When asked to think of a topic for this paper I thought to myself, "Well, let me write about something that I'm really interested in- I was at a loss, the problem being that there's TOO much I'm interested in. So, I thought, "Well, what do I really like?" ICE CREAM! And who doesn't? Therefore, I chose the two companies that dominate the global premium ice cream market and was shocked to see that two companies could be so similar but so very very different: Ben & Jerry's and 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 is practice the marketing concept of keeping customers needs as a priority for the rest of the business to follow. Both companies continuously research their markets because this is exactly what got them both into the business in the first place. Their effective marketing is based on three key elements: the marketing philosophy, market segmentation and customer behavior. These companies have been .
noted to practice the consumer-driven philosophy as they rely on research to discover consumer preferences, desires and needs before production actually begins. This philosophy stresses the need for marketing research to be conducted in order to better understand where or who a market is and to develop a strategy targeted toward that group.