The Ice-Fili case will provide you with the opportunity to apply the concepts and frameworks for

marketing strategy development introduced in module one to an interesting industry: the Russian Ice Cream Market. The Ice-Fili case at first seems to be an unusual context, but as you read the case, you will see the issues confronted by Ice-Fili are classic problems common to virtually any firm competing in the consumer packaged goods arena. Please address the following questions: 1. From the perspective of the five forces framework introduced in the module, how attractive is the Russian ice cream market? Based on the factors of the five forces framework, o The number and rivalry of present competitors There are too many competitors in the ice cream industry which makes Ice-fili less profitable. There isnt really any product differentiation between all the competitors, so this reduces the potential for consumer product loyalty. o The threat of new entrants There were no threat for new entrants as there were many generic domestic companies in the ice cream market. The threat of substitute products There is a huge threat of substitute products because there was little differentiation between the products. However, Ice-fili produced 170 of the 240 flavors of ice cream in the market, which gave them a slight competitive advantage. The bargaining power of suppliers Suppliers had little bargaining power since it was not a problem for Ice-fili to receive offers and use new suppliers The bargaining power of buyers There was little product loyalty, which increased the bargaining power of ice cream consumers in Russia.

The Russian ice cream market is not very attractive but there were sporadic seasons of high ice cream consumption in Russia. If evaluated based on the five forces framework, a. What are the current and potential likely future effects of competitiveness on prices and profits in the Russian ice cream market? As evidenced by the completion from foreign and regional producers, competitiveness leads companies to offer their goods/services to consumers at a lower (or equivalent cost) in order to stay competitive and gain or maintain market share. Most of the ice cream companies in the Association of Russian Ice Cream Producers lost market share b. Could the industry structure become more attractive over time? Yes, the industry could become more attractive over time by employing the following strategies: Production and operating cost advantage Differentiation advantage By rebranding Ice-fili products Marketing advantage Ice-fili can gain local marketing advantage since it is a national ice-cream brand. It can easily survey and understand local consumer tastes and cultural advantage 2. What are the sources of competitive advantage in the Russian ice cream market? Advertising Producing non-traditional ice-cream that fit Russian tastes Making products available though wider distribution channels

a. How well positioned is Ice-Fili relative to its key competitors?

Ice-fili is relatively well positioned compared to its competitors. It is ranked 1st in the market right before Nestle. It however needs to employ strong marketing strategies to stay competitive in the ice-cream market.

b. Who are Ice-Fili's key competitors? Nestle is the biggest competitor Baskin Robbins c. What are the relative strengths and weaknesses of the key players? Weaknesses Nestle o Baskin Robbins o High costs Strengths Nestle o Strong market knowledge o Portfolio diversification o Product branding o Low production and storage costs; Usage of local products o Advertisement o Investment in employee training & development Baskin Robbins o Product branding o Franchising o Employee/management competency o Market knowledge What strategy would you recommend that Ice-Fili pursue? Ice-fili should do the following: Employee/Company culture Develop and implement a program to boost employee morale Focus on employee development Products/Branding Survey market needs, rebrand its company name and products based on market needs; then market Financial Significantly reduce production (fixed and variable) costs Marketing Increase product distribution channels Aggressively advertise its products and measure market response to its marketing in order to adjust market response effectively