Introduction
Ben & Jerry’s growth within the US has plateaued. Even though sales are in a good place, net profits are declining steadily and market share is decreasing. With much of the distribution channels in the United States exhausted, it is clear that any new growth must come from international sources. Efforts to expand into other countries have failed in the past, but we are optimistic about stimulating growth by entering the Japanese market.
There are three available options to enter Japan. Ben & Jerry’s can partner with Ken Yamada or 7-11, or they can enter alone. This opportunity to distribute in Japan has great potential and a large possible profit margin, but each entrance plan has significant risks.
In this analysis, we will discuss the benefits and drawbacks of each option and show that partnering with 7-11 to gain entrance to Japan gives us the best chance at success in the long run.
Current Situation
Before we can explore the options for entering the super premium ice cream market in Japan, we must first evaluate our internal and external issues and determine what we do well and where we come up short.
Internal Situation
Our biggest strength is the fact that we have a different product. While …show more content…
Haagen-Dazs is so dominant in the Japanese market that it may be difficult to get established and gain recognition from consumers. In Japan, ice cream is also primarily eaten as a snack and is less sweet than normal ice cream. This could lead us to having to alter the product itself and change the serving sizes. Another threat is that the social mission may not have much of an impact in Japan. The social aspect is very important to how we run our company, and without it, we are straying away from our mission. High tariffs placed on goods shipped to Japan can also have a negative effect on how much profit we earn in the long run, unless the tariff
Ben & Jerry’s growth within the US has plateaued. Even though sales are in a good place, net profits are declining steadily and market share is decreasing. With much of the distribution channels in the United States exhausted, it is clear that any new growth must come from international sources. Efforts to expand into other countries have failed in the past, but we are optimistic about stimulating growth by entering the Japanese market.
There are three available options to enter Japan. Ben & Jerry’s can partner with Ken Yamada or 7-11, or they can enter alone. This opportunity to distribute in Japan has great potential and a large possible profit margin, but each entrance plan has significant risks.
In this analysis, we will discuss the benefits and drawbacks of each option and show that partnering with 7-11 to gain entrance to Japan gives us the best chance at success in the long run.
Current Situation
Before we can explore the options for entering the super premium ice cream market in Japan, we must first evaluate our internal and external issues and determine what we do well and where we come up short.
Internal Situation
Our biggest strength is the fact that we have a different product. While …show more content…
Haagen-Dazs is so dominant in the Japanese market that it may be difficult to get established and gain recognition from consumers. In Japan, ice cream is also primarily eaten as a snack and is less sweet than normal ice cream. This could lead us to having to alter the product itself and change the serving sizes. Another threat is that the social mission may not have much of an impact in Japan. The social aspect is very important to how we run our company, and without it, we are straying away from our mission. High tariffs placed on goods shipped to Japan can also have a negative effect on how much profit we earn in the long run, unless the tariff