Ben & Jerry's: External Environment Analysis

2194 words - 9 pages

An external analysis has been conducted at Ben & Jerry’s. Our company is a leader in super premium ice cream industry. This report will analyze the company’s profitability margins and what major opportunities and threats that are facing the industry today. In addition, the report will take you through a brief history of Ben & Jerry’s and general information about the ice cream industry itself. The strategic plan is to identify and suggest the optimal solution for Ben & Jerry’s to get an even stronger competitive position.

General Description of Industry
It was 1978 when Ben and Jerry decided to open up their own ice cream ...view middle of the document...

They distribute wholesale to gas stations and grocery stores as well. Beyond just ice cream, Ben and Jerry supports the mandatory GMO labeling legislature. They work with climate justice, marriage equality, peace building, fairtrade, and they are advocates for standing against the use of rBGH.
Industry Size:
As of 2015, the total sales for Ben and Jerry’s was $132 million dollars. The company has 321 different franchise units worldwide and 244 of those are U.S. owned. The franchise fee of a Ben and Jerry’s is $16,000- $37,000 dollars. (Entrepreneur) Total investment is predicted at $164,485-485,800 with a 3% royalty fee.
Market segments:
Ben and Jerry’s is owned by Unilever. The packaged ice cream and novelties such as ice cream bars and sandwiches are sold in 35 different countries, primarily through packaged products in retail outlets. They have scoop shops operating in 20 different countries. The products are produced in pints, quarts, 500 ml cups, 2.4 cups, 4.5 liter tubs, single serve cups and individual novelties. All distributed in grocery stores, supermarkets, convenience stores, scoop shops, restaurants and other venues.
Overall ‘pie’:
Ben and Jerry’s ice cream for the North American market is made is the manufacturing plants in Waterbury and St.Albans, Vermont and in Unilever facility in Henderson, Nevada. We also make it for the Canadian Market in a Unilever facility in Simcoe, Ontario. Our U.S. frozen novelties, such as ice cream bars, are manufactured at a Unilever facility in Sikeston, Missouri. In 2013, we made Ben and Jerry’s ice cream for the European market at Unilever facility in Hellendoorn, the Netherlands, and Caivano, Italy. Products for Asian and Australia were exported from our facilities in the U.S. and the Netherlands.

Industry environment analysis
Porter’s Five Forces Model:
In order to identify and assess the strength of the external competitive forces on the ice cream industry, we will be demonstrating this by using the Porter’s Five Forces Model. The five forces consist of five factors: rivalry among competing sellers, bargaining powers of customers, bargaining power of suppliers, threat of substitute products and potential threats of new entrants.
Rivalry among Competing sellers:
The two main competitors in the super premium ice cream industry are Häagen-Dazs and Breyer’s. These two competitors are advanced in distribution compared to Ben & Jerry’s; Häagen-Dazs still remains the leader. There is a significant amount of competitors for large number of local ice cream sellers as well as multinational competitors. Other competing brands that are significant threats include Blue Bell, Slowchurned, Edy’s Grand, and Blue Bunny.
The power of buyers is relatively high because buyers are consisting of large retail stores, grocery stores, restaurants, convenience stores and customers. Altogether, Ben & Jerry’s has a relatively high customer satisfaction; however, there is...

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