Competitive positioning of Haagen-Dazs against premium ice cream brands

Haagen Dazs

Competitor Analysis

Haagen-Dazs competes roughly against all other ice cream companies, and more narrowly against other premium ice creams. As such, it faces competition from major companies like Ben & Jerry's and Nestle, but also myriad smaller boutique producers of premium ice cream. Some of these have only regional or local distribution -- a selection of these brands can be found for example in the freezer at Whole Foods, for example. Regional distribution is common in the ice cream industry (IDFA, 2013). Ice cream is a luxury product (IDFA, 2013, 2), so therefore it is assumed that customers who can afford better ice cream would purchase it. The implication of this assumption is that Haagen-Dazs does not compete on price, nor does it compete against mainstream ice creams that occupy the lower price points.

Within the premium ice cream segment, Haagen-Dazs can be compared against its competitors along the axes of quality and availability. Quality is important because ice cream is a luxury good; availability is critical in retail because most customers will buy whatever brand is available in their local store. Quality is generally the result of a perception - the brand image that Haagen-Dazs has. Haagen-Dazs wants to be perceived as the best grocery store brand of ice cream, aiming to combine a high level of availability with strong perceptions about its quality and the innovativeness of its flavors. Haagen-Dazs has a strong market share and competitive position, so most rivals seek to different themselves away from Haagen-Dazs. A brand analysis questionnaire aiming to study brand perceptions was handed out at two stores -- Whole Foods and a mainstream grocery store -- to determine brand perceptions of the different premium ice cream brands.

Strengths & Weaknesses

The competition is generally strong with respect to differentiation. Most competitors have clearly-defined their positions in the market and their approaches to ice cream. For the most part, competition appears to be waged on the basis of this differentiation and on distribution. Over time, competitors whose products are strong enough will focus on building their distribution, especially getting into more mainstream grocery stores. At present, Haagen-Dazs competes primarily with Ben & Jerry's in the premium segment in grocery stores. The survey indicated that Nestle was not a direct competitor as previously believed. Most competitors therefore are weak in terms of their distribution, and only the guys from Vermont can compete with Haagen-Dazs in this regard.

In terms of the quality dimension, the competitors generally perform well. Most competitors are choosing to differentiate with unique flavor offerings and high quality ingredients. In this respect, few are truly differentiated away from Haagen-Dazs and as a consequence many suffer from low brand recognition, the primary weakness of most players in premium ice cream. Ben & Jerry's has high brand recognition and distribution, but is viewed unfavorably by more customers than is Haagen-Dazs. That brand's convoluted flavors are favored by many, but turn some people off. The simpler flavors of Haagen-Dazs appear to have more universal appeal. Overall, the assessment shows that Haagen-Dazs has the strongest brand in the premium ice cream segment. It is not significantly stronger, however, than Ben & Jerry's. Further, on quality Haagen-Dazs scores well, but does not distinctly outperform the perception of other brands. Many brands want to position away from Haagen-Dazs as a means of winning business from the company, but few have been able to do so consistently, except Ben & Jerry's.

Works Cited:

IDFA. (2013). Ice cream sales & trends. International Dairy Foods Association. Retrieved March 13, 2013 from http://www.idfa.org/news -- views/media-kits/ice-cream/ice-cream-sales-and-trends/

IDFA. (2013, 2). What's hot in ice cream. International Dairy Food Association. Retrieved March 13, 2013 from http://www.idfa.org/news -- views/media-kits/ice-cream/whats-hot-in-ice-cream/

No author. (2006). Breyers natural ice cream and tara gum: Unilever response. A Daily Scoop. Retrieved March 13, 2013 from http://adailyscoop.com/breyers-natural-ice-cream-and-tara-gum-unilevers-response/