Copenhagen Business School 15 March 2006 Case: Ben & Jerry’s - Japan (99A037)

Should Ben & Jerry’s commit to entering the Japanese market the following summer?

Ben & Jerry does not seem to be ready for an international venture. Complex market entry. Different dominant players. Outlook for Japan’s economy is not too good. NO

Ben & Jerry does not seem to be ready for an international venture.

Complex market entry.

Different dominant players.

Outlook for Japan’s economy is not too good.

Second largest ice cream market globally, with sweet growth rates. High profit margins Demand for superpremium ice cream Declining domestic growth rates and market share. Excess capacity in US factory. Let’s do it

Second largest ice cream market globally, with sweet growth rates.

High profit margins

Demand for superpremium ice cream

Declining domestic growth rates and market share.

Excess capacity in US factory.

Should Ben & Jerry’s commit to entering the Japanese market the following summer? Let’s do it NO

If Ben & Jerry’s were to enter the Japanese market the following summer, should it do so with Mr. Yamada or with Seven-Eleven? Why?

Pro Con Good market knowledge Managerial requirements less demanding for Ben & Jerry’s Unclear intentions; no specific business plan No brand control and market is given away

Pro Con Instant access to the market (big scale) Control of their brand High level executive involvement from 7-Eleven Increase sales through convenience stores Efficient supply chain 7-Eleven will have a dominant position Asset specific investment in production equipment Complex logistics and production planning Pricing and profit distribution are unclear

Brand expansion in Japan Market entry strategy 7-Eleven is a current partner in the US Partner dependency and bargaining power vs

Brand expansion in Japan

Market entry strategy

7-Eleven is a current partner in the US

Partner dependency and bargaining power

What are the prospects for entering markets via one exclusive retailer? No flexibility of developing the Japanese market Brand connected to retailer Easy market entry

No flexibility of developing the Japanese market

Brand connected to retailer

Easy market entry