Managerial Economics Case Report 財政三 101205094 趙偉如 財政三 101205055 劉于萱 財政三 101205026 曹雋盈

Outline Industry Introduction: Ice Cream Case Profile: Häagen-Dazs Business Model Business Analysis Pricing Strategy Marketing Strategy

Industry Introduction Ice Cream

Which store would you choose? When it comes to ICE CREAM…

Industry Introduction: Ice Cream Market analysis：Competitors (America's Favorite Ice Cream Chains)

Industry Introduction: Ice Cream Market analysis：Competitors (America's Favorite Ice Cream Chains)

Industry Introduction: Ice Cream Market analysis：Competitors

Case Profile: Häagen-Dazs

Case Profile History: the idea for the Häagen-Dazs® brand dates back to the early 1920s, NY Reuben Mattus in 1976, opened the first Häagen-Dazs® Shop in 1983, sold to The Pillsbury Company The brand name is still owned by General Mills but is licensed to Nestlé in the US and Canada.

Case Profile Philosophy: find the purest and finest ingredients in the world and craft them into the best ice cream, sorbet, and frozen yogurt available.

Case Profile: Häagen-Dazs Products: Categories: ice cream, gelato, sorbet, frozen yogurt, bars, moon cake (Asia only) Multiple flavors: 30 flavors in ice cream Classic flavors: vanilla, chocolate, coffee, strawberry

Case Profile: Häagen-Dazs Distribution channels: Supermarkets, convenience stores and Häagen-Dazs’ shops (flagships) distribution partnerships: restaurants, airports, entertainment Over 700 branches(retails) in 54 countries around the world 37 chains in Taiwan

Case Profile: Häagen-Dazs Package and Price: 473 ml----- NTD$320 100ml------ NTD$100 1 scoop---- NTD$135 Profitability: Raises more than 14.9 billion revenue, over 1.8 billion net profit a year

Business Model

Business Model Vertical Integration Ingredients acquisition: Farms in Madagascar (vanilla), Poland(strawberries),US, France (dairies) Packaging: France Processing: global Retail channels: Chain stores(shops), convenience stores, etc. Manufacturer & Marketer: General Mills

Ingredients acquisition Business Model Vertical Integration Ingredients acquisition Farms in Madagascar (vanilla), Poland(strawberries),US, France (dairies) Packaging France Processing Global Retail channels Chain stores(shops), convenience stores, etc. Manufacturer & Marketer: General Mills

Business Model Integration economic benefit: Quality control and assessment Efficiency from resource arrangement Cost-down Distribution

Business Analysis

SWOT Analysis Opportunities Threats Weakness Strength –Pioneer –Strong brand recognition –Really innovative brand –Excellent image : brand good quality products – International presence Weakness – Seasonal product – High price (could be a strength) – The customer base targeted too narrow – High calorie products Opportunities – Development of individualism : individual cups + others format available – Increase of demand in exotic products Threats – Very competing market for example “cold stone” –materials price been expensive

STP Analysis：Segmentations Segment Variables Description of the variables Demographic Adults who have higher income  Young , middle- high class people Couples( flavors with romance advertising ) Social-Cultural Big variety of flavors cover need according to each country‘s habits.  European：preferences in alcohol drinking Asian：preferences in teas Psychographic People who love luxurious brands Need of being members of this brand

STP Analysis：Target Häagen-Dazs： General Ice Cream Industry： Focus on 2 targets 1. Adults who love the luxurious ice cream flavor 2. Health conscious adults who prefer natural ingredients and low fat substitutes General Ice Cream Industry： -Low price industry -Targeting in small ages

STP Analysis：Position Luxury product Super-premium Ice cream without either artificial colorings or additives. Naturally aromatized ingredients (Ex :Madagascar’s vanilla) Selected inclusions (pecans, grilled almond, cookies…) High differentiation according to its competitors

STP Analysis：Position The Brand repositioning: Being exclusive Being accessible to middle-class people An individual ice cream A sharing one

Comparison Price Brand position Product Position Advertising Expensive than regular ice cream 5 to 10times Emphasis on keeping the selection of the best quality ingredients, pure natural ingredients Price Top ice cream brand and establish brand image of luxury fashion Brand position Focus on brand and quality, the New York Times said the Haagen-Dazs ice cream in Rolls-Royce Product Position Do not do TV ads, only the rich visual impact of print ads. Advertising The main stores are selected in the core business center or high traffic locations crowd Store position

Pricing Strategy

Cost Structure Variable Cost Material Transport Tariff Fixed Cost Retail shops Machinery Utensils Operating Cost Wage Rent

Premium Pricing Strategic Considerations Factors Also called Skim pricing  Keep the price of a product artificially high In order to encourage favorable perceptions among buyers, based solely on the price. Asymmetric Information Market status as a Luxury good Less elastic, Less substitutes Strategic Considerations Factors

Value-based Pricing Kind of Psychological Pricing Tactics The high price is based on invest heavily in ensuring product quality . The higher priced products, but also the promise makes consumers believe that product quality is higher.

Marketing Strategy

Elasticity Segment Customer Potential customer Unusual eating ice cream High elasticity Regular customer Like eating ice cream but non Exclusive brand Medium elasticity Loyalty customer Exclusive brand only Low elasticity

Characteristic Dependence Continue to introduce new products for different festivals localization Introduction of ice cream moon cake Mid-Autumn Festival Customized Customers able to collocate their own flavor and enjoy creative ice cream

Retail distribution To prevent channel conflict , Haagen-Dazs ice cream sold through outlets other than franchised or licensed retail dipping shops is ordinarily confined to prepackaged pints and quarts, bars and single serving for on-premises consumption at restaurants.

Retail distribution Restaurant will regard Haagen-Dazs as a high level merchandise and luxury brand as a store selling point.

Variable goods Ice cream Customer Elasticity Revenue Ice cream Cake Coffee Ice cream Fondue Customer Elasticity Revenue

VIP-Economic Benefits 1. Bonus feedback 2. 10 percent discount 3. Birthday discount Increasing customer loyalty Consumers elastic smaller Discount activities increasing consumer demand

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