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Häagen-Dazs

Operational Marketing

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Häagen-Dazs

Operational Marketing

Index
1. Executive Summary………………………………………………………………………..3
2. Introduction…………………………………………………………………………………...4

3. Situation Analysis……………………………………………………………………………5
3.1 Macroenviormental Analysis…………………………………………………….5
3.2 Microenviormental Analysis……………………………………………………..7
4. SWOT Analysis………………………………………………………………………………..8
5. Marketing Planning………………………………………………………………………10
6. Marketing Mix………………………………………………………………………………11
6.1 Product/Brand/Service Strategy……………………………………………..11
6.2 Distribution Strategy……………………………………………………………….12
6.3 Pricing Strategy……………………………………………………………………….12
6.4 Communication Mix…………………………………………………………….….13
7. Conclusion and Recommendations……………………………………………….15
8. Bibliography………………………………………………………………………………….16

9. Appendix………………………………………………………………………………………17

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Häagen-Dazs

Operational Marketing

1. Executive summary
Who does not like a good ice-cream? Answer yourself to that! The ice-cream sector is a very
competitive and interesting market where tradition, quality and prices make the difference
among the different producers worldwide. The ice-cream company Häagen-Dazs arrived to the
Iberian Peninsula in 1992 and since then they have being adapting themselves to the country
traditions and local lifestyle. The current economic crisis that Portugal is facing makes it very
appealing to study and propose a new marketing perspective for a well-known international
company such as Häagen-Dazs. The survival of a foreign company that is significantly young in
Portugal will depend on a complete and well-structured marketing plan. The strong preference
for national brands, the low brand-knowledge in Portugal combined with the economic crisis,
forecasts a challenging oncoming years for Häagen-Dazs in Portugal. Reason why, this work will
try to analyze the different key aspects and tasks that Häagen-Dazs will have to follow in order
to improve their market share and financial position in the Portuguese market. We will present
a more aggressive marketing plan, based on the group’s strengths and current opportunities
and focusing on reducing and eliminating our weakness and threats.
The increasing tourism, as well as the more solid implementation of the group in the recent
years positions the group in an advanced perspective respecting competitors. As a wellestablished international brand with years of experience in the ice cream market and thanks to
a complete franchising program the group will be able to implement new measures more
easily. The group’s facility to adapt to different markets due to its overall experience makes it
easy the implementation of a new marketing strategy that will position us in a more favorable
situation in Portugal. The team is consisted on well trained professionals that receive constant
training form their managers as well as from the franchisee guidelines. The values shares and
showed between our personnel makes our ice cream experience very enjoyable and different
form other brands. The current international franchisee program is a very well-known and
complete guideline that helps us to stick to the company values and business perspective.
Thanks to it, our team has a great implementation with the Portuguese society, making the
brand to be more known each day.
Throughout this work we will try to show the group a new marketing strategy for the
oncoming years that will improve the group’s position as well as brand recognition. We will
focus on every aspect that affects the current marketing scenario, trying to explain the current
situation and the changes needed in order to be more effective in the following years.

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Operational Marketing

2. Introduction
The main aim of operational marketing is to increase marketing efficiency and build a
foundation for excellent performance. Well-developed marketing plan should be adjusted to
the stage of business cycle in which the company operates.
We have chosen as our market for the project the ice-cream sector, which is quickly spreading
and developing business in the global market. We will focus on Portuguese market, because
we find it more efficient to explore local market, gather and analyze information, especially
because of the interesting and demanding economic situation in Portugal. Our aim is to
explore the society`s attitude towards consumption of non-basic products, in this case icecreams and their attitude to foreign brand like Häagen-Dazs. Being in the country gives us
much more opportunities to observe people`s behavior, do surveys and ask about current
situation.
Haagen-Dazs brand dates back to the early 1920s. The main concept for Reuben Mattus, was
to create the finest ice-cream based on passion, top quality and innovative approach.
Nowadays, Häagen-Dazs is known for its well-established position on an international scale,
spreading its activity over diverse local markets and meeting the needs of the pickiest
consumers.
Häagen-Dazs products became widely available in Portugal and Spain since 1992 Olympic
Games in Barcelona, when the brand was introduced to this particular market. In Portugal
Häagen-Dazs is now in its growth stage of business cycle.
Approach and strategy for the marketing plan include enhancing brand awareness of HäagenDazs in Portugal, which is still not as popular as its main competitors by enlarging our target
consumers group (right now the company focuses a lot on tourism consumption). We would
like to attract more local customers, therefore we have to explore national tastes and needs, in
order to improve performance of Häagen-Dazs and develop ice-cream experience among our
consumers. What is more, we should put emphasis on finding solutions for threats evolving
from micro and macro environment. The most important is pricing strategy, which is based on
creating value, for example by diversifying products and offers. Then, high prices are being put
aside. This is crucial in terms of crisis in Portugal, and decrease in consumption expenditures.

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3. Situation Analysis
3.1 Macroenvironmental Analysis
Economic:
The strong economic crisis that Portugal is facing at the moment makes our stability and sales
turnout volume to decrease due to the lower consumer purchasing power. Since our products
are slightly above the average country price, we are positioned as a middle-high class product.
However, even if the price are set above the average, due to good marketing plan consumers
still prefer it, considering a high quality ice cream. Despite of the country’s economic situation
that forces us to innovate and be more aggressive in our pricing and promotion strategy we
cannot dump our prices since we work under the group’s international code and regulations in
order to keep up with the product quality and brand name. The economic factor is going to be,
from our perspective, the most important and determining since the impact will be direct and
the duration of it is unknown.

Political:
The politics towards future investors and companies that want to start operating in Portugal
has not changed significantly. However, since the group is already well established we do not
need to be worried about the change in politics towards new international investors. Despite
of that, we need to keep updated with the countries regulations in terms of transportation,
and business taxes that will most likely change in the oncoming months due to the
restructuration of the politic approach towards the crisis. We estimate that the Political factor
will not have a big impact on us, but still, we will have to keep updated with the changes in the
business regulations.

Demographics:
The population projections of Portugal are not very optimistic. It is expected a huge decrease
in the birth rate and a major increase in the ageing groups. According to the latest national
survey done in November 2012, it shows that the total population is around 10.562.1781
people. Women constitute a slightly bigger proportion (52.3%) over man (47.7%). According to
projections for 2060, the population of Portugal is ageing. The smallest group will be children
and youth (age ranging from birth up to 19), the population above 20 to middle age will
decrease and the biggest percentage will consist of people over 55, especially elder people
above 852. This fact has to be taken into consideration since our target customers are youngmiddle age people.

1

http://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0005889&selTab=ta
b0
2

http://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_p_etarias&menuBOUI=13707095&contexto=pe
&selTab=tab4

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Figures show that the proportion of the young-middle age population segment will strongly
decrease and therefore our potential customers. Therefore we should try to start
implementing new approaches and especial promotions for the older sector of the population
in order to adapt our general approach within the years.

Cultural:
Portugal is the country in which consumption of ice-creams remains considerably stable
throughout the year, slightly dropping during winter season. The Portuguese society has strong
preferences for healthy and natural food. Avoiding, in general terms, genetically or artificially
modified food. The bases of eating are pro-ecological, basing the main meals on natural and
ecological ingredients. However, Portuguese have a preference for homemade food ad
products rather than international brands. Moreover, favorite and classic tastes are common
in traditional meals reason why our products fit perfectly due to their natural and ecological
ingredients combined into the classic preferences. One of the most important facts about the
cultural aspect is that due to the climate conditions, people prefer light and fresh food
especially during spring and summer time. This aspect fits perfect in our approach since due to
the wide variety of flavors and ingredients we can provide different options throughout the
year.

Natural:
Häagen Dazs Portugal follows the European distribution channel based in France. The ice
cream is produced in the European headquarters in France and then it gets shipped to Spain
where it gets the labeling and packaging and finally reaches Portugal. The Portuguese franchise
is in charge on obtaining the local natural goods that complement the store stock and the ice
cream experience (milk, coffee, sugar, local sweets, tea). These products are delivered by local
companies that produce them in Portugal and use the most traditional and natural ingredients
available.

Technological:
Technological factors are the most dramatic forces that affect the overall performance and
marketing strategy nowadays. Online marketing and digital media are the two more used
methods for the company. The group’s advertisement campaigns are very visual, presenting
high quality and natural products. The technological aspect is already well implemented in the
group with a solid and very strong marketing campaign through the online media as well as TV.
Therefore, the group should continue to with this approach being very aggressive in the online
marketing campaigns, making the most of the technological tools available.

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2.2 Microenvironmental Analysis
The Company:
1. Management: The Company is a franchise of the Haagen-Dazs group. The company
structure is based on a progress with fees and certain rules that people will go through in order
to open a shop. The store staff is usually made by 3 or 4 people. Like every franchising the
shop is directly related to the core company but it also has its own independency.
2. Financial Resources: Haagen-Dazs Portugal is self-sufficient in terms of profitability and
financial dependence. It does not get any financial help from its core branch and works on its
own. This is a strict policy of the group internationally; they let their franchisees on their own
trying to be profitable in each country. The main parts of the resources are used to
advertisement campaigns and product development and research.
3. Human Resources: The Company hires educated staff and they put a lot of effort using their
human resources in the best and effective way, by giving them facilities and promotions as
well as training courses.
4. Research and Development : The company is constantly innovating, trying to fulfill
consumer’s needs. The research and developing program is very strong, always pursuing the
introduction of new kind of flavors and attract a bigger segmentation of the market (e.g.: fat
free ice cream)

Suppliers:
Häagen-Dazs ice-creams are produced in the European central factory in France. After that, the
merchandise is sent by truck to Spain where it gets the labeling and final packaging. Finally the
final product ready to consumer reaches the Portuguese stores. Apart from ice-cream, the
group offers different national products such as cookies, cakes, and traditional sweets. These
products come from local bakers and are completely made with the finest and natural
ingredients.

Marketing Intermediaries:
Our products are available in the two biggest retailers in Portugal; Pingo Doce and Continente.
Throughout them, the group is having a strong percentage of total sales, especially with the
family boxes. Despite of the efficiency of these two big retailers, the group should look for new
market intermediaries in order to get into new areas and segments of the customers
environment.

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Operational Marketing

Competitors:
Among the main competitors for Haagen-Dazs, are: national brand “Santini Gelati” 3(set up by
Italian immigrant Attilio Santini in 1949), which operates in the market for more than sixty
years. It is very popular among Portuguese people. The second strongest competitor is “Ola” Portuguese, Dutch and Belgian brand under world`s biggest ice-cream manufacturer
Heartbrand. They also have a wide range of products, of different kinds but they do not focus
as much on the quality and natural products, being more directed to a more generalize public.
Other competitors are4: Ice Dreams, Fragoleto, Artisan, Ben&Jerry`s, Pingo Doce, Continente,
Icicle, Coromoto, Neveiros, Baskin-Robbins, Conchanata, Surf, A Veneziana, Merceria, Criativa,
etc.5

Publics:
“Central Brandia” is responsible for brand management of Haagen-Dazs in Portugal from
20116. It involves strategy, creative development, communication and public relations. The
brand is considered to be iconic, and apart from TV commercials and advertisements, Central
Brandia wants to focus on involving consumers through experiences. Haagen-Dazs has welldeveloped site on facebook, where they post every important event, new flavors, promotions
and discounts.

Customers:
The core customers of the target market are young people, middle- high class. Then a larger
scope would include people ranging from 15-59, both men and women. Häagen-Dazs
customers have to be people that are looking for pleasure and are attracted by exploring new
flavors and sensations as well.

5. SWOT ANALYSIS
Internal:
1. Strengths
- High quality products, with no artificial and GMO ingredients, people trust and appreciate
natural ingredients.
- Final product is sent to Portugal, reason why production process is without extra costs.

3

http://portugalconfidential.com/2010/08/santinis-gelati-frozen-gift-of-the-gods/

5

http://www1.ionline.pt/conteudo/107402-gelados-comer-no-inverno-sem-bater-o-dente
http://escape.sapo.pt/boa-mesa/escolha-escape/saiba-onde-comer-melhores-gelados-deste-verao28046
6
http://www.superindustria.com/main/modules.php?name=Spaces&file=zpagesd&id_zpace=64&id_mo
d=227&id_x=6493&mscs=392
4

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Operational Marketing

- Other products like cakes, milk, and cream are provided by Portuguese suppliers, this
attracts local consumers and tourists who want to try traditional sweets while eating their
ice-cream.
- Well-recognized brand, with strong position on the global market.
- Well-established franchising program and support for the franchisees, including tutorial
period.
- Organizational culture between managers and employers is constantly being developed.
- Currently using innovative techniques and implementing new solutions helps to create
different kinds of flavors and attract wide range of potential consumers.
- Developed marketing program; product, brand and service strategies are set up by
Portuguese company Central Brandia (using local expertise and skills is better for
managing public relations in the country)
2. Weaknesses
- Franchisee has to be self-sufficient in financial resources; it does not receive any help
from franchisor, even more it has to prove good performance.
- High prices of products, because of that the group of target customers is narrow and
specific.
- Product seasonality, sales decrease during winter period.
- Not a well-known brand in Portugal yet. Partly relies on tourist consumption.

External:
1. Opportunities
- High awareness of environmental and ecological issues and promotion of healthy life
style go together with main concept of Haagen-Dazs products
-

Portuguese climate leads to a high ice-cream consumption

-

Increasing tourism in Portugal

2. Threats
-

Due to economic crisis in Portugal, we can see decrease in consumers` expenditures,
this can affect sales in Haagen-Dazs

-

According to demographical statistics population of Portugal is ageing, our target
customers are young and middle-aged people, this may result in drop in sales

-

Recent increases of tax rates may create barriers on the market

-

Powerful competitors on the market, especially Portuguese firms with strong
traditions

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Operational Marketing

6. Marketing Planning
In order to implement a solid and aggressive marketing structure we have to divide the
different aspects and goals according to their different nature.
In terms of our quantitative objectives:
First of all, with the implementation of the new marketing plan our main objective is the
increase on sales. By a very aggressive pricing strategy combined with a new communication
view we will increase our market share and therefore our sales revenue. The increase on sales
revenue is our main goal for the oncoming years due to the critical financial situation of the
Portuguese market. As a result of the economic crisis, the market is suffering a constant
restructure process that is shifting costumer bases and loyal clientele. Therefore, an increase
in sales revenue will be the best indicator for explaining a successful and correct marketing
approach.
Secondly, we will like to increase our store network. In order to be more accessible to our
clients we will have to be closer to them. Therefore we will have to increase our Häagen-Dazs
cafes network in the following years to reach the next level in market share. Although the crisis
is affecting all the market participants, right now, with the decreasing renting and real estate
prices we could take it to the next level by investing in new cafes. This would directly position
us in a closer perspective towards our new potential customers, and therefore we will increase
our customer base.
In terms of qualitative objectives:
On one hand, since our group is based on the finest and more pure natural products that are
being manufactured in the French franchisee factory we think that in terms of product quality
there is not much to change right now compared with other aspects. On the other hand, we
think it is very important the service experience in the Häagen Dazs Cafes, therefore we should
emphasize our values and service quality in order to obtain the best feedback from costumers.
Since our brand is not still well recognized in Portugal from being a foreign brand, we have to
gain the customers loyalty by providing them the best service and experience they can ever
have in an ice-cream café. Especially for us, the service and experience factor is very important
since our products are high quality products and potential customers are looking for more than
just an ice cream. In this sense we are implementing a service strategy similar to the one
followed by Starbucks; based on high quality products but compensating it by providing the
best experience in a café. Therefore our main objective in terms of quantitative objectives
should be the improvement of the service in the cafes by providing the best ice cream
experience.

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7. Marketing Mix
7.1 Product/Brand/Service Strategy
Portuguese franchisee of Haagen-Dazs, in 2011 hired a national firm “Central Brandia”
responsible for public relations, product, brand and service strategy. The main goals are
outlined by Creative Director, Tiago Viegas:
"The world is not always watching TV (or reading magazines or listening to the radio). The
world now consumes content (in the broadest possible sense of the term), wherever they are and that makes all the difference for those who, like us, working to brand communication and
need to know where your audience is. It was on this assumption that the Media Lab's Brand
Central Brandia began working the briefing of Häagen-Dazs, which is a brand as iconic and this
for so long in all our lifes, needed surprise. In this sense, more than ads, which sought to involve
the consumer was through experiences (content or, if you prefer) integrated on and offline, on
the ground, in advertising and through PR7.”
Our main concept and focus is on retail-selling products to the final user, so called B2C
transactions. Haagen-Dazs ice-creams are being sold in Portugal in Haagen-Dazs Cafes and
retail distribution channels (the most important are Pingo Doce and Continente). As far as
product strategy is concerned, we should involve consumers in inventing new ideas. They
could actively participate in creating new flavors, for example, so that they can share their
tastes and play role in ice-cream experience. One of the main ideas is to organize a contest for
our customers, to let them make up new flavors, topping, desserts. For the winner, a special
reward will be given. What is more, we can create few flavors and desserts which will be
typical for Portuguese cuisine, to satisfy national tastes. Not only types of ice-creams and
desserts will be typical for Portugal, but also the packaging. We can focus on colors, names of
cities or important places. We can introduce loyalty cards for our customers, which will be
activated after gathering particular sum of credits. To encourage people to buying Portuguese
flavors, we will give discounts after gathering a half of that sum.
For the brand strategy, we could think about creating an image of Haagen-Dazs franchisee,
which will be the mix of associations with international worldwide company, as well as
Portuguese tradition and culture. To increase sales rates, we should invest more in advertising
and TV commercials. Our idea is to use endorsement. We can invite people well-recognized by
the Portuguese society. For the concepts of advertisements, leaflets, commercials we can
involve graduates or students from national graphic design and creative universities.
Moreover, for those who would like to be informed about special promotions and products
launched, we can send newsletters.

7

http://www.superindustria.com/main/modules.php?name=Spaces&file=zpagesd&id_zpace=64&id_mod
=227&id_x=6493&mscs=392

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The third objective to make Haagen-Dazs more attractive is to work on service strategy in
shops. Our main concern is to create a friendly and appealing atmosphere. Going to HaagenDazs cafeteria should not only be casual and ordinary activity of eating ice-creams or a fancy
dessert, but an unforgettable and pleasant experience shared with family and friends, so that
customers will come back to our place. Main focus should be on personnel, consisting of goodlooking, welcoming, amiable people, fluent in foreign languages. Staff has to be trained in
customer service skills and knowledge about the company and its products. Secondly, our
purpose is to make the Haagen-Dazs shop look esthetical and hygienic. We have to put
emphasis on interior, including colors, paintings and the most important arrangement of
furniture. There should be some space for those who prefer intimacy and those who want to
socialize. Portuguese society is strongly connected to the family. That is why, it is essential to
make customers feel like at home. It would be beneficial to prepare a menu for children, and
giving gadgets/ additional sweets for our youngest customers.

7.2 Distribution Strategy
In 1993 Haagen-Dazs opened a fabric located in France, in a city called Tilloy les Mofflaines.
Haagen-Dazs Arras Snc is responsible for manufacturing ice-cream bars, yogurt and sorbet. The
company operates the subsidiary for General Mills Inc. The setup of the factory was essential
for expanding to the European market. Arras manufacturer is responsible for supplying a
Spanish-Portuguese franchisee.
Ice-creams are produced in France, and then transported to Spain, where the main quarter of
franchisee is located. In France all the detailed instructions are settled, concerning recipes for
desserts, beverages, promotions, seasonal offers, guidelines for interior, trainings for
employees and managers. Portuguese shops are obliged to follow the rules which are
delivered to them along with fixed Haagen-Dazs ice-creams form French manufacturer.
All other products, like milk, cream, cakes, coffee, toppings, are delivered by Portuguese local
suppliers. Of course on the basis of instructions carried out in Spain. Because of difficulties in
finding information about names of local suppliers, we are not able to include them in our
project.
Distribution of Haagen-Dazs ice-creams divided into two target markets in Portugal: HaagenDazs Cafes and retail distribution channels (supermarkets, grocery stores, delicatessens,
convenience stores, etc.). Our strategy concerning distribution process is basically to maintain
it as it is now. We think that it`s effective and we`d like to focus more on other aspects of
marketing plan.

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7.3 Pricing Strategy
The Häagen-Dazs pricing strategy is value-based price. Our price strategy is based on heavily
investing in ensuring product quality. Häagen-Dazs ice-cream store uses the new high-end
approach for the general public, rising brand awareness. At the local store, our company sells
one bowl of ice cream for around 2.50€.
In other intermediaries as well, the cost of the bucket of ice cream is relatively high compare
with the brands of other competitors, for a 250 ml of ice cream the price is around 4.50€, up to
10€ for the 500 ml one.
Haagen-Dazs does not offer promotions of any kind in their local shops, but on the other
hand, costumers that buy our ice-creams that are sold by other intermediaries, can benefit of
some discounts during certain periods.
The value-based price that Haagen-Dazs uses for its selling presents some problems over the
market, mainly due to the economic crisis that it is affecting Portugal and also to a high
number of competitors that are present in the market. In order to prevent the loss of
costumers, starting from 2013 our company should apply some changes to the strategy.
On our survey, we can see that most of the people that eat ice cream are regular on their
habits. The main part of the costumers is represented by women, they usually eat ice cream in
the afternoon, and most of the people eat it just one time per month. The average amount of
money they want to spend for an ice cream is between 2 and 3 euro, they usually pick up the
same flavors, but they are willing to try new flavors every time, but just if those are offered
and not on their spontaneous intention.
The main obstacle in terms of pricing is that since Häagen-Dazs is a franchising, in order to do
promotions the franchisee has to get the approval by headquarters. If the promotions are
allowed to be done we think that the best one to keep up and increase the market share could
be the following:








Happy Hours: Being promoted in different events and shows in order to reach
different customers and increase the brand awareness.
Flavor Promotions: Make promotion on the flavors that people do not usually eat,
with discount or free sample to taste in order to build a stronger relationship with the
costumers and incrementing the market with new flavors or products.
Senior Promotion: Do to the aging population we should start offering special
discounts for the older people. Through that we can slowly adapt to the change of the
target that will affect our company in the future.
Special Combo: By promoting prepared special combos that include various icecreams, cookies, coffee and some typical sweet.
All you can eat: To enhance the relation with our customers, we can organize “all you
can eat events”, that allow customers to eat as much ice cream as they want for a
certain amount of price.

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7.4 Communication Mix
One of the reasons behind the brand's success is the company's emphasis on market research
to understand the consumers' preferences, desires, and needs. While other ice cream
manufacturers focused on children, Häagen Dazs IS among the first companies to create ice
creams for the "adult ice cream lover." This positioning served it well because adults, unlike
children, were financially independent and could make purchase decisions on their own.
Also, despite complications involving language, packaging, labeling, and import regulations, the
Haagen-Dazs brand was successfully marketed in different parts of the world largely because
of the universal appeal of its communication.
To decide how much money we will need for communication, we made a research. It includes
advertisement prices in all preferred medias of us, calculating promotions according to prices
of our products, average salary that we pay and money that we have to spend for assets.
Budged for the whole campaign will be a little bit over 2 500 000 euros annually. That includes
all the expenses for the campaign of franchisees. The message of our marketing campaign will
we the current of the company - “ Made like no other ”.

Advertising
In our advertising campaign we will use all the types of representation of the product – print,
outdoor, medias and internet. For it we will spent around 1 800 000 euros.

Sales Promotion
Every day we will have happy our where some of the tastes will be half-price. Other
promotion that we will use will be a Taste’s day. Everyday all day long one of the most popular
tastes will be on special prize. After a client makes a bill over 10 euros he will receive a coupon
of 1 euro which can be used on the next purchase. Our cost about that will be around 350 000
euros.

Public Relations
Every member of our website, Facebook or twitter page will receive a newsletter. We will
public there and press releases about happy hours and all other promotions.
The most important part of our public relation is an environment campaign “Save the bees”.
Honey bees pollinate one-third of the foods we eat, including many of the ingredients we use
to make our pure and simple ice creams, sorbets, frozen yogurts, and bars. Unfortunately,
honey bee populations are disappearing at an alarming rate. The group wants to keep the bees
buzzing and therefore we hope that our clients will support our mission. Since 2008, HaagenDazs® ice cream has partnered with leading research facilities to donate more than $700,000
to honey bee research. Annually, public relations budget will be around 100 000 euros.

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Personal Selling
We will develop a new system of making our customers happier every time they come to us.
They will have the opportunity to make their own ice cream desert by mixing whatever
ingredients they want. Other part of personal selling will be to hire a people for direct sales in
public places. They will carry the ice cream with cars or backpacks. Our budget for that will be
85 000 euros.

Direct Marketing
Specific personnel will be hired for certain promotions in order to give away fliers at the
crowed public places in the main cities. We will spend about 140.000€ on it.

Sponsorship
We decided to sponsorship one of the big fashion events in Lisbon – Fashion week. According
to the survey that we made, our target group is mainly young women and because the models
and the fashion are taking a big part in the young women’s life we decided to approach them
through fashion events. For this we will give away products on amount of 50 000 euros.

8. Conclusion and Recommendations
Häagen-Dazs franchising system is well established program, very successful in all the
countries where it is present; however it still has some aspects that can go through some
changes. The distribution system is very efficient, and for the next year we do not plan to make
major changes out of it. In terms of the advertising program, we recommend reducing 20% of
the budget for the advertising, and the use of this money in opening new H-DCafes. Another
strong point that will not go through changes is the social involvement of the company in
environmental activities, like our program “save the honey bees” that is giving a good image of
the company in the societies where we operate. Moreover, the R&D program of Häagen-Dazs
has a really strong structure and is working really hard to create new products to put into the
market, which will allow enlarging our market segmentation, increasing our costumer’s
satisfaction and our relationship with them.
In Portugal, Häagen-Dazs has to increase his position inside the local market and fight against
the well-established local companies. In order to do so, if the franchising headquarters gives
authorization, the company should start to make special promotions during the year in order
to get better known by the local people, especially for the older market segment. This will lead
to an increase of sales and will allow our company to increase the relationship with our
customers, and at the same time could lead to bigger market segmentation, due to the
involvement of different type of costumers. As well, the group should invest in opening some
more cafes in order to be closer to our target market, especially in the areas frequented by a
younger segment such as shopping malls, and city center.
In conclusion, looking more on the further future, if all this changes and recommendations will
be followed and applied, we can ensure a good position of Häagen-Dazs in the Portuguese
market and guarantee the functioning of all the local shops that are now present on the
territory.
15
Häagen-Dazs

Operational Marketing

9. Bibliography



















Instituto Ncional de Estadistica Portugal- População residente (N.º) por Local de
residência
e
Sexo;
Decenal-20
de
novembro
de
2012http://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=00
05889&selTab=tab0
Marketing&Promotion- Brandia Central conquista Häagen-Dazs-15-04-2011http://www.superindustria.com/main/modules.php?name=Spaces&file=zpagesd&id_z
pace=64&id_mod=227&id_x=6493&mscs=392
Ionline.pt- Gelados para comer no Inverno sem bater o dente-28 de Fevereiro de 2011http://www1.ionline.pt/conteudo/107402-gelados-comer-no-inverno-sem-bater-odente
Escape.sapo.pt- Saiba onde comer os melhores gelados deste Verão!- 19 Julho 2010Eshttp://escape.sapo.pt/boa-mesa/escolha-escape/saiba-onde-comer-melhoresgelados-deste-verao-28046
InvestingBusinesswekk.com-Company overview of Haagen-Dazs Arras-December 14,
2012http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=5
435823
Articles.latimes.com-Haagen-Dazs to Open First European Plant-August 01, 1991http://articles.latimes.com/1991-08-01/business/fi-397_1_haagen-dazs-european
Discoverindulgence.com-2011-Discoverpurepleasurehttp://www.discoverindulgence.com/en/Global/Discover.aspx
Management.fortune.cnn-General Mills' global sweet spot-May 16, 2011http://management.fortune.cnn.com/2011/05/16/general-mills-global-sweet-spot
HaagenDazs-History-http://www.haagendazs.com/Learn/History- downloaded on
13/11/12
Bridgewest.eu- Foreign Investments in Portugal- September 4, 2011http://www.bridgewest.eu/article/foreign-investments-portugal
Worldwide-tax.com- Portugal foreign Investments incentives- December 14th 2012http://www.worldwide-tax.com/portugal/por_invest.asp
Portugaloffer.comPORTUGUESE
FOREIGN
DIRECT
INVESTMENT-2011http://www.portugaloffer.com/about_us/portugal_investment.html
Learnmarketing.netPromotion
Strategies-2012http://www.learnmarketing.net/promotion.htm

16
Häagen-Dazs

Operational Marketing

10.Appendix
Häagen-Dazs Press Release
Haagen-Dazs in the Portuguese Market
Lisbon, Portugal – 13/12/2012 - The Haagen-Dazs franchise sets new marketing plan in order
to increase his position into the Portuguese market.
Haagen-Dazs, a well know international ice cream company present in the Portuguese market
since 1992 is developing a new marketing plan for 2013.
New promotions expected for the new year, to enhance costumers relationships and to
enlarge the market segmentation.
Company will slowly change its target market, due to the ageing of the population, it will try to
look more for the old people needs.
Haagen-Dazs is a franchising that sales high quality ice cream, it was founded in the United
States in the early 1920’s by Reuben Mattus. Now it’s a well known company that has a strong
position in the ice cream market, and it’s expanding all over the world.
###

For the information respecting the figures and numbers we have created a survey that was
posted on various social networks and we finally received 120 answers. The results we
obtained are shown in the following charts:

17
Häagen-Dazs

Operational Marketing

Also, in terms of primary information we visited the two Häagen-Dazs Cafes in Lisbon, one
in Largo de Camôes and the other in El Corte Ingles shopping center. There we personally
interview the stuff and asked them about specific details and other info we could not find
and we needed to know. We also sent two mails to the country manager’s email but with
no response.
In terms of secondary information, we found very reliable data and articles on the web (go
to bibliography). It was very helpful for us since we could not get a direct interview with
the country manager we still needed more data for the project. This explains why we did
not want to make up an overall budget since we cannot even calculate the volume that
Häagen-Dazs is doing in Portugal. However we did some research on Communication and
we could set up an average budget for that without being unrealistic.

18

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Häagen dazs pdf

  • 2. Häagen-Dazs Operational Marketing Index 1. Executive Summary………………………………………………………………………..3 2. Introduction…………………………………………………………………………………...4 3. Situation Analysis……………………………………………………………………………5 3.1 Macroenviormental Analysis…………………………………………………….5 3.2 Microenviormental Analysis……………………………………………………..7 4. SWOT Analysis………………………………………………………………………………..8 5. Marketing Planning………………………………………………………………………10 6. Marketing Mix………………………………………………………………………………11 6.1 Product/Brand/Service Strategy……………………………………………..11 6.2 Distribution Strategy……………………………………………………………….12 6.3 Pricing Strategy……………………………………………………………………….12 6.4 Communication Mix…………………………………………………………….….13 7. Conclusion and Recommendations……………………………………………….15 8. Bibliography………………………………………………………………………………….16 9. Appendix………………………………………………………………………………………17 2
  • 3. Häagen-Dazs Operational Marketing 1. Executive summary Who does not like a good ice-cream? Answer yourself to that! The ice-cream sector is a very competitive and interesting market where tradition, quality and prices make the difference among the different producers worldwide. The ice-cream company Häagen-Dazs arrived to the Iberian Peninsula in 1992 and since then they have being adapting themselves to the country traditions and local lifestyle. The current economic crisis that Portugal is facing makes it very appealing to study and propose a new marketing perspective for a well-known international company such as Häagen-Dazs. The survival of a foreign company that is significantly young in Portugal will depend on a complete and well-structured marketing plan. The strong preference for national brands, the low brand-knowledge in Portugal combined with the economic crisis, forecasts a challenging oncoming years for Häagen-Dazs in Portugal. Reason why, this work will try to analyze the different key aspects and tasks that Häagen-Dazs will have to follow in order to improve their market share and financial position in the Portuguese market. We will present a more aggressive marketing plan, based on the group’s strengths and current opportunities and focusing on reducing and eliminating our weakness and threats. The increasing tourism, as well as the more solid implementation of the group in the recent years positions the group in an advanced perspective respecting competitors. As a wellestablished international brand with years of experience in the ice cream market and thanks to a complete franchising program the group will be able to implement new measures more easily. The group’s facility to adapt to different markets due to its overall experience makes it easy the implementation of a new marketing strategy that will position us in a more favorable situation in Portugal. The team is consisted on well trained professionals that receive constant training form their managers as well as from the franchisee guidelines. The values shares and showed between our personnel makes our ice cream experience very enjoyable and different form other brands. The current international franchisee program is a very well-known and complete guideline that helps us to stick to the company values and business perspective. Thanks to it, our team has a great implementation with the Portuguese society, making the brand to be more known each day. Throughout this work we will try to show the group a new marketing strategy for the oncoming years that will improve the group’s position as well as brand recognition. We will focus on every aspect that affects the current marketing scenario, trying to explain the current situation and the changes needed in order to be more effective in the following years. 3
  • 4. Häagen-Dazs Operational Marketing 2. Introduction The main aim of operational marketing is to increase marketing efficiency and build a foundation for excellent performance. Well-developed marketing plan should be adjusted to the stage of business cycle in which the company operates. We have chosen as our market for the project the ice-cream sector, which is quickly spreading and developing business in the global market. We will focus on Portuguese market, because we find it more efficient to explore local market, gather and analyze information, especially because of the interesting and demanding economic situation in Portugal. Our aim is to explore the society`s attitude towards consumption of non-basic products, in this case icecreams and their attitude to foreign brand like Häagen-Dazs. Being in the country gives us much more opportunities to observe people`s behavior, do surveys and ask about current situation. Haagen-Dazs brand dates back to the early 1920s. The main concept for Reuben Mattus, was to create the finest ice-cream based on passion, top quality and innovative approach. Nowadays, Häagen-Dazs is known for its well-established position on an international scale, spreading its activity over diverse local markets and meeting the needs of the pickiest consumers. Häagen-Dazs products became widely available in Portugal and Spain since 1992 Olympic Games in Barcelona, when the brand was introduced to this particular market. In Portugal Häagen-Dazs is now in its growth stage of business cycle. Approach and strategy for the marketing plan include enhancing brand awareness of HäagenDazs in Portugal, which is still not as popular as its main competitors by enlarging our target consumers group (right now the company focuses a lot on tourism consumption). We would like to attract more local customers, therefore we have to explore national tastes and needs, in order to improve performance of Häagen-Dazs and develop ice-cream experience among our consumers. What is more, we should put emphasis on finding solutions for threats evolving from micro and macro environment. The most important is pricing strategy, which is based on creating value, for example by diversifying products and offers. Then, high prices are being put aside. This is crucial in terms of crisis in Portugal, and decrease in consumption expenditures. 4
  • 5. Häagen-Dazs Operational Marketing 3. Situation Analysis 3.1 Macroenvironmental Analysis Economic: The strong economic crisis that Portugal is facing at the moment makes our stability and sales turnout volume to decrease due to the lower consumer purchasing power. Since our products are slightly above the average country price, we are positioned as a middle-high class product. However, even if the price are set above the average, due to good marketing plan consumers still prefer it, considering a high quality ice cream. Despite of the country’s economic situation that forces us to innovate and be more aggressive in our pricing and promotion strategy we cannot dump our prices since we work under the group’s international code and regulations in order to keep up with the product quality and brand name. The economic factor is going to be, from our perspective, the most important and determining since the impact will be direct and the duration of it is unknown. Political: The politics towards future investors and companies that want to start operating in Portugal has not changed significantly. However, since the group is already well established we do not need to be worried about the change in politics towards new international investors. Despite of that, we need to keep updated with the countries regulations in terms of transportation, and business taxes that will most likely change in the oncoming months due to the restructuration of the politic approach towards the crisis. We estimate that the Political factor will not have a big impact on us, but still, we will have to keep updated with the changes in the business regulations. Demographics: The population projections of Portugal are not very optimistic. It is expected a huge decrease in the birth rate and a major increase in the ageing groups. According to the latest national survey done in November 2012, it shows that the total population is around 10.562.1781 people. Women constitute a slightly bigger proportion (52.3%) over man (47.7%). According to projections for 2060, the population of Portugal is ageing. The smallest group will be children and youth (age ranging from birth up to 19), the population above 20 to middle age will decrease and the biggest percentage will consist of people over 55, especially elder people above 852. This fact has to be taken into consideration since our target customers are youngmiddle age people. 1 http://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=0005889&selTab=ta b0 2 http://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_p_etarias&menuBOUI=13707095&contexto=pe &selTab=tab4 5
  • 6. Häagen-Dazs Operational Marketing Figures show that the proportion of the young-middle age population segment will strongly decrease and therefore our potential customers. Therefore we should try to start implementing new approaches and especial promotions for the older sector of the population in order to adapt our general approach within the years. Cultural: Portugal is the country in which consumption of ice-creams remains considerably stable throughout the year, slightly dropping during winter season. The Portuguese society has strong preferences for healthy and natural food. Avoiding, in general terms, genetically or artificially modified food. The bases of eating are pro-ecological, basing the main meals on natural and ecological ingredients. However, Portuguese have a preference for homemade food ad products rather than international brands. Moreover, favorite and classic tastes are common in traditional meals reason why our products fit perfectly due to their natural and ecological ingredients combined into the classic preferences. One of the most important facts about the cultural aspect is that due to the climate conditions, people prefer light and fresh food especially during spring and summer time. This aspect fits perfect in our approach since due to the wide variety of flavors and ingredients we can provide different options throughout the year. Natural: Häagen Dazs Portugal follows the European distribution channel based in France. The ice cream is produced in the European headquarters in France and then it gets shipped to Spain where it gets the labeling and packaging and finally reaches Portugal. The Portuguese franchise is in charge on obtaining the local natural goods that complement the store stock and the ice cream experience (milk, coffee, sugar, local sweets, tea). These products are delivered by local companies that produce them in Portugal and use the most traditional and natural ingredients available. Technological: Technological factors are the most dramatic forces that affect the overall performance and marketing strategy nowadays. Online marketing and digital media are the two more used methods for the company. The group’s advertisement campaigns are very visual, presenting high quality and natural products. The technological aspect is already well implemented in the group with a solid and very strong marketing campaign through the online media as well as TV. Therefore, the group should continue to with this approach being very aggressive in the online marketing campaigns, making the most of the technological tools available. 6
  • 7. Häagen-Dazs Operational Marketing 2.2 Microenvironmental Analysis The Company: 1. Management: The Company is a franchise of the Haagen-Dazs group. The company structure is based on a progress with fees and certain rules that people will go through in order to open a shop. The store staff is usually made by 3 or 4 people. Like every franchising the shop is directly related to the core company but it also has its own independency. 2. Financial Resources: Haagen-Dazs Portugal is self-sufficient in terms of profitability and financial dependence. It does not get any financial help from its core branch and works on its own. This is a strict policy of the group internationally; they let their franchisees on their own trying to be profitable in each country. The main parts of the resources are used to advertisement campaigns and product development and research. 3. Human Resources: The Company hires educated staff and they put a lot of effort using their human resources in the best and effective way, by giving them facilities and promotions as well as training courses. 4. Research and Development : The company is constantly innovating, trying to fulfill consumer’s needs. The research and developing program is very strong, always pursuing the introduction of new kind of flavors and attract a bigger segmentation of the market (e.g.: fat free ice cream) Suppliers: Häagen-Dazs ice-creams are produced in the European central factory in France. After that, the merchandise is sent by truck to Spain where it gets the labeling and final packaging. Finally the final product ready to consumer reaches the Portuguese stores. Apart from ice-cream, the group offers different national products such as cookies, cakes, and traditional sweets. These products come from local bakers and are completely made with the finest and natural ingredients. Marketing Intermediaries: Our products are available in the two biggest retailers in Portugal; Pingo Doce and Continente. Throughout them, the group is having a strong percentage of total sales, especially with the family boxes. Despite of the efficiency of these two big retailers, the group should look for new market intermediaries in order to get into new areas and segments of the customers environment. 7
  • 8. Häagen-Dazs Operational Marketing Competitors: Among the main competitors for Haagen-Dazs, are: national brand “Santini Gelati” 3(set up by Italian immigrant Attilio Santini in 1949), which operates in the market for more than sixty years. It is very popular among Portuguese people. The second strongest competitor is “Ola” Portuguese, Dutch and Belgian brand under world`s biggest ice-cream manufacturer Heartbrand. They also have a wide range of products, of different kinds but they do not focus as much on the quality and natural products, being more directed to a more generalize public. Other competitors are4: Ice Dreams, Fragoleto, Artisan, Ben&Jerry`s, Pingo Doce, Continente, Icicle, Coromoto, Neveiros, Baskin-Robbins, Conchanata, Surf, A Veneziana, Merceria, Criativa, etc.5 Publics: “Central Brandia” is responsible for brand management of Haagen-Dazs in Portugal from 20116. It involves strategy, creative development, communication and public relations. The brand is considered to be iconic, and apart from TV commercials and advertisements, Central Brandia wants to focus on involving consumers through experiences. Haagen-Dazs has welldeveloped site on facebook, where they post every important event, new flavors, promotions and discounts. Customers: The core customers of the target market are young people, middle- high class. Then a larger scope would include people ranging from 15-59, both men and women. Häagen-Dazs customers have to be people that are looking for pleasure and are attracted by exploring new flavors and sensations as well. 5. SWOT ANALYSIS Internal: 1. Strengths - High quality products, with no artificial and GMO ingredients, people trust and appreciate natural ingredients. - Final product is sent to Portugal, reason why production process is without extra costs. 3 http://portugalconfidential.com/2010/08/santinis-gelati-frozen-gift-of-the-gods/ 5 http://www1.ionline.pt/conteudo/107402-gelados-comer-no-inverno-sem-bater-o-dente http://escape.sapo.pt/boa-mesa/escolha-escape/saiba-onde-comer-melhores-gelados-deste-verao28046 6 http://www.superindustria.com/main/modules.php?name=Spaces&file=zpagesd&id_zpace=64&id_mo d=227&id_x=6493&mscs=392 4 8
  • 9. Häagen-Dazs Operational Marketing - Other products like cakes, milk, and cream are provided by Portuguese suppliers, this attracts local consumers and tourists who want to try traditional sweets while eating their ice-cream. - Well-recognized brand, with strong position on the global market. - Well-established franchising program and support for the franchisees, including tutorial period. - Organizational culture between managers and employers is constantly being developed. - Currently using innovative techniques and implementing new solutions helps to create different kinds of flavors and attract wide range of potential consumers. - Developed marketing program; product, brand and service strategies are set up by Portuguese company Central Brandia (using local expertise and skills is better for managing public relations in the country) 2. Weaknesses - Franchisee has to be self-sufficient in financial resources; it does not receive any help from franchisor, even more it has to prove good performance. - High prices of products, because of that the group of target customers is narrow and specific. - Product seasonality, sales decrease during winter period. - Not a well-known brand in Portugal yet. Partly relies on tourist consumption. External: 1. Opportunities - High awareness of environmental and ecological issues and promotion of healthy life style go together with main concept of Haagen-Dazs products - Portuguese climate leads to a high ice-cream consumption - Increasing tourism in Portugal 2. Threats - Due to economic crisis in Portugal, we can see decrease in consumers` expenditures, this can affect sales in Haagen-Dazs - According to demographical statistics population of Portugal is ageing, our target customers are young and middle-aged people, this may result in drop in sales - Recent increases of tax rates may create barriers on the market - Powerful competitors on the market, especially Portuguese firms with strong traditions 9
  • 10. Häagen-Dazs Operational Marketing 6. Marketing Planning In order to implement a solid and aggressive marketing structure we have to divide the different aspects and goals according to their different nature. In terms of our quantitative objectives: First of all, with the implementation of the new marketing plan our main objective is the increase on sales. By a very aggressive pricing strategy combined with a new communication view we will increase our market share and therefore our sales revenue. The increase on sales revenue is our main goal for the oncoming years due to the critical financial situation of the Portuguese market. As a result of the economic crisis, the market is suffering a constant restructure process that is shifting costumer bases and loyal clientele. Therefore, an increase in sales revenue will be the best indicator for explaining a successful and correct marketing approach. Secondly, we will like to increase our store network. In order to be more accessible to our clients we will have to be closer to them. Therefore we will have to increase our Häagen-Dazs cafes network in the following years to reach the next level in market share. Although the crisis is affecting all the market participants, right now, with the decreasing renting and real estate prices we could take it to the next level by investing in new cafes. This would directly position us in a closer perspective towards our new potential customers, and therefore we will increase our customer base. In terms of qualitative objectives: On one hand, since our group is based on the finest and more pure natural products that are being manufactured in the French franchisee factory we think that in terms of product quality there is not much to change right now compared with other aspects. On the other hand, we think it is very important the service experience in the Häagen Dazs Cafes, therefore we should emphasize our values and service quality in order to obtain the best feedback from costumers. Since our brand is not still well recognized in Portugal from being a foreign brand, we have to gain the customers loyalty by providing them the best service and experience they can ever have in an ice-cream café. Especially for us, the service and experience factor is very important since our products are high quality products and potential customers are looking for more than just an ice cream. In this sense we are implementing a service strategy similar to the one followed by Starbucks; based on high quality products but compensating it by providing the best experience in a café. Therefore our main objective in terms of quantitative objectives should be the improvement of the service in the cafes by providing the best ice cream experience. 10
  • 11. Häagen-Dazs Operational Marketing 7. Marketing Mix 7.1 Product/Brand/Service Strategy Portuguese franchisee of Haagen-Dazs, in 2011 hired a national firm “Central Brandia” responsible for public relations, product, brand and service strategy. The main goals are outlined by Creative Director, Tiago Viegas: "The world is not always watching TV (or reading magazines or listening to the radio). The world now consumes content (in the broadest possible sense of the term), wherever they are and that makes all the difference for those who, like us, working to brand communication and need to know where your audience is. It was on this assumption that the Media Lab's Brand Central Brandia began working the briefing of Häagen-Dazs, which is a brand as iconic and this for so long in all our lifes, needed surprise. In this sense, more than ads, which sought to involve the consumer was through experiences (content or, if you prefer) integrated on and offline, on the ground, in advertising and through PR7.” Our main concept and focus is on retail-selling products to the final user, so called B2C transactions. Haagen-Dazs ice-creams are being sold in Portugal in Haagen-Dazs Cafes and retail distribution channels (the most important are Pingo Doce and Continente). As far as product strategy is concerned, we should involve consumers in inventing new ideas. They could actively participate in creating new flavors, for example, so that they can share their tastes and play role in ice-cream experience. One of the main ideas is to organize a contest for our customers, to let them make up new flavors, topping, desserts. For the winner, a special reward will be given. What is more, we can create few flavors and desserts which will be typical for Portuguese cuisine, to satisfy national tastes. Not only types of ice-creams and desserts will be typical for Portugal, but also the packaging. We can focus on colors, names of cities or important places. We can introduce loyalty cards for our customers, which will be activated after gathering particular sum of credits. To encourage people to buying Portuguese flavors, we will give discounts after gathering a half of that sum. For the brand strategy, we could think about creating an image of Haagen-Dazs franchisee, which will be the mix of associations with international worldwide company, as well as Portuguese tradition and culture. To increase sales rates, we should invest more in advertising and TV commercials. Our idea is to use endorsement. We can invite people well-recognized by the Portuguese society. For the concepts of advertisements, leaflets, commercials we can involve graduates or students from national graphic design and creative universities. Moreover, for those who would like to be informed about special promotions and products launched, we can send newsletters. 7 http://www.superindustria.com/main/modules.php?name=Spaces&file=zpagesd&id_zpace=64&id_mod =227&id_x=6493&mscs=392 11
  • 12. Häagen-Dazs Operational Marketing The third objective to make Haagen-Dazs more attractive is to work on service strategy in shops. Our main concern is to create a friendly and appealing atmosphere. Going to HaagenDazs cafeteria should not only be casual and ordinary activity of eating ice-creams or a fancy dessert, but an unforgettable and pleasant experience shared with family and friends, so that customers will come back to our place. Main focus should be on personnel, consisting of goodlooking, welcoming, amiable people, fluent in foreign languages. Staff has to be trained in customer service skills and knowledge about the company and its products. Secondly, our purpose is to make the Haagen-Dazs shop look esthetical and hygienic. We have to put emphasis on interior, including colors, paintings and the most important arrangement of furniture. There should be some space for those who prefer intimacy and those who want to socialize. Portuguese society is strongly connected to the family. That is why, it is essential to make customers feel like at home. It would be beneficial to prepare a menu for children, and giving gadgets/ additional sweets for our youngest customers. 7.2 Distribution Strategy In 1993 Haagen-Dazs opened a fabric located in France, in a city called Tilloy les Mofflaines. Haagen-Dazs Arras Snc is responsible for manufacturing ice-cream bars, yogurt and sorbet. The company operates the subsidiary for General Mills Inc. The setup of the factory was essential for expanding to the European market. Arras manufacturer is responsible for supplying a Spanish-Portuguese franchisee. Ice-creams are produced in France, and then transported to Spain, where the main quarter of franchisee is located. In France all the detailed instructions are settled, concerning recipes for desserts, beverages, promotions, seasonal offers, guidelines for interior, trainings for employees and managers. Portuguese shops are obliged to follow the rules which are delivered to them along with fixed Haagen-Dazs ice-creams form French manufacturer. All other products, like milk, cream, cakes, coffee, toppings, are delivered by Portuguese local suppliers. Of course on the basis of instructions carried out in Spain. Because of difficulties in finding information about names of local suppliers, we are not able to include them in our project. Distribution of Haagen-Dazs ice-creams divided into two target markets in Portugal: HaagenDazs Cafes and retail distribution channels (supermarkets, grocery stores, delicatessens, convenience stores, etc.). Our strategy concerning distribution process is basically to maintain it as it is now. We think that it`s effective and we`d like to focus more on other aspects of marketing plan. 12
  • 13. Häagen-Dazs Operational Marketing 7.3 Pricing Strategy The Häagen-Dazs pricing strategy is value-based price. Our price strategy is based on heavily investing in ensuring product quality. Häagen-Dazs ice-cream store uses the new high-end approach for the general public, rising brand awareness. At the local store, our company sells one bowl of ice cream for around 2.50€. In other intermediaries as well, the cost of the bucket of ice cream is relatively high compare with the brands of other competitors, for a 250 ml of ice cream the price is around 4.50€, up to 10€ for the 500 ml one. Haagen-Dazs does not offer promotions of any kind in their local shops, but on the other hand, costumers that buy our ice-creams that are sold by other intermediaries, can benefit of some discounts during certain periods. The value-based price that Haagen-Dazs uses for its selling presents some problems over the market, mainly due to the economic crisis that it is affecting Portugal and also to a high number of competitors that are present in the market. In order to prevent the loss of costumers, starting from 2013 our company should apply some changes to the strategy. On our survey, we can see that most of the people that eat ice cream are regular on their habits. The main part of the costumers is represented by women, they usually eat ice cream in the afternoon, and most of the people eat it just one time per month. The average amount of money they want to spend for an ice cream is between 2 and 3 euro, they usually pick up the same flavors, but they are willing to try new flavors every time, but just if those are offered and not on their spontaneous intention. The main obstacle in terms of pricing is that since Häagen-Dazs is a franchising, in order to do promotions the franchisee has to get the approval by headquarters. If the promotions are allowed to be done we think that the best one to keep up and increase the market share could be the following:      Happy Hours: Being promoted in different events and shows in order to reach different customers and increase the brand awareness. Flavor Promotions: Make promotion on the flavors that people do not usually eat, with discount or free sample to taste in order to build a stronger relationship with the costumers and incrementing the market with new flavors or products. Senior Promotion: Do to the aging population we should start offering special discounts for the older people. Through that we can slowly adapt to the change of the target that will affect our company in the future. Special Combo: By promoting prepared special combos that include various icecreams, cookies, coffee and some typical sweet. All you can eat: To enhance the relation with our customers, we can organize “all you can eat events”, that allow customers to eat as much ice cream as they want for a certain amount of price. 13
  • 14. Häagen-Dazs Operational Marketing 7.4 Communication Mix One of the reasons behind the brand's success is the company's emphasis on market research to understand the consumers' preferences, desires, and needs. While other ice cream manufacturers focused on children, Häagen Dazs IS among the first companies to create ice creams for the "adult ice cream lover." This positioning served it well because adults, unlike children, were financially independent and could make purchase decisions on their own. Also, despite complications involving language, packaging, labeling, and import regulations, the Haagen-Dazs brand was successfully marketed in different parts of the world largely because of the universal appeal of its communication. To decide how much money we will need for communication, we made a research. It includes advertisement prices in all preferred medias of us, calculating promotions according to prices of our products, average salary that we pay and money that we have to spend for assets. Budged for the whole campaign will be a little bit over 2 500 000 euros annually. That includes all the expenses for the campaign of franchisees. The message of our marketing campaign will we the current of the company - “ Made like no other ”. Advertising In our advertising campaign we will use all the types of representation of the product – print, outdoor, medias and internet. For it we will spent around 1 800 000 euros. Sales Promotion Every day we will have happy our where some of the tastes will be half-price. Other promotion that we will use will be a Taste’s day. Everyday all day long one of the most popular tastes will be on special prize. After a client makes a bill over 10 euros he will receive a coupon of 1 euro which can be used on the next purchase. Our cost about that will be around 350 000 euros. Public Relations Every member of our website, Facebook or twitter page will receive a newsletter. We will public there and press releases about happy hours and all other promotions. The most important part of our public relation is an environment campaign “Save the bees”. Honey bees pollinate one-third of the foods we eat, including many of the ingredients we use to make our pure and simple ice creams, sorbets, frozen yogurts, and bars. Unfortunately, honey bee populations are disappearing at an alarming rate. The group wants to keep the bees buzzing and therefore we hope that our clients will support our mission. Since 2008, HaagenDazs® ice cream has partnered with leading research facilities to donate more than $700,000 to honey bee research. Annually, public relations budget will be around 100 000 euros. 14
  • 15. Häagen-Dazs Operational Marketing Personal Selling We will develop a new system of making our customers happier every time they come to us. They will have the opportunity to make their own ice cream desert by mixing whatever ingredients they want. Other part of personal selling will be to hire a people for direct sales in public places. They will carry the ice cream with cars or backpacks. Our budget for that will be 85 000 euros. Direct Marketing Specific personnel will be hired for certain promotions in order to give away fliers at the crowed public places in the main cities. We will spend about 140.000€ on it. Sponsorship We decided to sponsorship one of the big fashion events in Lisbon – Fashion week. According to the survey that we made, our target group is mainly young women and because the models and the fashion are taking a big part in the young women’s life we decided to approach them through fashion events. For this we will give away products on amount of 50 000 euros. 8. Conclusion and Recommendations Häagen-Dazs franchising system is well established program, very successful in all the countries where it is present; however it still has some aspects that can go through some changes. The distribution system is very efficient, and for the next year we do not plan to make major changes out of it. In terms of the advertising program, we recommend reducing 20% of the budget for the advertising, and the use of this money in opening new H-DCafes. Another strong point that will not go through changes is the social involvement of the company in environmental activities, like our program “save the honey bees” that is giving a good image of the company in the societies where we operate. Moreover, the R&D program of Häagen-Dazs has a really strong structure and is working really hard to create new products to put into the market, which will allow enlarging our market segmentation, increasing our costumer’s satisfaction and our relationship with them. In Portugal, Häagen-Dazs has to increase his position inside the local market and fight against the well-established local companies. In order to do so, if the franchising headquarters gives authorization, the company should start to make special promotions during the year in order to get better known by the local people, especially for the older market segment. This will lead to an increase of sales and will allow our company to increase the relationship with our customers, and at the same time could lead to bigger market segmentation, due to the involvement of different type of costumers. As well, the group should invest in opening some more cafes in order to be closer to our target market, especially in the areas frequented by a younger segment such as shopping malls, and city center. In conclusion, looking more on the further future, if all this changes and recommendations will be followed and applied, we can ensure a good position of Häagen-Dazs in the Portuguese market and guarantee the functioning of all the local shops that are now present on the territory. 15
  • 16. Häagen-Dazs Operational Marketing 9. Bibliography              Instituto Ncional de Estadistica Portugal- População residente (N.º) por Local de residência e Sexo; Decenal-20 de novembro de 2012http://www.ine.pt/xportal/xmain?xpid=INE&xpgid=ine_indicadores&indOcorrCod=00 05889&selTab=tab0 Marketing&Promotion- Brandia Central conquista Häagen-Dazs-15-04-2011http://www.superindustria.com/main/modules.php?name=Spaces&file=zpagesd&id_z pace=64&id_mod=227&id_x=6493&mscs=392 Ionline.pt- Gelados para comer no Inverno sem bater o dente-28 de Fevereiro de 2011http://www1.ionline.pt/conteudo/107402-gelados-comer-no-inverno-sem-bater-odente Escape.sapo.pt- Saiba onde comer os melhores gelados deste Verão!- 19 Julho 2010Eshttp://escape.sapo.pt/boa-mesa/escolha-escape/saiba-onde-comer-melhoresgelados-deste-verao-28046 InvestingBusinesswekk.com-Company overview of Haagen-Dazs Arras-December 14, 2012http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=5 435823 Articles.latimes.com-Haagen-Dazs to Open First European Plant-August 01, 1991http://articles.latimes.com/1991-08-01/business/fi-397_1_haagen-dazs-european Discoverindulgence.com-2011-Discoverpurepleasurehttp://www.discoverindulgence.com/en/Global/Discover.aspx Management.fortune.cnn-General Mills' global sweet spot-May 16, 2011http://management.fortune.cnn.com/2011/05/16/general-mills-global-sweet-spot HaagenDazs-History-http://www.haagendazs.com/Learn/History- downloaded on 13/11/12 Bridgewest.eu- Foreign Investments in Portugal- September 4, 2011http://www.bridgewest.eu/article/foreign-investments-portugal Worldwide-tax.com- Portugal foreign Investments incentives- December 14th 2012http://www.worldwide-tax.com/portugal/por_invest.asp Portugaloffer.comPORTUGUESE FOREIGN DIRECT INVESTMENT-2011http://www.portugaloffer.com/about_us/portugal_investment.html Learnmarketing.netPromotion Strategies-2012http://www.learnmarketing.net/promotion.htm 16
  • 17. Häagen-Dazs Operational Marketing 10.Appendix Häagen-Dazs Press Release Haagen-Dazs in the Portuguese Market Lisbon, Portugal – 13/12/2012 - The Haagen-Dazs franchise sets new marketing plan in order to increase his position into the Portuguese market. Haagen-Dazs, a well know international ice cream company present in the Portuguese market since 1992 is developing a new marketing plan for 2013. New promotions expected for the new year, to enhance costumers relationships and to enlarge the market segmentation. Company will slowly change its target market, due to the ageing of the population, it will try to look more for the old people needs. Haagen-Dazs is a franchising that sales high quality ice cream, it was founded in the United States in the early 1920’s by Reuben Mattus. Now it’s a well known company that has a strong position in the ice cream market, and it’s expanding all over the world. ### For the information respecting the figures and numbers we have created a survey that was posted on various social networks and we finally received 120 answers. The results we obtained are shown in the following charts: 17
  • 18. Häagen-Dazs Operational Marketing Also, in terms of primary information we visited the two Häagen-Dazs Cafes in Lisbon, one in Largo de Camôes and the other in El Corte Ingles shopping center. There we personally interview the stuff and asked them about specific details and other info we could not find and we needed to know. We also sent two mails to the country manager’s email but with no response. In terms of secondary information, we found very reliable data and articles on the web (go to bibliography). It was very helpful for us since we could not get a direct interview with the country manager we still needed more data for the project. This explains why we did not want to make up an overall budget since we cannot even calculate the volume that Häagen-Dazs is doing in Portugal. However we did some research on Communication and we could set up an average budget for that without being unrealistic. 18