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Case
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Reference no. 514-072-1
Subject category: Marketing
Authors: Alexander Rozhkov (Higher School of Economics, National Research University); Margarita Zobnina (Higher School of Economics, National Research University)
Published in: 2014
Length: 14 pages
Data source: Field research

Abstract

This case describes foundation (2009) and rapid development of Izbenka LLC, local retailer of diary products in Moscow market. The company is focused on healthy natural food and managed to establish over 100 stores in Moscow. In its passion for natural products the company has a very thorough supplier selection policy. Izbenka managed to achieve high growth rates and attract loyal customers with ECR (efficient consumer response) and efficient logistics. Due to these competencies over 70% of products are produced, delivered and sold on the same day. Well trained and customer centric employees also contributed much to customer retention. In 2012 the CEO of the company decided to launch new retail format, that offered extended assortment, in addition to diary products customers were offered fresh meat, vegetables and fruits. This store chain was called VkusVille. Soon after the launch it became clear that its performance was way bellow the forecasts. One of the reasons was that the new store chain did not use the company's competitive advantages. The case focuses on the sources of competitive advantages of Izbenka company and their applicability to the new store format. This case was tested in master-level courses and is also applicable for MBA students. Requires knowledge of basic marketing and business strategy concepts.
Location:
Industry:
Size:
Large company
Other setting(s):
2012

About

Abstract

This case describes foundation (2009) and rapid development of Izbenka LLC, local retailer of diary products in Moscow market. The company is focused on healthy natural food and managed to establish over 100 stores in Moscow. In its passion for natural products the company has a very thorough supplier selection policy. Izbenka managed to achieve high growth rates and attract loyal customers with ECR (efficient consumer response) and efficient logistics. Due to these competencies over 70% of products are produced, delivered and sold on the same day. Well trained and customer centric employees also contributed much to customer retention. In 2012 the CEO of the company decided to launch new retail format, that offered extended assortment, in addition to diary products customers were offered fresh meat, vegetables and fruits. This store chain was called VkusVille. Soon after the launch it became clear that its performance was way bellow the forecasts. One of the reasons was that the new store chain did not use the company's competitive advantages. The case focuses on the sources of competitive advantages of Izbenka company and their applicability to the new store format. This case was tested in master-level courses and is also applicable for MBA students. Requires knowledge of basic marketing and business strategy concepts.

Settings

Location:
Industry:
Size:
Large company
Other setting(s):
2012

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