Marketing Mix Analysis of Haagen-Dazs and Ben & Jerry's Ice Cream Brands
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This report analyzes and compares the marketing mix of Haagen-Dazs and Ben & Jerry's ice cream brands, including their target market, positioning, product, price, place, and promotion strategies.
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MG412 Principles of Marketing
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TABLE OF CONTENTS INTRODUCTION......................................................................................................................3 FINDINGS.................................................................................................................................3 CONCLUSION AND RECOMMENDATION.........................................................................5 REFERENCES...........................................................................................................................6
INTRODUCTION Marketing mix refers to the set of actions that are used by the organizations with the sole purpose of promoting their product and services in order to achieve the desired objectives successfully. In this report, Haagen-Dazs ice-cream and Ben and Jerry’s ice-cream, the two ice-cream brands are taken, which are the two leading luxury ice-cream brands in UK. The market share of both of them are 16% and 26% respectively. The sales of both the brands have grown up by 8% in 2019. FINDINGS Comparison of target market In order to analyse and compare the target market of both the brands segmentation, targeting and positioning of the brands is conducted. STP Segmentation It has segmented its business on three major segments which are demographic, socio- cultural and psychographic. On the demographic part, the company has aimed at adults with higher income and can afford to spend on luxuries with respect to premium ice-cream. It has also focussed on couples by associating flavours with romantic advertising. The other is socio-cultural segment, Haagen-Dazs ice-cream has been successful in intercultural management (Camilleri, 2018). It has variety of flavours which covers needs of different countries. The last segment is psychographic, in this, it has targeted those people who love to be the part of luxury brands and wants to feel special with high level of quality. It has connected with the people emotionally. This segment is very important for Haagen Dazs. Ben and Jerry’s ice-cream is focussed on children and families. It has divided the market into income groups. Also, it has focussed on social class who just want to enjoy the ice-cream and relax in front of TV. The market has been segmented into consumer loyalty which has helped it in taking right steps by understanding their needs. Psychographic segment wise, it has targeted people who are fun loving, outgoing, affluent and pleasure taking. Targeting Haagen-Dazs ice-cream has differentiated its target customers from the beginning of its growth stage. It has always focussed on adults, romantic couples who loves premium and luxury ice-cream (Armstrong and et.al, 2018). It has also targeted health conscious people who loves desserts but prefers low fat and natural ingredients. Thus, it has focussed on these two target segments which provides higher profit margins even though having small market. It has mainly targeted high income group people as has placed its product as luxury product. Also, it has targeted to those people who just want to relax and enjoy their ice- cream. It has targeted premium customers. Positioning
Haagen-Dazs has positioned itself based on the product differentiation. It has maintained its quality because of the specially selected ingredients coming from their country of origin. Also, its product with high cream density along with no excess air helps in making its product offering a unique experience (Andaleeb, 2016). The brand fulfils its image by offering the variety of products by best ingredients all around the world. It has also positioned on image differentiation as a luxury brand. It also has a special logo which represents the luxury icon. Ben and Jerry’s ice-cream has positioned its product in such a way that it distinguishes it from the other competitors and gave it a better strategic advantage. It has provided its product from low to high prices. It has made its products from low fat ingredients that meets the need of health conscious people. Product For analysing the product mix of the brands Levitt’s model of brand is used which has four product level. First is the core product, which refers to the main product of the business. Haagen-Dazs ice-cream and Ben & Jerry’s ice-cream has the main and the only product ice- cream but the only difference is their target audience. Second is expected product, it refers to the product that consumers expect in terms of benefits which will help in solving their problem (Grigorescu and Zaif, 2017). In this part, product designing also plays a crucial role. Both the brands have successfully met the needs of the customers in terms of flavours, product differentiation, taste. Both the brands have also made low fat products for attracting the potential health conscious customers. Next is Potential product, it refers to how the existing product can be modified to meet the changing needs of the customers and taste. In order to increase the sales of the product from the existing customers it is very essential to come up with new products to remain in the market and making strong presence (Gupta and et.al, 2016). Ben & Jerry’s ice-cream and Haagen-Dazs ice-cream are working continuously to upgrade their products and to remain in the mind of the customers. The augmented product refers to the additional benefit that is provided to the customers outside the actual product. In this stage also, both the brands are have provided additional benefits like free replacement, warranty period, any recipe idea, packaging code etc. According to Aaker brand of personality which states and associates the set of human characteristics with the given brand (Kumar, 2018). It connects emotionally and functionally. It is based on the personality of the people. Haagen-Dazs ice-cream has the personality of sophistication which includes upper class and charming personality (Ahmad and Thyagaraj, 2017). Ben & Jerry’s ice-cream has the personality trait of excitement which includes trending, spirited, unique personality. Price Haagen-Dazs ice-cream has priced its product on a premium level because of the ingredients used in preparing its product and also it has the targeted higher income group people who prefers high price and premium products (van de Pol and Wolle, 2016). It has price variation based on the flavours and is giving tough competition to its competitor Ben & Jerry’s ice-cream. On the other hand, Ben and Jerry’s ice-cream, is also using premium pricing strategy in order to attract premium higher income group people. Place
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Haagen-Dazs ice-cream is directly distributed through its refrigerated vehicles. It main customers are the super market, hotels, restaurants, high class shops, food chains like pizza hut, movie places etc. It is mainly known for connecting with its customers all across the globe. For attracting and impressing its customers it has made upscale restaurants and has also made it possible for customers (Papenfuss, 2019). On the contrary, the Ben and Jerry’s ice-cream is also very effective in its distribution network. The milk that it is using to prepare its product comes from a local farm and then it is separated into two heavy cream and condensed skim milk. After all this, the milk is delivered to the manufacturing site. The Ben and Jerry’s ice-cream is mostly available in its store only. Promotion The products of Haagen-Dazs ice-cream is not much advertised on traditional modes like TV, radio. It mostly uses print media for advertising its product. It also uses sponsorship as a mode for advertising its products. It has also engaged into events and seminars and other functions in order to promote its products. It offers various discounts and uses coupons which can be used by the consumers for getting discounts or price cut. This method has helped it in attracting more and more customers. Also, Haagen-Dazs ice-cream, has a strong presence on social networking sites. It involves with its customers while posting something about its products or any event taking place which welcomes the ideas, opinion and other comments of the customers. This strategy helps in meeting the changing needs and preferences of the customers and also a perfect mode to increase its customer base. On the other side,the Ben and Jerry’s ice-cream, promotes its products in an innovative way. It uses TV commercials and billboards. Apart from this, it has also come up with celebrity promotion which has helped it in grabbing more customers and increasing its customer base. It has also effectively used social networking sites for promoting its product. It has an effective contenting writing technique which works in such a way that it attracts customers to once try its new product and then become the regular customers. CONCLUSION AND RECOMMENDATION It can be concluded from the above that both the brands have effectively used 4Ps of marketing mix. They have applied it in an innovative way which has happened and become possible only because of their highly skilled marketing and promotion team. They applied 4Ps of marketing mix in such a way in order to grab their target customer segments who are premium class and higher income group people. Based on the target group, promotion, place and price of the product is determined and put in place. The Ben and Jerry’s ice-cream has been more successful in the application of marketing mix which can be easily seen and judged by seeing its global presence, product awareness and the market share. The Ben and Jerry’s ice-cream, can further improve its presence by selling it in other large super market like Walmart and food chains. The Haagen-Dazs ice-cream, needs to expand its product range to not only to adults but also kids with variety of flavours which will help it in attracting more customers as children are major fans of ice-cream.
REFERENCES Books and Journals Ahmad, A. and Thyagaraj, K. S., 2017. An empirical comparison of two brand personality scales: Evidence from India.Journal of Retailing and Consumer Services.36. pp.86- 92. Andaleeb, S. S., 2016. Market segmentation, targeting, and positioning.Strategic Marketing Management in Asia. pp.179-207. Armstrong, G. M. and et.al, 2018.Marketing: an introduction. Pearson UK. Camilleri, M. A., 2018. Market segmentation, targeting and positioning. InTravel marketing, tourism economics and the airline product(pp. 69-83). Springer, Cham. Grigorescu, A. and Zaif, A., 2017. The concept of glocalization and its incorporation in global brands’ marketing strategies.International Journal of Business and Management Invention.6(1). pp.70-74. Gupta, S. and et.al, 2016. Marketing innovation: A consequence of competitiveness.Journal of Business Research.69(12). pp.5671-5681. Kumar, A., 2018. Story of Aaker’s brand Personality scale criticism.Spanish Journal of Marketing-ESIC. Papenfuss, I., 2019.Ben & Jerry’s(Doctoral dissertation). van de Pol, M. and Wolle, A. L., 2016. Brand extension in the FMCG sector: A study of consumers’ attitudes towards a brand extension in the context of Ben & Jerry’s proposed launch of a dairy-free ice cream in the Nordic market.