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 dealing with their competitors. Ice-Fili’s short-term goals are: To remain competitive within the ice cream market and to maintain their status as market share leader. The long-term goals are: To gain market share over competitors such as Nestle
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Gaining a greater market share would allow Ice-Fili the opportunity to integrate forward and sell their products directly to customers. They could maybe even compete with Baskin-Robbins and Ben and Jerry’s in the franchised restaurant business. Franchising is relatively cheap for the franchisor and is a definite possibility for Ice-Fili in the future.
Plan B
With increasing competition from domestic and foreign competitors more drastic plans may have to be put into play. The ice cream industry as a whole has total sales of half a billion dollars a year. Ice-Fili, the dominant player in the industry, has only $25 million of it, which translates to a total of 5% market share, which is shrinking. The reason why the dominant player commands such a small percentage of the market is because there are over 300 companies of varying sizes competing for their share. To survive in such an environment a company needs more than one distinctive competency. In the case of Ice-Fili, they do have excellent production capabilities, but they lack proper research and development, they have little activity in marketing and little more in sales, a distribution system that is inefficient, and a lack of an experienced management team to employ these capabilities. Therefore, combining their distinctive competency of production with the distinctive competencies of another company may be the logical and mutually beneficial option. There are
(Thompson and Strickland, 1998). Since price of ben and Jerrys price is higher than the market average they had to incorporate product differentiation into their strategy in order to justify the high price. Their use of all-natural, highest quality ingredients and the innovative flavours of Ben & Jerry’s ice cream as well transforming into non-dairy ice-cream perfectly show the strategic use of product differentiation to gain a competitive advantage in the ice cream market. Playful and fun flavor names such as Chubby Hubby, Karamel Sutra, Phish Food, and Chunky Monkey also helps Ben & Jerry’s apart from their competition.
My current product is a variation of ice cream flavours, it is sold in store and can be also taken home if the consumers want it to be. There are many different flavours that can come in a tub, cone, or a bowl.
The ice cream industry is very a competitive field. Blue Bell has many competitors with a bigger budget and a bigger distribution channel. The company still manage to produce top brand ice cream to please its customers. According to the U.S Market for Ice Cream, “Sales nearly $12.2 Billion in 2005 with the sales of frozen, yogurt frozen desserts at scoop shops, restaurants and vending outlets. Three years ago there was a tremendous interest in ice cream nutrition panel. Other competitors were introducing product such as; low crab ice cream, no sugar added and low fat ice cream.
However, many problems are emerging: Ice-Fili has only 5% market share and has a lot of competitors with no major leader, it will be difficult to gain significant portions of market share in such a fragmented industry. Furthermore, the company does not seem to have the required people within its
The Pillsbury Cookie Challenge is a case study written by Natalie Mauro under the supervision of Professor Allison Johnson. The case study creates an open discussion about what the marketing manager of the refrigerated baked goods category for Canada General Mills should do to revive his products. Ivan Guillen, the marketing manager, was faced with tough challenges. He was initially “…faced with the challenge of developing a strategy that would lead to improved business performance on his category” (Johnson and Mauro, p.1, 2011). To clarify, Guillen’s category is refrigerated baked goods (RBG), which means, this category is his marketing responsibility. The issue here is that “RBG was GMCC’s fourth largest category, and its performance over the past two years had been less than stellar” (Johnson and Mauro, p.1, 2011). It is important to note that GMCC stands for General Mills Canada Corporation. Pillsbury has enjoyed majority market share in the RBG category in Canada, however, recently, the market was experiencing only moderate growth. Guillen was disappointed that their goal of 5%-7% market growth was not being achieved mainly in the refrigerated cookie dough segment. To be exact, their volume growth for two years was flat and they were having difficulty reaching new households. There was a shift among consumer’s purchases, which Guillen was challenged to figure out why.
We at Temple Consulting have completed an analysis of Ice-Fili’s current corporate standing using data collected over the past several years. Using tools such as Porter’s Approach and SWOT we have analyzed the internal and external environments and have recommended several strategic plans of action. Current areas for improvement such as marketing initiatives and re-evaluation of distribution channels will increase sales and profitability almost instantly. Long term plans such as lobbying against luxury tax on ice cream, partnerships with franchise vendors, and bringing new products to the market, performing an IPO, and planning more global efforts will help keep Ice-Fili rooted as the
Ice-Fili is the top ice cream producer in Russia. Currently, the company is experiencing tough competition with Nestle, Baskin-Robbins and regional ice cream producers. Its loss in market share due to their poor quality decisions-making after Russia became an open marketing in 1992. Nestle took great advantage of Ice-Fili’s low reaction adjustment and is taking over their market.
Frozen food division (FFD) is the key contributor to Giant Consumer Product 's (GCP) profits which have successfully grown over the past 30 years. The company has two main products lines, Italian frozen dinner “ DinardoTM”, and organic frozen foods “Natural mealsTM ”. However, recently FFD has encountered a shortfall in sales volume and
There are many pros to this offer. Unilever is the largest ice cream producer in the world and like Dreyer’s, already has an extensive distribution network and extensive knowledge of the market. With an offer of $36 (cash), Unilever had by far the best looking offer on paper. They also have a market capitalization of $18 billion and can provide the financial backing that Ben & Jerry’s needs. On the other hand, there are a large number of cons and a huge amount of risk. B & J would have to give up a great deal and essentially “sell its soul” if it were to accept this offer. Unilever has no intention of keeping with B & J’s corporate vision and practices of social responsibility which made B & J a household name in the first place. Unilever is a much larger and more diversified corporation than the others and simply won’t be able to put in the “t.l.c” into the product that Ben & Jerry’s has built their reputation around. As a result, brand loyalty will drop significantly as will B & J’s value. If Unilever were to adhere to B & J’s social charter this would be a much more attractive offer.
Goals- Dippin’ Dots want to be able to expand where they can sell their product. Since retail locations can only offer the product at 10 to 20° below zero, special storage and serving freezers are required, as well as specially designed cryogenic transport containers in order to move the product. This as well as other factors have limited the distribution of Dippin’ Dots to only serve the away from home segment of the ice cream market, which accounts for $13.9 billion. If they can expand where they sell their product, they can increase sales and gain a large portion of the market.
Another option for Cowgirl Creamery is to launch a new brand of cheeses dedicated to another market. This strategy would likely see the biggest return at the grocery stores and other retailers that they sell to. The products that Cowgirl Creamery currently produces are sold to a very specific segment of consumers, cheese connoisseurs. By launching a product more geared toward the average shopper rather than the specialty consumer, Cowgirl Creamery could greatly increase the consumption of their products. The drawback to this option requires cost cutting in other areas to develop a new products because Cowgirl Creamery currently cannot secure bank loans. Cutting segments of their product line to make this an option could sway some consumers to Cowgirl Creamery’s competitors. Closing their own retail stores would also provide additional revenue, although, it may also reduce the products relevance in the market without their own retail store. Even if launching a new brand was affordable, this strategy would also require a supplemental strategy to increase the likelihood of success. In addition to launching a new brand, this approach should be combined with including new features to maximize the success of a new brand.
At the beginning, this market segment represents about 30% of the total potential sales. In the current years, there are few ice-cream produces on the markets that are designed for this segment, because of there are increasing group of consumer in this segment are more concerned and aware of the implications of diet on their health. Most of there consumers do not buy ice=cream as a consequence, such as they thought ice-cream have high calories and not good for
In this case, Ice-Fili hold this competitive advantage since the company mainly use natural ingredients and do not use any preservatives or colorants (“Lakomka”). At the time of the case Ice-Fili’s ice cream are seen as a quality product which fit with the traditional recipe. At the opposite, Nestlé adds preservatives which distort the taste, but by using these ingredients, it decreases the total costs.
The paper provides analysis of Ice-Fili, and the paper reveals that Ice-Fili is one of the important ice cream producers in Russia. However, the entrant of foreign ice cream producers such as Nestle has made Ice-Fili to face stiff competitions within the industry. Porter five analysis reveals that Ice-Fili has not been able to compete effectively with foreign companies because the company still relies on imported equipment and technology and traditional method of production, which lead to high cost of production.
According to What is SWOT Anlysis (2011), SWOT analysis is an analysis used to identify the internal factors (strengths and weaknesses) of the company as well as external factors (opportunities and threats) of the company.