Ben and Jerry’s Entering into the Japanese Market

Ben and Jerrys ledger entry into the lacquerese Market sy Ihart2dance19 Ben Jerrys Homemade, Inc. produces super premium internal-combustion engine-skating rink unction, frozen yogurt, and scrap emollient novelties in rich and original flavors. The family grasss its unique offerings In grocery stores, restaurants, and immunityd Ice skim over shops, and it holds about(predicate) third base of the grocery store for its products. This global high society began with only a $12,000 Investment to surface Ben Jerrys Homemade Ice cream scoop shop In a renovated gas station in d causetown Burlington, Vermont, on May 5th, 1978.From cardinal mall shop In downtown Burlington, the political party had grown to oerwhelm a kitchen range of nearly 100 franchised shops, and a line of products interchange in stores across the country. As one of the leading superpremium folderol cream (greater richness and density than new(prenominal) kinds of Ice-cream and Is therefore sold at a relatively high price) manufactures, Ben Jerrys has to continually expand and develop to compete with otherwise leading brands. The united States Is one of the braggart(a)st exporting nations as well.The united States sells products to other countries because no country whoremonger roduce all of the products the people want. In 1994, den Jerrys starting considering advancing into the Japan ice cream commercialize place, the second largest ice cream market in the gentleman with sales of approximately $4,5 billion. tally to the survey conducted by What Japan Thinks, nearly 2 out of 5 Japanese eat ice cream every week. However, Japan is a great distance from the united States and it would be complicated to distrisolelye the Items to Japan.Japans barriers to Imports from immaterial countries were high and Ben Jerrys were move into the Japanese ice cream market 0years atter Its competitors, much(prenominal) as Haagen-Dazs. According to the survey by What Japan Thinks, the biggest factor in ice cream get is by flavor and taste. The Japanese consumers imply high-quality products with different flavors. The demands of the Japanese coincide directly with the product mission line of Ben Jerrys which is to make, distribute and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to Incorporating wholesome, natural ingredients. So establish on the quality and flavors of Ben & Jerrys, the ompany doesnt produce to change their recipes or ingredients to be hot In the Japanese ice cream market. However, In Japan ice cream is considered a snack more so than a dessert, so to be user- friendly to the Japanese, Ben Jerrys should package their Ice cream In individualized cups as well as their point sized package. Additionally, the Japanese be very clean and conscience of sanitation, so having Individual serving would be more appealing to the Japanese people.According to What Japan Thinks, the most popular purcha se of ice cream is a single-serving cup ot ice cream. When It comes to perish suitable goods, supermarkets search to be much stricter In Japan than In the west about moving on stock before it gets old. It Is very important for a product to hit a good reputation, especially in Japan, and if a product Isnt good quality no one will obtain the product. Ben Jerrys should make sure that their products argon being monitored, and if the ice cream is pissed to perishing, they should make sure It gets thrown out, or then their reputation can be ruined In a 1 Ofa minute. nen Ben & Jerrys aec10e now tney wlll confine tnelr product to Japan, hey have to take into account the socio heathen forces and cultural differences amidst America and Japan. Although shipping to Japan is not the easiest task, Ben & Jerrys is an open corporate company who has been shipping ice cream to the West Coast and to Europe in freezer containers. Ben & Jerrys needs to create an efficient supply chain, the seque nce of tie in activities that must be performed by various organizations to move goods from the sources of raw materials to eventual(prenominal) consumers, so the company can then ship out their products smoothly.The company hen has to find the best approach to their physical distribution, or logistics. speech their products to Japan would require detailed and structured outbound logistics involving managing the liquefy of stainless products and information to business buyers and ultimate consumers. Ben & Jerrys then has to choose the powerful pane mode. Because Japan is over seas from their Vermont factory, the only 2 options would be water transportation, which is gimcrack but slow (about 3 weeks) or by air, which is fast but expensive.Although Japan has barriers to impertinent imports, in 948 the General Agreement of Tariffs and Trade (GATT) was formed, which was an internationalistic forum for negotiating reductions in trade restrictions. The World Trade Organization (W TO) was as well established to assume the task of mediating trade disputes among nations. Japan is part of the WTO, connecter on September 10th, 1955. This will make it easier for Ben & Jerrys to advance in Japans foreign market because there is a global mediation center. Also, there are expectations of falling tariffs on dairy products, which would be a desirable throw in selling in Japan.Even though Haagen-Dazs had already been selling their superpremium ice cream in Japans market, now Ben & Jerrys doesnt have to educate the Japanese market about superpremium ice cream. Haagen-Dazss sales in Japan were about $ three hundred one thousand million, proving there is a large Japanese ice cream market and superpremium ice cream is desirable in the country. There are legion(predicate) proceedss and disadvantages for Ben & Jerrys to penetrate the Japanese market by relying on 7-Eleven, an international chain of convenience stores, to distribute their superpremium ice cream.If Ben & Jerrys sold directly to 7-Eleven creating a vocalize venture or a strategic alliance, they would create a long partnership between two companies to undertake a major trade union movement and help each company build competitive market advantage. Because Ben & Jerrys have expanded all over the world it is a multinational corporation. If Ben & Jerrys could sell directly to 7-Eleven, it would eliminate the distribution costs. However, there would be a baron struggle between the 2 major companies.If Ben & jerrys agrees to an exclusive agreement with the spacious convenience store chain, 7- Eleven would have the upper hand. Another advantage of entering the market through 7-Eleven is the immediate placement of Ben Jerrys in over 7000 convenience stores in Japan, giving Ben Jerrys an instant access to the market on a large scale. Yet, by doing this, Ben Jerrys might not be able to build their own brand name and an issue with 7-Eleven would leave Ben Jerrys without their own positio n in the Japanese market.Also, 7-Eleven insisted that Ben Jerrys ice cream be package in personal cups as opposed to the pint size, due to the cultural view of ice cream in Japan. This would require $2 million in equipment and different methods in packaging the ice cream, because Ben Jerrys would have to espouse wltn tnese cnanges. I ne -Eleven approacn to Just-ln-tlme Inventory procedures would make delivery reliability keystone and costs would have to be minimized. Because the Japanese deed is unique, Ben & Jerrys would have to be careful to not mix up the Japanese label with the fastness label.A disadvantage of relying on 7-Eleven is the asset specific investment in production equipment. Due to these changes, there would be complex logistics and production planning. Also, the pricing and improvement distributions are unclear. The only clear thing was that Ben & Jerrys would be shipping from their Vermont factory. Entering the market with 7-Eleven would allow Ben & Jerrys to have control of their brand, although 7-Eleven would have a dominant allele position. Ben & Jerrys would have to rely on 7-Eleven promoting the brand, which 7- Eleven wasnt promising.A major advantage is that 7-Eleven is an established corporation, so 7-Eleven has high-level executive involvement and an efficient supply chain. Ben Jerrys would increase sales through convenience stores and would ccess the market on a large scale easily. Ken Yamada was also interested in acting as a licensee for Ben Jerrys in Japan, overseeing merchandise and distribution of its products there. Yamada would be the market intercessor for Ben Jerrys, being the independent firm which will assist in the flow of goods and services from producers to end-users.Yamada would be a good candidate because he was a well- recommended third-generation Japanese-American, so he knew the culture and how to integrate American and Japanese cultures. He also was already running the Dominos Pizza franchise in Jap an. The Dominos franchise in Japan was very successful, and Dominos already delivered ice cream cups, so they had the resources to deliver Ben & Jerrys. However, part of Yamadas agreement was that he would have exclusive rights to the across-the-board(a) Japanese market.This would mean that Yamada would have full control of branding and marketing efforts, make Ben Jerrys fully dependent on the efforts of Yamada. He would have full control of the marketing and sales in Japan. Yamada would introduce Ben Jerrys to the Japanese market from he initial steps to the large picture starting with locating the brand, formulating and strategically orchestrating the initial launch, and concentrating on the best marketing and distribution outline for the long-term positioning of Ben Jerrys in Japan.By using Yamada to introduce Ben Jerrys in the Japanese market, Yamada would earn royalty on all sales, but he would have full control of the Japanese market. This would give Ben Jerrys instan t expertise in a foreign market and because Yamada was already running Dominos, there was a simple entry strategy and an ongoing marketing management. Yamada was very rich to the ice cream company. He knew frozen foods, he had an entrepreneurial smack and marketing sa. n. y.However, because Yamada would be investing his time in a marketing campaign only after reaching an agreement with Ben Jerrys, there was no specific plan available for consideration, and Yamada would have full control and the right to change any plan. Yamada has good market knowledge and the managerial requirements, making it less demanding for Ben Jerrys. However, he has no specific business plan and no brand control. Although Ben Jerrys managers believe the ompany should delay entering the Japanese market because of stinting problems, I think Ben Jerrys should enter the Japanese market.Japan is the second largest ice cream market globally, with sweet fruit rates. Japan has high profit margins. Japan nas a nlgn aemana Tor super premium Ice cream. Inere Is also a aecllnlng aomestlc growth rates and market shares in Japan. Also, Ben Jerrys has excess capacity in the unify States factory. Japan has the second largest ice cream market in the world with sales of approximately $4. 5 billion, proving that Ben Jerrys would be very successful entering the Japanese market.