Ben & Jerry's vs Haagen-Dazs

Each of these competitors has approximately 42% of the market, with the remaining 15% being divided up between a number of small firms that compete on either a local or national basis. What separates these two companies from their competition is how they have placed themselves in the market or how they have identified their market segmentation. They both went after a niche strategy that targets and caters to two main target markets:

- Affluent, pleasure seeking adults who are generally brand conscious, innovators & trend followers.

- Health conscious, young adults who are interested in desserts but prefer natural ingredients, and low fat substitutes.

However, the most important thing that both companies have done

These two companies also take on similar, although at the same time very different positioning which are superior flavor and texture; and their definition of quality extends much further. From the ingredients they choose to the recipes they develop, from the packaging materials they select to the care with which they deliver the ice creams, from the attention paid to each Haagen-Dazs and Ben & Jerry's retail outlet and café, to the attention with which they serve, these two brands quite obviously signify their commitment to perfection.

- Identify customer preferences by focusing energies on giving them exactly what they want – research helped Haagen-Dazs realize that the Japanese love tea and hence introduced the Green Tea flavor which was an instant success in that market. Conversely, Ben & Jerry's recognized the global interest in chocolate chip cookie dough flavors and came out with P. B. Chocolate Chip Cookie Dough.

As Ben & Jerry's target the affluent, the "affluence" is only portrayed in their prices. Most of their success in marketing came from their unique, all-natural flavors and their "people friendly" attitude towards the public, a.k.a. their customers, with their environmental activities. The press got wind of two men scooping ice cream out of a renovated gas station, followed their never-ending drive to help the world and create peace, and the rest is history. Where Haagen-Dazs thrives on luxury and indulgence Ben & Jerry's works their product from the homemade, all-natural, good for you, good for the earth strategy, and boy has it worked. The company was started in 1978 by two Long Islanders named Ben and Jerry. They moved up to Vermont with $12,000 and opened their first homemade ice cream scoop shop. That year they held their first free summer movie festival, projecting movies on the outside wall of an old gas station in Burlington, VT. They then marked their one year anniversary by holding the first-ever Free Cone Day: free scoops of Ben & Jerry's for all, all day long. This is now an annual celebration at Ben & Jerry's Scoop Shops nationwide. Finally moving out of the renovated garage they rented an old factory and then realized that through stocks & brokering they could develop a Vermont-only public stock offering to raise money for a new manufacturing facility. At this time (approximately 1984) Haagen-Dazs started to worry about their affluent, "luxurious" market and tried to limit Ben & Jerry's distribution in Boston, prompting Ben & Jerry's to file suit against the parent company, Pillsbury. This only highlighted their popularity and helped them continue their growth which started spreading throughout New England and soon after throughout all of North America. One of their most succ

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