Friday, March 9, 2012

Ben & Jerry’s Strategy Unleashed: Combine Social Activism and Environmental Responsibility

There is no doubt, Ben & Jerry’s, an innovative leader in the super-premium ice cream industry, is committed to excellence! The company takes a unique stand; they provide all an all-natural, high quality ice cream. Their unique product lines, combined with their amazing philosophies cause them to think “outside of the box”. The company combines a commitment towards social activism and environmental responsibility. My analysis will reveal both the company’s environmental strategy and general corporate strategy. The strategy focuses on social missions aimed at improving the quality of life. One determines whether a “green” company such as Ben & Jerry’s can sustain a competitive advantage in today’s market place. In the year 2000, Unilever bought Ben and Jerry’s, however this was only on the premise that B&J’s strategic vision would remain the same. I am delighted to say, it has.

In the past, Ben & Jerry’s positioned its ice cream for kids and the “young at heart.” As of late, the campaigns have been targeted to the baby boomers. Though the company touts social responsibility, the real compelling reason to buy the ice cream is because it’s made with good ingredients and tastes great. Always innovative, never stagnant, the flavors are unique, flavorful, and aptly named. Ben & Jerry’s is an all-natural, non-traditional brand. Truly sitting at the top of the premium ice cream category, its leading competitor is Häagen-Dazs®, and Dreyer’s – their rival. The key benefit for the consumer is that not only is the ice cream delicious, but consumers realize that B&J’s is all about doing good things for the community – giving back. They are a fun corporation, and all ads are colorful. They are constantly having sales promotions, and involve the public in naming new flavors and retiring the unpopular ones.

Nineteen eighty-five was the year that year marked a turning point for Cohen and Greenfield. With a new sense of mission, they vowed to adapt their business to suit their philosophies. Thus, the Ben & Jerry Foundation was created, which received 7.5% of the ice cream company’s pre-tax profits and then donated them back to the community.

Their tagline: greening the grassroots since 1985 and has enabled them to donate over $1 million dollars per annum. Community Action Teams (CATS) distribute small grants to groups within Vermont, the company’s headquarters. Ben & Jerry are friendly, concerned bosses, and the dynamic duo tied their values and attitudes into company policy. To work at a Ben & Jerry’s outlet or plant is to become part of a team. Each individual is valued. Respect for employees took a far greater precedence than any corporate or profit oriented concerns. Ben & Jerry’s serves the community, and every year they give out free ice cream to show their appreciation.
What is really important are the social stands they take; Vermont Children’s Forum [B&J’s want the U.S. to spend more on health care and education for kids], Just Say No to rBGH [ban artificial growth hormone that’s injected into cows], Business leaders for new priorities [reallocated to education, health, child services and world hunger] and finally, Common Cause Education Fund [a non-profit organization that allows citizens to make their voices heard in the political process].

The company is focused on making an exemplary product – they don’t cut corners on the ingredients they use or the time it takes to make a super premium product. The company is focused on market penetration, product development and product differentiation.
Ben and Jerry’s mission is to promote Social and Environmental progress. B&J’s humble beginnings of “being green,” was actually the by-product of being poor. The company had to find efficient ways to do things. As the company grew, the company realized the need to be more socially responsible.

Success was measured by not on how much money they made, but how they were doing as a neighbor. Through social audits recycling was introduced, as well as waste reduction, while improving their environmental footprint. When consumers buy this product they believe they are buying a product that has an ethic. The panel on the back of the pint is used to discuss issues, and they use the title itself. A great example of this, one of the newest flavors: Fossil Fuel, talks about global warming, people are asked to go visit the website. The business is known as a caring and community based business, one of the reasons why it has lasted so long… They believe in spirituality in business, as in people, and this, believe it or not speaks volumes. To help others you are actually helping yourself in return. Ben & Jerry’s ice cream tastes great, has an appealing social mission and brand integrity, and is exactly what consumers want!

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