Principles of Marketing: Brand Extension Report - Haagen Dazs

This report analyzes Haagen Dazs's brand extension strategy, focusing on its expansion into the EU market. It begins with an executive summary and introduction, outlining the methodology, findings, and existing brand values. The report delves into target market analysis, utilizing market segmentation to identify key demographics and preferences. It then presents a comprehensive analysis of the new market, employing PESTLE analysis to assess political, economic, socio-cultural, technological, legal, and environmental factors. The report details the proposed new product, 'Organic Haagen,' including Tauber's brand extension options, product packaging, brand positioning, and the choice of a brand name. A comparative analysis is conducted between 'Organic Haagen' and 'Luscious Organics,' highlighting key differences in product offerings, pricing, and marketing strategies. The report concludes with a summary of the key findings and recommendations for Haagen Dazs's brand extension, supported by references to relevant literature and research.

CW2 Brand Extension Report
MG412 Principles of
Marketing

Executive Summary
This report provided high understanding about significance of brand extension and
brand value for the existing company which is going to expand it’s business in the
country i.e. EU. Kapferer’s Model has used for the brand extension. Target market and
evaluation of new market and trends has analysed by the Haagen Company with the support of
Pestle analysis. Tauber’s brand extension options, Product packaging, Brand positioning etc. has
used for the product expansion in the targeted nation. Comparative analysis between two brands
i.e. Organic Haagen and Luscious organics have done in this report.

TABLE OF CONTENTS
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Methodology....................................................................................................................................4
Finding.............................................................................................................................................4
Existing Brand and Brand Values................................................................................................4
Target Market..............................................................................................................................5
Analysis of the new Market and Trends......................................................................................5
Explanation of the new product...................................................................................................6
Comparative analysis of Competition.........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing is a set of activities that undertakes by company to increase image brand
image and product positioning in the business market. To understand role of management has
example of Haagen Daze company. it offers it’s product services across UK and EU as well. In
this report will discuss about existing brand and brand value of Haagen Company in the business
market.
Methodology
This report will be completed by using the competitor analysis in respect of achieving
competitive edge over competitors from beginning.
Finding
Existing Brand and Brand Values
Brand is a term that is used by various organizations to differentiate their products from
others and this can be done by mark, word or symbol. Haagen Dazs company requires to extend
brand that can possible when company starts to use own brand over the new product line. When
company has good brand image in the business market then it supports company to gain good
profit margin over new launched product. Kapferer’s Model is best model for the brand
extension purpose (Perera, 2017). It encompasses six elements of the brand identity which have
followed by Haagen Dazs that are mentioned in following manner:
 Physique: This element can follow by Haagen Dazs to make it’s specific product segment
attractive for the customers which influences them to buy effectively.
 Personality: This element supports to define characteristic of brand in it’s consumer’s
eyes. Company can undertake this element in the form of tone, attitude, writing or colour.
 Culture: Company can design it’s ice-creams in such manner which denotes that it is UK-
based brand. Thus, company can lead closer to the consumer towards their culture
through the projected product segment.

 Relationship: Company always focuses on consumer’s needs and always try to maintain
same taste which compel them to recall their olden days. Thus, company can try to build
strong relationship between consumer and brand.
 Self-image: Under this element, users observe themselves in the brand. It means company
can encourage customers to share their views and idea and incorporates them into it’s
products and services. thus, company can give values to the consumer.
 Reflection: It can be defined as the ways in which company or brand draw it’s target
audience for the particular product segment.
Thus, Haagen Dazs can use above six elements in term of extending brand image in the new
country i.e. UK.
Target Market
Haagen Dazs uses market segmentation strategy to target specific market for the
particular product segment i.e. Ice-creams. Demographic market segment targets by the company
from the European market because this market segment further subclassify customers on the
basis of their income, lifestyle etc (Shtal and et.al., 2018). Premium pricing strategy follows by
Haagen Dazs company to penetrate UK market effectively. With this strategy company attracts
all high-class customers for the proposed product segment. But it uses moderate pricing strategy
in order to attract all middle and high class etc. Company offers it’s product services through
online media across the Europe. The targeted population of the Haagen Dazs company will be all
health concern people who believes in maintaining their diet.
Analysis of the new Market and Trends
Pestle analysis
 Political: The European Union (EU) has strong political union with lots of nations i.e.
Belgium, Australia etc. However, UK is not deal with EU that can directly impact on the
company’s functioning negatively. In addition, there have sever implication for the EU.
 Economical: Economical stability and Free trade policy (FTP) are the great opportunity
for the company that supports to expand its business in multiple countries without paying
extra tax.

 Socio-cultural: In the EU country has shared and rich cultural heritage. But there have
several social issues i.e. low female employment rate that affects the organization.
 Technological: EU is not strong in term of technology because IT sector of EU has failed
duet o economic powerhouses i.e. China and USA. In addition, there have limited skilled
workforce so company can get negative impact in it’s business in the context of
technology development.
 Legal: It has own law system that is completely different from other laws.
 Environmental: Europe Union has various environment challenges i.e. climate change,
loss of biodiversity etc. However, Haagen Dazs do not get negative impact from the
environmental factors in its business (Camilleri, 2020).
Ansoff’s Grid
This strategic model encompasses four strategic options, in which diversification strategy
should follow by Haagen Dazs because it supports to focus on entering into the new market with
the new launched flavours in the new product segment.
Explanation of the new product
 Tauber’s brand extension options: Brand extension will support company in holding new
market shares, attracts new customers towards it’s brand and developing uniqueness in a
niche market. This model encompasses seven approaches for extending brand such as
similar product in the different forms, distinct taste, customer franchise, organization’s
product, ethnic image and benefit features (Ianenko, Stepanov and Mironova, 2020).
Haagen Dazs should follow benefits and features strategy for the new product segment. It
can propose Organic and sugar-free ice creams for the targeted population i.e. health
conscious customers.
 Product packaging: Company will use environment friendly packaging and stable cups so
that product i.e. ice-cream can be intact.
 Choice of a brand name: Organic Haagen
 Brand positioning: Organization will be positioned it’s brand towards health concern
consumers and it’s unique feature of the product i.e. organic and sugar free along with
artificial sweeteners in the premium product segment extends market to the European
Market (Zafar and Siddiqui, 2019).

Comparative analysis of Competition
Organic Haagen Luscious organics
It is a new brand that organized by Haagen
Dazs ice creams. It will use standard quality
natural supplies from the organic farms that
are located nearby nation.
This company makes fresh products from
Madagascan Vanilla farm. However, quality
of organic material is too high as compared
Organic Haagen.
Brand will launch specify flavours at initial
level.
It is existing company with the lots of
flavours.
It offers sugar free ice-creams. It also offers vegetarian and gluten free ice-
creams.
It has covered limited locations in EU. It available in various location across EU and
offers online delivery services.
It focuses on premium pricing strategy. Premium and regular both pricing strategy are
followed by company.
It will follow Digital marketing strategy i.e.
social media and SEO marketing.
It follows online marketing on the print and
Google marketing.
CONCLUSION
This report has been summarized about Haagen Dazs which required to extend it’s
product services across EU. So, pestle analysis, target market etc. implemented on the Haagen
Dazs to target specific market and audience. Company changed it’s brand name from Haagen
Dazs to Organic Haagen by launching sugar free ice-creams as new product segment.

REFERENCES
Books and Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Shtal, T and et.al., 2018. Methods of analysis of the external environment of business activities.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Ianenko, M., Stepanov, M. and Mironova, L., 2020. Brand identity development. In E3S Web of
Conferences (Vol. 164, p. 09015). EDP Sciences.
Zafar, M.F. and Siddiqui, D.A., 2019. Impacts of Brand Extensions on Parent Brand
Image. Available at SSRN 3384172.