ICE FILI

Group-2

Ice Cream-On the go

Consumption Russia- 2.5 Us-16 France-17 Canada-18

Ice Fili
Established in 1937 Original Name : Moshladokombinat N 8 CEO : Anatoliy Shamanov Joined Ice-Fili in 1968, left in 1974 & joined back as CEO in 1988 A midsize Russian firm. In 2001, capacity to produce 200 tons of ice-cream a day. Factory underwent three major equipment modernizations between 1937-2001 1/6th of output sold in Moscow

Ice Fili
Product: Traditional Ice-cream(High Fat, no preservative) 170 varieties, Lakomka accounted for 30 % sales in 2001 Price: Mid range 6 rubles Sales: $ 25 Million in 2001 Distribution: Kiosks(70%), Minimarts, Gastromoms, Resturants,

Supermarkets, others affiliated to Service-fill Customers: Consumed 2.5 Kg/per person, On-the-go individuals. Competitors: Direct: Local Regional Companies, Nestle, Baskin & Robbins, Haagan Daas Indirect: Bear, Soft Drinks, Confectionary producers Market Share: Market Leaders with 5% share Marketing Strategy: Very Poor

Industry
Competitors Total No. Of Producers = 300 in 2002 Local Regional Companies Nestle, Baskin & Robbins, Haagan Daas Substitutes Bear, Soft Drinks, Confectionaries Nature of Demand Seasonal(E x hi bi t-3) Demand /consumption Patterns Declining(E x hi bi t-1c) Buyers Locals who usually purchased ice-cream on impulse

Competitor-Nestle
Established & Experienced Second largest market shareholder Sales $20 million in 2001 Good amount of available Capital, human capital. Professional Management & Marketing Strategy Invested in local Production & people

Competitor-Baskin Robbins
Distributes through Franchising to 105 cafes in 35 cities & sells to restaurants High Price due to imported ingredients

Competitors-Regional Producers
Control 30% of Market Share Limited Product range Lower Prices Flexible Management &Production Sell in Kiosks

SWOT ANALYSIS

Strengths

Experienced leadership Oldest ice cream manufacturer in Russia hence had better understanding of the market Few Recognized brands (Lakomka responsible for 30% of Ice- Fillis sale) Highest production capacity Wide product range High quality Ice cream with natural ingredients Competitive Prices 40% of employee for last than 20 years No debt

Weakness
Old technology High reliance on import for raw material leading to high cost Poor distribution network No brand differentiation No patents of ice creams Lesser margins on production (15%) Poor marketing communication strategy Confused brand positioning Shrinking market share & margins Diluted Ownership

Opportunities
Newer segment for family product Opportunity for export Exploring new distribution channel Opportunity for newer products like Dry ice for export

Threats
High competition Competition from substitutes like Yogurt, Beer Powerful distribution Low entry barriers for new entrants Low availability of human resource

THANKS !!!