Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Ice-Fili a Case Study

No description
by

Malina Radescu

on 17 April 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Ice-Fili a Case Study

Ice-Fili at a glance
Competitors and competitive position
SWOT Analysis

Porter's 5 Forces
Ice-Fili Case-study
Thank you
for your attention!
Activities
: Producing Ice Cream, Develop new Ice cream tastes
Partners:
Distribution companies (Service-Fili, Alter-West), Suppliers of Ice cream equipment from Denmark.
Resources:
Imported raw materials (milk, milk powder, sugar butter, favour additives)


Customer Relationships:
Interest in traditional Russian all natural milk-based ice cream.
Customer Segments:
Focused Customer group not specific
Location:
Less wealthy areas, Metropolitan areas.
Channels:
Kiosks,Mini markets, Pizza Hut, TV Advertising


Traditional Russian Ice cream with natural high quality ingredients.

Product and Industry
Core Problem
The issue raised in this case study is
how Ice-Fili
, an ice-cream producer with over 65 years of experience on the Russian market,
can maintain its leader position

under the fierce competition
coming from two directions:
international
and
regional
companies.
6
SWOT Analysis

TOWS Analysis
PESTEL
Rivalry
Final Suggestions and Recommendations

Substitute products
Suppliers
Industry Key Success Factors
Over 300 producers competing for a share
Ice-Fili is the largest domestic one (5% market share)

Two types of competitors:

Regional
:

Greatest threat (30 % of domestic market)
Some switched to ice-cream from other frozen products
More flexible with distributors, becoming more competitive
Some have aggressive growth strategies both across country and in the capital

International
:

Some important names left the market (Ben & Jerry’s, Unilever (Algida)
Baskin-Robbins: premium segment, high prices, restaurants & cafes
Nestle: direct competitor, well established in Russia, big threat

POLITICAL
ECONOMICAL
SOCIAL
TECHNOLOGICAL
ENVIRONMENTAL
LEGAL
• Political change of Government, generated by the fall of the Communism;
• The anti-alcohol campaigns.
• The passage from a national based economy to the open market – first economic crisis;
• The financial Crisis of 1998 – second economic crisis;
• Competitive prices compared to competitors;
• Exports growing as imports drop;
• Pronounced seasonal production differences compared to Western countries.
• Western influences;
• Positioning themselves as the most authentic Russian ice-cream producer;
• The advantage of the local figure.
• Small number of products;
• Combination of both new and old production equipment;
• Introduction of “Lakomka”;
• Global inconsistencies;
• Changes of the supplier of ice-cream production materials and equipment;
• Poor distribution system.

• Importance of raw materials;
• Changes of the rules of production.
• Unstable legal framework, as a result of several governmental changes;
• The impossibility of patenting and registering trademarks;
• Lack of international standards regulations (such as ISO).
Beer, soda, yogurts, chocolate & confectionary products
Increasing demand for above
Decreasing demand for ice-cream
Low switching costs for consumers
Beer & soda companies invest more in advertising:

90 mil $ - Beer
200 mil $ - Soda
vs. 5 mil $ - Ice-cream
Ingredients

Most are local (3-4 suppliers/ ingredient);
Seasonal price fluctuation
Account for 20% of retail price.
Equipment

Ice-Fili uses imported equipment;
Local equipment companies developing fast;
Over 10 equipment companies in Russia, Ukraine & Baltic countries.

Buyers
Potential New Entrants
Porter’s 5 forces model
Consumers
Products not clearly differentiated in their minds
Decreasing & inelastic demand (only high price-changes affect it)
Easy switching to other products

Distributors,

As buyers, they have high bargaining power
High influence on product availability to consumers

1990
- 468 000 tons of ice-cream produced
1991
- 76 factories
2001

2.5 kg ice cream / capita VS 16 kg / capita in US
Ice-Fili produce 200 tons / day
2002
Ice-Fili
170 different ice cream products
won “Product of the year” for “Eralash” brand

Industry is in its Maturity life cycle stage
Low brand preferences & low brand loyalty among customers
Ice-Fili produces Lakomka (30% of company’s sales volume)
Easy access to distribution channels
Easy access to equipment and technology
Easy to enter for companies in other industries (e.g. frozen-food)
Recommendations following the PESTEL Analysis
1. Focus on using low traditional labor;
2. Develop strategies that international companies cannot usually copy;
3. Emphasize as much as possible local advantages, make appeal to traditions;
4. Invest in advertising its high quality and great taste, as well as its Russian origins.
5. Consider a joint venture with a foreign company that could help Ice-Fili financially.

Allocate more funds to marketing in order to differentiate the company’s products from competitors and substitutes.
Take advantage of company’s history
Reduce number & increase power of brands
Forward integration of distribution companies to increase the availability of products

Manufacturing
Raw Materials
Equipment and technology
Distribution
Marketing
Positioning

Team:
Bitoleanu Roxana
Ciulinariu Liviu
Hirschkorn Remus
Rădescu Mălina
Uță Andrei

Price
(Rubles)
2
10
15
Market share
Local
producers
30
Marketing

Invest in advertising:
take advantage of company's history
use guerrilla marketing, social media
Reduce overall number of brands and improve their power & value for customers
Market development
Develop further in the HoReCa segment; concentrate on getting more contracts like the Pizza-Hut one;
Increase the market share in the home-use ice-cream niche
Forward integration
Expand business over the value chain, getting more involved in the distributions of products
Operations & Assets
Improve production efficiency and divest or lease unnecessary lines of production for a higher ROA
Full transcript