Situation Analysis

Situation Analysis

1. Environment

1. Economic conditions and trends

Economy in the North American is diverse. Some parts of North America has a modern and sophisticated economic system and the economy of some parts are still undergoing major developments in sectors like power, transportation and manufacturing. Therefore, the condition of non-synchronous economy may bring a variety of different results to the market of Pillsbury’s Haagen-Dazs from different parts of North America. The simplex marketing strategy may not suitable for some parts of North America.

Tourism is also an important part of North America's economy. Its tourism is well-developed, so it has a mass of visitors in this area. These visitors drive a certain economy for this place, therefore it is an opportunities for Haagen-Dazs to attract more customers or loyal customers.

1. Culture and social values and trends

There is a feature for North America's culture is it has multicultural history, therefore the culture in North America is varied, rich, and constantly changing. There are a great number of immigration from different places and these immigration also brought their local culture to this area when they move to there. North America absorbed lots of various cultures, so it does not have an unique and own culture. This feature of culture may bring difficulties to Haagen-Dazs to work out market strategy according to different and complicated cultures.  

1. Political and legal issues

All Countries in North America have more than one political party and even some countries have multiparty. The law of North America is also diverse and influential.  There are two important policies, the North American Free Trade Agreement (NAFTA, signed in 1994) and the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR, signed in 2004), have affected trade between countries on the continent. The most important thing is the agreements have reduced or eliminated duties and tariffs. This means tax that is charged for items purchased outside the country and charged on imports and exports is decreased. For the aspect of various political parties, Haagen-Dazs has a great challenges on coping with different political issues. For the aspect of trade agreement, it may receive benefits.  

1. Summary of environmental opportunities and threats

Due to North America’s diversity, Haagen-Dazs would have a great number of both opportunities and threats at the same time. North America is a huge market with a relatively stable economy. The trend rate of its growth is stable, therefore it would be more successful and famous if it make a good business in this area. But this area has a feature of variety, so it is a huge challenges to Haagen-Dazs to work out various market strategies to be appropriate for this kind of market. The mobility in North America brings both opportunities and threats. It may attract more customers, but it may loss a part of customers at the same time. Because it would have some fixed customers and flowing customers.

1. Implications for strategy development

For strategy development in North America, the recommendation is to be diverse that is suitable for different tastes of most parts of people. To consider the big part of people’s financial situation, they may not have a high level consumption on super premium ice cream.

1. Industry

1. Classification and definition of industry

Pillsbury’s Haagen-Dazs is an ice cream brand which holds the distinction of being one of the few commercial ice cream brands not to use stabilizers. It also produces ice cream bars, ice cream cakes, sorbet , frozen yogurt , and gelato.

1. Analysis of existing competitors

The major competitors in this industry are Nestle, International Dairy Queen, Baskin Robbins, and Ben & Jerry's in the market of North America.

The Ben&Jerry's ice cream are very recognizable with a strong visual identity. The range of its products is also very diversified and original. Its ice creams are qualitative and well tasty that are made with natural product.

For the market share, Nestlé is leader which takes up 32% in the worldwide because it regroups all segments of ice cream. The second is Haagen-Dazs which has 13% of market share. The next is Ben&Jerry's which owns 11% of the market share worldwide. The rest 45% is owned by others.

1. Analysis of potential new entrants

There are some new entries have made a big impact to Haagen-Dazs. Starbucks which is the coffee king has freezer products called Frappuccino. Another potential new entrants is Coldstone Creamery, a fast-growing business, increasing from 1 store in 1988 to about 1,000 now.

1. Analysis of substitute products

It has substitute product for this industry which is frozen yogurt, sorbet, and Smoothies. To compared with ice cream, frozen yogurt and sorbet has low fat and both of them use milk to instead of cream. Frozen yogurt is usually more tart than ice cream. It also may or may not contain live and active bacteria cultures. There might be a lower fat content in frozen yogurt because of the lack of cream, but essentially frozen yogurt is made with all of the same ingredients as its creamy rival. This means it is consuming a similar amount of calories to people at the end even when they choose frozen yogurt to instead ice cream.

1. Analysis of suppliers

Haagen Dazs ice creams are produced in the European central factory in France. After that, the merchandise is sent to North America where it would get the labeling and final packaging. Apart from ice-cream, it also offers different national products and they may come from local producer and are completely made with the local natural ingredients.

1. Analysis of buyers

Buyers who like ice cream would be a large range, but there is a part of people who focus on healthy and low fat product. And the number of people in this kind of group is increasing gradually. The customers for Haagen Dazs have to be people who are looking for pleasure and are attracted by exploring new flavors and sensations as well.

1. Summary of industry opportunities and threats

Haagen Dazs is an ice cream industry, but it has other types of products like sorbet , frozen yogurt , and gelato. It attracts more kinds of customers. However, it has some major competitors and new competiors who also provide same types of products and large range of products.    

1. Organization

1. Objectives and constraints

Häagen Dazs focused on the prestige of its products, on the sensual feelings to create a prestigious qualitative ice cream. It want to make an elegance, refinement and luxury brand image. Not only the brand image is luxury, but also the price is not low. The luxury brand image gives customers with a concept of high-end consumption and may limit to customers who do not have or do not like high consumption level. Therefore it has an idea to push out a low-cal fruit sorbet.