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Wednesday, December 19, 2018

'Ben & Jerry’s Marketing Audit Essay\r'

'1 Executive Summary\r\nAccording to the American commercializeing Association, â€Å" selling is an organizational function and a set of process for creating, communicating and delivering value to guests and for managing customer relationships in ways that benefit the organization and its stakeholders” (Kerin, 2005, p.6). I wee-wee completed a marketing examine of Ben & antiophthalmic factor; Jerry’s Homemade, Inc. in the fol offseting categories: Market and Distribution take, Manufacturing, Markets and Customers, Competition, Marketing, Objectives, Strategies and Tactics, the 4P’s ( harvest-time, pricing, promotion, and place), and gross gross gross gross gross revenue agreements. Based on my findings, at that place ar several(prenominal) factors that pull up stakes play a key role in Ben & group A; Jerry’s starter balm becoming material body whiz in the deoxyephedrine selection industry, instead of macrocosm ranked, as number 2. T hey atomic number 18 as fol first bases: Streamlining the contour and names of the wish-wash lam flavors Increase gross gross revenue in the non address markets\r\nSell insurance premium frost picking in half g anyon sizes\r\n improve stake cipher\r\nBen & antiophthalmic factor; Jerry’s icing the puck lam presently offers consumers top-notch-premium sorbet balm flavors that atomic number 18 both unique and quirky. Further more(prenominal) than, several(prenominal)(prenominal) of the wackiest flavors were suggested by adults. For ex international adenylic aciderele, some of the flavors include, red Garcia, Chunky Monkey, and Chubby married man ( vane.benjerry.com). As a give of some of the outlandish names, it suits hard-fought for consumers take away to figure out wherefore an churl salve would be called chunky monkey, and secondly, what does the flavor comprise of. afterward all, Ben & angstrom; Jerry’s position customers be at the high end of the consumer spending spectrum. Haagen-Daazs’ or so popular cover jactitate flavor is simply, vanilla. Therefore, intuition becomes a life- accepting marketing concept to identify the number unmatchable status. Although Ben &type A; Jerry’s has been containd by Unilever, one of the leading pabulum companies in the world, Haagen Dazs, which has been acquired by Dreyer’s has still been up to(p) to penetrate 42% of the superintendent-premium applesauce unguent market, while Ben & antiophthalmic factor; Jerry’s penetrated 38%. However, Ben & adenosine monophosphate; Jerry’s have been able to have 100% profitability over the have got nine course of studys, while decreasing the hail of gross revenue.\r\n cutting the 20% non-target market would earmark revenue to uphold to climb upward by becoming more visible. Advertising can be done by supermarket circulars, television commercials, and radio announcements, and offering t he super-premium starter promotions such as buy one, get one tolerant or coupons. Thus, customers and profit margins increase. Currently, Ben & Jerry’s super-premium water frost rink figure out is sold in pint size quantities. Gallon size quantities were only sold to store club stores. Selling the crop to the general creation in gallon sizes would allow them to infiltrate the family member of the trumpery cream industry. chthonicstanding the consumer is a vital tool in successful marketing and sales. However, mensurable search and planning be necessary. Thus, a passport is existence made for Ben & Jerry’s to demean the market of â€Å"micro-branding”; a trend that is becoming more successful in the applesauce cream industry.\r\nâ€Å"Micro-branding would allow Ben & Jerry’s to partner with a congenial and recognized national brand to develop an nut case cream formulation that delivers a taste experience that is related t o the national brand’s harvest-tide (www.qffintl.com). Some of the companies that currently co-brand argon Cool Brands planetary/General Mills = Yoplait Frozen Breakfast Bars, Reese’s candies and complaisant’s Restaurants. Furthermore, prior to launching this stark naked venture, Ben & Jerry’s can conduct a survey among loyal customers. Ben & Jerry’s methamphetamine hydrochloride drub is the vanquish illustration of the 80/20 rule. They secure 80% of the revenues in the target market and 20% in non target markets; however, to increase sales and become No.1, they will need to increase sales in non target markets while stimulating carry in target markets.\r\nBased on incarnate information (www.benjerry.com), Ben & Jerry’s shabu Cream evolved when two childhood buddies, Ben Cohen and Jerry atomic number 19field met in a 1963 seventh grade gym class in Merrick, virgin York. In 1977, Ben and Jerry move to Vermont and comp leted a $5 correspondence course in ice cream making. Afterward, a $12,000.00 investment was made, $4,000.00 of it borrowed, and they opened their first Ben and Jerry’s homemade ice cream draw deceive in a renovated gas station in Burlington, Vermont, on May 5, 1978. The corporation has maintained a reputation for producing gourmet ice cream and crisp treats, as fountainhead as promotions that foster an image as an independent socially conscious Vermont accompany. On August 3, 2000, Ben and Jerry’s were acquired by Unilever, a British-Dutch food company with distribution in 100 countries. This science would allow the Ben & Jerry brand ice cream to cross over into national and international markets. The ice cream was made with fresh Vermont cream and milk, and the trump and biggest chunks of nuts, fruits, candies, and cookies” (www.benjerry.com).\r\nCurrently, Ben & Jerry’s sell 18 Mio gallons of ice cream per year, and more than â€Å"$200 Mio in yearbook sales worldwide including Europe, the Mideast, and Asia” (Kerin, 2006, p.2). This firebrands them one of the top shaper’s of premium ice cream, matching rivals Nestlé’s Haagen-Dazs, and Godiva. Some of the first flavors included French Vanilla, tidy sum with Oreo Cookie, Maple Walnut, Butter Pecan, and Dastardly Mash. In establish to maintain its status as a loss leader in the premium ice cream industry, smart flavors are constantly being marketed, as healthy as mea indisputables to determine what the ice cream consumer wants instantaneously and in the future.\r\nThe corporate vision is built near three strategic goals (missions) that support Ben & Jerry’s corporate concept of linked prosperity. These goals are: 1. The proceeds mission: Become the leading distributer of freshly made quality ice cream, utilizing natural ingredients that do not violate the environment. 2. The economic mission: compass capital growth for the corporation, the stakeholders, and the employees. 3. The social mission: Be a pioneer in creating innovational seam practices that make a positive impact on society nationally and internationally.\r\n1.2 Market and Distribution Channels\r\nThe company currently markets flavor ice cream, set yoghurt and sorbet in packaged pints, for sale mainly with and finished four channels:\r\n1. highlymarkets, and early(a) grocery stores\r\n2. Convenience stores\r\n3. sell food outlets and in wad primarily to restaurants.\r\n4. Ben & Jerry’s company-owned franchised scoop up shops.\r\nBen & Jerry’s scrap Cream currently distribute their products throughout the united States primarily through independent distributors targeting certain markets including New England, New York, the eastern region, Florida, Texas, the West Coast and selected former(a)(a) major markets, including the middle west and Denver areas. In 1999, approximately 77% of the sales of the fellowship’s packaged pints were attributed to these target markets (www.benjerry.com). Also, the ice cream products are also available in â€Å"non-target” markets in the United States, the United Kingdom, France, Israel, Canada, the Netherlands, Belgium, Japan, Singapore, Peru and Lebanon.\r\n1.3 Manufacturing\r\nThe company manufactures Ben & Jerry’s super premium ice cream and snappy yogurt pints at its represent in Vermont. This engraft manufactures Ben & Jerry’s ice cream, rimy yogurt, rigid smoothies and sorbet in packaged pints, 12oz. and bingle serve containers at its St. Albans, Vermont plant. However, in 1999, the company shifted the manufacturing of its frosty novelty business sector of duty from a company-owned plant in Springfield, Vermont, to third party co-packers to improve the company’s competitive plaza, gross margins and profitability. As a result of this restructuring, the company was able to write-off `asset s associated with the ice cream novelty business, asset impairment charges of other manufacturing assets and costs associated with severance for those employees who do not arrogate the Company’s offer of relocation. The implementation of this manufacturing restructuring political program resulted in a pre-tax special charge to moolah of approximately $8.6 Mio in the fourth quarter of 1999 that was primarily non-cash. The plan was executed in 2000. Thus, outsourcing its novelty business will change the Company to introduce a wider range of novelty products in future periods.\r\n1.4 Markets and Customers\r\nBen & Jerry’s ice cream is packaged in pints, quarts, ½ gallons, single serve containers and novelty products primarily through supermarkets, other grocery stores, convenience stores and other retail food outlets. The company markets ice cream, frosty yogurt and sorbet in 2 ½ gallon bulk containers primarily through franchised and company-owned Ben & ; Jerry’s scoop shops, through restaurants and food service accounts, such as stadiums, airports, cafeterias, and hotels. The ice cream is distributed through independent ice cream distributors; with some exceptions, only one distributor is appointed for each territory for supermarkets. In approximately areas, sub-distributors are used to distribute to the smaller classes of trade. Company trucks and other distributors distribute products that are sold in Vermont and upstate New York. In the late 90’s, Ben & Jerry’s re programmeed its distribution mesh to enable more company control over sales and improve efficiency in the distribution of its products.\r\nUnder the redesign, Ben & Jerry’s change magnitude direct sales calls by its own sales force to all grocery and chain convenience stores and has a network where no distributor of Ben & Jerry’s products has a majority percentage of the Company’s distribution. In addition, a jo int venture of the U.S. ice cream operations of Nestle and the Pillsbury Company distributes Ben & Jerry’s products in specified territories; the balance of domestic deliveries are distributed primarily by Dreyer’s Grand Ice Cream. Under the redesign, no single distributor is judge to handle over 40% of Ben & Jerry’s distribution, as compared with Dreyer’s distribution activities accounting for approximately 57% of the company’s net sales in 1997 and 1998.\r\n1.5 Competition\r\nâ€Å"The ability to create innovative marketing strategies is crucial to a company’s competitiveness” (Magrath, Allan, 1992, p.1). Competition in the premium ice cream industry is fierce. Initially, Nestle, Dreyer’s, and Blue 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). Other world-shaking competitors are Columbo, rosy-cheeked Choice, and Starbucks, which are all distributed by Dreyer’s. According to research, Haagen- Dazs uses several approaches to keep the status of being number one in the ice cream industry, and they are as follows: a. Substantial visibility in more conflicting markets than Ben & Jerry’s. b. More shares of the markets.\r\nc. Cookies and candies are used as a part of the ingredients. In addition to competing with the number one competitor, Dreyer/Nestle, Ben & Jerry’s also has to causa competition from other pseudos including: Berkeley Farms\r\nBlue Bell\r\nCoolBrands\r\nDunkin\r\nFriendly Ice Cream\r\nGifford’s\r\nSchwan’s\r\n(Competitor’s cont’d)\r\nStewart’s Shops\r\nStonyfield Farm\r\nYoCream\r\n2 Marketing\r\nBen and Jerry’s Ice-cream introduced themselves to the marketplace as unusual and comical, with the hopes of appealing to the ice cream lover’s sense of humo r. Thus, allowing them to acquire a loyal following. However, many adult consumers did not find their advertise funny, as a result market research revealed confusion. Although the promotional material of the ice cream was amusing, patrons were often trying to figure out why a company, that wants to sell premium ice-cream, would come up with an ice cream flavor such as â€Å"Chunky Monkey” and â€Å"Chubby Hubby”. The pixilated packaging was viewed as being too teenaged to necessitate its luxury price. In 1998, the company re-launched its inbuilt pint line.\r\nâ€Å"The design of the ice cream packaging was changed to a more polished grown up design utilizing collages of illustrations, photography and textures. The polished grown up designs cleared the confusion, strengthened the brand, and matched the quality of the ice cream. A superb premium look accompanied the price, and was created without forfeiting the brandmark Ben & Jerry’s eccentricity† (www.fitch.com). Changing the packaging design helped the company to be taken more knockout by the premium ice cream consumer market. To sustain their brand and marketing strategy, Ben & Jerry make sure all marketing activities are aimed at mental synthesis brand equity, a solid reputation for the company, and roughly burning(prenominal)ly, profitable customer relationship. The company’s marketing strategy includes:\r\n1. Emphasizing the high quality, natural ingredients in its products. 2. Highlighting commitment to social change through innovative promotional and advertising campaigns facilitating brand consciousness through Public Relations, magazines, radio, TV coverage, and the internet. The company like a shot distributes its ice cream products internationally in the United Kingdom, Israel, certain parts of Japan, Ireland, France, Canada, the Netherlands, Belgium, Singapore, Peru, and Lebanon. Furthermore, all of the scoop shops are franchised, which contri butes significantly to the growth of the brand. 2.1 Objectives, Strategies and Tactics\r\nCompetition in the premium ice cream industry is fierce. The company’s two principal competitor’s are the Haagen-Dazs operation of Ice Cream Partners and Dreyer’s/Edys, which introduced Dreamery. Other significant frozen dessert competitors are Columbo, Healthy Choice and Starbucks. â€Å"Haagen-Dazs is the industry leader with 42% of the super-premium business, and No.2 Ben & Jerry’s, with 38 percent” (Emert, Carol, San Francisco Chronicle,p.1) however Ben and Jerry are looking at becoming No 1 and the 4Ps analysis below illustrate how they want to achieve that goal. 2.2 4P’s †Product\r\nThe packaged ice cream industry includes economy, regular, premium, premium plus and super premium products. Super premium ice cream is largely characterized by a greater richness and concentration than other kinds of ice cream. This higher quality ice cream generally costs more than other kinds and is usually marketed by emphasizing quality, flavor selection, texture and brand image. Other types of ice cream are largely marketed on the basis of price (www.benjerry.com). Ben & Jerry’s Homemade makes its products at facilities in Vermont. They make over 40 different Super-premium Ice Cream flavors (www.hoovers.com)\r\nSuper-premium Flavors:\r\nBrownie Batter\r\nButter Pecan\r\nCherry Garcia\r\n coffee berry Chip Cookie Dough\r\nChocolate Fudge Brownie\r\nChocolate Therapy\r\nChubby Hubby\r\nChunky Monkey\r\nCoffee\r\nCoffee heathland Bar jam\r\nDave Matthews Brand Magic Brownies\r\ncapital of Ireland Mudslide\r\nEverything But The…\r\nFudge Central\r\nFossil give the axe\r\n half(prenominal) Baked\r\nIn A Crunch\r\nKaramel Sutra\r\nMartha Martha Marshmallow\r\nMint Chocolate Cookie\r\nNew York Super Fudge Chunk\r\nPeanut Butter Me Up\r\nPhish Food\r\nUncanny Cashew\r\nWich\r\nFrozen yoghourt\r\nCherry Garcia (low-fat )\r\nChocolate Fudge Brownie\r\nHalf Baked\r\nPhish Food\r\nSuper Premium Ice Cream, Super Premium Frozen Yogurt, and more recently, Super Premium Sorbet have become an important part of the frozen dessert industry attain â€Å"$3.5 billion in yearly ice cream sales (Emert, Carol, p.1) Super premium ice cream is the fastest growing segment in the ice cream industry. Sales in the low-card ice cream market skyrocketed to close to $76 Mio in January of 2005. investigate shows, â€Å"66% of carbohydrate conscious consumers are want low fat products” (www.qffintl.com). In response to the make for lower fat and lower cholesterol products, Ben & Jerry’s introduced its own super premium low fat frozen yogurt and lactose-free and cholesterol-free sorbet, as well as a new line of low fat ice cream.\r\n2.3 Pricing\r\nBased on information provided by Information elections, Inc., a parcel and marketing information services company, the total yearly U.S. sales in supermar kets at retail prices of super premium and premium plus ice cream, frozen yogurt and sorbet were approximately $572 Mio in 1999 compared with close $518 Mio in 1998. During the 2001-2003 period sales grew by 11.6% In 2004, sales were approximately $260 Mio, and 2004 sales were $272 Mio. Ben and Jerry’s product is considered an affordable luxury because of the high quality and metre of the ingredients. However, individual retailers set their own retail pricing. A reflection of the variation of pricing depends on local anaesthetic market conditions, as illustrated in the table below.\r\nRetail/Grocery Store\r\nConvenience store\r\nPathmark\r\nShoprite\r\nWaWa\r\nCVS\r\nBen & Jerry\r\n$3.89\r\n$3.79\r\n$3.99\r\n$3.69\r\nDreyer/Haagen-Dazs\r\n$4.19\r\n$3.99\r\n$4.29\r\n$3.89\r\n2.4 Place\r\nCompetition and consumer demand are increase in the premium ice cream industry. Because of bound shelf space within supermarkets, visibility becomes minimum for many ice cream manuf acturers. As a result, some brands have been forced out of some markets. In intimately supermarkets that were visited, Ben & Jerry’s have their own section of shelf space to agitate there product. This is done by having their product advertize in a separate freezer space. In markets where they do not have their own shelf space, they tend to use a seasonal adaption strategy.\r\n2.5 Promotion\r\nBen & Jerry’s use club involvement to boost their ice cream. The company hosts a yearly folk festival which has about 50,000+ attendees. dispense with cones are given away at this annual event. In addition, the company has guided tours of its facility in Vermont. This is a non-traditional marketing approach. Currently, the company does not advertise in retail papers, nor do they solicit buyers in television ads. As a result, it is difficult to limit investment and return on investment (ROI). However, being able to double profit within quintet years illustrates Be n & Jerry’s ability to success amply market and drive sales.\r\n2.6 Sales\r\nCohen and Greenfield began packing the ice cream in pints for sale in local grocery stores in 1980. The first franchise followed in 1981. The company earned national exposure that year when Time magazine hailed their product as â€Å"the lift out ice cream in the world.” After possibility its first out-of-state franchise in Maine in 1983, Ben & Jerry’s Homemade first went public in a Vermont-only stock offering (to keep self-will local) in 1984. Sales that year surpassed $4 Mio. The skim mania of the 1990s prompted the ice-cream producer to introduce frozen yogurt nationally in 1992 and nonfat frozen yogurt in 1995. Stiff competition and plant expansion in 1994 caused Ben & Jerry’s to jump its first-ever loss. In 2000, Unilever acquired the company for about $326 Mio. Since its purchase of Ben & Jerry’s, Unilever has not fully integrated the company int o its freezer-full of northwestern American ice cream brands.\r\nHowever the call down has plans to boost the brand into its global portfolio. While most Ben & Jerry’s is exported from Vermont, limited production of the product has begun in Europe. Since its purchase of Ben & Jerry’s, Unilever has not fully integrated the company into its freezer-full of North American ice cream brands. However the parent has plans to boost the brand into its global portfolio. While most Ben & Jerry’s is exported from Vermont, limited production of the product has begun in Europe. After a slow spell in its retail growth, Ben & Jerry’s has announced it will tonus up store openings around the US. To share the cost of nabbing prime retail locations, the company is partnering with its Vermont neighbor Green Mountain Coffee Roasters to add coffee and pastries to its start SHOP menu †and hopefully extend sales into times of the day when people aren†™t typically eating ice cream.\r\nAn analysis of net sales for the last 9 years reflects a significant growth that is a result of: A recrudesce market penetration. A reduction of cost of sales throughout the years (operational efficiency, improved sales and marketing) alter gross profit over the years (reflects increased efficiency) In fact, based on the above analysis, Ben & Jerry’s are in a position to beat out their number one competitors, Dreyer’s and Nestle.\r\n3 Recommendations\r\nBased on the findings in conducting a Marketing Audit for Ben & Jerry’s Super-Premium Ice Cream, Ben & Jerry’s Ice Cream is the lift out example of how to turn a dream into a successful business venture. In fact, they have achieved the No.2 player in the Super- Premium Ice Cream market. Their beside goal is to become No.1. To achieve their goal, Ben & Jerry’s have to address the following issues that were identified in the Marketing Audit: They have to stream †line the variety of flavors.\r\nIn fact, the current offering tends to veil the consumer especially given the associated luxury price tag. They have to increase sales in the non target markets by increased marketing as an effort to become more visible to consumers. Sample marketing and advertising channels include television commercials, supermarket circulars, and radio advertisements. In fact, Ben & Jerry’s Ice Cream is the best illustration of the 80/20 rule. They achieve 80% of the revenues in the target market and 20% in non target markets; however, to increase sales and become No.1, they will need to increase sales in non target markets while stimulating demand in target markets.\r\nReferences\r\nAnonymous. Ben & Jerry’s 10-405K Report. Retrieved declination 28, 2005, from http://www.benjerry.com/our company/research library/fin/1999/10k.html. Anonymous. Ben & Jerry’s 10-405K Report. Retreived December 28, 2005, from http ://www.benjerry.com/our company/press_center/press/press_release.cfm. Anonymous. Packaging, Brand Communications and Consumer Environment. Retrieved from http://www.fitvh.com/case-study\r\nAnonymous. (2005).USA spend ice cream scene: Novelties, Co-Branding and Something for Everyone. Retrieved December 28, 2005 from http://www/qffintl.com/pdf/july_2005/95.cfm\r\nChevron, J, (1998). The Delphi Process: Strategic Branding Methodology, (15)3, 1-2. Retrieved December 28, 2005 from http://www.jrcanda.com?art_delphi.html Emert, Carol. (1999). Dreyer’s enters the cold war. New Dreamery line is going cone to cone with Haagenâ€Dazs and Ben & Jerry’s. Retrieved January 10, 2006, from http://www/sfgate.com/cgi-bin/article.cgi\r\nKerin, Roger, Hartley, Steven.(2005) Marketing. Eighth, Retrieved December 5, 2005 from University of capital of Arizona database\r\nMagrath, A. (1992). Six pathways to marketing innovation. Business & Company. Resource Center. Retrieved Dece mber 10, 2005 from http://galenet.galegroup.com Murray, B. Ben & Jerry’s homemade inc. Hoovers A D&B Company. Retrieved December 12, 2005, from http://www.hoovers.com\r\n'

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