USA & CHINA

MARKET

Strategic Brand Management

Gabriela Repkova | Yoon Kwang Choi | Hae Jin Nam |Hyun Jin Park | Chae On Kwon

• Timeline

• USA: Häagen-Dazs

Turning Point

Name History

Brand Positioning

Nature Of Competition

Brand Slogan

Brand Logo

Packaging Design

Contents

• CHINA: Mengniu

HistoryBrand Positioning and Brand ElementsTurning Point

• USA & CHINA Summary

• CHINA: Häagen-Dazs

Chinese Ice Cream MarketMarket Entry Into ChinaBrand PositioningSuccess Factors Based on 4p’sIMC Strategy

Timeline

1920´s: Mattus started selling fruit ice and ice cream pops from a horse-drawn wagon in the Bronx in NY.

1960 & 1961: Reuben Mattus supported by his wife Rose founded Häagen-Dazs firm and year later the name was registered.

1976: opened the first Häagen-Dazs shop.

1983: The Häagen-Dazs Company acquired by The Pillsbury Company.

1983: The brand is introduced in Hong Kong.

1986: HD ice cream stickbar is "Product of the Year" according to Dairy Food Magazine

1996: The first cafe was opened in Shanghai.

1997: Introduced China´s key product - moon cakes on China market.

2001: The Pillsbury Company acquired by General Mills. The U.S. and Canada HD business licensed to Nestlé.

2013: HD operates more than 900 shops (cca 267 in U.S.) in more than 50 countries around the world

USA: Häagen-Dazs Turning Point

In July 1983,

Haagen-Dazs was sold to The Phillsbury Company. A

condition of the sale was Phillsbury’s continued

commitment to the Haagen-Dazs tradition of

maintaining the highest product quality standards. In

addition, the brand is introduced in Singapore and

Hong Kong from 1983.

Asian market became very important for HD.

By 1973,

Haagen-Dazs had expanded distribution across the entire

U.S. and its brand had become synonymous with luxurious, super-premium

ice cream. Awareness of the brand was built entirely by word of mouth and public

relations, initially unprompted and later

skillfully planned.

USA: Häagen-Dazs Name History

Jewish immigrants bring the concept of ice cream

as a luxury product in USA in 19th century.

In magazine in 1896: “Ice cream is generally regarded by families of limited means as a luxury only to be indulged in on special occasions, when company is

expected or for birthdays and high holidays.”

In 1920´s Reuben Mattus (10y) with widowed mother immigrated to USA and was helping his mother squeeze

lemons for the ices they sold in Brooklyn and then the South Bronx

On the beginning people wouldn’t

buy their ice cream:

”Why can’t we make good ice

cream so people will buy it?

He had started studying how to make ice cream

-> firing their old ice cream maker, because a new kind of ice cream

was so heavy that he had to change his equipment - he realized the importance of the perfect taste.

He followed his marketing knowledge that if you’re

doing the same like everybody else, you’re lost.

He got an idea of making up a foreign sounding name for his ice cream brand. Inspired by Jewish history because the only country which saved the Jews during World War II was Denmark he put together a totally fictitious Danish name and came up with Häagen-Dazs.Häagen-Dazs doesn’t mean anything, but he had already known that it would attract attention, especially with the umlaut.

USA: Häagen-Dazs Brand Positioning

Target market

Core Target:

- young people, middle- high class people who can afford it:

wealthy people

- 20-39 age

Large target:

- both men and women

- people who are looking for pleasure and are attracted by exporting new flavors and

sensations

- 15-59 age

USA: Häagen-Dazs Nature of Competitons

Schrafft Ice Cream

Company

• founded in the late 1880's, known as restaurant, makers of bakery products, candy and ice cream company.

• targeting middle-class families (tradition of family sweet lunches)• pint of ice cream cost only 52 cents

Ben & Jerry's

• founded in 1978 and started in an leased old gas station building in Burlington, Vermont (USA)

• began churning out all the rich & creamy, fun & chunky ice cream flavors founders always dreamed about

• flavors loaded with all their favorite chunks of fruits, nuts, candies, and cookies

• as more and more folks clamored for a taste flavor creations company started growing up

• they were market´s number 2 with market share of 36% (market leader was HD with 44% market share – 2008y)

USA: Häagen-Dazs Brand Slogan

• slogan "Made like no other" - means only with the finest ingredients and different processes to present the best ice cream

• from the beginning, Häagen-Dazs ice cream has strived to innovate and bring new frozen dessert experiences to its customers and this slogan fully support their vision

• HD usually uses its slogan for a few years and then introduces a new one but, there is one, that is used from the beginning until now worldwide:

• over the years the same brand logo in gold, black, wine and white color has been used

consistently

USA: Häagen-Dazs Brand Logo

USA: Häagen-Dazs Packaging Design

• the early packaging included a map of Denmark and mentioned Copenhagen by name, conjuring a very specific and intriguing experience for ice cream customers, despite there being no actual Scandinavian connection

CHINA: Häagen-DazsChinese Ice Cream Market

One of the most appealing aspects of this challenging market for Häagen-Dazs :

• the alignment of their super-premium brand with the apparent local hunger for luxury goods as a means to demonstrate increasing economic status

• in carving out a brand identity and image specific to China, Häagen-Dazs decided not to compete with the incumbent ice cream players in the market, but rather with the Western icons of luxury found on the high streets

CHINA: Häagen-DazsChinese Ice Cream Market

CHINA: Häagen-DazsMarket Entry Into China

• For Häagen-Dazs and its then parent company Pillsbury, the temptation to expand operations into China was inevitably great.

• Despite the historic lack of dairy products in the Chinese diet, demand was emerging from the massively growing population newly exposed to Western dairy-based foods.

• Häagen-Dazs itself had launched in nearby Hong Kong in 1983, yet venturing into the mainland introduced a completely different host of challenges.

CHINA: Häagen-Dazs Brand Positioning

2. Nature of competition• avoid the temptation to extend the value

proposition to new segments to increase volume and revenues

1. Target market• China Urban area, upper class people• millions of millionaire who are indulgent for

luxury brand and self-gratification

3. Points of parity and Difference• variety of taste(35) • special unique products (Moon Ice cake)• all products are imported from Europe, using

natural ingredients• decided to have own stand shop and logistic

channel and freezer truck ( -26°C )

CHINA: Häagen-Dazs Success Factors Based On 4p’s

1. Products

- High end full rich ice cream using natural ingredients with high quality control

- Moon ice cake and Green tea flavour reflected Chinese culture

2. Price

- 3~5 times more expensive than USA( $25/14 ounce upto $120/40ounce,

$5/14 ounce in USA)

- Only the riches can afford (Ave. Chinese salary $150/month)

3. Promotion

- Hardly issues advertisement but build up brand image by word of mouth

- In Ad, it appeals for an element of Love and Romance not for ice cream

( for young couples : to go to H-D shop means to strengthen their love)

4. Place

- Stand shop located in well known street where Louis Vuitton, Cartier shops are

- Service and environment like 5 star hotel, using Wedgwood table wares for patrons

- Not only to sell ice cream but also its memory to take ice cream in Haagen –Dazs

shop

CHINA: Häagen-DazsIMC Strategy

• it caters consumer surveys and listens to opinions suggestions

• based on the surveys, company adjusts its products to Chinese tastes (ex. ice cream Moon Cakes for the Mid Autumn Festival or Green tea flavour ice cream, it names its products)

• local management are all Chinese to communicate with Chi-nese Customer and understand Chinese cultures

• using Chinese ‘Saving Face’ to marketing:

▪ H-D Voucher

▪ Giving premium brands as gift

▪ Giver appear generous and the recipient to feel VIP

China Srategy

Brand Equity based on well acknowledged

Quality: Rolls-Royce in ice cream

They are not selling Ice cream but indulgence of experience for lux-

ury brand

CHINA: Häagen-DazsTurning Point

Autumn 1997 One year after launching

at Shanghai in China, introduced new products: Ice Cream Moon Cakes.

It became 28% of total revenue in China.

2005 Shenzhen HD makeshift shop produced ice cream without hygiene license. HD was

seriously scrutinized HD, by their illegal activities, but HD

immediately apologized, closed the kitchen and

distributed refund vouchers.

After that due to their strong brand, HD was able to rebound

again.

China: MengniuHistory

CHINA: Mengniu Brand Positioning and Brand Elements

DESIGN ELEMENTS OF LOGOShape :• the logo is like horns of the cow and the

word Mengniu in Chinese and English make it easy to be identified from other brands.

Color :• the green background means green pastures

(in China green color representing health food). However, green background limits logo to be embroidery on the fabrics.

Vision“To do the most dedicated, the most professional dairy

company”

Values “sunshine, noble, responsible, innovative”

CHINA: MengniuTurning Point

2008 Chinese Milk Scandal • high amounts of aflatoxin M1—a liver

cancer-causing agent—in a batch of China Mengniu Dairy Co. boxed milk products

• discovered the industrial chemical melamine in infant milk formula. The contaminated products resulted in the deaths of six babies, and the hospitalization of another 300,000

2006 Joint venture with Alra Food• Alra Food, the largest producer of dairy

products in Scandinavia, is jointed to produce and distribute solid milk products

• Mengniu Alra have tested positive for melamine and subsequently have been recalled and production at Mengniu Arla's milk powder factory has been temporarily suspended

2013 Joint venture with Danone• in 2006 Danone and Mengniu established a yogurt business• the joint venture failed the following year.• Mengniu fears Danone management wants to take control of

the business

☞Mistrust between Mengniu and Danone• The Chinese government wants to get foreign companies'

technology but doesn't want to sell all the assets, as the Chinese milk products market is growing.

USA & CHINA Summary

USA ChinaEat 19.8 pounds of ice cream per

capita per yearLittle dairy in traditional diet

Quality, superior ingredients Western luxury brand

Targeting upscale working class market

Targeting the Chinese upper class

Reasonably expensive 5 times the American prices

Convenience store / grocery stores: product leadership

High-end cafés: customer intimacy

“Dedicated to pleasure” “If you love her, bring her to Häagen-Dazs”

Thank You