Examine the explicit “questions about the future” presented in the last section of the case.

Question

What will be an ideal response?

Answer 1

Here, instructors may choose several different ways of managing the class discussion. They may either be fairly direct and tackle one question at a time, or they may choose to open up a relatively free discussion, where students may make contributions from different points of view.
Here are some thoughts:
Who is Farggi competing against? Here instructors may ask students to elaborate on Type 1 and Type 2 competition. Most of the students feel that both Häagen-Dazs and Farggi should worry about and endeavor to expand the premium ice cream segment in Spain, rather than concentrate in competing against each other.
Quite on the contrary, some students may think that the premium ice cream market segment in Spain may be limited. In fact, the case says that the “super premium” ice cream segment in the United States has a share of about 11 percent of the total ice cream market (case Exhibit 1). If we apply this percentage to the total Spanish market (182 million liters, case Exhibit 1), we obtain a total premium segment size in Spain of about 20 million liters. But the U.S. market has been developed over several decades, not just a couple of years, and the U.S. population has a much higher level of per capita income. Therefore, the potential of the premium ice cream segment in Spain may actually be much smaller than 20 million liters. Will Häagen-Dazs and Farggi reach a ceiling much sooner than they expect? If so, is this window of strategic opportunity much smaller than some students may seem to believe?
Regarding growth, instructors may probe students regarding several detailed questions. One of them is how fast to grow. Another one is where to grow. Some students may suggest that Farggi should concentrate regionally, giving priority to opening up new retail stores in Barcelona and the surrounding Catalan region. Some may suggest that they should look for opportunities to expand internationally.
Of course, a very interesting topic for discussion is the role of exclusive stores (company owned or franchised). This is a major strategic element of differentiation of Farggi and Häagen-Dazs versus regular ice cream companies.
Regarding advertising, instructors may question again several points. Häagen-Dazs is known to have done some advertising to reinforce their brand identity. Should Farggi be doing some media advertising also? If so, what should be the message?
One major overall question is to what extent Farggi should continue to imitate Häagen-Dazs, or whether they should aim at creating a differentiated image of their own. If so, which one? “Local” versus “multinational?” “All family” versus “young adults?”
Finally, the last “question for the future” asks for students perceptions of the capacity of Farggi to further grow on their own, or whether they should try to find a non-family investor.