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Marketing Management

corporate strategy and environment analysis
by

Vivien GORY

on 7 September 2013

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Transcript of Marketing Management

I) PRESENTATION OF CORPORATE STRATEGY
ENVIRONMENT ANALYSIS

talk about environment
=
identify the main influences in the market

macroeconomic level:
-PESTEL analysis
micro economic level:
-Intrinsic analysis of the market
-PRESTCOM analysis
POLITICAL
SOCIAL
TECHNOLOGICAL
ENVIRONMENT
LEGAL
PESTEL ANALYSIS
ECONOMIC
government has imposed strict rules to fight against childhood obesity

=> obligation to pass the message of
prevention
=> obligation to highlight sugar and calories composition
European snacks associations replaced ice cream by fruits in child menus
French aren't huge consumers of ice cream products
=> it's worse in time s of crisis

BUT Haagen-Dazs products are necessary to cheer up people.
FIGURES:
seasonal consumption: 55% of sales in 8 weeks
fluctuation depending on the weather
sales volumes stagnant but increasing quality, so rising prices


-the made ​​in France
became a sales pitch


-Recent years, workers prefer quick meal (without preparation) and pleasure food.
A.Montebourg
high investments in R&D
importation of new flavors
eg macadamia nuts
automation of all the process line, of the supply chain
Haagen dazs lead a campaign to protect bees when it launched a new honey flavor.
located the production close to customers, in France => reduce grey energy
french production:
(European commission)

=>many hygienic and ethical constraints
=> obligation to normalize production
(audit accreditation=>identify problem)
ISO 9001
COMPETITORS ANALYSIS
Haagen Dazs has a premium positioning in the ice cream market
high quality ingredients
charming and luxurious boutiques
higher prices (+40%)
In the french market, there are 2 main competitors
Ben & Jerry's and Haagen Dazs share the premium cup ice cream market
In France, B&J has 14,7% market shares and HDazs has 71% market shares
PRODUCT: ice cream cup
PRICE: approximately the same
PLACE: supermarket/boutique
-B&J=> corners, small shops
-HDazs => huge and luxurious boutique
PROMOTION:
-B&J=>ludic, 60's inspired
-HDazs => posh, luxurious
A traditional luxurious french ice cream manufacturer from Lille.
PRODUCT: ice cream cup and frozen pastries for Dagniaux
PRICE: very expansive for Dagniaux ice cream (10€/cup)
PLACE:
- Dagniaux=> special freezer in most known supermarkets+ 1 boutique in Lille downtown
-HDazs=> huge and luxurious boutique
PROMOTION:
- Dagniaux=> receptions and weddings in Lille area
-HDazs => posh, luxurious
INDUSTRY ANALYSIS
EXTERNAL ANALYSIS: OPPORTUNITIES AND THREATS
external
internal
Strengths
Weaknesses
Opportunities
Threats
+
-
other companies implement differentiation strategies in premium sector
eg: Magnum intense

others premium ranges of product
eg: Fauchon frozen pastries
Substitutes
New entrants
low power => high costs of entry
the main threat: existing company, diversification and penetration
legal barriers=> hygiene food standards
economies of scale
access to the distribution network
Restaurants and supermarket chain put pressure on Haagen Dazs
=> lower prices and increase margins

final price is approximately unchanged
Company history
created in 1961, New York
purchased by Pillsbury in 1983
join the general mills group in 2001
today controlled by Nestlé in the US and Canada

General mills = huge food-processing group
Haagen Dazs objectives?
create a strong brand identification (brandname)
keep one step ahead of B&J
always innovating
-new flavors
-new ingredients
- new range => product development
Resources ?
Turnover: 100 millions in 2011
international plant in the north of France: 250 employees
900 shops in the world
Synergy
Market and attractiveness


1) Wealthy person
15-35 years
high purchasing power

2) Trendy person
interested by trendy products

3) Pleasure seeker (hedonist)
They search the pleasure

4) Adventurer
interested by new products

5) Adventurer
interested by new products
Segmentation: Haagen-Dazs is very interested by niche market:
Products :
Innovation : cream crisp, diversificaton of products (ice sushi, smoothie, 12% of new ice cream flavor each year etc…)
-Exotic name-New packaging : 100 or 500ml-Easily identifiable : color gold and burgundy (identification of luxe)
Moreover, in each shop you can find brownie, muffin, cookie, crepe, waffle, cupcake, cheesecake etc…
So not only ice creams !
Price :
Products are very expensive
competitors are cheaper
Distribution:
-Shop : sale on or off the premises (and it exists a loyalty card).There will be 8 new shops this year in France-Supermarket ( 55% of sales )-Parnership : restaurant (Pizza del arte etc…), trip (Air France, TGV), entertainment (cinema, opera, expensive hotels, Disneyland, Rolans Garros…)

Products are not present in hardiscount because they want to keep their premium image
Communication:
Before, communication was based on sex because
« Haagen-Dazs is as good as sex ! ».

-But now it’s more soft because they are very famous, they don’t need to chock people.
-Nowadays publicities depend on the season (winter, spring, summer, autumn)
-Furthermore they are present in a lot of big events : Roland Garros, Cannes Film Festival etc…
-Increase advertising spending by 40% this year
OPPORTUNITIES:







THREATS:
SUPPLIERS
HDazs buys ingredients all around the world
-high quality
-high prices
-few suppliers
=> suppliers have a significant power

HDazs decides to invest in its own production
eg: honey farm in the USA
The level of competitive rivalry is medium
oligopoly market (approximately same prices)
highly concentrated market
existing company launched premium segment
eg Magnum extreme
adult market segment
competitors turned to young customers
"made in France" product
world known brand
brand loyalty
long term contracts with suppliers
market close to saturation
=> a great flavors variety already marketed
treat of B&J competitor
French are not big consumers of ice cream
price more expansive than other ice creams
(+40%)
Company strategy
Position :



-Haagen-Dazs tests to be very different from its competitors

-Their products are considered as luxury products with a really better quality (vanilla of Madagascar, chocolate of Belgium, banana of Costa Rica, strawberry of Poland etc…)

-Obsession for the quality

-No coloring or additives

-Unique expertise (knowledge)
state of the market:
1990: standard and cheap ice cream, no luxurious range
2L Box and stick
=> differentiation strategy in a niche market = 3 factors
- new flavors
- new packaging
- luxurious positioning

=> market revolution
PARTNERSHIPS
many restaurants (Del Arte, bistrot Romain )
Entertainment field
Disney
cinema (Gaumont, UGC)
TGV & AirFrance
EVENTS
Roland Garros
Festival de Cannes
opening and vernissage
Figures
French ice cream market 1,6 billion divided in 70% supermarket and 30% boutiques, restaurants and glaciers
QUESTIONS ?
We'll speak about external factors that influence the environment and Haagen Dazs' strategy.

=> SWOT analysis (theoretical)
500 ml : between 5,45 and 6,15 euros
4 x 100 ml : 6,9 euros
2 cream crisp : 2,75 euros
4 sticks: 6,5 euros
Full transcript