Introduction to Literature Review on Develop Launch Marketing Strategy
The present study has been made on marketing concepts and plans that can be adopted at the time of developing new products and while entering into new market place. In the study, researcher has discussed market scenario of Iranian market as Haagen Dazs Premium Ice cream has been entering into the same market place. In Spite of having many competitors, Haagen Dazs ice cream has made a plan to enter in Iran for enhancing the brand value of ice cream products that the cited has in its product line. In such respect, customer segmentation and consumer buying decision framework has been discussed in the present research report. Several models have also been applied in the research report for the purpose of assisting Haagen Dazs to manage business in Iranian market in effectual manner. After 35 years of sanction, the business entity got the opportunity to enter into Iranian market; therefore effective marketing strategy has been developed for the same.
Brand Strategy and Equity
In the present era, the recent globalization has led to increased international market activities with various foreign brands who competes with local brands in host countries. Entering into Iranian market will assist Haagen Dazs to get more customer satisfaction because consumers of Iran highly prefer to consume foreign based products. End users have different perception towards foreign products even in the same product category. Iran is one of the fastest growing developing economies in the world and there consumer prefer foreign based products because of their symbolic importance.
Impact of Brand Image
The success of foreign and local brands in the Iranian market is dependent largely on perception of consumers towards these branded products. Brand is a powerful tool that attract more consumers towards specific products and services and understanding a brand image of the company is vital in terms of retaining more customers towards the products and services. The conception of brand image combines the identification of brand image with intangible assets of the company that needs to be managed in order to use it efficiently. Iranian customers are highly emphasized towards branded products because of their purchase power and brand consciousness nature. Impact of brand image would assist Haagen Dazs to acquire more attention from the customers and this would also increase product selling opportunities. Consumers of Iran generally believe in making a satisfying purchase by choosing well-known brands.
In Iran, market image of Haagen Dazs should be well associated with quality aspects so that large pool of customers can get the products. In terms of specifying the impact of brand image, it can be said that the marketing strategies of Haagen Dazs must have enticing elements for grabbing the attention of end users. The views of Paul (2008), points out that brand equity depicts unique marketing impacts on the brand; therefore considering optimistic phase of brand equity, consumers willingly get ready to pay for more level of quantity because of attractiveness of the products. In order to increase sales and profitability, it is essential for Haagen Dazs to generate awareness among market place so that consumers can make choices accordingly. Since, Haagen Dazs is entering into new market; therefore it is essential for the business to emphasize more on needs and preferences of clients and this will assist in maximizing sales potential.
Segmentation is the criteria where in Haagen Dazs can segment Iranian market on the basis of geographic, demographic and psychographic criteria. Haagen Dazs has adopted many levels of segmentation where in customers are selected on the basis of their preferences and needs. Hence, Haagen Dazs can segment customers on the basis of mass marketing in which the business needs to engage the mass production, mass distribution and mass promotion of one product for all available consumers (White, 2009). However, on the other hand, demographic segmentation criteria can also be adopted in which age, life stage, income and generation dimensions should be considered.
Since Haagen Dazs has wide range of ice cream products; therefore it is essential for the entity to consider age and life cycle stage. Needs and abilities of consumers change as per the age through the years. People prefer to have products made through Ice cream; hence as per their taste, Haagen Dazs can segment the products for customers. Old people, youngsters and kids are the major categories on the basis of which Haagen Dazs can enter into Iranian market place. Demand for ice cream changes due to taste and preferences; however Haagen Dazs is a renowned brand which has variety of products with quality aspects. Therefore, the brand has the potential to survive in Iranian market.
Hence, in the present case, Haagen Dazs can segment the market on the basis of those customers who prefer to have ice cream products. Kids, youngsters and old people can be targeted for the same as that will assist Haagen Dazs to sell more products in Iranian market. People in Iran especially prefer to have food from restaurants and hotels; therefore Haagen Dazs has the opportunity to sell more ice cream products to such places. Customers usually come at these places; hence Haagen Dazs can make collaboration with such places (Wilkinson and et.al, 2007). At the same time, Haagen Dazs needs to emphasize more on promotional strategies so that large number of customers can be enticed towards the existing products and services. Similarly, the business needs to highly consider market scenario of Iran so that market strategies can be developed accordingly.
Consumer Buying Decision Framework
Consumer buying behavior is influenced by a number of dimensions such as brand awareness, brand loyalty, quality aspects and brand association. The frequency of repeat purchase can be enhanced in the particular case thorough emphasizing on customer satisfaction and beneficial aspects. Consumers of Iran are highly associated with purchase of branded products; hence the opportunities of growth are higher in Iranian market place. From theoretical point of view, Kayworth and Leidner (2008), has investigated the relationship between consumer buying behavior and customer satisfaction. Regarding this, consumer buying behavior can bridge between brand equity and customer satisfaction. Haagen Dazs needs to consider the needs of clients and according to that, wide range of products should be brought at market place.
Market Entry Strategy Modes
Every business needs to adopt suitable market entry modes while entering into new areas and market places; therefore Haagen Dazs also needs to adopt feasible marketing strategy so as to launch the products in Iranian market. In the below section, several market entry strategies are mentioned that could assist Haagen Dazs to enter in Iranian market suitably. Market entry strategies are highly risk oriented and it also changes the scenario of business; hence on the basis of feasibility, suitable strategy should be adopted.
Looking at the current level of Haagen Dazs it will be easy for the firm to enter into Iranian market after getting the sanction from the government. However, offering wide range of quality of ice-creams owners main focus is to satisfy the needs and wants of customers with high standards. In order to enter into the market, top level management of Haagen Dazs is recommended to use market and product development strategy. By the means of these strategies company can easily enter into the Iranian market. However, at the initial stage management of Haagen Dazs should offer existing range of products so that customers can be attracted. While establishing business in the market, research can be conducted to evaluate and identify the taste and preferences of the individual so that ice-cream flavors can be introduced so that people can be easily attracted. Along with this, penetrating pricing strategy can be used at the initial level so that competitive edge can be achieved to sustain for long term period.
Transaction Cost Analysis
Transaction Cost Analysis is a business model that considers channel members, production cost and governance. It is also considered a method of determining the effectiveness of a company's portfolio transaction; hence the model will assist Haagen Dazs to analyze portfolio transactions and financial capacity as well. TCA helps in analyzing two possible prices for a product. The model is also useful in terms if ascertaining trade prices and along with this, it also analyzes favorable prices. Through this method, investors, managers and brokers will be able to analyze if the transactions are taking place according to the trading procedures. Further, this also aids in ascertaining if the managers of Haagen Dazs are trading effectively.
However, on the other hand, the main challenge of TCA is to determine if the trade price is high or low in the given market condition at the time when the order is processed. Under this, trade prices are commonly compared to benchmark prices. However, it can be said that Transaction Cost Analysis will assist Haagen Dazs to consider the opportunity costs that are associated with trades. Nonetheless, failure to trade could be prejudicial to portfolio management if the trade turned out to be very much profitable for the business entity (Kotler, 2006).
The OLI model (The ownership, location, and internationalization)
The OLI model was introduced with the purpose to identify the factors that influences both the initial act and growth of foreign production. The model also emphasizes on foreign direct investment and how it aids the entities to remain at market place through new business practices. The concept of ownership advantage is developed to explain international production which enhances the scope of operating business in diverse countries (Peter, 2005). The OLI model is based on three major dimensions such as ownership advantages, location advantages and internalization advantages. All the terms specifies advantages derived from internationalization processes and along with that, it also emphasizes on risks that are concerned with new market entry. OLI model aids in explaining entry mode decision and the basic ideas were also supported by several empirical studies. It intends to explore all important all important factors that impacts entry mode decisions; but it does not consider strategic factors which presents in every changed situation (Fatine, 2014).
The model can be typically applied at Haagen Dazs so as to encourage profitability aspects of the business along with foreign market share. In terms of ownership advantages, the model explains the reasons for which MNEs exist in the market place and for which they chiefly emphasizes on entering into new markets (Bradley, 2005). Further, it also depicts the benefits that are specific to the nature and the nationality of the owner; hence this will assist Haagen Dazs to bring new product at market place. Internalization advantages arises from transferring ownership advantages across national boundaries within the organization. Further, it will also assist Haagen Dazs to get location advantages which will arise afterwards Haagen Dazs will enter into Iranian market place. Cost of production will also be reduced in the case when Haagen Dazs will produce same sort of ice cream products to Iranian customers. The main aim of the model is to enhance international investment through conducting business activities in such a manner which can lower cost of exporting or other contractual agreement.
The Organization Capacity Model
Organization capacity Model is based on organizational theory and it also considers a firm as a bunch of capabilities and knowledge where skills of the employees as well as organizational capability is developed together. The model states that there must be suitable entry mode strategy selected while entering into new market place. Further, Organization Capacity Model aims to specify those issues that might come while expanding business operations in other market place. This also depicts that capability of Haagen Dazs could be enhanced in the case in entering into Iranian market place. It also aids the firm to analyze those areas where more development and improvement can be facilitated for business growth and potential. According to the specific model, it is essential for Haagen Dazs to consider its own capability while making decisions related to market entry. However, on the other hand, the model has several limitations as well. It is a traditional assumption that the capacity of an individual firm (which is limited to ownership), becomes valid when firm's efficiency related decisions are significantly influenced by collaborative agreements which might change its capacity strongly (Neary, 2012).
At the time of entering into new market place, it is imperative for Haagen Dazs to consider firm's capability as well as efficiency because that could only drive the business entity to operate the business successfully at market place. As per the model, Haagen Dazs will have to pay more concern towards organizational efficiency rather than capacity and in the same, it is will also assist the brand entity to adopt suitable measures of enhancing efficiency aspects. However, on the other hand, the model is not suitable in all the cases because somewhere it neglects political and sociological impacts on decision making process (Fatine, 2014). Apparently, Haagen Dazs will be entering into Iranian market place; therefore the business might be facing several issues due to social, political and economic aspects. Thus, it can be said that the model would not be able to showcase the impacts of social and political facets on business decisions. While entering into Iranian market, it is required for Haagen Dazs to find out legal and political scenario; however the model will not assist Haagen Dazs to get information about such aspects. The model is suitable in terms of encouraging organizational capability in retaining its business position.
The DMP Model
The Decision Making Process model is useful in selecting the best market for new entry. The model will be useful for Haagen Dazs because it involves several stages that affects decision making capability of the organization. However, the subsequent organization will have to consider many things into account at the time of entering into Iranian market place. The business will have to develop new marketing strategy at the time of entering into nee market place and along with that, new objectives are also required to be developed for the new expansion plan. Hence, all the aspects related to new market expansion should be included in the marketing strategy of Haagen Dazs. In such respect, decisions should be taken regarding new objectives, environment of the business and all the associated costs and risks. Further, DMP model will assist Haagen Dazs to modify and improve the process of decision making; however it will not consider those factors that could impact on entry mode choices.
The model will assist Haagen Dazs to make appropriate decision regarding new market entry and this will also consider new objectives for Iranian expansion. However, on the other hand, the model does not consider the role of organization in market entry; hence this will ignore the importance of Haagen Dazs's role in Iranian market place. At the same time, the model also ignore the role and impact of decision maker within the decision making process. However, considering other dimensions, it can be said that Haagen Dazs needs to consider all the important stages that comes under decision making process and that helps the business entity to conduct all the operations in effectual manner. Decision Making Process will also assist Haagen Dazs to undertake suitable and effective business decisions for managing the operations in Iranian market place.
Summing up the entire study, it can be said that Haagen Dazs needs to adopt suitable marketing strategies so as to launch the products appropriately in specific market place (Iranian market). The study has made with relevant research materials which shows suitability of the applied models. Prior entering into Iranian market place, Haagen Dazs needs to emphasize on brand equity policy and strategies as that will also assist the business entity to find out the level of existing competition in Iranian market.
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