Marketing Concept and Marketing Segmentation in Practice Essay

INTRODUCTIONHaagen-Dazs were the pioneers in the grocery for cr ingest distinctive and voluptuous study experiences by trade to an un solicitped section the adult wish-wash skim relishrs. The Haagen-Dazs stake quickly developed a patriotic fol showtimeing. Its aboriginal success was created by word of mouth and praise. Without the benefit of denote the sunrise(prenominal)s report of an incredibly replete and moshy confection spread rapidly. At first, it was solo available at gourmet shops scarce soon dispersion spread outIn 1983 Haagen-Dazs was change to The Pillsbury Company , which remained committed to the tradition of superior base(a) and innovation on which Haagen-Dazs was founded. Since then, it has become a supranational phenomenon. Ice glance over lovers the world over now recognize the ludicrous Haagen-Dazs logo as synonymous with the ultimate super- gift scum plane. However, for the company to r apiece where it is today, a true foodstuff e ffort was undertaken from its early days to understand customers and their deprivations.Since the beginning, Haagen-Dazs has kept a keen focus on developing an internal & external trade orientation. They obtained their current competitive strengths to establish subvention pricing from*Developing the shuffle with an attached history of perfection and opulence*victimization the finest ingredients to deliver yield excellence*Invested in consumer research to understand tastes and preferences of customers* employ selective distribution and did non mass marketplace until the minimum critical mass of mental picture leaders were established*Did not change their objectives in between*Used creativity and innovativeness to support brand identityThis report entrust argue in detail the severalize that Haagen-Dazs does, indeed, practise the trade concept of charge customers pauperisms as a priority for the rest of the business to follow. antagonist ANALYSISYear by year, sweet pr oducts and their competing items arrest entered into the field and accept successfully created a slot for themselves. This phenomenon is greatly supported by the present down policy of the local government to the race coming from different lands for settlement and tourism. Ice emollients atomic add to nonplusher 18 a product that has not seen their prime in the U.A.E. Its potential is tapped in a meagre form. Not that the goodness is in short supply. There is ample chicken feed-skating rink- jactitate available even at the moment. But, thither is great scope of habitualizing the inhabitants of this place to consume much of the product, by exploiting the U.A.E. climate to its best potential.The United Arab Emirates has an ice thrash market of Dh140 million, to that degree it has one of the lowest consumption (6.00 per capita/ pints) of ice-cream when comp ard to Australia which consumes 36.87 per capita / pints and USA 30.04 pints . In spite of these low figures, Haagen -Dazs began its Middle East venture by opening its outlet in Al Diyafa Street in Satwa and from then on rapidly receptive up cafes in Deira City Centre, Rigga Street, Palm Strip Shopping midpoint and Thunderbowl. However, prior to their entry into this market, a proper industry analysis was undertaken, equal to the one described below development the Porters fabrication Analysis.Rivalry in the Industry MediumRivalry is strong collectable to a number of factors. Ben & Jerrys and Haagen-Dazs dominate the global super- agiotage ice cream market. Each of these antagonists has approximately 42% of the market, with the remaining 15% beingness split up up between a number of sm only(prenominal)er firms that compete on either a local or national basis . However, within the U.A.E., Haagen-Dazs do its entry tour Ben & Jerrys was still concentrating on Europe.Globally, Haagen-Dazs was competing for a larger slice of what was a shrinking pie. The ice-cream sector has been stagnat ing in the juvenile years. In addition to this, new government labelling regulations, a rise in consumer equipment casualty sensitivity, and different factors wee led to farther slow growth. In the U.A.E. however, the major competitor at the time was the highest outlayd ice-cream at that stage, bear only Baskin Robbins. Baskin Robbins ice-cream parlours ar still not considered direct competitors because they do not portray the material embody and class associated with a Haagen-Dazs caf.Further, industry lead times for copying a new opinion be lowering, making it harder to maintain a competitive expediency in this ara. Haagen-Dazs has been facing intense competition from a comparatively similar legal injuryd entrant London dairy farm which has positioned itself as a premium ice-cream but still made itself retrieveible at all(prenominal) accelerator pedal station and convenience store in town. Haagen-Dazs rather readily imitated them and are now available in select petrol pumps and supermarkets.Threat of new entrants WeakThough there are a signifi corporationt number of competitors in the market, the largest firms still wear such large market sells that they are virtuallywhat insu noveld against smaller competition. Barriers to entry into this market are relatively low, in especial(a) since a firm that already competes in the premium or archetype ice cream market could easily convert to the super-premium market (though not with guaranteed success). There is not a significant threat for a new firm to enter the market and establish itself as a rival to the main competitors though brands comparable Unikai, Kwality and London Dairy find been introducing ice creams to close in this market.Substitute Products WeakThis is not a significant force, even though there are a number of substitute products for this market. Because this is the super-premium ice cream and yogurt market, and the products have prices that reflect this super-premiumst andard, the buyer who is interested in this type of product is probably going to be an ice cream lover that is willing to net the extra price to receive the high level of sense of smell . One of the driving forces in this industry is the talent to produce a range of opinions, and to supporting introducing new ones. Many gross revenue could be attributed to the buyer attempting to satisfy a craving for some illegitimate flavour of ice cream. Such a buyer would probably not be satisfied with a substitute product. Though there is sealed to be some competition from products such as high forest cakes and cheesecakes, other frozen dessert products, and other snack products such as chips and dips, these products are not a significant factor to this super-premium ice cream market.Power of Suppliers WeakThis force is also weak since, in some cases, Haagen-Dazs is paying well above market prices in an effort to layover true to their mission of producing super-premium note ice-cre am and strange flavours. Should the need arise, it would be quite easy for them to find a new supplier for any of its products. The advantage the Haagen-Dazs and Baskin Robbins have over the smaller producers are that since they purchase on a global scale, being such a large buyer, gives them more index number in the supplier/buyer relationship.Power of Buyers StrongThis is obviously not a product that is necessary to the consumer. There is a declining level of the price elasticity of demand. This puts more of the power in the relationship into the hands of the consumer. Producers in this market must respect this and be sensitive to consumer attitudes concerning their products or mettle declining sales. Most of this revolves around flavours that they produce and for this reason, Haagen-Dazs is unceasingly innovating on newer and more exotic flavours to keep their customers continuously attracted to them.FOCUS ON CUSTOMER NEEDSHaagen-Dazs continuously researches its market becau se this is exactly what got them into the business in the first place. Effective marketing is found on three key elements, the marketing philosophy, market class and consumer behaviour. Haagen-Dazs has been noted to practise the consumer-driven philosophy whereby they rely on research to visualize consumer preferences, desires and needs before work actually begins. This philosophy stresses the need for marketing research to be conducted in order to repair understand where or who a market is and to develop a strategy targeted toward that group . The warmheartedness business they are in is production of ice-cream. This industry primarily focuses on consumer tastes and preferences and hardly research can help identify these.However, it is not liberal that research is conducted solo prior to production of a particular flavour. They need to constantly research the movement of this flavour in the market and get feedback from customers about this. Market research has given Haagen -Dazs many advantages, such as,* uncommon environmental insight, which they used to spot opportunities others overlooked Reuben Mattus found a instalment in the market he believed to be un-served, namely, the adult ice-cream lover segment. bandage other companies focussed on enticing kids with ice cream, Mattus decided to tap the older, mature segment that had the spendable income to pimp themselves.*Are proactive to competitor moves by following them closely Haagen-Dazs quite readily met all of competitors Ben & Jerrys moves by continuously introducing new flavours focussing on their street corner while others lost focus and were mass marketing heir ice creams. This helps inducts them fiercely competitive constantly striving to defend their turf.*Identify customer wants thus focussing energies on giving them exactly what they want research helped them take that Japanese love tea and hence introduced the Green Tea flavour which was an instant success in that market .They are not the unaccompanied ones undertaking market research. The UK Super Premiumice cream market had a retail value of 56 million in the UK in February 2000. Ben & Jerrys accounted for fully 83 per cent of the overall growth in the UK Super Premium market in 2000. Multiple grocers account for 70 per cent of all Super Premium ice cream sold in the UK, and in family 2000 Ben & Jerrys secured parity with Haagen Dazs in legal injury of sales through this channel, with Ben & Jerrys securing a 52 per cent share of the market as against 48 per cent for Haagen Dazs . In the U.A.E. though, despite being of reasonably higher price, the brand established itself quite comfortably as a must try product among the elite and middle-class. This is exactly what Haagen-Dazs had hoped to acquire when it first came here. The management were counting on the expat population of the U.A.E. who were already beaten(prenominal) with the brand to spread word of mouth about its high quality, unique flavour s and prestigiousness associated.MARKET SEGMENTATIONAs simple as it looks, every little detail of the ice cream is meticulously planned for the concluding consumer to buy the product. Of the bills that goes into paying for the ice cream, nearly 80% is returned into marketing costs for the company. The rest of the 20% represents the actual production costs. Consumers are an full part of the industry and the market research helps identify the mettle market segments that Haagen-Dazs caters to.Market part is the process of identifying a specific set of characteristics that pick out one group of consumers from the rest. In respect to ice creams, although many people eat them, the market can quite easily be metameric on bases of taste and price. Some individuals prefer high-quality ice cream made with real bread and cream because of its taste while others cannot tell the contravention in quality and would buy primarily based on price and availability. Lower-priced competitors are into mass marketing while premium priced ice creams makers have followed a niche strategy to target that one single segment consisting of pissed upper-middle to upper class segment.Haagen-Dazs uses a few main segmentation bases for dividing their market,namely, demographic, socio-cultural and psychographic. Under demographic segmentation, they focus on the income bracket of consumers. Their products are chiefly aimed at the affluent with higher disposable income to spend on head-in-the-clouds luxuries like super-premium ice cream. Although they do not segregate flavours by sexual activity they do tend to highlight he romantic and sensuous bod of ice-cream by featuring couples in all their international adverts. They tend to bond their ice creams immediately to sex in order to highlight that the indulgence and cheer felt is similar in both cases and besides as fulfilling for intragroup desires. This leverage gives it extreme importance among the adult population as they ca n understand this touch sensation and hence relate consumption of this product directly to this feeling.The socio-cultural segmentation looks at unlike cultures and nationalities and their preferences. Certain cultural groups tend to have similar needs especially when it comes to food, confectionery and drinks. For this, Haagen-Dazs has taken into account various national tastes and preferences in their innovative product line by introducing flavours like Cheesecake ice cream for the UK, Green Tea ice cream for Japan, Belgian chocolate for those in East Europe, and so on .Finally, probably the nearly important type of segmentation bases in this case is the psychographic segmentation. To be attracted to eating super-premium ice cream, people need to be part of a particular lifestyle segment. They should technically be among those that enjoy the luxury and indulgence associated with the brand. Haagen-Dazs has been portray to be a reflection of pleasure and for this reason, the bra nd creates an ambience coffin nail its cafes too by ensuring that furniture is cozy and in deep dark glasses of browns, burgundy and red to add a feeling of cocooning and intimacy .Using these segmentation means, Haagen-Dazs has narrowed down its business to cater to specifically 2 main target markets, namely,*Affluent, pleasure seeking adults who are generally brand conscious, innovators & trend followers*Health conscious, unripened adults who are interested in desserts but prefer natural ingredients and low fat substitutesBy identifying only two target segments and focussing on a small but profitable segment of the market, Haagen-Dazs is practising a niche market strategy. They have been slightly successful in identifying and catering to this segment and this can be set(p) by their growth from gourmet stores in New York City to its global presence now in over 54 countries. Identification which segments are profitable to market to is not seemly. Companies need to design a ma rketing mix to cater to each of these segments. The next section discusses Haagen-Dazs current marketing mix for the mentioned segments.MARKETING MIXINDULGENT & AFFLUENT ADULTSHEALTH CONSCIOUS ADULTS return All products made with exotic ingredients to add to the luxury and fine taste by sourcing nuts from Hawaii, vanilla from Madagascar, and chocolate from Belgium, etc. Ice cream flavours ranging from Baileys Irish Cream and Blueberry Cheesecake to Cherry Vanilla and umber Caramel, etc. Velvety Gelato in flavours from Cappuccino to Raspberry. Ice cream, sorbet, gelato bars for the adult palate in all flavours of the tubs Frozen yoghurts where the fat content is derived directly from light cream and accented egg-yolk. Sorbets are sweetened only with pectin which is derived from fruit sugar thus ensuring no extra maudlin sweeteners All low-fat bars & tubs are marked with accurate calorie counts and fat content on the box to batten that this segment knows exactly what its eatingP RICE premium priced at AED 7-10 a scoop while uninterrupted ice-creams are only priced at a maximum of AED 5 per scoop no price discounts or special offers to keep in line with the luxury and prestige associated with the brand for the health conscious, Haagen-Dazs have not reduced price to try and attract them simply because this segment already exists and they are willing to pay the same amount and purchase the productPROMOTION although initially advertising was only through word of mouth, today Haagen-Dazs uses its print adverts to entice customers worldwide. ascribable to regulations in the Middle East region, they have refrained from linking their product attributes to sex, intimacy, alcohol, etc. and have focussed on highlighting the pleasure of eating ice cream made from the finest ingredients in the world advertising for this segment has focussed on the fact that you can still maintain a great body and still treat yourself to an occasional ice-cream and not add on pounds fo r it in store displays of the actual number of calories in each scoop and endorsements from seaworthiness conscious supporters are evidence enough of how Haagen-Dazs is continuously trying to attract people from this segment.PLACE cafes with comfortable seating for couples, bar stools, dim lighting, rich colours all help to create an ambience of intimacy & love all cafes are located on prime streets or malls where young adults tend to hang out or socialise thus change maximum accessibility for the elite focus for this segment has moved away(p) from actual cafes where they may be tempted by the non-low fat products and towards supermarkets, petrol pumps and other convenient areas where they can pick a scoop while their on go.The current marketing mix does quite effectively meet the needs of the target segment and my only recommendation to Haagen-Dazs would be to break through targeting acclivitous segments such as the affluent teenage segment that would have more time to spend i n cafes an who would be more easily persuade to experiment with flavours.Haagen-Dazs major success factor was the way it positioned itself in the minds of the consumer. It took a strategic marketing outlook to achieve this arrangement. All said and done, Haagen-Dazs core business is still in the production of ice cream. However, differentiation using the finest products and developing of a premium ice cream brand was the positioning they portrayed. The next section will look into how they achieved this.POSITIONINGSuperior flavour and texture are principal to Haagen-Dazs and their definition of quality extends much further. From the ingredients they rent to the recipes they develop, from the packaging materials they select to the care with which they deliver the ice creams, from the ambience of each Haagen-Dazs caf to the attention with which they serve, the Haagen-Dazs brand quite obviously signifies its commitment to perfection. However, it is not enough that they believe they h ave done this. At the end of the day, the customers would base their end on the tangible aspects of the brand such as the taste of the products, the quality of overhaul offered at the cafes and so on.Product-wise, Haagen-Dazs ensures to maintain the high quality and epicurean taste associated with the brand by using best-selected ingredients fromaround the world and ensuring that fresh cream is used for a rich creamy flavour, fresh skim milk for body and texture and fresh egg yolk for ticklish flavourAs a matter of differentiation, they advertise that their ice cream is ALL ICE CREAM by ensuring that the ice cream is suddenly rich because it contains no excess air. Further, unlike mass marketed brands, no artificial flavourings or colours are used. Haagen-Dazs prefers to find better natural alternatives and make sure that their customers know about this.Although most companies limit their product quality interrogation only within their manufacturing process, Haagen-Dazs takes it a step further to ensure that quality tests take place at every stage of production by visiting and testing ingredients suppliers, checking manufacturing processes and equipment daily, tasting ice cream in-store on a regular basis for temperature and taste.From this we can see how Haagen-Dazs positioning is based primarily on product & image differentiation. For this to be understood by customers, Haagen-Dazs has tried to convey this through every available communication vehicle such as the deep maroon & gold logo, to the Scandinavian name and lettering, and the seductive adverts mentioning the various exotic flavours.The only possible aspect that they need to modify with regards to their positioning would be to start co-branding the product in the U.A.E. with luxury events, shows, etc. Although currently premium ice creams like Godiva and Haagen-Dazs are served at all the major five-star hotels in town, they have not really ventured into sponsoring or conducting events. Locall y held international-level fashion shows, horse races and golf tournaments are splendid opportunities to link the brand with the best of the best.Being primarily based on an actual product and its augmented offerings, Haagen-Dazs has not been very successful in differentiating its products from its services. The next section will look at this in further detail.SERVICE VS. PRODUCT ASPECTSHaagen-Dazs product aspects have already been discussed and this section will now concentrate on the services that they offer that acts as evidence of their marketing orientation. Haagen-Dazs has a global website that offers customer information on all the newest flavours, special recipes, current promotions, events, links to other Haagen-Dazs international websites and even access to their loyalty programme called REWARDS . This is a complete membership to all their loyal customers who like to enjoy the uncompromising quality and indulgent taste of their products.This gives customers high-up access to all Haagen-Dazs sponsored events, fashion and art shows, early announcement of all new products, trial coupons and free gift vouchers. An excellent means to keep their customers coming back to them time and time again. The website also gives investors information on how to open a franchise outlet and company highlights which gives a better understanding of the companys early beginnings.The primary mode of service at Haagen-Dazs was through their numerous high-street cafes. The website is a feature that was established of late but to actually receive the welcoming, customer-friendly service, one must visit a caf. All Haagen-Dazs cafes are staffed with well-trained staff whose primary concern is to keep their customers feel relaxed in the cozy ambience of the outlet. The staff are always impeccably dressed in fine uniforms and are sure to be there at every customers beck and call whether asked for or not.The feeling is almost as if being served in a five star hotel. Even within th e various cafes, club memberships are offered for all regular customers . These customers get free privileges like attending flavour launches, sample testing and focus group meetings. All these features help Haagen-Dazs continuously cater to its niche affluent segment who are willing to pay that extra premium for this high grade of service. Extra services offered at the cafes are the free love postcards and mugs that are given as giveaways to promote the feeling of love, intimacy, sensuousness and beloved that the brand is directly linked to.CONCLUSIONHaagen-Dazs main challenges will be faced from the growing media effect on consumer preferences and tastes. New segments are appear constantly and they need to continuously innovate and broaden their target market to incorporate these. In the 1980s, the premium brands were faced with intense competition from consumers ever-changing preferences to low-fat, fat free and light ice-creams . Now, the media is actually convincing people th at they deserve to indulge and this has resulted in many ice cream marketers to come up with products that are both indulgent, yet not high in calories. Currently, Haagen-Dazs just has frozen yoghurts and sorbets to cater to this segment, but they need to come up with newer recipes and ideas for acquire this segment to eat more of their ice-cream.Haagen-Dazs need to realize that the world is paltry to a general economic trend of higher earnings, more disposable income and leisure time and they need to understand that its not just the affluent that are eating their ice-creams but also those of the lower and upper middle-income segments. They have focussed on capturing the innovators in the market but need to start developing their marketing strategies to include the early and late majorities into this segment because they demo as a larger market. The brand has repositioned itself from being exclusive to being accessible yet high-class and quality.This needs to be further capitalis ed on by convincing the market move it from being something to be eaten at the caf to something in all family fridges to indulge in when important guests come for dinner. Their go off marketing orientation has given them an established brand. They managed to educate their customers on how they should indulge themselves occasionally even if it means buying a relatively more expensive ice-cream. Now they need to change focus to monitor international tastes and trends to better predict changing customer tastes and preferences.BIBLIOGRAPHYBOOKSLancaster, G., and Massingham, L., 1993, Essentials of Marketing, 2ndedition, McGraw Hill rule book CompanyDickinson, P., 1994, Marketing Management, The Dryden PressARTICLESBusiness News Publishing Group, September 2001, Sales Flat, Prices up for Top 12 Ice Cream brands, Dairy FoodsLiebman, B., May 2002, Frozen Desserts Fatten Up, Nutrition Action HealthletterReyes, S., 7th February 2000, Haagen-Dazs Extends Dulces Reach, BrandweekWallace, K., 4th July 2002, Consumer Reports has the Scoop on the Best Ice Cream, Consumers Union of U.S.WEBSITESwww.haagendazs.comwww.finadarticles.com/cf_0/m0BDW/6_41/59779529www.finadarticles.com/cf_0/m0813/4_29/85915465www.finadarticles.com/cf_0/m3301/9_102/79007885www.hauserbeiten.de/faecher/hausarbeit/bwu/5732.htmlwww.wral.com/money/1544486/detail.html