ice cream market

Iris Chen
Candy Sze
11307100411
11340690108
Content
1. High End Food & Beverage Market Overview
2. Company & Brand Overview
3. Business Model
4. China Market Analysis
5. STP Analysis
6. Competitor Analysis
7. Marketing Mix & SWOT
8. Retailing System
9. Communication
10. Conclusion
1. High-end Food &
Beverage Market
Overview
Market overview - world
Overview of high-end food and beverage market ：
World
The global high-end food and beverage
market has continued to soar
Grew by 8%
Reached US$1 trillion,
grew by 12%
Source: Bain & Company's
annual research presented
this past October to the
Altagamma Foundation
Market overview - china
Overview of high-end food and beverage market ：
China
The demand for luxury food in China is growing at a fast speed.
• Household disposable income grows impressively
• The trend of trading up continues
• Consumers tend to pursue consumption of enjoyment
• Recent years have seen a large import of luxury food and
a preference of foreign brands
Next
Market overview - china
Household disposable income grows impressively
Market overview - china
The trend of trading up continues.
Back
2. Company &
Brand Overview
The Rolls-Royce in the ice cream industry
Brief introduction
Company Overview
Founded
Bronx, New York (1961)
Founder
Reuben Mattus
Headquarter
California, United States
Products
Ice cream
Parent
Founder: Reuben Mattus
A young entrepreneur with
a passion for quality and a
vision for creating the
finest ice cream
Brief introduction
Philosophy
We select only the highest quality, all natural ingredients to
create Häagen Dazs. Häagen Dazs contains no preservatives,
artificial flavours, stabilizers, additives or colorings.
This commitment to quality is the reason why Häagen Dazs ice
cream is the finest in the world.
A sweet story
products
3 Categories:
(1) Retail Products
(2) Shop Specialists
(3) Indulgence
products
Ice Cream
Frozen
Yogurt
Bars
Crispy
Sandwich
- Pint (473ml)
- Mini Cup
(100ml)
Retail
Retail
products
Products
Gelato
Sorbet
products
Cups and
Cones
Smoothies
Sundaes
Cakes
Shop
Specialists
Sorbet
Sipper
Baristo
Dazzler
Shakes
products
Indulgence
Fondue
Mooncakes
Teppanyaki
Sushi Platter
products
Exclusive to festivals:
Easter
Mid-Autumn
Festival
Halloween
Christmas
Key Business figures
In the global ice cream market
Over 900 stores in over 54 countries
its sales grew by 7% in 2011
contributing US$750 million to total General Mills sales
captured 2% market share
Key Business figures
In China
 More than 200 shops in
China, over 40 cities
 Over 5,000 freezers, each cost
US$15,000
 Revenues were estimated at
over $100 million in 2010
 Annualized growth rate is 21%
over 2008-2010.
3. Business Model
Business model
High class
restaurants,
Hotels,
Coffee shops,
Cinemas,
Airlines,
Entertainment
companies
Branding,
Production,
Marketing &
Sales
Raw materials,
Producers,
Partner &
retail network
Production cost
Transportation cost
Import duty
“Much more
for much
more”
↓
Higher
Quality,
Higher Price
V.I.P. club –
loyalty
discount,
Feedback on
product
Own retail
stores,
Partner
channels
Product sales
Franchising fees
Niche
market:
Adults who
have high
income and
emphasize
lifestyle
4. China Market
Analysis
Market overview - world
Overall characteristics of
global ice cream market ：
(1) The world ice cream sales rise year after year
- Sales volume exceeded $ 65 billion in 2010
- Global ice cream sales are rising 2.5% annually
- Production was about 1.6 billion gallons in 2009
- Per capital consumption of 21.5 liters
(2) The industry is dominated by two global giants: Nestle & Unilever
- Controlling more than one-third of the worldwide market
Market overview - world
Market overview - china
Overall characteristics of
China’s ice cream market ：
(1) Large current and potential market
- Production and sales volume hit above 3.5 million tons in 2010
- Realized sales revenue is about 33 billion RMB
(2) Market penetration rate stays high and stable (>73%)
(3) Fast developing speed and larger industrial scale
- Annual sales values of China’s ice cream reach about 28 billion
- Increased with annual average speed of 25％ after 2005
Market overview - china
Overall characteristics of
China’s ice cream market ：
(4) The industry is still in its infancy compared to developed countries
per capita consumption
of ice-cream( 2008 )
America：
Nederland：
Australia：
Sweden：
23 kg
18 kg
17 kg
16 kg
Japan：
11 kg
China：
1.7 kg
Market overview - china
Overall characteristics of
China’s ice cream market：
(5) Ice cream unit prices in China will continue to rise as a result of the
increasing demand for premium ice cream
(6) It is forecast to report a stable growth
in the future with increasing
demand of premium
ice cream, driving an
increase in sales
Source: China Marketing
& Media Study (CMMS)
5. Segmentation,
Targeting,
Positioning
segmentation
(1) Demographic segmentation
- Income: High disposable income
- Age:
Adults
- Status:
Couples
(2) Socio-cultural segmentation
- Various national tastes and
preferences
(3) Psychographic segmentation
- Lifestyle: enjoy the luxury and
indulgence
targeting
Core target consumers:
- 20-35 years old young adults
- Middle- high class people in the income pyramid peak
- Pursuing leisure and self gratification
Niche Marketing Strategy
80/20 Principle
80% of the profits of enterprises are created by 20% of customers
positioning
Luxury brand positioning
To deliver “the ultimate experience” in taste and quality
- Product differentiation
Super-premium ice cream with high quality:
 High cream density with no excess air
 Without any artificial colorings or additives
 Naturally aromatized ingredients
- Image differentiation
 Specific logo
 Motto: “Made like no other”
6. Competitor Analysis
Competitor analysis
Domestic Brands
Foreign Brands
Competitor analysis 1
BEN&JERRY’S:
Founded： Burlington, Vermont (1978)
Founder： BEN COHEN & JERRY
GREENFIELD
Parent：
Unilever NV
Feature：
High quality & high price
Target：
High-income customers
Outlets：
In 26 countries
□ It’s Haagen Dazs’s main competitor in
America.
Competitor analysis 2
Nestle:
Founded： Nestlé and Anglo-Swiss
Condensed Milk Company
(1905)
Founder： Henri Nestlé, Charles Page,
George Page
Feature：
wholesome natural ingredients
ever-changing tastes
□ The world’s largest ice cream company.
Competitor analysis 3
Wall’S:
Owner：
Unilever
Country：
United Kingdom
Introduced：
1922
Tagline ：
ICE Cream makes u
HAPPY
□ Wall’s is ranked the second in China's
ice cream market with a retail value
share of 7% in 2008.
Competitor analysis 4
Yili Ice cream:
Parent：
Inner Mongolia Yili Industrial
group
Founded： China（1993）
Founder： Pan Gang
Feature：
wholesome natural ingredients
Target：
customers of all age
Ice cream market share: 17% in China
□ Sales volumes have been No.1
nationwide for continuous ten years.
Competitor analysis
(China,2005)
Source：Ying, Wang, “Who Will Become Ice Cream King?" China
Business Weekly, March 20th, 2005
Competitor analysis
Haagen dazs
Nestle, Wall’s
Yili
Ice cream
category
Premium
Mainstream
Low-end
Positioning
High life quality
and ultimate
experience
Affordable
well-known brand
Cheap popular
products
Price
High price
(>30RMB)
Medium price
(2- 10RMB)
Low price
(1-5 RMB)
Place
Exclusive shops
Supermarket
Supermarket
Targeting
High income
groups
Ordinary people
Ordinary people
Levels of
marketing
segmentation
Niche marketing
Mass marketing
Mass marketing
Competitor analysis
Haagen dazs
Nestle, Wall’s
Yili
Pull strategy(High
brand loyalty and
high involvement
in the category)
Average brand
loyalty
Push strategy
(low brand
loyalty)
Very low
High
Highest
Penetration
rate
Low
Ordinary
High
Main attraction
High quality and
enjoyable
environment
Reliable quality
and affordable
price
Competitive
price
Channels and
marketing
decision
Market share
Competitor analysis
Rank of Ice Cream
NO.1 46.1%
Brands Penetration
Rate in China(2009)
NO.2 44.9%
NO.3 33%
Source：
China Marketing & Media
Study (CMMS), based on
an investigation on 70000
samples in 30 cities.
NO.4 27.2%
NO.5 20.7%
Competitor analysis
Haagen-Dazs as a leader in high-priced ice cream market, its competitive
advantages are due to its ingredients and accurate market positioning:
Source:http://justhaagendazs.w
ordpress.com/competitors/
7. Marketing Mix,
SWOT
Marketing mix - product
High quality
• Finest ingredients & Rich creamy taste
Diversification
• Different products, sizes and up to 90 flavors !
Marketing mix - product
Adaptation from flavours to products：
•
•
•
•
•
Green Tea flavor
Perfume shaped ice-cream cakes
Fondue
Teppanyaki
Ice cream mooncake
• Represent 28% of Haagen Dazs
revenue in China
• 25% annual growth in sales since
its launch in 1997
Marketing mix - price
Pricing Strategy：Premium price
- Price in China is 5 times the US price:
(Mini Cup; US$1 vs 33RMB)
(Pint: US$4 vs 88RMB)
- Price 3-4 times more expensive than general competitors
- Price varies (normal vs limited flavors)
2 classical marketing principles
(1) As for the high quality products, the price can be disproportionately
increased.
(2) Higher price and a respected brand name corresponds to high quality
Marketing mix - place
• Flagships & Exclusive shops
• Supermarkets
• Partnerships:
High class restaurants
& Coffee shops
Airlines, Cinemas,
Five star hotels,
• Entertainment companies：
Disneyland
• E-business： Official Website,
Tmall, Amazonfresh
Marketing mix - Place
Marketing mix - promotion
• Word of mouth
• Free degustation in shops
• Advertisements (posters,
magazines)
• Social networking
(e.g. facebook, wechat)
• Events (e.g. product launch
events)
• Sponsorship (e.g. the open
air cinema, Luna Cinema, in UK)
Marketing mix - promotion
Sweet Love
Romantic
Warm
Friendship
Marketing mix - promotion
Localization/Adaptation
• Using Chinese Celebrity
Endorsements
• Changing the slogan from
“dedicated to pleasure” to “Love
her, treat her Haagen Dazs.”
Swot analysis
Strengths
•
•
•
•
•
Pioneer
Excellent Brand Image
Good Product Quality
Continous Extensive Research
International Brand
Recognition
Opportunities
• Global Warming
• Increased Demand in Exotic
Products
• Increased Range of Low Fat
Products
Weaknesses
• Seasonal Product
• Super Premium Price
• Narrow Target
Customers
• High Calorie Products
Threats
• Keen Competition
• Healthy Lifestyle
• Increased Cost of
Ingredients
8. Retailing System
retail system
Specialty Store:
•Narrow product line with a deep assortment
Retailing Positioning Strategy:
•Narrow product assortment + High value added
Levels of Retail Service:
Self-service
Self-selection
Limited service
Full service
retail system
Procurement:
• Extremely careful in selecting products and suppliers
• Close links are maintained with suppliers
• Train farmers & familiarized them with Haagen Dazs’
manufacturing process
Inventory & Logistics
• Distribution network’s capillarity increased
• Extend business to other countries
• Built various plants and distribution centres all around the
world
retail system
Target Market
Retailers’
Marketing
Decisions
• High income adults who emphasize
lifestyle
Product
Assortment
• Ice Cream Products
Store
Atmosphere
• Fancy and cozy
Price
Communication
Location
• Premium
• Word of mouth
• Advertisements
• Central Business Districts
• Regional Shopping Centres
9. Communication
communication
Customer Resource Management
Membership System: Häagen-Dazs Club
Requirement：a cumulative 500RMB
Service:
consumption
•Purchasing privilege (10% off!)
•Redeem points
•Birthday discount
•Direct-mail brochures
•Occasional fashion parties
communication
Customer Resource Management
•Hold fashion party from time to time
•Get feedback on products
•Two-way communication
communication
Integrated Marketing Communications Campaign
•Launched the “Haagen-Dazs loves honey bees” campaign
•Employed a rich mix of promotional elements
•Helped make it into “a brand with a heart
and a soul”
•Enhance the brand’s essence by creating
shared value messages
•A part of strategic, long-term approach
10. Conclusion
Thank You