Case Analysis Ben & Jerry's

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I. INTRODUCTION
Ben and Jerry’s is an ice cream company brought into existence in 1978 in the form of a first scoop shop at a renovated gas station in Vermont. It was found by two men names Ben Cohen and Jerry Greenfield.

Company revenues increased at a high rate from under $300,000 in 1980 to almost $10 million in 1985 to $78 million in 1990 and to nearly $150 million in 1994. Growing with time, Ben and Jerry’s came up with an ongoing stream of exotic flavors, opening additional scoop shops and adding a frozen yogurt line. Going into 1990’s Ben and Jerry’s brand was available in most major U.S. markets and was stocked in a sizable fraction of the supermarket and retail outlets. By 1994, Ben and Jerry’s were open in all 50 states and the company was making 29 flavors in pint and 45 flavors in bulk. It had 4 licensed shops in Canada, 3 in Russia and 10 in Israel. Ben and Jerry’s became market leader in gourmet or super premium ice cream segment by mid-1994.Its product line included super premium ice creams, frozen yogurt and novelties. Then came Peace Pops and Brownie bars. In 1994 it introduced ‘smooth, no chunks’ line to broaden its ability to satisfy consumer tastes.

Their business concept was to make best and affordable to all ice cream. But price for this ice cream was high than a regular brand. Its home country is Vermont which is rich in dairy products. Thus it got the ingredients of high quality.

II. EXTERNAL FACTORS

a) Economic Factors:

During the 1990’s, rivalry among competing frozen dairy dessert brands was based upon ingredients, taste, flavor selection and variety, distribution capability, retail price and brand image/ reputation. The market was fragmented with several hundred local and regional companies and a few national level competitors. Ben and Jerry’s major competitors included Haagen- Dazs, Healthy Choice, TCBY, Baskin Robbins, Breyers, Colombo, Dreyer’s/ Edy’s and Kemp. In mid-1994, Ben & Jerry’s became the market...
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