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Ben & Jerry’s SWOT and PESTLE Analysis

ID : 52847753| Jun 2023| 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 2022, 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 USP or unique selling proposition centers around making innovative flavors of “All Natural” high quality premium ice cream and related products. Ben & Jerry’s mission statement reads, “To make, distribute and sell the finest quality “All Natural” ice cream and euphoric concoctions with a continued commitment to incorporating nutritious, natural ingredients and promoting business practices that respect the Earth and the Environment” and its vision statement reads “making the best possible ice cream, in the nicest possible way.”

Ben & Jerry's Revenue :


$450 million – FY ending 31st December 2021

Competitive Analysis of Ben & Jerry's

SWOT
PESTLE
Ben & Jerry's makes a significant commitment to source Fair Trade ingredients and to support the global Fair-Trade movement. Ben & Jerry’s are in the process of converting their ingredients to Fair Trade globally where they feel they can have the greatest impact on improving the lives of farmers, strengthening their communities and protecting the environment. The company’s Non-Dairy flavour creations are made with almond milk, 100% certified vegan, catering to the health-conscious patrons of the society.
The SWOT analysis report manifests a discussion on all the internal and external factors and their impacts on the company’s micro and macro environment. It also to identify the internal strengths and external opportunities that ease to address the inherent weaknesses and business threats that can inhibit growth and progression.
Ben and Jerry’s have been a well-established, successful and prestigious name globally. It has it’s presence in multiple geographical areas like USA, Europe and Asia. The company has set it’s image as a socially responsible and environmentalist brand. Ben and Jerry’s is a thorough environmentally committed brand. Ben and Jerry’s use differentiation strategy to gain competitive advantage over other brands. The company usually names its ice creams flavors by creating suspense of the actual flavor. This naming strategy has set the company stand out in the market of traditionally named ice creams. Allegations of misleading consumers through false labelling is a big weakness for the company. Ben and Jerry have been facing lawsuits with similar complaints from the past few years. There have been cases filed against the company.
There has been a global rise in the demand for premium ice creams by the consumers nowadays. The market share of such ice creams has increased and is expected to raise more. The majority of the consumers belong to the health-conscious category and here comes growth opportunity in fat-free and healthy alternative ice cream and frozen yogurt products segment. Ben and Jerry’s too did not miss an opportunity to appease ‘health conscious’ consumer base by introducing Moo-phoria, an ice cream product line with reduced calories and sugar giving a ‘guilt free’ option to customers. . Impacts of ice creams on health are a point for discussion for nutritionists. Some claim that it causes health problems like obesity due to its sugar and fat content, threatening the company’s business. Ben and Jerry’s seem to have analysed the problem and come up with a solution. Ben and Jerry’s despite being a well-established brand, is facing market competition from other players like Nestle, Kraft Foods, Dunkin Donuts. The company’s market share is also threatened by similar global food brands and labelled grocery story products.
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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WHY BUY THIS REPORT?
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
Ben & Jerry’s report offers the following:
  • Ben & Jerry’s SWOT and PESTLE analysis report demonstrates an understanding of the complex internal and external factors shaping the brand and its operation.
  • The SWOT analysis report consolidates internal and external analysis. Internal analysis highlights strengths and weaknesses, whereas the external analysis helps to identify the opportunities for development and threats that can impede growth.
  • Identifying Ben & Jerry’s uniqueness and innovative strategies that catapulted its position to a market leader in the industry and presented the company with unique competitive advantage.
  • The PESTLE/STEEPL/PEST analysis explicitly depicts the macro factors and its influences on the industry and largely on Ben & Jerry’s.
  • The PESTLE analysis helps in identifying the impact on Ben & Jerry’s business model by influencers like political, economic, social, technological, legal and environmental factors.
  • Comprehensive company analysis to infer information about company profile, business model, business plans and marketing strategy, including an abstract data of Ben & Jerry’s founders, its headquarters, value proposition, and revenue curve.
  • Studying the latest mission and vision statement adopted by the company followed by its Unique Selling Proposition or USP that makes Ben & Jerry’s one of the leading ice creams brand.
  • Investigating Ben & Jerry’s business model and business diversification, with further categorization and analysis of key business segments and business case study.
  • Crisp synopsis of the company’s core competencies that strengthened and added a competitive advantage to the company over its major competitors.
  • Classifying the core values, key performance indicators and success factors that contributed to sustainable growth and proliferation.

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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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Ben & Jerry’s SWOT and PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2024). Ben & Jerry’s SWOT and PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/ben-jerrys/ [Accessed 19 Mar, 2024].

In-text: (SWOT & PESTLE.com, 2024)

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