Challenges For Ben And Jerry’s Expansion Into The Australian Market

Background of the Study

The primary focus of the study is to critically assist the Ben and Jerry to engage in expansion of their opportunities in Australia. Ben and Jerry’s can be identified as one of the largest enterprises which is engaged in the sales and manufacturing of ice creams, sorbet and the frozen yogurt. In regards to this, the firm was formulated back in 1977 by Cohen and Jerry Greenfield. Since then, the enterprise has been very successful in positioning itself as a sustainable brand with its high quality products (Benjerry.com 2022). The chapter is focused on discussing the background of the study alongside providing an outline of the research objectives and questions which the research intends to resolve.

Ben and Jerry’s found its popularity in regards to engage in sales of products which were of very high quality. In addition to this, engaging in employee satisfaction could be identified as another factor which influenced the expansion of the firms. At present it is interested in engaging in an expansion into Australia which is known to be a hub for vegan items and gourmet high quality food products (Sha  and Xiong 2020). However, the competition within the industry is very high and hence, the enterprise would be required to apply a suitable expansion strategy which would give way to better performance within the country and a suitable market positioning strategy which would allow the enterprise to engage in better results.

The purpose of the study is to examine challenges and issues which are faced during the launch of the Ben and Jerry’s in the Australian market. The enterprise offers plant-based meat and through the research, the focus lies on the evaluation of the issues that would be faced by Ben and Jerry’s in Australia in selling vegan products like plant-based meat. The identification of the issues could affect the operations and growth of the company, which would affect the product differentiation by the firm. As the expansion of the business operations is a complex procedure, the research would guide the organization in achieving its goals and abide by the competitive rivalry through differentiation and a comprehensive positioning strategy.

The vegan industry has become very popular in the last few years. In this regard, the meat alternatives have increased to a greater extent and several angel investors have begun to invest in recreating the taste and feel of the meat. Plant based vegan meat has several benefits and is particularly sustainable in nature. In this regard, it is critical to underline the fact that there are several marketing tools and related engagements which can be applied by the enterprise to become a consumer’s choice. Hence, through the given research, the related problem would be critically examined and solutions to improve the same would be provided.

The research objectives which have been set for the study can be identified as follows:

• To identify the factors which influence the customer behaviour towards the plant-based meat products
• To assess the external factors which have an impact on the vegan products in the market.
• To identify the extent to which the product differentiation can be identified as a suitable strategy to accelerate the market growth for the plant-based meat
• To analyse the attitude of customers towards plant-based meat in the market
• To analyse the attitude and loyalty of consumers towards the vegan food items

The research questions as set for the study are as follows:

• What are the factors that impact customer behaviour towards plant-based meat products?
• What are the external factors that impact vegan products in the market?
• To what extent product differentiation is a good strategy for the company in accelerating the market growth of plant-based meat?
• What is the attitude of customers towards plant-based meat in the market?

The demand of the consumer for the meat alternatives have recently grown over the last few years since consumers have been within the journey of the realization on how their purchases as well as the choices of lifestyles have impact over the planet. Irrespective of the hype and the increased number of consumers switching to plant-based alternatives, consumers have also become aware regarding the negative aspects (Boukid 2021).  The research study targets to examine the consumer and the market related challenges as well as the issues for launching the meat products that are plant based within the market, adhering to the Australian market, the assignment examines the challenges in the launching of the vegan product of Ben & Jerry’s.  The investment in the alternatives of meat in Australia has been on an increasing rate. Some of the famous investors include Bill Gates, Biz Stone and Evan Williams who collaborate targets to recreate the feel and taste of the meat without harming the planet.  Irrespective of the numerous health benefits promised by the vegan food industry, there are numerous challenges both from the customers and the in the market penetration for the products.

Research Objectives and Questions

The literature review helps in understanding and analysing current trend of vegan food in the Australian economy. The study is mainly based on analysing the problems which can be faced by Ben & Jerry’s in the economy of Australia along with identifying the patterns of the buying behaviour among customers. With the help of the different consumer behaviour theories along with analysing the product differentiation approach in this approach, proper analysis needs to be done which will be beneficial in understanding the overall scenario in detailed way.

From the different reports and surveys which have been conducted, Storz, Müller and Lombardo (2021) have commented that Australia is second most popular kind of nation in world for the vegans in the year 2020. It has been estimated that more than 2.5 million Australians which is approximately 12.1% of the population have mainly taken up the vegetarian food as their diet, and more than 500000 mainly towards consuming the plant based meat.

As stated by Salehi, Díaz and Redondo (2020), the veganism is present and is becoming popular in world, with the vegan alternatives popping up in the different restaurants and supermarkets menu. The overall statistics have been capable of representing the fact that between the years 2015 to 2020, the vegan food market is mainly being projected to be third fastest growing vegan based market in world and with growth rate of more than 9.6%.

The different surveys concluded that Sydney, in Australian economy is having most vegan establishments and this will be quite helpful for understanding that the population for consuming the vegan food is increasing and gaining competitive advantage.

As commented by Salehi (2018), the veganism is considered to be the developing concept that has the origins in 21^st century. It is noted that in the current scenario, the consumers mainly prefer to be quite health conscious and due to this, the vegan food based demand is quite high which will be leading to the effectiveness in the firms which are selling such plant based meat. Martinelli and De Canio (2021) have commented that consumer behaviour is influenced by array of the factors which include personal kind of tastes, convenience, social norms along with concerns regarding health and animal welfare.

As commented by Czarniecka-Skubina, Górska-Warsewicz and Trafia?ek (2020), the overall move towards the plant based food and meat along with diets is mainly being driven by the combination of the concern for the health of the consumers, animal welfare as well as the environmental sustainability. Moreover, as stated by Chai et al. (2019), the Vegan food products are continually climbing the early adopters stage as it is noted that in Australian economy, more than 37% of the people say that sustainability is the reason why they choose the plant based diet and meat. In comparison to the diets which are rich in animal products, the plant based is more sustainable as it is capable of using the significantly fewer kind of natural resources as well as puts less amount of pressure on environment.

As commented by Chai et al. (2019), the core concept which is present in this Buyer behaviour theory is basically that the purchasing behaviours of the consumers are usually repetitive in nature. They prefer to consume the products to which they are familiar in nature for saving the time and also for simplifying the process of decision-making. However, it is seen that as discussed by Salehi (2018), as per the consumer behaviour theory, preferred choice of the buyers mainly depends on the motives, alternative choices or the course of the actions. Similarly, in case of Vegan Food Items, it is mandatory to be understood that the people prefer to purchase the food items which are meeting their motives as they are health conscious.

Challenges of Launching Ben and Jerry’s in Australia

 Through understanding the different mediators, alternative brands present in market can be suffering from different issues like no profitability or no revenue growth. These can be judged by the buyer behaviour aspect and this will be beneficial in meeting all the requirements in a specific way. Salehi (2018) has commented that regardless of any kind of source, one making purchase mainly develops decision based mediators which are needed for reliably choosing the brand in future. This is completely based on whether these are meeting the demands of consumers and as a result, it will be effective for understanding the overall efficiency in the successful way.

Packaging challenge is one of the major component/variables contributing the market and consumer challenge in the launch of plant-based meat products at Australia (Pandey and Pandey 2021). Lack of proper content list in the trademark of the products of the company hinders its market acceptation (Hwang et al., 2020). Both the market and the consumer get sceptical regarding the product since the trademark does not guarantee the non-inclusion of animal derivatives.

Implementation of product differentiation involves issues regarding the changing perception pf the existing customer base of the organization and the population of Australia (Zangirolami-Raimundo et al., 2018). Some of the significant factors enhancing the market challenges of launching the product in the Australian market includes nonguaranteed increase of revenues, possibility of the decline of the perceived value of the product and possibility of straining exiting resources and existing brand image. Regarding the context of the theory of buying behaviour, this variable/component also induces consumer related challenges (Kelly et al., 2018). This is because, consumers often disapprove or does not initiate in accepting any alternative to their existing comfort zone related to food choices.

Legal issues and ethical concerns are the variables/components contributing to market and consumer related challenges in launching plant-based meat products (Snyder, 2019). Organization do face legal challenges in the conduction of risk assessment for the identification of risk or failures in the manufacturing of the plant-based meat by the organization. Also, the context of claim of equality among the vegetarian and the non veg stands to be invalid under the legal norms. Finally, labelling concerns falls under the ethical challenges as the independent variable to the launch of the product and the consumer related challenges in the Australian market (Imbambi and Kinoti 2018). Lack of regulation of the label of the plant based meat as well as ambiguous category of the meat substitutes contributes to significant challenge for the firm.

Food neophobia is the reluctance of the trial towards new or innovative food by the consumer, thereby contributing to the market and consumer related challenges (Valente et al., 2019). Research studies reveal that consumer negative perception on vegan products constituting to the variables or the components, impacting the market includes the concept that plant-based meat is prepared majorly at un-natural way thereby involving artificial and synthetic food that is against nature (Bryant and Sanctorum 2021). Vegan plant-based meat is majorly indistinguishable from the normal meat, thereby generating fear among the consumer to accept it.

Problems Faced by the Vegan Industry

The above framework highlights the impact of independent variables for the Ben & Jerry’s in the launch of its plant-based meat products under vegan food categories in the market and for the consumer of Australia (dependent variables).

Adhering to the theory of buyer behaviour, preferred choice of buyers is majorly informed by the choices, environmental factors and the courses of action (Alcorta et al., 2021). The theory adheres to the fact that behaviour of buyer tends to be reliably repetitive and is also prone towards the establishment of familiar purchasing routine for simplification of the process of decision making (Florack et al., 2021).  The below discussion highlights the relationship among the variables/components and the theoretical framework for articulating the theorized relationship.

For the research methodology, simple random sampling was used for the primary data collection. The researchers used qualitative data throughout the methodology for examining the challenges.  

For this research study, descriptive research design has been utilised for the analysis of the challenges. The overall research design involved analysis of the behaviour and the intentions of the consumers with the target of characterise the circumstances at a precise and methodological manner. Two variables, the consumer and the market has been considered for the research method design of the study.

The data collection method for the research study is inclusive of a quantitative approach, both secondary and primary data have been used for analysis of the research issue. Primary data have been collected by the basis of interview method. The overall inputs of the participants have been recorded on the basis of the interview questions which included questions on their preference on plant based vegan meat products (Stubbs et al., 2018).  The targeted participants are the existing managers of vegan based products in Australia.

The data analysis method may be identified as the key technique using which the data collected is analysed critically. The qualitative data analysis has been utilised for the gain of a better understanding of the research ideas and viewpoints. The qualitative data set based on the interpretivism theory has helped in a better understanding as well as the analysis of the collected set of data.   

The limitations of the study are that, only 3 participants have been considered for the interview. Also, for the primary data collection, only interview method and distribution of questionnaire was done by the researchers in the study. No consideration of online surveys, experiments or focus groups was done for data collection of the research study (Sha and Xiong 2020). Also, lack of enough time is another limitation for this research study. Majority of the questions centred around the difficulties of vegan food business and very little question were listed in the questionnaire regrading customer choice, customer demand and perception of consumer on the relation among vegan food with lifestyle choice and environmental sustainability. 

Australia is a lucrative market for the new businesses which would like to extend their overall operations to a country which is open to several opportunities and engagements. However, the meat alternatives market is still developing and in this regard, it becomes critically important to note that any firm extending its operational base in Australia would be required to ensure that they are successfully being able to understand the dynamics of the market. Hence, the chapter follows a systematic format whereby the key themes have been formulated based on which the findings of the interview have been discussed. This discussion has been done in alignment with the theory so as to ensure that the research outcomes provide a clear picture of the plant based vegan market so as to identify the way in which the Ben and Jerry’s would be able to extend its engagements in Australia.

• Factors influencing the customer behaviour towards plant based meat products
• External factors impacting the sales and marketing of vegan products in the market
• Product differentiation for market growth
• Customer attitude towards plant based meat in the market

Market Analysis of Vegan Food in Australia

According to Imbambi  and Kinoti  (2018), consumer behaviour or the buyer behaviour may be identified as the overall engagement done by the customer before purchasing the product. In this regard, it may be identified critical to note that several factors such as the cultural, family, environmental and related factors have a strong influence on the overall behaviour of the customers in regards to purchase. The same has been asked to the different participants and the following responses were attained:

In my opinion, the price, taste and the overall benefits provided by the vegan items to the consumers may be identified as the key factors affecting which have a strong influence on the customer behaviour towards such products.

In my opinion, the health benefits, environmental consciousness and the associated pricing can be identified to be the key factors which influence the customer behaviour towards plant based meat products.

The key factors influencing the customer behaviour and overall purchase are environmental considerations, awareness, price, health and image in the society.

Therefore, from the responses it can be rightly outlined that in the case of the vegan food options, the different factors influencing the related decision making may be rightly identified as the awareness about the product, the pricing availability, the environmental considerations and the overall image in the society. In this regard, it is evident to underline the fact that awards and pricing were identified to be some of the key factors affecting the decision making of the consumers at large.

Once an understanding of the factors relating to the customer behaviour were understood critically, it becomes evident to note that an understanding of the external factors impacting the sales and marketing of the vegan products was largely critical in nature (Kelly, Wagner  and Ramsay  2018). Hence, when the external factors were reviewed, it is important to take consideration of them and note the laws, regulations, competitive rivalry and pricing standards need to be abided by. Pertaining to this, the following responses were achieved:

Pricing laws, competitive rivalry, laws and regulations alongside environmental awareness and the related considerations are some external factors which influence the sales and marketing.

The switching cost of the customers is very high because the high end brands have also been trying to enter the given industry. In consideration with this, it becomes evident to understand that not many new firms would be able to engage in the related endeavour.

The external factors which may influence the sales and marketing of the vegan products can be identified as the competitive rivalry, food and related laws alongside the popularity in the market.

Therefore, from the responses as received, it can be rightly assessed that, the external factors such as laws, environmental factors, the social activism against the meat, related pricing policies and the overall awareness are some key factors which lie external to the consumer behaviour and decision making but have a very strong influence on the popularity of any business which intends to extend its base to the vegan market in Australia.

Consumer Behaviour in the Vegan Food Industry

Hwang (2020) mentions that in order to be successful in the long run, product differentiation can be undertaken as a critical factor. Hence, as there already exist several enterprises which are focused on the vegan market, it becomes evidently critical to understand that the enterprise would be required to engage in product differentiation. Pertaining to this, it is evident to understand the fact that when asked about the same, the different respondents had the following responses:

To differentiate the products items which do not have a vegan alternative may be hired. Or higher price with better taste opportunities would be hired.

The product differentiation for the market growth may be identified as the key way in which the firms may find success. Here it is important that creating low cost vegan products might be the key to success.

Maybe in the form of packaging, on spot delivery and variety in products can be done to increase the market growth.

Hence, it can be rightly understood from the responses that the managers of the vegan businesses were under the strong belief that the product differentiation could take place in the format of lower prices, different taste, more product variety and related opportunities which may lead to better engagements. In this context, it may be identified crucial to note that if the firm wants to attain long term success, then the application of these strategies may be identified to be crucial for the future of the firm.

Florac et al. (2021) states customer attitude as one of the most successful factors towards the plant based meat in the market. If the attitude of the customers may be modified to a greater extent, then this could lead to better results in terms of overall sales and acceptance. Therefore, it becomes critically important to understand the fact that when the managers of existing firms were asked about the customer attitude, the following responses were attained:

The customers have become increasingly aware of the related concepts associated with the sales of the products and associated opportunities.

Consumer attitude and needs towards vegan plant based meats have been increasing in a consistent manner.

Customers are now slowly driving through the plant based meat industry. Pertaining to this, the different customers strongly believe that engaging in such facilities would be better for their health.

Therefore, it can be identified that the customer attitude has a critical role to play in attaining success towards the business. In regards to this, when the right kind of attitude can be altered, it would lead to better results for the firm at large.

Conclusion

Therefore, the study followed a comprehensive format whereby the focus was to understand how the chosen enterprise, Ben and Jerry’s would be able to enter successfully in the Australian Vegan market. Pertaining to this, it becomes evidently crucial to underline that the first chapter formulated the base of the study which was then followed by the identification of research aims and objectives. Pertaining to this, the primary qualitative research technique had been applied to the study. In line with this, the findings identified that the vegan industry of Australia had been performing considerably well and therefore, to find success, the consumer behaviour aspect was required to be catered to by Ben and Jerry’s. The insights have been explained in the fourth chapter which states that the taste, price, environmental and health considerations associated with the customer behaviour were critical to the success of a firm. The objectives set for the study intended to identify and understand the overall way in which the market entry, differentiation aspects and consumer behaviour can be catered to. Both the review of literature and the findings have been able to achieve the research objectives as set.

Factors Influencing Consumer Behaviour

The following recommendations can be provided in regards to the enterprise:

1.The social media marketing has to focus on the viewpoint of the different customers and hence, the engagements would be required to see to it that the changing viewpoint is captured.

2.Displaying the health and environmental benefits of the brand offerings is crucial to success.

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