Ben and Jerry's Competitors and Competitive Rivalry
In the market of premium ice cream Ben and Jerry's have a strong rival. Haagen Dazs is currently the main competitor in the concentrated market place for super premium ice cream. Substitutes, however, are available. There are other ice creams not in the super premium category. To an extent these are real competitors. However for the market Ben and Jerry's caters for, the 25-40’s with a high disposable income, their strategies should not have a great impact on Ben and Jerry's.
Dealing with other substitutes is not that simple. Expensive or not, chocolate, cakes, croissants and other post meal consumables are realistic options for the consumer as opposed to ice cream. Ferrara Rocha, a competitor, will assure you that their product is the perfect accompaniment to any meal. Ben and Jerry need to be wary of this. How the consumer makes the decision for ice cream as opposed to chocolate, super premium as opposed to premium or ordinary, and Ben and Jerry's as opposed to Haagen Dazs, is essential.
Both Ben and Jerry and Haagen Dazs shared 42% of the market share in 1996. At this point and time no other seems to have the ability or financial backing to challenge this. But new entrants in the marketplace is a possibility. However there are two problems to be overcome. The brand and distribution is the first. One has to keep in mind that these are up market consumers where by cheap alternative are not necessarily sought, for then the key element is the brand. The brand and the associated image are something currently only Haagen Dazs and Ben and Jerry's have. The emotional tie related to Ben and Jerry's and Haagen Dazs, and everything it possesses is something that will be difficult to emulate. It is a question of “I wouldn’t be caught dead eating another ice cream.” As opposed to “This is cheaper and tastes kind of like Ben and Jerry's so I will buy this from now on.”
The other barrier concerns distribution. Ben and Jerry's is a fresh ice cream and by nature difficult to transport. Consequently distribution to stores around the U.S. and globally will be expensive and require partners such as Dryers that have extensive transportation networks. Of course this is a concern for Ben and Jerry's because they are having a rival manufacturer distributing their ice cream.
Product: The company produces a physical good – Cookies/Crackers. In doing this, the company became diversified by the use of several product lines, not just one line of cookie or cracker. Also, in acquiring other businesses, the company thought it best to keep the originating firm’s brand name vice-carrying its name on the new product (i.e., Sunshine company). In thins regard, Sunshine’s Cheeze-It cracker line would not risk losing customers who are accustomed to that logo on the product or the name being used in association with the product.
Ben and Jerry’s ice cream and the amazing success the company has experience over the years could be loosely summed up as a story that began with two friends coming together with a vision to create a company that did not adhere to the traditional corporate rules of running a business. They both had certain ideals and a socially and economic responsible opinion on how a capitalist business should be run. There are a lot of similarities in the way this company is run and operated when compared to South West Airlines. They are of course offering two different things to there customers, South West providing a service where Ben and Jerry’s are providing a product but the way that they go about there daily business in the spirit of treating people a certain way, and setting out to complete a different kind of vision then say a more traditional company would is very similar.
The Russian Ice Cream market is worth $ 500 million, with Ice Fili as the market leader. The industry concentration, determined by the market share of the four largest firms in a sector is low for Russian ice-cream industry. It indicates that the industry is highly fragmented and competitive. The industry has experienced a low growth rate of ~ 3.5 % for the last two years and the other factors influencing the overall market size, like the population and the per capita consumption of ice cream have been stagnant over the years. The external factors like the shrinking frozen-foods imports market coupled with low entry barriers caused increase in the number of new entrants into the ice-cream market.
Ben and Jerry's Ice Cream is a brand name company known worldwide. With superior marketing techniques Ben and Jerry's has positioned themselves to be the leader in manufacturing premium ice cream products. They have successfully targeted their market, and there by achieved a strong customer base. The mission statement of their product line is "to make, distribute, and sell the finest quality all natural ice cream while incorporating wholesome, natural ingredients and promoting business practices that respect the earth and the environment".(1)
If La Treat maintains their current marketing tactics, their product will be unsuccessful. Although La Treat was the first “super premium” frozen dessert to enter national distribution, they were not the last. Paradise Foods positioned La Treat as being part of the premium segment in the industry. In the frozen specialty market, premium ice cream can be easily imitated and substitutable. Consumers are getting tired of the products and are always trying to find new products to switch to. As the frozen specialties market started to grow, so did La Treats competition which is causing La Treat’s product life cycle to move quicker. La Treat is currently in the maturity stage of their product life cycle. Their profit growth isn’t strong as it used to be but they are also not doing terrible either. Being at this stage, La Treats sales started to depend mostly on promotions. It’s not good for La Treat if people are buying a premium product primarily whenever there is a promotion going on. The more p...
· In 1983, the first out-of-state franchises open and Ben & Jerry’s pints begin to be sold through independent ice cream distributors.
Focusing on the well being of the customers should be the main focus of any major company, especially fast food companies. By reducing the amount of unhealthy choices for children and replacing them with nutritional foods, the nation’s youth will benefit.
One is required to estimate the economic cost of its social agenda, and evaluate the implications of takeover defence strategies. Ultimately, we have to take a position on whether Ben & Jerry's should continue to independently pursue its social agenda or accept one of the attractive takeover offers and accept a shift toward greater profit orientation.
Ben Cohen and Jerry Greenfield founded Ben & Jerry's Homemade Ice Cream in 1978. Over the years, Ben & Jerry's evolved into a socially-oriented, independent-minded industry leader in the super-premium ice cream market. The company has had a history of donating 7.5% of its pre-tax earnings to societal and community causes. Ben and Jerry further extended their generosity by offering 75,000 shares at $10.50 per share exclusively to Vermont residents, so that they may help those who first supported the company; Ben and Jerry's wanted residents to profit from their venture as well. In addition, steady growth and a widely recognized brand name helped Ben and Jerry's obtain 45 percent of the premium ice-cream market, yet the company stock price remained stagnant at $21 a share for several years.
Chocolate bars are thought of as impulse buys, which means they require no thought. This is due to how inexpensive they are. However, if an ingredient such as sugar was to rise drastically, so will the cost of the chocolate bar therefore changing the buyer's perspective on the product class.
Vitamin B-12 is essential for energy production as well as influencing the way your body uses carbohydrates.
Despite the fact that Krispy Kreme’s same-store sales are increasing every quarter, the company is not in control of the specialty foods industry. Starbucks Coffee, Krispy Kreme’s leading competitor, has been experiencing astonishing sales that surpass even Krisp...
The McDonald’s Corporation case study take a comprehensive look into the competitive market of the fast food industry. Particularly, McDonald’s and some of it greatest fast food competitors. In this analysis I will be revealing the marketing strategies of McDonald’s and other fast food companies. Identifying the trending tastes of consumers in this market, tactics used by McDonald’s competitors such as Wendy’s and Burger King to one up the marketing strategies of McDonald’s. I’ll also be assessing the strength, weaknesses, opportunities and threats of McDonald’s in this market segment. Evaluating the consumer purchase decision process and purchase type in the food industry. Lastly, I’ll explore which growth strategies I believe would make the
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