Wednesday, April 26, 2017

Ben & Jerry’s Strategy

Various market giants are looking to enter the ice-cream industry like Unilever and Nestle. As the competition is going to become more aggressive, Ben & Jerry’s could use a strong marketing and sales guy for them to be always ahead of the market. In previous times, they had the first mover advantage despite the various players in the market. To be able to compete with the present customers who are profound in the existing market, they should develop new flavors of ice cream and target them. Many regions had regional companies who target specifically the people of that region and cater their needs. So, with these new flavors, Ben & Jerry’s can cater to everyone’s taste buds and increase sales.

Since United States market was saturated and it seems that Latin America and the Asian market is going to see a boom as the population as well as per capita income is increasing. They can go for establishing the production unit there or could export their finished goods. This will give them maintain a position in an emerging market as well as they could easily attain an economy of scales. This can also help with the cost cutting in the term of the wages. Additionally, by also decreasing work force volume, they could increase the duration of their existence. Although, in the meantime, they should work out and implement a strategy to increase the market share or else they will face failure in the future. They should continue cost-cutting efforts through implementation of further waste reduction, energy conservation, and recycling programs.

As per the case, ice cream sales in supermarkets are five times more profitable compared to the other goods. Ben & Jerry’s can adopt the same strategy as Pepsi and Coke i.e., placing the products in certain strategic locations and conquering the shelf space. Here, in this case, they could buy refrigeration space and point-of-purchase or end-of-aisle displays. Additionally, it should continue franchising scoop shops to increase its market reach and withstand growing competition, both nationally and internationally.


The production process of pasteurizing, homogenizing, freezing, aerating, mixing, filling and finally, hardening the ice cream is complicated and take almost six hours. Investing in the process to reduce production time will greatly benefit the company. Other factors that affect Ben & Jerry are their lack of advertising and R&D expenditure. As they are looking to expand in emerging markets, to survive in global markets, advertising is necessary. Advertising will help people being informed about their products, increase their market share, and create brand value. Developing brand loyalty is another strategic move to strengthen competitive advantage. Ben & Jerry’s has made substantial efforts to gain a favorable reputation and image with buyers through its frequent promotional campaigns (i.e., Free Cone Day), donations to social causes (i.e, Ben & Jerry Foundation), and the use of eco-friendly products.

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