Strategies used by the world’s leading ice-cream company
A company with a focused strategy serves a particular market niche. A focused strategy based on low cost is possible if a market niche exists which customers need a low cost product to satisfy. However Haagen Dazs target up market customers willing to pay premium prices for the product with world class features. Collecting ingredients from all over the world gives it a competitive advantage over rivals in the industry. In addition the company sustains its competitive advantage by posing many sources so that it is harder for rivals to catch up.
Furthermore the rate at which they produce these sources is rapid as competitors can easily copy adding to their rising success.
Most markets contain a market segment willing to pay premium prices for the finest products. Haagen Dazs is the worlds leading ice-cream brand name and has been sufficiently triumphant more than doubling the size of the ice-cream market sector from ï¿½45million to an astonishing ï¿½94million.
The strategies which they used to launch their product changed the way British eat ice-cream. Starting off with three flavors, vanilla, chocolate and coffee the company had grown into a mass producing, mass money making business now manufacturing hundreds of flavors. Adding value to their products produces a hefty profit margin as customers aren’t just paying for the ice-cream itself but all the other luxuries such as the elegant tub, the adventurous flavors even the advertising of the product is adding value. The strategies used are very sneaky as you will find that if your stripped the product to the bare minimum and were just paying for the ice-cream then it would be drastically lower than the total cost you pay from the shop shelves.
Furthermore it seems strange that you pay the same amount of money for a simple ice-cream such as vanilla to an appetizing flavor like sticky toffee pudding but again this is adding value to the less exciting products. This problem is sometime solved by the company expressing it in a more bold way by printing Belgian Chocolate as opposed to chocolate, as this makes it sound better and more expensive. Limited addition, low fat, sorbets, frozen yogurts and bars are all examples of how Haagen Dazs have expanded from their original three flavors. It proves how they have been highly successful and how the strategies have been spot on as it has given them the flexibility to spread.
So why has Haagen Dazs being so successful? Noticing a market niche is one thing but storming in and making the spectacular appearance they did is another!
Haagen Dazs is manifested in product changes, new process changes, new approaches to marketing and new forms of distribution. The product is marketed at adults due to a market niche in the segment. Many ice-creams are for children and the advertisement portrays fun enjoyable images which attract kids towards it, however Haagen Dazs have totally blemished this idea and brought out a new factor of fun for all adults. The way in which they advertise their product is understandable mainly to adults and it provides them with the enjoyment factor.
The ice-cream is created using distributed ingredients from all over the globe making it a worldwide selling product. Creating lone stores for the ice-cream is something that has never been seen before and the enterprising behavior whilst designing this product explains simply what you have to do to be successful. Risk taking in this situation has proved extremely unbeaten as rival competitors are stumped. The product which they created they are able to deliver in a superior manner combining price with features and although it is expensive people are willing to pay.