Haagen-Dazs was established in Bronx, New York in 1961 by the Polish immigrants Reuben and Rose Mattus. Haagen-Dazs is the pioneer in the luxury ice cream market for manufacturing the best quality ice creams made with only purest and finest ingredients. It started with three flavours Vanila, Chocolate and Coffee. The first retail store was opened by the company in Brooklyn, New York in November 15, 1976. Haagen-Dazs has a strong brand loyalty for its high quality and premium ice cream all over the world. "The name does not derive from any of the North Germanic languages; it is simply two made-up words meant to look Scandinavian to American eyes. This is known in the marketing industry as foreign branding. Mattus thought that Denmark was known for its dairy products and had a positive image in U.S." (Source: Wikipedia.org). Haagen-Dazs mainly cater their adult customers, which is quite different from other ice cream manufacturers. The Haagen Dazs products are ice cream, ice cream bars, ice cream cakes, sorbets and frozen yogurt. The ice creams are of "super premium" brands which, means it is quite dense and very little air has been mixed to maintain its thickness. Initially Haagen Dazs success was based on people's word of mouth and praise and nevertheless for its high quality and good taste. The most interesting part of this company's success is depended on its high quality, without much advertising.
[...] However, Haagen-Dazs tests all relevant production steps including testing the ingredient supplier and equipments, testing the taste, and finally, the way the product is being delivered to the franchise shop, in order to make sure that everything is perfect Innovation strategy Innovation strategy is based on the product innovation and reducing the cost of production. Haagen-Dazs believes that innovation can excite buyers, which is helpful for the companies to enhance more shares in the established ice cream industry. Haagen-Dazs was the pioneer in trying exotic fruit flavours like green tea and kiwi. [...]
[...] For example, Haagen-Dazs uses its strong brand image to advertise itself as a premium ice cream in China. Haagen-Dazs has flag stores in China which are luxurious decorated to maintain its luxury brand image. High Quality, Natural, Globally sourced ingredients. Compared with the other ice cream brand, Haagen-Dazs ensures high quality to the customers. Its promotion strategy is to use the natural sources which are globally sourced to make natural and high quality ice cream. Furthermore, Haagen-Dazs monitors each stage of the production, in order to ensure quality. [...]
[...] It is amazing to observe that, for 5 dollars one can buy two boxes of Haagen-Dazs in US, the birth place of the company, whereas, in China, a small ball of ice cream costs 5 dollars. The following diagram shows that, the Haagen-Dazs use the high promotion, high price and rapid skimming price strategy. Source: M04KTM lecture note The variable cost of the Haagen-Dazs means that all of Haagen-Dazs material comes from USA. So the variable costs are cost of material, cost of delivery and the tax when it entered in China Promotion The promotion has an important place in the marketing mix; it makes the customers aware about the product. [...]
[...] The introduction period for Haagen-Dazs' new product will be longer than its maturity, because Haagen-Dazs needs a lot of advertising to make its new product familiar to the customers. Launching a new flavour of ice cream is very difficult, because only advertisement is not enough to establish in the market, but also have to make the customers experience it. However, when the competitors find the potential of this new product, they will quickly copy it and launch a similar product to compete with Haagen-Dazs. [...]
[...] The report will indicate what make Haagen-Dazs so successful and how Haagen-Dazs compete in the ice cream market and also provide recommendation for Haagen-Dazs. The definition of marketing orientation Marketing versus production orientation marketing oriented firm (also called the marketing concept, or Customer focus) is one that allows the wants and needs of customers and potential customers to drive all the firm's strategic decisions. The firm's corporate culture is systematically committed to creating customer value. In order to determine customer wants, the company usually needs to conduct marketing research.” (Source: wordiQ.com. [...]
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