MarketingMarketing

Group Assignment Number 3

Presented By:

Ministry of Marketing

o Babar Amin (27) Group Leader

o Mahboob Alam (45) o Ayesha Shahid (23)o Nawazish Ali (40)o Raheel Haider (31)o Richard Adnan (18)o Mudassar Islam (05)

Presented To:

Ms. Maimoona Riaz

Dated:

September 16 th 2005.

Contents:

1. Chapter Number 1 (The Field of Marketing)

1.1. Evolution of the Marketing

1.1.1. Introduction1.1.2. Different Stages1.1.3. Present Situation

1.2. Maslow’s Hierarchy of the Needs

1.3. Ethics in the Marketing

2. Chapter Number 2 (The Dynamic Marketing Environment)

2.1. External Macro Environment

2.1.1. Demographics

2.1.1.1. Age2.1.1.2. Income2.1.1.3. Education2.1.1.4. Consumption

2.1.2. Economic Conditions

2.1.3. Competitions

2.1.3.1. Brand Competition2.1.3.2. Substitute Competition2.1.3.3. Barriers of the Competition for Häagen-Dazs®

2.1.4. Political and Legal Forces

2.1.5. Technology

2.1.6. Social and Cultural Forces

2.1.7. Diagram of the External Macro Environment

2.2. External Micro Environment

2.2.1. The Market

2.2.2. Suppliers

2.2.3. Diagram of the External Micro Environment

2.3. Organizational Internal Environment

2.3.1. Financial Resources

2.3.2. Human Resources

2.3.3. Company’s Image

2.3.4. Research and Development

2.3.5. Locations

2.3.6. Production Facilities

2.3.7. Diagram of the Organizational Internal Environment

2.4. Combine Diagram of the Environment

3. Chapter Number 4 (Consumer Markets and Buying Behavior)

3.1. The Consumer Market and Its Distribution

3.1.1. Geographical Distribution

3.1.2. Consumers Demographics

3.1.2.1. Age3.1.2.2. Family Life Cycle3.1.2.3. Education3.1.2.4. Income

3.2. The consumer Buying-Decision Process

3.3. Information and Purchase Decisions

3.3.1. Social Influences

3.3.1.1. Culture3.3.1.2. Social Class3.3.1.3. Reference Groups

3.3.1.4. Families and Households

3.3.2. Psychological Influences

3.3.2.1. Motivation3.3.2.2. Perception3.3.2.3. Personality

3.3.3. Situational Influences

3.3.3.1. The Time Dimension3.3.3.2. The Surroundings3.3.3.3. Terms of the Purchase3.3.3.4. Consumers Moods and Motives

4. Chapter Number 6 (Market Segmentation, Targeting and Positioning)

4.1. Häagen-Dazs® Segmentation

4.2. Major Segmentation Variables of Häagen-Dazs®

4.2.1. Geographic

4.2.1.1. Region4.2.1.2. Density4.2.1.3. Climate

4.2.2. Demographic

4.2.2.1. Age4.2.2.2. Gender4.2.2.3. Family Life Cycle4.2.2.4. Income4.2.2.5. Occupation4.2.2.6. Education4.2.2.7. Religion4.2.2.8. Behavioral

4.2.3. Physiological

4.2.3.1. Social Class4.2.3.2. Life Cycle4.2.3.3. Personality4.2.3.4. Behavioral4.2.3.5. Purchase Occasions4.2.3.6. Benefits Sought4.2.3.7. Usage Rate4.2.3.8. Loyalty Rate4.2.3.9. Attitude towards Purchase

Chapter Number 1

The Field of Marketing

Evolution of the Market

o Introductiono Different Stageso Today Situation

Maslow’s Hierarchy of the Needs

Ethics in the Marketing

1.1) Evolution of the Market

The idea for Häagen-Dazs® dates back to the early 1920’s.

1.1.1) Introduction

A young entrepreneur named Reuben Mattus started selling ice cream with his mother in early 1920’s in New York. Till 1961 he didn’t named his product. In 1961 he named the product “Häagen-Dazs®”. Then the business started advertising and by 1973, whole of the states were familiar to Häagen-Dazs®. In 1983 Mr. Mattus and his daughter started selling it internationally. Since then new flavors and tastes are being introduced.

1.1.2) Different Stages

1.1.3) Present Situation

Today Häagen-Dazs® is the leading ice cream making company in the whole world. Its head quarter is in New York. They are offering many products like ice cream, frozen yogurt, stick bars etc…Häagen-Dazs® has also proved that old and patients can consume ice cream, by providing with Häagen-Dazs® Light which has 50% less fats.

Product Oriented Stage Sales Oriented Stage Market Oriented Stage

1920’s-to-1961 1961-to-1973 1973-to-onwards

They are promoting the new flavors and investing more capital, to get to know about the market, that’s why Häagen-Dazs® is Market Oriented.

Self-ActualizationThe people who consume Häagen-Dazs® in fact actualize their self and get regard

as dominate people in the society, because of the best quality and high

price.

Self-Esteem

Quality is priceless. This is the fact because of it the consumers really feel

the Self-Esteem.

Self-AffiliationHäagen-Dazs® creates sense of affiliation due to its attractive out look and delicious taste.

SafetyHäagen-Dazs® is a pure dairy Ice

Cream. The ingredients are pure and not injurious to health. That’s why the consumers feel themselves safe.

Basic NeedBasic Need is the Temporary Hunger or Change of Taste. As the people here are

very keen to consume the “sweet” products, they love ice creams.

1.2) Maslow’s Hierarchy of the Needs

1.3) Ethics in Marketing

Unlike the local ice cream, Häagen-Dazs® not only emphasizes on the best quality but it is promoting the new horizons ethically. Häagen-Dazs® consider the following factors.

Honesty

Häagen-Dazs® does what so ever it promises to the customers. They have natural flavor and in the half-liter pack (Pint) there is half-liter ice cream excluding the package weight, unlike the other ice-cream making companies that consider the wrapper weight as well.

Marketing to Children

Häagen-Dazs® does not advertise on children as it is unethical.

Safety

All the ingredients are natural and 100% safe for health. More over all the ingredients are Hilal.

Prices are fixed

The prices are fixed all over the world.

Chapter Number 2

The Dynamic Marketing Environment

External Macro Environmento Demographics

Age Income Education Consumption Behavior

o Economic Conditionso Competitions

Brand Competition Substitute Competition

o Political and Legal Forceso Technologyo Social and Cultural Forceso Diagram of External Micro Environment

External Micro Environmento The Marketo Supplierso Diagram of the External Micro Environment

Organizational Internal Environmento Financial Resourceso Human Resourceso Company’s Imageo Research and Developmento Locationo Production Facilitieso Diagram of the Organizational Internal Environment

Combined Diagram of the Environment

2.1) External Macro Environment

These are those forces that effect on all the industry.

2.1.1) Demographics

These are the characteristics of the population.

2.1.1.1) Age

The young people are very keen to buy that has the best quality and taste. The age range is 18-to-30.

Although ice cream is considered to be consumed by all but not by old fellows and patents, Häagen-Dazs® has proved that it can target this market as well by providing Häagen-Dazs® Light Ice-Cream (50% less Fats). The people, having age of 30 or above consume it.

How can we skip kids and teenagers? Kids and teenagers are the group of those consumers that shows great interest in its consumption.

2.1.1.2) Income

Häagen-Dazs® is targeting the market that has highest income level.

2.1.1.3) Education

The market is well aware of the product. The people, who know Häagen-Dazs®, know all the product lines as well.

2.1.1.4) Consumption Behavior

The market consumes ice cream in their birthday parties, marriage ceremony and in all the special functions of the life.

2.1.2) Economic Conditions

The economic condition of the market is very healthy due to the fact that their income level is high. The country is progressing day by day and the economy is about to boom. Although the Inflation

is high and Interest rate is low even then Häagen-Dazs® may find room in the hearts of Market.

2.1.3) Competitions

There is no direct competition for Häagen-Dazs® but indirect competition definitely exists that may be;

2.1.3.1) Brand Competition

According to the research made by Sun Foods, the brand competitors are Walls, Yummy, Rocco, Hico and local ice cream.

* All the facts and figures are obtained from Sun Foods

The market shares are given below.

WALLS ICE CREAM 43%YUMMY ICE CREAM 21%ROCCO ICE CREAM 09%HICO ICE CREAM 10%LOCAL ICE CREAMS 17%

Diagram of the market shares of the competitors

STRENGTHS & WEAKNESSES OF THE COMPETITORS

STRENGTHS WEAKNESS Locally Manufactured Big Name Behind Them Heavy Advertisement Professionals Management Strong Distribution Network Low Priced Products

Not Good Standard in terms of Quality

Not Good Packaging Not very Flexible Heavy Over Head Cost

2.1.3.2) Substitute Competition

In the substitute competition the competitors may be the producer of chocolates, snacks, Custards and the like.

2.1.3.3) Strength and weakness of Häagen-Dazs® in the competition

STRENGTHS

Premium Quality 100% Dairy Fresh & Pure Ingredients No artificial flavor & preservatives Experienced Marketing Team International Standard Cold Storage Facility Strong Distribution Network No Any Direct Competition

WEAKNESS

High Cost Late Entry in market

2.1.3.4) Barriers for Häagen-Dazs®

Price Factor Extensive Marketing Budget

2.1.4) Political and Legal Forces

Now in Pakistan the political condition is going to be stable and that’s why the foreign investments are also increasing rapidly.

In the legal frame work Häagen-Dazs® has got at least two titles

1. National Tax Registration /Sales Tax Registration 2. Membership of Chamber of Commerce.

The ice cream is shipped in cold reefer containers. After certifying the documents and paying the duties and taxes levied upon the Company the goods are released from the port for further transportation through in land transporting Companies. Before inland transportation the custom authorities inspect the packaging, the delivery method, and the expiry dates. It is verified by the concerned authorities that every product must have got a 60% remaining life on it.

2.1.5) Technology

Cold storage containersThe importation of ice cream requires the use of cold storage Reefer containers, which are available in each and every shop that contain Häagen-Dazs®.

The cold storage warehouseThe Cold Storage Warehouse are Equipped with state of the art equipment and every storage area is provided with a back up unit along with back up Generator. Upright & Chest freezers, both, are being used at the supermarkets to store and retail Häagen-Dazs® ice cream products.

The Storage areas are being set-up at the following locations: -

Karachi Islamabad Lahore

Marketing Information SystemMost of the multinational distributors use a computerized system to record the sales, however they do not have any system, which record customer data, customer liking, and their addresses. In Pakistan the marketers are using such a system that enables them to provide the home delivery without the hassle of asking the addresses again and again. This provides customers’ satisfaction and their reactions enable the marketers to respond to the market needs

2.1.6) Social and Cultural Forces

The eating pattern and habits of the Pakistani Nation is greatly influenced by “sweet”, Such as Lassie, Hallwa, etc. (Traditional Foods), which are proteins & calories enriched. Pakistan is a culturally rich country and hospitality is the core of the culture, which in turn plays an integral part in increasing the “sweet” consumption in this part of the world so Ice cream has got a great respect here.

2.1.7) Diagram of the External Macro Environmental

2.2) External Micro Environment

These are those forces that are only affecting Häagen-Dazs®.

2.2.1) The Market

The people that have the highest level of Income are the market of Häagen-Dazs®.

2.2.3) Suppliers

Sun Foods by itself import and supply the products.

2.2.4) Diagram of the External Micro Environmental

2.3) Organizational Internal Environment

This is the inside business environment and the factors are…

2.3.1) Financial Resources

The Company is self-sufficient in the financial resources and hence allocates the maximum on marketing in foreign.

2.3.2) Human Resources

The company has hired the highly educated personals and using their human resources in the best and effective way, by giving them facilities and promotions.

2.3.3) Company’s Image

The company has very good image in the world.

2.3.4) Research and Development

Häagen-Dazs® is working on the research and development programs to introduce the new product lines that meet the requirements of the market.

2.3.5) Location

It’s headquarter is in New York. The company has a great set of dealers and importers including franchises. In Pakistan the single importer is Sun Foods.

2.3.6) Production Facilities

Häagen-Dazs® has got the best ice cream making plant and machinery as they are very conscious about their product.

2.3.7) Diagram of the Organizational Internal Environment

2.4) Combined Diagram of the Environments

Chapter Number 4

Consumer Markets and Buying Behavior

The consumer market and its distribution

o Geographic Distribution

o Consumer Demographics Age Family Life Cycle Education Income

The consumer Buying-Decision Process

Information and Purchase Decision

o Social Influences Cultural Sub cultural Social Class Reference Groups Families and Household

o Psychological Influences Motivation Perception Personality Attitudes

o Situational Influences The Time Dimension The Surroundings Terms of the Purchase Consumer’s Mood and Motives

3.1) The consumer Market and its Distribution

The consumer market is distributed in the following categories.

3.1.1) Geographical Distribution

As the market is consisting of the people that have maximum income level and definitely they are living in the highly moderated urban areas of the country.

3.1.1.1) Consumers Demographics

These are the characteristics of the Consumers

3.1.2.1) Age

Häagen-Dazs® has potential to target the all age groups.

3.1.2.2) Family Life Cycle

Although Häagen-Dazs® is covering all the age groups, it is also covering maximum family life cycle, but specially targeting Bachelor stage and Young married.

3.1.2.3) Education and income

As the people have high income they are of course highly educated.

3.2) The Consumer Buying-Decision Process

CONSUMER BUYING DECISION PROCESSTo deal with the marketing environment and make purchases, consumers engage in a decision process. In order to purchase Häagen-Dazs® ice cream the consumers also go through this process.

The stages of the consumer buying decision process are:

NEED RECOGNITION First of all the need should be recognized. In case of Häagen-Dazs® ice cream need is temporary hunger.

IDENTIFICATION OF ALTERNATIVESOnce the need is recognized, the consumer must next identify the alternatives. Alternatives are Chocolates, custards, and local ice creams

EVALUATION OF ALTERNATIVESWhen alternatives have been identified, the consumer must evaluate them before making a decision. He/she may check the brands of the chocolates, the quality and prices.

DECISIONAfter evaluating the alternatives the consumer definitely decide to purchase Häagen-Dazs® ice cream because of its good quality.

POST PURCHASE BEHAVIOURAfter taking the decision to buy Häagen-Dazs® ice cream the consumer is fully satisfied because it is a good quality ice cream and also satisfies the need of the consumer.

3.3) Information and purchase decision

This the information that a customer may get from the following factors before the purchase decision. In Pakistan there are no advertisement facilities available for Häagen-Dazs® so it is dependent on the social Influences.

3.3.1) Social influences

These are the influences that can affect the purchasing decision by the humans and surroundings.

3.3.1.1) Culture

Ice creams are used as a junk food in Pakistani culture. So we can say that it is a part of our culture.

3.3.1.2) Social Class

The social classes highly affect the market of Häagen-Dazs® ice cream. So it is heavily consumed in upper class. But the demand is not high in the upper middle class. Where as social classes have so market for it.

3.3.1.3) Reference groups

Reference group is an important factor as the user of Häagen-Dazs®. The upper class influences others to use it.

3.3.1.4) Families and House Holds

The family packs are used by the families of upper class

3.3.2) Psychological influence

These are the psychological influences that influence the market decision process.

3.3.2.1) Motivation

The users are motivated to Häagen-Dazs® due to its uniqueness from others.

3.3.2.2) Perception

Market of Häagen-Dazs® is highly affected by Positive word of mouth as there is no direct competitor of it.

3.3.2.3) Personality

As the elite class consumes Häagen-Dazs® and the people may include the celebrities and influenced personalities.

3.3.3) Situational influences

These factors are those factors that are conditional and occur when the situation arise.

3.3.3.1) The time dimensions

The market of Häagen-Dazs® is affected by the time factor as people do not use much ice-cream in winter season.

3.3.3.2) The surroundings

People go far better products in better surroundings.

3.3.3.3) Terms of purchase

As it has fix prize, so the market has nothing to do with forms of purchase.

3.3.3.4) Consumer market and motives

As ice-cream is a junk food and it kill temporary hunger, so its market is greatly influenced by consumer’s moods.

Chapter Number 6

Market Segmentation, Targeting, & Positioning

Häagen-Dazs® Segmentation

Major segmentation variables of Häagen-Dazs®

o Geographic Region Density Climate

o Demographics Age Gender Family Life Cycle Income Occupation Education Religion Behavioral

o Physiological Social Class Life Cycle Personality Behavioral Purchase Occasion Benefit Sought Usage Rate Loyalty Rate Attitude towards purchase

4.1) Häagen-Dazs® Segmentation

Due to existence of diversity in Pakistani market Häagen-Dazs® introduces their product in 34 flavors.

Almond hazelnut swirl Bananas foster

Black walnut Butter pecan Caramel cone Cherry vanilla Chocolate Chocolate chip cookie dough Chocolate chocolate chip Chocolate peanut butter Coffee Cookies & cream Crème brulée Dulce de Leche Macadamia brittle Mango Mint chip Mocha almond fudge Peaches & cream Pineapple coconut Pistachio Rocky road Rum raisin Strawberry Strawberry cheesecake Triple chocolate Vanilla Vanilla bean Vanilla chocolate chip Vanilla fudge Vanilla fudge brownie Vanilla Swiss almond

Due to different buying practices, Resources & needs & wants of people, Häagen-Dazs® introduce different sizes for different segments

Half Liter Pack (Pint) = Rs 350/- Small Pack = Rs 90/-

4.2) Major Segmentation variables of Häagen-Dazs®

4.2.1) GEOGRAPHICS

4.2.1.1) Region

Karachi, Lahore, Islamabad & Multan

4.2.1.2) Density

In Urban Areas

4.2.1.3) Climate

Hot and humid

4.2.2) DEMOGRAPHICS

4.2.2.1) Age

Kids, teenagers, adults and also suitable for patients & old fellows

4.2.2.3) Family Life Cycle

Young single, young married, no children young married, youngest child under 6 & over, married with children’s or also without children, older, singles & others

4.2.2.4) Income

People have highest income level

4.2.2.5) Occupation

Doctors, Lawyers, Business Class etc

4.2.2.6) Education

The society that consumes Häagen-Dazs, is very educated

4.2.3) PSYCHOGRAPHIC

4.2.3.1) Social class

Elite class & upper middle class

4.2.3.2) Life Styles

The consumers want to dominate the others so they have adopted those life styles that influence the other. They have luxurious life style

4.2.3.3) Personality

Ambitious, Realistic & Quality Conscious

4.2.3.5) Purchase Occasion

Shopping, Outing, Hotel-ling & specially for parties

4.2.3.6) Benefit Sought

Quality, Multiple choice flavors & great taste

4.2.3.7) Usage rate

Due to the fact that there are a few shopping points where people can find Häagen-Dazs® and due to its price, the usage rate is low.

4.2.3.8) Loyalty rate

People are strongly loyal here.

4.2.3.9) Attitude towards product

People have positive Attitude to wards the product.