Developing Launch Marketing Strategy for Haagen-Dazs Premium Ice-Cream in Iranian Market

This literature review discusses the development of a launch marketing strategy for Haagen-Dazs premium ice-cream to enter the Iranian market after 35 years of sanctions. It covers topics such as brand strategy and equity, customer segmentation, consumer buying decision framework, market entry strategy modes, and more.

LITERATURE REVIEW ON
Develop launch marketing strategy for Haagen-Dazs
premium Ice-Cream to enter the Iranian market after
35 years of sanctions
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Table of Contents
Introduction..........................................................................................................................................3
Brand Strategy and Equity...................................................................................................................3
Impact of brand image......................................................................................................................3
Customer Segmentation...................................................................................................................4
Consumer buying decision framework.............................................................................................4
Market Entry Strategy Modes..............................................................................................................5
Transaction Cost Analysis................................................................................................................5
The OLI model (The ownership, location and internationalization)................................................6
The Organization Capacity Model...................................................................................................7
The DMP model...............................................................................................................................8
Conclusion............................................................................................................................................9
References..........................................................................................................................................10
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INTRODUCTION
The present study has been made on marketing concepts and plans that can be adopted at the
time of developing new products and while entering into new market place. In the study, researcher
has discussed market scenario of Iranian market as Haagen Dazs Premium Ice cream has been
entering into the same market place. In Spite of having many competitors, Haagen Dazs ice cream
has made a plan to enter in Iran for enhancing the brand value of ice cream products that the cited
has in its product line. In such respect, customer segmentation and consumer buying decision
framework has been discussed in the present research report. Several models have also been applied
in the research report for the purpose of assisting Haagen Dazs to manage business in Iranian
market in effectual manner. After 35 years of sanction, the business entity got the opportunity to
enter into Iranian market; therefore effective marketing strategy has been developed for the same.
BRAND STRATEGY AND EQUITY
In the present era, the recent globalization has led to increased international market activities
with various foreign brands who competes with local brands in host countries. Entering into Iranian
market will assist Haagen Dazs to get more customer satisfaction because consumers of Iran highly
prefer to consume foreign based products (Hennessey and Jeannet, 2005). End users have different
perception towards foreign products even in the same product category. Iran is one of the fastest
growing developing economies in the world and there consumer prefer foreign based products
because of their symbolic importance.
Impact of brand image
The success of foreign and local brands in the Iranian market is dependent largely on
perception of consumers towards these branded products. Brand is a powerful tool that attract more
consumers towards specific products and services and understanding a brand image of the company
is vital in terms of retaining more customers towards the products and services. The conception of
brand image combines the identification of brand image with intangible assets of the company that
needs to be managed in order to use it efficiently (Ogunsola and Ahmad, 2011). Iranian customers
are highly emphasized towards branded products because of their purchase power and brand
consciousness nature. Impact of brand image would assist Haagen Dazs to acquire more attention
from the customers and this would also increase product selling opportunities. Consumers of Iran
generally believe in making a satisfying purchase by choosing well-known brands.
In Iran, market image of Haagen Dazs should be well associated with quality aspects so that
large pool of customers can get the products. In terms of specifying the impact of brand image, it
can be said that the marketing strategies of Haagen Dazs must have enticing elements for grabbing
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the attention of end users. The views of Paul (2008), points out that brand equity depicts unique
marketing impacts on the brand; therefore considering optimistic phase of brand equity, consumers
willingly get ready to pay for more level of quantity because of attractiveness of the products. In
order to increase sales and profitability, it is essential for Haagen Dazs to generate awareness among
market place so that consumers can make choices accordingly (Paul, 2008). Since, Haagen Dazs is
entering into new market; therefore it is essential for the business to emphasize more on needs and
preferences of clients and this will assist in maximizing sales potential.
Customer Segmentation
Segmentation is the criteria where in Haagen Dazs can segment Iranian market on the basis
of geographic, demographic and psychographic criteria. Haagen Dazs has adopted many levels of
segmentation where in customers are selected on the basis of their preferences and needs. Hence,
Haagen Dazs can segment customers on the basis of mass marketing in which the business needs to
engage the mass production, mass distribution and mass promotion of one product for all available
consumers (White, 2009). However, on the other hand, demographic segmentation criteria can also
be adopted in which age, life stage, income and generation dimensions should be considered.
Since, Haagen Dazs has wide range of ice cream products; therefore it is essential for the
entity to consider age and life cycle stage. Needs and abilities of consumers change as per the age
through years. People prefer to have products made through Ice cream; hence as per their taste,
Haagen Dazs can segment the products for customers. Old people, youngsters and kids are the
major categories on the basis of which Haagen Dazs can enter into Iranian market place (Karwan
and Deans, 1993). Demand for ice cream changes due to taste and preferences; however Haagen
Dazs is a renowned brand which has variety of products with quality aspects. Therefore, the brand
has the potential to survive in Iranian market.
Hence, in the present case, Haagen Dazs can segment the market on the basis of those
customers who prefer to have ice cream products. Kids, youngsters and old people can be targeted
for the same as that will assist Haagen Dazs to sell more products in Iranian market. People in Iran
especially prefer to have food from restaurants and hotels; therefore Haagen Dazs has the
opportunity to sell more ice cream products to such places. Customers usually come at these places;
hence Haagen Dazs can make collaboration with such places (Wilkinson and et.al, 2007). At the
same time, Haagen Dazs needs to emphasize more on promotional strategies so that large number of
customers can be enticed towards the existing products and services. Similarly, the business needs
to highly consider market scenario of Iran so that market strategies can be developed accordingly.
Consumer buying decision framework
Consumer buying behavior is influenced by a number of dimensions such as brand
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awareness, brand loyalty, quality aspects and brand association. The frequency of repeat purchase
can be enhanced in the particular case thorough emphasizing on customer satisfaction and
beneficial aspects. Consumers of Iran are highly associated with purchase of branded products;
hence the opportunities of growth are higher in Iranian market place. From theoretical point of
view, Kayworth and Leidner (2008), has investigated the relationship between consumer buying
behavior and customer satisfaction. Regarding this, consumer buying behavior can bridge between
brand equity and customer satisfaction. Haagen Dazs needs to consider the needs of clients and
according to that, wide range of products should be brought at market place.
MARKET ENTRY STRATEGY MODES
Every business needs to adopt suitable market entry modes while entering into new areas
and market places; therefore Haagen Dazs also needs to adopt feasible marketing strategy so as to
launch the products in Iranian market. In the below section, several market entry strategies are
mentioned that could assist Haagen Dazs to enter in Iranian market suitably (Lowe and Doole,
1997). Market entry strategies are highly risk oriented and it also changes the scenario of business;
hence on the basis of feasibility, suitable strategy should be adopted.
Transaction Cost Analysis
Transaction Cost Analysis is a business model that considers channel members, production
cost and governance. It is also considered a method of determining the effectiveness of a company's
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Illustration 1: Consumer buying decision framework

portfolio transaction; hence the model will assist Haagen Dazs to analyze portfolio transactions and
financial capacity as well (Smyczek and Glowik, 2011). TCA helps in analyzing two possible prices
for a product. The model is also useful in terms if ascertaining trade prices and along with this, it
also analyzes favorable prices. Through this method, investors, managers and brokers will be able
to analyze if the transactions are taking place according to the trading procedures. Further, this also
aids in ascertaining if the managers of Haagen Dazs are trading effectively (Understanding the
Transaction Cost Analysis, 2015).
However, on the other hand, the main challenge of TCA is to determine if the trade price is
high or low in the given market condition at the time when the order is processed. Under this, trade
prices are commonly compared to benchmark prices. However, it can be said that Transaction Cost
Analysis will assist Haagen Dazs to consider the opportunity costs that are associated with trades.
Nonetheless, failure to trade could be prejudicial to portfolio management if the trade turned out to
be very much profitable for the business entity (Kotler, 2006).
The OLI model (The ownership, location and internationalization)
The OLI model was introduced with the purpose to identify the factors that influences both
the initial act and growth of foreign production. The model also emphasizes on foreign direct
investment and how it aids the entities to remain at market place through new business practices.
The concept of ownership advantage is developed to explain international production which
enhances the scope of operating business in diverse countries (Peter, 2005). The OLI model is based
on three major dimensions such as ownership advantages, location advantages and internalization
advantages. All the terms specifies advantages derived from internationalization processes and
along with that, it also emphasizes on risks that are concerned with new market entry. OLI model
aids in explaining entry mode decision and the basic ideas were also supported by several empirical
studies. It intends to explore all important all important factors that impacts entry mode decisions;
but it does not consider strategic factors which presents in every changed situation (Fatine, 2014).
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The model can be typically applied at Haagen Dazs so as to encourage profitability aspects
of the business along with foreign market share. In terms of ownership advantages, the model
explains the reasons for which MNEs exist in the market place and for which they chiefly
emphasizes on entering into new markets (Bradley, 2005). Further, it also depicts the benefits that
are specific to the nature and the nationality of the owner; hence this will assist Haagen Dazs to
bring new product at market place. Internalization advantages arises from transferring ownership
advantages across national boundaries within the organization. Further, it will also assist Haagen
Dazs to get location advantages which will arise afterwards Haagen Dazs will enter into Iranian
market place. Cost of production will also be reduced in the case when Haagen Dazs will produce
same sort of ice cream products to Iranian customers (Ferrell and Hartline, 2010). The main aim of
the model is to enhance international investment through conducting business activities in such a
manner which can lower cost of exporting or other contractual agreement.
The Organization Capacity Model
Organization capacity Model is based on organizational theory and it also considers a firm
as a bunch of capabilities and knowledge where skills of the employees as well as organizational
capability is developed together. The model states that there must be suitable entry mode strategy
selected while entering into new market place. Further, Organization Capacity Model aims to
specify those issues that might come while expanding business operations in other market place.
This also depicts that capability of Haagen Dazs could be enhanced in the case in entering into
Iranian market place. It also aids the firm to analyze those areas where more development and
improvement can be facilitated for business growth and potential (Understanding the Transaction
Cost Analysis, 2015). According to the specific model, it is essential for Haagen Dazs to consider its
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Illustration 1: The OLI model

own capability while making decisions related to market entry. However, on the other hand, the
model has several limitations as well. It is a traditional assumption that the capacity of an individual
firm (which is limited to ownership), becomes valid when firm's efficiency related decisions are
significantly influenced by collaborative agreements which might change its capacity strongly
(Neary, 2012).
At the time of entering into new market place, it is imperative for Haagen Dazs to consider
firm's capability as well as efficiency because that could only drive the business entity to operate the
business successfully at market place. As per the model, Haagen Dazs will have to pay more
concern towards organizational efficiency rather than capacity and in the same, it is will also assist
the brand entity to adopt suitable measures of enhancing efficiency aspects. However, on the other
hand, the model is not suitable in all the cases because somewhere it neglects political and
sociological impacts on decision making process (Fatine, 2014). Apparently, Haagen Dazs will be
entering into Iranian market place; therefore the business might be facing several issues due to
social, political and economic aspects. Thus, it can be said that the model would not be able to
showcase the impacts of social and political facets on business decisions. While entering into
Iranian market, it is required for Haagen Dazs to find out legal and political scenario; however the
model will not assist Haagen Dazs to get information about such aspects. The model is suitable in
terms of encouraging organizational capability in retaining its business position.
The DMP model
The Decision Making Process model is useful in selecting the best market for new entry. The
model will be useful for Haagen Dazs because it involves several stages that affects decision
making capability of the organization. However, the subsequent organization will have to consider
many things into account at the time of entering into Iranian market place. The business will have to
develop new marketing strategy at the time of entering into nee market place and along with that,
new objectives are also required to be developed for the new expansion plan (Kayworth and
Leidner, 2008). Hence, all the aspects related to new market expansion should be included in the
marketing strategy of Haagen Dazs. In such respect, decisions should be taken regarding new
objectives, environment of the business and all the associated costs and risks. Further, DMP model
will assist Haagen Dazs to modify and improve the process of decision making; however it will not
consider those factors that could impact on entry mode choices.
The model will assist Haagen Dazs to make appropriate decision regarding new market
entry and this will also consider new objectives for Iranian expansion. However, on the other hand,
the model does not consider the role of organization in market entry; hence this will ignore the
importance of Haagen Dazs's role in Iranian market place (Smyczek and Glowik, 2011). At the
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same time, the model also ignore the role and impact of decision maker within the decision making
process. However, considering other dimensions, it can be said that Haagen Dazs needs to consider
all the important stages that comes under decision making process and that helps the business entity
to conduct all the operations in effectual manner (Hennessey and Jeannet, 2005). Decision Making
Process will also assist Haagen Dazs to undertake suitable and effective business decisions for
managing the operations in Iranian market place.
CONCLUSION
Summing up the entire study, it can be said that Haagen Dazs needs to adopt suitable
marketing strategies so as to launch the products appropriately in specific market place (Iranian
market). The study has made with relevant research materials which shows suitability of the applied
models. Prior entering into Iranian market place, Haagen Dazs needs to emphasize on brand equity
policy and strategies as that will also assist the business entity to find out the level of existing
competition in Iranian market.
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REFERENCES
Journals and Books
Bradley, F., 2005. International Marketing Strategy. Financial Times/Prentice Hall.
Ferrell, C. O., and Hartline, D. M., 2010. Marketing Strategy. 5th ed. Cengage Learning.
Hennessey, D. H. and Jeannet, P. J., 2005. Global Marketing Strategies. 6th ed. Dreamtech Press.
Kapferer, N. J., 2008. The new strategic brand management: creating and sustaining brand equity
long term. 4th ed. Kogan Page Publishers.
Karwan, R. K. and Deans, C. P., 1993. Global Information Systems and Technology: Focus on the
Organization and Its Functional Areas. Idea Group Inc (IGI).
Kayworth, R. T. and Leidner, E. D., 2008. Global Information Systems: The Implications of Culture
for IS Management. Routledge.
Kotler, P., 2006. Marketing Management, Analysis, Planning & Control. Prentice Hall, New Jersey.
Lowe, R and Doole, I., 1997. International Marketing Strategy: Contemporary Readings. Cengage
Learning EMEA.
Ogunsola, O. K. and Ahmad, K., 2011. An empirical assessment of Islamic leadership principles.
International Journal of Commerce and Management. 12(3). pp.291 – 318.
Paul, J., 2008. International Marketing: Text and Cases. Tata McGraw-Hill Education.
Peter, J. P., 2005. Consumer Behaviour and Marketing Strategy. Irwin Mc Graw-Hill, Boston.
Smyczek, S and Glowik, M., 2011. International Marketing Management: Strategies, Concepts and
Cases in Europe. Oldenbourg Verlag.
White, M., 2009. A Short Course in International Marketing Blunders: Mistakes Made by
Companies that Should Have Known Better. World Trade Press.
Wilkinson, J. T. and et.al., 2007. Reaching the international consumer: An assessment of the
international direct marketing environment. Direct Marketing: An International Journal.
1(1), pp.17-37.
Online
Fatine, 2014. Marketing strategy of Häagen-Dazs. [Online]. Available through: <http://brand-
audit.blogspot.in/2011/12/marketing-strategy-of-haagen-dazs.html>. [Accessed on 12th April
2016].
Neary, P. J., 2012. Foreign Direct Investment: The OLI Framework. [PDF]. Available through:
<http://users.ox.ac.uk/~econ0211/papers/pdf/fdiprinceton.pdf>. [Accessed on 12th April
2016].
Understanding the Transaction Cost Analysis, 2015. [Online]. Available through:
<https://www.interactivebrokers.com/en/software/reportguide/am/reports/
understandingthetransactioncostanalysis.htm>. [Accessed on 12th April 2016].
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