using differentiation strategy. They differentiates its products by creating unique flavours, using high-quality ingredients, supporting the local community, and promoting diversity in the workplace (McWilliams & Siegel, 2001). The main strategy that makes them so different is the Corporate Social Responsibility (CSR). This can be seen when all of the dairy for Ben & Jerry’s in the United States comes from family farms, primarily in the state of Vermont (Freese, 2007). Another thing to be looked at is how they differenced their product by offering a lot of delicious flavour with quirky names and promoting their social activity through the flavour name (Jerry’s, Our Values : Ben & Jerry’s, 2015). They also achieve differentiation by small growth business where they start with low capital and slowly expand their business to maintain their sustainability (Spolsky, 2004). Their social mission has made them one of the role model among successful company that is socially friendly to their customers.Differentiation StrategyThe differentiation strategy is an integrated set of actions taken to produce goodsor services (at an acceptable cost) that customers perceive as being different in ways that are important to them (Bercovitz & Mitchell, 2007). An organisation using this strategy will make their product different from those produced and marketed by competitors. Firms must be able to produce differentiated products
at competitive costs to reduce upward pressure on the price that customers pay (Hitt, Ireland, & Hoskisson, 2009). When a product’s differentiated feature is produced in non-competitive costs, the price for the product can exceed what thefirm’s target customers are willing to pay. When the firm has a thorough understanding of what its target customers value, the relative importance they attach to the satisfaction of different needs, and for what they are willing to pay a premium, the differentiation strategy can be successful (Hitt, Ireland, & Hoskisson, 2009).Through the differentiation strategy, the firm made a non-standardized products for customers who value different features more than they value low cost. For example, various flavour, high quality ice cream and big chocolate chunks in the ice cream are among the differentiated features of Ben & Jerry’s ice cream (Hitt, Ireland, & Hoskisson, 2009).Ben & Jerry’s Differentiation StrategyBen & Jerry’s achieves a differentiation strategy by brand awareness, flavours and CSR (Corporate Social Responsibility) attributes (Polk, 2014).Positive Brand image through CSRConsumers may appreciate the charitable nature of the company (McWilliams & Siegel, 2001). Ben & Jerry’s has set up a charitable foundation to help support a variety of projects based in the markets in which it operates. For example, the company set up a charitable foundation in the UK when it moved into that market(Jerry’s, Our History: Ben & Jerry’s, 1999). Ben & Jerry’s also demonstrates how they care to its consumers. Ben & Jerry’s donates 7.5 percent of pre-tax profits tocharity, while the average corporation in the United States donates 1 percent (Dennis, Neck, & Goldsby, 1998). The organizations that receive the money
You've reached the end of your free preview.
Want to read all 7 pages?
Marketing, Corporate social responsibility, ice cream, Ben & Jerry's, Ben Cohen