Marketing and Ice Cream Producers

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Ice-Fili is a mid-sized and privatized joint-stock company in Russia. In 2002, it ranked as the top ice cream producer which offered 170 different ice cream products and had more than $25 million in sales. In addition, Ice-Fili’s flagship ice cream brand --“Lakomka” was responsible for 30% of the company’s sales. However, Ice-Fili has been losing its market share and experiencing a decrease in sales volume in recent years due to the increasingly competitive Russian ice cream market.
External Analysis
Life Cycle Stage
The Russian ice cream industry was in the growth stage after 1996, the ice cream consumption value had a huge increase from 222,000 tons in 1996 to around 376,000 tons in 2002. However, the industry
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Branding: In order to sustain a competitive advantage, it is vital for ice cream producers to build brand recognition and loyalty through investing large financial resources on marketing.
Extensive and Efficient Distribution: By making full advantage of nationwide distribution channels, ice cream producers can increase their product availability and brand awareness, and thus reach a larger customer pool.
Strategic Groups | Market Share Leaders | Premium Producers | Regional Producers | Products Price | Mid-level | High | Low | Characteristics | Use national distribution channels mostly, serving both on-the-go and household consumption markets. | Distribute differentiated, high-price products through franchised restaurant and cafe networks | Focus mainly on regional areas through low price and on-the-go consumption | Examples | Ice Fili and Nestle | Baskin & Robbins and Haagen-Dazs | Inmarko and Russkii Holod |

Internal Analysis
Resources & Capabilities
In 2001, Ice-Fili produced 200 tons of ice cream on a daily basis. Using different assortments and flexible equipment, Ice-Fili provided its customers with a wide variety of ice

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