According to the brand statement, they provide an ideal environment in which o experience a unique Hagen-Dads moment. Different from the U. S. Market, Hagen-Dads developed many different types of new products in oversea markets, such as ice cream sushi in China, ice cream outpatient appetizer in Japan and iceberg glazed white-chocolate holiday cake in Paris, aiming to lure customers into a mindset that Hagen-Dads is a “suppertime” product. This is also a kind of management strategy. Secondly, according to the figure, last year General Mills had revenues of $14. Billion, with 18% coming from international sales. Besides, global Hagen-Dads sales were up to 11%, almost bubble the growth rate for all General Mills international brands. So even though Hagen-Dads is only a fraction of General Mills’ overall take, it’s still a vital part of the international business, more importantly, it was the highest profit margins in the company. Hence General Mills needs to keep Hagen-Dads as its particular product, for Hagen-Dads’ huge potential in oversea market.
Thirdly, in both emerging and developed markets Hagen-Dads is a symbol of prestige, which is also the brand positioning of Hagen-Dads. To some extent, compared with General Mills’ other product groups, Hagen-Dads is the most nominative product in oversea market, which can highly improve General Mills’ fame and enhance its influence in international market; these are invisible assets of a company. In addition, core competence is the source of competitive advantage as well as the fundamental reasons why an enterprise better than competitors.
As to General Mills, Hagen-Dads has a potential to be its core competence. Basically, the business activities that the enterprise from a single field of domestic market expand to overseas markets can induce new technology, management experience in a larger context. Accumulating more knowledge of customer needs is also helps to create stronger core competitiveness. To sum up, Hagen-Dads has been using the image of a luxury brand made to impress, as a core competency for positioning. Lastly, Hagen-Dads stands out at the premium end of ice cream market.
It’s highly differentiated, beautifully positioned across markets?and with a lot of growth opportunities. With the development of globalization, consumer demand, preference and spending habits in different countries trend to be more and more similar, which makes it possible for enterprises to promote their products and services to a broader market. . The article focus on two markets in particular?France and China. Give what you know about the different cultures in these countries how might you expect the marketing and advertising for Hagen-Dads to differ between these two countries.
Firstly, according to the Hefted model of France as follows, as we can see France has high power distance, individualism and uncertainty avoidance with numbers of 68, 71, 86. Firstly, with a score of 68, France scores fairly high on Power Distance. According to their culture, children are raised to be emotionally dependent, to a degree, on their parents. This dependency will be transferred to teachers and later on to superiors. Therefore, a society in which a fair degree of inequality is accepted. Besides, power is not only centralized in companies and government, but also geographically.
Just look at the road grid in France; most highways lead to Paris. Actually, Hagen-Dads did well in choosing locations in France. In the 8th reinstatement of Pairs, the biggest Hagen-Dads shops located anywhere. In this case, Hagen-Dads may expand its retail stores in downtown areas of France, attracting more high level consumption and continuously keep its premium consisting. Besides, according to the second aspect of Hefted model, France, with a score of 71, is shown to be an individualist society. The French are self- motivated to be the best in their trade.
They, therefore, expect respect for what they do, after which they are very much willing to serve you well. Just as is mentioned in the case, sometimes you may encounter haughty servers in Champs-Ulysses shop. What’s more, French are romantic and extravagant, they emphasize on personal feelings. So what Hagen-Dads tries to convey to French is an indulgence experience because they demand indulgence. In this taxation, Hagen-Dads should cater for local value, making products luxurious and high-level, which also can be accomplished by shop decoration and product appearance.
As to advertising, maybe more French elements can be added to the advertisement. For example, shooting scene can be chose to Eiffel Tower, or promote some commemorative edition products. Last but not least, at 86, French culture scores high on Uncertainty Avoidance. The French don’t like surprises. Structure and planning are required. Besides, the French are good in developing complex technologies and systems in a stable environment, so abbey a new manufacture technology can be developed in order to improve productivity. After all, continuously technological innovation is imperative to each company.
As to China, as we can see from the Hefted model of China. At 80 in power distance, China has a high power distance society that believes inequalities among people are acceptable. In China, formal authority and sanctions influence individuals. Besides, they are in general optimistic about people’s capacity for leadership and initiative. So as for Chinese, they believe authorities and trend to trust experience. More specifically, as is mentioned in the case, packages say “made in France”, which add status, particularly for the Chinese.
Some Chinese like luxury products because they believe that luxury products bring them prestige and show their social status, personal tastes. Hence Hagen-Dads, as a prestigious brand that poses high-level position, has a huge potential in an emerging market like China. Actually, as is proved in the case, China is where every Hagen-Dads executive says the potential of the brand lies. In Chinese people’s value, products with high price sometimes show heir tastes and status, that’s also the reason why them like luxury products.
In this case, Hagen-Dads’ high price strategy does effects in China market. Besides, Hagen-Dads induced moonscapes into China market, which proved to be very successful, so maybe Hagen-Dads can develop more new products that confirm to local tastes and custom. What’s more, at a score of 20 China is a highly collectivist culture where people act in the interests of the group and not necessarily of themselves. Concerning to consumption behavior, Chinese people trend to choose products that are widely accepted and praised by others. Since
Hagen-Dads has already been widely accepted by Chinese people, they trend to classify it as a relative high-level product that purchased on special circumstance or buy them for important people. Just like Hagen-Dads’ advertisement in China, “If you love her, take her to Hagen-Dads”, which is a classic advertising slogan, attracted a lot of couples and lovers come to Hagen-Dads shops. From this side, on one hand, Hagen-Dads can put efforts on designing more attractive advertising slogan and more Chinese elements content. On the other hand, celebrity endorsement is popularized in China.
According to the second mission of the model, Chinese culture was based on collectivism and a pressure to confirm. So using celebrity endorsement may be a good marketing strategy. Lastly, localization transformation of distribution channels is necessary step for multinational corporations to enter China. Because the mature Western markets are basically contacting consumer through large supermarkets, while under the situation of the differentiate developing pace of different territories in China, especially urban and rural areas, without localization transformation, its hard for Hagen-Dads to promote and expand in China market.
So using distribution strategy in China market is important for Hagen-Dads. 3. Overall, would you recommend that General Mills adopts a global (largely standardized) approach to the marketing of Hagen-Dads internationally, or should the international marketing approach be more localized (adapted to the needs of each country). Why? In my opinion, Hagen-Dads should use more localized international approach, adapting to the needs of each country. There are 3 reasons as follows: Firstly, according to the case, Hagen-Dads shops have introduced many locals to the products and it was proved to be very successful.
For example, Hagen-Dads developed ice cream sushi in China, ice cream outpatient appetizer in Japan, and a handmade Limited Edition $65 Iceberg Glazed White-Chocolate Holiday Cake in Pairs only. In oversea market, in 81 countries, Hagen-Dads sales are up 11% for the 2011 fiscal year to date, almost double the growth rate for all General Mills international brands. Besides, moonscapes were one of the company’s biggest successes. Moonscapes are traditional gifts to friends, family and clients during the Chinese mid-autumn festival.
According to the case, no less than 28% of Hagen-Dais’s China revenue s from moonscapes. Secondly, Hagen-Dads should use more localized international approach because of the different targeted customers in different countries. In China market, Hagen-Dads was regarded as premium and “luxury’ products but in the US, Hagen-Dads is targeted on typical family-oriented market and caters to a more upscale, working class market. In France, Hagen- Dads’ market position is “indulgence”.
So Hagen-Dads really needs to make their products localized to cater different targeted groups in different countries. Thirdly, according to the theory, due to the complex nature of the international arresting environment promotes diversity in terms of physical environment, political and legal systems, cultures, product usage conditions, and economic development, standardization strategy may not be the most effective way to meet international market demands and that’s the reason why a localized global marketing strategy is needed.
