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Ben and Jerry's
Transcript of Ben and Jerry's
-Ship directly to the wholesalers >> Less cost and less traveling >> Save money and time
-Use a selective distribution intensity >> Make the distribution much faster and cheaper >> Connects with the consumers
-Minimum storage and assortment >> have to freshest ice cream
Question 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.
Question 2: Given the multichannel arrangements used to distributed Ben & Jerry’s products, do you see a potential for channel conflict developing despite Ben & Jerry’s noble intentions?
- Use a multichannel strategy for a niche product
- More stakeholders = more pressure on the profit
- Requires specialist equipment to every channel distribution, the cost is high.
-Online and mail order may not be appropriate idea for selling ice cream.
-Most of their suppliers are scattered around the world
Ben and Jerry's
Strategic alliances for profit and social good.
- A social enterprise icon.
- It is fair to its employees
- Easy on the environment
- Kind to its cows.
- A double bottom line: PROFITS and PEOPLE
1. Perceptual difference different culture views
2. Goal incompatibility
3. Resource scarcities and more stakeholder = pressure on the profit
4. Foreign government procedure
partnership in which two or more companies work together to achieve objectives that are mutually beneficial.
- Allowing each partner to concentrate on their competitive advantage.
- Learning from partners and developing competencies
- Adequate suitability of the resources.
- To reduce political risk while entering into a new market
- Revolves around sponsoring peace, music and art festivals all over the world. During these events the company draws attention to many social causes as it promotes products.
- They only use 6% of their profits to advertise.
- What to return something to the consumer and promote consumer activism.
- Relies heavily on free publicity to generate product awareness and sample promotions
The company distribution strategy is different from other super premium ice-cream companies. Ben and Jerry’s is much more selective about who sells it’s products.
Mail order and online sales
Chocolate fudge brownie ice cream
(unemployed and unskilled people)
- Frozen yogurt
- Conscious concoctions
Rainforest crunch ice cream and peace pop
(reinvest in rainforest)
Fresh Georgia peach light
(support endangered family farmers)
Wild Maine blueberry ice cream
(support native American life)
Questions 1: Do you think Ben & Jerry’s strategic alliance with wholesales, franchisees and international licensees are viable in the long run, given that Ben & Jerry expects more from its partner than simply earning points?
Advantages of multi-channels
Dis-Advantages of multi-channels
- Risk of losing control over proprietary information, especially regarding complex transactions requiring extensive coordination and intensive information sharing.
- Coordination difficulties due to informal cooperation settings and highly costly dispute resolution.
- Influence costs because of the absence of a formal hierarchy and administration within the strategic alliance
- Connection among organization – double bottom line
- Connection is enduring and substantial
So Ben and Jerry viable in the long run?
Come up with your own conscious concoction Ice-cream flavor and tell us what cause it would support.
The use of strategic alliances in the channel provides win-win solutions for all, greater control and accountability and seamless distribution.
In a bid to avoid channel conflicts, different cultural views and environment variables should be concerned when operating international markets.
Within the Multi-Channel strategy, the company and its channel members should creatively find ways to serve the consumers without conflicts.
- Chocolate fudge brownie ice cream (unemployed and unskilled people)
- Fresh Georgia peach light (support endangered family farmers)
- Rainforest crunch ice cream and peace pop (reinvest in rainforest)
- Wild Maine blueberry ice cream (support native American life)