Description of Nestlé (Thai) School Channel in Ice-Cream Business Unit and Current CRM Complication

Course Description This course involves an integrated analysis of the role of marketing within the total organization. Specific attention is given to the analysis of factors affecting consumer behavior, the identification of marketing variables, the development and use of marketing strategies, and the discussion of international marketing issues. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents:   University policies: You must be

In this case, Ice-Fili hold this competitive advantage since the company mainly use natural ingredients and do not use any preservatives or colorants (“Lakomka”). At the time of the case Ice-Fili’s ice cream are seen as a quality product which fit with the traditional recipe. At the opposite, Nestlé adds preservatives which distort the taste, but by using these ingredients, it decreases the total costs.

You will also read about the Company’s advertising strategy and how this approach will bring into line the Company’s marketing goals. It will be determined how effectively the advertising will be measured and how the different promotional strategies relevant to the Company advertising will be utilized. Further discussion will establish the best marketing research approach used to measure customer satisfaction with the Company’s product (cassava powder) and training service initiated to train farmer in implementing large-scale farming. It will be explained how gaps in customer expectations and experiences will be addressed by the marketing wing of the Company, using the high knowledge and proficiency of experienced and well-schooled people in marketing management.

Ice-Fili cannot rely on their contractors to have the same level of motivation to constantly be supplying retailers and thus cannot hope to compete against firms like Nestle with their existing strategy. Essential to having a working distribution strategy is choosing where to distribute. Currently Ice-Fili focuses on supplying their products to kiosks, gastronoms, and minimarts. They seem to be ignoring the rapidly growing trend in sales for larger quantities of product being sold in supermarkets. Competitors such as Nestle have been supplying supermarkets internationally for quite some time and thus have a distinct advantage over domestic Russian producers. This will serve as either a major threat or a major opportunity for Ice-Fili as this market is fairly new to Russia and has yet to be divided up between competitors. Marketing Lack of ability to build up strong marketing mix is the common and the most vulnerable point amongst Russian producers. Contrarily, foreign companies have been showing off their matured marketing skills in the industry. This is attributable to the fact that Russian managements are not used to building marketing strategy, having used to enjoy a time without pressure of marketing under the state-run economy system during Soviet era. Consequently the company’s marketing mix is uncoordinated to the extent that its brand identity is ambiguous. The most critical thing that has blurred

Brown, T. (2014). Basic Marketing Research, 8e, 8th Edition. [VitalSource Bookshelf version]. Retrieved from http://online.vitalsource.com/books/9781305178571/page/24

We believe that Ice-Fili, to stop the decline in its market share, should focus on the market opportunities in the Russian ice cream market. The main opportunity seems to lie in consumers’ behavior. They only consider ice cream as an "on the go" snack. Ice-Fili should use all possible means to create a change in their way of consumption. It would be doubly useful as it would both increase ice cream sales in restaurants but also in supermarkets so that families eat them at home.

The strategic sites depend on the target consumers and segment. Based on the focus market survey and target market data, the male students and the first time first-year students are most likely to respond, and the likelihood of customer retention is higher in the two identified targets.

Ice-Fili’s marketing approach and product distribution could be seen as weaknesses in the company’s primary activities. In 2001 the firm started its first TV marketing campaign years after competitor’s advertised through the media outlets. To date Ice-Fili is still very inexperienced and far lacking of marketing strategies deployed by Western competitors such as Unilever and Nestle. Not only does Ice-Fili need to market more fiercely against competitors within industry, it must also compete against other consumables such as beverages and snacks. Another weakness is the distribution that is handed over to several distribution companies. There is a much higher chance (twice as likely) to find products of its biggest competitor Nestlé than those of Ice-Fili. Another detriment is how ice cream is viewed socially. Currently ice cream is primarily an impulse purchase. If Ice-Fili can change this outlook, it would result in an enormous

The case focuses on Kellogg’s Special K brand and considers how the marketing of this has changed over time. Marketing is not static – it must be developed as market conditions and customer expectations change.

The sales volume and market share of Hy Dairies’ gourmet ice cream brand had picked up significantly over the past two quarters compared with the previous year. As the vice president of marketing at Hy Dairies, Syd Gilman credited this achievement to Rochelle Beauport, the assistant brand manager at the time, and decided to reward her with a newly vacated post of marketing research coordinator. Based on his own career experience, Gilman was very much convinced that the marketing research coordinator job would provide Beauport with greater career potential with Hy Dairies. However Rochelle Beauport, being one of the top women and few visible

This dissertation is submitted in partial fulfillment of the requirements for the Degree in Marketing Practice

To be successful in business, "a consumer does not buy a whole of physical components of the product but it is usefulness, function, satisfaction of consumer's needs, solving the problem, etc" (Dubrouski, , p.1). "That is why the product is a whole of tangible and intangible components which means satisfaction of consumer's needs and desires, solving the problem"(Dubrouski, p.1). Companies and managers must learn to utilize marketing research, as well as, strategy skills to fulfill customers' satisfaction. Management has to focus on exclusive marketing challenges presented by the new era of the 21st century. Management has to be able to utilize inventive, dominant, and cost effective marketing techniques that will support the future success of the organization. Companies must meet,"the increasing importance of services as part of a product (offer, offering package) which cannot be neglected" (Dubrouski, p.1). Exploring the purpose of market research, as well as, evaluating the importance of such research, facilitates managers in realizing the importance of marketing to an organization's success and to be globally competitive.

The shared thoughts and beliefs of the customers influence the business operations. The culture, life style, norms and values force Nestle to deliver the specific product to the right segment. Nestle so far has considered the social perspective well. The company has well understood the concept that consumers changing attitude has immense importance.

Makro, a whole sale retail outlet holds 16% of the market share (Jitpleecheep, 2014: Appendix B). The retail industry of Thailand accounts up to 1.4 trillion baht, which is close to 27 billion pounds. 40% of 1.4 trillion baht is from the modern trade which incorporates the major hypermarkets and their online shopping websites (Appendix C). It is expected that over time, the market of the retail industry is to grow by 3% to 5% each year, thereby a consistent competition is expected for Tesco Lotus and Big C super centres.

At the beginning, this market segment represents about 30% of the total potential sales. In the current years, there are few ice-cream produces on the markets that are designed for this segment, because of there are increasing group of consumer in this segment are more concerned and aware of the implications of diet on their health. Most of there consumers do not buy ice=cream as a consequence, such as they thought ice-cream have high calories and not good for