MARKETING PLAN OF SELECTA ICE CREAM
I – EXECUTIVE SUMMARY
Selecta’s humble beginnings can be traced to the Arce family’s ice cream parlor in Manila in 1948. Its ice cream was well-known for its creaminess, authentic flavours, and unique gold can packaging—qualities that remained throughout the years.
In 1990, RFM Corporation bought Selecta from the Arce family to form Selecta Dairy Products, Inc. Known for its sharp entrepreneurship, RFM catapulted the rise of Selecta as a serious contender in the ice cream market always ahead in product innovations by creating new and exciting flavours like Cookies and Cream, Halo Halo, Ube Macapuno, and Chocolate Almond Fudge, and supported by ...view middle of the document...
According to market research conducted in 1996, 80% of Filipino consumers bought on impulse (they bought only upon passing an ice cream shop or scooping station, but without an intention to buy first); 98% ate ice cream was an afternoon snack. Furthermore, studies showed that per capita consumption of ice cream was less than a forth of a gallon per person per year. In 1992, it stood at 0.23 gallons per person and declined to 0.20 in 1993. On average, domestic ice cream market was 13.8 million gallons from 1991-1993, worth estimated p 2.5-3 billion per annum. Bulk ice cream comprised 86% of the industry sales while the rest was accounted for by frozen novelties.
Main competitors in this include San Miguel Corporation’s (SMC) Magnolia and RFM’s Selecta. Magnolia Other trailing competitors are Universal Robina Corporation’s (URC) Presto, Arce Dairy Ice Cream, and Pure food’s Coney Island, as well as foreign brands like Baskin-Robbins ,Dreyer’s and Haagen-Dazs.
Magnolia – The pioneer ice cream brand in terms of flavour, quality control, variety, technology and distribution produced by the merger of SMC and Nestle. It introduced the Flavor of the Month series that provided a huge variety of ice cream flavours to the consumer, with projected volumes of FoM ice cream sold reaching over 28 million gallons. It pioneered the introduction of tropical fruit flavours. It was the first to achieve International Standards Organization quality standards, and is the only Filipino ice cream brand that has expanded overseas. Magnolia is poised as the main competitor, as it aims to be at the forefront of the dairy industry. With increasing competition, MNC intends to make its products available in neighborhood stores and major outlets; introduce a feedback mechanism that will help the corporation monitor the market; and employ new approaches to selling. Currently, magnolia is the preferred choice of many five star hotels, fine dining restaurants, sports and country clubs and food chains.\
Presto – this brand claims value for money, as part of the corporate philosophy of the Gokongweis, owners of JG summit corp. which URC is part of, which is to make available value-for-money items for all its consumer-branded products, and as such has positioned its prices lower than Magnolia & Selecta. Presto excels in the frozen novelties market, as was demonstrated in their introduction of Tivoli bars, the first ice cream bar in the Philippines, a phenomenal success that had competitors challenge it with their own versions of ice cream bars. Presto currently holding the number three position, is determined to further widen its market share and catch up with the giants. Thus, the company is eyeing the possibility of plant capacity expansion and wider distribution network. It is also determined to enhance its...