SWOT Analysis for Ben and Jerry
There are several strengths for Ben and Jerry. The company is successful and established as with sales in USA,
The company is successful and established as with sales in USA, Europe and Asia, which is identical with social responsibility and environmentalism. For example, Ben and Jerry products are packed in unbleached cardboard containers. Unbleached cardboard containers can prevent pollution when disposing the containers. How can these containers help Malaysia? It’s a fact that many people litter in Malaysia; by having unbleached cardboard containers; Ben and Jerry will be able to reduce some carbon footprint from being emitted to the atmosphere.
Next, the company sponsor Partnerships, which are Ben and Jerry outlets independently owned and operated by nonprofit organization such as Goodwill Industries. The company is involved in several other event for example saving family farms. Ben and Jerry sell its colorful named ice cream, ice cream novelties, and frozen yogurt under brand names such as Chunky Monkey, Phips Food, and Cheery Garcia (Roger Hernandez, 2010). This will definitely ensure that Ben and Jerry mission will be carried through Malaysia. In 2009, Ben and Jerry Chunky Monkey ice cream flavor was named in a top ten list of the best ice cream in London.
In 2008, Ben and Jerry had 36% of their market share while Hagen-Dads had a 44% market share (Roger Hernandez, 2010). This was achieved in spite of a premium price point. The premium price of the product was supported by a high quality image, high quality products therefore Malaysian are able to taste premium ice cream at much lower prices with different variety of flavors . Len 2007, Ben and Jerry co-founders, Ben Cohen and Jerry Greenfield were asked to Join Lance Armstrong in speaking about clean technology and alternative energy at the Ernst and Young national entrepreneur of the year awards (Roger Hernandez. 10).
Ben and Jerry execute more effectively than other ice cream company is having many avenues for customer to provide feedback. This will be a good leap for Ben and Jerry to Malaysia because Ben and Jerry have support from various ambassadors around the world, which will definitely, gives a good brand image in Malaysia therefore, easier exposure.
There are weaknesses for Ben and Jerry.
In Year 2006, former COOP Stuart Wiles was convicted of embezzling some $300,000 from the company during his tenure at Ben and Jerry, which ran from Year 2000 to Year 2004 (Roger Hernandez. , 2010).
In Year 2006, the company had to stop using Michael Foods as their egg suppliers, due to bad PR from the Humane Society, which alleged that Michael Foods treated chicken inhumanely. Ben and Jerry achieved success despite several corporate weaknesses. The most in plain sight was a lack of professionalism in its management, and no clear mission statement. The company reinvested huge amounts of property and equipment in 1994 increasing its long term debts by almost 45% in 1993. Furthermore, they increased marketing cost, selling expenses, and administrative infrastructure, which increased 28%, which is $36. Million in 1994 (Marc A.Settler. , 2002). They took out a vast amount of capital lease in their aim to automate their production to keep up with the intense competition. The company’s clear focus on multiple social responsibility issues could damage the company by costs. Apart from that, the company needs more experienced management to fuel aggressive growth in a downturn economy and change flat sales in their premium product lines.
There are several opportunities for Ben and Jerry.
In today’s health conscious societies, even though peoples like ice cream, but often they afraid that ensure too much will lead to health problem. Young ages prefer low fat ice cream to keep them slim. Elderly prefer sugar free to prevent diabetes. New flavor ice cream that special created every certain seasons for example autumn flavor, summer flavor would fulfilled humans desire. The introduction of more fat-free and healthy alternative ice cream and frozen yogurt products could attract peoples especially when the outlets is open near universities and colleges area in Malaysia. They can eat as they like and maintain healthy. In 2008, the company acquired Best Foods and Slim-Fast which allow them to penetrate a new industry of weight loss products.
In turn, they can develop into new geographic markets, for example Europe, where the weight loss management trend is taking hold (Tim Fieriness. , 2012). Same goes to Malaysia, peoples wants to maintain slim and fit body-shaped, therefore, the trend is predicted to hold longer in Malaysia. Next, provide allergen free food items, such as gluten free and peanut free is a vital opportunity. By creating ice cream that contains gluten free and peanut free, peoples that allergic to gluten and peanut can therefore ensure the ice cream. In 2009, Ben and Jerry announced plans to roll out the country’s first HOFF-free freezers (Tim Fieriness. 2012). The freezer is newly created based on environmental issue. It would not emit harmful chemicals into the atmosphere. In addition, the company could enlarge their existing products lines to compete with the “private-in-house brands” offered by supermarkets, and in developing countries. Finally, Ben and Jerry premium ice cream could be sold in South America, which it is an emerging market that has not yet been developed. There is a growing demand for premium ice cream in new markets for example Asia.
There are several threats for Ben and Jerry.
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As ages maturity increase, preferences of peoples keep changing. It also happens due to product prices, product tastes, people’s income and others. Ben and Jerry can’t assure that their target market will be forever loyal to only Ben and Jerry products. In order to have the highest profits for the outlets in Malaysia, Ben and Jerry needs to catch people’s interest by constantly creating new flavor that other ice cream brand does not have. Everyone old love new things, in fact, new and beautiful things attract people most. Therefore, the design of the shop outlets should give customers a fresh, clear view.
In Malaysia, summer maintains the whole year and this benefit Malaysia’s outlets. In fact, hot weather increases the chances of peoples consuming ice cream. Furthermore, consumers are concerned about fattening dessert products. Especially Ben and Jerry target market are accustomed to reading nutrition labels. There are many competitors of Ben and Jerry. The major competitors are Nestle (Pillsbury), Kraft Foods and Dunking Donuts (Tim Fieriness. 2012). Ben and Jerry also have competition from global food companies with similar products and any local grocery store label products.
These competitors are seems to be merging together, in order to remain marketable in this tough economy. For example, other competitors might lower down their product prices by having promotion sales once a month to clear off income or low income peoples; they compared the prices of a few products before buying them; therefore, having promotion sales or special ice cream half-price day is the best way to attract other customer than the original purchase customer. Additionally, Ben and Jerry realize animal feed prices are rising, partly because bio- fuel crops are replacing cow fodder.
Also, Ben and Jerry are stuck to use only milk produced from Ferment’s cows, to support local businesses. In turn, the high priced animal feed pushes up the cost of milk. Prices of all milk products are rising worldwide, due to what some call a “perfect storm” of low supply and high demand (Scribed. , 2010). There is a distinct possibility that there may not be enough milk to meet high demand, and it would cause global milk shortage. Milk shortage is basically a case of low supply and high demand worldwide. A bad drought in Australia dried up the grass that the country’s cows eat.
New export taxes were added on Argentina’s milk in an attempt to keep the country’s food prices under control. Also, European farmers can’t significantly increase production until a quota system is phased out eight years from now. The US and Europe always used to have spare dairy products to sell cheaply around the globe, but that’s no longer the case, says market expert Reheard Richards (Scribed. , 2010). Furthermore, Skim Milk Powder, one of the ingredients for ice cream, which is easier to transport than fresh milk, is often used in a wide range of foodstuffs, and in 2007, its price increase to record levels worldwide (Tim Fieriness. 2012). It is almost twice as high as the year before. Then retail prices went up, a butter shortage, cheese prices went up, and then wholesale prices went up, and there doesn’t seem to be an end to it. In order to solve this, Ben and Jerry may have a collaboration company in Malaysia that produces milk powder and other materials. It has an advantage of getting the fresher ingredient besides having the material with a much lower price. Malaysia has cheap labor and killed workforce that can work in factories and company.
This helps Ben and Jerry to reduce cost and increase profits. Next, to have Ben and Jerry outlets in Malaysia, there’s a procedure, the company must comply with applicable legal requirements in the jurisdiction. It is because every country has its own law and it might affect Ben and Jerry from entering Malaysia. References: Ben & Jerry. (May 2012). Contact Us. Retrieved July 7, 2012, from Web Philip Go, Alex Chic, Esther Seek & David Chain. Ben and Jerry Marketing Plan.
References: Ben & Jerry. (May 2012). Contact Us. Retrieved July 7, 2012, from Web Philip Go, Alex Chic, Esther Seek & David Chain. Ben and Jerry Marketing Plan.
Ben and Jerry Marketing Plan. Slideshows, present Yourself. Retrieved July 1, 2012, from Inc. Web. Ben and Jersey’s Soot Analysis. Scribed.