Ben & Jerry and Iceverks : Marketing strategy in Russia
Summary :
Table of Contents
- The main cultural differences
- Business environment
- Prodction
- Competition
- Distribution
- Management
- Finance
- Consumer's expectations and B&J's strategy with its product
- Ben & Jerry''s strategy on Russia market
- How Ben&Jerry attracts Russian consumers?
- External analysis on Russia and its Ice Cream market
- Distribution chain and delivery
- Management and employement issues
- Evaluation and conclusion
- Strategic alternatives
Abstract
The Russian systems were undeveloped and inefficient and the Russian mafia has gained enormous power. For example, the company had to pay as much as 30% of their monthly profit for mafia protection. Russians in Moscow consume 170 tons of ice-cream per year and 98% of which is vanilla. When the company decided to introduce some of the American favorite flavors (Cherry Garcia, Chunky Monkey and Chocolate Chip Cookie Dough) it was a flop. The distribution was very important and a difficult problem to solve for the company. Russians didn't have refrigerated trucks for their distribution. There was a lack of refrigeration units in Russian stores. Railroads were very expensive and prevented them for providing their products at a reasonable price. Distribution in russia is often controlled by a monopoly, usually links o organized crime.
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