Ben And Jerry's Case Analysis Essay

1686 Words7 Pages
Ben & Jerry's Case Study Company History 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…show more content…
As a result, Ben and Jerry's developed the "Statement of Mission", which was a culmination of three distinct parts: Product Mission - based on quality, innovation and the "made in Vermont" stamp ; Social Mission – (the most meaningful mission) based on quality of life; and an Economic Mission - based on growth, shareholder value and care of employees. Ben and Jerry's voiced participation in "the greater good" and their "Statement of Mission" ideals triggered a boost in super-premium ice cream sales, which showed that a large portion of the public was ready to pay more for the Ben and Jerry's experience. Competitive Situation Ben and Jerry's was able to evolve in a highly competitive market; one of their strengths was their soaring growth rate at 60% a year on average. This growth surfaced from the penetration of new geographic markets by their core competencies: their social mission; the introduction of pint-sized containers; flavor differentiation (which allows the firm to dispose of the slower moving flavors and to target higher margin products); and product quality. In addition, the ice-cream market was ready for innovation; as this market generates extremely high profits compared to the other products sold in supermarkets. Ninety-four percent of families indulge in ice-cream because it was considered an "affordable luxury". The ice cream market has also had a history of adapting quickly to
Open Document