Brand Extension Report: Haagen Dazs Ice Cream for EU Markets

This report focuses on extending the Haagen Dazs ice cream brand into the European Union market. It begins with an executive summary and introduction outlining the report's goals, followed by a detailed methodology that includes competitor analysis. The findings section analyzes the existing brand and its values using Kapferer's model, identifies the target market as high-end consumers, and conducts an external market analysis using PESTEL and Ansoff strategies. The report evaluates brand extension options, selecting "Organic Haagen" as the new brand, and provides a comparative analysis with Luscious Organics. The conclusion summarizes the key findings and recommendations for successful market entry. The report also includes references to support the analysis.

CW2 Brand Extension report

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
METHODOLOGY..........................................................................................................................3
FINDINGS.......................................................................................................................................3
Existing Brand and Brand Values................................................................................................3
Target Market:.............................................................................................................................4
Analysis of the new Market and Trends......................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

EXECUTIVE SUMMARY
In this report, the business aspect was marketing for the company Haagen Dazs ice cream
company situated in UK has been elaborated. The methodology adopted is competitor analysis
and findings resulted in evaluation of existing brand and brand value using Kapferrers model.
The target market is evaluated to be high end consumers and external analysis of the firm is
conducted using Pestle analysis and Ansoff strategies. The extension of the existing brand was
evaluated using Tauber’s extension options and the new brand is selected to be Organic Haagen.
A competitive analysis was also conducted with Luscious organics.
INTRODUCTION
Marketing deals in the business of promoting and selling the goods which includes a
thorough market research and advertising (Deepak and Jeyakumar, 2019). The aim of the report
is to extend the Haagen Dazs ice creams which is in UK and needs to extends its services in the
European Union. This report will analyse the existing brand and brand values of the company. It
will also describe the target market where the services of the company need to be extended along
with analysing the new market and its trends and the competition there. The explanation of the
new product will be done.
METHODOLOGY
The report will be done by using the competitor analysis in order to gain the competitive
advantage from the beginning.
FINDINGS
Existing Brand and Brand Values
Brand is basically used by the companies to distinguish their product from others and this can be
the mark, logo, sentence, word or and identifying symbol. The Haagen Dazs ice creams needs
brand extension which is done when the brand of the company is used on the new product. the
main behind this is to use the already established brand equity of the company to help it in
launching a new product.
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Kapferer’s Model can be used to analyse the six elements of the brand’s identity which are as
follows (Lombard, 2018):
Physique: These determines the physical characteristics of the brand including its visual features
such as colours, packaging and the logos.
Personality: This is defined by the traits of the brand in the consumer’s eyes. For this, brands
use the particular style of tone, attitude, writing or colours.
Culture: This is the set of values which helps in setting foundation of the brand. This includes
the values and the culture of the origin country of brand.
Relationship: This defines the nature of relationship between the brand and its consumers which
includes the both abstract as well as tangible aspects which includes the specific services offered.
Self-image: Under this, the customers see themselves in the brand. Brands considers the self-
image as an advantage as they can incorporate it in their identities. It refers to the ideas of
customers of themselves.
Reflection: It refers to the ways in which brand portrays its target audience. It is considered as a
set of stereotypical attributes or beliefs of the target market of brand.
The Haagen Dazs ice creams can use the above 6 elements in order to extend its brand in the new
country.
Target Market:
Here, the target market of Haagen Dazs ice creams is the European markets of the European
Union. The segmentation will be done on the basis of demographics such as the income of the
people, life style etc. The pricing strategy of the company in UK was premium which attracted
only the high class people but in European countries, the pricing strategy will be moderate which
will attract all the market areas of low class, high class etc. (Sullivan, 2020). The positioning will
be in most of the areas of Europe as the company also markets its goods and products online.
Also, the main target market will be the health-conscious people who believes in maintaining
diet and fact.
Analysis of the new Market and Trends
PESTEL analysis
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Political: The European Union (EU) is having political union between many countries like
Austria, Belgium etc. UK has left the EU which negatively impacts and have severe implications
for the EU (Rahman, 2020).
Economic: EU is economically stable and also it has already signed agreements of free trade
with many countries. But the Euro Zone crisis has affected the number of member states.
Social: It has shared and rich cultural heritage. The citizens of EU can travel, settle or work
anywhere but only within UK. On the other hand, there can be social issues like low female
employment rate which affects the company.
Technological: The IT sector of EU falls behind the economic powerhouses such as USA and
China. This is why there is a lack of skilled workforces in the field of IT. It needs many similar
companies of its own which can be first initiated by the AI revolution.
Environmental: The country has many beautiful cities but it faced many environmental
challenges like Air & Water pollution, climate change, loss of biodiversity and many more.
Legal: EU has its own legal system which is separated from other laws. At times of conflicts, it
overrules the national law.
Ansoff’s Grid
Among the four strategies in this grid, Haagen Dazs ice creams must use
diversification as it needs to focus on entering the new market by introducing the new favours in
the products making the products completely new (Loredana, 2017).
Explanation of the new product Tauber’s brand extension options: Brand extension will help Haagen Dazs ice creams in
gaining new market shares, attracting new customers and creating uniqueness and
attractiveness in a niche market segment. As per Edward M Tauber, there are seven
approaches to extend the brand: Same product in different forms, companion product,
distinct taste, expertise, customer franchise, benefit features and ethnic image. The best
strategy for Haagen Dazs ice creams will be benefits and features in the new product. The
company can establish Organic and sugar free ice-creams for targeting the health-
conscious customers (Kalra, S., 2019)
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 Product packaging: The packaging will be done on environment friendly material and
stable cups so that ice cream stays intact.
 Choice of a brand name: Organic Haagen
 Brand positioning: The brand will be positioned towards health-conscious consumers and
its unique features of being both organic and sugar free with artificial sweetener stevia in
the premium product range extending market further to European markets.
Comparative Analysis of competition
Organic Haagen Luscious organics
The new brand by Haagen Dazs ice creams,
Organic Haagen will use high quality natural
supplies from nearby organic farms.
The product is made from farm fresh products
from Madagascan Vanilla. The quality of
organic raw materials is high.
Limited flavours will be launched initially It is a pre-existing company with many
flavours.
Sugar free ice-creams Gluten free and vegetarian ice-creams
Limited locations covered Present in many locations and delivers online
Premium pricing strategy Premium and regular prices available
Focusses on ice-creams Also sells other products like custard
Will adopt Digital marketing (Social media
influencing and SEO marketing)
Uses online marketing on Google and print
marketing
CONCLUSION
The above report focussed on the Haagen Dazs ice creams which needs to extend its services
in the European Union. Therefore, complete external analysis of the target market was done
by using various models. The brand name was changed into Organic Haagen by introducing
sugar free icecream as a new product.
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REFERENCES
Books and Journals
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Kalra, S., 2019. Antecedents of Attitude Towards Brand Extensions. IUP Journal of Brand
Management, 16(4), pp.29-44.
Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series, 2, pp.141-149.
Sullivan, C., 2020, May. Split Apart: Differentiation, Diversion, and Coordination in the Market
for Superpremium Ice Cream. In AEA Papers and Proceedings (Vol. 110, pp. 573-78).
Online
Lombard, C., 2018. The Brand Identity Prism and how it works. [ONLINE] Available through :<
https://howbrandsarebuilt.com/blog/2018/12/21/the-brand-identity-prism-and-how-it-
works/>
Rahman, M., 2020. PESTEL analysis of the EU. [ONLINE] Available through :<
https://howandwhat.net/pestel-analysis-european-union-eu/>
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