Ice Fili

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, - 150
  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 (3 to 4) Nestle (about 10) BB (30)
• Ice Fili top of regional (6 rubles) but lower
  than multinationals for higher quality
  ice-cream.
  
• Desirability
• Branding
• Multinationals have it and locals dont.
• Ice Fili has recognized products but problems
  with branding although is working on it. Working
  on it (advertising, packaging)
  
• Too many varieties
• Competition

4
Competitor Segmentation
Quality

Quality

Nestle
Local
Distribution
-
-
Variety
Price
Ruskii Holod
Price


Lipetskiy


Ice Fili
Baskin Robins
Quality
Brand
Ice Fili
Nestle
Nestle
Ice Fili
Local
Local
Price
Price
5
Industry five forces
high but ongoing segmentation

• Rivalry
• Threat from substitutes
• Threat from new entrants
• Power of suppliers
• Power of distributors potentially

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