Category: Marketing

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Market Method:

The major factor leading to the success of Haagen-dazs in China is its marketing method. There are several things the company did:

1. choose a special position: the Haagen-dazs only open stores in the downtown area of big cities. This also make sure its brand position: fashion and luxury

2. decorate stores: Haagen-dazs company use a lot of luxurious elements to decorate its stores to attract consumers, especially young customers.

3. improve brand awareness: Haagen-dazs company spent a large amount of money to advertise products, and engage celebrities in its advertisement. What he company want to do is make people think the brand is worth that money.

In a conclusion, Haagen-dazs focus on one group of people to sell products.

Products: Why does Haagen-dazs use the strategy in other countries? The answer is simple. In other countries like USA and New Zealand, ice cream is cheap but taste well. However, in China, maybe Haagen-dazs has a much better taste than other cheap ice cream.

references: http://en.cbf.net.au/Item/2735.aspx

http://www.google.ca/imgres?q=haagen+dazs&um=1&hl=en&sa=N&biw=1366&bih=597&tbm=isch&tbnid=eFuPQ83DgKq7cM:&imgrefurl=http://sfbstech.com/8W-09/29478/Haagen%2520Dazs.html&docid=PBr5jDlsZy2a1M&imgurl=http://sfbstech.com/8W-09/29478/Haagen%252520Dazs/haagen-dazs-1.jpg&w=450&h=337&ei=0euiUJaoFOPtiQLsuoDYCw&zoom=1&iact=hc&vpx=114&vpy=168&dur=61&hovh=194&hovw=260&tx=115&ty=121&sig=100619080821770163967&page=3&tbnh=137&tbnw=168&start=46&ndsp=26&ved=1t:429,r:39,s:20,i:316

This is the prices of Haagen-dazs in different countries.

Haagen-dazs is a US ice cream brand established by Polish immigrants Reuben and Rose Mattus in 1961, after forty years development, it continues to be an ordinary ice cream brand in the US with its products being available in supermarkets and auto selling machine.

However, the US brand ice cream gained unmatched success in China. It turns into a high-end brand and stands for luxury in the world’s most populated country.

There are several aspects we can analyze: Brand Position, Marketing and Products.

Brand position: before the company entering into China, Haggen-dazs made a complete survey of mindset of consumers, especially young ones. In order to make consumers pay for its high-price ice cream, Haagen-dazs established itself as the representative luxury and fashion. Thanks to the survey, people believe that  eating Haagen-dazs is fashionable.

in the next post, I will analyze Marketing and Products.

Strategies are vital to develop a business. I have learnt another interesting business model from Claudia Pisarek’s Blog.  EcoATM is an interesting and innovative idea. The company has identified the current market of cell phones increasing and wondered the question: what happens to the old phone or mp3 players(since most smartphones currently contain one)? Obviously, this company has a unique view towards and is leading a new market.

preferences: http://en.cbf.net.au/Item/2735.aspx

http://www.ce.cn/cysc/sp/info/201211/12/t20121112_21281512.shtml

Models of pricing

cost-plus pricing: ( the cost of producing the product+profit )

Forever 21 cut down the cost by hiring cheap labor and applying cheap design. Many workers in Forever 21 stores are minimum-wage high-school workers. Meanwhile, Forever 21 moves its production to Asia to pay less to workers. Forever 21 has faced more than 50 copyright lawsuit for stealing work of designers, ranging from Anna Sui to smaller independent designers like Trovata. Forever 21 does not spend a lot of employing designers.

Customers can buy goods at a low price in Forever 21, because Forever 21 cut down its cost by applying two methods: cheap labor and cheap design.

Market-oriented pricing: ( if competitors are pricing products at a lower price, Forever 21 should should price its products at a lower price)

The main competitor of Forever 21 is H&M, they both provide affordable prices and latest styles to customers. When H&M manages to provide a lower price to customers, Forever 21 should take some measures to win customers. For instance, Forever 21 can cut down price as well, and provides some deals.

Psychological pricing: ( price designed to have a positive psychological impact ）

Forever 21 often sells its products at $29.95 or $29.99, rather than $30.

references:http://articles.businessinsider.com/2012-02-27/strategy/31103150_1_cheap-labor-child-labor-factories http://en.wikipedia.org/wiki/Pricing_strategies  http://checkwin.com/?place=forever-21

Everyone can be attracted by the giant MitcDonald’s cup which was located in the downtown Vancouver. At the time, McDonald’s was giving away free small cups of its brew for a two- week period, in an effort to attract new breakfast customers.\

Obviously, McDonald’s is good at advertising. Unlike traditional advertisement, this way can be more attractive and impressive. Meanwhile, McDonald’s can save a lot of costs because the fee is lower. However, I am not sure if this behavior need the permission of the government. Maybe, McDonald’s is expected to submit its marketing plan.

I prefer this way to advertise because customers can enjoy the advertisement. Under the overloaded information environment, in my opinion, what firms are supposed to do is not just let individuals remember their products, they should pay more attention to what kind of impressions customers may have on them, and whether customers are willing to buy their products. Another McDonald’s latest commercial called “He loves me” also brings a great fun.

This is about marketing strategies. For example, when people are attracted by the interesting advertisement of McDonald’s, they may think that it is also interesting to have meals in their restaurants. So, people can have a great impression on this restaurant and more likely to have meals there, and even trust their food easily. This is the real purpose of   advertising.

reference: http://www.ibelieveinadv.com/2009/09/mcdonalds-free-coffee-pole/