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Ben and Jerry's

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bridget tribe

on 8 May 2014

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Transcript of Ben and Jerry's

- Cut out the middle man >> Less gas and suppliers >> Help them promote the company going green

-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

Potential conflict:

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
Marketing strategy
- 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
Supermarket distribution
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
International licensing
Chocolate fudge brownie ice cream

(unemployed and unskilled people)
- Ice-cream
- Frozen yogurt
- Sorbets
- 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
strategic alliance
- 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?
Class activity:
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)
Full transcript