Häagen Daz in China

Häagen Dazs 
 Success in China – Analysis

Prof. Dr. Tomas Casas - Doing Business in China Joachim Kayser - Pre-Assignment Essec & Mannheim EMBA WE 14 - April 6 2014

"It's a lack of understanding of the legal and cultural environment that leads to most failures. The only difference between a success and failure in my experience is that people who are successful are more willing to talk and learn about how things work on the ground."

Shawn Mahoney, Managing Director EP China consulting group

Häagen Dazs at a glance

1976: opened the first Häagen-Dazs shop.

1996: The first cafe was opened in Shanghai. 1983: The brand is introduced in Hong Kong.

1920´s: Mattus started selling fruit ice and ice cream pops from a horse-drawn wagon in the Bronx in NY.

2001: The Pillsbury Company acquired by General Mills. The U.S. and Canada HD business licensed to Nestlé.

1960 & 1961: Reuben Mattus supported by his wife Rose founded Häagen-Dazs firm and year later the name was registered.

1986: HD ice cream stickbar is "Product of the Year" according to Dairy Food Magazine

2013: $930 net sales globally, more than $100 net sales and last 3 years double digit growth in China, 50 new shops planned 1997: Introduced China´s key product - moon cakes on China market.

1983: The Häagen-Dazs Company acquired by The Pillsbury Company.

Häagen Dazs reaons for success

Luxury Product Strategy

• “What Rolls Royce is to cars, and Cartier is to jewelry, Häagen-Dazs is to ice-cream” • High Price strategy • Sell indulgence of experience for luxury brand instead of ice cream

Adoption to local Chinese Market – Listen to Customers

• Chinese Management Team • Customer analysis • Chinese focused new product development • Adjust messaging to Chinese customers

Clear Target Group Marketing

• Targeting the Chines wealthy upper class • Special focus on young couples and their needs • International and Chinese celebrity endorsement

Using Face for Marketing

• The...