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Ben & Jerry’s Marketing Audit Essay

one particular Executive Synopsis According to the American Marketing Connection, “marketing is definitely an organizational function and a set of procedure for creating, connecting and providing value to customers and for managing customer relationships in ways that gain the organization and its stakeholders” (Kerin, 2005, p. 6). I’ve completed a marketing audit of Ben & Jerry’s Homemade, Inc. inside the following classes: Market and Distribution Stations, Manufacturing, Market segments and Buyers, Competition, Advertising, Objectives, Tactics and Strategies, the 4P’s (product, costs, promotion, and place), and sales.

Based upon my results, there are several elements that will perform a key role in Bill & Jerry’s Ice Cream turning out to be number one inside the ice cream sector, instead of becoming ranked, as number 2. They are as follows: Improvement the variety and names from the ice cream tastes Increase product sales in the not target marketplaces Ben & Jerry’s your favorite ice cream currently gives consumers Super-premium ice cream flavours that are the two unique and quirky. Furthermore, some of the most bizzare flavors had been suggested by adults. For instance , some of the flavors include, Cherry Garcia, Big Monkey, and Chubby Hubby (www.benjerry.com).

Because of some of the unrealistic names, it becomes difficult for consumers need to figure out why a great ice cream can be called big monkey, and secondly, what really does the flavor include. After all, Ben & Jerry’s target consumers are at the high end of the consumer spending spectrum. Haagen-Daazs’ most well-known ice cream taste is simply, vanilla. Therefore , belief becomes a vital marketing concept to attain the phone number one status. Although Ben & Jerry’s continues to be acquired by Unilever, one of the main food businesses in the world, Haagen Dazs, which has been acquired by Dreyer’s features still been able to permeate 42% of the super-premium your favorite ice cream market, although Ben & Jerry’s penetrated 38%.

Yet , Ben & Jerry’s have been completely able to have got 100% profitability over the last seven years, when decreasing the cost of sales. Breaking through the twenty percent nontarget marketplace would allow income to continue to climb way up by becoming more visible. Advertising and marketing can be done through supermarket circulars, television commercials, and a radio station announcements, and offering the super-premium snow promotions such as buy one, have one free or perhaps coupons.

Therefore, customers and profit margins boost. Currently, Bill & Jerry’s super-premium ice cream is sold in pint size quantities. Gallon size volumes were only sold to factory club shops. Selling the item to the general public in gallon sizes will allow them to get into the family segment in the ice cream sector. Understanding the client is a vital tool in successful marketing and sales.

Yet , careful analysis and planning are necessary. Therefore, a recommendation is being created for Ben & Jerry’s to the market of “micro-branding”; a trend that is certainly becoming more successful in the your favorite ice cream industry. “Micro-branding would allow Bill & Jerry’s to partner with a compatible and acknowledged national brand to develop an ice cream formula that delivers a taste experience that may be related to the national brand’s product (www.qffintl.com). Some of the corporations that currently co-brand are Cool Brands International/General Mills = Yoplait Frozen Breakfast time Bars, Reese’s candies and Friendly’s Restaurants. Furthermore, just before launching this new venture, Ben & Jerry’s can execute a review among loyal customers.

Ben & Jerry’s Ice Cream is the foremost illustration in the 80/20 guideline. They accomplish 80% of the revenues in the target market and 20% in non goal markets; yet , to increase revenue and become Number 1, they will need to increase sales in non target markets when stimulating demand in focus on markets. Based on corporate information (www.benjerry.com), Ben & Jerry’s Ice Cream advanced when two childhood buddies, Ben Cohen and Jerry Greenfield fulfilled in a 1963 7th level gym course in Merrick, New York. In 1977, Ben and Jerry move to Vermont and finished a $5 correspondence course in ice cream making. After, a $12, 000.

00 investment was made, $4, 1000. 00 than it borrowed, and so they opened their first Ben and Jerry’s homemade ice cream scoop shop in a refurbished gas station in Burlington, Vermont, on May 5, 78. The company offers maintained a reputation to get producing fabulous ice cream and frozen goodies, as well as marketing promotions that engender an image since an independent socially conscious Vermont company.

On August three or more, 2000, Ben and Jerry’s were attained by Unilever, a British-Dutch food firm with division in 75 countries. This acquisition would allow the Bill & Jerry brand ice cream to cross into countrywide and intercontinental markets. Ice cream was made with fresh Vermont cream and dairy, and the best and biggest chunks of nuts, fruits, candies, and cookies” (www.benjerry.com). Currently, Bill & Jerry’s sell 18 Mio gallons of ice cream annually, and more than “$200 Mio in twelve-monthly sales globally including Europe, the Mideast, and Asia” (Kerin, 2006, p. 2). This makes them one of the leading maker’s of premium goodies, matching rivals Nestlé’s Haagen-Dazs, and Godiva.

A few of the first tastes included France Vanilla, Mint with Oreo Cookie, Maple Walnut, Rechausser Pecan, and Dastardly Mash. In order to maintain steadily its status being a leader inside the premium goodies industry, fresh flavors will be constantly being marketed, and also measures to ascertain what the goodies consumer desires now and in the future. The corporate vision is built around three proper goals (missions) that support Ben & Jerry’s corporate and business concept of associated prosperity.

These types of goals are: 1 . The item mission: End up being the leading distributor of recently made top quality ice cream, utilizing natural ingredients that do not violate the environment. installment payments on your The economic mission: Attain capital development for the organization, the stakeholders, and the staff. 3. The social mission: Be a master in creating innovative organization practices which will make a positive influence on society country wide and internationally.

1 . a couple of Market and Distribution Stations The company at present markets taste ice cream, freezing yogurt and sorbet in packaged pints, for sale primarily through four channels: Bill & Jerry’s Ice Cream presently distribute many throughout the Usa primarily through independent suppliers targeting specific markets including New Britain, New York, the Mid-Atlantic area, Florida, The state of texas, the West Coast and selected additional major marketplaces, including the Midwest and Colorado areas. It happened in 1999, approximately 77% of the product sales of the Company’s packaged pints were caused by these concentrate on markets (www.benjerry.com).

Also, ice cream items are also available in ” non-target ” markets in the United States, the United Kingdom, Portugal, Israel, Canada, the Netherlands, Athens, Japan, Singapore, Peru and Lebanon. 1 ) 3 Making The company produces Ben & Jerry’s super premium goodies and frozen yogurt pints at its herb in Vermont. This plant manufactures Ben & Jerry’s ice cream, iced yogurt, frosty smoothies and sorbet in packaged pints,  12oz. and single serve containers in its St . Albans, Vermont plant.

However , in 1999, the company moved the developing of its frozen novelty line of business via a company-owned plant in Springfield, Vermont, to third get together co-packers to boost the company’s competitive situation, gross margins and earnings. As a result of this kind of restructuring, the business was able to write-off `assets linked to the ice cream uniqueness business, property impairment expenses of various other manufacturing property and expenses associated with severance for all those employees who also do not accept the Company’s offer of relocation. The implementation of this manufacturing reorganization, rearrangement, reshuffling program triggered a pre-tax special fee to income of approximately $8. 6 Mio in the 4th quarter of 1999 that was generally non-cash.

The routine was executed in 2150. Thus, outsourcing techniques its uniqueness business can enable the organization to bring in a larger range of novelty products at a later date periods. 1 ) 4 Market segments and Customers Ben & Jerry’s goodies is packaged in pints, gobelet, ½ gallons, single provide containers and novelty items primarily through supermarkets, other grocery stores, convenience stores and other retail food outlets.

The company markets ice cream, freezing yogurt and sorbet in 2 ½ gallon mass containers generally through franchised and company-owned Ben & Jerry’s details shops, through restaurants and food service accounts, just like stadiums, international airports, cafeterias, and hotels. The ice cream is definitely distributed through independent ice cream distributors; with a few exceptions, just one distributor is definitely appointed for each territory intended for supermarkets. In most areas, sub-distributors are used to distribute to the smaller classes of trade.

Company trucks and also other distributors disperse products which might be sold in Vermont and upstate New York. In the late 90’s, Bill & Jerry’s redesigned the distribution network to enable more company control of sales and improve effectiveness in the division of usana products. Under the renovate, Ben & Jerry’s increased direct sales calls by its very own sales force to any or all grocery and chain convenience stores and provides a network where no distributor of Ben & Jerry’s products has a majority percentage of the Company’s distribution.

In addition , a joint venture of the U. S. ice cream operations of Nestle as well as the Pillsbury Company distributes Bill & Jerry’s products in specified areas; the balance of domestic transport are sent out primarily by Dreyer’s Grand Goodies. Under the redesign, no single supplier is expected to handle over 40% of Ben & Jerry’s syndication, as compared with Dreyer’s circulation activities accounting for approximately 59% of the company’s net revenue in 1997 and 98. 1 . your five Competition “The ability to produce innovative sales strategies is crucial to a company’s competitiveness” (Magrath, Allan, 1992, s. 1). Competition in the high grade ice cream industry is brutal. Initially, Nestle, Dreyer’s, and Blue Bells were Ben & Jerry’s top three top opponents.

In September of 2003, Nestle merged its procedures with Dreyer’s, which makes Edy’s and Haagen-Dazs ice cream (www.dreamery.com). Other significant competitors are Columbo, Healthy Choice, and Starbucks, which are all distributed by Dreyer’s. In respect to research, Haagen- Dazs uses several methods to keep the position of being number one in the your favorite ice cream industry, and perhaps they are as follows: a. Substantial awareness in more overseas markets than Ben & Jerry’s. w. More shares of the marketplaces. c. Cookies and candies are used as an element of the ingredients.

Additionally to contending with the leading competitor, Dreyer/Nestle, Ben & Jerry’s even offers to face competition from other players including: Berkeley Farms “The design of ice cream packaging was changed to a more lustrous grown up design utilizing collages of designs, photography and textures. The polished developed designs cleared the dilemma, strengthened the rand name, and combined the quality of the ice cream. An excellent premium appear accompanied the retail price, and was created without sacrificing the brand Ben & Jerry’s eccentricity” (www.fitch.com).

Changing the packaging design helped the company to be taken more serious by the premium ice cream consumer market. To sustain their brand and marketing strategy, Ben & Jerry make sure almost all marketing activities are geared towards building manufacturer equity, a great reputation intended for the company, and a lot importantly, profitable customer relationship. The company’s marketing strategy includes: 1 . Putting an emphasis on the high quality, natural ingredients in its products. 2 . Highlighting commitment to social change through impressive promotional and advertising campaigns facilitating brand consciousness through Pr, magazines, a radio station, TV coverage, and the internet.

The company right now distributes its ice cream items internationally in great britain, Israel, particular parts of The japanese, Ireland, Italy, Canada, holland, Belgium, Singapore, Peru, and Lebanon. Furthermore, all of the information shops will be franchised, which in turn contributes substantially to the growth of the brand. 2 . 1 Objectives, Strategies and Tactics Competition in the superior ice cream market is brutal.

The company’s two primary competitor’s will be the Haagen-Dazs operation of Ice Cream Associates and Dreyer’s/Edys, which presented Dreamery. Different significant frosty dessert competition are Columbo, Healthy Decision and Starbucks. “Haagen-Dazs is definitely the industry innovator with 42% of the super-premium business, with out. 2 Bill & Jerry’s, with 35 percent” (Emert, Carol, S . fransisco Chronicle, s. 1) however Ben and Jerry are looking at turning out to be No you and the 4Ps analysis listed below illustrate how they want to accomplish this goal.

2 . 2 4P’s – Product The manufactured ice cream market includes overall economy, regular, high grade, premium additionally and super premium items. Super high quality ice cream is normally characterized by a greater richness and density than other kinds of ice cream. This higher quality ice cream generally costs more than any other kinds and it is usually promoted by putting an emphasis on quality, taste selection, structure and company image.

Various other ice cream are largely sold on the basis of cost (www.benjerry.com). Bill & Jerry’s Homemade makes its products by facilities in Vermont. They make over forty five different Super-premium Ice Cream flavors (www.hoovers.com) Super-premium Flavors: Super Premium Ice Cream, Super Superior Frozen Yogurt, and more just lately, Super Superior Sorbet are getting to be an important portion of the frozen dessert industry achieving “$3. 5 billion in annual goodies sales (Emert, Carol, l. 1) Extremely premium goodies is the quickest growing portion in the ice cream industry.

Product sales in the low-card ice cream marketplace skyrocketed to close to $76 Mio in January of 2005. Exploration shows, “66% of carbohydrate conscious people are seeking low fat products” (www.qffintl.com). In response for the demand for lower fat and lower cholesterol items, Ben & Jerry’s introduced its own very premium low fat frozen fat free yogurt and zero-lactose and cholesterol-free sorbet, in addition to a new distinctive line of low fat goodies.

2 . several Pricing Based on information furnished by Information Resources, Inc., an application and advertising information solutions company, the whole annual U. S. sales in grocery stores at retail prices of super high grade and premium plus goodies, frozen fat free yogurt and banquise were about $572 Mio in 1999 compared to about $518 Mio over 10 years ago. During the 2001-2003 period revenue grew simply by 11. 6% In 2005, sales were approximately $260 Mio, and 2004 revenue were $272 Mio. Ben and Jerry’s product is regarded an affordable luxurious because of the high quality and amount of the ingredients. Nevertheless , individual merchants set their own retail charges.

A reflection of the variation of charges depends on community market conditions, as illustrated in the desk below. 2 . 4 Place Competition and consumer demand are increasing in the premium ice cream industry. Because of limited shelf space within grocery stores, visibility becomes minimal for many ice cream suppliers. As a result, a few brands have already been forced away of several markets. Generally in most supermarkets that were visited, Bill & Jerry’s have their individual section of space space to market there product.

This is created by having their product marketed in a individual freezer space. In market segments where they do not have their very own shelf space, they tend to utilize a seasonal modification strategy. 2 . 5 Promo Ben & Jerry’s make use of community involvement to advertise their particular ice cream.

The corporation hosts a yearly people festival containing about 60, 000+ people. Free cones are given aside at this total annual event. Additionally , the company has guided around its facility in Vermont. This is a non-traditional promoting approach. Currently, the company does not advertise in retail documents, nor do they solicit purchasers in television set ads.

Consequently, it is difficult to quantify investment and revenue (ROI). However , being able to twice profit within five years illustrates Ben & Jerry’s ability to efficiently market and drive product sales. 2 . 6th Sales Cohen and Greenfield began taking the ice cream in pints for sale in neighborhood grocery stores in 1980. The first business followed in 1981.

The company earned countrywide exposure that year when ever Time magazine hailed their very own product while “the ideal ice cream in the world. ” Following opening it is first out-of-state franchise in Maine in 1983, Ben & Jerry’s Homemade initial went general public in a Vermont-only stock offering (to retain ownership local) in 1984. Sales that year exceeded $4 Mio. The fat-free mania in the 1990s motivated the ice-cream producer to introduce freezing yogurt country wide in 1992 and nonfat frozen yogurt in 95. Stiff competition and grow expansion in 1994 caused Ben & Jerry’s to suffer the first-ever reduction.

In 2000, Unilever attained the company for about $326 Mio. Since its acquiring Ben & Jerry’s, Unilever has not completely integrated the business into its freezer-full of United states ice cream brands. However the father or mother has strategies to boost the rand name into its global portfolio. While many Ben & Jerry’s is usually exported by Vermont, limited production from the product has begun in The european union.

Since its acquiring Ben & Jerry’s, Unilever has not fully integrated the corporation into its freezer-full of United states ice cream brands. However the parent has ideas to boost the rand name into its global portfolio. While most Ben & Jerry’s is exported from Vermont, limited production in the product has started in European countries. After a slower spell in the retail expansion, Ben & Jerry’s offers announced it will step up store openings surrounding the US.

To talk about the cost of nabbing prime selling locations, the corporation is partnering with its Vermont neighbor Green Mountain Espresso Roasters to incorporate coffee and pastries to its DETAILS SHOP menu — and hopefully lengthen sales in to times of your day when people aren’t typically eating ice cream. A great analysis of net revenue for the last 9 years shows a significant development that is a result of: A better marketplace penetration.  A reduction of cost of product sales throughout the years (operational productivity, improved revenue and marketing) Improved gross profit through the years (reflects increased efficiency) In fact , based on the above mentioned analysis, Ben & Jerry’s are capable of beat out their particular number one rivals, Dreyer’s and Nestle.

3 Recommendations Based on the results in executing a Marketing Review for Bill & Jerry’s Super-Premium Goodies, Ben & Jerry’s Your favorite ice cream is the best example of how to change a dream in a successful business venture. In fact , they have achieved the No . two player in the Super- High grade Ice Cream marketplace. Their up coming goal is always to become No . 1 . To attain their objective, Ben & Jerry’s need to address the following issues that had been identified inside the Marketing Taxation: They have to stream – collection the variety of flavours. In fact , the present offering has a tendency to confuse the customer especially presented the associated luxury asking price.

They have to increase sales inside the non goal markets simply by increased promoting as an attempt to become even more visible to consumers. Test marketing and advertising programs include tv commercials, supermarket circulars, and radio adverts. In fact , Bill & Jerry’s Ice Cream is the best illustration from the 80/20 regulation.

They attain 80% with the revenues in the target market and 20% in non target markets; however , to increase revenue and become Number 1, they will need to maximize sales in non concentrate on markets although stimulating demand in target markets. Recommendations Anonymous. Bill & Jerry’s 10-405K Report. Retrieved 12 , 28, june 2006, from http://www.benjerry.com/our company/research library/fin/1999/10k. html.

Confidential. Ben & Jerry’s 10-405K Report. Retreived December twenty-eight, 2005, from http://www.benjerry.com/our company/press_center/press/press_release. cfm. Unknown.

Packaging, Company Communications and Consumer Environment. Retrieved coming from http://www.fitvh.com/case-study

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