Microeconomics Ice Cream Analysis

In the first place we have to see in general why people buy ice creams, and what value it has to them this type of product and then we have to analyze the different types of markets because the reasons will change accordingly with the type of (children or adults, for example) and product (premium or not, for example). So basically the answer to this question is that the reason why consumers buy an ice cream depend of some variable factors that I will try to explain here. Consumers just buy a product because of the value it has to them, because it satisfy a need they had and possibly they didn´t know. In the case of Ice creams, in general people buy the normal type of ice cream because of the flavor, the ice cream is competing with other

Unilever launches a five year strategic plan- Path to Growth. In 2009, Unilever announces new corporate vision. And enters 2010 with a new strategy: the

has pulled their weight and maintained their position on top. Established in 1937; Ice-Fili has survived the change in government, financial hard times, and the ever growing competition from international companies. However, given these events their market share, which was once dominated by Ice-Fili, has been significantly reduced. In fact the Harvard Business School’s 2005 revision of the Ice-Fili case study states that in just a few years the market share decreased by a half billion dollars. This downfall has posed the CEO of Ice-Fili, Anatoliy Shamanov, with many questions. Included amongst

Wally’s Homemade Ice Cream Shoppe, a true symbol for Historic Downtown Fredericksburg. Once a person stepped through the doors the chill from the freezers would hit their body, but all one could really feel was that the building itself had been lost in time. Rugged, vintage chairs were planted above black and white tiles that had lost their luster. Awards from years before were plastered against grimy windows. And with each passing day, another machine encountered a technical error. In this little cavity of downtown, I was challenged to utilize what skills I had learned from 17 eventful years.

Although Ice-Fili is a large scale domestic ice cream producer it must compete with other large and small firms in the overall ice cream industry. To breakdown this dynamic I will begin my report with an analysis of the overall ice cream industry in Russia, and will then move on to an analysis on Ice-Fili’s competitive advantages, and strategy. Lastly after analyzing these two areas I will provide my recommendations for Ice-Fili over the next three to five years.

Ben Cohen and Jerry Greenfield, the creators of Ben and Jerry's, gave the firm a specific soul. While the overwhelming piece of corporate managers were under consistent weight to meet their financial specialists' solicitations, Ben and Jerry were an exceptional opposite, objecting to regular business inclinations in light of without a moment's hesitation premiums and broad advantages. At to start with, their smart business improvement frightened them, as they both considered isolating ties with the rapidly creating association. In any case, what ought to be a hazard to their objectives wound up being a way to deal with brace their fight for social change. It was through their social objectives that they displayed "disapproving of free undertaking", a thinking which spread all through an expansive gathering of educational, characteristic and parties. The creators did not put emphasis on cash, apparatus, and inventories; the "significant assets" of the firm. Or maybe, their accentuation was on "subtle assets, for instance, reputation, individual fulfillment, bliss, social concerns; all of which they thought to be as critical as material assets. In this manner, Ben and Jerry's made the "Declaration of Mission", which was a pinnacle of three unmistakable parts: Product Mission - in perspective of significant worth, headway and the "made in Vermont" stamp ; Social Mission – (the most imperative mission) in perspective of individual fulfillment; and an Economic Mission - in light of advancement, financial specialist regard and care of laborers.

O Town Ice Cream was founded three years ago by Chris and Angela George. After Chris lost his position with a marketing firm and Angela was unable to continue her massage therapist job, the couple moved from Atlanta to Opelika, Alabama. On Chris’ 40th birthday, they decided to buy a ice cream cart and start a business of their own. After much success, the couple wanted to open a storefront in Opelika because of their love for the town. The main focus behind their ice cream is that each flavor is named after people and places in Opelika.

the depressed trend found in the Russian ice cream industry. In 2000, the production of ice cream was

The current economic situation has affected Cold Stone franchisees, but not to a detrimental level (T. Douglas, personal communications, September 25, 2012). One of the largest economic influences to franchisees is the influx in the cost of sweet cream. Sweet cream is the bases for Cold Stone’s made fresh daily ice cream. Corporate fees remain constant; therefore, an increase in sweet cream cost solely affects the franchisee. Franchisees attempt to offset the cost with low cost marketing campaigns. For example, franchisees may offer $1 off coupons for the duration of the sweet cream increase (T. Douglas, personal communication, September 25, 2012).

Thorntons also expanded into the ice cream industry and introduced a children’s range. However, the new product lines lowered the image of the chocolates to simple “snacks” or “impulse buys”. In diversifying its product offerings, Thorntons was soon competing in a saturated market with big names such as Cadbury. Also negatively impacting the company was the fact that not all products were proven successful. Thorntons had little experience in the manufacture of ice cream and was soon producing multiple ‘mediocre’ products instead of several ‘superior’ products. Customers were no longer sure of the quality of Thorntons chocolate and as a result, sales performance was impacted. Although by offering a wide range of products Thorntons could have possibly appealed to a greater number of consumers (including teenagers and children), product offerings were not consistent and this demographic often preferred to stick with well known brands such as Cadbury or Nestle. Therefore, Thorntons’ image as a specialist “chocolatier” was seriously damaged.

Wall’s ice cream is the branded leader in every segment in the market. They have been producing ice cream for 38 years longer than Mackie’s, and therefore have been able to firmly establish themselves as the UK’s favourite ice cream company, as well as in other developed and developing countries. Wall’s has a share of 31% of the UK ice cream market. Hagen Dazs controls 19% of the market. Ben and Jerry’s have 15% of the market.

The Beijing ice cream industry was made up of standard and premium products. The premium products consisted of 2% that was approximately 700 tonnes and rest was standard products manufactured by low cost producers at lower costs.

On average each store generates an estimated £1.3 million in revenue on a yearly basis, a gross margin of 45% and an operating profit of 20%. It is highly evident that there is stagnant growth possibly due to changes in supply and demand of ice cream products and consumer buying behaviour. These results could however be improved by expanding into emerging markets, increasing brand awareness of Frost Gelato’s ‘take home’ products, the caffe, the events and catering business, including recruiting knowledgeable staff to deliver an excellent customer service to enhance the overall experience. Essentially this will help to augment brand salience amongst its target market.

Ben & Jerry’s is actual the leader in the market of luxury ice cream in the UK, clear to Haagen Daz, moreoever the cofunders Ben Cohen and Jerry Greenfields said that they want to try their new faire trade policy and the new marketing because it "is a lot more civilised, as evidenced by things like how advanced Fairtrade is here and how behind the US is. The US excels at maximising profits and exporting weapons." The UK campain is by consequences important for Ben & Jerry’s.

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