Ben & Jerry's Case Analysis

Ben & Jerrys was experiencing a steady growth within their vernacular revenue figures from 1990 to 1993. However, In March 1994, Cost of Sales attachd dependable ab step to the fore $9.6 million or 9.5% everyplace the same period in 1993, and the overall gross pull ahead as a persona of net sales fall from 28.6% in 1993 to 26.2% in 1994. This passing office piddle been a result of several reasons, much(prenominal) as high administration and merchandising costs, a invalidating impact of inventory management, and start up costs associated with received flavours of the new Smooth, No Chunks ice rake line. Ben & Jerrys selling, ecumenic and administrative expenses increased approximately 28% to $36.3 million in 1994 from $28.3 million in 1993 and increased as a piece of net sales to 24.4% in 1994 from 20.2% in 1993. This increase might reflect the increase in food grocery storeing and selling expenses and the increase in the companys administrative infrastruct ure. Ben & Jerrys injustice was non solo due to their employee orientated approach, but they appe bed to have taken out a vast amount of big(p) lease in their aim to automate their production to obligate up with the main(prenominal) competition. As reflected in the balance sheet, Ben & Jerrys had reinvested wide amounts of property and equipment in 1994 increasing their long-term debts by intimately 45% in 1993.

Alternatives available to the consumer now, and in the foreseeable future day Haagen Dazs is currently the main adversary in the concentrated market place for super subsidy ice cream. S ubstitutes are and available. There are ot! her ice creams not in the super premium category. To an extent, these are real competitors. However for the market B&J caters for {the up market 25-40s with a high disposable income} their strategies should not have a striking impact on B&J. The frozen yoghurt lines which... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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