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Ben & Jerry's Japan
Transcript of Ben & Jerry's Japan
Smith, Kevin. Background Current Situation Entering
Japanese Market Second largest ice cream market globally
Imported ice cream are welcome.
Positive growth trends
Japan provides high profit margin. Sales stated to increase since Ben & jerry’s embraced foreign market
Vermont factory had considerable excess capacity There would be no need to educate the market about the product.
Ben & Jerry product is something new to Japan, particularly unique with its chunks
Numerous proposal to distribute its products
Tariff will be reduced to 21% in 2000 ( GATT) & Consumer Habits Problem/Issue Faced Should Ben & Jerry’s base
their growth strategy in
Non-US markets? If so, what option should they choose? Distribution through Meiji Milk, including Tokyo Disneyland
Ken Yamada and Dominos
7-Eleven with Masahiko Iida
Open a scoop shop at Tokyo Disneyland Yes Change in Market Trends Selecting the
7-Eleven Option SWOT Analysis Ben & Jerry's INTERNAL EXTERNAL EXTERNAL INTERNAL POSITIVE POSITIVE NEGATIVE NEGATIVE Haagen-Dazs vs. Freezer Placement •Immediate placement in over 7,000 C-stores throughout Japan.
•Vast awareness for the brand in the new market. Sales Volume •Dramatic increase in market share at C-stores during the 1990s.
•C-stores had 40% of the super-premium ice cream sales in Japan. Market Channnel •C-store market is strong channel for purchasing ice cream in Japan.
•High abundance and accessibility of 7-Eleven stores. •Ben & Jerry’s and 7-Eleven partnership in the United States market.
•7-Eleven U.S. is the largest retail outlet for Ben & Jerry’s home market. Current Partnerships Specifically in the Japanese Market? US market is shrinking.
Loss of market share Sales started to fall off and decline in profits. Best Options: Ben & Jerry’s was born in 1978 by two school mates in South Burlington, VT.
By the late 1980’s Ben & Jerry’s ice cream had become available in every state of the union.
Known for their unique flavors like “Cherry Garcia”, “Wavy Gravy” and “Rain Forest Crunch” and their less than traditional approach to business.
At the center of their existence is a mission consisting of 3 Interrelated parts - Social, Product and Economic missions. Starting in the 1990s, sales growth started to fall off from Ben & Jerry’s all time high sales, followed by declining sales until 1994 the company experienced their first loss.
Following several years of fledging sales overseas, Ben & Jerry’s was pondering what its next moves should be - new products or from new, non-U.S., markets.
In 1996, Ben & Jerry began developing multiple strategies for entering into the Japanese market. Distribution Channels The 7-Eleven choice for Ben & Jerry’s provides three key advantages related to distribution: Avoidance of layers between most suppliers and retailers and expectations of falling tariffs. Utilizing leading edge logistics offered by Seven-Eleven, Ben & Jerry’s can provide just in time product. Also, utilization of existing facilities in VT. Allow for control over the majority of their brand within Japan. Cost Saving Ownership of Ben & Jerry’s brand Efficiency Conclusion Ice Cream in Japan served mainly as a snack, rather than dessert.
Premium Ice Cream in Convenient Stores = 40%
Ben and Jerry’s CHUNKS are unique in the Japanese ice cream market
Affluent Country = demand for premium products = opportunity for Ben & Jerry’s Premium Ice Cream Ben & Jerry’s future growth through entry into non-US market
Entering the Japanese market and selecting the 7-Eleven option will provide Ben & Jerry’s with the resources and momentum to increase sales and ultimately profits in the years to come.