In if_eng.pdf you can see 4 questions. Two of them are connected with “methods” : attracting talented employees, developing chain of cafes, 2 others are connected with “firms goals”: leading on Nestle and competing with regional producers.(see Problem structure.pdf). According to Problem structure.pdf these questions could be solved by : management optimization, developing distribution network, competitive market positioning and branding politics optimization.
So, we have found 4 conceptions : Simplifying brand line, Organizational structure modifying, distribution network development, competing with regional ice-cream producers, Opening a “pilot” ice-cream café. Each of these help to solve case questions.
Brand line simplifying plan and Organizational structure modifying
•Analysis and excluding from production line the less profitable or unprofitable commercial grade in order to decrease total number of commercial grades.
•Revealing the most successful commercial grades and focusing on production of such commercial grades.
•Organizational structure modifying in direction to product-oriented structure (creation of CFR - centers of financial responsibility – focused on different groups of commercial grades). The goal is to increase efficiency of brand management and to create competition inside the company. In the CFR conception only active and talented staff takes part that’s why there is an opportunity, based on option programme, to attract talented managers with developing motivation system strongly connected with the economical efficiency of the subdivisions.
•Creation of advertising co-operative:
–Common budget for advertising campaign of Ice-Fili brand;
–But each particular CFR takes responsibility for promotion of its commercial grades.
Own distribution network development background( see Distribution network creation.ppt)
•Creation of own distribution network contributes to strengthen position, compared to Nestle