Situation Analysis

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- Financial conditions

For financial part, Haagen-Dazs does not provider any direct or indirect financing and also do not have any note , lease or other financial obligation that they guarantee. Haagen-Dazs North America is self-sufficient on profitability and financial dependence. It does not receive any financial help from the core branch and works by its own.

- Management philosophy

There are obligations and restrictions for them. The franchisee or a person designated by the franchisee must devote best efforts and personal, full time and attention to the management of the shop which including a minimum of 40 hours per week of the franchisee's or the manager's on-premises supervision. Franchisees may not conduct any other business or activity at the shop, or have connection with the shop, except to the extent Haagen-Dazs permits a “shared resources” situation.

- Organizational structure

The organization is a franchise of the Haagen Dazs group. The organizational structure is based on a progress with fees and certain rules that people will go through in order to open a shop. Each franchising shop has its own independence, even it is directly related to the core organization.

- Organizational culture

Haagen Dazs North America exists more than 30 years, so it is considered as a pioneer in premium ice creams. It is customer focused and is a brand that listens to its customers and can adapt and satisfy to their needs.

- Summary of the firm’s strengths and weaknesses

The Haagen Dasz ice cream are very recognizable. It is a social and trustworthy brand which has their identifiable values for the consumers and are not going disappointed by eating them. It can bring pleasure and cheerful moments to customers. It is also considered as an innovative brand because it always explores new tastes and products.

Its luxury image and high price may limit a part of customers and loss some customers.

- Implications for strategy development

It makes people have an awareness that even in winter ice cream can be a pleasure. Also it can have a strategy to attract consumers who do not like or cannot afford high consumption level.

- Marketing Strategy

- Objectives and constraints

The objectives of the marketing strategy is to increase their sales in North America. It is continue innovating and trying to satisfy consumer’s needs. Therefore, it has an idea to push out a low-cal fruit sorbet to adapt the market needs.

- Analysis of sales, profits, and market share

For the market share, Haagen Dazs is the second one in the worldwide which takes up 13% of market share. In the United States, its market share of the leading ice cream brands is 8.1% that is based on sales in 2016.

- Analysis of target markets

The target market are young people which is middle- high class. And a larger range of customers are aged from 15-59 and both males and females. The strategy is planned to attract a bigger segmentation of the market which is people who like low calories, low fat, and healthy freezer products.

- Analysis of marketing mix variable

Product: High quality products which is with no artificial and GMO ingredients and the trusted natural ingredients. Other products like cakes, milk, and cream are provided by local suppliers, this attracts local consumers and tourists who want to try traditional taste when they are eating ice-cream. To follow the trend, its product strategy is to push out low fat products.

Price: The pricing strategy is value-based price. The price strategy is based on costs used in product and the quality. The retail price for a half liter of Haagen Dazs ice cream is usually over $5.00. The low-fat version has the same price with the full-fat product.

Promotion: It create an advertising image to promotes an adult with the up-market, glamorous positioning for their super premium ice cream.

- Summary of marketing strategy’s strengths and weakness

The strategy can attract a bigger segmentation of the market that can increase the sale. The price of its products is higher than others, so the group of target customers is narrow and specific.

- Implication for strategy develop

It is well-recognized brand which is with strong position on the global market, it would be better to use the Haagen Dazs brand name to push out the new product. It can change customer’s original minds and opinions.

Reference

North America: Human Geography.

http://www.nationalgeographic.org/encyclopedia/north-america-human-geography/

Our Story: The History of Häagen-Dazs, Häagen-Dazs Official website.

https://www.haagendazs.us/about/

Häagen-Dazs Franchise Cost & Fees.

http://www.franchisedirect.com/foodfranchises/haagen-dazs-franchise-07274/ufoc/

Fengtt, (July 5, 2015), Haagen-Dazs: Promoting an Adult Ice Cream.

https://www.allfreepapers.com/English/Haagen-Dazs-Promoting-an-Adult-Ice-Cream/79682.html

Market share of the leading ice cream brands in the United States in 2016.

https://www.statista.com/statistics/255060/market-share-of-the-leading-ice-cream-brands-in-the-united-states/

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