You are on page 1of 5

Reasons behind the success of strategies:

The ice cream company known as Haagen-Dazs has come a long way Irom the day oI its origin.
According to a top executive oI General Mills Haagen-Dazs is a jewel brand Ior them. Global
sale oI Haagen-Dazs are up by 11 Ior the 2011 Iiscal year which has almost double the growth
rate Ior all General Mills international brands. It is sold in 81 countries. General Mills enjoys the
success oI this iconic ice cream brand because oI some strategies. Reasons behind success oI
these strategies are given below:
Advertising is one oI the many marketing tools that are used to attract attention oI
prospective customers to a business or its products or services. The more eIIective the
campaign more the customer it draws with greater Irequency. Haagen-Dazs will soon air
a 30-second TV spot with a title oI 'sensation. It will be aired across national
boundaries. Risk is associated to global expansion as diIIerent people oI diIIerent country
will behave diIIerently. To minimize the risk it is very important to adopt their diIIerent
aspects oI cultures such as language. The TV spot oI Haagen-Dazs will have diIIerent
voice-overs to match languages including French, Spanish, Mandarin and Arabic and it
might be toned down in countries like China. Success oI a particular strategy depends on
how much it has complied with Ieatures oI local culture and TV spot oI Haagen-Dazs
will surely meet the demand oI cultural adaptation by providing various voice-overs to
match languages.
hatever media or promotion is been used all the activities must exercise a common or
uniIied message which is known as 'unique selling proposition. Despite the varying
regional taste Haagen-Dazs`s strategies Iocus to unite the brand`s themes: indulgence,
aIIordable luxury and intense sensuality. As long as commonality is concerned in
strategies this brand successIully exercises a unique message in their activities which
Irees the worldwide consumer Irom conIusion and gives the brand a taste oI success.


General Mill has done so well with Haagen-Dazs internationally because oI their will to
provide corporate creativity. For example they have a joint venture with Swiss giant
Nestle in U.S and Canada and Haagen-Dazs has high-end, sit down shops in spectacular
locations like the Champs-Elysees or by the Bund in Shanghai which has enabled the
brand to have a diIIerent inspirational image. This brand is also the oIIicial ice cream at
imbledon and the French Open and Ior all the perIormance at the Royal Albert Hall in
London which is also a very unique strategy.
To gain acceptance among customers a brand needs to adopt local taste and preIerence.
Haagen-Dazs introduced many locals variations to its products Ior example ice cream
sushi in China, ice cream 'teppanyaki appetizers in Japan and a handmade limited
Edition $65 Iceberg Glazed hite Chocolate Holiday Cake in Paris only. So this
introduction oI local choices into ice cream is successIul because it complied with
localization as well as customization.
Haagen-Dazs`s aim is to provide customers with a 'Ior me experience at home and 'Ior
us experience at the shop which they have successIully provided through their product
as well as with the environment oI ice cream shops. Its ice creams are undoubted high in
quality and the ingredients are collected Irom diIIerent part oI the world so that the ice
cream tastes better that any other. The ice cream shops give an indulgent experience to
the consumer.
Product Price has a strong association with product positioning in consumers mind. II a
product producer want to position his/her product as a high end product in consumers
mind then it should be priced high. Haagen-Dazs want to position itselI as a premium ice
cream brand by charging two or three times more then what others charge. Their high
pricing strategy is successIul as it creates a superior image in consumer mind and
consumers are always ready to pay the higher price. This brand is considered as a symbol
oI prestige.


!ositive and negative aspects about their strategies:
A global brand will examine thousand oI time beIore implementing a strategy. As a global brand
Haagen-Dazs has mostly taken positive strategies. Positive and negative aspects oI its strategies
are given below:
Its 30-second TV spot oI Haagen-Dazs will be aired by matching languages in diIIerent
countries. So this strategy is concerned with adaptation oI local culture which will
positively aIIect the brand. But with just one TV advertisement it will be diIIicult to unite
the brand`s theme across the globe as perception oI consumers are diIIerent among
nations. It would be wiser to show one particular TV spot Ior one particular country.
Especially Muslim countries might be sensitive to some western advertisement so one ad
Ior all countries might not be wiser. So to be competitive in international market
Haagen-Dazs needs to air diIIerent ads in diIIerent countries in according oI the country`s
culture.

They are targeting children as well as adult. Most ice cream companies target children
but as Haagen-Dazs is charging high so its customers should have the Iinancial ability to
buy and adults are perIect target who can spend so much just Ior an ice cream. But high
pricing strategy might not work positively in developing countries such as India as the
case said that Haagen-Dazs recently has introduced a shop in New Delhi. So it should
price the ice cream by considering the aIIordability oI customers oI particular countries.
Moreover as a 'superpremium product Haagen-Dazs`s charge too high price Ior its ice
creams compared to its competitors which most oI the time is not aIIordable by the
middle class people. In this way they are losing a signiIicant number oI potential
customers. To attract these customers Haagen-Dazs`s should pay attention Ior lowering
price may be with smaller shapes oI the ice creams.


Customization oI ice cream (sushi ice cream, mooncakes in China) to cope with local
preIerence is a positive thing oI Haagen-Dazs strategy. But they also need to realize the
extent to which they should customize their product. Excessive localization and
customization might hinder Haagen-Dazs Irom exercising its own essence and
sophistication. Another thing is their loyal customers might want snacks made by
Haagen-Dazs so it can oIIer some snacks as well as some reIreshment like coIIee, tea to
attract diIIerent ages and diIIerent proIessions people as well as to keep the regular
customers satisIied.

To ensure superior quality Haagen-Dazs collects diIIerent raw material Irom diIIerent
countries which is also a positive side oI their extracting strategy. Sourcing ingredients
Irom the place which is known as best Ior a particular ingredient surely increases cost oI
this ice cream brand. So their strategy should Iocus on how to minimize this cost
associated with sourcing ingredients but also they should not compromise with their
Iinest quality Ior which they are actually renowned Ior.

Most oI Haagen-Dazs`s revenue comes Irom its shop and the rest comes Irom sales oI
points and mini cups in large super market as well as Irom distribution partnership with
Air France, The National Opera oI Paris and various hotel chains. So opening shops and
having partners impact positively into brands proIitability. Haagen-Dazs produces ice
cream, ice cream bars, ice cream cakes, sorbet and Irozen yogurt and they oIIer only six
Ilavors. To be competitive in international market continuous upgrading is very important
and that`s why they need to Iocus on producing new Ilavors Ior their customers.


Haagen-Dazs already has established as a brand which is 'Dedicated to pleasure. But to carry it
on Iorward it has to pay attention to newer product innovation as well as product modiIication
and also cultural sensitivity in promotional campaigns. In this way they can be the most
successIul and desirable brand in whole world.

You might also like