From Small Beginnings

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• From Small Beginnings

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• To a world class product brand

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• From 2 men ..

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• To 840 employees

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And we have Famous Friends
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• From 12,000 ..

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• To 2.5 M per year

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And we still care about the Environment
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How did we do it?

• Miracle or Management?

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Ben Jerrys Ice-Cream

• Paula Clarke
• Lynda Treacy
• Fionuala Devlin

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Presentation Overview

• Industry characteristics
• The super-premium niche market
• Ben and Jerrys company analysis
• Unilever takeover
• Conclusion an answer to our question

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Modern Consumption Trends

• Convenience
• Self indulgence
• Excitement
• Value for Money
• Healthy Eating

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Key Market Drivers

• Seasonality
• Portion sizes
• Confectionary trends
• Regulatory Environment
• Promotional Campaigns
• Innovation

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Worldwide consumption
By volume
Source Euromonitor, 2001
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Worldwide consumption
By value
Source Euromonitor, 2001
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Market Segmentation
By retail sales value
Source Unilever, 2001
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Manufacturer Market Share
Source Euromonitor, 2001
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Super Premium Market

• Characteristics of this market
• Quality
• Richness
• Density
• Flavour Selection
• Texture and Brand Image
• Results in Higher cost

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Niche Market

• Trends have changed
• Premium to Super Premium
• Sole significant growth sector in take home ice
  cream
• Main driver of growth in the ice cream market

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Share in the Marketplace
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The Players in the Super Premium Market

• Haagen Dazs - owned by Diageo - targeted at young
  people, sexy image using a mixture of brands to
  develop new products i.e Baileys ice-cream
• Ben Jerry's - Owners Unilever - quirky image -
  combination of unusual flavours and textures.
  Environmentally and Socially aware

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Porters Five Forces

• Buyer Power - High - sales have continued to
  grow year on year with Sales also moving into
  other areas such as Video stores, Cinemas,
  Supermarkets etc
• Supplier Power - High ( distribution issues)
  Suppliers and distributors have high bargaining
  power - especially true for BJ due to principles
  of company
• Threat of new entrants - Low/Medium - limited
  shelf space and quality of current competitors
  makes market entry harder. Capital Intensive set
  up and Distribution access.

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Porters Five Forces

• Threat of Substitutes - medium/high with all
  ice-cream producers trying to match Super Premium
  image i.e mars etc using 1 litre tubs like Ben
  and Jerrys and Haagen Dazs
• Rivalry - Intense rivalry in the marketplace with
  everyone wanting a segment of the Super Premium
  market but few achieving the right quality -
  many companies are also copying the key features
  of Super Premium market.

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A Little History

• 1978 Co. founded with 1 shop
• 1987 - Cherry Garcia launched as 1st ice-cream
  named after rock legend
• 1995 distributing in UK making no fat frozen
  yoghurts website launched
• 1998 relaunch entire pint line with new look
  packaging including the Eco-pint
• 2000- takeover by Unilever

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Company results
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Who buys Ben Jerrys?
GEOGRAPHICAL
SOCIAL CHARACTERISTICS
AGE
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- Linked Prosperity

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Building brand equity
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Product Market Portfolio
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DOYLES MARKET GROWTH
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Product analysis

• Pint sales an unbalanced portfolio?
• Iterative product life cycle (new flavour new
  product)
• New Product devlpt/innovation
• Maintaining the social mission
• - rBGH free
• - unbleached packaging

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Promotion the alternative way

• innovative promotional and advertising campaigns
  designed to generate unpaid media coverage
• Co-branding Dilberts World, Cherry Garcia,
  Phish Stick
• Cause-related marketing One sweet whirled
• Website Cool Club
• Haagen-Dazs spend 6 times more on advertising

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Corporate citizenship a way of life

• The personalities of Ben and Jerry
• 7.5 pre-tax profits to philanthropy
• - BJ Foundation
• - Employee Community Action Teams
• Annual Social report
• Employee culture
• Protecting suppliers

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Distribution the submerged iceberg?

• Limited distribution alternatives
• Reliance on distribution through competitors
  independent networks
• Over 57 of sales distributed by one company by
  1999
• Redesign internal sales force
• - 40 limit
• Significant risk is Unilever the answer?

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The Future-preserving the image

• SWOT of Unilever takeover
• S might resolve the distribution problem/more
  resources for promotion.
• W values social responsibility/loss of
  personalities of BJ/quality ingredients
• O global mkts, RD
• T being sold off/merged

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Success miracle or management?

• Niche positioning
• Selling a concept
• indulgence with a conscience
• wacky, fun lifestyle with social responsibility
• Brand loyalty
• NPD/exploiting technology