Background (as of 2001) Russian ice cream market has become increasingly challenging with relatively stagnant growth and aggravating competition. Due to these challenges‚ Ice Fili‚ the top ice cream producer in Russia‚ has experienced 40% decrease in the production volume and 50% decrease in its market share for past 5 years. However‚ Ice Fili has been capitalizing neither the market potentials nor its competencies. Russian ice cream market is highly profitable with over twice the profit margins
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As Russia’s largest domestic ice cream producer‚ they had held onto their market leadership for many years. However‚ increasing competition from foreign companies‚ along with the emergence of regional producers of ice cream led to Ice-Fili’s market share erosion in the recent years. Porter’s five forces model was the primary method to analyze Ice-Fili’s industry and its competitiveness in the industry. Segmentation analysis was used for further study of the ice cream industry in Russia. The analysis
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outside with your friends playing an intense game of capture the flag‚ and you all have bright red faces and sweat dripping down every inch of your body. After the game is over you decide to go inside for a frozen treat. There’s no lemonade and no ice cream‚ so you search through your kitchen cabinets to see what kind of drink you can make for you and your sweaty friends. All you find in the cabinet is a couple packets of hot chocolate mix‚ but that shouldn’t stop you because you can create frozen hot
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Introduction Ice-Fili is currently competing in Russia’s ice cream industry. Although they have expanded to other products such as margarine and mayonnaise they will continue to focus on their core product line‚ which is ice cream. The reasoning behind this is that their ice cream production constitutes the majority of their profits and it is what Ice-Fili is most skilled at. The short-term and long-term corporate goals of Ice-Fili are relatively similar in that they both are concerned with
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Executive Summary Ice-Filli was established by the Soviet Government by the name of “Moshladokombinat N 8” in 1937 and it was the first large scale industrial manufacturer of ice cream. In the later decades it gained modernizations in equipment and technology.Ice-Filli was one of the few that survived the 11 year tenure of the fall of the Soviet Union when its major competitors who were also international like Unilever left the market when they saw how saturated and risky the market had become
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1.Problem / Issue Identification: The Russian ice-cream market is not structurally attractivePorters 5 ForcesBargaining Power of Suppliers:-Not an issue-Commodities but big seasonal variations-Limited local sources of high quality butter-High availability of imported raw materials-Specialist equipment must be imported (but may be easy to copy?)Bargaining Power of Buyers:-consumers have low disposable income-distributors have power - they have many suppliers-Growth in supermarket sectors - may wield
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Russian Ice Cream Market Although the Russian ice cream market may initially look attractive due to its consistent growth in ice cream production/demand in recent years‚ after evaluating the market through the five forces framework‚ it becomes clear that the market far from attractive. Since the open market economy was first introduced to Russia in 1991‚ ice cream producer competition has more than tripled in sized to 300 firms by 2002. Significant funding would be required for ice cream manufacturing/distribution
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ICE-FILI CASE 1 - How attractive is the Russian ice cream industry in 2002? The main data about the attractiveness of this market are: - The consumption is about 6 times lower than in France‚ Canada‚ US because of a different mode of consumption. Indeed‚ Russians consider Ice Cream as an “on the go” snack and not as a dessert they can have at home. - producing in Russia implies a certain adaptability of recipes since traditional Russian ice creams contain less fat and are made with natural
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Introduction The Ice-Fili Public Limited Company rightly deserves to be considered one of the oldest ice-cream producers in Russia. The Ice-Fili is one of Russia’s most famous and admired companies‚ both because of its entrepreneurial success and socially progressive vision. In its present form‚ it was incorporated on the basis of Frozen Products Plant No. 8‚ which was set up 65 years ago with support from Anastas Mikoyan‚ a popular and influential political figure. The company manufactures products
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on p.5) Political 1) From 1991-1998 No longer anti-alcohol campaign to boost ice-cream industry. Ice cream industry had to complete with substitute products. 2) Since 1998 Financial Crisis‚ Russian rubles devalued by two-thirds. Russians cannot afford foreign products and companies relied more on national suppliers. 3) 1999 VAT raise. Fruit-based ice-creams and popsicles raised to 20% VAT. Consumer buy less ice-cream because of elastic demand‚ revenue is less. Economical 1) Privatized companies
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