1. EUPHORIA VS. INDULGENCE
Group C
James Lee
Ibi Ogungbade
Avery Green
Dejie Li
December 11, 2012

2. Total UK Expenditure on Ice Cream (£m), 2006-2010
 Market Penetration in UK >80%
 Market Segmentation- take-home sector and wrapped
impulse sector
 Value > £1.22bn in 2010 an increase of 10.4%since
2006
 Sales > 95% from supermarket and 22% from Ice
cream Parlours
 Tubs and blocks > 40% of the Ice cream market
Source: Consumer Trends, Q4 2010, National Statistics website
 Premium and Luxury > 12.2% growth in 2010
UK Take-Home Ice Cream Subsection
 Supper Premium/luxury brand > Ben and Jerry’s and
Haagen Dazs Standard Ice Cream:
15.5%
 Premium brands >Carte D’ Or (Unilever),
Luxury/Premium:
Wall’s(Unilever) 35.6%
 Others >Kelly’s of Cornwall (R&R Ice Cream), Make's Multipacks: 48.9%
(Mackie’s of Scotland), Baskin-Robbins, Farmhouse
Fair, Frederick’s Dairies, Premier Foods, and Yoomoo. Source: Key Note
Order Qualifiers
Brand Shares in UK Tubs and Blocks
Ice cream Market in 2011
Source: Mintel

3. Ben & Jerry’s Haagen -Dazs
Founded 1978 Burlington Vermont 1961 ,Bronx, New York
Opened in UK 1994 1987
Countries 26 Countries 54 countries
Parent Company Unilever (in 2000) General Mills ( in 2001)
Products Sold Ice cream Tubs(500ml &150ml) ,sorbets, frozen Ice cream, Tubs(500ml &100ml) , sorbet, frozen
(Product Mix) yogurt, stickbars, cones, sundaes, shakes, In yogurt, sundaes , stickbars ,cones smoothies,
shops[hot drinks & blends –espresso, (waffle and crepe creations) .In shops[hot drinks &
cappuccino, teas) blends –espresso, cappuccino, tea s)
Sales Channel Supermarkets, groceries stores, convenient Supermarkets, convenient stores, food service
stores, B&J Branded vending machines, Petrol channels , HD Branded freezers ,
Stations, restaurants, Cinemas , franchise and HD shops (flagship)(4UK)
Company owned ice-cream shops , Mail order
B&J franchise “scoop shops” (244UK),
Market Position Luxury /Super premium (Ranges from children Luxury /super premium (target 20-39 middle
to Elderly ) income-wealthy)(wide r 5-59)
Franchise shops B&J franchise “scoop shops” (244UK), 750 HD shops (flagship)(4UK) over 650 shops
shops worldwide worldwide
Both companies have franchise retailing networks in the UK which will be the main focus of this
presentation
The focus will be on business to consumer market

4. Quality Quality
Perceived Quality
Cost Perceived Quality
Aesthetics (Taste)
Aesthetics
Value Added (appearance-product
(appearance, Taste)
& servicescape)
Ben
& Haagen
Jerry’s -Dazs
Speed Flexibility
NPD Speed New Product
Flexibility
New Product
Development
Development
Modified Product
 Resource Mix

6. 4 V’s Ben & Jerry’s Haagen –Dazs Ben & Jerry’s Haagen-Dazs Shops
Overall Overall Shops
Volume Market share 18%, Market share 11%, 244 shop , majority in 4 shops in UK
67.98 million liters in 39.71 million liters in Odeon
2011. 2011.
Variety 41 flavours Ice Cream, 24 flavor Ice Cream, 16 Flavours (cups & 24 flavours-(Cups &cones)
tubs(500ml &150ml) Tubs(500ml &100ml) , waffle cones) sundaes, sorbet, frozen yogurt,
,sorbets, frozen yogurt, sorbet, frozen yogurt, sundaes, shakes, frozen smoothies,( waffe and crepe
stick bars smoothies, stick bars. yogurt, hot drinks & creations) , brownies, sundaes .
blends –espresso, Custom creations, hot drinks &
cappuccino, teas ) blends –espresso, teas )
Variation In supermarkets and In supermarkets and Higher demand in Higher demand in Summer
stores demand is more stores demand is more Summer (good (good weather) and Christmas.
stable stable weather) and Dependent on good weather.
Christmas. High demand on weekends
Demand driven by (Saturday full)
Cinemas. Higher
demand on weekends
(evening)
Variability Standard package Standard package Standard products . Standard products .
products (low in products. Create & custom custom desserts, choosing from
supermarkets ) (Low in supermarkets) desserts, choosing selection of flavours and
from selection of toppings ,special creations
flavours and toppings

7. Operations Ben & Jerry’s Haagen-Dazs Difference
Process: Service shop Service shop
Infrastructure: Mainly in Cinemas (Odeon) and In middle to upper class shopping & B&J use the Cinemas to
Malls with Cinemas (244 in UK) entertaining districts (4 in UK) attract customers. HD use
Location Access to customer NOT in discount stores/ areas the volume of people in
High Traffic areas to build it stores middle to upper class
shopping Entertaining
districts .
Site Cell Layout : small neat site compact Individual branded site lager site HD has a large facility to
sometimes shared with other shops accommodate both take away (Cell accommodate restaurant
(B&J Costa), Mills cookies) . Inside a layout) and Restaurants (seats – (only 4 in UK).
cinema complex or Mall . Fixed layout & Kitchen- Process B&J has various (244)
layout) facilities at cinemas across
the UK
Facilities Cell Layout : Mainly Take away, Ice- Both sit-in Restaurant and take HD has a back office with
cream displayed (Dipping Cabinets) away. (Cell Layout) Ice- displayed Kitchen facilities for both
and prepared/customized in front (Dipping Cabinet) and storage and making their HD
office . Back office used for storage prepared/customized in front office creations. HD –Cell, fixed ,
(walk-in freezer) Seats available Back office used for storage (walk-in process layout) B&J –Cell
sometimes but shared with other freezer) and creations. Restaurant: layout. HD has Resource Mix
shops Exclusive Comfortable Seating (Fixed (staff facilities products)
layout )( over 80 ) available with
service.
Capacity : B&J has 41 flavours , but usually sells More staff usually work in peak times HD has more staff in their
16 based on demand. In off peak and other staff multitask in off peak Shops
Chase Demand periods staff usually multitask times. Ice cream is restocked when
there is an increase in demand.
Demand B&J uses Cinemas to target HD has limited edition available for B&J -
customers (martini and afternoon six months to attract new customer HD – Limits on product

8. Operations Ben & Jerry’s Haagen –Dazs Difference
Customers: Good service, fun friendly . Extravagant service : host at HD has extra focus on
Service Not specifically B&J share staff entrance waiters service , service experience (feed-
encounter with other brands Friendly and enthusiastic back mechanism). HD has
(Feedback survey for service their own staff. B&J Shops
experience ). Focus on couple s share staff with other
brands .
Queuing system Unlimited, FCFS (two cash Unlimited (FCFS) in take away, HD in sit in Restaurant has
points in Odeon Guildford when (3 cash point-same area)but multiple channels (flexible)
busy)(London one cash point) limited for sit-down restaurant
Multiple channels – Waiters
about 4 cash points
Quality: Taste and visual inspection every HD test No major difference
Inspection two days, change stock every 2  Dipping Cabinets(-14-17°C)
weeks.  Walk in freezer (-21-22°C)
 Dipping Cabinets(-14-17°C) Back office
 Walk in freezer (-21-22°C)
Back office
Assurance Use SQC pack (Statistical QA– standard procedure HD put more emphasis on
process control software ) to QC – from material selections raw material control
analyze air into ice cream , mix , HD test all production steps ,
volume etc – Ensure uniform ingredients , and taste .
high quality ISO 9001
Continuous More flavor s- based on Product Quality and Service HD- service and quality
improvement customer taste. Flavours level , customer experience B&J –flavours –
combination Feedback from customer differentiation
(survey)

9. Network
Architecture
 Super premium markets, focus on
children and families (wide coverage)  Novelty, innovative and
 Speedy transaction process many selections of Ice
 Vast shop coverage, most located in Creams
cinemas and malls
 Easy accessibility About 41 flavors, In shops 16
Market Offering
 Small sized shops usually flavors Ice cream
Cobranded (tubs, cups, cones)
 High level of CSR (Fair Trade) sorbets, frozen yogurt, stick
bar, sundaes, shakes, frozen
yogurt , hot drinks & blends
(espresso, teas)
 Franchised shops: smaller servicescapes .
in convenient locations
 Dipping cabinets ( -14-17°C) Friendly service and quick
 Walk-in freezers (-21-22 °C) Storage service
 Effective Ordering Process (CRM)
 Produce and distribute natural ice creams Fun and relaxing customer
experience (Quirky, fun &
Technology vibrant, delicious)

10. Network
Architecture
 Luxury/super premium markets, focus on middle  Finest & purest Ice creams
class and above
 Easy accessibility, convenient and shops are 24 flavors ice cream (tubs,
luxuriously decorated Cups & cones) sundaes, sorbet,
 Shops are well staffed (Professional) frozen yogurt, smoothies,
Market Offering
 Effective service capacity sundaes (waffle & crepe
 Customer feedback program to creations, Custom creations, hot
keep good customer relationship drinks & blends(espresso, teas)
 Extravagance service and
 Shops : Lager servicescape located at up scale
interaction (comfortable &
shopping centres and entertainment districts
elegant seating)
 Dipping Cabinets(-14-17°C)
 Walk in freezer (-21-22°C) storage
 Memorable, fine, customer
 Effective Ordering Process (CRM)
experience (Exclusive ,
 Limited flavours selections
connoisseur, indulgent,
 Products are crafted by the purest and finest ingredients
engaging)
Technology

11. Strengths:
 Donates towards social and environmental causes (CSR)
 A wide sales coverage providing easy access to customers
 Novelty flavours NPD, (quirky, fun)
 New flavors are launched frequently (NPD Speed)
 Good quality (natural ) and more product offerings
 Aesthetics –attractive packaging
Weakness
 Focus on delivery rather than service and customer buying experience
 Health concerns (High milk content)
 High commodity prices–inputs to ice cream are volatile – high production cost (but
cheaper than Haagen-Dazs) – higher retail prices or reduction in operating profit
margin
Strengths:
 Increased NPD (limited editions),
 Aesthetics packaging to improve brand recognition
 Customer focus -customer needs drive strategy –market research >customer value
 Luxurious shops atmosphere which improves brand image and loyalty-customer
experience
 High level of quality of products and service as well as a customer experience
Weakness
 High commodity prices –inputs (purest and natural ingredients) are volatile – very
high material and production costs - higher retail prices or reduction in operating
profit margins
 High cost of ice cream - Limited price flexibility to adjustment in customer buying
behaviour in challenging economic times
 Relatively lower sales coverage in the UK compared to Ben & Jerry’s

12. Business Operations
OQs OWs + Operations = } Strategies
Models
Process:
•Professional Service
Quality: •Service shop/Job shop
Technology:
Quality: •consistency •Mass service
•conformance • Good Infrastructure-Larger
•consistency •serviceability Infrastructure: size facility
•Conformance •perceived •location •Dipping Cabinet
•Aesthetics-(Taste) •value •site
•Walk-in freezer
•Aesthetics (taste& •facilities
Appearance) •CRM
•technical
Supply chain: •Limited editions
•tiers and networks
•performance
•supplier relationships
•features
•procurement policies Market Offering:
•integration
• Finest and purest Ice
•logistics
Flexibility Flexibility: Creams CI and innovation
•mix – (Product •output quality Inventory: •Extravagant service
•modified product •nature of demand
range) • Memorable, Exclusive
•volume •production planning
•resource mix •production control experience
•mix
•deliverability
Capacity:
•Level capacity
•new product
•Chase demand
Network
•material quality
•Demand management Architecture:
Customers: • Super premium and
Dependability: Dependability: •service encounter luxury market
•ability to keep promises- •delivery performance •queuing system •loyalty customers
(Availability ) •ability to keep promises •failure and recovery •Easy access Shops
•safety •self service
•Professional staff
•price performance
•schedule adherence Quality:
•inspection
•control
•assurance
•total quality management
•continuous improvement

13. Business Operations
OQs OWs
Cost:
+ Operations = } Strategies
•manufacturing Process: Models
•service •Professional Service
•running •Service shop/Job
•selling price shop Technology:
•Value added •Mass service •Smaller but convenient
Quality: Infrastructure: facility
Quality: •consistency •location •Dipping Cabinet
•consistency •conformance •site •Walk-in freezer
•Conformance •serviceability •facilities •CRM
•Aesthetics-(Taste)
•perceived Supply chain: •Natural Ice creams
•value •tiers and networks
•Aesthetics (taste& •supplier relationships
Appearance)
•technical
•procurement policies Market Offering:
•integration
•performance •Novelty , innovative and
•logistics
•features Many selections -Ice
Flexibility Flexibility: Inventoy: creams
ubiquitization
•output quality •nature of demand •Quick service
•mix – (Product •modified product •production planning •Fun and relaxing
range) •volume •production control experience
•resource mix
•mix Capacity:
•deliverability •Level capacity
•new product •Chase demand Network Architecture:
•material quality •Demand management
•Super premium customers
Dependability: Dependability: Customers: •Quick transaction process
•delivery performance •service encounter
•ability to keep promises- • wide coverage shops
•ability to keep promises •queuing system
(Availability ) •safety •failure and recovery efficient staff
•price performance •self service •CSR (Fair Trade)
•schedule adherence
Speed: Quality:
•delivery speed •inspection
•production speed •control
•NPD speed •assurance .
•delivery frequency •total quality management
•quote generation •continuous improvement

14. Business model definition available at:
http://www.investopedia.com/terms/b/businessmodel.asp#axzz2ESsbHFy3 (accessed at Nov 20,2012)
Ben and Jerry’s information available at:
www.benjerry.co.uk ( accessed : Nov.20,2012)
Haagen-dazs information available at:
http://www.haagen-dazs.co.uk/UK_Home/ ( accessed: Nov.20,2012)
Logos of Ben and Jerry’s available at:
www.google.co.uk ( accessed: Dec.2 ,2012)
Franchise shops information available at:
http://www.discoverindulgence.com/en/Global/Find/Europe/United+Kingdom/London/Leicester+Squa
re.aspx (accessed: Dec 2, 2012)
Slack et al.,1995 Operations strategy model available at:
http://www.emeraldinsight.com/journals.htm?articleid=850851&show=html ( accessed: Nov 25,2012)