Business Research Methods
Date: December 6th 2010
The Amazing Success of Haagen-Dazs in Shanghai
Haagen-Dazs ice cream, why is it so popular among Chinese people? The main purpose of this research is to understand the reason of Haagen-Dazs being so famous and popular in China, Haagen-Dazs’s success comes from how they managed to sell the Ice cream to the Chinese consumers, the brand is not selling just ice cream they are also selling luxury and status. Some important elements for this research are to have knowledge about the ice cream market in China and also to know who is the competition for Haagen-Dazs in China. The competitions are brands that offer the same quality and same range of prices but that don’t offer an extra thing to the
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1.3 Companies that control the ice cream market in China. There are three main leading companies that have the biggest percentage of the Chinese ice cream market share, Inner Mongolia Yili Industrial Group Co., Ltd., Unilever and Nestlé (“Ice Cream in China”). There are other smaller companies and although they have influence in the market this is minimal, for example Hangzhou Wahaha Group Corporation, Baskin Robbins, Dairy Queen, Cold Stone Creamery, Haagen-Dazs and Swensons Ice Cream among others (“Research and Markets”).
There are approximately 1.3 billion people in China (The World Factbook, China) and it is becoming one of the largest ice cream markets on earth, the industry entered a period of rapid development since 2004 and the growth is going to continue. There are many local and foreign brands competing in the market and selling different types of ice cream, consumers can find options for every taste and budget. This research will be focused mainly on Haagen-Dazs ice creams compared against its main competition in China Cold Stone Creamery, these two brands might not be the biggest actors in the Chinese ice cream market but they have managed to become popular and fashionable among Chinese consumers.
2. Competition.
Although there are many ice cream brands competing in the market there are only some that represent a direct competition against Haagen-Dazs, one of those is Cold Stone
Ice-Fili’s ice cream are mainly sold through kiosks and minimarkets (80%). However Nestle also own his distribution channel.
In the first place we have to see in general why people buy ice creams, and what value it has to them this type of product and then we have to analyze the different types of markets because the reasons will change accordingly with the type of (children or adults, for example) and product (premium or not, for example). So basically the answer to this question is that the reason why consumers buy an ice cream depend of some variable factors that I will try to explain here. Consumers just buy a product because of the value it has to them, because it satisfy a need they had and possibly they didn´t know. In the case of Ice creams, in general people buy the normal type of ice cream because of the flavor, the ice cream is competing with other
First of all, every little detail is necessary for a job applicant. The interviewer has to select specific questions in order to find the best applicant for the job.
An interior project called Gelatoria is being developed. To make this successful, it is important to become familiar with the industry not just by knowing the components and ingredients of product but also through familiarity with other factors correlated with the success and survivability in the market. The typical gelato shops in Italy are characterized by its unique atmosphere imitating the European lifestyle. Its homemade frozen desserts are the center of attraction not only for adults but for all consumers of all ages. Gelato is indeed popular in Italy as it is enjoyed by all kinds of consumers (D’amico, Nevstrueva, Guan, Gon, Annini, and Yang 8). This paper aims to provide a discussion of the cultural, economical and social factors that affect the industry of gelato, ice cream, yogurt and other frozen desserts. These factors will provide a deeper understanding why certain products become successful in specific regions and how culturally diverse products could be introduced to other nations.
We believe that Ice-Fili, to stop the decline in its market share, should focus on the market opportunities in the Russian ice cream market. The main opportunity seems to lie in consumers’ behavior. They only consider ice cream as an "on the go" snack. Ice-Fili should use all possible means to create a change in their way of consumption. It would be doubly useful as it would both increase ice cream sales in restaurants but also in supermarkets so that families eat them at home.
The chocolate industry operates in an oligopoly market. An oligopoly is when a small number of firms dominate the market. While not a quite a monopoly, an oligopoly market is still controlled by a select number of companies and the market can be directly impacted by one or two major firms (Oligopoly Investopedia). Hershey’s has control of the largest market share, holding 44.4% (U.S Market Share). Mars Incorporated follows behind in second by holding 28.9%. While these two companies hold much of the control and power within the industry, LIndt/Ghirardelli and Nestlé maintain a combined share of 15.1% of the industry’s market. This means that four companies hold a combined 88.4% of the market, with two of them holding a combined 73.3%. The market was not always this way however. Up through the 1960s many candy suppliers were regional.
The ice cream industry is very a competitive field. Blue Bell has many competitors with a bigger budget and a bigger distribution channel. The company still manage to produce top brand ice cream to please its customers. According to the U.S Market for Ice Cream, “Sales nearly $12.2 Billion in 2005 with the sales of frozen, yogurt frozen desserts at scoop shops, restaurants and vending outlets. Three years ago there was a tremendous interest in ice cream nutrition panel. Other competitors were introducing product such as; low crab ice cream, no sugar added and low fat ice cream.
This is in contrast to Haagen Dazs, which differentiates its product by making it seem like the most indulgent ice cream with flavours such as “Secret Sensations: Meringue and Raspberry Fondant”, and slogans such as “A world of indulgence”. Phrases such as “Waiting only makes it sweeter”[4] serve to echo the sinful delight that consumers can expect from their products. Despite selling similar products at a similar price range, Ben & Jerry’s has an entirely different value proposition, target market, and selling point. Therefore, based on the competition in Singapore, Ben & Jerry’s decided to
Ice-Fili is the top ice cream producer in Russia. Currently, the company is experiencing tough competition with Nestle, Baskin-Robbins and regional ice cream producers. Its loss in market share due to their poor quality decisions-making after Russia became an open marketing in 1992. Nestle took great advantage of Ice-Fili’s low reaction adjustment and is taking over their market.
Ice-Fili’s marketing approach and product distribution could be seen as weaknesses in the company’s primary activities. In 2001 the firm started its first TV marketing campaign years after competitor’s advertised through the media outlets. To date Ice-Fili is still very inexperienced and far lacking of marketing strategies deployed by Western competitors such as Unilever and Nestle. Not only does Ice-Fili need to market more fiercely against competitors within industry, it must also compete against other consumables such as beverages and snacks. Another weakness is the distribution that is handed over to several distribution companies. There is a much higher chance (twice as likely) to find products of its biggest competitor Nestlé than those of Ice-Fili. Another detriment is how ice cream is viewed socially. Currently ice cream is primarily an impulse purchase. If Ice-Fili can change this outlook, it would result in an enormous
Hagen-dazs entered Beijing market in 1998 after establishing two stores in Hong-Kong. Hagen-Dazs only store in Beijing was located in a popular shopping district next to posh international hotel. The store was located very close to Baskin Robbins flagship store. Wang believed Hagen-dazs positioned its store as upscale, full service life style serving westernized yuppies of Beijing. Hagen-dazs products include ice- cream, ice cream bars, fancy deserts and cakes. Most of the cakes were made to fill specific customer order. Hagen-dazs had deep pockets to market its products in Beijing spending 2,000,000 Rmb to promote grand opening of store in Beijing. It had dignitaries and celebrities at the grand opening of the store.
Ben & Jerry’s Homemade, Inc. has been in business since 1978. Approximately 40% of the world 's frozen dairy desserts, 5.6 billion liters per year, are manufactured at more than 450 U.S. ice cream plants. This makes the United States the largest producer of ice cream and related products in the world. With the world 's largest milk supply, an abundance of land, and investments in research & development, U.S. frozen dairy dessert production has remained
Goals- Dippin’ Dots want to be able to expand where they can sell their product. Since retail locations can only offer the product at 10 to 20° below zero, special storage and serving freezers are required, as well as specially designed cryogenic transport containers in order to move the product. This as well as other factors have limited the distribution of Dippin’ Dots to only serve the away from home segment of the ice cream market, which accounts for $13.9 billion. If they can expand where they sell their product, they can increase sales and gain a large portion of the market.
Besides sales increment, the number of ice-cream manufacturers, parlour and restaurants has grown and they are gaining popularity by introducing new flavours of ice-cream and providing a comfortable environment. Supermarkets play a role in supporting the sales by selling multipack ice-cream and bulk ice-cream. (SeowMIee, 2011) Hence, we will use PEST, SWOT and Porter's five forces analysis to analyse the industry.
At the beginning, this market segment represents about 30% of the total potential sales. In the current years, there are few ice-cream produces on the markets that are designed for this segment, because of there are increasing group of consumer in this segment are more concerned and aware of the implications of diet on their health. Most of there consumers do not buy ice=cream as a consequence, such as they thought ice-cream have high calories and not good for