International Marketing Report: Ben & Jerry's Strategy Analysis

This report provides a comprehensive analysis of Ben & Jerry's international marketing strategy, focusing on the US and Indian markets. The report begins with an introduction to international marketing, followed by a PESTLE analysis of Ben & Jerry in the USA, examining political, economic, social, technological, legal, and environmental factors. Porter's Five Forces model is then applied to analyze the competitive landscape of the ice cream industry. The report further explores the Indian market, detailing segmentation, targeting, and positioning strategies for Ben & Jerry. The analysis covers geographic, demographic, psychographic, and behavioral segmentation approaches. Finally, it discusses brand positioning based on product quality, premium brand image, status relevance, and brand recognition. The report concludes with strategic recommendations for further growth and international expansion, offering valuable insights for marketing professionals and students alike.

qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmqwertyu
iopasdfghjklzxcvbnmqwertyuiopa
sdfghjklzxcvbnmqwertyuiopasdfg
hjklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxcv
bnmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqwe
rtyuiopasdfghjklzxcvbnmrtyuiopa
INTERNATIONAL MARKETING
6/29/2019
Student name

INTERNATIONAL MARKETING 1
Contents
Introduction......................................................................................................................................2
Task 1...............................................................................................................................................3
PESTLE analysis of Ben and Jerry in the United States.................................................................3
Political factors............................................................................................................................3
Economic factors.........................................................................................................................4
Social factors...............................................................................................................................6
Technological factors...................................................................................................................8
Legal factors................................................................................................................................9
Environmental factors..................................................................................................................9
Porters five force model.................................................................................................................10
1. Threats of new entrants..........................................................................................................10
2. Substitute products.................................................................................................................10
3. Bargaining power of suppliers...............................................................................................10
4. Bargaining power of buyers...................................................................................................11
5. Rivalry among industry.........................................................................................................11
Task 2.............................................................................................................................................12
Segmentation, target, and positioning of Ben and Jerry in India...................................................12
Targeting and Segmentation......................................................................................................12
1. Geographic.........................................................................................................................12
2. Demographic......................................................................................................................12
3. Psychographic....................................................................................................................13
4. Behavioural........................................................................................................................13
Positioning.................................................................................................................................14
1. Product quality...................................................................................................................14
2. Premium brand...................................................................................................................14
3. Status relevance.................................................................................................................15
4. Brand recognition..............................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

INTERNATIONAL MARKETING 2
Introduction
International marketing includes conducting business, selling goods and services outside the
home nation of the company that is outside the domestic boundaries. It can be said that in
international marketing there are numerous elements that the company necessities to assess
critically while entering into a new market, the reason being the company opportunity and risk
must be known well before entering into the country for conducting business (Kumar,
Harmeling, & Palmatier, 2018). For instance, the company’s external environment is largely
responsible for the business decision and analysing the required opportunities that the company
may consider for gaining competitive advantage over other competitors in industry. The report’s
persistence is to assess the company’s external environment that would be Ben and Jerry for this
report. The report will include key external factors of the company that will be helpful in
assessing the crucial opportunities and threats for the corporation and the current environment in
which the corporation is conducting business to understand the factors that will affect the
business in host nation as well (Bruns, 2013). For this PESTLE analysis will be considered,
which is the strategic framework helpful to assess the factors like political, legal, economic,
technological, environmental, and social factors of a nation. Moreover, in order to assess the ice-
cream industry in which Ben and Jerry are dealing would also be critically analysed using one of
the popular and helpful strategic tool, porters five force model. Moreover, key targeting strategy,
customer segmentation for the company and brand positioning of the strategy of the company for
conducting business in another foreign market would be included. The selected foreign market
other than the home country of the company would be India, for which STP of Ben and Jerry
would be discussed in the report further (Baker & Bowen, 2015).
Ben and Jerry homemade holdings Inc. is one of the American company originated in 1978 in
the United States. The company is dealing in sorbet, frozen yogurt, and ice cream. The key
strengths of the company identified were the brand awareness and brand recognition in home and
various host nations due to the premium brand image of the company. However, there are a
various weakness as well like the corporation has only been capable to target large revenue
group and health consciousness among the customer are increasing which has decreased the
interest of the customer in ice creams (benjerry, 2018).

INTERNATIONAL MARKETING 3
Task 1
PESTLE analysis of Ben and Jerry in the United States
For analysing the external environment of Ben and Jerry PESTLE analysis will be used. The
analysis includes six major factors of a nation that either will affect positively or could be
challenging for the company to conduct business.
Political factors
Political factors are a utmost significant factor that will influence the business condition in USA,
the key elements that are included in political factors are political stability of country, The
corruption level in the nation and various other elements.
Figure 1: (Source: (theglobaleconomy, USA/wb_political_stability, 2019)
From the graph above it can be said that the political stability of the USA has identified to be
decreased since 2015, this may be negatively impact on the business of Ben and Jerry. Political
stability ensures that the business conduct in the nation would be consistent and success rate will
be higher. Thus, it can be said that political stability could be one of the challenging factors
among the political factors of the USA for Ben and Jerry.

INTERNATIONAL MARKETING 4
Figure 2: (Source: (theglobaleconomy, USA/wb_corruption, 2019)
Another key element includes corruption level in the nation, according to the statistics control of
corruption of the USA is quite consistent since 2015. How are you on the same hand it can be
said that the control of corruption is not very strong in the USA, which reflects that the company
would face challenge considering corruption in the nation. Therefore it can be said after
analysing the two major elements of political factors that is political stability and control of
corruption that the political factors of the USA are the key challenges or threat to Ben and Jerry.
Economic factors
Economic factors are another key external environment to factor that will impact the sales,
profitability, financial viability of the company in the USA. The key elements that will be
included in economic factors of a Nation our GDP of the company, corporate tax rate that the
company has to pay in the nation and various other elements.

INTERNATIONAL MARKETING 5
Figure 3: (Source: (theglobaleconomy, 2019)
The GDP of USA is observed to be increasing since years, as per the graph presented above that
reflect that the purchasing power of individual’s information has also been increasing which will
influence as the opportunity for Ben and Jerry to target high-class customer segmentation. GDP
of the country depicts and affect the profit margin and sales of the company. Therefore, it can be
said that the increase in GDP per capita of the USA acts as an opportunity for Ben and Jerry to
earn more profit while conducting business in the nation. This will also reflect in consumer
behaviour as the customers will be interested in purchasing luxury products and products that
they want instead of just accomplishing their needs (Gong & Yi, 2018).

INTERNATIONAL MARKETING 6
Figure 4: (source: (theglobaleconomy, USA/corporate_tax_rate, 2019)
Another element of economic factors it is corporate tax rate, which is consistent of USA since
2016 to 2017 that is 40% corporate tax rate, from 2018 the corporate tax rate has drastically
decreased to approximately 26% which is same for 2019. This has affected largely in the
financial viability and profit margin of Ben & Jerry’s and other companies conducting business
in the USA. Therefore it can be said that the corporate tax rate element of USA is another
element that can be considered as an opportunity for the corporation toward investing higher and
target more customer in the nation. In the end, it can be said that the economic factors are the
opportunities and beneficial for Ben and Jerry to invest and conduct business in the USA
(Robson & Zeriti, 2014).

INTERNATIONAL MARKETING 7
Social factors
Social factors include the culture and demographic factors of the nation, the key elements
included in social factors are urban population Sushil globalisation culture and changing social
trends in the USA. For ice cream industrial, social factors would be very much important to
analyse due to changing trends in the nation and changing consumer perceptions. Considering
statistics regarding the Open population as presented below has been increasing, which reflects
that maximum customers or maximum population of the USA are from urban areas. This would
impact greatly own business of Ben & Jerry’s has been injury has been targeting urban
population and by increase in urban populace, the opportunity for Ben and Jerry will be
increased and will be advantages for Ben and Jerry to conduct business in the USA.
Figure 5: (Source: (theglobaleconomy, USA/Percent_urban_population, 2019)

INTERNATIONAL MARKETING 8
Figure 6: (Source: (theglobaleconomy, USA/kof_soc_glob, 2019)
Another element that can be assessed through statistics are social globalisation, this index
reflects three key dimensional that is information flow personal contact and cultural proximity in
the nation the index for the USA. This index depicts the level of personal contacts of the nation
across the domestic borders through migration, travel, remittances and various other modes. It
also measures the flow of information from the US to other parts of the world through various
telecommunication modes that is Internet, mail, televisions. As per the statistics, this index has
found to be increasing since years which reflects that the social globalisation has become strong
for the country which could be opportunities and beneficial for Ben and Jerry to conduct the
business more efficiently in the nation (Hu, Krush, & Agnihotri, 2016).
It has been observed that the obesity rate in the nation has been increasing which has increased
the awareness regarding the health and increase the health conscious population in the nation
which has negatively impact the ice cream industry and also Ben and jerry business in the nation.
In order to overcome this social change, the company needs to have a strong strategy to target the
health conscious population as well. Therefore, it can be said that the social factors of the nation
are acting as the opportunity for the company to grow and conduct business effectively (Menon
& Edison, 2015).

INTERNATIONAL MARKETING 9
Technological factors
Technology has always been advanced for the USA and it has also been observed that the
country is one of the most technically advanced nations, this could be an opportunity for Ben and
Jerry to conduct business more efficiently and with use of high technology and digitalisation
(Jaworski, 2018).
Legal factors
Figure 7: (Source: (theglobaleconomy, USA/wb_ruleoflaw, 2019)
The legal factors related to Ben and Jerry would be health and safety norms advertisement rules,
environment laws and guides, legal protection for patents, copyright and other intellectual
property in the USA, and data protection laws as well. According to the statistics, the rule of law
of the nation has always been strong, which reflects that the company could conduct business as
per the legal norms and with increased safety in the nation that is beneficial or actors opportunity
for the company.
Environmental factors
Since the USA is developed nation environmental issues has all these been major problem in the
nation which could include use of energy, water scarcity, climate change and other

INTERNATIONAL MARKETING 10
environmental issues that the company needs to abide and for which Ben and Jerry have initiated
various corporate social responsibility and initiatives(Doole & Lowe, 2008).
Porters five force model
For analysing the in ice cream industry in the United States, one of the strategic framework that
will be helpful in analysing the industrial factors that will affect the business of ben and jerry and
strategic decision relevant to Ben and Jerry (Chari & Feng, 2018).
1. Threats of new entrants
Considering the ice cream industry in the United States with companies entering into the industry
does not face any major barriers. However, Ben and Jerry have increased the business to a
greater extent, which depicts that the company entering into the market would need a huge sum
of investment and time to compete with the company (Thomson, 2016). Howsoever the new
company could be entered into the ice cream market with new flavours and more innovative
ideas, which would eventually increase the threat of new entrants for Ben and Jerry (Dobbs,
2014).
2. Substitute products
Considering the USA in the ice cream industry, the key substitute products include yogurt and
other dairy products. Since the health issue has been identified and the customer awareness has
also been increasing years, the customer may switch to substitute products like yogurt instead of
I screams because of health issues, especially increase in diabetic Rate (Zhang J. , 2015).
Therefore it can be said that these frozen food industry can be one of the key competition to Ben
and Jerry for which the company needed super premium market and other defensive strategies in
order to overcome the threat. At the end it can be said that the substitute goods can be a major
threat to Ben and Jerry (Ogutu & Mathooko, 2015).
3. Bargaining power of suppliers
The key suppliers for Ben and Jerry include dairy farmers, flavouring suppliers, packaging
products manufacturers. Since Ben and Jerry have a large production of ice cream and one of the
major companies in the production the suppliers bargaining power is quite less due to the large
availability of raw materials required by the company (Yen, 2017). Moreover, in order to

INTERNATIONAL MARKETING 11
decrease the bargaining power of suppliers the company has created an agile supply chain.
Therefore, the evidence suggests that the bargaining power of suppliers is not a foremost risk to
the corporation (Chatzoglou & Chatzoudes, 2018).
4. Bargaining power of buyers
Customer is the key stakeholders for the company, considering the ice cream industry in USA
Key buyers for Ben and Jerry include high income group people who are interested in having
high quality and different products. It can be said that the switching cost for the buyers is very
low and people are generally interested in trying new brands as per the taste and preference and
availability of different flavours in ice cream industry (Vellas, 2016). Therefore, the evidence
suggest the bargaining power of buyers is quite high, for which Ben and Jerry, Needs to maintain
high quality product and bring innovation to the products that are different flavours ice cream
(Sharma & Gautam, 2017). Moreover, Ben and Jerry must work for the maximum customer
satisfaction for increasing the brand loyalty and increase the swapping cost for the customers so
as to retain maximum customers as it is the major challenge in this industry (Balmer & Abratt,
2016).
5. Rivalry among industry
Ice cream industry includes various customer segment to be targeted and there is a various
number of brands that a serving same product line. In the USA, people are found to be interested
in fast food and various different flavours in food and desserts. Because of this, the opportunity
for companies to invest in the nation in this business is quite high that has increased the
competition in the industry to a greater extent (Chung T. , 2015). The key competitors of Ben
and Jerry are Hagen Das as a direct and primary competitor. The reason being the company has
been working to words super premium ice cream industry for which this may be the primary
competitor of the company due to similar customer segment targeted and very close competition
(Mohd & Sasmita, 2015). This force of the industry has a major impact over the business and
strategic decisions as this switching cost for the buyers are very low. Therefore it can be said that
the rivalry in the business is very large and the risk for the company is high too however the
company can gain a competitive advantage over primary and other competitors for the brand
(Betton, 2017).