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Ben and Jerry's
Transcript of Ben and Jerry's
Style Decentralized Heavy focus on Employees
Employees love company Visited Ridgewood, NJ scoop shop Enthusiastic and Proud
"There is something different about sporting Ben and Jerry's merchandise on your day off rather than wearing a polo with your company's logo on it. When people see a Ben and Jerry's T-shirt they almost always do a double take. It's like they admire me because I work here."
Competitors Global Nestle: 17% Market Share Well's Dairy: 5% Market Share South Africa Ola Dairymaid Parmalat Well known throughout the country; already have established themselves as reliable companies that produce high quality products Segmentation Demographic 25-40 years-oldHigh disposable income Premium ingredients
Globally: Higher priced than Haagen Dazs
Educated Psychographic "Young at Heart"
"Free Trade"- environmentally conscious
Addressing desire to feel like individuals while also being part of something bigger Segmentation 25-40 years-old
High disposable income Premium ingredients
Globally: Higher priced than Haagen Dazs Educated "Cherry Garcia" "Karamel Sutra" "Imagine Whirled Peace" Demographic Psychographic "Young at Heart"
"Free Trade"- environmentally conscious
Addressing desire to feel like individuals while also being part of something bigger Global Flavors Product Extension Communication Adaptation "Chocolate Fudge Brownie"
"Cookie Dough" Hong Kong
Dublin Marketing Efforts Word of Mouth Fairs, Festivals, Concerts
UK: "Double Scoop Sundae Festival" Social Media Global/Individual: Facebook & Twitter
Cause Related Greyston Bakery
"Hubby Hubby" SWOT Analysis Strengths Located in 28 different countries with almost 800 scoop shops
Known for their signature flavors and chunks of ingredients
Known for their social responsibility
Donates $1.1 million to nonprofit organizations Weaknesses Internal Management Structure Problems Lack of experience and professionalism Negative Press Former CFO convicted of embezzling $300,000
Egg supplier suspected of animal abuse Opportunities South Africans are following the new health conscious trend Starting a new line of healthy ice cream and frozen yogurt Offering allergen free products gives competitve advantage Threats Competition with global brands Ola (Unilever)
Parmalat (Italian multinational dairy corporation) Increasing ingredient prices Factors of Concern in South Africa Environmental Lack of Fresh Water Supply Growth in demand
Consuming more water than available
Climate changes Destruction of natural habitat
Electricity consumption Political Mixed Legal System Roman Dutch civil law
English common law
Customary law Ranked a 4.5 on the Transparency International scale Gov. may favor certain companies or sectors
May restrict methods of transportation Relatively strong economy 26th in the world
GDP of $524 billion
18th largest stock exchange in the world Technological Marketing Communication Advancing technology Cell Phone & Internet Use 2010 50.4 million have cell phones
4.2 billion Internet users Hofstede's Model Power Distance: 49 Does not differentiate in terms of people's status, wealth, and power Individualism: 65 Due to heavy European Culture; rural tribes are opposite Masculinity: 63 Men held at higher standard; White women generally have the same rights; rural tribes are opposite Uncertainty Avoidance: 49 Willing to take risks, but also conservative; similar to US Two Scoop Shops
Durbin Flagship: Johanessburg Merchandise
Playground with spoon slide
"Make Your Own" Station
"Ben and Jerry's Buddies"
Create truly unforgettable experience Manufacturing Plant-Boksburg, SA
Ola manufacturing location
Secrets may be leaked Locations Distribution Channels Manufacturer Retailer Retailers Customers No need for MSF Segmentation Demographic Male/Female, ages 18-40
Median age is 25
Global Elite-appreciate premium ingredients Psychographic Gourmet flavors target those who wish to experience the Ben and Jerry's culture
Socially and environmentally responsible To affluent consumers fond of sweets, Ben and Jerry's is the premium ice cream brand that offers the most delicious and original flavors with the biggest chunks. Positioning Statement Marketing Adaptation Standardization Adaptation Original Pints
Organic ice cream
Low-fat ice cream New, original, and culturally adapted flavors
Swirls with large chunks replaced with healthier options
Novelty Bars Flavors "Very Berry Bafana Banana" "Bafana Bafana": fan given soccer nickname
Bananas, raspberries, strawberries, & chocolate swirl
Packaging will reflect SA colors
Cow will be kicking a soccer ball "Cherries Theron" Charlize Theron is SA idol
Maraschino cherries, black cherries, swirls of cocoa fudge "Krazie Kookie Kwaito" Kwaito: Popular club music
Rusks, crunchies, swirls of caramel and peanut butter
Dancing cow wearing oversized headphones "Cape Town Toffee Bars" Novelty flavor
Capetonians are very passionate
Low-fat chocolate bar with bits of toffee embedded in outter chocolate shell Marketing Efforts Local Festivals/Events Free samples of premium ice cream
Attract locals and create brand interest Local Fundraisers HIV/AIDS
"Ben and Jerry Bananza"-Cape Town Evoke concern and call to action Frequent Buyer Cards Buy 5 get the 6th free
Brand loyalty, repeat purchases, incentive to return Social Media Create separate Facebook and Twitter accounts
1% utilizes Twitter (target population)
Openings, flavors, and promotions “The average South African Twitter user is a happy Capetonian designer, who’s interested in Life, Love, and Music in Africa and gives a lot of attention to the brands of Vodacom, Eskom and Microsoft”
"A Profile of South Africans on Twitter"- Barend Potgieter Facebook growing rapidly from 4.5 million
Able to interact with consumers
FourSquare: "Check-In" promotions Online Contest "Create Your Own Flavor" Create
Design Winner will be showcased in all three locations
1% of flavor sales donated to charity of choice Price/Place Price Standardization Current Premium Brands: R39.95 ($4.95US)
Scoops: R44.39 ($5.50US) Served in Cape Town, Durbin, Johannesburg 3 most populated cities Addressing Concerns Environmental Destruction of natural habitat Use Unilever's factory in Boksburg Environmental Friendliness Substainable Living standards
Recycled materials for containers and packaging
Implement Unilever's Project Neutral to lower: Greenhouse gas emissions
Material and water waste Political 4.5/10 on transparency scale
Government may favor other companies
Does support innovation-Ben and Jerry's is unconventional Government must rely on private businesses and citizens to use energy efficient appliances
Use energy efficient appliances Rolling Blackouts Legal Health More health conscious Offer healthy & nutritious alternatives Living healthy lifestyles Nutrition facts Leveraging Hofstede Individualism Flagship store offers "Make your own" ice cream station and "Ben and Jerry's Buddies" room Masculinity Use males for advertisements in order to get SA consumers to be more responsive Power Distance Horizontal management structure Uncertainty Avoidance Add, test new flavors; keep top selling flavors the same.
Conclusion Stick to mission Social, environmental, and financial "Think Global, Act Local" For the Future Use sales force to get into grocery/convenience stores
Expand into other African countries Different legal standards than other countries
Learn and understand standards
Policy for competition and product rights
Conform to international standards