Ethics, sustainable development and corporate social responsibility: Ben & Jerry's case study

Résumé du document

Ben & Jerry's have evolved on a growing market. This is why the influence of customers and competitors is significant. Nevertheless, these threats have do not have a huge impact on the company, because the growth enables each competitor to find its own position. Even if prices are falling in mass retail, it does not impact Ben & Jerry's results directly, as mass retail represents only 17% of their shares of sales in France. Ben & Jerry's have a lot of advantages which are a result of their tie-up with Unilever, and their commitment to sustainable development. Thanks to these, the brand managed to increase its sales drastically and gain a position of leadership in France. Nevertheless, it has a low presence in mass retail, which could be linked with the types of packaging offered.

Extraits

[...] So the CSR is in the center of the policy and preoccupations of Ben & Jerry's, and the brand benefits of this policy. The CSR affects directly the brand image : it vehicles a good image of the brand, tied to quality and sustainable awareness. This company is really a responsible one, customers are more confident on the brand and choose it for it values, which make them more faithful. This will ensures the continuity and the longevity of the brand on the long- term. [...]

[...] The policy of the company has a very tight link with the Corporate Social Responsibility way. This tight link is due to : The ingenious choice of its suppliers and their social responsibility and awareness of the environmental impact of their businesses. The foundation, which supports specific causes and association. The nature of the stores, in which the products are sold, run by not- for-profit associations, whose funds are used for social causes. The commitment of the company in fair trade through Max Havelaar label. [...]

[...] This would not have a negative impact on the policy of the brand and the company's social responsibility. However, the choice of the mass retail in which products would be sold should be well considered, to avoid: The sales of the product in socially irresponsible supermarkets and hypermarkets, Any confusion in the mind of consumers, which could affect the image of the brand. If the risks of such strategy are highly considered, the company could sell its ice creams in special shops owned by the company, which would preserve the authenticity of Ben & Jerry's products. [...]

[...] This Group has a very specific strategy, totally different from the one of its direct competitor, Nestlé. Unilever brands must have a global reach, and products are sold under the same brand name in every country in the world. The strategy way used by Unilever is internal growth, by creating its own brands. On the contrary, Nestlé adapts its products to the countries where they are sold, by acquiring local brands : this strategy way is called the external growth. [...]

[...] It also answers to the costs constraint, tied to their sustainable development commitment among others, and to the distribution channel constraint. The skimming policy, with no intent to reduce prices after the launching period, is coherent with the super premium segment chosen by Ben & Jerry's. Prices have probably been fixed from competition, as they correspond to prices of the main competitor of the company, which is Häagen Dazs. Ben & Jerry's quality and reputation enables the company not to battle thanks to special offers. [...]