Entering Foreign Markets; Research, Marketing and Strategy
Entering Foreign Markets; Research, Marketing and Strategy
"Ben And Jerry's"
Given Ben & Jerry’s track record in entering foreign markets, does it make good strategic sense for Ben & Jerry to commit to entering the super premium ice cream market in Japan? Why or why not? What prior “mistakes” will it need to avoid?
Ben & Jerry’s had been traditionally slow to enter into the foreign market they have lost market share to both Haagen-Dazs and other ice cream suppliers. Ben & Jerry’s had begun to inquire about the Japanese market in the mid 1990s. Japan represents the second largest ice cream market in the world, with annual sales of about $4.5 Billion, but there are high barriers to entry. Ben & Jerry’s would be a late entrant, more than 10 years behind Haagen-Dazs initial entry, and there are at least 6 Japanese ice cream manufactures selling super premium products. Ben Cohen, one of the founders of Ben & Jerry’s, was opposed to growth, so the company had limited adventures overseas therefore had limited opportunities. Haagen-Dazs had no hesitation and by 1997 it was in 28 countries with 850 dipping shops around the world. Haagen-Dazs non-U.S. sales were about $700 million, compared to Ben & Jerry’s sales of $6 million. Haagen-Dazs had completely taken over the international market by entering when the barriers to entry were low and now they are high. It makes sense for Ben & Jerry’s to enter the market in order to gain whatever market share that is possible, but since barriers to entry are so high they have to find a way to enter the market and get recognized whether it is through Seven-Eleven or by using Mr. Yamada. Entering is also a great idea if they proceed with the Seven-Eleven marketing plan. This plan allows Ben & Jerry’s to enter into 7,000 Seven-Eleven store shelve, but still competing with other brands. Also Ben & Jerry’s would not have to promote its super premium ice cream is since it is already part of the ice cream market(for example Haagen-Dazs) and Japanese people are aware of it. A plus for this is that convenience stores appeared to account for about 40% of super premium ice cream sales in Japan, and Seven-Eleven was Japan’s largest chain.
What resource strengths/ competitive assets does Ben & Jerry’s have to support entry into Japan? What resources weaknesses/ competitive liabilities does Ben...