Since it was created in the early 1920s, Häagen-Dazs has become a strong and powerful brand, and is well established in the ice cream market.
The company has made quality and originality its motto. Its philosophy is also based on the same principles: 'Find the purest and the finest ingredients in the world and craft them into the best ice cream'.1
The durability of the company and the high competitive market of ice cream makes one wonder what makes Häagen-Dazs successful.
What strategy has Häagen-Dazs adopted in order to be one of the main actors in the ice cream market?
It focuses on the high quality of the products but is it enough to maintain Häagen-Dazs at the first place?
The quality implies higher prices, so would it not be prejudicial for the brand in the long term? Are the customers ready to buy ice creams at such a high price?
Through this case study of Häagen-Dazs, we will see how the environment has an influence on the company's strategy (external analysis). Moreover, the analysis of the company itself, that is to say, its different strategies or its corporate governance for example, will help us to understand how the brand of Häagen-Dazs has maintained its success since the early 1920s.
[...] The differentiation strategy provides 'products or services that offer benefits different from those of competitors and that are widely valued by buyers'.32 Häagen-Dazs expects to get a competitive advantage thanks to the quality of its products and of its ingredients. Moreover, the differentiation of its products is mostly based on original flavours, such as white chocolate raspberry truffle, pineapple coconut and chocolate peanut butter.33 To be efficient, the differentiation strategy relies on two main factors34: First, it has to define the strategic customer. [...]
[...] Orders are dealt with the EDI system http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/06/BUSP14I6DQ.DTL 14 SWOT Analysis Strengths Weaknesses Trailblazer on the premium ice cream High price (more expensive than its market. competitors) Haagen-Dazs is the leader of super- Variable sales depending on seasons premium ice cream with 42% of market Häagen-dazs offers fatty ice cream shares Worldwide presence (marketed in 70 countries) Innovation abilities (creation of exotic flavors)19 Research in new food technologies (tastes, nutrition, packaging and environment). Haagen-Dazs belongs to the world's sixth largest food company General Mills. [...]
[...] Environment of Häagen-Dazs PESTEL Analysis Political Economic Actions taken by governments to wrestle Worldwide economic crisis with obesity in Western Countries Current exchange rates unfavorable to American currency (dollar Social Consumers' awareness about health Development of take-away Technological Internet platform development as a marketing Environment Green issues: packaging waste3 Legal Hygiene legislation Propane used to cool freezers is about six Quality controls for food times as damaging as the atmosphere of CO24 Franchising regulations5 Advertising controls (related to obesity campaigns) http://www.pointsdevente.fr/alimentaire/le-rayon-glaces-se-rechauffe-art209859-25.htm http://www.greenpeace.org/usa/news/ask-and-ye-shall-receive/companies-try-keeping-ice-crea 5 http://www.allbusiness.com/government/business-regulations-franchise/11387-1.html 5 Five Forces Framework6 Rivalry among competitors Relatively strong Rivalry is relatively strong. [...]
[...] Internal Analysis Key success factors Häagen-Dazs is the leader in the top-of-the range ice cream market. The factors of this success are: - A very good quality of products by ensuring that the ice cream is perfectly rich because it contains no excess air. Ice creams are made with natural ingredients. There are no colouring nor conservative treatments. Although most companies limit their product quality testing only within their manufacturing process, Häagen-Dazs takes it a step further to ensure that quality tests take place at every stage of production by visiting and testing ingredient suppliers, checking manufacturing processes and equipments daily, tasting ice cream in-store on a regular basis for temperature and taste - The diversified offer of Häagen-Dazs: more than 70 flavours - The high quality of service offered by its several shops. [...]
[...] It also has its own stores, that is why it takes care of one part of the sales http://www.supplychainmagazine.fr/TOUTE-INFO/Archives/SCM031/Experience-31GeneralMills.pdf John P. Kotter,James Collins,Jerry Porras,Anthony Athos, Harvard business review on change, P James Champy,Nitin Nohria, Fast forward: the best ideas on managing business change, P Outbound logistic: General Mills sites all over Europe have got the certification 'A-MRP2' which demonstrates the excellence in terms of commercial and industrial planning. The Häagen-Dazs factory is established in Arras (France). It is certified 'ISO 9001' and produces ice creams dedicated to European, South America and Asian markets. [...]
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