Ben and Jerry’s case study Introduction: Ben & Jerry was founded in the early 80th with Ben Cohen and Jerry Greenfield. The activity started out as a milk bar in Burlington, before spreading out to become a door-to-door business and one of the first Ice cream industries in the world. « Ice cream that thinks »: they have a true identity in making sure that producers or every single actor of their profits take in account their acts on the planet and try to become more aware of the environment in finding solutions against their potential impacts. Hence, the entire company turns around true values: Combination of human energy & money – Tries to set off society changes & improving lives of people in their societies – Sustainable development policies SWOT Strengths: * B&J is owned by a big group: Unilever * Commited in a policy of sustainable development * They give a part of profits to philanthropic causes * Social and environmental commitment * Strong growth * Present in more than 750 shops in 24 countries. * Good product quality * Chunky Monkey ice cream belongs to a top 10 list of best ice cream Weaknesses: * Very narrowed/limited consumer
target Products are weakly distributed in mass retail channel (85% for Haagen-Dazs) * Product price can be pretty high for the young customers * Sales growth decreasing Opportunity: – Increase of the sustainable development in economics and in personal’s values. More and more people are committed to the social and the responsible aspects. Global interest for social causes such as sustainable agriculture, ensure basic human rights, protection of animals… – Decrease of the private labels. – In 2008 they acquired Best foods and Slim-fast which will allow them to enter a new industry of weight loss products. Be present on very specific media to communicate to its target. (Example: Radio Nova, which is presented in the big cities in France). – The development of the “American way” around the world, can be synonym of more and more consumption of ice-cream – New emerging markets like Asia. – Global warming may promote the consumption of ice in countries that consume little. Threats: * Customers are a lot more concerned than before about fattening dessert products. * Since we are dealing with food and nutrition here, the food supply chain must be well organised to limit the risks of food contamination (especially with ice-creams) The market prices on primary resources used in the creation of B&J products can vary a lot and have impacts on profit (Milk shortage) * There is a huge competition on this market with major companies such as Nestle or Kraft Foods. * Players of this market must always have innovative products and services. (New flavours or delivery system for example). * We can think of possible laws in the near future regarding fat products such as B&J’s ice-creams. * Competitors are constantly strengthening their resources with mergers and acquisitions. * There is a constant change in consumer preferences.