Ben And Jerrys SWOT Factors

Ben And Jerrys SWOT FactorsBen and Jerrys is the spyglass plectrum smart set which is having the ingatheringion facility in Vermont and grocery storeing and change the ice-ointment most of the countries in the world. Ben Jerrys scrapinged making enquires around the Nipponese commercialize to start their operation in the world second largest ice mosh commercialize where the annual sales is approximately 4.5 billion USD.Even though the trade is big and it is one of the toughest commercializeplaces among the other. Here the speech and the audience some(prenominal) come a grand unpredictable and understanding them without knowing their language is to a greater extent difficult. only Haagen-Dazs bolt down already entered into the market before 10 years. Ben and jerrys is the late entrant among those fractional-dozen steer players. It is the market where the consumers where demand high quality products and as well with the more number of varieties and styles. Arg uably this is the most affluent country in the world.though Haagen-Dazss financial figures were not published, market intelligence suggested the ice cream nobleman had lacquerese sales of about $300 zillion. Haagen-Dazs had managed to capture nearly half the super allowance market in Japan. On the one hand, Haagen-Dazs would be a formidable competitor that would likely guard its market persona. On the other hand, thither would be no apparent need for Ben Jerrys to school the local market about super subsidy ice cream. The market seemed to welcome the case information presents a situation report of Ben and Jerrys strengths, weakness, fortune and threats (SWOT) factor report.StrengthsEstablished successfully in the global markets in footing of USA and non USABen and Jerrys other part of their synonymous for social tariff is Caring Capitalism. Ben and jerrys gave 7.5 percent of pre-tax profits to social causes like Healing Our start earth, which protected community member s from local health risks, and Center for Better Living, which aid the homelessBen and Jerrys sell its ice cream with the chunky ingredients and catchy bladderwrack names like Cherry Garcia and Chunky MonkeyWeaknessBen and Jerrys definitely held the second largest market share (at 34 percent compared to Haagen-Dazs 44 percent) of the Ameri sack super premium market, the company had started to lose market share.Hired Perry Odak at the recommendation of one of its member at a base remuneration of $300,000 with a start date in January 1997Ben and Jerrys brand had the countrys fifth highest share of the ice cream market in terms of value, it still accounted for whole a small 3.6 percent of the marketOpportunitiesSeven- Eleven interested in bringing Ben and Jerry to Japan was that Seven-Elevens combined USA and Japan operation would work out up so important to Ben and JerryHaagen-Dazs was being sold for 250 Yen per 120 ml and seven Eleven wanted to position Ben and Jerrys at a r easonably lower price pointYamada would expect to add selected flavours of Ben and Jerrys ice cream cups to the Dominos delivery menuIn todays health conscious societies the positionation of more fat-free and healthy alternative ice cream and rimy yogurt productsThreatsBen and Jerrys was beginning to lose market share in both the total ice cream market and more importantly, the super premium marketAs the product would be exported from the United States, there would be a risk of negative exchange rate movement that could make exports to Japan no longer feasibleIce cream should be pack in personal cups and not in a 473 ml (one pint) coat that Ben and Jerrys currently packed. The principal(prenominal) fact is that small cups were the ice cream is seldom consumed as a family desert in Japan, but quite is consumed as a snack item. Customers mostly like to pass water that as an individual serving.Designing a small cups need the company to install new machines on the alive plants. The expense is more than $2 million for new equipments.Argument on General TermsBen Jerrys began making inquiries about opportunities in Japan, the second largest ice cream market in the world, with annual sales of approximately $4.5 billion. Although, the market was big, it was also daunting. Japan was known to have a highly complex distribution system, its barriers to foreign products were high and the length for shipping a frozen product from America was immense.Ben Jerrys would be a late entrant, more than 10 years behind Haagen-Dazs in gaining a foothold in the market. In addition, there were at least cardinal Nipponese ice cream manufacturers selling a super premium product.The company currently packing in a 473 ml (one pint) size but the market is for the personal cups. The principal(prenominal) fact is the ice is the favorite(a) snacks for the people in Japan. So the personal cups go out pull the market towards the brand. Ben and Jerrys have not having the machinery to make the small cups. It would require around $2 million for new equipment and Ben and Jerrys are also ready to install the machineries in the existing plant itself.But in this period of time endow of $2 million for this purpose will affect the deal further. Japanese buyers basically expect the product on the perfect specification which they need. The Japanese customers are having the capacity to demand the company to offer the products on their specification.Merits and Demerits of entering modesBen Jerrys management was interested toward an entry into Japan it was not a unafraid business plan. Entering into such a complicated market where the language and the audience everything is different. The entry will happen with the good financial screen background and the best management. The product is exporting from the Vermont so there is chance could be risk of negative exchange rate. It makes the company to face the unprofitable situation. This is the main risk factor on emergi ng the business in Japan for the Ben and Jerrys.The positive and negative factors are more in the entry of Japanese market for the company. There are lots of chances to get the distribution inside(a) the country. On that entering with the help of Seven-Eleven is the safest way to the ban and jerrys. It reserves the deep-freeze comaprtment for their product in the 7000 conventional immediately across the country.On the pair side there is also a chance to lose the popularity among the audience. The Seven-Eleven plan to place the product within the conventional stores. Where the chances are like placing its product among the other existing market leaders. It will reduce the chance to be exploring the market like the Haagen-Dazs have done. Chances to become a store brands is besides low. The deal between the Ben and Jerrys and Seven-Eleven will neer affect the any existing product in the market.On the whole of business agreement there is a major drawback in signing the agreement a nd it is the ice cream package size. Ben and jerrys package size is 473 ml but the Seven-Eleven insisted Ben and Jerry are to be packaged only in 120 ml personal cups. The main factor is that Japanese market is mainly for the personal cups. They often consume ice cream in one of their snack instead of family desert.Yamada the company proposed to Ben and Jerrys to have the full control on the sales and marketing in Japan. By giving the full sales and marketing control to Yamada will helps the Ban and Jerrys in the positive way. Because dealing in an unfamiliar market like Japan will sure difficult for the company to operate. It also cares for the company to get the instant expertise in the unfamiliar market.Yamada is already known to the market in the frozen foods and building a cooking stove for Dominos in Japanese market. By signing a statutory agreement will make the Yamada to start the marketing process. It makes the Ben and Jerrys to be the leading brand in the market. And Yam ada have already expected to add the different flavours to Ben and Jerrys ice creams and also planned to add some of its flavour to the dominos delivery menu. But so far no agreement has write which makes there is no any specific plan.Seven Eleven can make the company to start the instant operation in Japan. But apart from that it cant make any more development in the branding. Because as Seven-Eleven committed it will sells six cups per day will never generate more popularity and revenue to the company. Ben Jerrys was the new product to the Japanese market and it is not having an enough budget to run a marketing work in the Japanese market. Seven-Eleven is the only hope for the company to handle the promotional efforts. But it never committed any specific plan with the company.LogisticsBen Jerrys had long been shipping ice cream to the West Coast and to Europe in freezer containers. Shipments to Japan were feasible in delivery reliability particularly key, and, of course, co sts would have to be minimised. Logistics research indicated it would likely take at least three weeks shipping time from the plant in Vermont to the storage warehouse in Japan. The product could not be shifted to another customer nor could another customers product be shifted to Japan.