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Sir Jangles

In: People

Submitted By janglez315
Words 361
Pages 2
James Short
Ice-Fili Case Study
-------------------------------------------------
Executive Summary

Ice-Fili is the largest domestic ice cream producer in Russia that has been making delicious, traditional Russian ice cream since 1937. This historic Russian company makes its ice cream with all natural ingredients and no preservatives, unlike many other companies. Although Ice-Fili has been able to maintain their market leadership, they have been experiencing increased competition from both international and regional companies. One of the major challenges that Ice-Fili faces while trying to gain a competitive advantage is a weak distribution channel. 80% of their sales volume is sold though kiosks and mini markets. Ice cream is perceived as an “on the go” product and the buying behavior of consumers is impulsive. It is challenging for the ice cream industry to market their products as an in-home dessert. Because of this perception that ice cream has, the industry is also threatened by substitutes. Beer, sodas, yogurts, and other snacks all compete with ice cream.

In addition to a weak distribution channel and a number of substitute products, Ice-Fili factories have old, obsolete equipment that produce volumes that are lower than competitors such as Nestle and Baskin Robbins. Although Ice-Fili’s production is lower than its competitors, the quality of the ice cream is very authentic. Ice-Fili uses 15% milk fat compared to 10% that gives a fluffier texture and a slightly less sweet taste (comparable to whipped cream). This flavor and texture was more preferred both by international and regional customers.

Ice-Fili is attempting to utilize a differentiation strategy but needs to address some lagging areas of the company. Ice-Fili struggles to project a brand name due to so many other ice cream manufactures and the low barriers to entry in the...

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