Marketing Communication

Ben & Jerry's: Market Analysis

Ben & Jerry’s is an American ice cream brand. The analysis that follows focuses on the American marketing communication of Ben & Jerry’s as a whole and discusses its key benefits and unique selling points (USP), competition, segmentation, communication, and brand positioning.

Key Benefits & Selling Proposition

On a marketing communication level, what sets Ben & Jerry’s apart from the competition is their “hippie style” of communicating: they continuously commit to social and environmental responsibility efforts. This is their unique selling proposition (Steimer, 2017, Belch & Belch, 2018). In their value statement, the company explains that they want to make a difference for the planet (Ben & Jerry’s, n.d.-a). Also, the company cares about LGBTQ+, criminal justice reform, and refugee rights issues. Furthermore, Ben & Jerry’s only makes use of conscious products originating from local family farms, which they named “Caring Dairy livestock farms” (Ben & Jerry’s, n.d.-a, Ben & Jerry’s, n.d.-b). This passion for combatting social and environmental issues is actively communicated in a variety of advertisements (Ads of the World, n.d.). Moreover, Ben & Jerry’s is known for its wide selection of unique flavors that are provided with attractive names, such as “Netflix and Chill’d” and “Cone Together” (Steimer, 2017, Scafariello, 1998, Ben & Jerry’s, n.d.-c). They even released an ice cream flavor specifically for dogs (Ben & Jerry’s, n.d.-d). To highlight the uniqueness of these flavors and their names, this is often the basis for their advertisements. For example, for their “Netflix and Chill’d” flavor, Ben & Jerry’s created an advertisement that shows clips inspired by Netflix’s most famous original creations (Ben & Jerry’s, 2020).

 

Competition

Several companies are positioning themselves in the market as strong competitors of Ben & Jerry’s. Häagen Dazs is the biggest competitor of Ben & Jerry’s at the moment (Ellis & Fairchild, 2003). Both brands sell luxury ice cream with natural ingredients and make up a big part of the market in this particular category. These brands are the strongest ice-cream brands in the USA and both perform actively on marketing issues (Digital Factory, 2015). However, the marketing strategy of Häagen Dazs concentrates primarily on the intimate pleasure consumers get when eating the ice cream. Ben & Jerry’s positions themselves as more than ice cream. Every aspect of their operations is aimed at solving larger issues, such as their concern for environmental impact, sustainable sourcing, and fair wage pay and benefits for employees (ThoughtLeaders, 2021). Especially their marketing strategy and campaigns revolve around achieving awareness and speaking up on today’s social issues. Häagen Dazs has even copied one of the campaigns that Ben & Jerry’s came up with: the Free Cone day (Digital Factory, 2015). Other competitors of the brand in the US include Dreyer’s, Breyers, Blue Bell, and Halo Top  (Dodo Cookie Dough, n.d.).

Despite the highly competitive market for premium ice cream, Ben & Jerry’s market share has kept growing. Increased consumer demand, increased competition, and limited grocery store shelf space make successful entry into the market more difficult for new competitors (Ellis & Fairchild, 2003). The biggest competition for Ben & Jerry’s at the moment is the already competing ice cream brands. These brands are introducing innovative marketing as well as it is a rising trend. This could form a threat to Ben & Jerry as they try to stay the leader in this category in the US market. 

 

Consumer Segmentation

Belch and Belch (2018) define market segmentation as “dividing a market into distinct groups that (1) have common needs and (2) will respond similarly to a marketing action”. It is important to note that consumer segmentation can be based on many factors such as demographics, geographical information, psychographics, or consumer behaviors. Research into American consumer behavior shows that the main consumers of Ben & Jerry’s are majority young, caucasian, highly educated, and wealthy people (Numerator, 2021). Therefore, it is fair to assume young people are one of the segments that Ben & Jerry’s targets. One could argue that “young people” is a demographics-based segment and that the brand targets this segment on the basis that young people like ice cream more than older people. While this might be true, “young people” can also be seen as a psychographic segment. As mentioned before, Ben & Jerry’s continuously communicates about social and environmental issues. A Millenial and gen Z survey conducted by Deloitte (2021) revealed that climate change and social issues are top concerns for these age groups. Therefore, young people are often targeted in Ben & Jerry’s communication campaigns and the brand is positioned as caring about aligning values. 

Another consumer segment in Ben & Jerry’s marketing is wealthy people. This segment has less to do with external communication from the company and more with the price point the brand’s products are sold at. Ben & Jerry’s produced high-quality ice creams that come with a competitively high price point when compared to other ice cream brands such as supermarkets’ brands. 

Based on the demographic factors we can also deduct that the brand is more likely to target people who live in urban areas as those areas nowadays are where both young and wealthy people are living (Lee, Lee & Shubho, 2019).

 

Communication

Ben & Jerry’s has built up a strong image of the brand through honest and authentic communication plans about the company’s culture (Thorson & Moore, 2013). Ben & Jerry’s has been supported by the Cone marketing agency, to raise awareness on social issues, beyond advertising their ice cream. Campaigns include: Democracy Is In Your Hands, Save Our Swirled, One Love, Tonight Dough, Hubby Hubby and I Dough, I Dough (Cone, n.d.).

Ben & Jerry’s has causes it cares about as a brand, and when a related event happens (particularly, in the US), they react (Beard, 2021; Social Samosa, 2021). Through this branding of issues in society in addition to temporarily limiting options to stand up for social causes (e.g., not allowing two scoops of the same flavor as a protest against Australian anti-same-sex marriage laws) makes the brand a public figure who is shaping the conversation about contemporary social issues (Wolf, 2017). They also organized a significant event to announce their switch to FairTrade – again, for a cause (of fair trading); and have adapted a ‘climate neutral’ voice, as they have researched and developed refrigerators that ‘offset’ their carbon footprint (although, this carbon footprint is measured by themselves) (Dekker et al., 2009).

The multiple market segments targeted by Ben & Jerry’s (the young on one hand, and the wealthy on the other) (Numerator, 2021), are not communicated with differently. As mentioned before, the causes Ben & Jerry’s stands up for are targeting the young (Deloitte, 2021), and it is the price – and consequently, the status of the ice cream – that communicates with the wealthy. Therefore, although both segments receive the same communication, they purchase Ben & Jerry’s on different grounds: one segment caring about the communication, and the other not so much.

Ben & Jerry’s marketing mix’s promotional mix (traditionally about advertising, sales promotion like discounts or coupons, PR and personal selling, but nowadays also about direct marketing like emails or telemarketing, and two-way flowing digital/internet marketing like Instagram videos that can be liked and shared) is weighting towards advertising, PR and digital/internet marketing (We Love Ice Creams, 2013; Social Samosa, 2021).

 

Positioning

Ben & Jerry’s is positioning itself to have a common understanding with minorities (based on race, sexual identity, and so on) (Cone, n.d.), and consequently, those who support these causes: the young segment (Deloitte, 2021). This type of positioning strategy builds on benefits and attributes, meaning the brand is offering a specific characteristic or benefit (salient attributes that are important to the customer) that sets it apart from competitors (Belch & Belch, 2018). Ben & Jerry’s does so not only by promoting the rights of minorities but by restrictive measures as a mode of protest as well (e.g., the same flavor scoop limitation, mentioned above) (Beard, 2021; Social Samosa, 2021; Wolf, 2017). Therefore, Ben & Jerry’s is using both carrots and sticks to take a side in social issues.

In addition, Ben & Jerry’s is positioning itself by price and quality (Belch & Belch, 2018), targeting the wealthy, as Ben & Jerry’s is a leading natural premium ice cream, for a higher price.

 

Conclusion

Ben & Jerry’s is a brand that has a clear set of values that is continuously clearly communicated through campaigns and products. Not only are the values communicated but the brand builds its authenticity by staying true to these values and taking steps to contribute to the causes they care about. However, in an ever-growing market of ice cream, many brands take an approach similar to Ben & Jerry’s and market themselves as “eco-conscious”. Therefore, the biggest challenge for Ben & Jerry’s is how to be a leader in innovative branding to stay on top of the market. The need for creative solutions will only rise if Ben & Jerry’s plans to stay one of the most loved brands in the world.

There are several marketing opportunities for Ben & Jerry’s. This brand mostly sells all-natural products but this benefit is not widely advertised. Mentioning this on the product and in campaigns could have a positive effect on purchase intention (Devia, Forli, Vidal, Curutchet & Ares, 2021). 

Ben & Jerry’s should keep speaking up on social and environmental issues in the US, as it is a good strategy to stay relevant as a brand. Ben & Jerry’s could increase focus on climate issues, seen as this has become a more prevalent topic due to recent events. This is in line with their current marketing communication and can strengthen the trust of consumers even more. 

 

References

Ads of the World (n.d.). Ben & Jerry’s. Retrieved from https://www.adsoftheworld.com/taxonomy/brand/ben_jerrys

Beard, A. (2021). Why Ben & Jerry’s Speaks Out. Harvard Business Review. Retrieved from https://hbr.org/2021/01/why-ben-jerrys-speaks-out

Belch, G. E., & Belch, M. A. (2018). Advertising and promotion: An integrated marketing communications perspective. 11th edition. McGraw-Hill Education.

Ben & Jerry’s (n.d.-a). Values. Retrieved from https://www.benjerry.com/values

Ben & Jerry’s (n.d.-b). Perspagina. Retrieved from https://www.benjerry.nl/over-ons/perspagina

Ben & Jerry’s (n.d.-c). IJs pints. Retrieved from https://www.benjerry.nl/smaken/pints

Ben & Jerry’s (n.d.-d). Doggie Desserts. Retrieved from https://www.benjerry.com/flavors/doggie-desserts

Ben & Jerry’s (2020, 16 January). Introducing Netflix & Chilll’d | Ben & Jerry’s [Video]. Youtube. Retrieved from https://www.youtube.com/watch?v=HI2ZAP4J0qU

Cone (n.d.). Ben & Jerry’s. Retrieved from  https://www.conecomm.com/case-studies/benandjerrys

Dekker, S. E. M., De Boer, I. J. M., Aarnink, A. J. A., & Koerkamp, P. G. (2009). Environmental hotspot identification of organic egg production. In Proceedings of the 6th International Conference on LCA in the Agrifood Sector, Zurich, Switzerland, November 12-14, 2008. pp. 381-389

Deloitte. (2021). In its 10th year, the Deloitte Global Millennial and Gen Z Survey reveals two generations pushing for social change and accountability. Retrieved from https://www2.deloitte.com/global/en/pages/about-deloitte/press-releases/in-its-10th-year-the-deloitte-global-millennial-and-gen-z-survey-reveals-two-generations-pushing-for-social-change-and-accountability.html

Devia, G., Forli, S., Vidal, L., Curutchet, M. R., & Ares, G. (2021). Reference to home-made and natural foods on the labels of ultra-processed products increase healthfulness perceptions and purchase intention: Insights for policy making. Food Quality and Preference, 88(18). doi:10.1016/j.foodqual.2020.104110

Digital Factory. (2015). Ben & Jerry’s vs. Häagen Dazs: An online marketing communication comparison. Retrieved    from https://digitalfactoryuc3m.wordpress.com/2015/04/22/ben-jerrys-vs-haagen-dazs-an-online-marketing-comparison/

Dodo Cookie Dough. (n.d.). America’s 7 most popular ice cream brands. Retrieved from https://dodocookiedough.com/popular-ice-cream-brands/

Ellis, N.S., & Fairchild, L.M. (2003). Case study: Ben & Jerry’s (2000). Journal of Financial Education, 29, 87-102. doi:10.2307/41948414 

Lee, Y., Lee, B., & Shubho, M. T. (2019). Urban revival by Millennials? Intraurban net migration patterns of young adults, 1980–2010. Journal of Regional Science, 59(3), 538-566. doi:10.1111/jors.12445

Numerator (2021). Ben & Jerry's Demographics and Consumer Insights. Retrieved from https://snapshot.numerator.com/brand/ben_n_jerrys

Scafariello, K. A. (1998, March 12). Ben &  Jerry scoop their way to success. The Hawks’ Eye. Retrieved from https://docs.rwu.edu/cgi/viewcontent.cgi?article=1071&context=hawk_eye

Social Samosa (2021). Ben & Jerry’s Campaigns that made the brand communication snackable. Retrieved from https://www.socialsamosa.com/2021/03/ben-jerrys-campaigns-over-the-years/

Steimer, S. (2017, January 8th). How Ben & Jerry’s Took Both Its Ice Cream and Mission Global. AMA. Retrieved from https://www.ama.org/marketing-news/how-ben-jerrys-took-both-its-ice-cream-and-mission-global/

Thorson, E., & Moore, J. (Eds.). (2013). Integrated communication: Synergy of persuasive voices. Psychology Press.

ThoughtLeaders. (2021). More than just ice cream: Ben & Jerry’s and the marketing revolution. Retrieved from https://www.thoughtleaders.io/blog/more-than-just-ice-cream-ben-jerrys-and-the-marketing-revolution

We Love Ice Creams. (2013). Ben & Jerry’s: Digital Communication Strategy and Brand Culture. Retrieved from https://weloveicecreams.wordpress.com/2013/11/28/ben-jerrys-digital-communication-strategy-and-brand-culture/

Wolf, J. (2017). How Ben & Jerry’s Uses Ice Cream to Shape Cultural Conversation. We First Branding. Retrieved from https://www.wefirstbranding.com/brands/ben-jerrys-uses-ice-cream-shape-cultural-conversations/