Market Analysis of Haagan-Dazs
Haagen-Dazs
Jan Phillips is the newly hired ice cream product-market manager for Canada for Häagen-Dazs—the world’s leading brand of super premium ice cream (now available in 55 countries) and the market leader in the U.S. Haagen Dazs although owned by Pillsbury, in Canada is licensed to Nestle. (http://www.nestle.ca/en/Products/Browse_by_Brand/haagen_dazs.htm)
Pillsbury says Häagen-Dazs is profitable globally, with total sales of more than $900 million. The company saw its sales grow rapidly during the 1990s, but now its markets are facing significant change and very aggressive competition. Phillips is responsible for Häagen-Dazs’ ice cream strategy planning for Canada. Overall, hard ice cream sales in Canada. have stayed flat at just under 300 million litres. Still, some new entries have made a big splash. Starbucks, the coffee king, is one such brand. In its first year in grocery-store freezer sections, its Frappuccino bars—in several flavours—were a big hit. Häagen-Dazs, along with a few other super premium producers, are continuing to grow at rates of 2 to 3 percent. But most other Canadian super premium producers are reporting flat sales, and some are going out of business. The easy availability of super premium ice cream in supermarkets has hurt some of these producers who sell through ice cream stores, which specialize in take-out cones, sundaes, and small containers of ice cream. It is also thought that, at least in part, the decline in sales growth of super premium ice cream in Canada since the early 1990s is due to competition from other products such as lower-calorie yogurts and low-fat ice cream. Despite a real concern about healthy diets, Canadians seem to swing back and forth in their yearnings for low fat and rich taste. There is some evidence that “dessert junkies” who want to indulge without too much guilt are turning to low-fat frozen yogurt and low-fat ice cream. This has encouraged a number of super premium ice cream competitors to
Jan Phillips is the newly hired ice cream product-market manager for Canada for Häagen-Dazs—the world’s leading brand of super premium ice cream (now available in 55 countries) and the market leader in the U.S. Haagen Dazs although owned by Pillsbury, in Canada is licensed to Nestle. (http://www.nestle.ca/en/Products/Browse_by_Brand/haagen_dazs.htm)
Pillsbury says Häagen-Dazs is profitable globally, with total sales of more than $900 million. The company saw its sales grow rapidly during the 1990s, but now its markets are facing significant change and very aggressive competition. Phillips is responsible for Häagen-Dazs’ ice cream strategy planning for Canada. Overall, hard ice cream sales in Canada. have stayed flat at just under 300 million litres. Still, some new entries have made a big splash. Starbucks, the coffee king, is one such brand. In its first year in grocery-store freezer sections, its Frappuccino bars—in several flavours—were a big hit. Häagen-Dazs, along with a few other super premium producers, are continuing to grow at rates of 2 to 3 percent. But most other Canadian super premium producers are reporting flat sales, and some are going out of business. The easy availability of super premium ice cream in supermarkets has hurt some of these producers who sell through ice cream stores, which specialize in take-out cones, sundaes, and small containers of ice cream. It is also thought that, at least in part, the decline in sales growth of super premium ice cream in Canada since the early 1990s is due to competition from other products such as lower-calorie yogurts and low-fat ice cream. Despite a real concern about healthy diets, Canadians seem to swing back and forth in their yearnings for low fat and rich taste. There is some evidence that “dessert junkies” who want to indulge without too much guilt are turning to low-fat frozen yogurt and low-fat ice cream. This has encouraged a number of super premium ice cream competitors to
References: …………………………………………………….…………47 I. EXECUTIVE SUMMARY Haagen-Dazs has been successful for over half of the century. What are the sources for these successes is always challenging marketers of Haagen-Dazs itself and the competitors as well. Preparing good marketing strategies is always the policy craved deeply into marketers teams. Having an overview of the current market situation of ice cream industry and Haagen-Dazs profile will provide some new insights for the future development of the company. Along with that, market segmentation, target, and positioning determined by Haagen-Dazs are worth dwelling deeply into. Before getting any further steps, considering 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 creating values for customers in order to capture back values in return depends mostly on the marketing mix that Haagen-Dazs employing into its strategies. Product, price, place, and promotion strategies are all helping Haagen-Dazs differentiating with other competitors. Maintaining the uniqueness of its business is directly relating to the survival of Haagen-Dazs in a competitively strained market. Thus, looking into its weaknesses and threats to find out new ways of doing things is critical than ever. Haagen-Dazs needs to target more segments, changing its marketing programs to fit with the new segments will never be redundant. It should also think of gaining control over those loopholes threatening its reputation and ethically consolidating its commitment to customers as a back wall for new launching.