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
When it
comes
to
you
choose?
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
Business Model
• Vertical Integration
Ingredients
acquisition
Packaging
Processing
Retail
channels
• Farms in Madagascar (vanilla), Poland(strawberries),US,
France (dairies)
• France
• Global
• 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
Weakness
Strength
– Seasonal product
–Pioneer
–Strong brand recognition
– High price (could be a strength)
–Really innovative brand
– The customer base targeted too narrow
–Excellent image : brand good quality
products
– High calorie products
– International presence
SWOT
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
• Adults who have higher income
Demographic • Young , middle- high class people
• Couples( flavors with romance advertising )
• Big variety of flavors cover need according to
each country‘s habits.
Social-Cultural
 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：
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
• Expensive than regular ice cream 5 to 10times
• Emphasis on keeping the selection of the best quality
ingredients, pure natural ingredients
• Top ice cream brand and establish
brand image of luxury fashion
Product Position
• Focus on brand and quality, the New York Times
said the Haagen-Dazs ice cream in Rolls-Royce
Advertising
• Do not do TV ads, only the rich visual impact of
print ads.
Store position
• The main stores are selected in the core
business center or high traffic locations crowd
Pricing Strategy
Cost Structure
Variable Cost
• Material
• Transport
• Tariff
Fixed Cost
• Retail shops
• Machinery
• Utensils
Operating Cost
• Wage
• Rent
Premium Pricing
• 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.
Strategic
Considerations
Factors
• Asymmetric Information
• Market status as a Luxury good
• Less elastic, Less substitutes
Value-based Pricing
• Kind of Psychological Pricing Tactics
1. The high price is based on invest heavily in
ensuring product quality .
2. 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
• Regular customer
• Like eating ice
cream but non
Exclusive brand
• Loyalty customer
• Exclusive brand
only
High
elasticity
Medium
elasticity
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 onpremises 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
Cake
Ice
cream
Coffee
Ice cream
Fondue
Customer Elasticity
Revenue
VIP-Economic Benefits
Increasing
customer loyalty
1. Bonus feedback
2. 10 percent discount
3. Birthday discount
Discount activities
increasing
consumer demand
Consumers
elastic
smaller
Thank you !