Ben & Jerrys Homemade Ice Cream Inc.: Period of Transition Harvard Case Solution & Analysis

Diversification Strategy

In the Ansoff Matrix, Ben and Jerry’s is moving in the future and to increase the sales in such a mature and fragmented market, the company needs to develop certain strategies that can help the company grow and expand in the market. As the case states, Ben and Jerry’s sales were declining due to low requirement in super premium ice cream market. To increase the sales and to get back on the track with its diversified product range, Ben and Jerry’s should look to enter a new market with a new product. By doing so, they can actually diversify themselves into other markets and products. Therefore, the recommended strategy for the company Ben and Jerry’s is to adopt diversification strategy in the Ansoff matrix.

This strategy can help the company to overcome the increasing competition in the market. As the case states, different companies were being acquired by large conglomerates so as to control the manufacturing and distribution of their products. With Ben and Jerry’s being a renowned name in the food industry, it can look to diversify in other products. The best option or the most appropriate product that Ben and Jerry’s can look to enter within the market is to introduce a range of juices. For example, Ben and Jerry’s can introduce a range of artificial flavors of juices and sell them across the market. Not only will this make Ben and Jerry’s to enter an entirely new market, but it will also support Ben and Jerry’s premium business that is manufacturing ice cream.

Artificial flavors and raw materials used in ice cream manufacturing can be the same for the juice manufacturing within the corporation. Along with this, being a part of a new industry will make Ben and Jerry’s focus on other demographic options of the market, who are health conscious and do not like consuming ice creams. For those people or section of the industry, a most feasible option that Ben and Jerry’s can offer is that they can introduce juices in different flavors that can help the company diversify in other markets too.

Game Theory

Game Theory is a set of concepts, which is a decision making situation of conflicts and competition under certain rules and regulations. It is a theory of strategies but not for chances. Basically, a strategic game has represented a situation where more than two participants are faced with certain choices of actions that can help to loose or gain depending on different choices to choose from. The basic and the most optimum final output, which is determined by the strategies chosen by each of the two participants. The game theory over here can be that the two options for Ben and Jerry’s may involve the company investing on advertising and include new flavors in smooth line and premium products.

As the case states, Ben and Jerry’s has not invested on advertising and marketing at all. In fact, the company is happy and content with additional flavors rather than attracting new customers and youth towards ice cream and frozen yogurts by investing on marketing and sales. Therefore, an option for the company can be to invest on the advertising of the ice creams and any new product, which Ben and Jerry’s offer in the market. Secondly, product diversification is also important for Ben and Jerry’s. It is because product diversification can help the company to not only remain focused on super premium  ice creams but can also help the company to introduce smooth line with additional health conscious elements. Consequently, the company has ice cream for all demographic portions of the company that can in turn help to increase sales and product preference, which had declined in the early part of 1994.

Competitive Strategy

The competitive strategy that is recommended for Ben and Jerry’s is to go for differentiation strategy for remaining competitive in the stagnant ice cream industry. The company has been already offering quite few flavors in the industry. Moving into the future and looking to offer competitiveness and attraction in the ice cream industry, Ben and Jerry’s needs to introduce products in other sections of the industry such as the smooth line and the traditional ice cream market. This will increase sales and will also help Ben and Jerry’s to enter the foreign market. As the case states, Ben and Jerry’s were not amongst the internal ice cream companies as it was only focused on United States market. Once, they have a wider range of products, then Ben and Jerry’s can offer more products for the market; therefore, differentiation strategy can bring in competitive element to Ben and Jerry’s.......................................

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