Ben jerry s marketing examine essay

one particular Executive Brief summary

According to the American Marketing Association, “marketing is usually an company function and a set of process for creating, communicating and providing value to customers and then for managing buyer relationships in ways that profit the organization as well as its stakeholders (Kerin, 2005, g. 6). I possess completed an advertising audit of Ben & Jerry’s Home made, Inc. inside the following types: Market and Distribution Programs, Manufacturing, Marketplaces and Clients, Competition, Promoting, Objectives, Tactics and Strategies, the 4P’s (product, prices, promotion, and place), and sales.

Depending on my findings, there are several factors that will play a key part in Ben & Jerry’s Ice Cream getting number one inside the ice cream sector, instead of becoming ranked, as number 2. They are as follows: Improvement the variety and names of the ice cream flavors Increase revenue in the no target market segments

Sell premium ice cream in half gallon sizes

Increase brand picture

Ben & Jerry’s goodies currently offers consumers Super-premium ice cream tastes that are equally unique and quirky.

Furthermore, a number of the wackiest flavors were suggested by adults. For example , a number of the flavors consist of, Cherry Garcia, Chunky Goof, and Chubby Hubby (www.benjerry.com). As a result of a few of the outlandish labels, it becomes tough for customers have to understand why an ice cream would be known as chunky goof, and second of all, what does the flavour consist of. In fact, Ben & Jerry’s target customers have reached the high-end of the buyer spending variety. Haagen-Daazs’ the majority of popular ice cream flavor is just, vanilla. Consequently , perception turns into a vital advertising concept to get the number onestatus. Although Bill & Jerry’s has been attained by Unilever, one of the leading meals companies on the globe, Haagen Dazs, which has been acquired by Dreyer’s has continue to been able to penetrate 42% of the super-premium ice cream marketplace, while Ben & Jerry’s penetrated 38%. However , Bill & Jerry’s have been capable to have fully profitability during the last nine years, while lowering the cost of product sales.

Penetrating the 20% non-target market will allow revenue to stay to rise upward simply by becoming more noticeable. Advertising is possible through superstore circulars, tv commercials, and radio press releases, and supplying the super-premium ice offers such as get one, get one free or coupon codes. Thus, buyers and income increase. Currently, Ben & Jerry’s super-premium ice cream is sold in pint size volumes. Gallon size quantities had been only sold to warehouse golf club stores. Providing the product towards the general public in gallon sizes would allow those to infiltrate the family portion of the ice cream industry. Understanding the consumer is known as a vital device in powerful marketing and product sales. However , mindful research and planning are necessary. Thus, a recommendation is being made for Bill & Jerry’s to enter the marketplace of “micro-branding; a craze that is becoming more successful inside the ice cream sector.

“Micro-branding will allow Ben & Jerry’s to partner with a compatible and recognized countrywide brand to develop an ice cream formulation that delivers a taste experience that is related to the countrywide brand’s product (www.qffintl.com). A number of the companies that currently co-brand are Great Brands International/General Mills = Yoplait Freezing Breakfast Bars, Reese’s goodies and Friendly’s Restaurants. Furthermore, prior to introducing this new opportunity, Ben & Jerry’s can conduct a survey amongst loyal consumers. Ben & Jerry’s Ice Cream is the best representation of the 80/20 rule. That they achieve 80 percent of the income in the target market and 20% in non target markets; however , to enhance sales and be No . you, they will have to increase revenue in not target market segments while revitalizing demand in target marketplaces.

Based on company information (www.benjerry.com), Ben & Jerry’s Goodies evolved once two childhood buddies, Bill Cohen and Jerry Greenfield met within a 1963 seventh grade fitness center class in Merrick, New york city. In 1977, Ben and Jerry go on to Vermont and completed a $5 communication course in ice cream making. Afterward, a $12, 500. 00 purchase was made, $4, 000. 00 of it obtained, and they opened up their initial Ben and Jerry’s handmade ice cream details shop in a renovated gas station in Burlington, Vermont, on May five, 1978. The corporation has preserved a standing for making gourmet ice cream and iced treats, and also promotions that foster a picture as persistent socially mindful Vermont firm. On September 3, 2000, Ben and Jerry’s were acquired by Unilever, a British-Dutch foodstuff company with distribution in 100 countries. This acquisition would allow the Ben & Jerry manufacturer ice cream to cross over in to national and international marketplaces. The ice cream was made with fresh Vermont cream and milk, as well as the best and biggest portions of peanuts, fruits, sweets, and cookies (www.benjerry.com).

At the moment, Ben & Jerry’s offer 18 Mio gallons of ice cream per year, plus more than “$200 Mio in annual revenue worldwide which includes Europe, the Mideast, and Asia (Kerin, 2006, g. 2). Can make them among the top maker’s of high quality ice cream, matchingrivals Nestle’s Haagen-Dazs, and Godiva. Some of the first flavors included French Vanilla, Mint with Oreo Biscuit, Maple Walnut, Butter Pecan, and Cowardly[a]: craven; pusillanimous Mash. To be able to maintain its position as a leader in the high quality ice cream sector, new flavours are constantly being promoted, as well as measures to determine the actual ice cream client wants at this point and in the near future.

The corporate eye-sight is built around three strategic goals (missions) that support Bill & Jerry’s corporate idea of linked success. These desired goals are: 1 . The product mission: Become the leading distributor of freshly built quality ice cream, utilizing 100 % natural ingredients that do certainly not violate the surroundings. 2 . The economic quest: Achieve capital growth intended for the corporation, the stakeholders, as well as the employees. three or more. The sociable mission: Be a pioneer in creating progressive business procedures that make an optimistic impact on contemporary society nationally and internationally.

1 . 2 Industry and Syndication Channels

The business currently market segments flavor goodies, frozen yogurt and iceberg in packaged pints, available primarily through four programs:

1 . Grocery stores, and other supermarkets

installment payments on your Convenience stores

3. Retail food outlets and in bulk primarily to restaurants.

4. Ben & Jerry’s company-owned franchised scoop outlets.

Ben & Jerry’s Ice Cream currently distribute their products over the United States generally through 3rd party distributors aimed towards certain marketplaces including New England, New York, the Mid-Atlantic region, Florida, Texas, the West Coast and picked other major markets, including the Midwest and Denver areas. In 1999, approximately 77% of the sales from the Company’s packed pints had been attributed to these target markets (www.benjerry.com). Likewise, the ice cream products are also made of ” nontarget  market segments in the United States, the United Kingdom, France, His home country of israel, Canada, holland, Belgium, The japanese, Singapore, Peru and Lebanon.

1 . a few Manufacturing

The corporation manufactures Ben & Jerry’s super superior ice cream and frozen yogurt pints in its plant in Vermont. This kind of plant companies Ben & Jerry’s goodies, frozen yogurt, frozen smoothies and banquise in manufactured pints, 12oz. and one serve storage containers at its St . Albans, Vermont plant. Yet , in 1999, the organization shifted the manufacturing of its iced novelty occupation from a company-owned plant in Springfield, Vermont, to 3rd party co-packers to improve the company’s competitive position, gross margins and profitability. As a result of this kind of restructuring, the business was able to write-off `assets associated with the ice cream uniqueness business, asset impairment charges of other manufacturing resources and expenses associated with severance for all those employees who do not recognize the Company’s offer of new house purchase. The execution of this manufacturing restructuring software resulted in a pre-tax special charge to earnings of around $8. six Mio inside the fourth quarter of 99 that was primarily non-cash. The plan was executed in 2000. Hence, outsourcing their novelty business will permit the Company to introduce a wider variety of novelty items in future durations.

1 . 5 Markets and Customers

Ben & Jerry’s ice cream boxed in pints, quarts, gallons, sole serve storage containers and originality products mostly through supermarkets, other food markets, convenience stores and also other retail food outlets. The business markets goodies, frozen yogurt and sorbet in a couple of gallon bulk storage units primarily through franchised and company-owned Bill & Jerry’s scoop outlets, through eating places and food service accounts, such as stadiums, airports, cafeterias, and hotels. The ice cream is given away through self-employed ice cream marketers; with some conditions, only one distributor is hired for each terrain for supermarkets. In most areas, sub-distributors prefer distribute towards the smaller classes of trade. Company trucks and other marketers distribute goods that are bought from Vermont and upstate Nyc. In the late 90’s, Ben & Jerry’s redesigned its syndication network to enable more company control over sales and boost efficiency inside the distribution of its products.

Under the redesign, Bill & Jerry’s increased direct selling calls simply by its own salesforce to all grocery and cycle convenience stores and has a network where zero distributor of Ben & Jerry’s products has a the greater part percentage from the Company’s division. In addition , a joint venture from the U. T. ice cream procedures of Nestle and the Pillsbury Company directs Ben & Jerry’s products in specific territories; the balance of domestic deliveries will be distributed mainly byDreyer’s Grand Ice Cream. Under the redesign, no single distributor is usually expected to manage over 40% of Bill & Jerry’s distribution, as compared with Dreyer’s distribution actions accounting for approximately 57% with the company’s net sales in 1997 and 1998.

1 ) 5 Competition

“The capability to create ground breaking marketing strategies is essential to a business competitiveness (Magrath, Allan, 1992, p. 1). Competition in the premium goodies industry is definitely fierce. In the beginning, Nestle, Dreyer’s, and Green Bell were Ben & Jerry’s top three top competitors. In July of 2003, Nestle merged its operations with Dreyer’s, which makes Edy’s and Haagen-Dazs ice cream (www.dreamery.com). Different significant competitors are Columbo, Healthy Decision, and Starbucks, which are most distributed by Dreyer’s. According to research, Haagen- Dazs uses a lot of approaches to keep your status penalized number one in the ice cream industry, and they are as follows: a. Significant visibility in more foreign market segments than Bill & Jerry’s. b. More shares in the markets.

c. Cookies and candies are being used as a part of the ingredients. In addition to competing while using number one competitor, Dreyer/Nestle, Ben & Jerry’s also has to manage competition from other players which include: Berkeley Facilities

Blue Bell

CoolBrands

Dunkin

Friendly Ice Cream

Gifford’s

Schwan’s

(Competitor’s cont’d)

Stewart’s Shops

Stonyfield Farm

YoCream

2 Advertising

Bill and Jerry’s Ice-cream introduced themselves to the marketplace since unusual and comical, together with the hopes of appealing to the ice cream second half’s sense of humor. Thus, allowing them to acquire a loyal following. However , various adultconsumers would not find their particular advertising funny, as a result researching the market revealed distress. Although the product packaging of the ice cream was humorous, patrons had been often trying to puzzle out why a firm, that desires to sell high grade ice-cream, would come up with a great ice cream flavour such as “Chunky Monkey and “Chubby Hubby. The playful packaging was viewed as staying too teen to necessitate its extravagance price. Over 10 years ago, the company re-launched its entire pint line.

“The design of the ice cream packaging was changed to a more polished developed design using collages of illustrations, digital photography and designs. The lustrous grown up designs cleared the confusion, heightened the brand, and matched the caliber of the ice cream. A superb high quality look supported the price, and was created devoid of forfeiting the trademark Bill & Jerry’s eccentricity (www.fitch.com). Changing their packaging design helped the company to be taken more serious by the premium your favorite ice cream consumer market. To preserve their manufacturer and web marketing strategy, Ben & Jerry ensure all promoting activities will be aimed at building brand fairness, a solid standing for the corporation, and most important, profitable client relationship. The company’s marketing strategy comes with:

1 . Focusing the high quality, 100 % natural ingredients in its products. 2 . Highlighting commitment to social modify through innovative promotional and advertising campaigns facilitating brand awareness through Pr, magazines, car radio, TV insurance, and the net. The company right now distributes their ice cream products internationally in britain, Israel, specific parts of Japan, Ireland, England, Canada, the Netherlands, Belgium, Singapore, Peru, and Lebanon. Furthermore, all of the scoop shops are franchised, which will contributes substantially to the regarding the brand. 2 . 1 Goals, Strategies and Tactics

Competition in the superior ice cream market is fierce. The company’s two principal competitor’s are the Haagen-Dazs operation of yummy ice cream Partners and Dreyer’s/Edys, which introduced Dreamery. Other significant frozen sweet competitors happen to be Columbo, Healthier Choice and Starbucks. “Haagen-Dazs is the sector leader with 42% in the super-premium organization, and No. a couple of Ben & Jerry’s, with 38 percent (Emert, Carol, San Francisco Explain, p. 1)however Ben and Jerry will be looking at becoming Simply no 1 plus the 4Ps examination below demonstrate how they wish to achieve that target. 2 . a couple of 4P’s ” Product

The packaged goodies industry involves economy, frequent, premium, superior plus and super superior products. Extremely premium goodies is generally seen as a a greater richness and thickness than other types of ice cream. This kind of higher quality ice cream generally costs more than other types and is generally marketed by emphasizing top quality, flavor collection, texture and brand graphic. Other types of goodies are mainly marketed on such basis as price (www.benjerry.com). Ben & Jerry’s Home made makes usana products at facilities in Vermont. They make more than 40 different Super-premium Ice Cream flavors (www.hoovers.com)

Super-premium Tastes:

Brownie Mixture

Rechausser Pecan

Cherry Garcia

Peanut butter Cookie Cash

Delicious chocolate Fudge Brownie

Candy Therapy

Chubby Hubby

Big Monkey

Coffee

Coffee Heath Bar Crunch

Dork Matthews Manufacturer Magic Brownies

Dublin Mudslide

Everything But The¦

Fudge Central

Fossil Fuel

Half Baked

Within a Crunch

Karamel Sutra

Martha Martha Marshmallow

Mint Chocolate Dessert

Nyc Super Rant Chunk

Peanut Butter Me Up

Phish Food

Uncanny Cashew

Wich

Frosty Yogurt

Cherry Garcia (low-fat)

Chocolate Fudge Brownie

Half Cooked

Phish Food

Super Premium Your favorite ice cream, Super Superior Frozen Fat free yogurt, and more just lately, Super High quality Sorbet are getting to be an important portion of the frozen sweet industry attaining “$3. 5 billion in annual goodies sales (Emert, Carol, p. 1) Very premium ice cream is the quickest growing section in the goodies industry. Revenue in the low-card ice cream industry skyrocketed to shut to $76 Mio in January of 2005. Exploration shows, “66% of carbohydrate conscious people are seeking reduced fat products (www.qffintl.com). In response to the demand for lower fat and lower cholesterol goods, Ben & Jerry’s launched its own super premium low fat frozen yogurt and lactose-free and cholesterol-free sorbet, and a new distinctive line of low fat your favorite ice cream.

2 . several Pricing

Based on information offered by Information Methods, Inc., a software and promoting information solutions company, the total annual U. S. product sales in grocery stores at full prices of super high quality and high grade plus ice cream, frozen fat free yogurt and iceberg were about $572 Mio in 1999 compared with about $518 Mio more than a decade ago. During the 2001-2003 period revenue grew simply by 11. 6% In 2005, sales had been approximately $260 Mio, and 2004 sales were $272 Mio. Bill and Jerry’s product is considered an affordable luxurious because of the superior quality and quantity of the ingredients. However , individual stores set their own retail charges. A reflection in the variation of charges depends on community market circumstances, as illustrated in the desk below.

Retail/Grocery Store

Convenience store

Pathmark

Shoprite

WaWa

CVS

Ben & Jerry

$3. fifth there’s 89

$3. 79

$3. 99

$3. 69

Dreyer/Haagen-Dazs

$4. 19

$3. 99

$4. 29

$3. 89

2 . some Place

Competition and client demand will be increasing in the premium goodies industry. Due to limited rack space within just supermarkets, visibility becomes minimal for many ice cream manufacturers. Consequently, some brands have been pressured out of some marketplaces. In most grocery stores that were frequented, Ben & Jerry’s have their own part of shelf space to advertise right now there product. This is done by having their item advertised within a separate refrigerator space. In markets where they do not get their own corner space, they have a tendency to use a seasonal adjustment technique.

2 . 5 Promotion

Ben & Jerry’s use community involvement to promote their ice cream. The company owners a annually folk festival which has regarding 50, 000+ attendees. Free cones get away at this annual function. In addition , the corporation has guided tours of the facility in Vermont. This really is a nontraditional marketing procedure. Currently, the company does not advertise in selling papers, nor dothey solicit buyers in television advertising. As a result, it is difficult to quantify investment and return on investment (ROI). However , having the capacity to double earnings within five years shows Ben & Jerry’s ability to successfully industry and drive sales.

installment payments on your 6 Product sales

Cohen and Greenfield started packing the ice cream in pints for sale in local food markets in 1980. The first franchise implemented in 1981. The company gained national coverage that 12 months when Time magazine hailed their merchandise as “the best goodies in the world.  After beginning its initial out-of-state business in Maine in 1983, Ben & Jerry’s Handmade first went public in a Vermont-only inventory offering (to keep title local) in 1984. Product sales that 12 months surpassed $4 Mio. The fat-free mania of the nineties prompted the ice-cream developer to bring in frozen fat free yogurt nationally in 1992 and nonfat iced yogurt in 1995. Rigid competition and plant expansion in year 1994 caused Bill & Jerry’s to undergo its first-ever loss. In 2000, Unilever acquired the business for about $326 Mio. Since its purchase of Ben & Jerry’s, Unilever has not fully bundled the company into its freezer-full of North American goodies brands.

Nevertheless the parent offers plans to increase the brand into their global portfolio. While most Ben & Jerry’s is released from Vermont, limited creation of the item has begun in Europe. Since its purchase of Ben & Jerry’s, Unilever has not fully bundled the company into their freezer-full of North American ice cream brands. Though the parent has plans to boost the brand into its global collection. While most Bill & Jerry’s is exported from Vermont, limited production of the merchandise has begun in Europe. After a slow spell in its price tag growth, Bill & Jerry’s has announced it will step-up store opportunities around the ALL OF US. To share the expense of nabbing primary retail locations, the company is definitely partnering using its Vermont neighbour Green Mountain Coffee Roasters to add espresso and pastries to it is SCOOP STORE menu ” and with any luck , extend revenue into times during the the day when folks aren’t typically eating goodies.

An evaluation of net sales the past 9 years reflects a substantial growth this is a result of: An improved market transmission. A decrease of cost of sales throughout the years (operational efficiency, better sales and marketing) Better gross income over the years (reflects increased efficiency) In fact , based upon the above examination, Ben & Jerry’s happen to be in a position to outperform their number one competitors, Dreyer’s and Nestle.

3 Recommendations

Based on the findings in conducting an advertising Audit to get Ben & Jerry’s Super-Premium Ice Cream, Bill & Jerry’s Ice Cream is the foremost example of tips on how to turn ideal into a effective business venture. Actually they have accomplished the Number 2 player in the Super- Premium Goodies market. Their very own next aim is to become No . 1 . To achieve their very own goal, Ben & Jerry’s have to talk about the following problems that were identified in the Advertising Audit: They must stream ” line all of the flavors.

Actually the current supplying tends to confuse the consumer specifically given the associated extravagance price tag. They must increase revenue in the not target marketplaces by increased marketing since an effort for being more noticeable to customers. Sample marketing and advertising channels incorporate television ads, supermarket circulars, and the airwaves advertisements. Actually Ben & Jerry’s Your favorite ice cream is the best example of the 80/20 rule. They achieve many of these of the income in the target audience and twenty percent in no target markets; however , to boost sales and become No . you, they will need to increase product sales in not target marketplaces while stimulating demand in target markets.

References

Unknown. Ben & Jerry’s 10-405K Report. Gathered December twenty eight, 2005, by http://www.benjerry.com/our company/research library/fin/1999/10k. html. Anonymous. Ben & Jerry’s 10-405K Report. Retreived 12 , 28, 2006, from http://www.benjerry.com/our company/press_center/press/press_release. cfm. Anonymous. Packaging, Brand Sales and marketing communications and Consumer Environment. Gathered from http://www.fitvh.com/case-study

Anonymous. (2005). USA summertime ice cream scene: Novelties, Co-Branding and Something for Everyone. Retrieved Dec 28, june 2006 from http://www/qffintl.com/pdf/july_2005/95.cfm

Quarter, J, (1998). The Delphi Process: Tactical Branding Technique, (15)3, 1-2. Retrieved 12 , 28, 2006 from http://www.jrcanda.com?art_delphi.html Emert, Jean. (1999). Dreyer’s enters the cold war. New Dreamery line goes cone to cone with Haagen”Dazs and Ben & Jerry’s. Recovered January twelve, 2006, via http://www/sfgate.com/cgi-bin/article.cgi

Kerin, Roger, Hartley, Steven. (2005) Marketing. Eighth, Retrieved December 5, 2006 from School of Phoenix, az database

Magrath, A. (1992). 6 pathways to marketing innovation. Business & Company. Reference Center. Retrieved December twelve, 2005 by http://galenet.galegroup.com Murray, B. Bill & Jerry’s homemade inc. Hoovers A D&B Business. Retrieved December 12, 2006, from http://www.hoovers.com

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