Ben & Jerrys was experiencing a steady growth within their gross revenue figures from 1990 to 1993. However, In March 1994, Cost of Sales attachd just ab step to the fore $9.6 million or 9.5% over the same period in 1993, and the overall gross profit as a persona of net sales decreased from 28.6% in 1993 to 26.2% in 1994. This passing office have been a result of several reasons, much(prenominal) as high administration and selling costs, a invalidating impact of inventory management, and start up costs associated with received flavours of the new Smooth, No Chunks ice cream line.
Ben & Jerrys selling, ecumenic and administrative expenses increased approximately 28% to $36.3 million in 1994 from $28.3 million in 1993 and increased as a piece of net sales to 24.4% in 1994 from 20.2% in 1993. This increase might reflect the increase in marketing and selling expenses and the increase in the companys administrative infrastructure.
Ben & Jerrys loss was non solo due to their employee orientated approach, but they appe bed to have taken out a vast amount of capital lease in their aim to automate their production to keep up with the main(prenominal) competition.
As reflected in the balance sheet, Ben & Jerrys had reinvested huge amounts of property and equipment in 1994 increasing their long-term debts by almost 45% in 1993.
Alternatives available to the consumer now, and in the foreseeable future
Haagen Dazs is currently the main adversary in the concentrated market place for super subsidy ice cream. Substitutes are however available. There are other ice creams not in the super premium category. To an extent, these are real competitors. However for the market B&J caters for {the up market 25-40s with a high disposable income} their strategies should not have a great impact on B&J. The frozen yogurt lines which...
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