COMM491 Strategic Management
Ben & Jerry’s AssignmentStrategic Position
Ben & Jerry’s differentiates itself from other ice-cream companies by offering natural premium-quality ice-cream, sorbets, and other related products while promoting corporate social responsibility as well as developing innovative ways to improve the quality of life of a broad community. Its products are mainly consisted of natural and locally-produced ingredients as it is part of company policy to support family farms; the company also established the Ben & Jerry’s Foundation which donated 7.5% of its pretax profits to nonprofit organizations that are related to children, women, the homeless, and HIV-positive individuals. Market and Financial Performance
Ben & Jerry’s was a very successful company during the 1980s when its target market, the baby-boom generation, was enjoying Ben & Jerry’s premium ice-cream that is also socially- and environmentally-friendly. However, during the 1990s, their target group became more health-conscious and was growing out of consuming high-fat foods such as the premium (and superpremium) ice-cream; new labeling requirements also resulted in customers’ acknowledgement of the unhealthy content in Ben & Jerry’s ice-cream. Although Ben & Jerry’s had tried to introduce a lower-fat, lower-calorie version of its ice-cream, it was not as successful as it was in the 1980s, and its ice-cream sales were slowing. The company also faced a new competitor, Haagen-Dazs, who offered lower-priced superpremium ice-cream as well as a wider variety of flavors; Haagen-Dazs also exported its products to markets outside of the U.S. while Ben & Jerry’s had paid little attention to doing business overseas. The superpremium ice-cream market is dominated by Haagen-Dazs and Ben & Jerry’s, both holding roughly 42% market share by early 1995. Although the market growth had been sluggish during 1989 to 1993, Ben & Jerry’s market share rose 120%...
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