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SELECTA Packaged in a gold tin can, the unmistakable logo of a heart and the Selecta brand, Selecta has

captured the taste of the Filipinos since it challenged Magnolias long domination of the bulk ice cream market since 1993. In 199 , Selecta had onl! 1" of the ice cream market. Since then, its share e#panded e$er! !ear until, in 199%& it captured '%" of the Metro Manila ice cream market and an a$erage of 39" market share nation(ide. Selecta attributed its success to its management focus on upgrading product )ualit!, pro$iding logistics support and gi$ing proper marketing for the product to ma#imi*e its potential. It packaged and marketed the product in a manner that a consumer feels re(arded for bu!ing the product. Selecta capitali*ed on understanding the Filipino consumers, making this acti$it! the center of all (ork + from manufacturing to marketing. ,et, Selectas management led b! Mr. -ohn Marie .oncepcion continued to belie$e that success is not destin! but a /ourne!. In 1990, the challenge for Philippine ice cream market leadership continued. 1ith Magnolia2 3estle re$itali*ing its efforts and some foreign brands penetrating the local market, Selecta has to find a (a! to sustain market leadership and e#pansion. The Philippine Ice Cream Industry Ice cream is e$er!ones fa$orite dessert. Ice cream is bought either for special occasions or as e$er!da! refreshment. It kno(s no seasons and moods& it is a happ! product, more often taken as a re(ard for oneself, for all sorts of reason. Its delights are not limited to the celebrating fe(.People (olf do(n a lot of it e)uall! (hen depressed. 4he ice cream industr! caters to the fla$or2conscious market. 5lthough some are brand lo!al, most consumers look into and discriminate among the fla$ors a$ailable (hen the! bu!. 4hose cra$ing ice cream, (hen the fla$or and6or the brand the! like is not a$ailable, easil! s(itch to another fla$or and6or brand. 5ccording to a market research, 7 " of all Filipino consumers bought on impulse 8bu!ing onl! (hen passing an ice cream scooping station but (ithout the intention of bu!ing at first9& 97" ate ice cream in the comfort

of their homes& and 0 " of the time, ice cream (as an afternoon snack. Furthermore, studies sho(ed that per capita consumption of ice cream (as less than a fourth of a gallon per person per !ear. :n the a$erage, bulk ice cream comprised 7%" of the industr! sales (hile the rest (as accounted for b! fro*en no$elties. 4he industr!s ke! pla!ers (ere Magnolia and Selecta. 4railing behind (ere Presto, 5rce ;air! Ice .ream and foreign brands such a <askin2 =obbins, ;re!ers and >aagen2;a*s 5 distincti$e feature of the ice cream market is its distribution s!stem. ?ach ice cream brand carried e#clusi$e outlets. @nlike other consumer products, ice cream re)uires free*ers. Ice cream companies ha$e to pro$ide free*ers to the stores, free of charge, regardless of store si*e. More free*ers correspond to a bigger market share. <esides, selling ice (as costl! because of the electricit! consumed. So normall!, dealers particularl! the smaller ones (ere /ust content (ith carting one brand. 5part from the additional cost of electricit!, the space constraint also poses a problem in con$incing them to carr! another brand. Selecta Selecta got its name from the Selecta =efreshment Parlor o(ned b! =amon 5rce and his (ife. 4he place ser$ed si**ling tenderloin steak and other popular 5merican dishes. >o(e$er, people flocked to the parlor not for the meals but for its ice cream that came in three fla$orsA mantecado, macapuno and ube. 4his enterprise started in the 193 s (hen =amon 5rce started pasteuri*ing carabao milk near his home in 3o$aliches (here carabaos are in abundance. Mean(hile, ;ona .armen came up (ith an ice cream recipe and in 19'%& the refreshment house introduced a carabao milk2based ice cream. 4hus, Selecta ice cream (as born. In 199 , =FM .orporation, o(ned b! the .oncepcions bought the Selecta brand from the 5rce famil!. Selecta (as far behind in the ice cream industr! (ith other competitors such as Presto. =FM relaunched Selecta to target the 5, < and upper . markets. 1ith strict adherence to )ualit!, Selecta ;air! Products, Inc. came up (ith its success formulaA a (inning combination of high )ualit! product, marketing inno$ation, modern production technolog! and strong distribution net(ork. Selecta (ent into production of bulk ice cream and fro*en no$elties. <ulk ice cream (ith around 3 fla$ors ranging from a$ocado to ube, constituted 7 " of the compan!s output. 4his line had B categoriesA .lassic, Supreme, Indulgence, =egional fla$ors 8using indigenous fruit

fla$ors9 and >ershe!s collection. 4he compan! came up (ith fro*en no$elties + more than a do*en t!pes of bars, cones and sundaes (ith fla$ors ranging from buko to e#tra2rich chocolate. Fro*en no$elties constituted the remaining C " of the compan!s output. Fresh carabao milk from <ulacan, 3ue$a ?ci/a and Pampanga (as used in the production of Selecta dair! products. 4he compan! insured the local fruits met )ualit! standards& other(ise Selecta sourced the fruits from outside the countr!. Selecta (as packaged in ' si*esA pint, half gallon, gallon and liter. =FM retained the signature gold can of the old Selecta for the half2gallon and gallon si*es. Selecta (ere sold at par (ith the main competition. Its products (ere a$ailable in supermarkets, groceries and other shopping stores. Selecta had scooping stations in selected areas. 4D (as used as the primar! medium in reaching its target consumers, backed up b! print and merchandising. @n)uestionabl! creati$e in its ad$ertising campaigns, Selecta (on ?#cellence and Merit a(ards for their campaigns. Selecta (as conferred the Platinum a(ard 8food categor!9 for its EFo$e ,ourselfG campaign. It had e#clusi$e agreements to use 1alt ;isne! characters in promoting their fro*en no$elties. 4he compan! like(ise became the official ice cream of the park ?nchanted Hingdom. Magnolia Magnolia (as the first in the countr! to produce ice cream in commercial )uantit! and since then held the undisputed share of almost 7 " of the market from 19CB until the first half of 1993. In 19BB, magnolia introduced its Fla$or of the Month 8F:M9 series, (ith S(iss Mocha as the first F:M. 4hus, began the Filipino consumers monthl! lo$e affair (ith Magnolia. @ntil toda!, the Filipino consumer is treated to e#citing fla$ors and fla$or combinations month after month. Magnolia (as the pioneer in the de$elopment of tropical2fla$ored ice cream and has gained acceptance in the 5sia2Pacific market as (ell. Its facilities ha$e met International Standards :rgani*ation 8IS:9 )ualit! standards. Magnolia 3estle ice cream products ha$e been recipients of CB a(ards from the prestigious Monde Seleccion in <elgium.

Magnolia 3estle (as the result of a partnership bet(een San Miguel .orporation 8SM.9 and 3estle of S(it*erland, the (orld leader in the food industr!. 3estle brought to the union its e#pertise in the field of consumer products and a (ide arra! of internationall! acclaimed brands. Magnolia contributed its manufacturing infrastructure, distribution net(ork and 0 !ears of unri$alled Filipino consumer patronage. 1ith increasing competition, Magnolia intends to make their products a$ailable, introduce a feedback mechanism to monitor the market and emplo! ne( selling approaches. .urrentl!, Magnolia is the preferred choice of most hotels, restaurants, clubs and food chains. It is the onl! Filipino ice cream sold abroad. Magnolia products are manufactured in the countr! and in Iuam, and in 4ai(an through tie2ups. It is e#ported to -apan, Mala!sia, Singapore, and in the Middle ?ast. Presto Presto claims $alue for mone!. It chose to price its ice cream products lo(er than Selecta and Magnolia. 4he Iokong(eis corporate philosoph! is to make a$ailable, $alue2for2mone! commodities to consumers. 4he introduction of 4i$oli bars, the first ice cream bar (as the turning point for Presto. 4he 4i$oli <ars success (as so phenomenal that ice cream manufacturers began producing their o(n $ersions of the ice cream bar. Presto is $er! strong in the fro*en no$elties market. 4he estimated compan!s market share is 17". Presto is affiliated (ith the International Ice .ream 5ssociation 8II.59 (hich is beneficial in terms of access to information and de$elopments in the global ice cream industr!. Presto is determined to further (iden its market share and is e!eing the possibilit! of plant capacit! e#pansion and a (ider distribution net(ork. It aims to further enhance its ad$ertising campaigns. Arce 4he 5rce Famil! started 5rce ;air! Ice .ream in 199B and in no time snatched 3" of the ice cream market. It (as initiall! a$ailable in Metro Manila onl! but has e#panded to .entral and Southern Fu*on. ;ealers are mostl! famil! friends and relati$es.

4he use of carabaos milk (as the trademark of 5rce Ice .ream. .arabaos milk contains considerabl! more fat that co(s milk 8almost double9. 4o be called ice cream, the product must contain B21%" fat. 5mong 5rces product, onl! the Super de lu#e and Super Special contain carabaos milk. Special and regular ice creams ha$e a milk base. 4he especial Sorbete de .aro or Edirt!G ice cream has a coconut milk base. 4he sherbet has a fruit base. 5rce has a lock on the 5< market but has no trouble getting through the lo(er income markets. 4his is actuall! noticeable in its pricing strateg!. 4he Super de Fu#e ice cream costs more than the competitors premium brands because its bu!ers do not care about its price. 4he regular ice cream, ho(e$er are cheaper than competition because the market are people for (hom e$er! peso count. 5rce plans to construct a ne( plant in <alinta(ak.

Foreign brands Foreign brands include >aagen ;a*s, ;re!ers Irand and <askin2=obbins. :(ners of these brands claimed that the! are not here to compete but onl! to e#pand the ice cream market (ith superior )ualit! products. >aagen2;a*s positions itself as the EFinest Ice .ream in the 1orldG. It is touted to be the most e#pensi$e ice cream. It uses onl! natural ingredients and undergoes )ualit! checks to ensure uncompromising standards. ;re!ers Irand Ice .ream (as born in 19C7. It introduced the blockbuster fla$or =ock! =oad (hich remained one of the best2selling fla$ors of all time. <askin2=obbins is the oldest and largest franchised ice cream in the (orld. Product range from ice cream to ice cream cakes, ice cream pies, sundaes, milkshakes, smoothies, !oghurt, cones, ice cream cups 2 in 31 fla$ors, (hether light, regular, sugar free or non2fat. Whats ne t !or Selecta"
4he local market ma! seem mature but it still has not reached a real le$el of competiti$eness, there is still room for e$er! pla!er to e#pand. 4he ice cream industr! has been gro(ing continuousl! for the past !ears. Magnolia in$ested billions to upgrade its cold storage facilities. It has deplo!ed B, ne( free*ers

throughout the Philippines and 5rce e#panded their scooping stations in Metro Manila.

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