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Ice-Fili Strategic Marketing

Group No. 1

Chiu YiHeng (10103023), Misha Krug (10103007), Yuan Li (10102981), Anne Neidhart (11105135), Bidzina Khutsurauli (11105321), Angelica Sofrony (11105259)

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


Economic al
New Entrants
O L M S

Political

Strengths Weaknesse s

Supplier O L IL

Industry Rivalry OR OL MS FI HRM TD PR S

Customer I L

Opportunity Threat

Substitutes
M S

Technologica l

Social

Business Model Evaluation


Back side Of the company
Advice (design Producing Ice company) Cream Suppliers of Icecream equipment from Denmark Develop new and The USA Ice cream Association of tastes Russian Ice Cream Producers Distribution Companies: AlterImported raw West Small distribution Materials: Milk, Milk powder, companies: Sugar, Butter Service-Fili, and favor Eskimo-Fili, Inka additives Packaging, Changing recipes and Processing Waste R&D High Fixed Cost Marketing and Advertising Cost

Front side

Superior taste: Traditional Russian Ice cream with natural high quality ingredients with no preservatives

Interest in traditional Russian all-natural milkbased ice cream. Make people smile and happy

Focused Customer Group: not specific Location: Metropolitan areas Less Wealthy regions

Kiosks Mini-Markets Pizza Hut TV Advertising

Sales on ice cream products Limited mayonnaise production Fat-containing products Glaze for ice cream

Value Chain Competitive Comparison


Value Chain characterist ic
Inbound logistics

Nestl

BaskinRobbins
Strong Strong Strong Weak Normal Normal Very Strong

Regional players
Weak Normal Weak Strong Normal Normal Weak

Ice-Fili

Strong Strong Strong Very Strong Normal Strong Strong

Equal Equal Inferior Equal/Inferior Equal Equal Inferior

Primary Activities

Operations Outbound logistics Sales and Marketing Service Firm infrastructure Human Resource Management Technology Development Procurement

Support Activities

Strong Strong

Strong Normal

Strong Normal

Inferior Inferior

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

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

Regional producers- price of an ice-cream 3 to 4 rubles

* 1ruble=3.4cent

Core problem

Disease indicators:
Sales decrease, market share decrease, increased number of competitors, market segment shift.

Companys core problem:

Wrong organization

Correct product

Correct market

Ice-Fili-Stuck in the middle

Ice-cream

Russia-Moscow

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

Strategy options
Strategy Ways to achieve the strategy
Low price through differentiation product, dominate the whole Russian market Market penetration by developing new occasions of consumptions and distributions Focus on the differentiating the products they already have and toward a more focused in-home consumption Investing in equipment and ingredients at home rather than abroad. Cooperate with local ice cream equipment companies in order to decrease operation cost

Differentiation strategy

Market penetration

Product development

Co-operation

Cost leadership strategy

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

Cost leadership strategy

Russias top ice-cream producer- opportunity for economies of scale Ice-cream-considered as an inexpensive snack, available for everyone Lakomka-companys flagship brand could not be register as its own trademark 80% of companys ice-cream was distributed through kiosks and mini-markets.

Operational Marketing Plan


ICE-FILI Two mainstream Channels
Impulse (95%)
Focus on Summer Season Starting 1 month prior and

In-Home (2%)
Focus on other seasons

ending one month ahead.


Create excitement with traditional brands This will generate loyalty and increase consumption

summer. Approximately 4 month per year.


Developed new occasion of consumption increasing Ice-Fili presence in the Russian households.

Operational Marketing Plan Impulse


Propositio n
Refreshing Flavors for the Summer

Promotio n
Two points of contact with the consumer. 1. Media: BTL & ATL 2. POS

Place
Kiosks Minimarts Gastronom s

Pack
The Impulse channel packaging must be clear and engaging through the use of: Branding Color coding Shape coding

Price
Parity price with local competitors and local manufactures .

Product
Products that applied to local flavors, like the Plombir. Develop core brands in terms of variants and presentations (popsicles, cones and focus cups)

TV & Radio

Instore

360 Campaig n

PR

Main highlights

Digital

OOH

On impulse channel Ice-Fili is going to 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


Propositio n
Specially created for the lovers of great taste in family.

Promotio n
Two points of contact with the consumer. 1. Media: BTL & ATL 2. POS

Place
Supermarket s (2%) Minimarts (29%)

Pack
Packs that drives appeal and is eye catching, resulting in a better visibility in POS.

Price
Premium prices. Approximatel y 15-20% above Ice-Fili regular portfolio.

Product
Products that applied to local flavors for in home consumption. Multipacks Liters Desserts

TV

Main highlights
Instore 360 Campaig n PR

Digital

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.

Contingency Plan

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 Plan
What if - Scenario
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? What will Ice-Fili`s response be if their sales objectives will only be reached by 50%? What will Ice-Fili`s response be if their main competitors decrease its price by 50% of Ice-Fili`s price? What will Ice-Fili`s response be if changes in customer preferences occur regarding to taste, flavor and presentation (popsicles, cones and cups)?

Developed Contingency Plan


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 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 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. 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!!

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