Ice Fili Case Study

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Register to read the introduction… The modern production management was what Ice-fili lacked. With plenty well trained managers Nestlé could leverage this advantage to produce relatively high quality ice cream with a lower cost. Using locally supplied component further reduced the cost of production. Its long presence in Russian ice cream market and strong marketing ability generated a strong preference among Russian customers. Its abundant experience on distributing enabled its strong control over the channels and massive coverage over the whole market.

Baskin-Robbins would be a strong potential competitor as Ice-Fili tried to enter the restaurant segment. As the first American franchise operation in russian, Baskin-Robbins enjoyed high profitability in Russian premium segment. Well trained franchise managers further strengthened Baskin-Robbins’s position as the premium brand. With its advanced management in design, marketing, personnel training and advertising, Baskin-Robbins enjoyed its monopoly in the premium ice cream segment.

Q4. Identify Ice-Fili’s strategy. Is it cost-leader based, differentiation based, and/or focus based? Is Ice-Fili’s strategy a “good” one? Why/ why not? (272
…show more content…
The first option was to give up its differentiation strategy and try to acquire competencies that were necessary to survive in kiosks segment. The other one was to diversify its product line and enter other two market segments. According to the Ice-Fili’s status, transaction into cost leadership would not be feasible. Competition with regional producers would be quite difficult and based on price war, in which none of them could better off. Even if it succeeded in transaction, it could not keep its leading position in Russian ice cream market because of saturation of Kiosks segment. Since Ice-Fili qualified all that was needed to succeed in the other two segments, the better choice would the latter …show more content…
To reduce the cost of production, Russian local raw materials should be used for the product selling on the street. The investment to enter into others market would be high and need to be pumped out from Ice-fili’s own pocket. Therefore the current profit from Kiosks market would be necessary. So before the other two segments could generate enough market, Ice-fili needed to still keep the product line.

To support this three product lines, internal organization need to be changed. First of all, Ice-flli should continue its optimization of its organization structure. A marketing department needed to be set up to focus on the promotion of Ice-fili’s production in different segment. Secondly, a fair and reasonable appraising system was necessary to provide incentive for works and managers to improve efficiency. Thirdly, young employees with high potential should be sent to western countries to study their management system. All these measures would streamline ice-fili’ process and increase its

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