Selecta was unknown and a dying brand when RFM Corporation bought it in a bid to contest Magnolia¡¦s monopoly of the Philippine ice cream market. And when RFM Corporation bought Selecta in 1990, the company through its winning formula of high-quality, marketing innovation, modern production technology and strong distribution network was able to capture 39% of the ice cream market from 1% Nationwide after more than 2 years from taking over the ownership. With the increasingly intense competition as other competitors are jockeying for a larger share of the market, Selecta has to plan its growth and business strategy in the future.
With its passion for exceeding the expectations of consumers, unwavering dedication to quality, and unrelenting quest to improve itself through its innovations, Unilever RFM Ice Cream Incorporated sees itself winning stomachs and hearts to be become the world’s preferred pleasure food. MAS MASAYA TALAGA PAG MAY SELECTA!
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 heart-warming media campaigns that depict Selecta as an ice cream that creates family bonding moments. In 1997, Selecta became the market leader in the Philippine capital, which accounted for 60% of the nation’s ice cream consumption.
In 1999, to complement its frozen novelties category and strengthen itself for competition, RFM teamed up with Unilever, the largest ice cream company in the world to form Selecta Walls Incorporated. The joint-venture proved to be a success and in 2000, Selecta defeats competition to become the national ice cream leader. And that has been the story since—with its passion for exceeding the expectations of consumers, unwavering dedication to quality, and unrelenting quest to improve itself through its innovations, Selecta or Unilever RFM Ice Cream, Inc., sees itself winning stomachs and hearts to be become the world’s preferred pleasure food.
II. Problem Statement:
What should Selecta do to evaluate growth strategies in capturing the market?
To evaluate growth strategies in capturing the market.
To evaluate growth strategies.
1. Increase in Income and Profit
2. Increase Brand Image
3. Increase Product Awareness
4. Increase in Distribution Channels
5. Increase Market Share
6. Increase in Novelty
7. Increase Product Development
Strength * Increase its market share * Creative advertising campaigns * Conferred a platinum award for its “Love Yourself” campaign * Has its own scooping stations in selected areas| Opportunity * Signed a 3 year agreement with Fun Characters, Inc. to use Walt Disney characters to promote its product and made their product stronger in the frozen novelties market * Signed a 3 year licensing agreement with Hershey Foods International which allows Selecta to use Hershey’s popular products to use for the ice cream products| Weakness * Low growth strategies * Low market share| Threat * With its competitors especially Magnolia that can possibly decrease its market shares.|
Strength: Selecta has increase its market shares that cause them to be successful than Magnolia. They also have their creative and unique advertising and choose popular celebrities to have their products more popular and saleable in the market. They had an award which made their products more popular. They...