After years of improper management, Ben & Jerry’s has begun to face problems with production and distribution. A major competitor, Dreyer’s, is producing 40% of Ben & Jerry’s ice cream, which has caused an unhealthy dependency on a prime competitor. 30% of their ice cream is being shipped up to 3,000 miles away, greatly increasing their transportation costs. They have begun to receive negative publicity after switching attention away from their social responsibilities, diminishing their reputable image. Also, the rising trend of health consciousness for food in America has resulted in a slow in growth of Ben & Jerry’s ice cream sales. Current Situation:
* Ben & Jerry’s has a very strong and well known brand image, with a very loyal following * The ice cream is differentiated from its competitors, with a unique marketing position (i.e. their mix-in ice creams) * Ben & Jerry’s offer 44 different flavors of ice-cream and frozen yogurt, well above the variety offered by the competition * Ben & Jerry’s superpremium ice cream offers 1.5 to 2.5 times the flavor compared to competitors’ ice creams * The demand for superpremium ice cream is shrinking as people are becoming more health conscious * Growth of the superpremium industry slowed by 4%, while the premium industry rose by 11% * Dreyer’s manufactures and distributes 40% of Ben & Jerry’s ice cream * Ben & Jerry’s remain as an impulse-buy item, at a high cost of around $5 per pint * Currently, the west north and east north central are the largest consumers of frozen desserts in the country, while Ben & Jerry’s production is centralized to the east coast making it a huge cost to make sales on the west coast. * Ben & Jerry’s has received negative publicity damaging their brand image which is based upon promoting social responsibility Alternatives:
* Ben & Jerry’s can find new ways to efficiently...