Unlike Ice-Fili, these foreign rivals also use lower quality ingredients which translate to lower production costs. Additionally, if Ice-Fili promotes fewer brands and positions its products as the best-tasting and preservative free ones, it will be able to compete on taste rather than price, especially against regional producers, which have cost advantages.
The strength of regional producers over Ice-Fili is that they use newer equipment and manufacturing facilities and they enjoy lower labor and rent costs since they are located away from metropolitan areas. Additionally by focusing on fewer products, they will be able to gain economies of scale and spread their high fixed costs.
Conclusion In conclusion, Ice-Fili has been thriving in an increasingly economic environment. Usually, Ice-Fili returns transfer to buyers in form of lower prices. It capitalizes in an innovative branding methodology that combines traditional business goals with progressive social agenda to form a unique and attractive offering.
One of the reasons for the successful performance of this company in the local market is favorable political which has favored this company for a long time. They do not use enough and proper advertising and do not differentiate their product.
Adjusting their marketing campaign to showcase their products as being the most natural and best tasting might change this fairly easily. Even more importantly, they specialize in distributing ice cream to the growing supermarkets and restaurant chains.
Ice-Fili targets household and on-the-go consumption that takes place outdoors. Nestle has emerged as the biggest threat among the foreign competitors and it seems to be well positioned to take market leadership in Russia in the future.
By reducing number of products carried, the firm will be able to differentiate them better, allocate marketing budget to most profitable products, and, therefore, increase brand recognition.
The firms should reposition products by focusing on family and restaurant business consumption. The household consumption is less sensitive to fluctuations in seasonal demands unlike on-the-go consumption which usually decreases significantly during the winter.
For example, they entered western markets, where consumers were health, low-fat conscious, which did not align with their core competency. Consumers did not incur any switching costs, but it did not translated into higher bargaining power. Get Full Essay Get access to this section to get all help you need with your essay and educational issues.
However, they did it without any market research and analysis; they still operated under old slogan: They should focus on fastest growing segments — supermarkets.
This new brand image will let Ice-Fili dictate premium prices for its products. Rather, the buyers are the distribution channel members who then sell these products to the final consumers.
From and on, the industry became attractive and firms were able to provide above average rate of returns. Ice-Fili lost market share. And again they failed to realize the potential of this core competency.
They create an image of higher value of their foreign products, which justifies the higher cost that is paid by the consumers. However, suppliers could dictate seasonal price fluctuations of some materials. Once Russian economy reemerged from the crisis, in the latethe industry stabilized.
The market almost tripled from to More essays like this: One advantage of Ice-Fili over competitors is that they offer mid-level prices which affordable to a larger section of the targeted consumer base. It had artificial market, where all production was sold despite huge overproduction in the industry.
Additionally, the new domestic suppliers of production equipment were emerging. Therefore, they should abandon exports to Western countries, but focus on exporting to CIS and other former USSR countries, where consumers have comparable tasting habits.Ice Fili are Russia’s top ice cream producer so one could forgive Shamanov for being in a position of self-assurance having maintained a leading % share of the Russian ice cream market, arguably, against the odds considering international competition and economic circumstance.
Strategy Exam Ice-Fili (Abridged) June 12th, Thierry Bidda a. How structurally attractive is the Russian Ice Cream market? Ashley Springer Ice-Fili case analysis November 22, Through tough times in the Russian ice cream.
market; one company has one company has pulled their weight and maintained their position on top.5/5(1). Ice-Fili and the Russian Ice-Cream Market The Russian Ice Cream market is worth $ million, with Ice Fili as the market leader.
The industry concentration, determined by the market share of the four largest firms in a sector is low for Russian ice-cream industry. Company Overview. ICE-FILI, OAO produces ice-cream. The company was founded in and is based in Moscow, Russian Federation.
ICE-FILI, OAO is a former subsidiary of Russian General Bank ultimedescente.comon: 5, Bagrationovsky proezd Moscow, Russia. Ice-Fili, Russian ice cream company Essay Sample. In the early s the ice cream industry was state regulated.
It had artificial market, where all production was sold despite huge overproduction in the industry.Download