Literature Review on Develop Launch Marketing Strategy

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 the 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 perceptions towards foreign products even in the same product category. Iran is one of the fastest growing developing economies in the world and their consumers 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 the perception of consumers towards these branded products. Brand is a powerful tool that attracts more consumers towards specific products and services and understanding the 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 need 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. The 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, the market image of Haagen Dazs should be well associated with quality aspects so that a 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 to grab the attention of end users. The views of Paul (2008), point out that brand equity depicts unique marketing impacts on the brand; therefore considering the optimistic phase of brand equity, consumers willingly get ready to pay for more level of quantity because of the attractiveness of the products. In order to increase sales and profitability, it is essential for Haagen Dazs to generate awareness in the marketplace so that consumers can make choices accordingly. Since Haagen Dazs is entering into a new market; therefore it is essential for the business to emphasize more on the needs and preferences of clients and this will assist in maximizing sales potential.

Customer Segmentation

Segmentation is the criteria where Haagen Dazs can segment the 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 in 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 a wide range of ice cream products; therefore it is essential for the entity to consider age and life cycle stage. The needs and abilities of consumers change as they 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 the Iranian marketplace. Demand for ice cream changes due to taste and preferences; however, Haagen Dazs is a renowned brand that has a variety of products with quality aspects. Therefore, the brand has the potential to survive in the 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 in selling more products in the 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 to these places; hence Haagen Dazs can collaborate with such places (Wilkinson and et.al, 2007). At the same time, Haagen Dazs needs to emphasize more on promotional strategies so that a large number of customers can be enticed towards the existing products and services. Similarly, the business needs to highly consider the 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 purchases can be enhanced in this particular case thorough emphasizing customer satisfaction and beneficial aspects. Consumers of Iran are highly associated with the purchase of branded products; hence the opportunities for growth are higher in the Iranian marketplace. From a theoretical point of view, Kayworth and Leidner (2008), have 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 to the marketplace.

Market Entry Strategy Modes

Every business needs to adopt suitable market entry modes while entering into new areas and marketplaces; therefore Haagen Dazs also needs to adopt a feasible marketing strategy so as to launch the products in the 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 they also change 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 a wide range of quality cream owners' main focus is to satisfy the needs and wants of customers with high standards. In order to enter the market, top-level management of Haagen Dazs is recommended to use a 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 an existing range of products so that customers can be attracted. While establishing the 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, a penetrating pricing strategy can be used at the initial level so that a competitive edge can be achieved to sustain for a 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 in analyzing portfolio transactions and financial capacity as well. TCA helps in analyzing two possible prices for a product. The model is also useful in terms of 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 in considering 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 profitable for the business entity (Kotler, 2006).

The OLI model (The ownership, location, and internationalization)

The OLI model was introduced with the purpose of identifying the factors that influence 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 in market marketplace 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 specify advantages derived from internationalization processes and along with that, it also emphasizes 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 impact entry mode decisions; but it does not consider strategic factors which present 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 marketplace and for which they chiefly emphasize 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 in bringing new products to the marketplace. Internalization advantages arise from transferring ownership advantages across national boundaries within the organization. Further, it will also assist Haagen Dazs in getting location advantages which will arise afterwards Haagen Dazs will enter into the Iranian marketplace. The cost of production will also be reduced in the case when Haagen Dazs will produce the same sort of ice cream products to Iranian customers. The main aim of the model is to enhance international investment by conducting business activities in such a manner that can lower the cost of exporting or other contractual agreements.

The Organization Capacity Model

The organization capacity Model is based on organizational theory and it also considers a firm as a bunch of capabilities and knowledge where the skills of the employees as well as organizational capability are developed together. The model states that there must be a suitable entry mode strategy selected while entering into a new marketplace. Further, Organization Capacity Model aims to specify those issues that might come while expanding business operations in other market place. This also depicts that the capability of Haagen Dazs could be enhanced in the case of entering into the Iranian marketplace. It also aids the firm in analyzing those areas where more development and improvement can be facilitated for business growth and potential. According to the specific model, Haagen Dazs needs 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 a 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 a new marketplace, it is imperative for Haagen Dazs to consider the firm's capability as well as efficiency because that could only drive the business entity to operate the business successfully in the marketplace. As per the model, Haagen Dazs will have to pay more concern to organizational efficiency rather than capacity, and the same, it will also assist the brand entity in adopting suitable measures of enhancing efficiency aspects. However, on the other hand, the model is not suitable in all cases because somewhere it neglects political and sociological impacts on the decision-making process (Fatine, 2014). Apparently, Haagen Dazs will be entering into Iranian marketplace; 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 the Iranian market, it is required for Haagen Dazs to find out legal and political scenarios; however, the model will not assist Haagen Dazs in getting 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 affect the decision-making capability of the organization. However, the subsequent organization will have to consider many things into account at the time of entering into the Iranian marketplace. The business will have to develop a new marketing strategy at the time of entering into a new marketplace 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 a respect, decisions should be taken regarding new objectives, the environment of the business, and all the associated costs and risks. Further, the DMP model will assist Haagen Dazs in modifying and improving the process of decision-making; however, it will not consider those factors that could impact entry mode choices.

The model will assist Haagen Dazs in making appropriate decisions 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 the organization in market entry; hence this will ignore the importance of Haagen Dazs's role in the Iranian marketplace. At the same time, the model also ignores the role and impact of decision-makers within the decision-making process. However, considering other dimensions, it can be said that Haagen Dazs needs to consider all the important stages that come under the decision-making process, and that helps the business entity to conduct all the operations in effectual manner. The Decision-Making Process will also assist Haagen Dazs in undertaking suitable and effective business decisions for managing the operations in the Iranian marketplace.

Conclusion

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 a specific marketplace (Iranian market). The study has been made with relevant research materials which show the suitability of the applied models. Prior to entering into the Iranian marketplace, Haagen Dazs needs to emphasize brand equity policy and strategies as that will also assist the business entity in finding out the level of existing competition in the Iranian market.

References

• Bradley, F., 2005. International Marketing Strategy. Financial Times/Prentice Hall.
• Ferrell, C. O., and Hartline, D. M., 2010. Marketing Strategy. 5th ed. Cengage Learning.
• Hennessey, D. H. and Jeannet, P. J., 2005. Global Marketing Strategies. 6th ed. Dreamtech Press.
• Kapferer, N. J., 2008. The new strategic brand management: creating and sustaining brand equity long term. 4th ed. Kogan Page Publishers.

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