iris chen 11307100411 candy sze...

Iris Chen 11307100411 Candy Sze 11340690108

Content

1. High End Food & Beverage Market Overview

2. Company & Brand Overview

3. Business Model

4. China Market Analysis

5. STP Analysis

6. Competitor Analysis

7. Marketing Mix & SWOT

8. Retailing System

9. Communication

10. Conclusion

1. High-end Food &

Beverage Market

Overview

Market overview - world

Reached US$1 trillion,

grew by 12%

Grew by 8%

Source: Bain & Company's

annual research presented

this past October to the

Altagamma Foundation

The global high-end food and beverage market has continued to soar

Overview of high-end food and beverage market ：

World

Market overview - china

Overview of high-end food and beverage market ：

China

The demand for luxury food in China is growing at a fast speed.

• Household disposable income grows impressively

• The trend of trading up continues

• Consumers tend to pursue consumption of enjoyment

• Recent years have seen a large import of luxury food and

a preference of foreign brands

Next


Household disposable income grows impressively


The trend of trading up continues.

Back

2. Company &

Brand Overview

The Rolls-Royce in the ice cream industry

Brief introduction

Founded Bronx, New York (1961)

Founder Reuben Mattus

Headquarter California, United States

Products Ice cream

Parent

Founder: Reuben Mattus A young entrepreneur with a passion for quality and a

vision for creating the finest ice cream

Company Overview

Brief introduction

We select only the highest quality, all natural ingredients to

create Häagen Dazs. Häagen Dazs contains no preservatives,

artificial flavours, stabilizers, additives or colorings.

This commitment to quality is the reason why Häagen Dazs ice

cream is the finest in the world.

Philosophy

A sweet story

products

3 Categories:

(1) Retail Products

(2) Shop Specialists

(3) Indulgence

Retail products

Frozen Yogurt

Bars

Crispy Sandwich

Retail Products

Ice Cream - Pint (473ml) - Mini Cup

(100ml)

Gelato

Sorbet

products

Smoothies

Cakes

Sorbet Sipper

Baristo

Shop Specialists

Cups and Cones

Sundaes

Dazzler

Shakes

products

Fondue

Sushi Platter

Teppanyaki

Mooncakes Indulgence

products

Exclusive to festivals:

Easter Mid-Autumn Festival

Halloween Christmas

products

Key Business figures

In the global ice cream market

Over 900 stores in over 54 countries

its sales grew by 7% in 2011

contributing US$750 million to total General Mills sales

captured 2% market share

Key Business figures

In China

More than 200 shops in

China, over 40 cities

Over 5,000 freezers, each cost

US$15,000

Revenues were estimated at

over $100 million in 2010

Annualized growth rate is 21%

over 2008-2010.

3. Business Model

Business model

Niche market: Adults who have high income and emphasize lifestyle

“Much more for much

more” ↓

Higher Quality,

Higher Price

Production cost Transportation cost Import duty

Product sales Franchising fees

Own retail stores, Partner channels

V.I.P. club – loyalty discount, Feedback on product

Branding, Production, Marketing & Sales

Raw materials, Producers, Partner & retail network

High class restaurants, Hotels, Coffee shops, Cinemas, Airlines, Entertainment companies

4. China Market

Analysis


Overall characteristics of global ice cream market ：

(1) The world ice cream sales rise year after year

- Sales volume exceeded $ 65 billion in 2010

- Global ice cream sales are rising 2.5% annually

- Production was about 1.6 billion gallons in 2009

- Per capital consumption of 21.5 liters

(2) The industry is dominated by two global giants: Nestle & Unilever

- Controlling more than one-third of the worldwide market


Overall characteristics of China’s ice cream market ：

(1) Large current and potential market

- Production and sales volume hit above 3.5 million tons in 2010

- Realized sales revenue is about 33 billion RMB

(2) Market penetration rate stays high and stable (>73%)

(3) Fast developing speed and larger industrial scale

- Annual sales values of China’s ice cream reach about 28 billion

- Increased with annual average speed of 25％ after 2005


Overall characteristics of China’s ice cream market ：

(4) The industry is still in its infancy compared to developed countries

per capita consumption

of ice-cream( 2008 )

America： 23 kg

Nederland： 18 kg

Australia： 17 kg

Sweden： 16 kg

Japan： 11 kg

China： 1.7 kg


Overall characteristics of China’s ice cream market：

(5) Ice cream unit prices in China will continue to rise as a result of the

increasing demand for premium ice cream

(6) It is forecast to report a stable growth

in the future with increasing

demand of premium

ice cream, driving an

increase in sales

Source: China Marketing & Media Study (CMMS)

5. Segmentation,

Targeting,

Positioning

segmentation

(1) Demographic segmentation

- Income: High disposable income

- Age: Adults

- Status: Couples

(2) Socio-cultural segmentation

- Various national tastes and

preferences

(3) Psychographic segmentation

- Lifestyle: enjoy the luxury and

indulgence

targeting

Core target consumers:

- 20-35 years old young adults

- Middle- high class people in the income pyramid peak

- Pursuing leisure and self gratification

Niche Marketing Strategy

80/20 Principle

80% of the profits of enterprises are created by 20% of customers

positioning

Luxury brand positioning

To deliver “the ultimate experience” in taste and quality

- Product differentiation

Super-premium ice cream with high quality:

High cream density with no excess air

Without any artificial colorings or additives

Naturally aromatized ingredients

- Image differentiation

Specific logo

Motto: “Made like no other”

6. Competitor Analysis

Competitor analysis

Domestic Brands Foreign Brands

Competitor analysis 1

BEN&JERRY’S:

Founded： Burlington, Vermont (1978)

Founder： BEN COHEN & JERRY

GREENFIELD

Parent： Unilever NV

Feature： High quality & high price

Target： High-income customers

Outlets： In 26 countries

□ It’s Haagen Dazs’s main competitor in

America.


Nestle:

Founded： Nestlé and Anglo-Swiss

Condensed Milk Company

(1905)

Founder： Henri Nestlé, Charles Page,

George Page

Feature： wholesome natural ingredients

ever-changing tastes

□ The world’s largest ice cream company.


Wall’S:

Owner： Unilever

Country： United Kingdom

Introduced： 1922

Tagline ： ICE Cream makes u

HAPPY

□ Wall’s is ranked the second in China's

ice cream market with a retail value

share of 7% in 2008.


Yili Ice cream:

Parent： Inner Mongolia Yili Industrial

group

Founded： China（1993）

Founder： Pan Gang

Feature： wholesome natural ingredients

Target： customers of all age

Ice cream market share: 17% in China

□ Sales volumes have been No.1

nationwide for continuous ten years.

Source：Ying, Wang, “Who Will Become Ice Cream King?" China

Business Weekly, March 20th, 2005

(China,2005)

Competitor analysis

Haagen dazs Nestle, Wall’s Yili

Ice cream category

Premium Mainstream Low-end

Positioning High life quality

and ultimate experience

Affordable well-known brand

Cheap popular products

Price High price (>30RMB)

Medium price (2- 10RMB)

Low price (1-5 RMB)

Place Exclusive shops Supermarket Supermarket

Targeting High income

groups Ordinary people Ordinary people

Levels of marketing

segmentation Niche marketing Mass marketing Mass marketing

Competitor analysis

Haagen dazs Nestle, Wall’s Yili

Channels and marketing decision

Pull strategy(High brand loyalty and high involvement in the category)

Average brand loyalty

Push strategy (low brand

loyalty)

Market share

Very low High Highest

Penetration rate

Low Ordinary High

Main attraction High quality and

enjoyable environment

Reliable quality and affordable

price

Competitive price

Competitor analysis

NO.1 46.1%

NO.2 44.9%

NO.3 33%

NO.4 27.2%

NO.5 20.7%

Rank of Ice Cream

Brands Penetration

Rate in China(2009)

Source：China Marketing & Media Study (CMMS), based on an investigation on 70000 samples in 30 cities.

Competitor analysis

Competitor analysis

Source:http://justhaagendazs.wordpress.com/competitors/

Haagen-Dazs as a leader in high-priced ice cream market, its competitive advantages are due to its ingredients and accurate market positioning:

7. Marketing Mix,

SWOT

Marketing mix - product

High quality

• Finest ingredients & Rich creamy taste

Diversification

• Different products, sizes and up to 90 flavors !

Marketing mix - product

Adaptation from flavours to products： • Green Tea flavor • Perfume shaped ice-cream cakes • Fondue • Teppanyaki • Ice cream mooncake

• Represent 28% of Haagen Dazs revenue in China

• 25% annual growth in sales since its launch in 1997

2 classical marketing principles

(1) As for the high quality products, the price can be disproportionately

increased.

(2) Higher price and a respected brand name corresponds to high quality

Marketing mix - price

Pricing Strategy：Premium price

- Price in China is 5 times the US price:

(Mini Cup; US$1 vs 33RMB)

(Pint: US$4 vs 88RMB)

- Price 3-4 times more expensive than general competitors

- Price varies (normal vs limited flavors)

Marketing mix - place

• Flagships & Exclusive shops

• Supermarkets

• Partnerships:

High class restaurants

& Coffee shops

Airlines, Cinemas,

Five star hotels,

• Entertainment companies：

Disneyland

• E-business： Official Website,

Tmall, Amazonfresh

Marketing mix - Place

Marketing mix - promotion

• Word of mouth

• Free degustation in shops

• Advertisements (posters,

magazines)

• Social networking

(e.g. facebook, wechat)

• Events (e.g. product launch

events)

• Sponsorship (e.g. the open

air cinema, Luna Cinema, in UK)


Sweet Love Romantic

Warm Friendship


Localization/Adaptation

• Using Chinese Celebrity

Endorsements

• Changing the slogan from

“dedicated to pleasure” to “Love

her, treat her Haagen Dazs.”

Swot analysis

Weaknesses

• Seasonal Product • Super Premium Price • Narrow Target Customers • High Calorie Products

Strengths

• Pioneer • Excellent Brand Image • Good Product Quality • Continous Extensive Research • International Brand Recognition

Opportunities

• Global Warming • Increased Demand in Exotic Products • Increased Range of Low Fat Products

Threats

• Keen Competition • Healthy Lifestyle • Increased Cost of Ingredients

8. Retailing System

retail system

Specialty Store:

•Narrow product line with a deep assortment

Retailing Positioning Strategy:

•Narrow product assortment + High value added

Levels of Retail Service:

Self-service

Self-selection

Limited service

Full service

retail system

Procurement:

• Extremely careful in selecting products and suppliers

• Close links are maintained with suppliers

• Train farmers & familiarized them with Haagen Dazs’

manufacturing process

Inventory & Logistics

• Distribution network’s capillarity increased

• Extend business to other countries

• Built various plants and distribution centres all around the

world

retail system

Retailers’ Marketing Decisions

• High income adults who emphasize lifestyle Target Market

• Ice Cream Products Product

Assortment

• Fancy and cozy Store

Atmosphere

• Premium Price

• Word of mouth

• Advertisements Communication

• Central Business Districts

• Regional Shopping Centres Location

9. Communication

communication

Customer Resource Management

Membership System: Häagen-Dazs Club

Requirement：a cumulative 500RMB

consumption

Service:

•Purchasing privilege (10% off!)

•Redeem points

•Birthday discount

•Direct-mail brochures

•Occasional fashion parties

communication

Customer Resource Management

•Hold fashion party from time to time

•Get feedback on products

•Two-way communication

communication

Integrated Marketing Communications Campaign

•Launched the “Haagen-Dazs loves honey bees” campaign

•Employed a rich mix of promotional elements

•Helped make it into “a brand with a heart

and a soul”

•Enhance the brand’s essence by creating

shared value messages

•A part of strategic, long-term approach

10. Conclusion

Thank You

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