Ben and Jerry’s Entering into the Japanese Market

Ben and Jerrys Entering into the Nipponese Market sy Ihart2dance19 Ben Jerrys home-baked, Inc. produces extremely pension rubbish work off, frozen yogurt, and starter skim off novelties in rich and received nose dropss. The comp any sells its unique offerings In mart memory boards, restaurants, and franchised Ice toss craps, and it holds about tercet of the grocery for its products. This global company began with single a $12,000 Investment to open Ben Jerrys Homemade Ice cream scoop shop In a renovated gas locate in d confesstown Burlington, Vermont, on whitethorn 5th, 1978.From one mall shop In downtown Burlington, the company had grown to complicate a chain of just about vitamin C franchised shops, and a line of products sold in stores across the country. As one of the lead superpremium applesauce cream (greater richness and immersion than separate kinds of Ice-cream and Is on that pointfore sold at a relatively high pr folderol) manufactures, Ben Jer rys has to continually expand and develop to compete with other leading brands. The united States Is one of the largest exporting nations as well.The united States sells products to other countries because no country can roduce all of the products the state want. In 1994, den Jerrys starting considering march on into the japan icing cream commercialize, the sanction largest ice cream securities industry in the world with sales of well-nigh $4,5 billion. fit to the survey conducted by What lacquer Thinks, nearly 2 out of 5 Nipponese eat ice cream e actually(prenominal) week. However, lacquer is a great keep from the united States and it would be complicated to break the Items to Japan.Japans barriers to Imports from unconnected countries were high and Ben Jerrys were come in the Nipponese ice cream marketplace 0years atter Its competitors, such(prenominal) as Haagen-Dazs. According to the survey by What Japan Thinks, the biggest factor in ice cream purchase is by f lavor and taste. The Japanese consumers demand high- woodland products with antithetic flavors. The demands of the Japanese coincide directly with the product c atomic number 18 statement of Ben Jerrys which is to puzzle out, distri unlesse and sell the finest prime(prenominal) all natural ice cream and euphoric concoctions with a continued lading to Incorporating wholesome, natural ingredients. So based on the quality and flavors of Ben & axerophthol Jerrys, the ompany doesnt nourish to transmute their recipes or ingredients to be democratic 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 parcel their Ice cream In individualised cups as well as their distributor point sized package. Additionally, the Japanese are genuinely clean and conscience of sanitation, so having private serving would be more appeal to the Japanese people.According to What Japan Thinks, the most popular purchase of ice cream is a single-serving cup ot ice cream. When It comes to perishable ripes, supermarkets come along to be much stricter In Japan than In the west about miserable on stock before it gets old. It Is precise important for a product to nurture a good reputation, especially in Japan, and if a product Isnt good quality no one will corrupt the product. Ben Jerrys should make sure that their products are universe monitored, and if the ice cream is close to perishing, they should make sure It gets thrown out, or then(prenominal) their reputation can be absolute In a 1 Ofa minute. nen Ben & adenine Jerrys aec10e now tney wlll Introduce tnelr product to Japan, hey demand to take into account the socio ethnic forces and cultural differences amongst America and Japan. Although carryping to Japan is not the easiest task, Ben & group A Jerrys is an established collective company who has been fare ice cream to the West Coast and to Europe in freezer containers. Ben & axerophthol Jerrys needs to throw an efficient supply chain, the sequence of think activities that must be performed by respective(a) organizations to move goods from the sources of raw materials to ultimate consumers, so the company can then ship out their products smoothly.The company hen has to let the surpass approach to their physical distribution, or logistics. Bringing their products to Japan would need fine and structured outbound logistics involving managing the meld of finished products and information to business buyers and ultimate consumers. Ben & adenosine monophosphate Jerrys then has to choose the right transferee mode. Because Japan is all over seas from their Vermont factory, the only 2 options would be water transportation, which is inexpensive but slow (about 3 weeks) or by air, which is fast but expensive.Although Japan has barriers to foreign imports, in 948 the General Agreement of Tariffs and mountain (GATT) was formed , which was an external forum for negotiating reductions in plenty restrictions. The World Trade Organization (WTO) was as well established to assume the task of mediating care disputes among nations. Japan is part of the WTO, Joining on September 10th, 1955. This will make it easier for Ben & Jerrys to advance in Japans foreign market because there is a global intermediation center. Also, there are expectations of falling tariffs on dairy products, which would be a preferable feature 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 $300 million, proving there is a large Japanese ice cream market and superpremium ice cream is desirable in the country. There are many payoffs and injurys for Ben & Jerrys to penetrate the Japanese market by cussing 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 Joint venture or a strategic alliance, they would create a semipermanent partnership between two companies to go about a major project and supporter each company build combative market advantage. Because Ben & Jerrys have spread out 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 power struggle between the 2 major companies.If Ben & jerrys agrees to an pocket parallelism with the massive convenience store chain, 7- Eleven would have the upper hand. some other advantage of entering the market finished 7-Eleven is the immediate placement of Ben Jerrys in over 7000 convenience stores in Japan, giving Ben Jerrys an wink access to the market on a large master. Yet, by doing this, Ben Jerrys might not be able to build their own brand name and an issue with 7-Eleven would set out Ben Jerrys without their own position in the Japanese market.Also, 7-Eleven insisted that Ben Jerrys ice cream be package in personal cups as oppose to the pint size, due to the cultural panorama 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 comply wltn tnese cnanges. I ne -Eleven approacn to Just-ln-tlme farm animal procedures would make delivery reliability cay and costs would have to be minimized. Because the Japanese production is unique, Ben & Jerrys would have to be careful to not mix up the Japanese label with the regular label.A disadvantage of relying on 7-Eleven is the asset particular investment funds in production equipment. Due to these changes, there would be complex logistics and production planning. Also, the determine and receipts distributions are un slide by. The only clear thing was tha t 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 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 administrator involvement and an efficient supply chain. Ben Jerrys would make up 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 merchandise intermediary for Ben Jerrys, being the independent fuddled 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 Japan. The Dominos franchise in Japan was very victorious, 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 completed Japanese market.This would mean that Yamada would have undecomposed control of branding and marketing efforts, making Ben Jerrys unspoilty dependent on the efforts of Yamada. He would have full control of the marketing and sales in Japan. Yamada would enrol Ben Jerrys to the Japanese market from he initial travel to the large picture starting with post the brand, formulating and strategically orchestrating the initial launch, and concentrating on the best marketing and distribution strategy for the semipermanent positioning of Ben Jerrys in Japan.By using Yamada to introduce Ben Jerrys in the J apanese market, Yamada would earn royal line on all sales, but he would have full control of the Japanese market. This would give Ben Jerrys instant expertise in a foreign market and because Yamada was already running Dominos, there was a innocent entry strategy and an ongoing marketing management. Yamada was very valuable to the ice cream company. He knew frozen foods, he had an entrepreneurial spirit and marketing sa. n. y.However, because Yamada would be commit his time in a marketing campaign only after stretch 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 economic problems, I think Ben Jerrys sho uld enter the Japanese market.Japan is the second base largest ice cream market globally, with pleasant exploitation 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 overindulgence capacity in the United 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.