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Baskin Robbins Case Study

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Established rivals- the Russian ice cream market has blossomed as a fast-growing market around Moscow based ice cream companies. In a 6-year period from 1996 to 2002 it grew from 110 to 300 companies. Primary competitors include multinationals Nestle and Baskin Robbins. Typical of large multinationals they have diverse holdings, bring marketing and branding expertise, and can endure market fluctuations while building market share. Baskin Robbins has perused and dominates the restaurant/ café segment enjoying few competitors if any. It expanded through a franchising model and is now in 35 cities with 105 cafes. Baskin-Robbins capacity utilization is only functioning at 7-12%. Nestle is the largest threat. They invested early in a domestic infrastructure, and training and development of local staff. They produce Non-traditional Russian ice cream and have developed several specific products for the market. They are aggressive in advertising through TV and have a history of a total domination market strategy often becoming the only brand available in a region. Regional producers have also taken hold in the market and have built new manufacturing facilities taking advantage of lower rents and labor costs. They offer a more limited range of products but have entered the ice cream market through a diversification strategy to support and stabilize other frozen meat and fish operations. These regional producers also enjoy the advantage of being very flexible often meeting the needs

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