The strategic marketing presentation for Ice-Fili case

1. Ice-Fili
Strategic
Marketing
Group No. 1 Chiu YiHeng (10103023), Misha Krug (10103007), Yuan Li (10102981), Anne
Neidhart (11105135), Bidzina Khutsurauli (11105321), Angelica Sofrony (11105259)

2. Table of Content
 Internal and External Environment
 Business Model Evaluation
 Competitive Advantage and Position
 Core Problem
 Strategy Options
 Operational Marketing Plan
 Contingency Plan

3. Internal and External Environment
Economic New Entrants
al
O
L
M
S
Political Strengths
Weaknesse
Industry Rivalry
s
Supplier Customer
O I
L
IL OR OL
FI
MS S L Opportunity
HRM
TD
PR
Threat
Substitutes
M
S
Technologica
l Social

4. Business Model Evaluation
Back side Of the company Front side
• Advice (design
company)
Producing Ice Interest in
Cream Superior traditional Russian Focused
• Suppliers of Ice- Customer
taste: all-natural milk-
cream equipment
from Denmark Develop new based ice cream. Group:
and The USA Ice cream Traditional Make people smile not specific
• Association of tastes Russian Ice and happy
Russian Ice cream with Location:
Cream Producers natural high Metropolitan
• Distribution areas
quality Kiosks
Companies: Alter-
West Imported raw ingredients Mini-Markets Less Wealthy
• Small distribution Materials: Milk, with no Pizza Hut regions
companies: Milk powder, preservatives TV Advertising
Service-Fili, Sugar, Butter
Eskimo-Fili, Inka and favor
additives
Packaging, Changing recipes and Sales on ice cream products
Processing Waste Limited mayonnaise production
R&D Fat-containing products
High Fixed Cost
Marketing and Advertising Cost
Glaze for ice cream

5. Value Chain Competitive
Comparison
Value Chain Nestlé Baskin- Regional Ice-Fili
characterist Robbins players
ic
Inbound Strong Strong Weak Equal
logistics
Operations Strong Strong Normal Equal
Primary
Activities Outbound Strong Strong Weak Inferior
logistics
Sales and Very Strong Weak Strong Equal/Inferior
Marketing
Service Normal Normal Normal Equal
Firm Strong Normal Normal Equal
Support infrastructure
Activities Human Strong Very Strong Weak Inferior
Resource
Management
Technology Strong Strong Strong Inferior
Development
Procurement Strong Normal Normal Inferior

6. Competitive Positioning
Nestle- price of
an ice-cream 10
rubles (or more)
Ice-Fili-price of Regional
an ice-cream 6 producers- price of
rubles an ice-cream 3 to
4 rubles * 1ruble=3.4cent

7. Core problem
 Disease indicators:
Sales decrease, market share decrease,
increased number of competitors, market segment shift.
 Company’s core problem:
Wrong organization Correct product Correct market
Ice-Fili-Stuck in the middle Ice-cream Russia-Moscow
In the late 1990, at least five other companies started producing Lakomka.

8. Strategy options
Strategy Ways to achieve the strategy
Differentiation strategy Low price through differentiation product, dominate the
whole Russian market
Market penetration Market penetration by developing new occasions of
consumptions and distributions
Product development Focus on the differentiating the products they already have
and toward a more focused in-home consumption
Co-operation Investing in equipment and ingredients at home rather than
abroad. Cooperate with local ice cream equipment
companies in order to decrease operation cost
Cost leadership strategy The biggest Russian ice-cream company with the cheapest
in the world to buy

9. Cost leadership strategy
 Russia’s top ice-cream producer- opportunity for economies of scale
 Ice-cream-considered as an inexpensive snack, available for
everyone
 “Lakomka”-company’s flagship brand could not be register as its own
trademark
 80% of company’s ice-cream was distributed through kiosks and
mini-markets.

10. Operational Marketing Plan
ICE-FILI
Two mainstream
Channels
Impulse In-Home
(95%) (2%)
Focus on other seasons ≠
Focus on Summer Season
summer.
Starting 1 month prior and
Approximately 4 month per
ending one month ahead.
year.
Create excitement with Developed new occasion
traditional brands  This will of consumption
generate loyalty and increase increasing Ice-Fili
consumption presence in the Russian
households.

11. Operational Marketing Plan -
Impulse
Propositio Promotio
Place Pack Price Product
n n
Refreshing Flavors Two points of The Impulse Parity price Products that
Kiosks
for the Summer contact with the channel with local applied to
Minimarts
consumer. Gastronom packaging must competitors local flavors,
1. Media: BTL & s be clear and and local like the
ATL engaging manufactures Plombir.
2. POS through the use . Develop core
TV & of: brands in
Radio •Branding terms of
•Color coding variants and ≠
•Shape coding presentations
In-
PR
Main highlights (popsicles,
cones and
store 360°  On impulse channel Ice-Fili is going to focus cups)
Campaig on 3 Ps Promotion, Price and Products.
n  In this channel Ice-Fili is looking to increase
loyalty from the consumer to the brand and
increase consumption frequency.
Digital OOH  Main features of the campaign are OOH, In
store activations and digital.

12. Operational Marketing Plan - In
Home
Propositio Promotio
Place Pack Price Product
n n
Packs that
Specially created Two points of Supermarket Premium Products that
drives appeal
for the lovers of contact with the s (2%) prices. applied to
great taste in consumer. Minimarts
and is eye
Approximatel local flavors
family. 1. Media: BTL & (29%) catching, y 15-20% - for in home
ATL resulting in a above Ice-Fili consumption.
2. POS better visibility regular •Multipacks
TV in POS. portfolio. •Liters
•Desserts
Main highlights
 In- home channel will be developed through 4
360° Ps Proposition, Promotion, Place and Pack.
In-
store
Campaig PR  With this campaign we aim increase market
n
penetration by developing new occasions of
consumption.
 In-Home campaign mix will mainly focus on
TV (conventional and non-conventional), PR
Digital and In-store.

13. Contingency Plan
 To protect the critical strategies of Ice-fili`s marketing
plan and to minimize risk the following issues will be
addressed:
1. Set Up Monitoring Operations
 Watching marketplace, actions of competitors and financial results/KPI`s:
Sales, Profit and Gross Margin
Market Share, Market Standing, Market Penetration
Brand Awareness, Customer Satisfaction, Customer Awareness, Customer Retention
 Analyzing the implications of any changes
 Specifying the criteria (KPI`s) to determine if the strategies have
succeeded or failed
2. Define Alternative Plans Of Action
 Proactive responses to “What if”- scenarios in order to
quickly adapt to changing circumstances

14. Contingency Plan
What if - Scenario Developed Contingency Plan
What will Ice-Fili`s response be Making a trade off in budgets to invest more in trade marketing
concerning its strategy of impulse to activate the sales  ensure that the product is widely
if Ice-Fili`s market share is not distributed and available for the end consumer
increasing by the third month?
What will Ice-Fili`s response be if Enhancing current marketing techniques by focusing on what
their sales objectives will only be Ice-Fili does best and targeted communication  differentiate
reached by 50%? itself by advertising its high quality and great taste as well as
the fact that it is a Russian company
What will Ice-Fili`s response be if Temporary price cuts are not a long-term strategic move 
their main competitors decrease ensure and communicate that Ice-Fili has a unique selling
its price by 50% of Ice-Fili`s proposition. If Ice-Fili must discount they have to make sure
price? the cuts are communicated as special offers.
What will Ice-Fili`s response be if Being aware of these changes and offering a special solution
changes in customer for the particular needs of the customers  development of
preferences occur regarding to new or improved products regarding to taste, flavor and
taste, flavor and presentation presentation preferences.
(popsicles, cones and cups)?

15. THANK YOU!!