Ben & Jerry's - Japan Market

Ben & Jerry’s

By Emilie Kjærgaard Jørgensen, Hao Cheng, Shinal Narayan & Tina Przulj

Group 4

1.  Should Ben & Jerry’s commit to entering the Japanese market the following summer?

Ben and Jerry’s should definitely commit to entering the Japanese market the following summer because this would be the perfect opportunity for them to expand their business and market share. If Ben & Jerry’s enters the Japanese market, it will increase their profits since Japan is one of the most affluent countries in the world. Their consumers are known for demanding high quality products with great varieties regarding flavors and styles which is something that Ben& Jerry’s specializes in with their different ice cream options. Incomes in Japan have also seen an increase from the 1950s to the 1980s which makes it a wonderful market to enter and generate business. Consumers would be more willing to purchase their product since it is affordable and incomes does not seem to be an issue. Ben & Jerry’s international sales are totaled at a mere three percent of total sales compared to Haagen-Dazs whose non-U.S. sales are an astronomical $700 million. If Ben & Jerry’s entered the Japanese market, which is seemingly profitable, it would definitely help to obtain more sales and expand their market share. Ben & Jerry's should commit to entering the Japanese market due to the decreasing market share of the domestic sales, Ben & Jerry's net income is decreasing since 1994, and it still has excess capacity in the factory. Most of the sales of Ben & Jerry are domestic sales. If it wants to gain sales, the most efficient way is overseas expansion. Entering the Japanese market would mean that the pros exceed the cons for Ben & Jerry's, because Japan is the second largest Ice Cream market in the world and it has a high-profit margin. Moreover, the tariff of imported commodities in Japan will decrease later on.

2.     If Ben & Jerry’s were to enter the Japanese market the following summer, should it do so with Mr. Yamada or with Seven-Eleven? Why?

To better understand who Ben & Jerry’s should choose to work together with, you have to understand place in the marketing mix, which is a critical value-chain activity. Place is often the substitute for the word “distribution” which basically is channels that exists to create utility for customers, inform of place, time, form, and information. As for Ben & Jerry’s, they are currently looking into who would be the best distributor of their product in the Japanese market, so that they can become a global company. A distributor is a wholesale intermediary that typically carries product lines or brands on a selective basis. This means that Ben & Jerry’s is expanding across national boundaries by being indirectly involved. They are utilizing independent retailers as their distribution channels.