The international players such as Nestlé and the others mostly sold the product through franchised restaurants and café networks. The Russian ice cream industry weathered rough storms with the events like the collapse of the former Soviet Union, the 1998 financial crisis, adoption and implementation of an open market policy and the resultant influx of a large number of foreign investors making the competitive scenario extremely difficult to survive for the local ice cream manufacturers such as Ice Fili.
Offered 170 different varieties of ice cream products as opposed to the limited number of products offered by the regional manufacturers which predominantly sold ice creams in vanilla and chocolate flavors. Added almost 20 new products to its value chain every year.
Had the required management expertise, technological know-how, financial resources as well as a good understanding of the Russian markets that helped it in surviving the two most challenging phases in Russian history – the introduction and implementation of the Open Market Policy and the financial crisis of 1998.
Devaluation of the economy during the 1998 financial crisis leading to increased reliance on local suppliers instead of imported goods, which lead to major cost savings. Also, the financial crisis lead to a forced exit of several major competitors such as Baskin Robbins, Ben and Jerry’s, Unilever etc
Development of new local supplier base engaged in manufacturing ice cream production equipment, thereby leading to major cost savings that would otherwise have been spent on importing expensive pieces of equipment from international markets
Sale of ice creams in restaurants contributed to 3% of sales was a relatively less explored market and could be exploited to gain the first mover advantage.