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    STM - Ben and Jerrys Case Study - Group 7 - Final

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    Ipshita Ghosh
    Ben and Jerry's was founded in 1977 and grew consistently at over 60% annually through the 1980s by introducing novel ice cream flavors and expanding into new markets. However, in the 1990s the company faced challenges including slowing growth as health trends emerged, high costs from direct store delivery and complex mix-in flavors, and underutilized production capacity. A recommendation was made to improve short-term operational efficiency, focus marketing spending, reduce slow-selling products, and capitalize on emerging international markets to drive renewed growth while maintaining quality and social mission.

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    STM - Ben and Jerrys Case Study - Group 7 - Final

    Uploaded by

    Ipshita Ghosh
    481 views8 pages
    Ben and Jerry's was founded in 1977 and grew consistently at over 60% annually through the 1980s by introducing novel ice cream flavors and expanding into new markets. However, in the 1990s the company faced challenges including slowing growth as health trends emerged, high costs from direct store delivery and complex mix-in flavors, and underutilized production capacity. A recommendation was made to improve short-term operational efficiency, focus marketing spending, reduce slow-selling products, and capitalize on emerging international markets to drive renewed growth while maintaining quality and social mission.

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    STM - Ben and Jerrys Case Study - Group 7 _final

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    Ben and Jerry's was founded in 1977 and grew consistently at over 60% annually through the 1980s by introducing novel ice cream flavors and expanding into new markets. However, in the 1990s the company faced challenges including slowing growth as health trends emerged, high costs from direct store delivery and complex mix-in flavors, and underutilized production capacity. A recommendation was made to improve short-term operational efficiency, focus marketing spending, reduce slow-selling products, and capitalize on emerging international markets to drive renewed growth while maintaining quality and social mission.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    481 views8 pages

    STM - Ben and Jerrys Case Study - Group 7 - Final

    Uploaded by

    Ipshita Ghosh
    Ben and Jerry's was founded in 1977 and grew consistently at over 60% annually through the 1980s by introducing novel ice cream flavors and expanding into new markets. However, in the 1990s the company faced challenges including slowing growth as health trends emerged, high costs from direct store delivery and complex mix-in flavors, and underutilized production capacity. A recommendation was made to improve short-term operational efficiency, focus marketing spending, reduce slow-selling products, and capitalize on emerging international markets to drive renewed growth while maintaining quality and social mission.

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    Future Strategy A Case Study

    Prepared by XLRI GMP Class of 2012 Section A Group 7


    Achin Kishore (G11003) Bhaskar Chatterjee (G11014) Hrishikesh Chennakesavula (G11020) Ipshita Ghosh (G11021) Venkata Kesav Kilambi (G11055) Vijay Pitchai (G11056)

    Ben and Jerrys Background


    Ben Cohen & Jerry Greenfield, high school friends started the company as a homemade ice cream shop in Dec 1977 with an investment of $12000 The shop was an immediate success and by 1980, it expanded as a company that sold through small retail outlets The company gained a reputation for the unconventional mix-in flavors The companys growth consistently averaged over 60 % annually & came mainly from entering new geographic markets with pint-sized containers By 1990, the company was selling its products in all major markets in the US, and was present in most of the super market chains and mom & pop stores, which accounted for the majority of ice cream sold in the country

    Statement of Mission
    Ben and Jerrys is dedicated to the creation and demonstration of a corporate concept of linked prosperity Deep respect for individuals inside and outside the company and for the community that they are a part of Seek new and creative ways to address three interrelated parts of their mission Product, Economic and Social

    Product Mission Make, distribute and sell the finest quality ice cream and related products in a variety of innovative flavors Economic Mission Increase shareholder value and career opportunities and financial rewards for the employees Social Mission Improve the quality of life of the broad community local, national and international

    The Ben and Jerrys Positioning


    Product Development Flavor differentiation was an essential factor in the growth of products By 1994, flavors had grown to 44 (including ice cream & frozen yogurt flavors). Considering expansion into ice cream novelties and low and non-fat ice cream alternatives Manufacturing In 1994, Ben & Jerrys 60% ice cream, Dreyers 40% ice cream. Distribution In 1994, Ben & Jerrys was available in most stores that carried super premium ice cream Marketing $6 million spending on marketing Entered into Europe and other emerging markets Finance Went public in 1984 with 73500 shares. Ben & Jerry controlled over 40% shares Never issued dividends & prefer reinvesting for future growth

    Key Issues
    Ben & Jerry s growth slowed , and its stock prices have dropped - suffering due to a trend towards healthy eating Handle operational challenges that have come from their growth and success stock outs and shortages Haagen-Dazs began aggressively attacking Ben Jerrys in a fight for market share. Lack of focus on recapturing the lost market share Mix-in flavors were costly and difficult to produce and were not priced accordingly as per the over utilization of flavors Direct store delivery added to their distribution costs Dependency on Dreyers for manufacturing 40% thus effecting their own growth plans Automated systems which could have increased their production were marred by defects. Under capacity running leading to loss of revenue The salary structure of the company was unsound - making it non lucrative for new brood of managers to join Decided to bring in an experienced CEO, someone with business acumen and an ability to see around future business development

    Analysis
    Operational Efficiency is lagging and should be of top priority

    Old methods used by Ben and Jerry Under Utilization of plant machinery Distribution channels have to be worked correctly

    Strike a balance in Product Mix


    Capture the growing yoghurt market Do away with slow moving products

    Maintain Product Quality

    Strategy Our Recommendations


    Short Term
    Focus on improvement of internal processes production planning, purchasing, inventory management Improve on the distribution process HR perspective organization needs more formalized structure Reduce the slow moving flavors and retain the better-selling ones supplement with few varieties of fat-free yogurt / ice-creams Continue with fat free yogurt which was already selling well

    Overall Strategy
    Be consistent and persevere with the companys mission Increase advertisement / marketing expenditure even for mix-ins to stay ahead of the competition Continued and Renewed focus on quality Sustained emphasis on the social mission : ensure that this is met once operations are streamlined Capitalize on emerging markets

    Thank You

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