Ice-Fili and the Russian Ice Cream MarketThe Russian ice cream market is worth $500 million, with Ice Fili as the market leader. Industrial concentration, determined by the market share of the four largest companies in the sector, is low for the Russian ice cream industry. This indicates that the industry is very fragmented and competitive. The industry has seen a low growth rate of around 3.5% over the past two years and other factors influencing the overall market size, such as population and per capita ice cream consumption, have stagnated over the years. years. External factors such as the shrinking frozen import market, coupled with low barriers to entry, have caused an increase in the number of new entrants in the ice cream market. Ice-Fili is a traditional Russian company that is the market leader in Russian ice cream. cream industry, but over the years the supremacy and competitive advantage has diminished. Due to its traditional skills, it has considerable capabilities, much of which remains unused. Of its capacity of 200 tonnes/day, it uses only about 25% (with an annual production of 16,000 tonnes, assuming 300 working days). Ice-Fili has also followed the strategy of sourcing most of its supplies from the domestic market and therefore in the short term it is relatively insensitive to imports and therefore any negative international events. In recent years, Ice-Fili has invested significantly in machine modernization, so that around 75% of current machines are new generation. This is one of the strengths of Ice-Fili's operations and can be exploited. The company also leads the way in innovation and has already been recognized for introducing innovative products. This is one of the company's strengths, as innovative products will help differentiate its products from other competing products and new products can be exclusively branded against other Soviet-era flagship products. in Russia can be viewed in the context of three strategic groups, namely –1. International players2. Traditional manufacturers3. Local playersTraditional manufacturersTraditional manufacturers are the ice cream manufacturers of the former USSR who were privatized following the dissolution of the USSR. They prefer to use natural ingredients compared to multinational companies that use preservatives. They are not traditionally strong supporters of marketing and their marketing spend constitutes 1% of their overall revenue. So far they have been leaders in Russian markets, but most of them have old factories and technologies..