ARCE DAIRY ICE CREAM
Elsie Arce-Romero, VP Advertising and Promotions
How will Arce Dairy Ice Cream compete in the ice cream industry and regain success using its new brand name?
Low market share, wherein, Arce Dairy Ice Cream belongs to the remaining 10% of the ice cream market.
Poor promotional and distribution strategies
STATEMENT OF OBJECTIVES:
To increase in one month’s time the company’s market share by 5%.
To gain favorable market control in the succeeding years.
AREAS OF CONSIDERATIONS
Arce Dairy Ice Cream is made of fresh carabao’s milk (“all natural”); 2.
The finished product is tastier and richer (more flavorful); 3.
They have variety of ice cream flavors;
They use fresh ingredients like whole seasonal fruits and other natural products; 5.
Arce Dairy Ice Cream has distinct taste and high quality (the firm rejects delivery of ingredients that do not pass high quality standards, no matter how inexpensive); 6.
They have hundred heads of milking carabaos in the Arce dairy farm; and 7.
Their ice cream product has been in the business for years (although Selecta, their former name is now being carried by a competitor, RFM Corporation).
Poor marketing efforts which resulted to local market share (since they seems to be contented catering to their existing customers only); 2.
Low promotional and distribution strategies;
Limited outlet/branch; and
They have sold their former name “Selecta” which have already gained brand equity.
People’s acceptance to its new brand name;
Better company image;
Increase in sales once their market respond to them positively; 4.
Increase in market share;
They could introduce new product line using their fresh milk; 6.
More flavors to introduce using all-natural ingredients;
New markets and segments (to indulge the weight watchers and the health conscious crowd) 8.
Alliances with other establishments/partnership; and
More opportunities for business franchises.
Stiff competition with other Ice Cream factories that had gained brand equity; and 2.
Emergence of other ice cream manufacturing companies.
ALTERNATIVE COURSES OF ACTION
Come up with an intensive promotional and distribution campaign. 1.
Can make use of posters which can be posted to sari-sari stores, public vehicles, and supermarkets; 2.
Price-off promotions which offer consumers a certain amount of money off the regular price of a product; 3.
Printed publications like newspapers and magazines;
Product sampling; and
Using premiums, offering the product at relatively low cost including items which will serve as bonus to purchases.
It obtains consumer trial of a new product;
It builds higher level of sales;
It creates brand awareness;
Price-off promotion induces sales which often earn preferred and special display locations in stores; 5.
It attracts brand switchers;
Customers can come into contact with the real product; and 7.
Limited geographical area will be covered; and
Will require additional expenses to be spent in promotions and distribution.
ACA #2: Create an advertisement.
Develop positive feeling and association with the brand;
Build or reinforce brand image;
Customers’ awareness of the brand; and
Effective at reaching wide audience
Cannot afford the high advertising fee;
A misuse or miscommunication can bring about negative impact; and 3.
Not good at getting customers to make final purchasing decision.
ACA #3: Create a product-variety strategy. (They may produce smaller size of ice cream instead of pint and gallons or use of mugs or other reusable as an...
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