Preview

Ice Film

Good Essays
Open Document
Open Document
1656 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ice Film
Ice-Fili Analysis
Table of Contents

I- Introduction 2
II- Analysis 3
1- External Analysis 3
i) Porter’s 5 Force 3 ii) Key Success Factors 4
2- Internal Analysis 5
i) Value Chain Analysis 5 ii) Financial Analysis 6
III- Decision Opinions with Evaluation 6
IV- Recommendation and Implementation 8
1- Short Term Activities 8
2- Long Term Activities 9
V- Exhibits 10
i) Exhibit A: Financial Ratio Analysis and Calculations 10 ii) Exhibit B: Decision Matrix 11

Introduction

First time winner of the “Product of the Year” category, Ice-Fili, is the top ice cream producer in Russia. Recently, the company is experiencing tough competition by Nestlé and regional ice cream producers. Ice-Fili’s current problem is its loss in market share due to their poor quality decision-making after Russia became an open-market in 1992. Nestlé took advantage of Ice-Fili’s low reaction adjustment and is taking over their market. What should be Ice-Fili’s next move? To offer proper advice, an external and internal analysis should be conducted to analyze their environment.

Analysis

EXTERNAL ANALYSIS
An external analysis allows us to understand the ice cream industry. It includes analyzing Porter’s 5 forces and Ice-Fili’s key success factors in comparison to its competitors.
Porter’s 5 Forces
1- Threat of New Entrants High
The ice cream market is attractive due to its 15% to 20% profit margin and low initial capital investment. Ingredients are acquired at low cost because of their commodity nature. Also, the final product and production process are similar among producers. Products may be easily copied making differentiation difficult to obtain. It is easy to get through customers and retailers as numerous distribution channels available.
2- Bargaining Power of Suppliers Ingredients: Low & Equipment: High
Identical ingredients may be purchased from numerous suppliers. Changing supplier may be done easily with a low switching cost. However, only 10 companies

You May Also Find These Documents Helpful

  • Good Essays

    In this case, the top management put the new frozen dessert--- Sweet Dream on ice; however, the product manager felt it was not a correct decision and tried to persuade the top managers to reconsider. The company of Paradise Foods didn’t realize the threat on LaTreat and the opportunities on Sweet Dream. They didn’t embrace the concept of using analytical marketing research based on computer technologies as the premise of the right decision. The issues are:…

    • 959 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Ice Fili Case Summary

    • 692 Words
    • 3 Pages

    Ice-Fili pursues a strategy of product separation, focusing both on high quality, new flavors and product lines, and more importantly, and original branding methodology that combines long-established business goals with a progressive public agenda to form a definite unique attractive product offering. Ice-Fili sells a product that is not only a leader in its market share, but truly a product made of value to bring success. Our overall corporate focus will be to reorganize our infrastructure to increase productivity and efficiency. We will form a strategy to keep our consumers during the troubling economic times. To do this we will devote a larger portion then ever to our marketing and advertising budget.…

    • 692 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Ice Fili

    • 277 Words
    • 2 Pages

    Market attractiveness refer to all the characteristics that contribute to the success of organizations within the market. Profitability is one and Exhibit 9 suggests profit margins for retailers and distributors are about 30% - 50%, and producers’ is about 15%. This is high in the Russian food industry where, the profitability in the confectionary industry was only 6% - 8%. The russian ice cream industry had about 300 companies in 2002. The largest domestic competitor, Ice Fili only had about 5% market share. The rest were shared among foreign competitors and small regional producers. There is no legal barrier to entry and exit except for the official standard (GOST)…

    • 277 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    v Power of buyers – With ice cream there are virtually no important end consumers. However if one focuses on the consumer as retailer then the importance of the few powerful and growing grocery chains represents a significant hurdle. This is offset by the almost complete lack of potential for backward integration and the relative insignificance of ice cream to this customer group.…

    • 2420 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Marketing Plan

    • 3671 Words
    • 13 Pages

    The consumption of ice cream rises as the country’s economy continues to grow. It is said to have a 4% increase in sales during 2013. It continues to grow within a couple of years due to the aggressive promotions of respective ice cream manufacturers which causes greater consumer demand. Among all innovations, Frozen Yoghurt is one of the fastest growing categories of ice cream. (Euromonitor, 2014)…

    • 3671 Words
    • 13 Pages
    Good Essays
  • Better Essays

    Parvez, S. (2013, April 17). ‘Brand Wars Heating up in the ice Cream Industry’. The Daily Star. Retrieved from http://archive.thedailystar.net…

    • 1655 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Magnum Unilever

    • 7477 Words
    • 30 Pages

    They are the largest consumers Products Company in Pakistan; and belong to Unilever group of companies, which makes up one of the largest global companies in the world.…

    • 7477 Words
    • 30 Pages
    Powerful Essays
  • Good Essays

    Ice Fili

    • 1080 Words
    • 5 Pages

    The competitive set of the ice cream industry is highly fragmented and very diverse. International brands such as Nestlé have through their size, position and also advertising expenses managed to capture market share. The local, much smaller producers on the other hand have the majority of the Russian population on their side. In addition their organizational structure and their modern equipment make them much more flexible and manageable at a lower cost which is an immense competitive advantage. As for the threat of new entrants, it is very high too. The barriers to entry are relatively low and the product ice cream is not difficult to produce, especially for companies which are operating in the storage and freezing segment. Therefore there is a constant threat of new players coming from other industries or suppliers which will put pressure on prices and costs. As for the suppliers, the environment is amongst them very competitive which gives is reassuring. Yet suppliers might due to the low entry barriers use their strategic advantage and enter the market themselves. Furthermore due to the constant changing of suppliers no long term relationship can be established between ice Filli and its supplier which would be preferred. As for the customers, a problem for the ice cream industry is that consumers face very low switching costs and that loyalty is almost nonexistent which makes it harder for the producers to establish themselves. Producers have to be proactive to keep their customers satisfied, also in terms of quality of the ice cream.…

    • 1080 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    a. Ingredient Suppliers: There are numerous suppliers for the ingredients in the market and there is very less differentiation among these ingredients. Besides, since these ingredients are not expensive, the switching costs for the ice-cream manufacturers is quite low and can easily find the alternative supplier. Threat of forward integration exists with the concentration of suppliers, making bargaining power of suppliers low.…

    • 2093 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    This report covers the present scenario and the growth prospects of Ice Cream market in the US for the period 2014-2018. To calculate the market size, the report takes into account revenue generated from the retail sales of ice cream products. The market size is calculated in two ways:…

    • 322 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    2.Strong competition from international & domestic players in the ice cream segment means limited market share…

    • 231 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    ICE-CREAM LAB was founded by form of partnership, who are Kong Sze Wen, Yau Tze Xuan, Tan Sze Pei, and Tan Shu Chun in August 2016, located at LK2-05, Jalan Laman Komersial Areca, Bandar Baru Nilai, 71800 Putra Nilai, Negeri Sembilan, which was nearby INTI INTERNATIONAL UNIVERSITY COLLEGE and Nilai Spring Resort. Our main objective is to implement more types of products, satisfying customers with a high-quality product, and taking of major market share of ice cream market through customer loyalty. So we need to understand customer need and maintain long-term customer relationship. The highlight of our shop is our self-made ice-cream which is liquid nitrogen ice-cream.…

    • 872 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Cap and Trade

    • 1420 Words
    • 7 Pages

    In 1937 Ice Fili was created from a Soviet company called ‘Moshladokombinat N 8’ . This industry already had large productions of ice cream since his birth (in that time it was considered the 2º largest factory in the world). In 1992, the company was privatized and became a private ‘joint stock’. During Ice Fili existence, they have modernized their equipments three times and after 2001 they were able to produce more than 200 tons / day. There are 170 types of ice cream and Lakomka is responsible for 30% of sales volume.…

    • 1420 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Ice Fili Case Study

    • 1167 Words
    • 4 Pages

    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 more power in the future-cafes and restaurants can dictate which ice-cream consumers will choose-accessibility is the issue here - consumers don't have access to all productsCompetitive Rivalry:-low growth-undifferentiated products - no strong brands-high seasonality-overcapacity-Ice cream margins decreased from 30-40% to 15-20% between 1998 and 2000 (confectionery 6-8%)-Dollar price per kilo has dropped from 2.66 to 1.35 (1997 Ex9/Ex7A)-high competition - 300 players a large increase from only 87 in the mid 1990'sBarriers to Entry-very low-low capital requirements as meat packers convert existing refrigeration-No strong brands to compete with or major players - fragmented market-No government policy restricting the number of ice-cream manufacturers-No strong distribution links to break-into: distributors willing to take on another brand at the right priceThreat of Substitutes-ice-cream is in direct competition with chocolate and beer (substitutes)THESE CAN BE ADDRESSED:Increase Barriers to Entry-economies of scale - rationalise products and longer runs, become cheaper to manufacture, create more value and capture it-create a brand identity and invest in marketing-vertically integrate with kiosks and distributors - control-push for regulation of ingredients labelling on packaged ice-creamReduce Rivalry-Grow the category - use advertising (increase the size of the pie)-Buy up smaller players or use branding to drive out smaller playersDecrease Buyer Power-by increasing…

    • 1167 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Haagen Dazs Report

    • 6648 Words
    • 27 Pages

    Haagen-Dazs, which laid a basis for our conclusions. The market trend stated by the icecream industry report and our primary data collection helped us draw a conclusion that…

    • 6648 Words
    • 27 Pages
    Powerful Essays