Market Analysis of Haagan-Dazs Essay Sample

Jan Phillips is the freshly hired ice pick product-market director for Canada for Haagen-Dazs—the world’s taking trade name of ace premium ice pick ( now available in 55 states ) and the market leader in the U. S. Haagen Dazs although owned by Pillsbury. in Canada is licensed to Nestle. ( hypertext transfer protocol: //www. nestle. ca/en/Products/Browse_by_Brand/haagen_dazs. htm )

Pillsbury says Haagen-Dazs is profitable globally. with entire gross revenues of more than $ 900 million. The company saw its gross revenues grow quickly during the 1990s. but now its markets are confronting important alteration and really aggressive competition. Phillips is responsible for Haagen-Dazs’ ice pick scheme planning for Canada.

Overall. difficult ice pick gross revenues in Canada. have stayed level at merely under 300 million liters. Still. some new entries have made a large splash. Starbucks. the java male monarch. is one such trade name. In its first twelvemonth in grocery-store deep-freeze subdivisions. its Frappuccino bars—in several flavours—were a large hit. Haagen-Dazs. along with a few other ace premium manufacturers. are go oning to turn at rates of 2 to 3 per centum. But most other Canadian ace premium manufacturers are describing level gross revenues. and some are traveling out of concern. The easy handiness of ace premium ice pick in supermarkets has hurt some of these manufacturers who sell through ice pick shops. which specialize in take-out cones. sundaes. and little containers of ice pick. It is besides thought that. at least in portion. the diminution in gross revenues growing of ace premium ice pick in Canada since the early 1990s is due to competition from other merchandises such as lower-calorie yoghurts and low-fat ice pick.

Despite a existent concern about healthy diets. Canadians seem to swing back and Forth in their longings for low fat and rich gustatory sensation. There is some grounds that “dessert junkies” who want to indulge without excessively much guilt are turning to low-fat frozen yoghurt and low-fat ice pick. This has encouraged a figure of ace premium ice pick rivals to offer these merchandises excessively. Pillsbury’s Haagen-Dazs. International Dairy Queen. and Baskin Robbins are selling frozen yoghurt. The Canadian ice pick market is dominated by Nestle and Unilever and both are advancing gourmet versions of low-fat ice pick.

Because of the competition from low-fat merchandises. Haagen-Dazs introduced a line of low-fat ace premium ice pick. The low-fat line contains no more than three gms of fat per functioning. That compares with six times more gms of fat in a half-cup helping of its full-fat versions. Haagen-Dazs believes that its low-fat ace premium ice pick is better savoring than other options. Its belief is that “people like to do every Calorie count. ” Having worked on the low-fat point for more than two old ages. it developed a procedure whereby a concentration of dairy proteins from lactose-reduced skim milk give a mouth-feel that approximates that of a higher-fat merchandise. Haagen-Dazs sells its low-fat merchandises in a assortment of spirits.

Most ice pick merchandises are considered economic system and regular brands—priced at $ 3. 00 to $ 7. 00 for 2 liters. Super premium ice pick retails for $ 4. 50 to $ 5. 95 a half liter. . The retail monetary value for a half liter of Haagen-Dazs is normally over $ 5. 00. The low-fat version is comparably priced to the full-fat merchandise.

Many other Canadian ice pick manufacturers have turned to stop dead yoghurt for growing. Frozen yoghurt gross revenues were in a slack for a long clip because many people didn’t like the prostitute gustatory sensation. But after the merchandise was reformulated it started to win clients. The difference is that today’s frozen yoghurt tastes more like ice pick.

The yoghurt market leader. TCBY ( World Wide Web. tcby. com ) . which had gross revenues of merely about $ 2 million in 1983. has risen to over $ 100 million in gross revenues. It Numberss over 2. 500 stores worldwide and is franchised in over 67 states. In Canada. yoghurt shapers are utilizing aggressive publicity against ice pick. TCBY ads have preached: “Say adieu to high calories—say adieu to frost cream” and “All the pleasance. none of the guilt. ” And the ads for its non-fat frozen yoghurt emphasize: “Say adieu to flesh out and high Calories with the great gustatory sensation of TCBY Non-fat Frozen Yogurt. ” ( hypertext transfer protocol: //www. tcbycanada. com/ )

Baskin Robbins has introduced yoghurts in many of its Canadian shops and has even changed its name to Baskin Robbins Ice Cream and Yogurt. ( hypertext transfer protocol: //www. baskinrobbins. com/ ) Haagen-Dazs besides offers yoghurt in most of its shops. Although the bustle of consumer involvement in low-fat yoghurt and low-fat ice pick surely created some new market chances. it is non clear how consumers will respond to these merchandises over the longer term. One ground is that many consumers who were ab initio excited about being able to purchase a good tasting. low-fat frozen sweet have realized that low fat does non needfully intend low Calorie. In fact. Jan Phillips has been seeking to place a merchandise that Haagen-Dazs could bring forth that would offer consumers great gustatory sensation. low fat. and low Calories all at the same clip. One possibility she is earnestly sing is to present a line of water ices based on alien fruits like Chinese gooseberry and Mangifera indica and that use low-calorie sweetenings.

A water ice is fundamentally the same as sherbert. but European water ices normally have an icy texture and include less milk. This is the kind of merchandise that Jan Phillips has in head. She thinks that it might hold an upscale entreaty and besides be different from what is already in the premium ice pick instance.

On the other manus. naming a merchandise by a different name doesn’t do it truly new and different. and basic sherbert has been around for a long clip and ne’er been a large marketer. Further. consumers don’t think of water ice in the same manner that they think about a rich-tasting bowl of ice pick. You don’t hold to convert people that they might wish premium ice pick. Sorbet. on the other manus. isn’t something that consumers crave and make a particular trip to purchase.

Further. Phillips is really witting that the Haagen-Dazs trade name should stand for high quality and the best ingredients. Yet. it’s non clear that consumers will believe of water ice as a premium merchandise. Rather. they might merely see it as ground-up ice with some seasoning thrown in. But if sorbet isn’t the right manner to travel with new-product development. how should Haagen-Dazs counter the competition from other low-fat ice pick trade names like Ben & A ; Jerry’s and other new entries to the ace premium class?

Measure what is go oning in the ice pick market. particularly sing the evident levelling off of ace premium ice pick gross revenues and the possibilities for growing of the water ice market. Is Jan Phillips’ thought about turn overing out a light fruit sorbet a good thought? Would it be better to utilize the Haagen-Dazs trade name name or a different trade name name? What else. if anything. would necessitate to be different about the scheme? Why?

Marketing Mix

Merchandise
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– Premium quality ice-cream. water ice. frozen yoghurt and bars – Premium packaging designs

Monetary value

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– Premium Pricing
– Different monetary values in different states. but still considered expensive everyplace

Topographic point

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– Its ain ice pick shops all over the universe
– Served in high terminal eating houses to affect clients
– Besides available in convenience shops along with other deal trade names

Promotion

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– Offer particular voucher monetary values one time in a piece
– Particular price reductions temporarily
– TV & A ; newspaper advertizements

SWOT analysis

Strengths: – use natural ingredients
– international trade name acknowledgment – good adapted to diverse civilizations and gustatory sensations – one of the top trade names in the premium ice-cream market

Failings: – offer fewer spirits than major rivals – contain high calorific content
– mark section comparatively little

Opportunities: – increasing its mark market

Menaces: – increasing cost of ingredients
– consumers going more health-conscious – competition from other premium ice-cream manufacturers

Position in the Ansoff Matrix

Merchandise development: focused on new merchandises in the bing market.

Haagen-Dazs has been successful for over half of the century. What are the beginnings for these successes is ever disputing sellers of Haagen-Dazs itself and the rivals as good. Fixing good selling schemes is ever the policy craved profoundly into sellers squads. Having an overview of the current market state of affairs of ice pick industry and Haagen-Dazs profile will supply some new penetrations for the hereafter development of the company. Along with that. market cleavage. mark. and positioning determined by Haagen-Dazs are deserving brooding profoundly into. Before acquiring any farther stairss. sing carefully the external and internal factors that influence the operating of Haagen-Dazs is necessary in coming up with impressive tactics.

Succeed or failure in making values for clients in order to capture back values in return depends largely on the selling mix that Haagen-Dazs using into its schemes. Product. monetary value. topographic point. and publicity schemes are all assisting Haagen-Dazs differentiating with other rivals. Keeping the singularity of its concern is straight associating to the endurance of Haagen-Dazs in a competitively labored market. Thus. looking into its failings and menaces to happen out new ways of making things.