Ben and Jerry Case Analysis

In: Business and Management

Submitted By karan11
Words 1438
Pages 6
Introduction • Founded by two Brooklyn school mates Ben Cohen and Jerry Greenfield in Vermont, 1978. • Combination of high fat content, chunky ingredients and catchy flavor names helped to create its own demand. • Sales grew with time and the company went public in 1984. • Besides being a fun company, it was determined to be socially responsible with an objective of caring capitalism. • By 1994, sales exceeded $150million and the company had 600 employees with a global distribution network. • However, 1994 actually brought loss and net income suffered. • In 1995, the company’s sales started to increase with a substantial rise in net income. • By 1997, Ben and Jerry’s was doing well but slow growth and retreating market share was an issue. • Japan was being considered for future expansion.

Current Strategy • Focused Differentiation - To make, distribute and sell the finest quality, all natural ice cream. - Socially responsible company known for its caring capitalism.

Problem Statement

Given that the company has declining profits and is losing its market share in both total ice cream market and super premium market……… • Should Ben and Jerry’s enter the Japan market in summer 2008? • If yes, then how should they perform the market entry, through Seven-Eleven Japan or collaboration with Ken Yamada?

External Analysis

Industry Structure • Ice cream industry is categorized by three segments: Super premium, premium plus and general ice cream. • Total American ice cream market is $ 3.34 billion with no geographic boundaries. • By 1997, almost 10 percent of U.S milk production went into ice cream. • Demand is seasonal to a certain limit. • Super premium market is much less fragmented, with Haagen Dasz getting 44 percent and Ben & Jerry’s 34…...

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