1. Which way would you recommend B&J enter Japan: with Mr. Yamada or with 7-11? Support your answer with rationale.
Let’s see the advantages and disadvantages for Ben and Jerry’s to enter the Japanese market with Mr. Yamada or with 7-Eleven Japan;
Entering Japanese market with Mr. Yamada:
Advantages: * Ken Yamada was a third generation Japanese American from Hawaii, with his excellent marketing skills and knowledge of the Japanese market and consumers he had successfully introduced Domino’s Pizza chain in Japan. * Mr. Yamada would position the brand, form and executive an entry strategy, and will take care of marketing and distribution for Ben and Jerry’s well into the future, solving some of the most important issues of the company in an unfamiliar market. * Selected flavors of Ben and Jerry’s ice cream cups would be added to Dominos delivery menu, giving more exposure to Ben and Jerry’s products.
Disadvantages: * Mr. Yamada required exclusive rights to the entire Japan market with full control of all banding and marketing of Ben and Jerry’s. This would eventually be a problem for the company, as it will have to depend on Yamada to make any decision in the Japanese market. * An immediate marketing plan or entry plan was not able from Yamada for the company to review and if even if it were able Yamada can change it, virtually eliminating any opinions from Ben and Jerry’s.
Entering Japanese market with 7-Eleven Japan:
Advantages: * 7-Eleven Japan was one of the biggest convenience store chains in Japan with over 7000 stores resulting in an immediate placement of Ben and Jerry’s ice cream in the freezer compartment of the stores. * 7-Eleven required Ben and Jerry’s to have a six month exclusivity contract only on certain flavors and the company is free to open new scoop shops and market its products.
Disadvantages: * 7-Eleven’s combined operations in US and Japan