Ben & Jerry and Iceverks : Marketing strategy in Russia

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.