Lauren

Rachel

Ross

Formed in 1978 in Burlington, Vermont by Ben Cohen & Jerry GreenfieldBen Cohen and Jerry Greenfield found they hated running but loved food. Years later in 1978, Ben had been fired from a series of jobs while Jerry had failed for the second time to get into medical school. So, armed with a $5 crash-course in ice cream making, they opened their first shop in a run down petrol station in Burlington, Vermont.

They soon became popular in the local community for the finest all natural ice cream. Ben had no sense of taste so he relied on what he called ‘mouth feel’, so big chunks of chocolate, fruit and nut became their signature. While they disagreed at times over the chunk size, they did agree that they wanted to enjoy themselves – as Jerry put it ‘if it’s not fun, why do it?’.

In the early days the boys were pretty bad at book-keeping. After two months they closed the store and hung a sign that said ‘we’re closed to figure out whether we’re making any money’. And they weren’t. But they learned a lot and by 1979, began wholesaling pints of ice cream out of Ben’s VW campervan

Background

PurposeTo sell ice cream to the public and promote environmentalism through their product.

Management

CEO – Jostein Solheim

Founders – Jerry Greenfield & Ben Cohen

Managerial Experience required – Consideration of company’s key values – Fairtrade, environmentally-friendly production & packaging of product.

•750 stores worldwide•Head offices in South Burlington, Vermont•Employees : Approx. 153,000 worldwide•Trade Union – Ben& Jerry’s employees are not involved in a trade union but their ‘key values’ fully support the trade unions of the farmers who make their product possible.•Ben & Jerry’s has an ‘employment salary promise’ which means that the employee earning the least within the company will receive no less than 1/7 of the head of the company. This creates a kind of financial equality within the company.

Size/Emploment

FinanceBen & Jerry’s is making a profit. In 2009, the company grossed between $200 million & $500 million.

MarketingThe colourful, attractive packaging is used to entice the customers. The playful animations surrounding the ice cream appeal to children and also the playful nature inside us all – releasing our inner child. This makes Ben & Jerry’s have a mass appeal. However, the pricing of the products is above average for today’s market but consumers pay for the quality and brand name of the company.

Due to the current economic climate, most companies worldwide have faced substantial financial difficulties- with many redundancies and hardships – however, the success and effective branding of the company has allowed it to survive and prosper throughout the recent financial crisis. Ben & Jerry’s has not been entirely unaffected by the burdening economic crisis, however, as sales have been flat in recent times due to a constantly-changing demographic and market.

Pressures

•Established, successful, global operation, with sales in USA, Europe and Asia, which is associated with environmentalism. For example, its products are packed in unbleached cardboard containers. •Ben & Jerry's also donates a minimum of $1.1 million of pre-tax profits to charitable causes yearly. The company sponsors Partner Shops, which are Ben & Jerry outlets independently owned and operated by non-profit organisations such as Goodwill Industries. The company is also involved in other good causes, including global warming, gun control and saving family farms. •In 2009 Ben and Jerry's Chunky Monkey ice cream flavour was named in a top ten list of the best ice cream in London.

Strengths Weaknesses•In 2006, former CFO Stuart Wiles was convicted of embezzling some $300,000 from the company during his time at Ben & Jerry's, which ran from 2000 to 2004. •In 2006 they had to stop using Michael Foods as their egg supplier, due to bad PR from the Humane Society, which alleged that Michel Foods treated chickens inhumanely. •Their clear focus on multiple social responsibility issues could hurt the company by shifting the focus away from important business matters, and also add unnecessary costs. •They need more experienced management to fuel aggressive growth in a down turned economy and change flat sales in their premium product lines.

Opportunites•In today's health conscious societies the introduction of more fat-free and healthy alternative ice cream and frozen yogurt products. •Provide allergen free food items, such as gluten free and peanut free. •In 2008 they acquired Best foods and Slim-fast which will allow them to enter a new industry of weight loss products.

Threats•Much of their target market is constantly changing its product preferences (desiring to prevent diabetes, obesity etc.). This has left sales flat in recent years. •Consumers are concerned about fattening dessert products. •Any contamination of the food supply, especially e-coli. •Major competitors, like Nestle (Pillsbury), Kraft Foods, Dunkin’ Donuts, and Dean Foods. They also have competition from global food companies with similar products and any grocery store label products. •Agricultural economists say today's milk shortage is basically a case of low supply and high demand worldwide. •Skim Milk powder (which is easier to transport than fresh milk) is used in a wide range of foodstuffs, and in 2007 its price shot up to record levels worldwide - almost twice as high as the year before.

The company hopes to return to an increasing rate of sales following recent times of financial difficulty and expand into the as yet uncapitalized market in South America.

Future Prospects

BY

RachelLauren

And…………..

ROSS!!!!