ICE-FILI CASE 1 - How attractive is the Russian ice cream industry in 2002? The main data about the attractiveness of this market are: - The consumption is about 6 times lower than in France, Canada, US because of a different mode of consumption. Indeed, Russians consider Ice Cream as an “on the go” snack and not as a dessert they can have at home. - producing in Russia implies a certain adaptability of recipes since traditional Russian ice creams contain less fat and are made with natural ingredients plus one must take into account the high seasonality of consumption. - While the demand for beer, soft drink and confectionary industries is increasing, the demand for ice cream and therefore its production keep on decreasing. 2 - What …show more content…
As it will be a change in its positioning and the occasion to attract new customers, Ice-Fili cannot continue with such a low level of advertising. 4 - Analyze the key strategic options available to Anatoliy in 2002 as he seeks to take Ice-Fili forward. 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. To achieve that Ice-Fili will highlight its main asset: the fact that their ice creams are made using only natural products. This corresponds perfectly to the needs of Russian consumers and this is a very differentiating element with respect to its competitors. However, many problems are emerging: Ice-Fili has only 5% market share and has a lot of competitors with no major leader, it will be difficult to gain significant portions of market share in such a fragmented industry. Furthermore, the company does not seem to have the required people within its
Since their biggest competitor is a foreign entity (Nestle) who uses western manufacturing practices and ingredients, one strategy may be to market heavily on the merits of all-natural ingredients. They have already joined an association which promotes domestic producers over foreign producers and should further capitalize on the gains made by this association. Substitution: Since one of the highest threats in the industry is the threat of substitution, Ice-Fili could look to diversify their offerings. This could mean producing a wider variety of food products, or it could mean selling/renting out unused capacity, particularly cold storage capacity, to other industries. Buyer Power: In order to mitigate the bargaining power of buyers, Ice-Fili may consider shifting a larger portion of their sales to direct-to-consumer channels as well as creating exclusive agreements with resellers. In addition, they could focus their marketing efforts on building brand loyalty. For products for which they aren’t able to secure licensing, such as Lakomka, they could rebrand it as “The Original” Lakomka or something similar that capitalizes on the longstanding popularity of the product. New Entrants: To combat the threat of new entrants, Ice-Fili should continue to focus on developing more efficient ways to produce ice-cream as well as the maturation of their distribution channels. If they are able to further add to
In contemporary China, people not only focus on what’s delicious, but also the health benefits that the food product had to offer. Frozen yogurt is a hybrid food, offering both a delicious taste and health benefits. The usage of fresh fruit and lower calorie ingredients has thrust frozen yogurt into popularity amongst dessert lovers worldwide, while still capturing the health food sector of the market. High quality and healthy food defined the Yogen Fruz culture and allow the company to appeal to its target market.
My recommendation is for the company to stay focused on its main competitive advantage of supplying a
My current product is a variation of ice cream flavours, it is sold in store and can be also taken home if the consumers want it to be. There are many different flavours that can come in a tub, cone, or a bowl.
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.
An interior project called Gelatoria is being developed. To make this successful, it is important to become familiar with the industry not just by knowing the components and ingredients of product but also through familiarity with other factors correlated with the success and survivability in the market. The typical gelato shops in Italy are characterized by its unique atmosphere imitating the European lifestyle. Its homemade frozen desserts are the center of attraction not only for adults but for all consumers of all ages. Gelato is indeed popular in Italy as it is enjoyed by all kinds of consumers (D’amico, Nevstrueva, Guan, Gon, Annini, and Yang 8). This paper aims to provide a discussion of the cultural, economical and social factors that affect the industry of gelato, ice cream, yogurt and other frozen desserts. These factors will provide a deeper understanding why certain products become successful in specific regions and how culturally diverse products could be introduced to other nations.
Ice-Fili is the top ice cream producer in Russia. Currently, the company is experiencing tough competition with Nestle, Baskin-Robbins and regional ice cream producers. Its loss in market share due to their poor quality decisions-making after Russia became an open marketing in 1992. Nestle took great advantage of Ice-Fili’s low reaction adjustment and is taking over their market.
We at Temple Consulting have completed an analysis of Ice-Fili’s current corporate standing using data collected over the past several years. Using tools such as Porter’s Approach and SWOT we have analyzed the internal and external environments and have recommended several strategic plans of action. Current areas for improvement such as marketing initiatives and re-evaluation of distribution channels will increase sales and profitability almost instantly. Long term plans such as lobbying against luxury tax on ice cream, partnerships with franchise vendors, and bringing new products to the market, performing an IPO, and planning more global efforts will help keep Ice-Fili rooted as the
Nestle would also gain access to a very large share of the novelty ice cream market. As seen in Table B, Eskimo Pie owns 5.3% of this particular market. With Nestle not in the top 5 producers in this market, Eskimo Pie would
Chobani is a greatly successful company based in New York, where their Founder Hamdi Ulukaya moved to when he came to the states from Turkey (Chobani History 2016). Chobani is a company known for having the best Greek yogurt in the United States. Chobani prides themselves on having a high quality yogurt that is incomparable with any other brand of yogurt out on the market. This dedication the quality is what sets Chobani above everybody else is directly causing their positive business growth. By the end of 2015 Chobani’s revenue was at “$1.5 billion where their competitors were at $250 million” (Giammona 2015). What differentiates Chobani between its competitors is its dedication to the quality and the fact that the Chobani Greek yogurt is healthier than that of Dannon and in any other competitors brings as they use all natural ingredients on where others may have antibiotics and other unhealthy byproducts in their yogurt which can be poorer for health of the consumer. With Chobani’s small staff of 2000 employees and their solo headquarters and different type of product manufacturing, Chobani makes a huge difference in less mechanical and robotic form of creating the yogurt that those of the competitor’s process to creating quality within the product. Companies such as Coca-Cola or Pepsi Co would want to buy a Chobani there has been no offers them product differentiation such as the purchases the Coca-Cola has made with Vitaminwater (Martin, Sorkin
1. Please provide an in-depth five forces analysis to illustrate the competitive environment for Russia’s ice cream industry. How is it likely to evolve?
Ice-Fili is a famous and one of the oldest ice-cream producers in Russia. Ice-Fili produces ice cream generally loved by consumers because its products contain 15% milk fat, compared to 10% found in the western ice cream. Ice-Fili traditional method of production adds to the unique flavor of its product. Typically, the company produces ice cream with natural ingredients with no preservatives making million of foreigners to consider Russian ice cream to be best in the world. In 2002, Ice-Fili engaged in an aggressive unique product offering, and the company offered up to 170 different kind of ice-cream products, and the company adds other
Besides sales increment, the number of ice-cream manufacturers, parlour and restaurants has grown and they are gaining popularity by introducing new flavours of ice-cream and providing a comfortable environment. Supermarkets play a role in supporting the sales by selling multipack ice-cream and bulk ice-cream. (SeowMIee, 2011) Hence, we will use PEST, SWOT and Porter's five forces analysis to analyse the industry.
In the late 20th century, the ice cream industry market share was classified into frozen novelties and packaged ice cream, and packaged ice cream could be divided into super premium, premium and lower-price products. Dreyer’s Grand Ice cream Company mainly focused on the premium products.
Convenience is driving the frozen market sales globally as consumers are looking for healthy and less time-consuming meals (Seth and Randall, 2011). Private label is performing extremely