Although several crucial segmentation variables exist for the ice cream market in Russia, it should be realized that a superior market exists that encompasses not just ice creams but frozen, dairy, confectionaries, and snacks such as candies. However, due to its resource limitations including financial, marketing expertise, and human resources stemming from its legacy of being in the closed economy of Russia, Ice Fili should initially focus on the ice cream market. By dominating the ice cream market and developing it into a cash cow, various opportunities could arise for Ice Fili to extend into a similar, yet broader market with higher market demand growth (+8% for confectionaries) as opposed to the declining demand in the ice cream market. (-3.5%)
As mentioned above, a number of segmentation variables exist for the ice cream market in Russia. These include the distribution channel, buying behavior, geographic locations, and product characteristics such as price. These variables were chosen based on the distinctiveness of each segment. For example, the distribution channel was already clearly defined by kiosks, mini-marts, gastronoms, supermarkets, and restaurants/cafes, which are all easily distinguishable. However, it should be noted that these segmentation variables are not discrete and cannot be used by themselves. In other words, there exists 3 distinct strategic groups that incorporate a unique mix of certain characteristics of the 4 segmentation variables
Although several crucial segmentation variables exist for the ice cream market in Russia, it should be realized that a superior market exists that encompasses not just ice creams but frozen, dairy, confectionaries, and snacks such as candies. However, due to its resource limitations including financial, marketing expertise, and human resources stemming from its legacy of being in the closed economy of Russia, Ice Fili should initially focus on the ice cream market. By dominating the ice cream market...