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This report outlines the strategic approaches to successfully introduce ice cream sandwiches in Russia. Key factors highlight customer loyalty to Russian brands, the challenges of cold winters, and the dominance of small stores. The target market focuses on citizens aged 25-54 in major cities, primarily the middle and upper class. Leveraging affordable labor and utilizing U.S. machinery, Victoria Group will distribute 100% natural products via TV ads, social media campaigns, and enticing in-store promotions. With a market forecast reaching $2 billion, this product promises both novelty and profitability in a thriving Russian economy.
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“It’s It” In Russia By: Rebecca Sommerer and YerzatZharmukhametuly
Most Important Factors • Customers are loyal to Russian brands • Transportation problems • Most places are very cold in the winter • Red color is a favorite
Advice • Small Stores are dominant • Relatively cheap labor force • TV is the most popular way of advertising • Internet is very popular in Russia
Target Market • Major Cities in Russia • Supermarkets and small convenient stores • 25-54 year old citizens • Middle class and upper class
Market Strategy • Have our own production facility • Cheap labor costs • Use U.S machinery and instruction • Use Victoria group for distribution • 249 locations • Well-known for doing international business Victoria Group locations in red
Advertising and Marketing • Advertise as an American taste • 100% natural product • Make campaigns throughout cities • Set up vendors to try the product • Some type of red packaging • Create with government label • Use Vkontakte (Russian Facebook) • TV program “How It’s Made”
Sales Forecast • One Russian ruble is equal to 0.03 of a U.S dollar • 2.204 pounds of ice cream sandwiches sells for $9.02 • Total market revenue is expected to be around two Billion U.S. Dollars • Plan for initial year to generate ¼ of this amount
Final Recommendations • Russia has a successful economy • Ice cream is popular • The ice cream sandwich is fun/new to the market • Advertising and marketing will be inexpensive • Easy to receive help for distribution and advertising