Market Analysis, Group Assignment - Team 9 Below report is covering market analysis of one of the global premium ice

cream brand Haagen Dazs and it will give the overview of its market environment, describe customers behaviour, assess the main competitors and present the strategic implication to the companys market strategy. Haagen Dazs is present in 90 countries with products like ice creams, sorberts, frozen yogurths, bars and shop specialties. There are two main target markets the company is present: - affluent, pleasure seeking adults who are generally brand conscious, innovators & trend followers - health conscious, young adults who are interested in desserts but prefer natural ingredients and low fat substitutes. PEST Analysis Political Economic regulations on labeling (ingredients) - Generally people have more money in their pockets to spend on goods such as up-market ice cream. - Crisis makes the consumers price conscious need for clever pricing strategy - Ice cream market growing especially in emerging economies potential opportunities Social people are more health conscious the industry has responded by rolling out lower-fat, lower-calorie products. a growing interest in ingredients due to people's increasing concerns about allergies, which affects all products across all quality levels. Search for following reassurances on premium ice cream packs: Cream and milk sourced from one producer/farm; Fresh ingredients; If not fresh, short-shelf life pasteurised eggs; Whole fruits, herbs and spices Technology Constant product innovations needed to come up with new tastes of products (to match market trends and stay competitive) Technology based on fresh ingredients requires perfectly working distribution network

younger generation searching for ethical and green products - going green strategies likely to be employed more regularly by ice cream manufacturers increasing demand for people to indulge out of the home need for new packaging formats and line extensions ((packages on the go, single cup, caf) SWOT Analysis Strengths strong product and image differentiation (strong global brand with attached history; good positioning) high quality products made from natural ingredients wide selection of the products appealing to different target audience (ice creams, frozen yogurth, etc); exotic tastes, new tastes introduced regularly smart distribution model selective distribution - not expanding the market until minimum critical mass opinion leaders created) strong research and marketing strategy (studies on the tastes before producing, market analysis to understand customers tastes and preferences etc) social responsibility/eco-friendly Save the Bees integrated marketing campaign synergies from Nestle global operations (distribution network, global purchases, etc) Opportunities inelastic demand for prime products new emerging markets (i.e. Russia, China, India) and segments: such as the affluent teenage segment that Weaknesses not good at differentiating on customer service (attention to how the ice cream are served) H-D brand viewed as slightly snobby and inaccessible by many consumers Not addressing well emerging segments (affluent teenagers)

Threats shrinking ice cream market in major markets (US, Western Europe) health concerns; fighting obesity makes demand for rich ice cream

would have more time to spend in cafes an who would be more easily convinced to experiment with flavours increasing interest of people in ingredients creates opportunity for high quality products (HD positioning strategy via fresh high quality ingredients) extention of cooperation for other geos between General Mills and Nestle could bring more synergies and leveraging better Nestles distribution network and marketing competences in brand management (Nestle has sales license only in US and Canada) further product premiumisation through product innovation.

market decreasing crisis, lower income - a rise in consumer price sensitivity low entry barriers many local players huge number of substitutes (cakes, chocolate) new segments emerging and new taste preferences need for constant innovation and addressing new target audience to stay competitive copying tastes by competitors (difficult to make the taste competitive advantage) rising costs of ingredients (milk, sugar, cocoas process cost went up, rising prices of vanilla from Madagascar due poor harvest, growing demand)