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Case Study – Pillsbury’s Haagen-Dazs Ice Cream Free essay! Download now

Home > A Level > Business studies > Case Study – Pillsbury’s Haagen-Dazs Ice Cream

Case Study – Pillsbury’s Haagen-Dazs Ice Cream

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Case Study – Pillsbury’s Haagen-Dazs Ice Cream essay previewCase Study – Pillsbury’s Haagen-Dazs Ice Cream essay previewCase Study – Pillsbury’s Haagen-Dazs Ice Cream essay preview

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Haagan Dasz

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Case Study – Pillsbury’s Haagen-Dazs Ice Cream

Situation Analysis:

Background:
Why do Consumers buy ice cream?
Ice cream is a discretionary food. Consumers buy it not because they need it but because they want it. Purchase situations could be during special occasions (birthdays, anniversaries) and seasonal demand cycle (summer). Ice cream is served to entertain guests or is eaten as comfort food. The brand of ice cream chosen is influenced by past experience, and by reliable endorsers. Most often, the criteria that consumers set in buying ice cream are price, quality and nutritional value. The decision of purchase depends on the individualities of the consumers. Price is the primary factor for economic-conscious; quality and brand for status-conscious; and nutritional value for health-conscious.

Company and Product
Pillsbury Haagen-Dazs is one of the leading brands known for its super premium ice cream. The market has now expanded to 55 countries and with over 900 shops. Due to health concerns of consumers nowadays, several competitive brands have begun producing low-fat products. Haagen-Dazs also introduced a line of low-fat super premium ice cream and frozen yogourt. However, the competition never ends there. New products, like sherbet, have emerged and new brands have entered the market. Jan Phillips, Product Manager for the North American market was given a task of creating a strategy to counter competition and increase market share of Haagen-Dazs.

Objectives:
To develop a new product in order to counter the increasing competition from other low-fat and low-calorie ice cream products as well as the new entrants to the super premium category

SWOT Analysis:

Strengths
Established brand name
High quality
Weaknesses
Higher price
Opportunities
461 million* population in North America; huge potential market
* Source: Central Intelligence Agency
Threats
Squeezing in of new entrants to ice cream market
New product development by competitors

Market:
North America has a population of 461 million people. This is a huge potential market for super premium ice cream. However, this is far from the truth. Although there are some consumers who are still willing to pay more for quality, more and more are opting to buy cheaper regular ice cream due to economic downturn. The diet-conscious consumers choose low-fat and low-calorie foods for health concerns. These last two groups of consumers are now being tapped by competitors, which contributes to the levelling off of sales of super premium ice cream. New entrants have also eroded market share.

Competition:
The competitors with their number of stores worldwide are the following but not limited to:
Ben & Jerry’s (804 stores)
Coldstone Creamery (1380 stores)
Baskin Robbins (6000 stores)
TCBY (over 2500 shops in over 67 countries)
Dairy Queen (over 5900 stores in over ...

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