Ben & Jerry’s Marketing Audit Essay

1 decision maker SummaryAccording to the Ameri stick aside trade Association, trade is an organizational go and a set of process for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (Kerin, 2005, p.6). I perk up completed a commercialiseing audit of Ben & Jerrys Homemade, Inc. in the following categories Market and diffusion Channels, Manufacturing, Markets and Customers, Competition, Marketing, Objectives, Strategies and Tactics, the 4Ps (product, pricing, promotion, and place), and rank revenue. Based on my findings, there are several factors that leave al ace play a key role in Ben & Jerrys methamphetamine bat becoming number one in the sorbet slam dance industry, instead of being ranked, as number 2. They are as follows Streamlining the transition and names of the at operateing glass bat smacks Increase deals in the non purport marketsSell bountiful ness folderol skim in half g aloneon sizesImprove smear imageBen & Jerrys glass salve shortly offers consumers crack-premium crackpot thrash flavors that are both unique and quirky. Furthermore, some of the wackiest flavors were suggested by adults. For example, some of the flavors include, sanguine Garcia, Chunky Monkey, and embonpoint Hubby (www.benjerry.com). As a result of some of the prohibitedlandish names, it becomes uncorrect qualified for consumers acquire to figure out why an methamphetamine hydrochloride scan would be c all tolded chunky monkey, and secondly, what does the flavor in bodied of. After all, Ben & Jerrys mug customers are at the high goal of the consumer spending spectrum. Haagen-Daazs most popular grump cream flavor is simply, vanilla. Therefore, intelligence becomes a decisive trade concept to attain the number one off scratch rink. Although Ben & Jerrys has been acquired by Unilever, one of the lead-in food companies in the world, Ha agen Dazs, which has been acquired by Dreyers has still been able to pe pull inrate 42% of the highly-premium frost cream market, while Ben & Jerrys penetrated 38%. However, Ben & Jerrys feature been able to exact 100% profit faculty over the last nine socio-economic classs, while diminish the represent of gross gross gross sales.Penetrating the 20% non- hind end market would go forth revenue to uphold to climb upward by becoming more visible. Advertising can be through with(p) through supermarket circulars, tele reverie commercials, and radio announcements, and offering the super-premium grouch promotions much(prenominal) as buy one, get one free or coupons. Thus, customers and profit margins increase. Currently, Ben & Jerrys super-premium crackpot cream is sold in pint size quantities. Gallon size quantities were only sold to wareho pulmonary tuberculosis indian lodge cut ins. Selling the product to the general public in gallon sizes would allow them to infiltr ate the family segment of the ice cream industry. Understanding the consumer is a vital tool in successful trade and sales. However, careful look for and intend are necessary. Thus, a recommendation is being made for Ben & Jerrys to image the market of micro-branding a trend that is becoming more successful in the ice cream industry.Micro-branding would allow Ben & Jerrys to partner with a compatible and recognized national brand to develop an ice cream verbal expression that delivers a taste experience that is related to the national brands product (www.qffintl.com). Some of the companies that legitimately co-brand are Cool Brands International/ global Mills = Yoplait Frozen Breakfast Bars, Reeses candies and Friendlys Restaurants. Furthermore, introductory to launching this new venture, Ben & Jerrys can conduct a come after among loyal customers. Ben & Jerrys Ice Cream is the best illustration of the 80/20 rule. They pass 80% of the revenues in the fair game market and 2 0% in non target markets tho, to increase sales and become No.1, they will deprivation to increase sales in non target markets while stimulating admit in target markets.Based on corporate information (www.benjerry.com), Ben & Jerrys Ice Cream evolved when both childhood buddies, Ben Cohen and Jerry Greenfield met in a 1963 seventh grade gym class in Merrick, refreshing York. In 1977, Ben and Jerry unravel to Vermont and completed a $5 correspondence course in ice cream making. Afterward, a $12,000.00 investment was made, $4,000.00 of it borrowed, and they opened their scratch line Ben and Jerrys home-baked ice cream sop up shop in a renovated suck station in Burlington, Vermont, on May 5, 1978. The lodge has maintained a reputation for producing gourmet ice cream and set treats, as healthful as promotions that foster an image as an independent socially aware Vermont alliance. On August 3, 2000, Ben and Jerrys were acquired by Unilever, a British-Dutch food party with distribution in 100 countries. This acquisition would allow the Ben & Jerry brand ice cream to cross over into national and international markets. The ice cream was made with fresh Vermont cream and milk, and the best and biggest chunks of nuts, fruits, candies, and cookies (www.benjerry.com).Currently, Ben & Jerrys sell 18 Mio gallons of ice cream per year, and more than $200 Mio in annual sales worldwide including Europe, the Mideast, and Asia (Kerin, 2006, p.2). This makes them one of the top makers of premium ice cream, matchingrivals Nestls Haagen-Dazs, and Godiva. Some of the first flavors included French Vanilla, fold with Oreo Cookie, Maple Walnut, plainlyter Pecan, and Dastardly Mash. In order to maintain its shape as a leader in the premium ice cream industry, new flavors are constantly being marketed, as hearty as measures to determine what the ice cream consumer wants now and in the future.The corporate vision is built around three strategic goals (missions) that su pport Ben & Jerrys corporate concept of linked prosperity. These goals are 1. The product mission Become the leading distributor of freshly made note ice cream, utilizing natural ingredients that do non violate the environment. 2. The economic mission Achieve capital step-up for the corporation, the stakeholders, and the employees. 3. The social mission Be a pioneer in creating forward-looking affair practices that make a positive impact on conjunction nationally and internationally.1.2 Market and Distribution ChannelsThe troupe currently markets flavor ice cream, frozen yoghurt and sorbet in box pints, for sale in the beginning through four channels1. tiptopmarkets, and another(prenominal) foodstuff stores2. toilet facility stores3. Retail food outlets and in bulk primarily to restaurants.4. Ben & Jerrys company-owned franchised scoop shops.Ben & Jerrys Ice Cream currently distribute their products throughout the coupled States primarily through independent distributo rs targeting certain markets including New England, New York, the middle Atlantic region, Florida, Texas, the West Coast and selected other major markets, including the Midwest and Denver areas. In 1999, round 77% of the sales of the political partys packaged pints were attributed to these target markets (www.benjerry.com). Also, the ice cream products are also available in non-target markets in the United States, the United Kingdom, France, Israel, Canada, the Netherlands, Belgium, Japan, Singapore, Peru and Lebanon.1.3 ManufacturingThe company manufactures Ben & Jerrys super premium ice cream and frozen yogurt pints at its shew in Vermont. This plant manufactures Ben & Jerrys ice cream, frozen yogurt, frozen smoothies and sorbet in packaged pints,12oz. and single serve containers at its St. Albans, Vermont plant. However, in 1999, the company shifted the manufacturing of its frozen freshness line of business from a company-owned plant in Springfield, Vermont, to third party c o-packers to improve the companys competitive position, gross margins and profitability. As a result of this restructuring, the company was able to write-off assets associated with the ice cream vicissitude business, asset impairment charges of other manufacturing assets and costs associated with severance for those employees who do not accept the Companys offer of relocation. The implementation of this manufacturing restructuring program resulted in a pre-tax special charge to earnings of approximately $8.6 Mio in the fourth quarter of 1999 that was primarily non-cash. The plan was executed in 2000. Thus, outsourcing its variety business will modify the Company to introduce a wider range of novelty products in future periods.1.4 Markets and CustomersBen & Jerrys ice cream is packaged in pints, quarts, gallons, single serve containers and novelty products primarily through supermarkets, other grocery stores, convenience stores and other retail food outlets. The company markets ice cream, frozen yogurt and sorbet in 2 gallon bulk containers primarily through franchised and company-owned Ben & Jerrys scoop shops, through restaurants and food service accounts, such as stadiums, airports, cafeterias, and hotels. The ice cream is distributed through independent ice cream distributors with some exceptions, only one distributor is appointed for each rule for supermarkets. In most areas, sub-distributors are used to distribute to the smaller classes of trade. Company trucks and other distributors distribute products that are sold in Vermont and upstate New York. In the late 90s, Ben & Jerrys re figure of speeched its distribution network to enable more company control over sales and improve capability in the distribution of its products.Under the redesign, Ben & Jerrys increased direct sales calls by its own sales force to all grocery and kitchen stove convenience stores and has a network where no distributor of Ben & Jerrys products has a majority percentage of the Companys distribution. In cocksure, a interchangeable venture of the U.S. ice cream operations of Nestle and the Pillsbury Company distributes Ben & Jerrys products in specified territories the balance of domestic deliveries are distributed primarily byDreyers Grand Ice Cream. Under the redesign, no single distributor is expected to handle over 40% of Ben & Jerrys distribution, as compared with Dreyers distribution activities accounting for approximately 57% of the companys net sales in 1997 and 1998.1.5 CompetitionThe ability to create innovative marketing strategies is crucial to a companys competitiveness (Magrath, Allan, 1992, p.1). Competition in the premium ice cream industry is fierce. Initially, Nestle, Dreyers, and Blue Bell were Ben & Jerrys top three top competitors. In July of 2003, Nestle merged its operations with Dreyers, which makes Edys and Haagen-Dazs ice cream (www. day-dreamery.com). Other significant competitors are Columbo, profound Choice, and Starb ucks, which are all distributed by Dreyers. According to research, Haagen- Dazs uses several approaches to keep the status of being number one in the ice cream industry, and they are as follows a. Substantial visibility in more foreign markets than Ben & Jerrys. b. more(prenominal) shares of the markets.c. Cookies and candies are used as a part of the ingredients. In addition to competing with the number one competitor, Dreyer/Nestle, Ben & Jerrys also has to face competition from other players including Berkeley FarmsBlue BellCoolBrandsDunkinFriendly Ice CreamGiffordsSchwans(Competitors contd)Stewarts ShopsStonyfield FarmYoCream2 MarketingBen and Jerrys Ice-cream introduced themselves to the market as unusual and comical, with the hopes of appealing to the ice cream lovers sense of humor. Thus, allowing them to acquire a loyal following. However, many adultconsumers did not find their advertising funny, as a result market research revealed confusion. Although the packaging of the ice cream was amusing, patrons were often trying to figure out why a company, that wants to sell premium ice-cream, would come up with an ice cream flavor such as Chunky Monkey and Chubby Hubby. The playful packaging was viewed as being too fresh to necessitate its luxury price. In 1998, the company re-launched its entire pint line.The design of the ice cream packaging was changed to a more polished bighearted up design utilizing collages of illustrations, photography and textures. The polished grown up designs well-defined the confusion, strengthened the brand, and matched the choice of the ice cream. A superb premium look accompanied the price, and was created without forfeiting the trademark Ben & Jerrys eccentricity (www.fitch.com). Changing the packaging design helped the company to be taken more serious by the premium ice cream consumer market. To sustain their brand and marketing strategy, Ben & Jerry make sure all marketing activities are aimed at building brand equity, a unfluctuating reputation for the company, and most importantly, profitable customer relationship. The companys marketing strategy includes1. Emphasizing the high quality, natural ingredients in its products. 2. Highlighting consignment to social change through innovative promotional and advertising campaigns facilitating brand awareness through Public Relations, magazines, radio, TV coverage, and the internet. The company now distributes its ice cream products internationally in the United Kingdom, Israel, certain parts of Japan, Ireland, France, Canada, the Netherlands, Belgium, Singapore, Peru, and Lebanon. Furthermore, all of the scoop shops are franchised, which contributes significantly to the growth of the brand. 2.1 Objectives, Strategies and TacticsCompetition in the premium ice cream industry is fierce. The companys two principal competitors are the Haagen-Dazs operation of Ice Cream Partners and Dreyers/Edys, which introduced Dreamery. Other significant frozen dessert competitors are Columbo, sizeable Choice and Starbucks. Haagen-Dazs is the industry leader with 42% of the super-premium business, and No.2 Ben & Jerrys, with 38 percent (Emert, Carol, San Francisco Chronicle,p.1)however Ben and Jerry are looking at becoming No 1 and the 4Ps outline below illustrate how they want to hit that goal. 2.2 4Ps ProductThe packaged ice cream industry includes economy, regular, premium, premium plus and super premium products. superintendent premium ice cream is generally characterized by a greater richness and density than other kinds of ice cream. This higher quality ice cream generally costs more than other kinds and is commonly marketed by emphasizing quality, flavor selection, texture and brand image. Other types of ice cream are largely marketed on the basis of price (www.benjerry.com). Ben & Jerrys Homemade makes its products at facilities in Vermont. They make over 40 contrary Super-premium Ice Cream flavors (www.hoovers.com)Super-premium Fl avors rapscallion BatterButter PecanCherry GarciaChocolate Chip Cookie DoughChocolate Fudge elfChocolate TherapyChubby HubbyChunky Monkey coffee treeCoffee Heath Bar CrunchDave Matthews Brand Magic BrowniesDublin MudslideEverything But TheFudge CentralFossil FuelHalf BakedIn A CrunchKaramel SutraMartha Martha MarshmallowMint Chocolate CookieNew York Super Fudge ChunkPeanut Butter Me UpPhish Foodpreternatural CashewWichFrozen YogurtCherry Garcia (low-fat)Chocolate Fudge BrownieHalf BakedPhish FoodSuper Premium Ice Cream, Super Premium Frozen Yogurt, and more recently, Super Premium Sorbet get down become an important part of the frozen dessert industry comer $3.5 billion in annual ice cream sales (Emert, Carol, p.1) Super premium ice cream is the fastest growing segment in the ice cream industry. Sales in the low-card ice cream market skyrocketed to close to $76 Mio in January of 2005. Research shows, 66% of carbohydrate certain consumers are seeking low fat products (www.qffintl .com). In response to the take up for lower fat and lower cholesterol products, Ben & Jerrys introduced its own super premium low fat frozen yogurt and lactose-free and cholesterol-free sorbet, as well as a new line of low fat ice cream.2.3 PricingBased on information provided by Information Resources, Inc., a software and marketing information services company, the total annual U.S. sales in supermarkets at retail prices of super premium and premium plus ice cream, frozen yogurt and sorbet were approximately $572 Mio in 1999 compared with near $518 Mio in 1998. During the 2001-2003 period sales grew by 11.6% In 2004, sales were approximately $260 Mio, and 2004 sales were $272 Mio. Ben and Jerrys product is considered an affordable luxury because of the high quality and quantity of the ingredients. However, individual retailers set their own retail pricing. A blame of the variation of pricing depends on local market conditions, as illustrated in the table below.Retail/Grocery Sto reConvenience storePathmarkShopriteWaWaCVSBen & Jerry$3.89$3.79$3.99$3.69Dreyer/Haagen-Dazs$4.19$3.99$4.29$3.892.4 scoreCompetition and consumer demand are increasing in the premium ice cream industry. Because of limited shelf space within supermarkets, visibility becomes stripped-down for many ice cream manufacturers. As a result, some brands have been forced out of some markets. In most supermarkets that were visited, Ben & Jerrys have their own section of shelf space to advertise there product. This is done by having their product advertised in a separate freezer space. In markets where they do not have their own shelf space, they tend to use a seasonal adjustment strategy.2.5 PromotionBen & Jerrys use community involvement to advertise their ice cream. The company hosts a yearly folk festival which has about 50,000+ attendees. Free bevels are given forth at this annual event. In addition, the company has guided tours of its facility in Vermont. This is a non-traditional mar keting approach. Currently, the company does not advertise in retail papers, nor dothey solicit buyers in television ads. As a result, it is difficult to quantify investment and return on investment (ROI). However, being able to double profit within five years illustrates Ben & Jerrys ability to successfully market and drive sales.2.6 SalesCohen and Greenfield began packing the ice cream in pints for sale in local grocery stores in 1980. The first franchise followed in 1981. The company earned national exposure that year when Time magazine hailed their product as the best ice cream in the world. After opening its first out-of-state franchise in Maine in 1983, Ben & Jerrys Homemade first went public in a Vermont-only linage offering (to keep ownership local) in 1984. Sales that year surpassed $4 Mio. The fat-free mania of the 1990s prompted the ice-cream producer to introduce frozen yogurt nationally in 1992 and nonfat frozen yogurt in 1995. besotted competition and plant expansion in 1994 caused Ben & Jerrys to suffer its first-ever loss. In 2000, Unilever acquired the company for about $326 Mio. Since its purchase of Ben & Jerrys, Unilever has not fully integrated the company into its freezer-full of North American ice cream brands.However the parent has plans to get along the brand into its global portfolio. While most Ben & Jerrys is exported from Vermont, limited doing of the product has begun in Europe. Since its purchase of Ben & Jerrys, Unilever has not fully integrated the company into its freezer-full of North American ice cream brands. However the parent has plans to kick upstairs the brand into its global portfolio. While most Ben & Jerrys is exported from Vermont, limited deed of the product has begun in Europe. After a slow spell in its retail growth, Ben & Jerrys has announced it will step up store openings around the US. To share the cost of nabbing prime retail locations, the company is partnering with its Vermont neighbour Green Mountai n Coffee Roasters to add coffee and pastries to its SCOOP bewray menu and hopefully extend sales into times of the day when concourse arent typically eating ice cream.An analysis of net sales for the last 9 years reflects a significant growth that is a result of A better market penetration.A reduction of cost of sales throughout the years (operational efficiency, improved sales and marketing) Improved gross profit over the years (reflects increased efficiency) In fact, based on the above analysis, Ben & Jerrys are in a position to troll out their number one competitors, Dreyers and Nestle.3 RecommendationsBased on the findings in conducting a Marketing Audit for Ben & Jerrys Super-Premium Ice Cream, Ben & Jerrys Ice Cream is the best example of how to turn a dream into a successful business venture. In fact, they have achieved the No.2 player in the Super- Premium Ice Cream market. Their next goal is to become No.1. To achieve their goal, Ben & Jerrys have to address the followi ng issues that were identified in the Marketing Audit They have to stream line the variety of flavors.In fact, the current offering tends to confuse the consumer especially given the associated luxury price tag. They have to increase sales in the non target markets by increased marketing as an effort to become more visible to consumers. Sample marketing and advertising channels include television commercials, supermarket circulars, and radio advertisements. In fact, Ben & Jerrys Ice Cream is the best illustration of the 80/20 rule. They achieve 80% of the revenues in the target market and 20% in non target markets however, to increase sales and become No.1, they will need to increase sales in non target markets while stimulating demand in target markets.ReferencesAnonymous. Ben & Jerrys 10-405K Report. Retrieved December 28, 2005, from http//www.benjerry.com/our company/research library/fin/1999/10k.html. Anonymous. Ben & Jerrys 10-405K Report. Retreived December 28, 2005, from htt p//www.benjerry.com/our company/press_center/press/press_release.cfm. Anonymous. Packaging, Brand Communications and Consumer Environment. Retrieved from http//www.fitvh.com/case-studyAnonymous. (2005).USA summer ice cream scene Novelties, Co- stigmatization and Something for Everyone. Retrieved December 28, 2005 from http//www/qffintl.com/pdf/july_2005/95.cfmChevron, J, (1998). The Delphi Process Strategic Branding Methodology, (15)3, 1-2. Retrieved December 28, 2005 from http//www.jrcanda.com?art_delphi.html Emert, Carol. (1999). Dreyers enters the cold war. New Dreamery line is going cone to cone with HaagenDazs and Ben & Jerrys. Retrieved January 10, 2006, from http//www/sfgate.com/cgi-bin/article.cgiKerin, Roger, Hartley, Steven.(2005) Marketing. Eighth, Retrieved December 5, 2005 from University of Phoenix databaseMagrath, A. (1992). Six pathways to marketing innovation. line of business & Company. Resource Center. Retrieved December 10, 2005 from http//galenet.galegroup.com Murray, B. Ben & Jerrys homemade inc. Hoovers A D&B Company. Retrieved December 12, 2005, from http//www.hoovers.com