Marketing Plan for Ben and Jerry's

Page 1 Five-Year Marketing Plan Ben and Jerry’s Homemade Holdings Inc. Table of Contents 1. Executive Summary 2. Company Description 3. Strategic Focus and Plan a. Mission b. Goals and Objectives c. Core Competencies and Sustainable Competitive Advantage 4. Situation Analysis a. SWOT Analysis i.

Figure 1 b. Industry Analysis c. Competitor Analysis d. Company Analysis e. Customer Analysis 5. Market-Product Focus a. Marketing and Product Objectives b. Target Markets c. Points of Difference d. Positioning 6. Marketing Program a. Product Strategy b. Price Strategy c. Promotion Strategy d. Place (Distribution) Strategy 7. Financial Data and Projections a. Past Sales Revenue i.

Figure 2.1 ii. Figure 2.2 b. Five-Year Projections 8. Organization a. Figure 3 9. Implementation Plan a. Figure 4 b. Figure 5 10. Evaluation

2 2 3 3 4 4 5 5 5 6 7 7 7 8 8 9 9 9 10 10 10 10 11 12 12 12 12 12 12 12 13 13 13 14

Page 2 1. Executive Summary Ben and Jerry’s is a superpremium ice cream company, now a subsidiary of Unilever, that sells a variety of flavors in grocery stores, gas stations, and their “scoop shop” franchises. Ben and Jerry’s owns 8.7% of the market share has a three-part mission focused on product quality and development, sustainable financial growth, and social justice. The company prides itself on its Fairtrade certification, brand equity, and customer loyalty. Today’s health-conscious society gave rise to a popularity in healthier alternatives such as non-GMO ingredients, non-dairy and low-calorie, these of which Ben and Jerry’s has been able to wholly satisfy, indicated by sales increases. The brand’s ideal customer is a young, wealthy, single adult that has reasonable concern for the environment and social issues.

In the future, Ben and Jerry’s hopes to pursue its brand potential by increasing flavor options in current markets, reach new and international markets, and continue to expand franchise locations. What sets the company apart from its competitors like Haagen Dazs and Blue Bunny is its environmental and social consideration, its quality and variety of flavors, its premium and creative packaging, and its customer engagement and appreciation. In order to promote the brand, Ben and Jerry’s will continue to host in-store demonstrations, remain active on social media, and celebrate Free Cone Day with its customers. Within the next five years, Ben and Jerry’s plans on entering five new countries and introduce 20 new flavors.

2. Company Description Founded by Ben Cohen and Jerry Greenfield in 1978, Ben and Jerry’s is an American company that manufactures super premium ice cream, frozen yogurt, and sorbet. In 2001, it became a fully-owned subsidiary of Unilever, a food and drink conglomerate, while still possessing its own Board of Directors largely to protect the company’s brand equity and integrity. Ben & Jerry’s is well known for its ice cream pints, along with other frozen novelties that are sold primarily in supermarkets, grocery stores and gas stations nationwide and in select foreign countries. It is also known for its independent franchise locations called “scoop shops,” totalling an estimated 585 locations across the country. Although Ben & Jerry’s routinely comes out with new flavors, it typically sells about forty different flavors at any time.

Based on 2017 sales, Ben and Jerry’s holds 8.7% of market share for all ice cream vendors. The company’s profits were reported to be $477.1 million. Not only does Ben & Jerry’s strive to increase profits and customer satisfaction, but it also has a strong commitment to the community.

Page 3 The Ben and Jerry’s Foundation formed in 1985, where it made a commitment to give 7.5% of its annual profits to the Foundation.

In August of 2018, Matthew McCarthy was appointed the new CEO of Ben and Jerry’s. Since his appointment, McCarthy has advocated for ramping up social justice efforts and corporate activism within the company. This effort includes the diversification of its current ice cream lineup with non-dairy and low calorie (Moo phoria) options. Moving forward, McCarthy plans to continue providing high-quality products to meet the consumers’ diverse needs.

3. Strategic Focus and Plan Mission: Ben & Jerry's is founded on & dedicated to a sustainable corporate concept of linked prosperity.

Our mission consists of 3 interrelated parts: Our Product Mission drives us to make fantastic ice cream – for its own sake. To make, distribute and sell the finest quality ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment.

Our Economic Mission asks us to manage our Company for sustainable financial growth. To operate the Company on a sustainable financial basis of profitable growth, increasing value for our stakeholders and expanding opportunities for development and career growth for our employees.

Our Social Mission compels us to use our Company in innovative ways to make the world a better place. To operate the company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally and internationally.

Central to the Mission of Ben & Jerry's is the belief that all 3 parts must thrive equally in a manner that commands deep respect for individuals in & outside the Company & supports the communities of which they are a part.

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Goals and Objectives: For the coming 5 years, Ben & Jerry’s seeks to achieve the following goals: ● Nonfinancial goals ○ To retain the current image as a high-quality super premium ice cream brand with a commitment to social justice issues. ○ To release 20 new flavors over the course of 5 years (4 per year), while simultaneously evaluating and rotating current flavors for profitability. ○ To enter 5 new international markets (particularly China and India). ○ To partner with RAINN (Rape, Abuse & Incest National Network) to promote awareness about sexual violence and intervention methods. ● Financial goals ○ To increase sales in the United States by 6% over 5 years. ○ To increase gross profit margins for the dairy-free product lines through higher production volumes. ○ To increase the price of the dairy-free products to improve margins.

Core Competencies and Sustainable Competitive Advantage: In terms of core competencies, Ben & Jerry’s seeks to provide superpremium ice cream products that meet consumer needs while also having an impact on their lives. It accomplishes this by stressing only non-GMO and fairtrade certified ingredients. Ben & Jerry’s commitment to social justice issues appeals to and relates to customers’ values, which provides an opportunity to deliver products that attract a wide range of consumers. It delivers the products through its manufacturing and distribution chains that adhere to the same principles and values it stresses in product creation. Additionally, Ben & Jerry’s continues to focus on maximizing brand recognition by promoting the company mission stated above.

To translate these core competencies into a sustainable competitive advantage, Ben & Jerry’s will work closely with its suppliers to ensure quality standards are met with the products and adequate working conditions are provided. Additionally, it will work with manufacturers and distribution centers to ensure that grocery and convenience stores remain stocked with the necessary variety of products. All of these standards will help to guarantee that the high-quality products that consumers expect are continuously delivered.

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4. Situation Analysis This situation analysis provides any stakeholder with an overview of the current state of the company. Within the analysis, perceived strengths, weaknesses, opportunities, and threats (SWOT) are described in order to provide a clear picture of where Ben & Jerry’s currently is at.

Furthermore, an industrial analysis follows the SWOT analysis to describe the competitors, company, and customers.

SWOT Analysis Figure 1 is a visual representation of Ben & Jerry’s strengths, weaknesses, opportunities, and threats. Factors regarding each point can be categorized as either internal or external.

Figure 1. SWOT Analysis for Ben & Jerry’s Internal/External Factors

Strengths

Weaknesses

Owned by Unilever

Supports financial and managerial sustainability

Consumers view Ben & Jerry’s as corporate sellouts

Certified as a B Corps Company and Fairtrade product

Upholds the company’s values of social justice and influences consumers to purchase this brand because it represents more than ice cream

Ingredients for the ice cream are harder to obtain and are more expensive to purchase

Viewed as a prestigious, high-quality, well-known brand among U.S. consumers

Consumers are loyal to the brand because they know what they will be getting

Ben & Jerry’s is one of the most expensive options for the volume of product

Consistent Pint Sales

Pints have become a product customers know, love, and consistently purchase

Sales growth and profits have been modest in recent years

Shared corporate values and mission

Employees and consumers alike value the social justice emphasis of the company

Ben & Jerry’s social responsibility actions could reduce focus on product and profit

Internal/External Factors

Opportunities

Threats

Created vegan/ non-dairy ice creams in same beloved flavors

Opens the market to consumers who have historically not been purchasing ice cream

Focus on a small demographic of new consumers may hurt existing loyal customers

Expanded global market

Reaches new consumers and spreads the brand name internationally

Challenges with potential product adaptation and introducing new products into unfamiliar markets

Has to meet requirements to maintain this status

Demands for ice cream overseas has grown Released “pint slices” novelty ice creams

New products will can generate new attention to the brand

Expenses related to new product production may not meet the profit goal

Recognized market competition

Allows Ben & Jerry’s to be sought after as the brand with the highest quality ice cream

Consumers may be deterred by price

Page 6 and the greatest corporate values

In Ben and Jerry’s favor internally are its strengths: financial and managerial stability obtained

by Unilever, shared values of social justice, brand equity based on a high-quality product that contributes to consumer loyalty, and sales consistency. Externally, opportunities include the creation of non-dairy and vegan products, increased international demand, the creation of new novelties, recognized market dominance.

Among unfavorable factors, the main weaknesses for Ben and Jerry’s are the view of being a corporate sellout, the difficulty to obtain Fairtrade ingredients, the expensive price, modest profits in recent years, and a reduced focus on product and profit as a result of social responsibility objectives. Threats to Ben and Jerry’s include its focus on a smaller demographic, challenges with potential product adaptation into unfamiliar markets, potential for customer deterrence based on price.

Industry Analysis According to ​Grand View Research,​ the global ice cream market was valued around $55 billion in 2016. Over the next eight years, that value is expected to increase by about $30 billion.

Although the global market value is expected to rise significantly over the next eight years, sales in North America are expected to remain steady. The small and steady growth comes from North American consumers beginning to seek out more health-conscious food items. The growing global value of ice cream in the market comes as consumers are enjoying the variety of new flavors that continue to be developed. Additionally, there has been an increase in the amount of ice cream novelty items sold. Typically, consumers purchase these ice cream products and novelty items at grocery or convenience stores.

Ice cream producers are expected to continue to innovate the market with new flavors geared towards pleasing a wide variety of consumers. For example, many producers have begun producing items that contain non-GMO ingredients. Additionally, non-dairy and frozen yogurt products are beginning to become more popular with consumers today. Because of the rising amount of health-conscious consumers, superpremium ice cream manufacturers have seen an increase in sales, while low-quality ice cream sales have seen a decline in recent years.

According to the ​Grand View Research​, the Asia-Pacific currently represents the largest share of ice cream buyers, with North America close behind. Unilever has been able to represent a large portion of this market share, due to its brands producing the superpremium ice cream that consumers are demanding. Overall, the market value of the ice cream industry is expected to see

Page 7 a large growth over the next few years, largely due to consumers preferring the premium products over lower-quality products.

Competitor Analysis Ben and Jerry’s main competitors are Magnum, Haagen Dazs, Breyer’s, and Blue Bunny. The superpremium ice cream market is somewhat concentrated, but there are substitutes that exist that don’t necessarily qualify as superpremium but still compete for the same relative customer base. There are also products that indirectly compete, such as chocolate, cake, frozen yogurt, or any other dessert options that customers may choose other than ice cream.

New entrants to this concentrated market have the possibility to take relatively unloyal customers away from Ben and Jerry’s if they provide a similar taste and sell it for cheaper, but Ben and Jerry’s has already established brand equity and brand personality, creating fairly a fairly loyal consumer base.

Company Analysis Ben Cohen and Jerry Greenfield have created an entirely successful company and brand originating from just a small ice cream shop in Vermont in 1978. The company has managed to branch into two markets, scoop shops and grocery pints. Ben and Jerry’s is especially known for its extensive list of cleverly named, delicious flavors. Its ice cream has consistently been known to be of the highest quality and has built an image of active and honest values, based on its product, economic, and social missions.

Customer Analysis In terms of customer analysis, this section describes (1) the characteristics of customers expected to buy Ben and Jerry’s products and (2) health and nutrition concerns of Americans today Customer Characteristics.​ The consumer demographic of Ben & Jerry’s ice cream pints bought in grocery stores are young adults around age 16 to 24. They are reasonably wealthy, single, and Caucasian and are reasonably interested in social justice issues. Customers will typically buy Ben and Jerry’s pints when he is pantry-stocking in grocery stores, often when they have more than 20 items in his cart, and they usually purchases it alongside products such as DiGiorno pizza and YoCrunch yogurt.

Ben & Jerry’s manufactures superpremium ice cream, frozen yogurt, and sorbet. Within these categories, it offers certain novelty items of various flavors. While at the grocery store, customers appreciate being able to choose between the traditional pint-sized Ben & Jerry’s ice cream products and its Pint Slices novelty items. The Pint Slices are smaller ice cream bars filled with various mix-in’s and covered in a chocolate coating. Also, Ben & Jerry’s provides larger

Page 8 amounts of chunks and mix-ins, which set it apart from other options. Finally, customers get excited to choose between the many different flavors that are offered.

Health and Nutrition Concerns.​ C ​ overage of food issues in the United States in media and news sources is usually alarmist and concerning. Due to the increasing concern for individual health in the United States, media coverage has grown exponentially on the topic. This includes coverage on foods, such as ice cream, that historically have been high calorie and high fat per serving.

Dairy products have also been receiving extended media coverage recently, primarily due to research developments in the area of dermatology and its connection with Acne development, as well as increasing concerns over lactose intolerance.

However, Ben & Jerry’s is one of the few super premium ice cream producers that manufactures low-calorie alternatives to its major line of products. A prime example of this is the Moophoria line of ice cream pints that offer between 140 to 160 calories per serving. Ben & Jerry’s also producers Dairy alternative ice cream pints with its non-dairy line.

5. Market-Product Focus Marketing and Product Objectives Ben and Jerry’s marketing intent is to fully pursue its brand potential so that it can continue to increase sales, both in grocery stores and in independent locations. These are detailed in four areas below: ● Current markets. ​Ben and Jerry’s current markets will be expanded by increasing flavor options and providing a wider variety of novelty items that are available at grocery store locations. Ben and Jerry’s will increase consumer awareness of these expanded product offerings by continuing to stress its commitment to bettering the consumers’ lives. Consumers appreciate Ben and Jerry’s commitment to social justice issues because it appeals to and relates to consumers’ values. ● New markets. F ​ or the coming five years, Ben and Jerry’s plans to release about twenty new flavor options to the market that will continue to attract consumers to its high-quality products. Additionally, Ben and Jerry’s plans to expand to five new international markets, which will increase its overall market share in the superpremium ice cream industry. As previously noted, the value of the global ice cream market is expected to increase by about $30 billion over the next eight years. Ben and Jerry’s will acquire some of that share by introducing new novelty items to international consumers for the first time.

Page 9 ● New products. ​Ben and Jerry’s brand presence will be expanded at the retail level through the introduction of new novelty items and new flavors available in stores.

This will be accomplished by evaluating current offerings and determining if product rotations are necessary. Additionally, Ben and Jerry’s will research the target market to identify the current needs and wants of consumers to ensure the new products will meet those consumer needs and wants. ● Independent locations.​ Ben and Jerry’s will continue to expand franchise locations to complement the sales in grocery and convenience stores. These expansions are expected to increase sales over the next five years.

Target Markets Ben and Jerry’s target market is young people that do not have financial concerns. Beyond their disposable income, Ben also Jerry’s also attracts those who are interested in social justice issues and have a flair for the creative side. These individuals value the high quality ice cream and remain loyal to the brand and willing to pay more for it.

Points of Difference The characteristics that make Ben and Jerry’s unique relative to competitors fall into four important areas ● Environmental and social consideration. I​ n addition to its effort to produce a quality product, Ben and Jerry’s also actively considers environmental aspects by only buying from free-trade suppliers and social aspects like being involved in political campaigns and social media. ● Variety and quality of flavor. ​The brand consistently creates new and interesting flavors to serve multiple segments and has succeeded in producing denser, richer, and chunkier ice cream than most if not all competitors. ● Premium packaging. A ​ s opposed to other superpremium brands, Ben and Jerry’s packages their ice cream pints with clever and witty flavor names and flashy colors cartoon pictures of the ingredients and/or social issues the company supports. ● Customer engagement and appreciation. T ​ he company encourages interactive customer involvement in the invention of new flavors and rewards their loyal customer base with free samples from their “Scoop Truck”, “Free Cone Day”, and social media interaction.

Positioning In the past, superpremium ice cream brands have seldom incorporated quality product with social awareness, high customer engagement, and unique packaging. Ben and Jerry’s incorporates these

Page 10 characteristics to create a positioning in customer mind’s as a premium ice cream brand that is socially aware, appreciates its consumer base greatly, and produces creative merchandising.

6. Marketing Program Product Strategy Product Line.​ B ​ en and Jerry’s ice cream retails between $4.39 and $5.19 for a pint. Although it routinely rotates its product line to introduce new flavors and retire old flavors that are underperforming, Ben and Jerry’s typically has around fifty flavors available for consumers either in grocery stores or scoop shops.

Unique Product Quality. T ​ he unique product quality is what separates Ben and Jerry’s from the competition. The consistency of the ice cream itself ranks as superpremium, among the highest quality. Additionally, the variety of large chunks used as mix-ins are why consumers love Ben and Jerry’s. As a mission driven company, Ben and Jerry’s aims to support local farmers and ensures that the ingredients in their ice cream is Fair Trade certified.

Packaging. T ​ he packaging of Ben and Jerry’s pints combines bright colors with unique flavor titles in order to attract consumers to its products. Additionally, the packaging emphasizes its high-quality ingredients while also highlighting that the ingre dients meet Fair Trade certification requirements. The packaging and marketing strategy set forth allows Ben and Jerry’s to attract the target consumers at grocery and convenience stores.

Although the target consumer is a male consumer, packaging aims to remain neutral in order to provide a product that will meet the demands of a wide consumer market that is looking for high-quality ice cream that also adheres to certain social justice rules and certifications. The colors and flavor titles are designed to attract a diverse group of both men and women.

Price Strategy Ben and Jerry’s has retail pricing that covers a wide range of consumer budgets, ranging from $4.39 for classic pint flavors, to $5.19 for non-dairy pint flavors. Ben and Jerry’s pints are priced competitively to other superpremium ice cream producers, but higher than regular and economy brands. However, the increased quality advantage and social awareness of the brand justify the pricing strategy. This pricing strategy also allows for significant margins to provide for wholesalers, retailers, and non-profit organizations.

Promotion Strategy

Page 11 Key promotion programs feature in-store demonstrations, social media, and Free Cone Day in franchised stores known as Scoop Shops. Currently, Ben and Jerry’s already uses social media and giveaways in their promotion strategy, but in-store demonstrations is a suggestion to reach more consumers.

In-Store Demonstrations.​ In-store demonstrations allow for customers to try all of Ben and Jerry’s flavors and product lines. Demonstrations will be conducted in retail chains and grocery stores across the country such as Costco, Sam’s Club and Target in order to increase brand awareness and bring light to social justice causes that Ben and Jerry’s support.

Social Media. C ​ urrently, Ben and Jerry’s social media, particularly Instagram and Facebook, have a large following, Consumers value the creative graphics provided and are able to connect to the brand’s commentary on pressing social justice issues and popular culture. Additionally, through targeted advertisements, Ben and Jerry’s is able to reach potential consumers who do not yet follow them and gain attention for the masses through shareable links.

Free Cone Day. I​ n 2018, Ben and Jerry’s celebrated its 40th annual Free Cone Day. Each year, on April 10th, Ben and Jerry’s offers free ice cream cones in Scoop Shops nationwide. This event builds rapport with consumers and allows them to engage with the brand in a positive light.

By providing this event, Ben and Jerry’s is able to maintain consumers throughout the year.

Place (Distribution) Strategy Ben and Jerry’s is currently distributing around the world using food distributors. The food distributors purchase the product, then resell it to retailers at a higher price in order to make a significant margin. The distributors also handle all transportation and delivery to retailers, as well as handling logistics and inventory. As Ben and Jerry’s sales grow, especially in the areas of low-calorie and non-dairy ice cream, focus will be shifted on those specific distribution channels and increasing efficiency with food distributors.

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7. Financial Data and Projections Past Sales Revenue Ben & Jerry’s has been acquisitioned to Unilever since 2000.

Based on available data, Unilever reports all Ben & Jerry’s turnover (or revenue) with their ​Refreshments​ segment, which also contains Lipton Tea and SlimFast. Since Unilever is a European conglomerate, its annual reports are summarized in Euros (Figure 2.1), which gives a different story of turnover than when it is reported in US dollars, given the exchange rate.

In dollars, this segment outlines its past sales revenue with an increase from 2010 to 2012, a decrease beginning in 2013 and lasting until 2016 where an increase lasts until available data.

Ice cream & beverages account for 19% of Unilever's revenues and 12% of its operating profit. See Figure 2.2.

Five-Year Projections Five-year financial projections for Ben & Jerry’s appear below.

Data is based upon past revenue of Unilever Refreshments Segment and analysis of key trends from external sources. These projections reflect the continued growth in sales and operating profits.

Financial Element Turnover/Revenue (billions of $) Operating Profit (billions of $)

​ 2017 9.93 1.13

2018 11.93 1.22

Projections 2019 2020 12.76 13.73 1.35 1.48

2021 14.78 1.61

2022 15.91 1.74

8. Organization Ben & Jerry’s Homemade Holdings Inc.’s present organization appears in Figure 3, based on available information. It lists the members of the Board of Directors, the CEO and co-founders, and the executive officers that report to the CEO. Below this level are both the full-time and part-time employees of the company, including directors of the Ben and Jerry’s Foundation, sublevel directors, and franchise owners.

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Since 2010, Ben and Jerry’s has been a wholly-owned subsidiary of Unilever, although it prides itself on maintaining an independent Board of Directors dedicated to “protect and defend Ben & Jerry’s brand equity and integrity”, as well as product quality. Ben and Jerry’s operations are still controlled by Ben and Jerry’s, while Unilever provides oversight and may appoint new board members.

9. Implementation Plan Introducing Ben and Jerry’s to 5 new international markets is a complex process that requires a lot of time and planning in accordance with varying cultural values. Counting the 35 existing international markets that Ben and Jerry’s is currently competing in, by 2022 it will be in 40 markets. The anticipated rollout schedule to enter the international markets is provided below in Figure 4.

Figure 4. Rollout Schedule to Enter New Foreign Markets Year

New Markets Added Every Year

Cumulative Markets

Year 1 (2019)

1 (China)

36

Year 2 (2020)

2 (Indonesia, Norway)

38

Year 3 (2021)

1 (India)

39

Year 4 (2022)

1 (Russia)

40

Figure 5. New Flavor Rollout Schedule Year

New Flavors Added Each Year

Cumulative Flavors*

Year 1 (2019)

4

56

Year 2 (2020)

4

60

Year 3 (2021)

4

64

Year 4 (2022)

4

68

Year 5 (2023)

4

72

Page 14 Figure 4 and Figure 5 show the planned foreign market rollout schedule as well as the flavor rollout over the coming five years. As the flavor rollout continues in the new markets as well as current markets, the current flavors will be evaluated to ensure consumer satisfaction. Flavors no longer meeting consumer expectations will be retired in the coming years, which could lower the cumulative flavors available. Introducing Ben and Jerry’s to the new markets listed above will allow the company to continue to test new flavors in various markets. Additionally, it will be able to identify which flavors and novelty items are successful in the diverse markets. The acquisition of five additional countries will help increase market share over the next five years. *Note: Cumulative Flavor count will fluctuate depending on amount of retired flavors per year.

10. Evaluation The target has been set for a Ben and Jerry’s to introduce their products to the global market on an annual basis. Also, Ben and Jerry’s plans to add four new flavors each year. Actual international expansion and flavor additions will be measured from this strategy and may fluctuate due to consumer response.

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References https://www.benjerry.com/about-us/sear-reports/2017-sear-report https://www.unilever.com/investor-relations/annual-report-and-accounts/ https://www.trefis.com/stock/ul/model/trefis?easyAccessToken=PROVIDER_0f2fee77c7ec6b78 5ac4b58c2fdff4d21b776757