Company: Haagen-Dazs
Agency: Ketchum
Timeframe: 2007
Despite its worldwide popularity as an ice cream, in 2007 Haagen-Dazs was feeling the pinch from competitors. It was also experiencing increased pressure to crank up profits
due to rising ingredient prices and distribution costs. And, as rivals incorporated lower-quality ingredients into their ice cream products, Haagen-Dazs executives felt compelled
to innovate to retain its customer loyalty. Rather than scrimp on ingredients, and refashion its latest offerings for the lowest common denominator, they decided to ignore the
obvious and went to the other extreme: they unveiled in March 2007 the company's most expensive and exclusive ice cream line, the "Reserve Series."
Boasting a hefty price tag of $4.99--approximately 33% more than its popular base brand product--the new line, in the wake of shrinking marketing dollars, had to rely on PR to
ensure a successful launch. Plus, media outreach would be problematic because the product was going to be available in limited markets. Consequently, choosing the right agency
partner was critical.
To help secure press coverage that would drive sales, Haagen-Dazs executives tapped Ketchum. Given Ketchum's previously successful relationship with the brand, their
partnership on the product launch was a fait accompli.
"Ketchum and Haagen-Dazs have had a long and triumphant history together, and coming off the extremely successful product launch of Haagen-Dazs Light, it was an easy decision
to task Ketchum with the introduction of the Haagen-Dazs Reserve Series," says Ching-Yee Hu, brand manager of Haagen-Dazs.
The collaboration between agency and brand was smooth and fluid, Hu says, because "throughout the entire launch of Reserve, [Ketchum and Haagen-Dazs] participated in weekly
conference call briefings, face-to-face meetings and daily phone calls and e-mails to ensure all parties were informed and on track."
Getting The Scoop
The team soon determined they had three separate areas of goals for the product launch: business, communications and media. The business goals included the following:
-
Convince consumers, retailers and media that Reserve was worth its higher price, even without the benefit of new packaging, advertising or a hefty national marketing
budget; and,
-
Drive trial and repeat purchase and increase retail authorizations, based on an initial goal of achieving 18% distribution in the brand's retail network.
For the communications portion of the campaign, the goal was to drive national and targeted regional word-of-mouth and favorable consumer perceptions ahead of the retail launch
among food opinion leaders and media. Extra attention was paid to San Francisco, a key retail market for Haagen-Dazs (and home place of the brand).
For the media end, the team wanted to generate at least 25 million impressions for the Reserve line, including national coverage, despite limited product availability.
To help determine the strategy of the campaign and its potential for success, Haagen-Dazs conducted consumer focus groups, a quantitative flavor study and secondary research.
Among their findings:
-
Consumers positively responded to the proposed brand positioning, which "featured the best ingredients sourced from around the world"; and,
-
The best target audience for the Reserve line was adult "foodies"--people with discriminating palates who are more experimental and food knowledgeable than the general
population. As in the case of marketing fine wine, the team concluded it could apply the same mind-set to marketing Reserve, but in this case to discerning ice cream
lovers.
To plot the campaign, the team employed a three-pronged strategy. They were:
-
Market Haagen-Dazs Reserve Series in a compelling way (as a luxury item, a la fine wine);
-
Initiate a word-of-mouth campaign that selectively engages a group of consumers and media to become early adopters and evangelists; and,
-
Celebrate its new ingredients to ratchet up the curiosity of a finicky media.
Bringing In The Ice Cream Connoisseur
To build buzz, the team went beyond the box when developing and executing tactics. For instance, a wine sommelier was hired to act as an ice cream tasting expert, drafting
notes as well as food and wine pairings for each new flavor, in all media materials and on the Web site. A three-day tasting event was conducted for magazine editors in New York.
The flavors were served with special tasting utensils. Editors received a wooden Haagen-Dazs Reserve box/keepsake with dessert wine and glasses.
For assistance in securing grassroots support, Ketchum selected 75 well-connected consumers from the worlds of food, media and the arts as well as die-hard Haagen-Dazs
loyalists, to sample Reserve before the retail launch. This group received a special delivery of the new ice cream and were encouraged to pass the "gift" on to three friends.
To create an aura of intrigue and a feeling that the product was still in prototype form, the ice cream was delivered in a simple, unmarked white pint package. This contributed
to the notion that the ice cream was an exclusive delicacy and that the consumers who were requested to taste it before the retail launch were insiders. A special private Reserve
microsite was developed for this choice group, where they were given VIP privilege to learn more about Reserve and its special ingredients, pass deliveries to three friends and
provide feedback.
To further attract consumer attention and deflect concerns about the product's limited regional availability, Haagen-Dazs, encouraged by Ketchum, deviated from its usual
business norm: It offered an e-purchase program to U.S. residents.
In San Francisco, Haagen-Dazs created the first-ever branded ice cream-stylized hotel room. Working with the city's Hotel Triton, the team designed a suite in the image of the
Haagen-Dazs Reserve Series brand. Ice cream-loving tourists can (even now it is still available) reserve the room stocked with unlimited ice cream. A media preview offered design,
hotel and travel reporters the first "taste," resulting in both local and national buzz among travelers.
Icing On The Ice Cream Cake
The ROI surpassed expectations. The campaign generated more than 78 million media impressions, which was triple the original aim. Product mentions appeared in national
publications including Reader's Digest and Woman's Day. Local coverage appeared in all regional markets where the product was available. Influencer outreach led to
mention on the Today Show. Blog and online pickup were highly active on sites such as Chowhound.com and SeriousEats.com.
The Reserve-inspired hotel suite in San Francisco's Hotel Triton achieved a 70% occupancy rate in its first two months. National and local media impressions promoting the room
totaled 8.9 million through 2007.
The Haagen-Dazs call center received more than 500 calls from consumers about Reserve in its first three months of launch. It achieved two times the average for a new product.
High repeat purchase rates of Reserve averaged 20% through end of May, compared with a 9% average repeat for new products at the same point of launch cycle. Also, retailers
nationwide clamored for Reserve product, with new authorizations exceeding goals by 65%. PRN
CONTACTS:
Ching-Yee Hu, [email protected]; Shannon Gomes, [email protected]
Product Launches On A Shoestring
It's hard to mount a PR campaign when the company coffers are limited; it's doubly hard when the linchpin of your efforts is a product launch that normally depends on healthy
advertising and consumer promotions to drive it. Such was the dilemma faced by the Ketchum West brand team that worked on the recent launch of Haagen-Dazs's Reserve Series. Yet
when there's strategic ingenuity at work, a smart solution can always be found. Following are several invaluable tips offered by Shannon Gomes, account supervisor for Ketchum, to
help you catapult your new product into the stratosphere--limited funds notwithstanding:
-
Take time to figure out your demographics: "Narrow your core target audience (media & influencers) and then focus, focus, focus on this audience. With limited
dollars, every step taken must be extremely strategic and well-executed."
-
Forget about multitasking--stay on track: "Execute one or two tactics very well, instead of trying to do 10 things at once. Keep efficient and focused, and work as a team
with your client. You'll experience fantastic results and continue to build a lasting relationship with them."
Marketing Luxury In A Tough Economy
Withstanding the slings and arrows of a punitive economy is a formidable challenge for marketers across all categories right now. It's especially so for those who traffic in
luxury food or beverage items, be it fine wine or pricey desserts, such as Haagen-Dazs' limited Reserve Series. Given the currently dismal economic forecast for corporate America,
are there best practices for marketers to employ when launching luxury products? According to Ching-Yee Hu, brand manager of Haagen-Dazs, the answer is "yes":
-
"Market the product in an unusual and compelling way that celebrates its 'star' qualities to dramatically pique the curiosity of a discerning consumer target"; and,
-
"Initiate a word-of-mouth campaign that selectively and creatively engages an exclusive group of consumers and media to become early adopters and product
evangelists."