1. Magnum is an ice cream brand owned by the
British/Dutch Unilever company and sold as part of
the Heart brand line of products in most countries.
PRICING STRATEGIES
Price would be perceptible to consumers as an
indicator of a product’s quality in relation to its brand, if
the consumer is not knowledgeable on the product and
its brand name (Schiffman and Kanuk 2007).
Price is an important evaluative criterion, as both
Magnum and Häagen Dazs pricing strategy is based
on the premium product pricing to attract status
conscious customers. Berends (2004) suggests that

2. the product’s prestige image and premium price is
taken into consideration as part of the value provided in
premium products pricing. Hence, Magnum and
Häagen Dazs have priced their products higher than
competitors, in order to be perceived as a premium
product. The higher price reflects the high quality of the
ice cream in comparison to competitors.
The target market would likely respond to price
reduction, as sales increases when prices are reduced.
For example, Magnum launched a 1 for 1 deal for the
Double Caramel at selected supermarkets to gain
consumer awareness of the product through greater
sales (refer to Appendix 6: POP Displays).
However, if the price reductions were too huge,
consumers may change their perceptions of the
product image, and no longer see it as a premium
product, as prices is often used as a surrogate
indicator for quality and status.