Ben & Jerry's Finance Report Essay

1904 Words Oct 23rd, 2001 8 Pages
Group 1

Managerial Finance
26 Aug, 1999

A Little History: Ben & Jerry's, Vermont's Finest Ice Cream and Frozen Yogurt, was founded in 1978 in a renovated gas station in Burlington, Vermont, by childhood friends Ben Cohen and Jerry Greenfield with a $12,000 investment ($4,000 of which was borrowed.) They soon became popular for their innovative flavors, made from fresh Vermont milk and cream. The company works to employ its Mission Statement in as many day to day business decisions as possible so that the company is profitable and the community can profit by the way Ben & Jerry's does business. Corporate Profile: Ben & Jerry's Homemade, Inc. is a Vermont (USA) corporation. They make super premium ice cream, frozen yogurt, and ice
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Their annual costs for cream alone increased by more than $7 million over 1997. Offsetting the increased dairy commodity costs were savings at the manufacturing level, resulting from better plant utilization and higher volumes. Current projections on dairy pricing are encouraging, suggesting that they will not experience as substantial an increase in dairy costs in 1999 as compared to 1998.
Gains in their sales and market share growth can largely be attributed to the strategic reinvigoration of the Ben & Jerry's brand. Of significant impact was their package redesign, a fresh new look that has proven to be popular among Ben & Jerry's loyalists and new consumers alike. As awareness of the Ben & Jerry's brand has increased, so has household penetration-up Group 4
24% over last year, from 4.5% of U.S. households in 1997 to 5.6% in 1998. In round numbers, that means they've added an impressive one million households as their customers.
Reaching customers, both existing and new, was a high priority in 1998. During the summer, they supported the brand with their second successful foray into national radio advertising, targeting 16 key markets with the popular "phone fan" campaign. The advertisement dovetailed with trade promotion and key retailer marketing programs, bolstering domestic performance while leveraging their

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