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Transcript of Founded 1977
Strategic Alliance for Profit and Social Good
By: Ben Cohen and Jerry Greenfield
August of 2000
- Continue on global reach
- Philanthropic work ethic:
1) Combating global warming
2) Publicizing abuses of West Africa child labour on cocoa production.
1985 - Sales reached $10 million
2010 - Sales reached $500 million
By 2008, 7.5% of pretax profits valued at $2.1 million will be donate to social and environmental issues such as charities and global warming.
- Market its products at the retail level through:
2) Grocery stores
3) Convenience stores
4) Franchised Scoop Shops
6) Mail Order
8) Licensing agreements for int'l sales
- Selective distribution: 1) Product handling
2) Social consciousness
Franchise, Mail and Online order & International License
- As of Dec 2010, 750 franchise worldwide
- 3% of each sale on royalty fee
- 4% of gross sale for advertising fee
- Online mail order ships anywhere in US
- In 29 countries and more expected to be added
1) Do you think Ben & Jerry's strategic alliances with wholesalers, franchisees, and international licensees are viable in the long run, given that Ben & Jerry's expects more from its partners than simply earning profits?
With Ben and Jerry’s ice cream company, it’s not enough to just be financially successful; they also strive to be socially successful. Ben and Jerry’s want more from their alliances than simply earning profits. They want to team up with companies that will be socially active and take into consideration the impact they will have in society and the environment when making business decisions.
Partnerships/Alliances = Stress a continuing and mutually supportive relationship
-Selective distribution strategy to terms/policies agreement for a sustainable relationship. (SEE P.270)
2) Given the multichannel arrangements used to distribute Ben & Jerry's products, do you see a potential for channel conflict develop despite Ben & Jerry's noble intentions?
- Its philanthropic actions from social marketing engagement leads to consumer loyalty base
1) Expectational Differences:
These expectations are predictions concerning the future behaviors of other channel members.
- 8 Different channels -> High probability of inaccurate forecast.
2) Goal Incompatibilities:
Each member of the marketing channel has his or her own goals. Unlike goals will repel !!
3) Do you think Ben & Jerry's existing channel structure is an ideal one, given the kinds of social objectives the company is pursuing? Explain
[Let's go back to Ben & Jerry's distribution channels]
What did they said?
Go page 595 !
Start from In August of 2000.................
Resolving Conflict with Rosenberg
1) Channel-wide committee =
Some committee members could be appointed as rep by the manufacturer, while distributors and retailers could elect their own rep to the committee.
2) Joint goal setting =
Taking into account of goals of various channel members, needs of consumer and environmental constraints will help reduce conflict.
3) A distribution executive =
This executive will try to make other executives aware of potential impact of conflict.
Rosenbloom, B. (2013). Marketing channels : a management view. Cincinnati, Ohio: South-Western/Cengage Learning.
Ice Cream Industry Profile: Asia-Pacific. (2013). Ice Cream Industry Profile: Asia-Pacific, 1-35.
Ice Cream Industry Profile: United States. (2014). Ice Cream Industry Profile: United States, 1-35.
Ice Cream Industry Profile: Europe. (2013). Ice Cream Industry Profile: Europe, 1-35.
- Gaining high penetration rate and market share in the ice cream industry so product accessibility will be crucial.
Fill in the Blank
Strategic alliances stress a continuing and mutually supportive relationship between the manufacturer and its ________.
True or False
Distribution objectives are statements describing the part that distribution is expected to play in achieving the firm's overall marketing objectives.
The following are causes of channel conflict EXCEPT:
A) Role Congruities
B) Resource Scarcities
C) Expectational Differences
D) Decision Domain Disagreements
E) Goal Incompatibilities
Ben & Jerry's