Ben and Jerry's

2714 Words Oct 18th, 2000 11 Pages
Ben and Jerrys marketing stratgies
Ben & Jerry¡¦s was experiencing a steady growth within their sales figures from 1990 to 1993. However, In March 1994, Cost of Sales increased approximately $9.6 million or 9.5% over the same period in 1993, and the overall gross profit as a percentage of net sales decreased from 28.6% in 1993 to 26.2% in 1994. This loss might have been a result of several reasons, such as high administration and selling costs, a negative impact of inventory management, and start up costs associated with certain flavours of the new ¡§Smooth, No Chunks¡¨ ice cream line.

Ben & Jerry¡¦s selling, general and administrative expenses increased approximately 28% to $36.3 million in 1994 from $28.3 million in 1993 and increased
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With both the above barriers the key entrants may be the other ice cream manufacturers in the premium or ordinary market, notably the premium. As it is these that already have the distribution network as well as the know how. It will still take a large investment for these manufacturers to sell their image.

Internal Issues

Due to the baby boom in 1994 the target market of Ben & Jerry has declined vastly. Although Ben & Jerry still hold a large percentage of the small market share, the company needs to decide on whether this target segment is worth sticking with.

At one stage Ben & Jerry¡¦s pricing strategy worked really well, however it has become evident that demand over recent years has shifted towards lower priced products leaving pricing strategies being a big issue for the company. Until 1994 all of Ben & Jerry¡¦s promotions were gained through the company¡¦s socially conscious practices. However price wars with main competitors left the company having to pull funds off advertising campaigns to fund price discounts and store coupons.

Due to the fact that imitations for the product are being developed more rapidly, Ben & Jerry have changed their primary marketing goal to establish products that cannot be imitated but the technological developments of the company have not allowed them to launch the products within a realistic time limit. B&J¡¦s mission statement includes the need, quite rightly, for a wide variety of innovative flavours. Five years to

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