ben & jerry’s homemade inc
Post on 28-Mar-2015
73 Views
Preview:
TRANSCRIPT
DEEPAK SINGH 4109012012
SUMMARYy 1978- $5 CORRESPONDENCE COURSE y BEN COHEN & JERRY GREENFIELD = $ 12000 y NOW $ 140 Mn COMPANY y MAIN RIVAL
HAAGEN DAZS y DONATIONS & POLICIES PROMOTING CORPORATE RESPONSIBILITY LEADS TO SUCCESS
MID 1994
SALES FLAT PROFIT DECREASE
STOCK PRICE DECREASE
CONTESTy YO ! I AM YOUR CEO! y BEN
STEP DOWN FROM CEO POST. y SALARY CAP y 22500 ASPIRANTSy STRATEGY BEHIND CONTESTy BRAND PROMOTION y MARKETING y INTERNATIONAL EXPOSURE
WINNERy R. HOLLAND, AGE 55, POEM y PARTNER AT McKINSEY & Co. y EXECUTIVE RECRUITMENT FIRM y TWO FINALIST y EXPERIENCED IN TURNING TROUBLED Co y SALARY- $250,000 + 180,000 STOCKS = BONOUS
UPTO $ 125,000
OLD DAYSy FAMOUS FOR INNOVATIVE FLAVOURS y 3 PART MISSION y TEAM - FAMILY ORIENTED ATMOSPHERE y JOY COMMITTEE y RELATION NWITH THEIR SUPPLIER y rBGH, DRUG y 7.5% PRETAX PROFIT- DONATE y MEDIA COVERAGE ON SOCIAL VALUES GIVES
THEM PROMOTION & PUBLICITY
RECENT TROUBLESy NEW FDA RULE y POOR QUALITY OF PRODUCT y INCREASED COMPETITION H & J y PRICE WAR y NESTLE HELPS EDY s y LESS CONCENTRATION ON EXPORT /
RESTAURANT y PROBLEMS IN NEW St.ALBANS PLANT y MANAGEMENT
INDUSTRY LANDSCAPE1994 US SALES
SUPER MARKET SUPER PREMIUM MARKET
$3.6 Bn
GROSS MARGIN 30 %
$415 Mn
MARKET SHARE1989-93 =14% GROWTH RATE Ben & JERRY = INCREASED BY
120 %Relation with distributers &
suppliers
FINANCEy 1988- 1992 =SALES INCREASED 30% y 1993 =SALES DECREASED 6 % y 1991 =NET INCOME 42 % & SALES 26 % y 1992 =NET INCOME 81 % & SALES 36 % y COMPANY PROFIT MARGIN = 5.1 % y INDUSTRY PROFIT MARGIN = 3.4 %
MARKETINGy SUPER PREMIUM ICECREAM IN CHUNKY y y y y
SMOOTH ICECREAM LOW FAT YOGHURT R&D TEAM BROWNIE BAR= FAILED PEACE POPS = SUCCESS
PLACEy SUPERMARKET, GROCERY STORES,CONVINIENCE
STORES y 105 LICENSED SCOOP SHOPS y INCREASE DISTRIBUTION BY OFFERING GIFTS VIA MAIL y RESTAURANT WAS IGNORED
PRICES & PROMOTIONy BEN & JERRY GREW AT HAAGEN-DAZS COST y HD IS A GIANTCo. y EDIBLE ACTIVISM y MUSIC FESTIVALS y TOURIST ACTIVITTY IN PLANT y IN-HOUSE AD
OPERATIONy PLANT y WATERBURY y SPRINGFIELD y St. ALBANS- NEW ONE y ONLY 1 NEW MACHINE SO FAR y AGAINST AUTOMATIO AS IT WILL ELIMINATE
JOBS.
HRy IMPORTANT ASSETSy A- BEN y B- JERRY y EMPLOYEES ARE PART OF DECISION y LOTS OF BENEFITS TO EMPLOYEE y HOLLAND RESIGNED IN 2 YEARS BY STATING A
NEED OF PERSON FROM CONSUMER PRODUCT EXPERT.
MISSIONPRODUCT
TO MAKE SELL DISTRIBUTE THE FINEST QUALITY , ALL NATURAL ICECREAM& RELATED PRODUCTS IN A WIDE VARIETY OF INNOVATIVE FLAVOURS MADE FROM VERMONT DAIRY PRODUCT. TO OPERATE THE COMPANY IN A WAY THAT ACTIVELY RECOGNISES THE CENTRAL ROLE THA T BUSINESS PLAYS IN THE STRUCUTRE OF SOCIETY BY INITIATING INNOVATIVE WAY TO IMPROVE THE LIFE BROAD COMMUNOITY TO OPERATE THE COMPAANY ON A SOUND FINANCIAL BASIS OF PROFIT GROWTH,INCREASING VALUE FOR OUR SHAREHOLDERS, & CREATING CARRIER OPPORTUNITIES & FINANCIAL REWARDS FOR OUR EMPLOYEES
SOCIAL
ECONOMIC
VISIONy TO MAINTAIN THE SOCIAL RESPONSIBILITIES
ALONG WITH TAPPING THE MARKET TO BECOME THE MARKET LEADER IN ICE CREAM INDUSTRY.
SWOT ANALYSISWEAKNESS LACK OF PROFESSIONALISM LESS MARKETING IGNORANCE OF OTHER MARKET
STRENGTH EMPLOYEES SOCIAL VALUES INNOVATIVE PRODUCTS ENVIRONMENTAL RESPONSIBLE
OPPORTUNITIES OVERSEAS MARKET RESTAURANT 5 TO 14 AGE GROUP MORE HEALTHY PRODUCTS
THREAT TASTE CHANGE CONTAMINATION IN FOOD SUPPLY SHORTAGE OF MILK COST OF SKIMED MILK POWDER
PEST ANALYSISPOLITICAL SUFFERED B COZ OF FDA NEW RULE ECONOMICAL SUFFERED IN PRICE WAR AS PRICES OF INGREDIENTS WERE INCREASING & PRICE WAR ALSO
BEN & JERRY
SOCIAL HEALTH CONSCIOUS CHANGE IN TASTE
TECHNOLOGICAL NO EFFECT AS SUCH R&D
ENVIRONMENTAL ANALYSISy DIRECTLY ENVIRONMENT DO NOT AFFECT
CORPORATE CULTURE & BASIC VALUESy HELATHY WORKING ENVIRONMENT y JOY COMMITTEE y SALARY PAID TO EXECUTIVE
NOT MORE THAN 7 TIMES LEAST PAID EMPLOYEE SALARY y MINORITY /WOMEN y SOCIALY RESPONSIBLE y DONATES A PORTION OF PROCEEDS FROM SALES
MARKET ANALYSISy FUTURE PROSPECTS ARE VERY GOOD y GROWTH RATE 12 % y IN INDIA
INDUSTRY IS WORTH OF Rs 2,000 Cr. y PER CAPITA CONSUMPTION IS VERY LOW- 300 ml ,WHILE 22 ltrs = US, 18 ltrs = AUSTRALIA , 14 ltrs IN SWEDEN y Profit margin upto 100 %
ICE CREAM INDUSRY
BRANDED MARKET
GREY MARKET
100 Mn ltrs, Rs 800 cR
COMPETITION ANALYSIS
THREAT OF NEW ENTRY
THREAT OF SUBSTITUTE
INTENSITY OF COMPETITION
FIVE FORCE MODEL
POWER OF SUPPLIER
POWER OF BUYER
PRESENT CHALLANGESy DIOXIN CHEMICAL y SUBSITUTES FOR DSSERTS y POOR INFRASTRUCTURE / LACK OF
INFRASTRUCTURE y RURAL PENETRATION y POWER SUPPLTY y BIG PLAYERS
SHARE HOLDERS VALUE CREATIONy INVESTORS SUFFERED y COZ COMPANY INVEST HUGE IH SOCIAL ASPETS y DIVERSION OF REVENUE y INCREMENTAL CAPEX
top related