Abdulmohsin Bukhari

21204

1.What are the potential sources of competitive advantage in the Russian ice-

cream market?

The three main potential sources of competitive advantages include cost, differentiation,

and marketing. The differentiation in this market being the high fat content and unique

texture that comes from using natural ingredients over potentially unhealthy

preservatives.

2. How is Ice-Fili positioned in different parts of the value chain in terms of

willingness-to-pay and also in terms of costs compared to its competitors?

Ice-Fili is positioned in the Mid-level category at approximately 6 rubles when it comes

to price compared to Nestle which is positioned as a premium brand with the

approximate price of 10 rubles. Nestle can charge these high prices because they have

been able to generate brand loyalty and trust with their consumer by spending a lot in

advertising. Ice-Fili on the other hand is in the mid position because the are known for

having a famous traditional recipe which uses high fat milk and natural ingredients this

gives them a bit of an advantage over local manufacturers which usually don’t have the

ability to develop strong brand loyalty through strong advertising such as Nestle