Ice Fili Case Study

Topics: Brand, Strategic management, Marketing Pages: 4 (1167 words) Published: September 24, 2007
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...

Bibliography: Ice-Fili Case Study write-up on CheathouseSmurfit School Of Business, UCD
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