Selecta Dairy Products, Inc. (Selecta) is the ice cream unit of food and beverage conglomerate Republic Flourmills (RFM) Corporation. It got its name from the Selecta Refreshment Parlor owned by Ramon Arce and his wife Dona Carmen, flocked not for its main American dishes but for its ice cream. In 1946, the parlor introduced a carabao milk-based ice cream, and thus Selecta ice cream was born. In 1990, the small-time ice cream line brand was bought by the Concepcions of RFM Corp. from the Arce family. It was far behind its competitors back then: Presto, Sorbetero, and Coney Island.
RFM re-launched Selecta strictly adhering to high standards of quality, utilizing innovative marketing strategies, using modern production technology, and using a strong distribution network. Since its challenge to Magnolia’s domination of the bulk ice cream market in 1993, its share has expanded rapidly, where it captured 46% of the Metro Manila ice cream market and an average of 39% market share nationwide.
|Strengths |Selecta is currently the leader in overall market shares | | |Does well in the bulk ice cream category, with 80% of its total ice cream output composing | | |of bulk ice cream | | |has high-quality product standards, innovative marketing and promotion strategies, modern | | |production technology, and strong distribution network at par with major competition | |Weaknesses |limitation of their distribution network only to key urban areas | | |Output of Frozen Novelties is only at 20% without having it strongly established in the | | |market | |Opportunities |Improvement of distribution systems among companies remain quantitative through increased | | |numbers of freezers provided to distribution channels | |Threats |Common in all competitors are their intentions to greatly expand their distribution | | |capabilities (Arce, Presto, Magnolia) | | |Smaller competitors are looking into getting at par with the production capabilities of the | | |main competitors |
The Market Situation
Ice cream is a dessert that is considered as a happy food, eaten by people feeling positive, considering it as a trophy for whatever achievement. Conversely, it is also the go-to binge food for depressed people. The ice cream industry caters to a flavor-conscious market. While some are brand loyal, most give importance in the quality of the flavor and are usually adherents to their personal flavor cravings regardless of brand.
According to market research conducted in 1996, 80 per cent 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 percent ate ice cream in the comfort of their home; and 70 percent of the time, ice cream was an afternoon snack. Furthermore, studies showed that per capita consumption of ice cream was less than a fourth of a gallon per person per year. In 1992,...