Dazs marketing:
Positioning and Target Haagen-Dazs tagets a niche market segment with high income. Haagen-Dazs is positionned with a strong differentiation regarding its competitors, and this was strengthened by the identification of the product in the category of luxury items. The brand is classified in the premium quality ice cream without coloring agents nor additives, with ingredients flavored naturally (Vanilla of Madagascar, Belgian chocolate, strawberries), selected inclusions (pecan nut, fresh grilled almonds, cookies of California), specific know-how and obsession of the quality.
Product policy * brand name and product name are the same * packaging easily recognizable * Haagen Dazs acts on three segments: the jars of 500ml, the mini-jars of 100ml and the huge sticks. * Haagen Dazs has introduced innovation into its products policy: flavors that differentiate the brand from its competitors. Price policy * Coherent with its positioning as a luxury ice cream * Price 2 – 3 times more expensive than competitors * Price in France twice the one of the USA Distribution policy * Exclusive shops: Stores, tea lounge * Hypermarkets Partnerships: Restaurants, coffee shops, airlines, entertainment companies (Disneyland) Communication policy * Sponsorship in big events: Roland Garros, Cannes festival, Trophy Lancome * Use of fashion principles in advertisements (collection spring and summer): coherence with luxury brand positioning The International Marketing Mix Haagen Danz launched with the aim of creating a ‘super -premium’ ice cream so they achieved it by using marketing with the 4P’s : Product, Price, Promotion, Place. Marketing mix of Haagen Danz: Product: High quality: Most people see the product with good package and good quality. There are many kinds of flavor and customer can choose what they like with different taste and different package. There are types of product like classic flavors, limited editions, gelato,sorbet,frozen yogurt,cups,bars. -Finest Ingredients: The ingredients was fine that lot of people can taste the different flavor on what they choose. They also include special ingredients in the menu like banana split ice cream. so they put extra banana with ice cream and other toppings.
It will good to let the customer try the new ingredients. Price: -Set high to give exlusive image: It includes with goods image with high quality of product. They also pay for the package which has been offered in good shape when customer want to take away. So the seller must set a high price and also match with the other competitors. Promotion: -Glossy magazines: Usually most teenagers buy magazines. So the seller of haagen danz can promote it by putting some small brochure so everyone know more about haagen Danz and new type of flavour. Word of mouth: After customer eat haagen danz and they like it, he/she will tell to his/her friend that the ice cream is nice. So it spreads to other people and to the other country. It will help to make haagen danz more popular. -Free Samples: When customer do not know what flavour they want to choose, the seller can give free samples so that the customer know which taste is good and they will buy it. It the best way for them to try and it will satisfy them. -Adverts next to exclusive brands: They can promote or advertise in the TV to show large audiences about haagen danz.
So many people can see why they like it and it will be useful to let them know. Place: -Only in exclusive locations: They put in a place where lot of people are around. For example, inside the mall or popular place. Because when customer pass by the store of haagen danz, they can buy it. It also can put in the store so that customer can easily buy what they like. The distribution of haagen danz: First, they need to make an arragement to come up with an agreement with other countres for their product to be distributed internationally.
They need to discuss about the marketing mix( product, price, promotion,place). Second, they produce the ice cream from the factory. They will divide different flavor in different factories. The workers need to design the package of the product. There are different types of shape for the package( small size, large size). Then, they put the ice cream inside the package. Third, they need to distribute specific packages to specific destination. Then the retailer(distributor) of the country in which the product is being exported to, must pay for the shipment and supply into which the entire hipment of the product will be stored or delivered into a storage house, where it will be distributed again to other retailers in different locations in that specific country Fourth, the retailer can start to sale the product to the customer. They retailer can be place in popular place where lot of people are around. They can promote to the customer so that it will help to attract other people. Last, the customer can choose whether they buy the product or not. It according to the customer mood,taste and loyalty.
They can try the flavor before they buy the products like free samples. So if they like it, they will buy the ice-cream. Customers are interested to the product of design and images. References Justhaagendasz (2012) “ market strategies” available from: http://justhaagendazs. wordpress. com/market-strategies/ Justhaagendasz (2012) “Products” by Kapferer (1997) available from: http://justhaagendazs. wordpress. com/products/ HAAGEN-DASZ. COM (2011) “SHOPS” AVAILABLE FROM http://shops. haagen-dazs. com/ http://brand-audit. blogspot. sg Wikipedia of Haagen Dazs