Ben & Jerry’s – Japan Case Study

1. Introduction

Ben &Jerry is a company in America dealing with ice-creams. It was first established by Ben

Cohen and Jerry Greenfield in 1978. The ice-cream is made with unique taste containing bulky

ingredients and fat content. The company became public in 1984 when Vermont stockholders

registered it with the Securities and Exchange Commission. It then began as Ben & Jerry’s

Homemade Inc. The stockholder was responsible for tracking festivals and providing ice-creams.

On the other hand, Cohen had a role in calling for meetings. The ice-cream production depended

on the nuts imported from South America rainforest. Primarily, the consumption of ice-creams

depends on the income and education of the target population. B & J sales were mostly available

in the US markets in 1994 but were facing competition from Haagen-Dazs. Therefore, B & J

experienced a low market share in the super-premium markets and the overall ice-cream market.

In 1997, the two brands were recognized internationally but Haagen-Dazs received more

domestic and international sales than B&J. Ben & Jerry’s operates in six international countries

trying to keep up with competition from Haagen-Dazs. Further, the companies main worry is to

enter the Japanese markets which seems to already have companies occupying the super-

premium markets. Not to forget, its worldwide sales are at $150 million which cannot be

compared to $300 million received by Haagen-Dazs. Therefore, the company had to seek other

alternatives like partnering with companies such as Yamada or Seven-Eleven. The management

had to meet with these companies to determine the possibility of entering the Japanese market.
Question 2: A

The central problem faced by Ben and Jerry’s include competition from other companies, dealing

with profits, and international sales. During its early operations in 1961, Ben & Jerry’s only

faced competition from Haagen-Dazs since it presented a sophisticated image. Therefore, the

company could not find shelf space in supermarkets. Meaning, other competitors come into

existence. Also, they had to reduce the costs of their imports which led to the fall of their profits.

They failed in international sales because the founder had fewer contacts. The greatest worry for

the company was venturing in the Japanese market which seems to be a hard tussle. In Japan,

there are five powerful companies offering ice-creams in the super-premium markets; therefore,

B&J needs to make a quality decision before proceeding with the plan. Since the main supplier

for its products is Dreyer, a company established in the US but has partial ownership with Swiss

food, B&J can use this opportunity to enter the Japanese market without considering the social

mission.

Question 2: B

Ben & Jerry's should enter the Japan market but consider various factors first. The company

faces the issue of multiculturism during internationalization. Also, it needs to learn how to

penetrate new markets like Japan. It is important to uphold a strategic perspective while entering

Japan. Due to its good brand recognition in various countries, Ben & Jerry can easily venture

into the market as long as there is understandability of the Japanese culture.

Question 2: C

It is better if Ben & Jerry joins Mr. Yamada instead of Seven-Eleven. This is because B & J has

not yet established its brand in Japan. In as much as Seven-Eleven can offer immediate
placement on their shelves, it will still fail to have a plan of promoting the ice-creams making it

just an ordinary brand like others. Therefore, the lack of brand equity and promotion can lead to

the downfall of B & J due to powerful brands like Haagen Dazs. Partnering with Mr. Yamada

ensures brand capital establishment and creates a recognized product name in the market.

Besides, Mr. Yamada will understand B & J brand image and packaging despite its exclusive

distribution of rights. If Yamada is given full control of the Japanese market, B&J will get an

opportunity to have instant expertise in an unfamiliar market. Also, it would not have issues with

executing an entry strategy. Yamada presents a lot of efforts that can help B&J escalate in any

market. Due to Yamada's entrepreneurial spirit and its successful launch of the Domino's pizza in

Japan, B&J is assured of taking over a major segment of the market within a short time.

Therefore, Yamada still stands to be a better option for Ben & Jerry to enter the Japanese market.

Question 2: D

i. The ice-creams are majorly targeting the age cohort of Baby boomers. Therefore, Ben

& Jerry should focus on the market with more children. Apart from considering the

age cohort, there certain cultural, political, and societal beliefs that the company

needs to be conversant before entering a new market. Therefore, B & J should still

target Japan to receive more customers only that it has to adhere to their culture.

Market needs are necessary while doing business.

ii. The product strategy of Ben & Jerry should be creating brand loyalty, fostering the

image of the company, establishing creative advertisements, and aiming at economic

growth through franchising. All these will allow the company to develop even more

than the competitors while ensuring high productivity. Therefore, marketing

strategies should be adopted to help boost international sales.

products. It is essential to conduct social media advertisements to reach many people

internationally. Besides, adverts should be more appealing to consumers since ice-

creams are bought by young and older people. B & J can also encourage direct

marketing to help convince people in the local markets and expand their brand.

Therefore, advertising and direct marketing are important for B & J.

iv. The company needs to adopt competitive pricing strategies to allow for brand loyalty

both locally and internally. It is good to be updated on the prices of the competitors to

maintain and attract other customers. The prices should be below that of the

competitors but ensuring that the quality is higher. Also, value-based pricing can

work when consumers have trust in your brand. It works when the company already

familiarizes itself with the prospects of the market and the needs of consumers.

v. It is appropriate to adopt a direct distribution strategy in every market the company is

operating. The ice-cream business will only be thriving when the consumers access

the production facilities. Therefore, it is recommended that Ben & Jerry directly sell

the ice-creams to the customers. Moreover, they will get an opportunity to interact

one on one with the consumers. The interaction allows the sellers to receive their

responses based on the flavors and services.

3) The solution we suggest to the problem.

The company needs to embrace change at all levels to ensure the problem is solved. First, B & J

should have top management that can be consulted on the matters affecting the company.

Besides, an effective motivation system is necessary to boost the morale of employees. Secondly,

product diversification would be a better solution to reduce risks because it allows for the
introduction of new product lines in the market. Therefore, the company can use its strengths to

acquire opportunities. Finally, B & J should research the market needs and demand in Japan

before entering the market. The fact is that B&J can enter the Japanese market alone. The only

option is to partner with Seven-Eleven, Domino's, Mr. Yamada or other powerful companies in

Japan. While doing this, it should choose a company that can help in developing other

distribution channels and enhances a marketing plan to execute the sales. Importantly, customers

will be appropriate to control the major market.

4) Conclusion

Overall, the main issues affecting Ben & Jerry are international sales, entering the Japanese

market, and dealing with the profits. All these issues can be solved only when the company

changes its structure starting with the top management. Since multiculturism has been a problem

while doing business internationally, B&J should evaluate and understand the culture of Japan.

Therefore, it is appropriate to determine the best market for the products offered. The concerns

of the company are manageable only if they do a thorough market analysis. When entering a new

market, consumers would like to receive new flavors and satisfaction. The company may not be

able to succeed in this alone but there are options of partnering with already existing companies

in the market. In the discussion, Yamada tends to be the best fit for B&J to partner with since it

has a marketing savvy and entrepreneurial spirit. Therefore, it allows for brand recognition and

customer retainment through a regular collection of consumer response data. Japan is the second-

largest consumer of ice-creams; therefore, B&J should keep on trying until it enters the Japanese

market. Not to forget, international sales enable the establishment of brand loyalty and economic
growth through franchising. It is necessary to focus on the target market and provide high-quality

ice-creams to succeed in such markets.