Ice-Fili Case

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Ice-­‐Fili Case Study Comm 491 – Momo Deretic 9:30am Tuesday/Thursday

M a r t i n M , R y a n P , S o h y u n P , D i e g o S

Introduction From 1996 to 1998 Ice-Fili suffered from huge increases in costs that gradually ate at their margin at alarming rates. Even worse, from 1999 to 2001 they had a huge decrease in sales and got into liquidity problems. The economic situation for Fili seems to be doomed even more when you add growing and strong competitors to the mix. But what caused all this? In the following problem analyisis, we will discuss basically 4 categories of issues that Ice-Fili is undergoing:
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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

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