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)
Table of Content

   Internal and External Environment
   Business Model Evaluation
   Competitive Advantage and Position
   Core Problem
   Strategy Options
   Operational Marketing Plan
   Contingency Plan
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
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
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
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
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.
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
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.
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.
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.
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.
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
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)?
THANK YOU!!

Strategic marketing 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 ExternalEnvironment 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.

Editor's Notes

  • #11 Operational Plan: 1 year time tableSelected Market segment5 PsTime plan ResourcesMonitoring ControlContingency PlanBrand Marketing Plan Objectives Key Issues and opportunity Integrated activity schedules that link: communication, activation , customer, and other marketing activities
  • #12 On impulse channel Ice Fili is going to focus on 3 Ps Promotion, price and products. In this channel we are looking to increase loyalty from the consumer to the brand and increase consumption frequency looking with this improve our market performance through the gaining of a suitable market volume share. TV ads: 30’ with expectation teaserPR related with summer trends. Events in beaches and summer clubs. Create talkability of the brand, media tour in radio stations OOH: main cities most important streets. Focus OOH in high flow places during the summer. (Boards, bustops, shopping centers, schools) Digital: Brand master campaign POS: Activations in kiosks and in mini markets, promotions, off sales prices, prizes and surprises for the buyers and consumers. POS branding material : Karts material, refrigerators to main clients, banners inside stores. Activations on main streets with mobiles kioks.
  • #13 Why In-home with only 2% of the distribution: Impulse channel is already saturated and its difficult to gaining new consumers or settle new kiosks in this channels. While In home is a channel that recently explore that gives Ice Fili the possibility to expand their sales to new occasions of consumption. Super markets is 2% of distribution, but this portfolio can also be sell in minimarkets 29% of the distribution In Home will be focused in 4 ps Proposition, promotion, place and packs with the main aim of increase penetration (increase the # of households with a Ice Fili product). Increasing penetration we are going to increase market share (this time value and volume)TV ad: 30’ with teasers of 10’ appealing to create an emotional bonding with the brand and as an indulgent product. Makes all the family happy.  Emotional message: “Ice Fili is like your family, share it with it” Share happy. Non conventional TV in family programs.PR: related to the benefits of share with the family, this to positioned the new occasion of consumption. Recipes related to easy desserts made up of Ice fili Ice cream to share in any family occasion. Platform exploiting the benefits of family sharing. Free press as editorials. Digital: web page, recipes searcher, editorial content. Bloggers, communities, direct emailing.In-store: aggressive promotions this will help to full the households with the products. (coupons, take one and the second free, refills of products), Trials of the different flavors and variants. POS visibility material.