Group 9 – Section C - Ben & Jerry’s

Problem statement: Ben & Jerry’s (“BJ”) is facing two problems: Increasing competition in the
industry and increasing awareness towards healthier eating causing the growth in the super-premium
segment to slow down.

Objectives:
1. To establish itself in the competitive market
2. Focus on mission and beliefs of the company
3. Increase Profits and Consumer Base
4. Strategy Development

Criteria for evaluation of alternatives:

1. Connect to the company mission and beliefs
2. Inclination to socially-responsible actions
3. Meets customers’ preferences
4. Ability to save costs

Alternatives:
1. Expansion to Overseas Markets
Since all other competitors are actively taking steps to expand in other geographical markets,
BJ should also attempt to expand in order to open new streams of revenue.

2. Close Scoop Shops

Have always been accounted for <10% of total sales in the history of the company, therefore
closing scoop shops seems viable.

3. Stop low turnover generating products

Low demand products can be discontinued, it would help in saving variable and additional
installation costs. Instead, new products can be launched on trial basis

4. Enter into the premium segment

BJ can try to enter the premium segment as the market is shifting to lower fat content
products.

5. Marketing in the “smooth” super-premium sub-segment

The company can re-direct its marketing efforts in its frozen yogurt line and gain leadership
in the “smooth” sub-segment.
Group 9 – Section C - Ben & Jerry’s

6. Re-direct the spare funds in conducting market research to identify consumer preferences and
launch new flavors accordingly.
Pros: Saved costs, new insights from market research
Cons: Competitors taking on the closed flavors

Action Plan:

PRODUCT
1. B&J should focus on popular flavours and abandon less successful ones, reallocating
resources to more successful ones.
2. Based on market research, it should introduce innovative flavours like non-fat sorbet
varieties.

MARKET
1. As the U.S. super premium ice-cream industry approaches its maturity stage, B&J should
pursue international expansion, utilising the production capacity increase owing to the new St.
Albans production plant.
2. B&J could provide the product to clients in new places such hotels, restaurants, take-out/ice
cream shops in street malls, and online services.
3. To give customers a distinctive ice-cream experience, B&J should turn Scoop shops into ice
cream lounges. To ensure maximum foot traffic, these should be positioned in key areas like
malls.