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 the
firm’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 Strategy
Ben & Jerry’s achieves a differentiation strategy by brand awareness, flavours
and CSR (Corporate Social Responsibility) attributes (Polk, 2014).
Positive Brand image through CSR
Consumers 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 to
charity, while the average corporation in the United States donates 1 percent
(Dennis, Neck, & Goldsby, 1998). The organizations that receive the money
