Ice Cream

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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 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-MARKET SITUATION

Ice cream is a dessert consider as a happy food, eaten by people feeling positive, considering it’s a trophy of whatever achievement. Conversely, it is also the go-to bringe food for depressed people. The ice cream industry caters to a flavour-conscious market. While some are brand loyal, most give importance in the quality of the flavour and are usually adherents to their personal flavour cravings regardless of brand.

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...
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