Reasons For Our Company Essay Example

in producing other fat-containing food items, including mayonnaise.

Ice Fill needs resources like personnel, real estate, and production facilities. Maintaining key partnerships with distributors (Eskimo-Fill and Service-Fill), machinery manufacturers, raw ingredient suppliers, and the Association of Russian Ice Cream Producers is crucial. Ice Fill generates revenue from sales of 170 ice cream products, including 'Lusaka,' which accounts for 30% of sales volume alone.

The company incurs costs related to employee salaries, production facilities and machinery, distribution, and marketing. The cost of ingredients fluctuates based on the season and must be properly factored into the cost structure. Stewardess's Business Model Canvas was used to illustrate the current Ice Fill business model, as seen in Figure 1. After evaluating the value chain of Ice Fill, depicted in Figure 2, the main point of differentiation from competitors is the marketing strategy.

Although Ice Fill has slightly competitive operations, logistics, and services, they excel in human resource management, with almost 40% of their employees serving the company for over 20 years. Despite the recent update in manufacturing equipment that decreased the cost of goods sold (19,51 k USED in 2001 in comparison to 31,kick USED in 1 998), their technological advancements still fall behind those of their international competitors.

Figure 2 shows the value chain model for Ice Fill Ice File's external environment. The Russian ice cream market has a high level of industry rivalry, primarily due to established multinational competition and increasing regional contenders entering the market. In examining the value chain of rival companies in the Ice Alias industry, as shown in Appendix 1, it is evident that there are a number of weak multinational competitors such

as Milliner and Ben & Jerry who withdrew after being unable to turn a profit. However, strong competition comes from companies such as Nestle and Basking & Robin's, who have successfully positioned themselves in the premium segment of the market.

There is room for collaboration with local competitors through the Russian Ice Cream Producers Association to market the natural ingredients of traditional Russian ice cream. This can expose the shortcomings of multinational competitors who rely on added sugars, less fat content, and preservatives. Figure 3 in the Five Forces model illustrates the possibility of new entrants into the market, as demonstrated by the success of Siberian companies Marko and Russia Hold, who are pursuing rapid expansion strategies.

Additionally, some frozen food companies were impacted by the economic downturn.

Figure 1 illustrates Ice Fill's external environment through the application of Porter's 5 Forces model. Meanwhile, Figure 4 showcases the PEST model highlighting various developments in the political, economic, social, and technological landscape. The current open market conditions have given multinational competitors easier access to the industry, while the Russian economy's instability since the 1998 financial crisis remains an underlying threat.

In 2000, ice cream was categorized as a luxury item in Russia and now attracts a 20% value-added tax. This has led to the diversion of substantial funds meant for investment purposes.

Figure 4 depicts the Ice Fill external analysis through the utilization of the 'PEST' model. The core problem and strategic options have been identified. The demand for ice cream products remains high, absolving the market from being the source of the core problem. Additionally, Ice Pill's product is not to blame for the core

problem. The organization must adapt to changing market conditions since they have failed to gain advantage in any of Porter's three generic strategies - Focus, Cost Leadership, or Differentiation. This has led them to 'the marketing wilderness,' where they are unable to pinpoint a significant competitive advantage in the market, consequently allowing competitors to gain ground.

In order to identify potential strategies to enhance the firm's current position, a new approach is suggested. This approach involves utilizing the confrontation matrix, which is based on the previous analysis of the firm's strengths, weaknesses, opportunities and threats.

Expanding internationally is a good idea in theory, but it would be too risky without significant marketing and testing costs due to the difference between Russian ice cream and what is popular in Europe and the USA. However, opening Ice Fill branded outlets and using a franchising strategy, as other successful companies like Basking &Robins have done, could help solve the core problem. Another option is to expand the market and convince consumers that Ice Fill ice cream should be a permanent item in their domestic freezers. Both options are feasible.

There are four feasible options for expanding the ice cream business: diversifying products to include dry ice (Option 1), increasing production of other fat-based products (Option 1), promoting more home consumption to expand the market (Option 2), international expansion by introducing unique Russian ice cream to the west (Option 3), and franchising under the Ice Fill brand name (Option 4). The chosen strategy is to encourage more home consumption and differentiate through a positive advertising campaign highlighting the natural ingredients, heritage, and traditional values of Ice Fill

products. An all year-round tub product for home consumption can offset variable demand according to season.

Consider partnering with and investing in smaller distribution companies such as Eskimo Fill and Service Fill. Forge strategic partnerships with advertising and distribution companies, and collaborate with Advice to enhance the brand and maintain the sassy packaging that appeals to consumers. Cultivate stronger relationships.