Results and Effectiveness

Fondue became just the success Haagen Dazs needed! Coming off of a time period of negative results, Fondue delivered against critical sales growth objectives. Even while the news spoke of economic downturns, sales here increased +20% vs. last year. Downloads of the internet coupon achieved the highest contributions for both HD heavy users and new trialists. According to the popular directory website dianping.com's early 2009 results, HD's offering was among its top 3 most popular coupon downloads. All further illustrating just how much HD had tapped into the climate and consumers' overall desire for these 'affordable luxuries'.

Creative Execution

'Affordable Luxury is Being Happy' - Reminding consumers of life's simple pleasures, small luxuries that put smiles on their faces, helping make them, family and friends happy. This fueled HD's targeted plan for distribution of their offer. In addition to some weekly magazine print, the coupon became a 'little delight' in and of itself. A little surprise for our key consumers and opportunity targets, through: • On Mobile - sent via MMS to a VIPs database, who could then show the coupon on their mobile in-store to redeem. • eDM and e-Coupon – sent to HD's VIPs, popular online communities, dining and HD's own websites. • With Credit Card statements – Customers of Pudong Development Bank got an extra 'treat', at a time when smile would be needed, receiving their coupon with monthly credit card statements. • At Cinemas – Combining two 'little escapes' together, customers received Fondue coupons with cinema ticket purchases.

Insights, Strategy and the Idea

Recession-talk looming, Haagen Dazs China suffered its first core business decrease in November 2008. Approaching winter, Fondue (ice cream hotpot) is HD's key product in shops - expensive (RMB218-268 vs. RMB25/scoop) though highly profitable. Driving and promoting Fondue became critical for HD's return to growth. Proprietary agency research has shown that large China cities like Shanghai are being affected in varying ways. These consumers are more conservative, decreasing/ceasing spending on supposed 'luxury' products. Still, they are 'optimistic'. With cut-backs made, they still look for small splurges to maintain a sense of lifestyle while staying within means. Items like ice cream serve as reinforcement that they are in control, still affording self-indulgences. In this atmosphere, HD saw the chance to launch an 'Affordable Luxury'; campaign with RMB60-off Fondue coupons. With limited promotional timing, the challenge would be building awareness quickly but smartly, without diluting HD's premium brand image.