1. Ice Fili

2. Chronology of Key events
Macro or country events
1991 – Open market
1998 – Financial crisis
Consumer demand downward trend
Industry events
Consumption lagging behind the Western world particularly in the bulk and restoration channels.
High quality product by domestic – lower quality multinationals
Growing number of competitors (100 in 1996, in 1998, 300 in 2002)
1999: Margins halved to 15% to 20%
Late 1990s supermarkets rapidly growing channel
Customer events
2002: Increase popularity of bulk ice cream. Still 80% “on the go”.
Competition events
Late 90s copying Lakomka
Early 90s multinationals enter the market
1998 Ben and Jerry leaves. Nestle and Baskin & Robins remain
2002 Regional producers aggressive growth.
Creation of an association to protect quality and hence protect from foreign competition
Ice Fili
1992: Privatized
Since 200) restructuring to increase efficiency – HR, controls
2001: Runs its first TV commercial
2001: Management changes but back to Shamanov
Introducing new products 1998, 2002
2002: Production relied on newly imported equipment, except for 4 products that accounted for 25% of capacity
Mid 1990s – Branding efforts revamping packaging

3. Basic issues
Customers (80% on the go): Availability, affordability, desirability
Availability
Distribution;
Future growth: Supermarkets and restaurants. Approximately 30% of sales international go through this channel. In Russia only 3%.
“On the go” is 80% of the market
A problem for all ice cream producers.
Affordability
Can they cut costs?
Production system not completely renovated but on its way
Prices:
Range 2.5 rubles to 15 rubles
Regional (2 to 3); Nestle (6 to 8); B&B (30)
Ice Fili top of regional but lower than multinationals for higher quality ice-cream.
Desirability
Branding:
Multinationals have it and locals don’t.
Ice Fili has recognized products but problems with branding although is working on it. Working on it (advertising, packaging)
Too many varieties
Competition:
Regional: Available (+), affordable (+++), desirable (-)
Nestle: Available (+), affordable (++), desirable (+++)
B&B: Available (+), affordable (-), desirable (+++)
Ice Fili: Available (+), affordable (+), desirable (+)

4. Competitor Segmentation+
Quality +
Quality
Nestle
Local -
Distribution
Variety -
Ruskii Holod
Price + +
Price
Lipetskiy + +
Ice Fili
Baskin Robins
Quality
Brand
Ice Fili
Nestle
Nestle
Local
Local
Ice Fili
Price
Price

5. Industry – five forces Rivalry high but ongoing segmentation
Threat from substitutes
Threat from new entrants
Power of suppliers
Power of distributors potentially
high but ongoing segmentation
high
high
low
high
Macro:
Continued economic instability
Continued development of local economic infrastructure

6. What are the potential paths Ice-File could follow?
Price
Retailers
Distributors
Margin
ICE-FILI
20% INGREDIENTS