Marketing Case Analysis-Haagen Dazs

Marketing Case Analysis-Haagen Dazs

Executive Summary

Pillsbury Haagen-Dazs is currently facing stiff competition from other ice cream producing companies in North America. As such, the new product-market manager is faced with the task of ensuring the company develops a strategy plan to overcome the stiff competition in North America. Apparently, the demand for healthier products has influenced ice cream companies in North America to shift to producing low-fat ice cream and low-fat yoghurt. However, smear campaign from yoghurt producing companies still make it hard for companies such as Haagen-Dazs to introduce low-fat ice cream. As a result, the hard task that Jan Philips faces involves whether to introduce a sorbet line as an alternative or to establish a strategy that will ensure the company remains at the helm as a leading brand in ice cream production.

Analysis

SWOT Analysis of Pillsbury’s Häagen-Dazs

SWOT Analysis
Strengths	Haagen-Dazs is a leader in the North America ice cream industry. It can use this position to strengthen itself in the North American market because customers trust a leading brand.The Company enjoys economies of scale compared to competitors. This position provides Haagen Dazs with a vantage point in terms of improving quality and reducing the cost of their products. The Company is profitable globally with total sales of more than $900million.This shows that customers out there still trust products from Haagen Dazs.
Weaknesses	Haagen-Dazs lacks a clear strategy to counter competition. The Company is in a dilemma regarding the strategy plan to implement. As a result, it has hired a new product-market manager to help the Company come up with a suitable strategy to counter competition.
Opportunities	Haagen Dazs can also venture in low-fat yoghurt to improve its sales. Health conscious consumers are shifting from consumption of ice cream to low calorie yoghurt.There is also opportunity to expand to other market segments such as the supermarkets across North America. There is room for expansion since the market for premium ice cream continues to grow at the rate of 2%-3%.
Threats	Haagen-Dazs faces stiff competition from new entrants.There are risks involved in introducing a line of sorbets as an alternative to ice cream.There is smear campaigns from companies producing alternative products such as low-fat yoghurt.

A SWOT analysis of Pillsbury’s Haagen-Dazs shows the Company has established itself as a leader in the ice cream industry. The Company also enjoys economies of scale and is profitable globally with total sales of more than $900million.On the other hand, weakness for the Company emanates from the inability to identify the right strategy to counter rapid changes and stiff competition. In terms of opportunities, Haagen-Dazs can venture into alternative products and there is room for expansion to other market segments. While threats for the Company mainly emanates from new entrants.

Main Problem and Supporting Rationale

The main problem for Haagen-Dazs involves how to counter stiff competition from other ice cream producers and alternative products. With the increase of new entrants, Haagen Dazs position and sales in the market is affected significantly.

Alternatives

As the company grapples with competition in the North America ice cream industry, the alternatives for Haagen-Dazs include:

I. Developing a differentiation strategy

            Differentiation strategy involves coming up with a strategy that is different from others in the market.

Pros:

• The Company will remain unique in terms of its products
• The Company will gain a competitive edge
• The Company will increase its sales volume

Cons:

• A considerable time is wasted in establishing a new strategy
• Such a strategy is resource intensive
• The strategy may fail to work

II. Capitalizing on its economies of scales

Haagen-Dazs is a global leader in the ice cream industry and its huge resources is an advantage compared to other companies in the industry.

Pros:

• The Company is in a vantage point to cut costs and improve quality of its products
• The Company can penetrate the market easily by using its resources
• The Company is also in a vantage point to enhance product and process innovation

Cons:

• Resources can be wasted on new ventures that may fail
• The Company may face unrealistic demands from customers

III. Identify new opportunities

New opportunities in this industry involve producing other alternatives to ice cream or producing products that meet the taste and preferences of customers.

Pros:

• New opportunities improve sales
• It helps a company maintain a competitive advantage

Cons:

• There are  in exploring new opportunities

Recommendation and rationale

Haagen Diaz needs to develop a differentiation strategy. This is critical in overcoming competition in a rapidly changing ice market in North America.

Implementation of the recommendation

In order to develop a differentiation strategy, Haagen-Dazs needs to:

• Immediate: Identify the competition
• Short term: Identify opportunities
• Long term: Establish a sustainable strategy plan to ensure the Company remains at the helm on a long-term basis.

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