Haagen Dazs Story

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 Introduction
 Home Work – The Chinese Ice Cream Market
 What Häagen-Dazs did?
 Concluding Point

 TakeAway

Company background
 Established in 1961 by Rueben and Rose Mattus in Brooklyn, NY.  The name Häagen-Dazs is composed of two made-up words that the Mattuses invented.
 Grew exponentially using the franchise model throughout 1970s.

Change of hands
 Acquired by Pillsbury in 1983.
 General Mills bought Pillsbury in 2001. However in US and Canada Häagen-Dazs products are produced by Nestlé.

What is it?
 Häagen-Dazs created the “super premium ice cream" category by offering a rich ice cream made with lots of cream and high-quality ingredients.  Globally sourced ingredients such as Belgian chocolate and Vanilla beans from Madagascar are used.

 Uses no emulsifiers or stabilizers other than egg yolks.  Requires much less temperature (-26 C) for refrigeration than other ice creams.

Today
 Sold in over 80 countries around the world across a wide range of retail channels (e.g., supermarkets, branded shops, restaurants, hotels, air planes, vending machines).

Strong Brand Image
 Luxury or super premium ice cream. The brand stands for indulgence, sensuality, and sleek polish.
 Official ice cream sold at the French Open and the Royal Albert Hall in London.

The Chinese Ice Cream Market.


Poor quality of dairy. Dairy was generally less common in the Chinese diet. Fruit (rather than ice cream or cake) constituted a typical dessert.



Chinese consumers are traditionally known as highly price-conscious and willing to go to great lengths to seek out the lowest product price.



Not only do grocery stores in China often stop carrying ice cream/frozen desserts during the winter, as demand decreases, they also lack adequate refrigeration by Häagen-Dazs standards.



Cultural difference - While Europeans enjoy ice cream for dessert at home, the Chinese want to have the whole dining experience of purchasing ice cream within a retail environment.



Chinese government and media. Their reputation for scrutinizing foreign MNCs.

What Häagen-Dazs did?

Poor quality of Chinese dairy !!

Perception of QUALITY turns
this notion on its head.

Inadequate refrigeration.

Installed 5,000 of its own
freezers, at US$15,000 per
piece, throughout China.

Imported ice cream from
their US &European
factories rather than
manufacture locally.

Chinese Consumer
1. Highly Price Sensitive.
2. Ready to go great extent to seek
lowest price.

Started with Stand Alone
Shops rather than distributing
through Supermarkets.

What Häagen-Dazs did?


Unlike the casual ice cream parlors of the West these cafes were luxurious spaces to sit down and indulge in a high quality experience. Patrons were served extravagant dishes on imported Wedgwood tableware. Dressed to impress!

What Häagen-Dazs did?
 Not Only offered its popular US ice cream flavors, But Also introduced new products tailored to local demand.

Mooncakes
 In addition to catering to local taste buds, Häagen-Dazs also discovered new opportunities in the Chinese tradition of gift-giving.

What Häagen-Dazs did?

 Instead of resting on its (brand equity)
laurels, Häagen-Dazs never stopped
innovating its products and retail
formats.
 For example, it launched ice cream
cakes shaped like premium perfumes
for retail around Valentine's Day.

What Häagen-Dazs did? Marketing and Advertisements



Decided to keep its Western name
and not translate it to Chinese.



Celebrity endorsement! - Chinese culture is based on collectivism with pressure to conform rather than stand out and a natural tendency to avoid risk.



Tone down the overtly sensual themes presented to Western audiences in order to comply with a more reserved Chinese sensibility.

“What Rolls-Royce is to cars,
& Cartier is to jewelry,

Häagen Dazs is to ice cream”.

Pedro Man - Vice President of the...
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