Swot Analysis Of Ben & Jerry’s And Comparison Them To Haagen-Dazs

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The subsidiary I have chosen is Ben & Jerry’s which is a premium ice cream parlor. Ben & Jerry’s was acquired by Unilever in 2000. Since the purchase, Ben & Jerry’s has evolved into one of the most known ice cream companies in the world. The direct competitors of Ben & Jerry’s are companies that work in the same capacity, providing premium ice cream. The main competitor of Ben & Jerry’s is Nestle-owned Haagen Dazs, since it belongs to the same strategic group, being a premium ice cream parlor. (Forbes.com, 2019) Other competitors of Ben & Jerry’s are Magnum and Cornetto, but these companies do not share the same values as the other two brands. (Forbes.com, 2019)

To compare these two companies, I am going to use SWOT analysis of Ben & Jerry’s and compare them to Haagen-Dazs

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Strengths:

  • Ben & Jerry’s has international recognition, providing its customers with a product they trust
  • Having a high price relate to high quality, they succeed in creating a relationship with the customer and secure the sale of their product.
  • A very firm marketing and advertising approach, creating an image of a playful and fun brand
  • Social responsibility and ecological responsibility providing eco-friendly packages

Weaknesses:

  • High price compared to competitors, making the company’s only way to keep afloat being its differentiation technic being a friendly and homemade brand
  • In 2006 Ben & Jerry’s CEO Stuart Wiles embezzled 300,000$, hurting the image that the company was trying to build (Ssir.org, 2019)
  • Again in 2006, the company’s supplier of eggs was accused of mistreating livestock, leading to another blow in the company’s reputation. (Ssir.org, 2019)

Opportunities:

  • Developing other products besides ice cream, (i.e ice cream sandwiches, lactose-free products)
  • Improve their profits by investing in ice cream sales in developing markets
  • Continuous investment into their loyalty program and their promotions
  • Differentiation of the brand has been a key to its success and is favorable among people

Threats:

  • The continuous entry of new premium ice cream parlors such as Godiva
  • The increasing epidemic of obesity worldwide, makes many people health-conscious when deciding to buy ice cream
  • The competitive rivalry between existing brands lowering the prices to get ahead at prices

Haagen-Dazs has the same characteristics as Ben & Jerry’s but has 3 major differences. Being, their main competitors, Haagen-Daz’s differentiation technique is much different than Ben&Jerry’s, being that both these brands sell the same product, they rely on the difference in differentiation leadership, with Haagen-Dazs appearing as a more sophisticated brand with a high-quality product. Haagen-Dazs also offers slightly less prices than Ben & Jerry’s, creating a competitive advantage over Ben & Jerry’s. (Annualreports.com, 2019) And lastly, the biggest difference between these two brands is that while Ben & Jerry’s appears to be more involved in the community, Haagen-Dazs tries to retain its image of exclusivity. (Statista, 2019) 

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