Ben and Jerry’s is one of the best known super-premium ice-cream manufactures in the United States. In 1998 Ben and Jerry’s expanded its business to Japan, the second largest ice cream market in the world. It was a significant step in the company’s history and strategic orientation. In the beginning they had to face several problems which had to be solved before entering the market. This planning phase took from 1994 to 1996 followed by a test market phase in 1997. One of the mayor problems was to find a partner who could provide an adequate distribution network. Ben and Jerry’s finally decided to enter the market with the help of Seven-Eleven Japan Co. Ltd., which is a franchise convenience store chain of about 8,000 stores in Japan. This made it possible for Ben and Jerry’s to offer their ice-cream to a lot of people without building up their own distribution network. The company could also make use of the experience of Seven-Eleven who obviously can better assess the Japanese’s need and habits. In 2000 Ben and Jerry’s was acquired by Unilever, a multinational food and personal products company. This acquisition gives Ben and Jerry’s the possibility of using the existing distribution channels and reduce the dependency on other companies. Also with Unilever as its parent company the company has a new financial strength which allows them to expand marketing strategies and research and development. Based on the following analysis Ben and Jerry’s is very good positioned in the markets they are competing in. The company uses its strengths and the opportunities in order to fight against potential threats and weaknesses they face due to the lack of huge market share.
Table of Contents
1. Executive summary
2. Introduction
3. Description of the super-premium ice-cream-market
4. Business description
5. Mission Statement
6. General corporate strategies
6.1 Social company image
6.2 Customer loyalty
6.3 Product differentiation
6.4 Marketing strategy
7. Analysis of Ben & Jerry’s strategy
7.1 Five Forces Model of Competition
7.1.1 Rivalry among competing sellers
7.1.2 Suppliers
7.1.3 Buyers
7.1.4 Substitute products
7.1.5 Potential new entrants
7.2 Stakeholders
7.3 SWOT Analysis
7.4 Key success factors
8. The acquisition by Unilever and the impacts on the strategy
9. Expansion into the Japanese market
10. The Japanese market for super-premium ice-cream
11. SWOT analysis
12. Analysis of the expansion
13. Recommendation
Objectives and Themes
This paper provides a strategic analysis of Ben & Jerry's, examining the company's corporate identity, market positioning, and the competitive forces within the super-premium ice-cream industry. The primary research focus lies in evaluating how Ben & Jerry's effectively entered the Japanese market and the subsequent strategic impacts resulting from the company's acquisition by Unilever.
- Analysis of corporate mission and general business strategies.
- Evaluation of competitive forces using Porter’s Five Forces Model.
- Examination of the expansion strategy into the Japanese market and distribution challenges.
- Assessment of the corporate and strategic shift following the Unilever acquisition.
- Identification of key success factors for maintaining a competitive advantage.
Excerpt from the Book
Expansion into the Japanese market
1998 marks the introduction of Ben & Jerry's super-premium ice-cream in Japan, the second largest ice-cream market in the world. A special problem Ben & Jerry's faced were different serving sizes and tastes. In the U.S. Ben & Jerry's ice-cream is mostly sold in pint containers in supermarkets and convenience stores or in scoop-shops. In Japan Ben & Jerry's introduced single-serve selections to suit Japanese tastes and serving-size preferences and sold it through the Seven-Eleven distribution network. To use this channel the company had signed a Importation and Marketing Agreement with Seven-Eleven one of the largest food retailers in Japan. Besides these problems Ben & Jerry's faced the challenge of shipping the ice-cream to Japan. Ben & Jerry's decided to manufacture their ice-cream for the Japanese market in Vermont because they had enough excess capacity in their plants. Due to fast changes in consumer preferences in Japan it would be difficult to distribute new tastes in a reasonable period of time without loosing significant market-share. To avoid this Ben & Jerry's introduced a customer monitoring system in order to respond quickly to the changing tastes. Ben & Jerry's also faced the problem that the cups have to be labeled in Japanese therefore the cups could not be sold in another market. Another difficulty which had to been solved was the appearance of the packaging. Because of different writing in Japan Ben & Jerry's might have to establish a different strategy without funky lettering in Japan. But Ben & Jerry's decided to implement the same appearance of their ice-cream products like in the U.S. but they only named the ice-cream in English and the flavor description, nutrition facts and other explanations were given Japanese.
Summary of Chapters
Executive summary: Provides an overview of Ben & Jerry's market entry into Japan and the strategic implications of the acquisition by Unilever.
Introduction: Outlines the scope of the report, focusing on the company's corporate strategy, key success factors, and its expansion into international markets.
Description of the super-premium ice-cream-market: Defines the characteristics of the super-premium segment and identifies primary competitors like Häagen-Dazs and Dreyer’s.
Business description: Details the company’s history, manufacturing base in Vermont, and its relationship with Unilever.
Mission Statement: Outlines the three-part mission—Product, Social, and Economic—that guides the firm's business philosophy.
General corporate strategies: Discusses the focus on product differentiation through natural ingredients and social activism.
Analysis of Ben & Jerry’s strategy: Applies the Five Forces model to assess industry competitiveness and internal SWOT factors.
The acquisition by Unilever and the impacts on the strategy: Explores how the acquisition impacts Ben & Jerry's global growth and brand integrity.
Expansion into the Japanese market: Examines specific challenges of the Japanese market, including distribution, serving sizes, and packaging.
The Japanese market for super-premium ice-cream: Analyzes market share distribution and the influence of major local and global players.
SWOT analysis: Presents an internal and external assessment of the company’s status specifically within the Japanese context.
Analysis of the expansion: Reviews the performance of the Japanese operations and the role of alliances in risk management.
Recommendation: Suggests future strategic steps for leveraging Unilever's distribution channels while maintaining the Ben & Jerry's brand identity.
Keywords
Ben & Jerry's, Super-premium ice-cream, Unilever, Japanese market, Strategic analysis, Market expansion, Product differentiation, Social mission, Distribution network, Seven-Eleven, Competitive advantage, SWOT analysis, Brand identity, Corporate strategy.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the strategic analysis of Ben & Jerry's, specifically examining their entry into the Japanese market and the impact of the acquisition by Unilever on their corporate strategy.
What are the central thematic areas of the analysis?
Key themes include product differentiation, the use of a social mission as a business strategy, competitive dynamics in the super-premium ice-cream market, and global expansion challenges.
What is the primary goal of the author?
The goal is to evaluate the strengths and weaknesses of Ben & Jerry's strategy and to determine how the company maintains a competitive edge in both domestic and international markets.
Which analytical method is used in the work?
The author primarily utilizes Porter’s Five Forces Model of Competition and SWOT analysis to evaluate the company’s environment and internal resources.
What is covered in the main section of the paper?
The main sections cover the company's business model, its mission statement, the competitive landscape, the specific operational challenges faced in Japan, and the strategic shift following the Unilever acquisition.
Which keywords best characterize this work?
The paper is characterized by terms such as strategic expansion, market share, Unilever acquisition, super-premium branding, and international market entry.
How did Ben & Jerry's overcome the distribution problem in Japan?
The company formed a strategic partnership with Seven-Eleven Japan Co. Ltd., which provided an existing distribution network of 8,000 stores, bypassing the need to build their own.
What strategic change does the author recommend following the Unilever acquisition?
The author recommends that Ben & Jerry's leverage Unilever's global distribution channels to improve their value chain and increase operational efficiency in markets like Japan.
- Arbeit zitieren
- Marc Gittler (Autor:in), 2002, Ben and Jerry's - Japan Strategic Analysis and the expansion to the Japanese market, München, GRIN Verlag, https://www.grin.com/document/7543
