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Ben & Jerry’s SWOT & PESTLE Analysis

ID : 52847753| Jan 2021| 20 pages

COMPANY PROFILE -Ben & Jerry's

Business Sector :Food & Beverages

Operating Geography :United States, North America, Global

About Ben & Jerry's :

Ben & Jerry's Homemade, Inc. is a producer of ice creams and frozen novelties. Besides Ben & Jerry's scoop shops, the official franchises, the company also distributes its ice cream novelties in USA and other countries across the world via supermarkets, grocery stores, convenience stores and other venues. The company was formerly founded in 1978 in Burlington, Vermont with a basic investment of $12,000 along with $5 that were spent on a correspondence course in ice cream-making from Penn State. Later, Unilever, the British-Dutch conglomerate, bought the company in the year 2000. As of 2021, Ben & Jerry operates as a wholly owned subsidiary of Unilever, headquartered in South Burlington, Vermont and main factory in Waterbury, Vermont. Ben & Jerry's long stood brand values and its key focus on activism presents the company an edge over its rivals.
Ben & Jerry is one of the leading ice cream vendors in the United states with a market share of 8.7% estimated in 2017. Ben & Jerry celebrates its first store's anniversary as a Free Cone day usually between late march and early may. This annually held event is also for customer and staff appreciation. On this day the company via its scoop shops gives out free ice cream cups and cones to everyone.

Ben & Jerry's Revenue :


USD 64,357 million – FY ended 31st December 2019 (y-o-y decrease of 19.14%)
USD 79,593 million – FY ended 31st December 2018

Competitive Analysis of Ben & Jerry's

SWOT
PESTLE
The SWOT analysis of Ben & Jerry's is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Focus on environmentally sustainable products and packaging
2. Continuous creativity and differentiation in products helping build a competitive advantage
3. Strong brand with established global operation
4. Maintaining a strong market share
1. Allegations of misleading consumers through false labelling
OpportunitiesThreats
1. Rise in demand for premium ice-creams across the world
2. Growth opportunity in fat-free and healthy alternative ice cream and frozen yogurt products segment
3. Increasing retail channels such as hypermarkets, supermarkets, convenience stores and discounters
1. Taking political stance on various issues may backfire
2. Increasing diabetes and obesity to negatively impact the demand for ice cream
3. Fierce competition from industry peers
4. Rising animal feed prices leading to increase in milk prices
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Ben & Jerry's

Strength

1. Focus on environmentally sustainable products and packaging: Ben and Jerry’s is a thorough environmentally committed brand. It has ambitious projects and idea to cut down its waste from packaging materials and from its shops. They are into constant efforts in making sure that their pint cartons and novelty boxes are made out of eco-friendly sources. Instead of using plastic cups, the company uses paper cups with a thin layer of plastic coating to prevent moisture and minimise plastic waste. The company had issued statement on its website that they would offer paper straws and wooden spoons from April 2019 onwards. It had also mentioned to come up with an alternative solution to replace clear plastic cups, plastic-lined cups and plastic lids by the end of 2020.

2. Continuous creativity and differentiation in products helping build a competitive advantage: Ben and Jerry’s use differentiation strategy to gain competitive advantage over other brands. The company charges a premium price for its products than the other economy ice cream brands. This product positioning strategy gains the buyers’ trust and makes them believe that the product is worth the price it charges. Their claim of ‘Natural’, high quality ingredients and blend of flavours can be looked upon as a strategic advertising tool. The company usually names its ice creams flavours by creating suspense of the actual flavour. Examples include; Chubby Hubby, Phish Food and Chunky Monkey. This naming strategy has set the company stand out in the market of traditionally named ice creams. Moreover, their concern for the environment and their shift towards eco-friendly cups and spoons has drawn the attention of the environmentalist’s groups while lowering the costs too.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.
SWOT & PESTLE (combined)
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References used in Ben & Jerry's SWOT & PESTLE Analysis Report

1. Ben & Jerry's responsibly sourced packaging - https://www.benjerry.com/values/how-we-do-business/responsibly-sourced-packaging
2. Ben & Jerry's plastic straws spoons ice cream - https://www.recyclingtoday.com/article/ben-jerrys-plastic-straws-spoons-ice-cream/
3. Ben & Jerry's marketing strategy - https://www.referralcandy.com/blog/ben-and-jerrys-marketing-strategy/
4. Ben & Jerry sued again over milk sourcing - https://www.foodnavigator-usa.com/Article/2019/11/14/Happy-Cows-Ben-Jerry-s-sued-again-over-milk-sourcing
5. Ice creams healthy future - https://www.dairyfoods.com/articles/92778-ice-creams-healthy-future
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Ben & Jerry’s SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/ben-jerrys/ [Accessed 02 Aug, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Ben & Jerry's SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting

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