Jan Phillips is the newly hired ice cream product-market manager for North America for Haagen- Many other North American ice cream producers have turned to frozen yogurt for growth. Frozen Dazs-the world's leading brand of super premium ice cream (now available in 55 countries) and the yogurt sales were in a slump for a long time because many people didn't like the tart taste. But after the market leader in North America. Pillsbury says Haagen-Dazs (www.pillsbury.com/main/brands/haagen) product was reformulated, it started to win customers. The difference is that today's frozen yogurt is profitable globally, with total sales of more than $900 million. The company saw its sales grow rapidly tastes more like ice cream. during the 1990s, but now its markets are facing significant change and very aggressive competition. Phillips is responsible for Haagen-Dazs' ice cream strategy planning for North America. The yogurt market leader, TCBY (www.tcby.com), which had sales of only about $2 million in 1983, has risen to over $100 million in sales. Its numbers over 2,500 shops worldwide and is franchised in over Other product-market managers are responsible for Europe, Japan, and other global markets. 67 countries. In North America, yogurt makers are using aggressive promotion against ice cream. TCBY Therefore, Phillips will be expected to focus only on North America while knowing that "everyone" will ads have preached: "Say goodbye to high calories-say goodbye to ice cream" and "All the pleasure, be watching her (and North America) for clues about what may happen elsewhere. none of the guilt." And the ads for its nonfit frozen yogurt emphasize: "Say goodbye to fat and high calories with the great taste of TCBY Nonfit Frozen Yogurt." Overall, ice cream sales in North America have been off 1 to 2 percent in recent years. Still, some new entries have made a big splash. Starbucks, the coffee king, is one such brand. In its first year in Baskin Robbins has introduced yogurt in many of its stores and has even changed its name to Baskin grocery-store freezer sections, its Frappuccino bars-in several flavours-were a big hit. Coldstone Robbins Ice Cream and Yogurt. Haagen-Dazs also offers yogurt in most of its stores Creamery is a fast-growing franchise, increasing from 1 store in 1988 to about 1,000 now. Haagen-Dazs, Although the flurry of consumer interest in low-fat yogurt and low-fat ice cream certainly created along with a few other super premium producers, are continuing to grow at rates of 2 to 3 percent. But some new market opportunities, it is not clear how consumers will react to these products over the most other North American super premium producers are reporting flat sales, and some are going out of longer term. One reason is that many consumers who were initially excited about being able to buy a business. The easy availability of super premium ice cream in supermarkets has hurt some of these good tasting, low-fat frozen dessert have realized that low fat does not necessarily mean low calorie. In producers who sell through ice cream stores, which specialize in take-out cones, sundaes, and small fact, Jan Phillips has been trying to identify a product that Haagen-Dazs could produce that would offer containers of ice cream. It is also thought that, at least in part, the decline in sales growth of super consumers great taste, low fat, and low calories all at the same time. One possibility she is seriously premium ice cream in the North America since the early 1990s is due to competition from other considering is to introduce a line of sorbets based on exotic fruits like kiwi and mango and that use low- products such as lower-calorie yogurts and low-fat ice cream. calorie sweeteners. Despite a real concern about healthy diets, North Americans seem to swing back and forth in their yearnings for low fat and rich taste. There is some evidence that "dessert junkies" who want to A sorbet is basically the same as sherbet, but European sorbets usually have an icy texture and include indulge without too much guilt are turning to low-fat frozen yogurt and low-fat ice cream. This has less milk. This is the sort of product that Jan Phillips has in mind. She thinks that it might have an upscale encouraged a number of super premium ice cream competitors to of-fer these products too. Pillsbury's appeal and also be different from what is already in the premium ice cream case Haagen-Dazs, International Dairy Queen, and Baskin Robbins are selling frozen yogurt. And Kraft-which makes Frozen Glade, Edy's, and Dreyer's Grand Ice Cream-is among many other ice cream makers that On the other hand, calling a product by a different name doesn't make it really new and different, and are promoting gourmet versions of low-fat ice cream. basic sherbet has been around for a long time and never been a big seller. Further, consumers don't think of sorbet in the same way that they think about a rich-tasting bowl of ice cream. You don't have to Because of the competition from low-fat products, Haagen-Dazs introduced a line of low-fat super convince people that they might like premium ice cream. Sorbet, on the other hand, isn't something that premium ice cream. The low-fat line contains no more than three grams of fat per serving. That consumers crave and make a special trip to buy. compares with six times more grams of fat in a half-cup serving of its full-fat versions. Haagen-Dazs believes that its low-fat super premium ice cream is better tasting than other alternatives. Its belief is Further, Phillips is very conscious that the Haagen-Dazs brand should stand for high quality and the that "people like to make every calorie count." Having worked on the low-fat item for more than two best ingredients. Yet, it's not clear that consumers will think of sorbet as a premium product. Rather, years, it developed a process whereby a concentration of dairy proteins from lactose-reduced skim milk they might just see it as ground-up ice with some flavouring thrown in. But if sorbet isn't the right way to gives a mouth-feel that approximates that of a higher-fat product. Haagen-Dazs sells its low-fat products go with new-product development, how should Haagen-Dazs counter the competition from other low- in a variety of flavours. fat ice cream brands like Ben & Jerry's and other new entries to the super premium category like Most ice cream products are considered economy and regular brands-priced at $3 to $6 for 2 litres. Coldstone Creamery? Super premium ice cream retails for $3.50 to $4.50 a half-litre, or $9 to $11 for 2 litres. The retail price for a half-litre of Haagen-Dazs is usually over $5.00. The low-fat version is comparably priced to the full- fat product