Chinese Ice Cream Case Study

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Register to read the introduction… The Chinese ice cream market.
China is a country that is changing rapidly, is emerging and taking a place in the world as a consumer society, each day there are new products, brands and companies appearing in the life of people in China (Farrell, Gersch and Stephenson). In this occasion the topic is ice cream, some years ago it was considered as a very luxurious snack but nowadays with the increasing disposable income and big economic growth of the population the consumption of ice cream has become very popular (Farrell, Gersch and Stephenson).
1.1 Ice cream in China. Ice cream is a product that has become very known and popular among Chinese consumers, everyday there is more people that likes ice cream and also there are more brands and options of ice cream to consume, In China the market is divided in four segments of ice cream: artisanal, frozen yogurt, impulse and take-home. In 2009 the segment with the biggest market share was the impulse ice cream with 70.1% of the market share, followed by the artisanal ice cream (18.1%), then the take-home ice cream (11.7%) and in the last place the frozen yogurt segment (0%) (“Ice Cream in China”). This numbers show that is more common for people in China to go to some restaurant or store to consume a scoop of ice cream rather than buying the ice cream and eating it at
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Competition.
Although there are many ice cream brands competing in the market there are only some that represent a direct competition against Haagen-Dazs, one of those is Cold Stone Creamery; in order to reach the main point of this research a comparison between these two brands will be done.
2.1 Who is the competition? Cold Stone creamery is an American company dedicated to produce and sell ice cream, it was first established in Tempe, Arizona in 1988 (The Cold Stone Creamery Story). The Cold Stone company expanded all around the United States in 1995, and then became an international company opening stores in Japan, Taiwan, South Korea, Thailand, Mexico, Qatar, Bahrain, Denmark and China (The Cold Stone Creamery Story). Although in Asia Cold Stone is not as popular as Haagen-Dazs it is still known as one of the franchises that’s growing really fast and it is considered as a competitor to
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Haagen-Dazs conquered the Chinese market by creating an image of luxury and giving status to the Chinese people that was able to consume there. Everything in Haagen-Dazs is stylish from the very well trained staff that serves the customers to the dishes used to serve the ice cream which are imported from England (“Positioning Pleasure”). The cafés are full even when the weather is cold, there is people everyday of the week but the days with more customers are the weekends. Haagen-Dazs has worked really hard to please the Chinese consumer, it has created special products for them, there are some exclusive ice cream flavors like green tea, lychee and red bean, some treats for the traditional holidays like Moon cakes and things that are closer to the Chinese culture and customs like a special ice cream creation that resembles to hot pot a Chinese traditional meal (“Haagen-Dazs in China”). The brand has also created a VIP club with more than 50,000 registered customers, this club gives special benefits to the customers, they receive newsletters with information and news of the brand and also emails with announcement and promotions. (“Positioning Pleasure”). Thanks to al this things the brand has positioned itself in the Chinese market, creating a large group of consumers and getting more on the road. Is a brand that has managed to make history in China selling not only high quality ice cream but also selling a luxurious and fashionable

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