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 Established in 1937
 Original Name : Moshladokombinat N 8
 CEO : Anatoliy Shamanov
o Joined Ice-Fili in 1968, left in 1974 & joined back as CEO in 1988
 A midsize Russian firm
 In 2001, capacity to prodcue 200 tons of ice-cream a day
 Factory underwent three major equipment modernizations between
1937-2001
 1/6th of output sold in Moscow
  
 
 
 product: Traditional Ice-cream(High Fat, no preservative)
o 170 varieties, Lakomka accounted for 30 % sales in 2001
 price : Mid range ² 6 rubles
 Sales: $ 25 Million in 2001
 Distribution : Kiosks(70%), Minimarts,Gastromoms, Resturants,
Supermarkets, others affiliated to Service-fill
 Customers: Consumed 2.5 Kg/per person, On-the-go individuals.
 Competitors:
 Direct: Local Regional Companies, Nestle, Baskin & Robbins,
HaaganDaas
 Indirect: Bear, Soft Drinks, Confectionary producers
 Market Share: Market Leaders with 5% share
 Marketing Strategy : Very poor
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 Competitors
 Total No. of producers = 300 in 2002
 Local Regional Companies
 Nestle, Baskin & Robbins, HaaganDaas
 Substitutes
 Bear, Soft Drinks, Confectionaries
 Nature of Demand
 Seasonal *

 Demand /consumption patterns
 Declining *


 Buyers
 Locals who usually purchased ice-cream on impulse
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 Low entry b rrier bec use of
 iow br nd differenti tion, iess c pit i
requirement
 E sy ccess to distribution ch nnei
 Liber i go
t. poiicy




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ULimited thre t 


 
ULimited number of
ioc i r w m teri i
suppiiers & equipment
m nuf cturers
UForeign suppiier

ii bie
ULesser differenti tion
of r w m teri i
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High degree of competition
Ui rge number of competitors jery high buyer power
ULow prod. Differenti tion Upowerfui distributors
ULow switching cost ULess powerfui uitim te
USiow industry growth consumer
UHigh exit b rrier


%
 

UËig thre t from substitutes
UShift in consumption
UHigh spending on promotion by substitutes
UËooming industry for substitutes
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 Established &
Experienced
 Second largest market
shareholder
 Sales $20 million in 2001
 Good amount of available
Capital, human capital.
 professional Management
& Marketing Strategy
 Invested in local
production & people
 Distributes through  Control 30% of Market
Franchising to 105 Share
cafes in 35 cities & sells  Limited product range
to restaurants
 Lower prices
 High price due to
 Flexible Management &
imported ingredients
production
 Sell in Kiosks
 Aggressive Growth
Strategy
 - &'

Strength 

Opportunities Threat
 - 

 Experienced leadership
 Oldest ice cream manufacturer in Russia hence had better
understanding of the market
 Few Recognized brands (Lakomka responsible for 30% of Ice-
Filli·s sale)
 Highest production capacity
 Wide product range
 High quality Ice cream with natural ingredients
 Competitive prices
 40% of employee for last than 20 years
 No debt
 -&
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 Old technology
 High reliance on import for raw material leading to high cost
 poor distribution network
 No brand differentiation
 No patents of ice creams
 Lesser margins on production (15%)
 poor marketing communication strategy
 Confused brand positioning
 Shrinking market share & margins
 Diluted Ownership
 -'  

 Newer segment for family product
 Opportunity for export
 Exploring new distribution channel
 Opportunity for newer products like Dry ice for export
 -

 High competition
 Competition from substitutes like Yogurt, Beer
 powerful distribution
 Low entry barriers for new entrants
 Low availability of human resource
 Œ
)

1. Could Ice-Fili maintain its market leader over Nestle?
2. Should Ice-Fili invest in its own chain of cafes to find new
retail revenues for its ice creams?
3. How can Ice-Fili compete with regional producers without
engaging in a price war?
4. How could Ice-Filli attract talent necessary to manage in a
competitive market economy?
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 No (If it continues with existing strategy)

 Yes but then it needs to
 Improve its distribution Strategy
 Selling through own kiosks, restaurants, Confectioners, Grocery Stores,
Minimarts
 Differentiate its products
 by devising an appropriate Integrated Marketing Communication Strategy &
eliminate confused positioning, Change Customer attitude towards Ice-cream as
family consumption item rather than impulse item
 Train local people to create required pool of Human capital
 Build better alliances with the current distributers
 Replace old equipments with new efficient ones
 Œ   %&
     &
  
 
  
     
$
 The financial information required to answer this question is not
provided but as per the subjective analysis, the answer is
 No. ..
 It should not invest in chain of cafes as it may be too expensive to compete with
Baskin & Robbins & rather invest in low investment Kiosks so as to build exclusive
accessibility take Nestle head-on.

 It can also work on strengthening the relationships with other distribution avenues
like minimarts, Supermarkets, Grocer shops etc. backed by appropriate advertising
to change customer perception about Ice-cream as impulse item to family
consumable item
 Πu ' 

  & 

 & 
 
 
$
 Strategies to Compete with regional producers
1. Invest heavily on 
e
for selective products. The Authentic taste of Ice-fili Ice-creams can
be used to position & differentiate its products not only from
regional producers but also from Nestle & others competitors

2. To meet the expenses, Ice-fili may also  of its
products from 6 ruble to 8-10 ruble & communicate its ice-cream
quality in terms of their authentic ingredients

3. Ice-fili may think of  certain products & processes so as

to raise entry barriers.
Π( ' 


 
 
 


 
 
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 Strategies to attract required talent
 Develop a sound HR Management System
 Invest on providing in-house training to local people
 Improve compensations to competitive levels & plan for a
countrywide recruitment drive (Nearby countries may also be
approached)
 Head hunting may also be done to bring people from other
industries as well
Thanks