Ben & Jerry's - Brand Preservation
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MBA 6106 - Marketing Ben & Jerry's Case Presentation February 10, 2010
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Ben & Jerry's - Brand Preservation
- 1. Preserving Mission and Brand Within Unilever
- 2. Agenda Situation – Chris Ben & Jerry’s Background – Kai Unilever Background – JC Problem: Low Employee Morale – Listya Problem: Social and Environmental – Joanna Action Plan – Chris
- 3. Statement of the Problem In September 2000, Ben & Jerry’s transitioned from an independent-minded premium ice cream maker to a division within a multinational corporation 2004 – head of Social Mission compiled data for Social and Environmental Assessment report Candid look at Ben & Jerry’s operation Three-part mission “linked prosperity”
- 4. The Stakeholders Ben & Jerry’s Employees Customers State of Vermont Unilever Franchises Shareholders
- 5. The Big Questions How to get back on progressive footing? Being an “edge-dweller” How to remain competitive in your business practices while remaining true to your company’s mission statement?
- 6. Ben & Jerry’s Company Background Premium ice-cream maker Socially conscious Ben and Jerry’s Foundation 1% For Peace Generous employee treatment Onsite day-care center No-layoff policy “No higher than five times” Cartoony, fun, and responsible
- 7. History 1978: First homemade ice cream scoop shop 1979: First-ever Free Cone Day 1984: Public stock offering 1986: “Cowmobile”
- 8. History (cont.) 2000: Announced acquisition by Unilever
- 9. About Unilever Headquartered in the United Kingdom Owns many well-known brands Dove Lipton Calvin Klein 246,000 employees in 1999 Business in over 150 countries
- 10. About Unilever cont. One stated priority is “environmental responsibility” Conducts environmental audits at 90% of factories Screened its fishery suppliers for sustainability
- 11. About Unilever cont. Another stated responsibility is “responsible corporate behavior” Established a Company Code of Business Principles Spent £26 million on community involvement in 1999
- 12. Acquisition of Ben & Jerry’s by Unilever Pre-deal commitments Ben & Jerry’s would retain brand name All employees would be retained for two years Unilever would contribute $5 million to the Ben & Jerry’s Foundation Created a “external board” to assist the new CEO with managing the brand The board could file lawsuits if they felt Unilever was not living up to the agreement
- 13. The Acquisition cont. After the merger Replaced the 7.5% of pretax profits to a percentage of sales with a minimum of $1.1 million for ten years. Updated computer systems and supply chain Kept the local suppliers of all-natural milk
- 14. Problem: Low Employee Morale Causes: Layoffs due to restructuring efforts Unilever’s tighter code of conduct Uncertainty in changing from a small business to a multinational corporation
- 15. Possible Solutions: Low Employee Morale Unilever to provide “Old Town Hall Meeting” situations Gives employees voice Give Ben&Jerry’s leeway on action within political/social forum More passive Matching employee donations to charity Time Money
- 16. Possible Solutions: Low Employee Morale Continue with generous severance package Assist with job placement upon layoffs Internal communications campaigns Boost employee morale from within External board Represents Ben & Jerry’s employees
- 17. Problem: Losing Brand Loyalty Causes Ben & Jerry’s was a child of the 70’s, an icon in progressive politics and social issues Employees no longer free to drive the Ben &Jerry’s van out for rallies Unilever’s Code of Business Principles stating “No support for political parties or promotion of any parties’ interests” (i.e. Iraq war)
- 20. Possible Solutions: Declining Support to The Ben & Jerry’s Foundation Solutions Set protocols to allow employees to donate time for community volunteerism Partnerships between franchises and particular causes Establishing a Ben & Jerry’s-branded flavor for a cause (i.e. Rainforest Crunch)
- 21. Problem: Artificial Sweetener Conflict Causes Market demand for low-carbohydrate products Contrary to mission statement Threat to pride in “process-chlorine-free” packaging
- 22. Possible Solutions: Artificial Sweetener Conflict Use low-fat yogurt Chlorine no longer an issue in packaging Maintain “all natural” values
- 23. Action Plan – Unilever Survey Ben & Jerry’s employees Focus on improving employee morale Formal guidelines on political involvement Approved list of organizations and causes Encourage employee action plans for reasons to support causes Research environmentally friendly alternatives to meet market demands
- 24. Action Plan – Ben & Jerry’s Internal PR campaign focused on employees Promote what Unilever has done for company Shift focus away from the negative Get back to grass roots Ben & Jerry’s mentality Promotions for website Social and environmental causes Passive support for political agendas
- 25. Questions?
Notas do Editor
- As we all know that Ben and Jerry’s is a well known premium ice-cream maker, which was founded by two friends Ben Cohen and Jerry Greenfield. Ben and Jerry’s is not only famous for their high quality ice-cream, but also known for their socially consciousness. They claim that their mission is more than just maximize its shareholders’ profit, they also want to operate a company which can improve the quality of human lives. The company founded Ben and Jerry’s foundation which aim to make the world a better place by eliminating the underlying causes of environmental and social problems. It also helped establish the nonprofit initiative “1% for peace” with a stated goal to redirect 1% of the national defense budget to fund peace-promoting projects and activities.Internally, Ben and Jerry are very generous to their employees. The company’s benefit package including an onsite day-care center, and no-layoff policy. Ben and Jerry also claimed that in the company the salary of the highest-paid employee would be pegged at no higher than five times the salary of the lowest-paid employee.Overall, Ben and Jerry’s image in people’s minds is cartoony, fun and also socially responsible.
- Here is a little bit history about Ben and Jerry’s:In 1963,Ben and Jerry first met each other in New York when they were in 7th grade, and since then they came long-life friends.Both of them moved to Vermont and completed a $5 correspondence course in ice cream-making from Penn State university in 1977, and in the next year, with $12,000 investment, they opened their first Ben & Jerry’s Homemade ice cream scoop shop in a gas station.Theycelebrated their one-year anniversary in 1979 by holding the first-ever Free Cone Day. On that day, they offer free scoop of ice-cream all day long. Right now the “Free Cone Day” is an annual celebration at Ben & Jerry’s Scoop Shops nationwide.1984 in a very important year for Ben and Jerry, in that year Ben and Jerry established a Vermont-only public stock offering to raise money for a new manufacturing facility to expand their business.Two years later, they introduced very first Cowmobile, which is a modified mobile home used to distribute free scoops of Ben & Jerry’s ice cream in a “marketing drive” and it was driven and served by Ben and Jerry themselves.
- During later 1980s and 1990s, Ben and Jerry’s was growing very rapidly, the total sale in 1984 is $4m, 15 years later, in 1999, the company’s total sale is close to $240M, with a 35% avg growth rate