Ben & Jerrys Homemade Ice Cream - Marketing Stratgies :: GCSE Business Marketing Coursework Essays

Ben & Jerrys was experiencing a steady growth within their earthy sales figures from 1990 to 1993. further, In March 1994, Cost of Sales change magnitude approximately $9.6 billion or 9.5% over the same period in 1993, and the overall gross profit as a percentage of net sales decrease from 28.6% in 1993 to 26.2% in 1994. This loss might have been a depart of several reasons, such as elevated administration and change costs, a negative impact of inventory management, and start up costs associated with trusted flavours of the new Smooth, No Chunks looking glass cream line.Ben & Jerrys selling, general and administrative expenses increase approximately 28% to $36.3 million in 1994 from $28.3 million in 1993 and increased as a percentage of net sales to 24.4% in 1994 from 20.2% in 1993. This increase might reflect the increase in marketing and selling expenses and the increase in the companys administrative infrastructure.Ben & Jerrys loss was not solely collect to their empl oyee orientated approach, but they appeared to have taken out a long amount of capital lease in their aim to automate their occupation to keep up with the intense competition.As reflected in the balance sheet, Ben & Jerrys had reinvested commodious amounts of property and equipment in 1994 increasing their long-term debts by almost 45% in 1993.Alternatives available to the consumer now, and in the foreseeable futureHaagen Dazs is currently the principal(prenominal) competitor in the concentrated market place for super support ice cream. Substitutes are however available. There are other ice creams not in the super premium category. To an extent, these are real competitors. However for the market B&J caters for the up market 25-40s with a high disposable income their strategies should not have a great impact on B&J. The frozen yogurt lines which B&J now provides, has a number of direct competitors to deal with. Dealing with other substitutes is not that simple. overpriced (or n ot) chocolate, cakes, croissants and other post meal consumables are realistic options for the consumer. Ferrara Rocha will mark you that their product is the perfect accompaniment to any meal. B&J take aim to be wary of this. How he/she makes the choice for ice cream (as hostile to chocolate etc.) and then super premium (as opposed to premium or ordinary) and then B&J (as opposed to Haagen Dazs etc.) is essential. See section 3.21 Research The possibility of a rival ceasing B&Js place as no.