Chiu YiHeng (10103023), Misha Krug (10103007), Yuan Li (10102981), Anne Neidhart (11105135), Bidzina Khutsurauli (11105321), Angelica

Sofrony (11105259)Group No. 1

Ice-FiliStrategic Marketing

Table of Content

Internal and External Environment Business Model Evaluation Competitive Advantage and Position Core Problem Strategy Options Operational Marketing Plan Contingency Plan

Internal and External Environment

IL

Customer

OLMS

New Entrants

MS

Substitutes

OL

Supplier Industry Rivalry

IL OR OL MS SFI

HRMTDPR

PoliticalEconomical

SocialTechnological

Strengths

Weaknesses

Opportunity

Threat

Business Model Evaluation

Superior taste:

Traditional Russian Ice cream with natural high quality ingredientswith no preservatives

KiosksMini-MarketsPizza Hut TV Advertising

Imported raw Materials: Milk, Milk powder, Sugar, Butter and favor additives

Producing Ice Cream

Develop new Ice cream tastes

Focused Customer Group: not specific

Location:Metropolitan areasLess Wealthy regions

Packaging, Changing recipes and Processing WasteR&DHigh Fixed CostMarketing and Advertising Cost

• Advice (design company)• Suppliers of Ice-cream equipment from Denmark and The USA• Association of Russian Ice Cream Producers•Distribution Companies: Alter-West • Small distribution companies: Service-Fili, Eskimo-Fili, Inka

Interest in traditional Russian all-natural milk-based ice cream.

Make people smile and happy

Sales on ice cream productsLimited mayonnaise productionFat-containing productsGlaze for ice cream

Front sideBack side Of the company

Value Chain Competitive Comparison

Value Chain characteristic

Nestlé Baskin-Robbins

Regional players

Ice-Fili

Inbound logistics

Strong Strong Weak Equal

Operations Strong Strong Normal Equal

Outbound logistics

Strong Strong Weak Inferior

Sales and Marketing

Very Strong Weak Strong Equal/Inferior

Service Normal Normal Normal Equal

Firm infrastructure

Strong Normal Normal Equal

Human Resource Management

Strong Very Strong Weak Inferior

Technology Development

Strong Strong Strong Inferior

Procurement Strong Normal Normal Inferior

SupportActivities

PrimaryActivities

Competitive Positioning

Ice-Fili-price of an ice-cream 6 rubles

Nestle- price of an ice-cream 10 rubles (or more)

Regional producers- price of an ice-cream 3 to 4 rubles * 1ruble=3.4cent

Correct market

Russia-Moscow

Core problem

Disease indicators:Sales decrease, market share decrease,

increased number of competitors, market segment shift.

Company’s core problem:

Wrong organization

Ice-Fili-Stuck in the middle

Correct product

Ice-cream

In the late 1990, at least five other companies started producing Lakomka.

Strategy options

Strategy Ways to achieve the strategy

Differentiation strategy Low price through differentiation product, dominate the whole Russian market

Market penetration Market penetration by developing new occasions of consumptions and distributions

Product development Focus on the differentiating the products they already have and toward a more focused in-home consumption

Co-operation Investing in equipment and ingredients at home rather than abroad. Cooperate with local ice cream equipment companies in order to decrease operation cost

Cost leadership strategy The biggest Russian ice-cream company with the cheapest in the world to buy

Russia’s top ice-cream producer- opportunity for economies of scale

Ice-cream-considered as an inexpensive snack, available for everyone

“Lakomka”-company’s flagship brand could not be register as its own trademark

80% of company’s ice-cream was distributed through

kiosks and mini-markets.

Cost leadership strategy

Operational Marketing Plan

ICE-FILITwo mainstream

Channels

Impulse (95%)

In-Home (2%)

Focus on Summer Season

Starting 1 month prior and ending one month

ahead. Create excitement with

traditional brands This will generate loyalty and increase consumption

Focus on other seasons ≠ summer.

Approximately 4 month per year.

Developed new occasion of

consumption increasing Ice-Fili presence in the

Russian households.

Operational Marketing Plan - Impulse

Proposition

Promotion

Place Pack PriceProduc

t

Two points of contact with the

consumer.1. Media: BTL &

ATL2. POS

The Impulse channel

packaging must be clear and engaging through the

use of:• Branding• Color coding•Shape coding

Parity price with local

competitors and local

manufactures.

Products that applied

to local flavors, like the Plombir.

Develop core

brands in terms of

variants and ≠

presentations (popsicles, cones and

cups)

360° Campai

gn

TV & Radi

o

PR

OOHDigital

In-store

Refreshing Flavors for the

Summer

KiosksMinimartsGastrono

ms

Main highlights On impulse channel Ice-Fili is going to

focus on 3 Ps Promotion, Price and Products.

In this channel Ice-Fili is looking to increase loyalty from the consumer to the brand and increase consumption frequency.

Main features of the campaign are OOH, In store activations and digital.

Operational Marketing Plan - In Home

Proposition

Promotion

Place Pack PriceProduc

t

Two points of contact with the

consumer.1. Media: BTL &

ATL2. POS

Premium prices.

Approximately 15-20% -above Ice-Fili regular portfolio.

Products that applied

to local flavors for in

home consumption

. • Multipacks• Liters• Desserts

360° Campai

gn

TV

PR

Digital

In-store

Specially created for the lovers of great taste in

family.

Supermarkets (2%)

Minimarts (29%)

Packs that drives appeal

and is eye catching,

resulting in a better

visibility in POS.

Main highlights In- home channel will be developed

through 4 Ps Proposition, Promotion, Place and Pack.

With this campaign we aim increase market penetration by developing new occasions of consumption.

In-Home campaign mix will mainly focus on TV (conventional and non-conventional), PR and In-store.

To protect the critical strategies of Ice-fili`s marketing plan and to minimize risk the following issues will be addressed: 1. Set Up Monitoring Operations

Watching marketplace, actions of competitors and financial results/KPI`s:

- Sales, Profit and Gross Margin - Market Share, Market Standing, Market Penetration - Brand Awareness, Customer Satisfaction, Customer Awareness, Customer Retention

Analyzing the implications of any changes Specifying the criteria (KPI`s) to determine if the strategies have

succeeded or failed

2. Define Alternative Plans Of Action Proactive responses to “What if”- scenarios in order to

quickly adapt to changing circumstances

Contingency PlanPLA

NB

Contingency Plan

What if - Scenario Developed Contingency Plan

What will Ice-Fili`s response be concerning its strategy of impulse if Ice-Fili`s market share is not increasing by the third month?

Making a trade off in budgets to invest more in trade marketing to activate the sales ensure that the product is widely distributed and available for the end consumer

What will Ice-Fili`s response be if their sales objectives will only be reached by 50%?

Enhancing current marketing techniques by focusing on what Ice-Fili does best and targeted communication differentiate itself by advertising its high quality and great taste as well as the fact that it is a Russian company

What will Ice-Fili`s response be if their main competitors decrease its price by 50% of Ice-Fili`s price?

Temporary price cuts are not a long-term strategic move ensure and communicate that Ice-Fili has a unique selling proposition. If Ice-Fili must discount they have to make sure the cuts are communicated as special offers.

What will Ice-Fili`s response be if changes in customer preferences occur regarding to taste, flavor and presentation (popsicles, cones and cups)?

Being aware of these changes and offering a special solution for the particular needs of the customers development of new or improved products regarding to taste, flavor and presentation preferences.

THANK YOU!!