Introduction
Haagen-Dazs is a successful organization which is an ice cream brand owned by General Mills and sold under the Nestle licensing brand in the United States. Reuben Mattus is the founder of Haagen-Dazs in Bronx, New York in 1961. He was a young entrepreneur with a passion for quality and a vision for creating the finest and purest ice cream. Initially, he worked in his mother’s ice cream business selling fruit ice and ice cream in the streets of the Bronx in New York. In order to produce the finest ice cream, he insisted on using the finest and purest ingredients.
By 1960, Reuben Mattus was supported by his wife Rose. He decided to form a new company dedicated to his ice cream vision and called his brand as Haagen-Dazs. Therefore, the name of Haagen-Dazs was come from Reuben Mattus.
Reuben Mattus had a daughters Doris. She opened the first Haagen-Dazs shop in 1976. It was an immediate success and it become very popular led to a rapid expansion in a short period of time across the country. In 1983, Reuben Mattus agreed to sell his company- Haagen-Dazs to The Pillsbury Company, which still remained committed to the tradition superior of quality of ice cream. (HDIP.Inc)
History of Baskin Robbins
Baskin Robbins is an invention by two brothers-in-law; they are Mr. Burt Baskin and Mr. Irv Robbins. The main reasons motivate them to create this brand is because both of them hope can open an innovative ice-cream store that can be a good place for every family member can be gather together and this can improve the relationship between the parents and their children. These two brothers-in-law in deep love with the old fashioned ice-cream and they expect can use the highest quality of material to produce many different ice-cream flavors for their customer. In the year of 1954, Baskin Robbins defeats their competitors at the Los Angeles Country Fair and won their first Gold Medal, and then in subsequent of year, the prize of Gold Medal also wins by Baskin Robbins Ice Cream. In the mid year of 1960, Baskin Robbins has been opening more than 400 stores in United States. In year 1970, it expand their business over the United States with open their stores in many different country such as Japan, Saudi Arabia, Korea and Australia.
1.2 Company’s objective
In every Haagen-Dazs shop, their objective is “to make your experience with us as pleasurable as possible”. Every product in Haagen-Dazs is from only the finest and purest ingredients in the world. Well trained staff will gladly assist their customer in choose from extensive menu. (Haagen-Dazs) Similarly, the objective of Baskin Robbins is to provide every customer can have a deep impression and deliciously fun after enjoy the Baskin Robbins ice-cream and intend to stay “Malaysian’s Favorite Premium Ice Cream” in every way.
1.3 Board of Directors
Nestle has acquired General Mill’s fifty percent ownership stake in Ice Cream Partners USA. The Board of Directors in Nestle S.A was Peter Brabeck-Letmathe. He is an Austrian, born in Villach on November 13, 1944. (Nestlé 2001) On the other hand, the president of Baskin Robbins is Mr. Anthony J. Gioia and it chief brand operating office is Srinivas Kumar.
The organizations
2.1 The brands / Types of products.
There have different types of products sell in Haagen-Dazs that is including ice cream, ice cream bars, ice cream cakes, sorbet and frozen yogurt. (HDIP. Inc) Similarly, Baskin Robbins not only sell ice-cream, they also sell many types of dessert product like soft serve, sundaes, beverages and cakes. (Baskin Robbins)
2.2 Slogan and Logo
The Slogan of Haagen-Dazs is “Made like no other,” which is mean only using the finest ingredients and offering the best ice cream, frozen yogurt and sorbet. The ice cream of Haagen-Dazs that is always available for the health conscious. (eHow.Inc 2010)
The slogan for Baskin Robbins is “31 flavors”. This idea is propose by Carson-Roberts, the advertising agency in year 1953. (Baskin Robbins 2010)
2.3 Current business development
Haagen-Dazs is a famous brand of ice cream around the world. It is starting with only three flavors which are vanilla, chocolate and coffee. In 1976, the company opened their first retail shop in New York and offered franchises throughout the United States and 54 other countries around the world. (Wikipedia 2010)
Nowadays, Baskin Robbins had already open 2,500 stores in USA and 2,500 stores in different country such as Australia, Canada, China, India, Japan, Korea, Malaysia, Middle East, Puerto Rico, Russia and UK. It also provides more than 1000 flavors of ice-cream.
Baskin Robbins lead their employee to have an opportunity to develop their ability and creativity when make a decoration to the cakes and improve their interpersonal skills when communicate with customer and even their own managerial skills.
Marketing strategies
3.1 How do they market their products?
The purpose of a marketing strategy is to facilitate a business to achieve and sustain a competitive advantage in the marketplace. Haagen-Dazs had adopted Marketing Mix strategies in their business.
Nowadays, Haagen-Dazs had done some promotion by uses print adverts to attract customers worldwide. They have more focused on the pleasure of customer when they eating ice cream which is made from finest and purest ingredients in the world. They advertising on the focused on fact that after consumer consumed their ice cream still can maintain a great body and have a purest ingredients without add on money for it. (M&M 2005) However, Baskin Robbins also do some promotion activities and campaign like do a discount promotion. They are more focused on give discount for customer to purchase more. For example when customer purchase ice-cream above RM 15, they can purchase a scoop of ice-cream at RM 0.31 only. Beside, every 31st of the month, Baskin Robbins would give 31% of discount on hand-packed ice-creams. Furthermore, to cheer up every Wednesday as a ‘Pink Day’, from 1 March until 31 March every Wednesday, when customer go to Baskin Robbins store they only need to show up anything which is pink colour to the staff then can get a double scoop of ice-cream for a price of one single regular scoop, is pay only RM7.50 to get 2 of your favourite flavors.
Place is the location which allows the organisation to spread the products and services for the customers. All Haagen-Dazs’s shop or cafes are usually located on prime streets or malls where there have many young adults. Besides, Haagen-Dazs always located at petrol pumps and other convenient areas where customers they can pick a scoop of ice cream while they on go. Beside, Haagen-Dazs’ shop or cafe always providing comfortable seat for customers and couples, bar tools, dim light bulb, rich colours to create an ambience of intimacy and love. (M&M 2005) In the same way, most of the Baskin Robbins’ stores located in shopping malls as well where there have many young adults, family and children. Baskin Robbins’ stores always decorate with rich colours and provide comfortable seat for their customers. Haagen-Dazs and Baskin Robbins also distributes their products to other market like Giant, Jusco, Carrefour and etcetera, so that it is more convenience for customer to buy their ice cream in every way.
Price is the amount which is paid by the customer to exchange the product and service. Most of the organization offers a low price to attract customer towards its product and service and also attempt to capture the target market based on cost differentiation. However, Haagen-Dazs focused on providing finest and purest ingredients. There is no price discounts or special offers in Haagen-Dazs, for purest ingredients and heath conscious, Haagen-Dazs have not reduced price to try attracting customers. Similarly, the ice cream of Baskin Robbins is a premium ice cream with high quality ingredients. Therefore, the way of Baskin Robbins to pricing their product is higher than other ice cream such as Wall, Nestle, and Cornetto.
Haagen-Dazs has produce different type of products like ice cream, ice cream bars, ice cream cakes, sorbet and frozen yogurt. They always ensure their product to maintain the luxurious taste and high quality associated with their brand by using finest and purest ingredients. It ensuring that fresh cream is used for rich creamy flavor, fresh skimmed, fresh egg-yolk and etcetera to produce a high quality ice cream. (M&M 2005) They advertise that their ice cream by ensuring their ice cream is perfectly rich in finest and purest ingredients because it contains no excess air. Further, Haagen-Dazs ice cream are unlike others brands, it is no artificial colours are used. Haagen-Dazs prefers to use better natural ingredients and make sure that is healthy and safety for customers use. Baskin Robbins has also come out variety of products like ice-cream, sundaes, beverages and cakes. Whereas, they continuously do more research and development to create new flavor of ice cream every month. Like the new flavor for this month- March is Caramel Praline Cheesecake. Nowaday, they already have more than thousand flavors of ice-cream.
They also use a low fat chocolate to make their ice-cream which provide for a customer who are mad about chocolate flavor but want to maintain their body. Customer can get the dietary and nutrition information of each product, especially for the person more stress on a good health.
3.2 Advertising methods
Haagen-Dazs’ advertisement always will be located in a high traffic area where customers will be easy catch by the advertisement through the advertisement board. Customers also will be reached through advertisements such as fliers, newspaper advertisement and through its grand opening ceremonies. Their marketing program will also be incorporated by offering special coupon prices for nearly restaurants, hotels, and shops to customers who purchase any single product at Haagen-Dazs. Major marketing will be contacted through newspaper advertisements, magazines, and flier distribution. In the same way, Baskin Robbins has adopted same advertising methods with Haagen-Dazs which is advertised through the billboard, fliers, magazines, newspapers and etcetera.
Future Plans of the organization
On 6 Jan 2010, Baskin Robbins makes an announcement that they already open a franchise sale in Miami, Florida, because like nowadays only two Baskin Robbins stores in Miami areas, so they expect can expand their business in this area. Salman Siddiqui, vice president of global business development, Baskin Robbins said that they will continue to provide a high-quality ice cream especially frozen desserts and beverages to deal with a higher demand in Dade and Broward countries. (PR Newswire 2010)
In 1999, General Mills entered an agreement with Nestle which combined their ice cream brands in the United State in a 50/50 joint venture. (Decision news media 2001)In the future, Haagen-Dazs also have a plan to open new markets in Turkey, Egypt, and in the Gulf States and they hope can opening two to four shops in Cumberland Country locations by the end of the year. (Joe Green 2010)
Conclusion
The world is changing very fast; there are many competitors in the market leading to higher competition nowadays. Focus on differentiation would achieve sustainable competitive advantage. Differentiation could arise from a wide range of areas of an organization, such as, products, pricing, brands, promotion and geographic location.
Price is crucial for customer to decide which same products but different brands are worth to purchase. Most of the company would search for low cost material to earn more profit. However, The Haagen-Dazs was differs from other companies. Haagen-Dazs are more focused on the pleasure of customer when they eating ice cream which is made from finest and purest ingredients. Consequently, the company becomes a “super-premium” brand like its product is only made from natural and purest ingredients without any artificial colourings, stabilizers or stabilizers. (Stat Counter 2008)
On the other hand, Baskin Robbins is more focused on giving discount for customers. They want to provide great product for their customer with cheaper price; therefore they always have many promotions like customer can enjoy 31% of discount in every month have 31st day. Furthermore, Baskin Robbins always has many activities function such as to cheer up every Wednesday as a “Pink Day”, that is a way to create customers’ interesting toward their brand and product. Customers might feel that is interest and worth to participant to get cheaper ice cream. ( Go Out Eat 2010)
Haagen-Dazs has focused on purest and finest ingredient with higher price, they has always targeted the adult market. Adults were financially independent and could make purchase decisions on their own. One of the reasons behind the brand’s success was the company’s emphasis on market research to understand the consumers’ preferences, desires, and needs. Whereas, the target market of Baskin Robbins are family and children. Most of the children would like to choose Baskin Robbins because of the rich colours of Baskin Robbins is very attractive and the price is cheaper than Haagen-Dazs. The shop of Baskin Robbins can be a good place for every family member can gather together and this can improve the relationship between the parents and their children.
Place is very important for company to spread their products and services for the customer. Haagen-Dazs and Baskin Robbins usually located on town, prime streets and shopping malls where there have many young adults and children. Similarly, Haagen-Dazs and Baskin Robbins have same idea which provides a comfortable environment for customers. After shopping, they can relax and enjoy their tea time in the café of Haagen-Dazs or Baskin Robbins. The edge of Haagen-Dazs and Baskin Robbins is emphasis on customers’ needs, desire, and wants. Haagen-Dazs and Baskin Robbins also distributes their products to supermarket, so that it is more convenience for customer to buy their ice cream in every way.
If discuss about flavor, the Baskin Robbins have more choices for customer compare to Haagen-Dazs because nowadays they already have more than 1000 flavors of ice-cream and every month they will create a new flavor. Haagen-Dazs has an intense focus on developing an internal and external marketing strategy. They obtained their current competitive advantage to establish premium pricing from using finest and purest ingredients to come out product excellence. They also invested in consumer research to understand the preferences and taste of their customers. (M&M 2005)
The brand image of the product is very important, Haagen-Dazs is do more better for this part, the outlook for their product it will let people feel like very classy. And their brand logo and color also give people the royal impression and will think that they are as true ice-cream connoisseurs. For the brand image of Baskin Robbins, for the view of people especially for family members, they will think that it is a good place they can gathering for their children like in Sunday-family day. (PeopaLove Brand Talk 2009)
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