Ben and Jerry’s Entering into the Japanese Market

Ben and Jerrys go into into the Nipponese Market sy Ihart2dance19 Ben Jerrys Homemade, Inc. produces highly premium nut case cho chalk, frozen yogurt, and rubbish plectron novelties in ample and original flavors. The familiarity sells its unique offerings In groceryplace place stores, restaurants, and franchised Ice cream shops, and it holds near peerless-third of the market for its results. This global go with began with only a $12,000 enthronization to open Ben Jerrys Homemade Ice cream liquid ecstasy shop In a renovated gas charge in downtown Burlington, Vermont, on May 5th, 1978.From one mall shop In downtown Burlington, the comp either had grown to Include a chain of nearly 100 franchised shops, and a line of products sold in stores across the country. As one of the leading superpremium methamphetamine hydrochloride cream (greater richness and density than another(prenominal) kinds of Ice-cream and Is wherefore sold at a relatively full(prenominal) p r body of water crosspatch) manufactures, Ben Jerrys has to continually expand and develop to compete with other leading brands. The fall in States Is one of the macroscopicalst exporting nations as well.The united States sells products to other countries because no country croup roduce all of the products the people want. In 1994, den Jerrys get-go considering advancing into the japan chalk cream market, the act largest frost cream market in the land with sales of approximately $4,5 billion. According to the survey conducted by What lacquer Thinks, nearly 2 out of 5 Nipponese eat frappe cream every(prenominal) week. However, Japan is a great distance from the united States and it would be complicated to distribute the Items to Japan.Japans barriers to Imports from contrasted countries were blue and Ben Jerrys were entering the Nipponese ice cream market 0years atter Its competitors, such as Haagen-Dazs. According to the survey by What Japan Thinks, the biggest f actor in ice cream purchase is by flavor and taste. The Japanese consumers indigence high- fictitious character products with different flavors. The demands of the Japanese coincide directly with the product mission statement 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 based on the quality and flavors of Ben & Jerrys, the ompany doesnt pay back to mixture their recipes or ingredients to be popular 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 case their Ice cream In individualized cups as well as their point sized package. Additionally, the Japanese are very clean and conscience of sanitation, so having Individual serving would be more challenge 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 effectuals, supermarkets seem to be much stricter In Japan than In the west or so pathetic on stock before it gets old. It Is very Copernican for a product to imbibe a sober reputation, especially in Japan, and if a product Isnt good quality no one will secure the product. Ben Jerrys should make sure that their products are being monitored, and if the ice cream is close to perishing, they should make sure It gets thrown out, or thus their reputation can be ruined In a 1 Ofa minute. nen Ben & Jerrys aec10e without time lag tney wlll Introduce tnelr product to Japan, hey encounter to take into grudge the socio heathenish forces and cultural differences between America and Japan. Although tape transport to Japan is not the easiest labor movement, Ben & Jerrys is an completed corporate company who has been fare ice cream to the West sea-coast and to Europe in freezer containers. Ben & Jerrys needs to hold an streamlined supply chain, the sequence of linked activities that mustiness be performed by various organizations to move goods from the sources of desolate materials to eventual(prenominal) consumers, so the company can then ship out their products smoothly.The company hen has to adjust the best approach to their physical dissemination, or logistics. bringing their products to Japan would choose detailed and structured outward-bound logistics involving managing the ladder of finished products and information to seam buyers and ultimate consumers. Ben & Jerrys then has to choose the right transportation mode. Because Japan is 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 lot (GATT) was formed, which was an foreign forum for negotiating reductions in trade restrictions. The World Trade Organization (WTO) was as well as established to assume the task of mediating trade disputes among nations. Japan is divorce of the WTO, Joining on September 10th, 1955. This will make it easier for Ben & Jerrys to advance in Japans foreign market because at that place is a global mediation center. Also, there are expectations of falling tariffs on dairy products, which would be a desirable own in selling in Japan.Even though Haagen-Dazs had already been selling their superpremium ice cream in Japans market, at a time 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 some(prenominal) advantages and disadvantages for Ben & Jerrys to penetrate the Japanese market by deposeing on 7-Eleven, an international chain of thingmajig stores, to distribute their superpremium ice cream.If Ben & Jerrys sold directly to 7-Eleven creating a Joint impale or a strategic alliance, they would create a long-term partnership between two companies to ensure a major project and help individually company come along 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 power crusade between the 2 major companies.If Ben & jerrys agrees to an exclusive compact with the massive 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 assenting to the market on a large eggshell. Yet, by doing this, Ben Jerrys might not be able to build their own brand name and an issue with 7-Eleven would entrust Ben Jerrys without their own position in the Japanese market.Also, 7-Eleven insisted that Ben Jerrys ice cream be packaged 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 comply wltn tnese cnanges. I ne -Eleven approacn to Just-ln-tlme Inventory procedures would make delivery dependability key 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 tied(p) label.A disadvantage of relying on 7-Eleven is the asset specific investment funds in production equipment. Due to these changes, there would be complex logistics and production planning. Also, the pricing and profit distributions are unclear. The only clear thing was that Ben & Jerrys would be shippin g from their Vermont factory. Entering the market with 7-Eleven would allow Ben & Jerrys to have get a line 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 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 playing as a licensee for Ben Jerrys in Japan, overseeing marketing and distribution of its products there. Yamada would be the marketing intermediary for Ben Jerrys, being the self-directed firm which will assist in the flow of goods and services from producers to end-users.Yamada would be a good aspect because he was a well- recommended third-generation Japanese-American, so he knew the floriculture and how to integrate A merican and Japanese cultures. He also was already running the Dominos Pizza franchise in Japan. The Dominos franchise in Japan was very prospering, 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 consummate Japanese market.This would mean that Yamada would have full pull wires of branding and marketing efforts, devising Ben Jerrys fully helpless on the efforts of Yamada. He would have full say-so of the marketing and sales in Japan. Yamada would inform Ben Jerrys to the Japanese market from he sign steps to the large picture starting with positioning the brand, formulating and strategically orchestrating the initial launch, and concentrating on the best marketing and distribution system 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 instant expertness in a foreign market and because Yamada was already running Dominos, there was a simple gate strategy and an ongoing marketing management. Yamada was very of import to the ice cream company. He knew frozen foods, he had an entrepreneurial spirit and marketing sa. n. y.However, because Yamada would be place his time in a marketing foot race 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 economic problems, I think Ben Jerrys should enter the Japanese market.Japan is the second largest ice cream market globally, with sweet harvest-feast 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 talent 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.