Ice Fili Is The Top Ice Cream Company

The relevant external environment segments to this case are technology, legal & political, cultural and demographics. The Russian ice cream industry was behind in equipment and technology use. Their production techniques, ingredients used, and packaging primarily. It was estimated that most Russian firms were 40 to 60 years behind the world’s technology level. Ice Fili alone invested millions of dollars to import new equipment. By the late 90’s 90% of the equipment used by Russian ice cream manufactures to produce and sell was imported, which created huge costs to the firms. With the introducing of refrigeration this opened up new opportunities for the Russian ice cream industry to expand, modernize, and change the way they produce their products.

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

In Ice-Fili’s case, they used multiple suppliers for the same raw materials and had a steady stream of offers from new suppliers. Equipment manufacturers had more bargaining power; however, as more domestic producers begin manufacturing that equipment, their bargaining power erodes. Bargaining Power of Buyers is moderate. Their buyers are resellers as well as consumers. Switching costs for buyers are low, resellers don’t have any particular brand loyalty, and consumers can purchase the same style of ice cream (such as Lakomka) from multiple different companies. That being said, a sizeable portion of the market prefers domestically produced ice cream that does not contain preservatives. Another portion of the market is willing to pay much more than the average price of ice cream for what they view as a premium product and experience. Threat of New Entrants is also moderate to low. While there are new companies joining the market, fixed costs are high, including the need to import equipment for production. Many of the companies that have entered the market are companies who already had cold storage facilities that were underutilized. As this excess capacity phases out, the number of new

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

Everyday there is an alcohol related incident in the world. The poor decision making by young adults cost people’s lives everyday. The original drinking age was 18 years old, it was changed because scientists discovered the brain doesn 't fully develop until the age of 21. But what people don’t know is that the brain fully matures at the age of 25 years old. Car rental places have the age at 25 to be able to rent a car because of young people decision making on drinking and driving. For students in college alcohol can ruin not only their future of becoming something but it can ruin their life by doing stupid things. Most college kids who stay out and party in college fail or flunk out. The dangers of drinking young can lead to many things,

While analyzing the Ice-Fili case study, I determined that all six parts of the general external environment are applicable. With the economic crisis and the dissolution of the Soviet Union an open market economy emerged. An open-market system meant that the government had little to do with the regulation of the market which created issues because companies just like Ice-Fili could not patent or trademark some of their best-selling ice cream creations. Companies took advantage of this and put their own twist on some of the highly profitable Ice Fili ice creams like the Lakomka.

As Figure 2 shows, both groups under the age of fifty are similar, possessing a strong preference for beer followed by wine and liquor. However, fifty and older consumers’ preferences show an increased interest in wine and a decrease in both beer and liquor. This shift suggests that many beer drinkers move away from beer as they age and gravitate toward wine. There is significant market potential if Bud Light can lure these fifty and older drinkers back to beer and away from wine.

Contrary to Nestlé, Ice-Fili runs its business since ages. Therefore, the company is well-known by the Russian customers.

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

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. Decline in competitor popularity – As frozen yogurt seems to have reached its maximum tier, this creates an opportunity for an ice cream business to obtain more of the market share.

The biggest leading market for Frozen Yogurt globally are US and Europe, with the US producing more than 50% of the sales in 2015. The marketing for this product in the US is so efficient and has recorded a big evolution over 25% between 2009 & 2014, “says Technavio. “this big increase might be advantaged to the rising number of the Frozen Yogurt franchises across the country and increasing demand from customers for a healthier alternative to ice cream. The storyline will stay the same the forecast period. However, the evolution rate will slow down as a result of the mature nature of the market. rising private equity investments will develop as a driving force for the growth of the market,” according to the study.

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

This assignment is about Fonterra Company entering into Russian market with product cheese. And also includes about the challenges faced by company when you enter into new market and also

Recently, there have been increasing trends of younger customers consuming alcoholic beverages. With improvements in economies, education and technology, younger