1. Managerial Economics Case Report
財政三 趙偉如
財政三 劉于萱
財政三 曹雋盈

2. Outline Industry Introduction: Ice Cream Case Profile: Häagen-Dazs
Business Model
Business Analysis
Pricing Strategy
Marketing Strategy

3. Industry Introduction Ice Cream

4. Which store would you choose?
When it comes to
ICE CREAM…

5. Industry Introduction: Ice Cream
Market analysis：Competitors
(America's Favorite Ice Cream Chains)

6. Industry Introduction: Ice Cream
Market analysis：Competitors
(America's Favorite Ice Cream Chains)

7. Industry Introduction: Ice Cream
Market analysis：Competitors

8. Case Profile:
Häagen-Dazs

9. Case Profile
History:
the idea for the Häagen-Dazs® brand dates back to the early 1920s, NY
Reuben Mattus
in 1976, opened the first Häagen-Dazs® Shop
in 1983, sold to The Pillsbury Company
The brand name is still owned by General Mills but is licensed to Nestlé in the US and Canada.

10. Case Profile Philosophy: find the purest and finest ingredients in the
world and craft them into the best ice cream, sorbet, and frozen yogurt available.

11. Case Profile: Häagen-Dazs
Products:
Categories: ice cream, gelato, sorbet, frozen yogurt, bars, moon cake (Asia only)
Multiple flavors: 30 flavors in ice cream
Classic flavors: vanilla, chocolate, coffee, strawberry

12. Case Profile: Häagen-Dazs
Distribution channels:
Supermarkets, convenience stores and Häagen-Dazs’ shops (flagships)
distribution partnerships: restaurants, airports, entertainment
Over 700 branches(retails) in 54 countries around the world
37 chains in Taiwan

13. Case Profile: Häagen-Dazs
Package and Price:
473 ml----- NTD$320
100ml NTD$100
1 scoop---- NTD$135
Profitability:
Raises more than 14.9 billion revenue, over 1.8 billion net profit a year

14. Business Model

15. Business Model Vertical Integration
Ingredients acquisition: Farms in Madagascar (vanilla), Poland(strawberries),US, France (dairies)
Packaging: France
Processing: global
Retail channels: Chain stores(shops), convenience stores, etc.
Manufacturer & Marketer: General Mills

16. Ingredients acquisition
Business Model
Vertical Integration
Ingredients acquisition
Farms in Madagascar (vanilla), Poland(strawberries),US, France (dairies)
Packaging
France
Processing
Global
Retail channels
Chain stores(shops), convenience stores, etc.
Manufacturer & Marketer: General Mills

17. Business Model Integration economic benefit:
Quality control and assessment
Efficiency from resource arrangement
Cost-down
Distribution

18. Business Analysis

19. SWOT Analysis Opportunities Threats Weakness Strength
–Pioneer
–Strong brand recognition
–Really innovative brand
–Excellent image : brand good quality products
– International presence
Weakness
– Seasonal product
– High price (could be a strength)
– The customer base targeted too narrow
– High calorie products
Opportunities
– Development of individualism :
individual cups + others format available
– Increase of demand in exotic products
Threats
– Very competing market
for example “cold stone”
–materials price been expensive

20. STP Analysis：Segmentations
Segment Variables
Description of the variables
Demographic
Adults who have higher income 
Young , middle- high class people
Couples( flavors with romance advertising )
Social-Cultural
Big variety of flavors cover need according to each country‘s habits. 
European：preferences in alcohol drinking
Asian：preferences in teas
Psychographic
People who love luxurious brands
Need of being members of this brand

21. STP Analysis：Target Häagen-Dazs： General Ice Cream Industry：
Focus on 2 targets
1. Adults who love the luxurious ice cream flavor
2. Health conscious adults who prefer
natural ingredients and low fat substitutes
General Ice Cream Industry：
-Low price industry
-Targeting in small ages

22. STP Analysis：Position
Luxury product
Super-premium Ice cream
without either artificial colorings or additives.
Naturally aromatized ingredients (Ex :Madagascar’s vanilla)
Selected inclusions (pecans, grilled almond, cookies…)
High differentiation according to its competitors

23. STP Analysis：Position
The Brand repositioning:
Being exclusive
Being accessible to middle-class people
An individual ice cream
A sharing one

24. Comparison Price Brand position Product Position Advertising
Expensive than regular ice cream 5 to 10times
Emphasis on keeping the selection of the best quality ingredients, pure natural ingredients
Price
Top ice cream brand and establish brand image of luxury fashion
Brand position
Focus on brand and quality, the New York Times said the Haagen-Dazs ice cream in Rolls-Royce
Product Position
Do not do TV ads, only the rich visual impact of print ads.
Advertising
The main stores are selected in the core business center or high traffic locations crowd
Store position

25. Pricing Strategy

26. Cost Structure Variable Cost Material Transport Tariff Fixed Cost
Retail shops
Machinery
Utensils
Operating Cost
Wage
Rent

27. Premium Pricing Strategic Considerations Factors
Also called Skim pricing 
Keep the price of a product artificially high
In order to encourage favorable perceptions among buyers, based solely on the price.
Asymmetric Information
Market status as a Luxury good
Less elastic, Less substitutes
Strategic Considerations Factors

28. Value-based Pricing Kind of Psychological Pricing Tactics
The high price is based on invest heavily in ensuring product quality .
The higher priced products, but also the promise makes consumers believe that product quality is higher.

29. Marketing Strategy

30. Elasticity Segment Customer
Potential customer
Unusual eating ice cream
High elasticity
Regular customer
Like eating ice cream but non Exclusive brand
Medium elasticity
Loyalty customer
Exclusive brand only
Low elasticity

31. Characteristic
Dependence
Continue to introduce new products for different festivals
localization
Introduction of ice cream moon cake Mid-Autumn Festival
Customized
Customers able to collocate their own flavor and enjoy creative ice cream

32. Retail distribution
To prevent channel conflict , Haagen-Dazs ice cream sold through outlets other than franchised or licensed retail dipping shops is ordinarily confined to prepackaged pints and quarts, bars and single serving for on-premises consumption at restaurants.

33. Retail distribution
Restaurant will regard Haagen-Dazs as a high level merchandise and luxury brand as a store selling point.

34. Variable goods Ice cream Customer Elasticity Revenue Ice cream Cake
Coffee
Ice cream Fondue
Customer Elasticity
Revenue

35. VIP-Economic Benefits
1. Bonus feedback
2. 10 percent discount
3. Birthday discount
Increasing customer loyalty
Consumers elastic smaller
Discount activities increasing consumer demand

36. Thank you !