1. INMARKO’S
BETTER NETWORK
Roman Kulikov
Eugene Kostrikov
Liudmila
Kobzeva
Alexander Kucin
X - factor

2. Problem, aims and solutions/Supply & Demand
Assumption
Aims • Amend the existing
• Inappropriate system of delivering
1 liter=0.75 kg*
system of the goods
• Change the logistics
distribution • Create a modern
• Optimize the one
distribution system
Problem Solutions *http://holod-delo.ru/art1_ic_06_2003.htm
**Appendix Excel Estimated Demand
*** Neglecting seasonal changes
Our Supply
Estimated Demand on
Our Production in 2014
Location of the Plants Omsk Tula (tones)**
Orientation Siberia, the Far Southern, Northwest, North-West 16487,5
East, Kazakhstan Central, North-Caucasus
Time Period Central*** 45464,3
2011 After 2014 2011 By 2014
Production 27.6 hundred 75 hundred 41.4 ths tones
South*** 17968,7
90 ths. tones
tones tones
North-
50 hundred 50% 45 ths tones 10061,5
Potential tones expansion
150 ths tones
Caucasus***
20,000
Warehouse pallets 40 ths pallets Total 90000

3. Modern Network of Distributors in 2014 (App Excel Distributors + Network)
Inmarko’s 15 311 771 rub. Inmarko’s 2 5889 922 rub.
profit profit
Distributors’ 52 460 673 rub. Distributors’ 117 700 383 rub.
bonus bonus
Retail value- 186 713 293 rub.
Retail value- 320 484 783 rub.
COGS
COGS
Arktika Regions: St. Petersburg, Pskov Inmarko’s profit 38 601 632 rub.
Capacity: 10 000 pallets Santa (S+NC) Regions: Krasnodar,
(Inmarko uses: 4651) Distributors’ bonus 160 331 684 rub.
Stavropol, Cherkesk
Alfa and Beta Regions: Vologda, Novgorod Retail value-COGS 513 906 195 rub. Capacity: 8500 pallets
Capacity: 4 340 pallets (Inmarko uses: 7753)
(Inmarko uses: 1215)
Central ID Regions: Orel, Kursk, Belgorod, Antares Regions: Elista, Rostov-na-
Led Regions: Vologda, Novgorod Voronez, Lipetsk Donu, Astrakhan
Capacity: 4 340 pallets Capacity: 17000 pallets Capacity: 9200 pallets
(Inmarko uses: 1215) (Inmarko uses 3650) (Inmarko uses: 3220)
Sever Kholod Regions: The Republic of CLK Regions: Ivanovo, Vladimir, Moscow
Capacity: 17000 pallets Distributor 18 Regions: Volgograd,
Komi Astrakhan
(Inmarko uses 9792)
Capacity: 1500 pallets Capacity: 4000 pallets
(Inmarko uses: 628) Distributor 10 Regions: Moscow, Yaroslavl, (Inmarko uses: 1507)
Vladimir, Ivanovo
Capacity: 9000 pallets
(Inmarko uses 1316)
Snezok Regions: Smolenskm Bryansk Kaluga
Capacity: 6000 pallets
(Inmarko uses 1719)
Ice Regions: Moscow, Yaroslavl, Tver
Capacity: 9500 pallets
(Inmarko uses 1729)
Logistic+ Regions: Ryazan, Tambov
Capacity: 4500 pallets
(Inmarko uses 1179)
The proposed system of distributors will prove to be effective though in some regions the creation of
our own network will definitely be more appropriate.

4. Creation of Inmarko’s system of representation
Cashflow Model of Due to the specifics of demand (consumers in North-West prefer buying
ice cream in shops while in other regions the system of kiosks is likely to
Mixed System (in be extremely profitable) and the area itself (North-Caucasus is the region
of certain spheres of influence) as well as the efficiency of the work of our
mln. rub) distributors in North-West and North-Caucasus we advice to create the
sphere of manufacturer’s influences in the Central and South regions.
16000 (App Excel Costs of Mixed System + Cashflow Model of Mixed System)
14000
12000 Demand seasonality in the south region demand seasonality may change
in 5-16 times. In this connection we suggest we increase the number of
10000 tropical chests, which will be places on the streets in city centers and
along the main streets of resorts meeting growth of demand.
8000 Unfortunately it’s impossible to calculate the required number of chests
6000 without additional analysis of the floss of tourists and movements of
people within the city.
4000
2000 Sales Channels
0 Modern Trade Traditional Trade
Central South Preferable sales channel in the
South, North Caucasus and partly Central.
Gross investments Preferable sales channel in the North
West region. The system is appropriate for
As far as the equipment is concerned, in
the Central part the ordinary chests are
the Central region as well. High enough. Thus the costs will not be high.
Annual Labour costs proportion of ice cream purchasing in However, in the other two the
shops and supermarkets as well as the investments will be noticeable. In
Annual storage costs current trend in the growing of this additional in every regional centre of
segment of retail will contribute to our central and south regions we suggest
profit margin. constructing kiosks in the certain amount
Transportation costs per 1 sq. km. (App Excel Number of
Kiosks)
Profit excluding Investments

5. New Solutions
• The establishing of kiosks of modern type will attract new customers, thus increasing the
revenue
New Kiosks • Special kiosks are more appropriate for uploading ice cream
• The cost of one kiosk will not exceed 250 000 rub, which allows to place a few of them in
city centers
• According to the survey, conducted by us among 105 students between 14-25 year old
(App Excel Survey Results), special ice cream vans, shown in American and European
Ice Cream movies will attract at least 40% of additional customers of kiosks
• Cost of van is base (the most expensive are Mercedes Sprinter and Ford Transit though
Vans GAZ 3302 is also appropriate) plus alterations
• The price of a car is 700 000-2 000 000 rub
• Vehicle capacity of 20-feet container is 21 950 kg
• Temperature: down to −35 C
Refrigerator • Producers: Carrier Transcold, ThermoKing, Daikin, Sabroe, Mitsubishi, Seacold
Containers • Trailer truck for containers is assumed to be less expensive than refrigerator trucks
• Refrigerator containers can be stored in ordinary warehouses which may considerably cut
the costs
• 5-wagon complex БМЗ has vehicle capacity of 160-200 tones (one wagon – 46-49 tones)
Refrigerator • Temperature: down to -50 C
• Calculating the costs is impossible as the cost of rent of the wagons is not revealed by
Wagons Refservice. However, the astonishing vehicle capacity and the scale of the railway system
in the European part of the Russian Federation makes assume that this method of
delivery will be quite profitable

6. Conclusion
So, the system consists of the elements in four regions.
North-West Central South North-Caucasus
• The logistic system is • With a warehouse of 40 • South is an ideal • The region is highly
presented by the 000 pallets in Tula in opportunity for us to risky in terms of security
network of distributors 2014 we are able to establish our own we suggest not
who are able to deal with distribute ice cream in network of kiosks and establishing our own
the increased amount of the region without strengthening our network and continue
production. We consider resorting to distributors positions in the region working with
Modern trade to be the • Modern Trade coverage • Ice cream vans and vivid distributors
heart of this system will be effected through tropical chests are likely
• Besides, we leave Key Accouts to attract attention of
relations with Key • Though, Traditional tourists and increase
Accounts as they are Trade is still important impulse consumption
now. This step proves and its contribution will • We suggest using
effective as people buy even be greater thanks refrigerator wagon for
ice cream mostly for to a widespread system transportation of ice
home consumption of kiosk in every cream as it proves to be
regional centre less expensive than a
truck