In order to retain its strong position in the market pricing decisions are

In order to retain its strong position in the market

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In order to retain its strong position in the market, pricing decisions are mainly influenced by internal factors. These factors include the company's marketing strategy and objectives according to which the prices are set for the products. Therefore, Haagen Dazs 8
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charges premium prices to comply with its strategies i.e. to create brand awareness in consumers’ mind as a high quality luxurious ice-cream. Also, to compare its premium ice- creams with the competitors to signify that Haagen Dazs can satisfy the sensational feelings. Further, to persuade to consumers that Haagen Dazs is the only brand that is committed to classic flavours which induces them to charge higher prices (Darcy, Emmerich, Snyder & Tsang, 2012). Haagen Dazs also set product line pricing for its various products that ranges from ice-cream bars to mini cups to satisfy the different needs in consumers (Tesco Stores (Malaysia), n.d.-b). Besides, it also carries out cost-based pricing as it sources high-quality ingredients from different countries (Häagen-Dazs, n.d.-c) which the costs are reflected in its ice-creams’ prices. Additionally, vanilla prices are increasing due to shortages (Ko, 2018) which further justifies its highly-priced ice-creams. Lastly, Häagen-Dazs also applies promotional pricing strategy to boost short-run sales. From time to time, it promotes limited-time offers like “Buy One Share One” (Appendix 9) to bring up the hype in its consumers (Malaysia Freebies, 2018a). Also, there are special event promotions like offering a 10 scoops voucher for RM 88.80 which rekindles its consumers’ demands for its ice-creams (Malaysia Freebies, 2018b) and thus, sustains it market share. 6.3 Promotion There are 5 promotional strategies that can be used to generate customer demand and to provide information to the customers. In this context, Häagen-Dazs advertises its campaigns on televisions where it often chooses celebrities such as Grigor Dimitrov, Bradley Cooper (Appendix 10) to indulge in their products along with endorsing them to run their campaign in the social medias. Häagen-Dazs’ main promotional activity is through advertisements and collaborating with iconic brands that relate to fashion, sports, etc. As baby boomers has lost relevance, the new promotions are chasing towards the millennials in chance to engage with them and build relationships (Vizard, 2017). As these advertisements are directed towards their target market who are more tech-savvy, follow ups done through Häagen-Dazs’ YouTube, Facebook, and Twitter accounts. These official accounts upload various ads and promotions to reach the digital segment and appeal to their interests which represents a direct approach to engage 9
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with consumers (Dayal, 2013). Hence, this is the most conventional way to engage with consumers. In the context of the Malaysian market, the brand has VIP membership cards where there are treats such as a free scoop in consumers’ birthday month plus 30% off the bill or a 10% off for any spending below RM50 (Appendix 11) for the purpose of making their presence in the market more wanted (Lobang Advisor, 2016). Häagen-Dazs also collaborated
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  • Spring '14
  • Pricing, Brand, ice cream, Häagen-Dazs

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