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Pasig Catholic College

College Department
BSBA2015

Marketing 6
Marketing Research

Table of Contents

I.
II.
III.
IV.
V.

Objectives...3
Introduction........4
Name and History...4
Timeline of Logos and Slogans of SELECTA...5
Company Overview........7
a. Company Industry.....7
b. Target Market and Promotion...7
c. Major Competitors8
d. Products...11
e. Core Products......13
f. Core Competency....13
VI. Marketing Research in R&D and Promotion......14
VII. Selectas SWOT Analysis...18
VIII. Team Recommendation..19
IX. Marketing Research Summary21
X.
Grading Sheet..23

I.

Objectives
a. To know Selecta
development

by

its

timeline

history,

growth

and

b. To know how Selecta engage their market and competitors,


and the leverage they have on their rich line of products

c. To have a deeper understanding on Selectas marketing


research in two fields: Promotion, and Research and
Development
d. To have an assessment and analysis of Selectas Strengths,
Weaknesses, Opportunities, and Threats
e. To be able to recommend a new promotional strategy of
catering to a set of market, and summarize the content to see
the overview of the entire marketing research for Selecta

II.

Introduction

Ice cream consumption usually peaks during the hot summer


months. Demand, however, is also stimulated by festivities, be it town
fiestas or birthday parties, making ice cream very much a part of every
celebration. As such, consumption of ice cream remains significant even
during the rainy season. Since it is strongly associated with joyful
occasions, its consumption is also triggered whenever individuals desire
to reward themselves as it is an easily accessible indulgence.
Ice cream will continue to play a significant role in Filipino
celebrations. It will remain a favorite treat amidst the countrys often hot
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and humid climate, making every get-together more pleasant. The


upgrade in purchases to more premium variants supports this stronger
constant value growth. As the middle class expands, more consumers are
likely to try out brands sold at higher price points which are perceived as
tasting superior.

III.

Name and History

Selecta Dairy Products, Inc. (Selecta) is the ice cream unit of food
and beverage of a widely diversified or variously composed 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 smalltime ice cream line brand was bought by the Concepcions of
Corp. from the Arce family.
Unilever Philippines, Inc., the parent of Unilever RFM Ice Cream, Inc.,
would cite the brands foundation year as 1948. It was far behind its
competitors back then: Presto, Sorbetero, and Coney Island.
Unilever RFM Ice Cream, Inc. is the leading player in ice cream
from 2013 up to present with a value share of 49%. Helping the company
sustain its lead was its aggressive use of advertising and various
promotional activities combined with product development efforts
directed towards addressing the needs of the mass market.

Timeline of Logo and Slogans of Selecta

Selectas Old Logo

When RFM acquired Selecta from the Arce


family, it used this classical logo. Selecta used
its classical logo, later used by its sister milk
division founded in 1997.

Heartbrand logos
1998-2003
Selecta 1998

In 1998, after RFM partnered with Unilever


to strengthen Selecta's market share in the
ice cream segment of the Philippines,
Selecta was welcomed into the Unilever
Heartbrand product line of ice cream, and
gained its own later.

Early 2003-Mid-2003

in

When Unilever updated the Heartbrand logo,


Selecta used this logo until mid-2003,
consisting of the newly updated Heartbrand
logo. This logo was later officially abandoned
2006.

Mid-2003-Present
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In

this

Mid-2003, Selecta officially gave way to the newly


refreshed Selecta logo, consisting of the
newly updated Heartbrand logo. The logo
made the Heartbrand symbol more iconic in
the Philippines. This logo is currently used to
day.

Non-Heartbrand logo
Present
Though

Blue Selecta Logo


Selecta's Heartbrand logo is its primary logo,
Selecta also uses another. The logo consists
of the classical Selecta text placed on a blue
heart. However, the milk business of Selecta
only uses this logo. Selecta's milk business
started using the logo in 2011.

1990-1998: Make Your Choice Selecta. You Simply Must.


1998-2006: Happiness From The Heart
2006-2009: Created With Passion
2007-2009: Mas Masarap Talaga Pag May Selecta.
(Its Really More Delicious when theres Selecta.)
2009-present: Sarap Ng Weekend! (Love The Weekends!)
2010-2012: Number One Ice Cream ng Bayan/ Selecta, Number One!
2012-present: Share Happy
IV. Company Overview

a. Company Industry

Selecta Ice Cream belongs in the frozen novelty delicacies. The ice
cream industry caters to a flavor conscious market. Although some are
brand-loyal, most consumers look into available flavors. Those people
craving ice cream, when the flavor they like is not available, easily switch
to another flavor and/or brand just to satisfy their craving.
b. Target Market and Promotion

Television was used as the primary medium in reaching the


target markets backed up by radio, print, merchandising and
cinema. Campaigns included Chocollection, Classic Selection, Swirls and
Twirls, etc.
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.
The market for ice cream in the Philippines increased at an annual
growth rate of 3.6% between 2004 and 2009. The take-home ice cream
category led the ice cream market in the Philippines, accounting for a
share of 63.6%.
Example of Promotional Setting

Its bulk dairy ice cream brand, Selecta 3-in-1+1 Supreme, for
instance, was unique as it provided four different flavors in one package.
Promoted as ideal for birthday parties, the product sat well with the
demands of consumers for variety without having to spend too much.
Selecta Creations Ice Cream Stick, meanwhile, made its bulk dairy
ice cream flavors available in convenient single portions servings for
consumers with a limited budget.

c. Major Competitors

Magnolia The pioneer ice cream brand in terms of flavor, 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 flavors to the consumer,
with projected volumes of FoM ice cream sold reaching over 28 million
gallons. It pioneered the introduction of tropical fruit flavors.

Presto this brand claims value for money, as part of the corporate
philosophy of the Gokongweis, owners of JG summit corp. which is to
make available value-for-money items for all its consumer-branded
products, and has positioned its prices lower than Magnolia & Selecta.
Presto excels in the frozen novelties market, as was demonstrated in
their introduction of Tivoli bars, the first ice cream bar in the Philippines,
a phenomenal success that had competitors challenge it with their own
versions of ice cream bars.

Arce Dairy This ice cream brand was started in January 1995 and
immediately got hold of a 5% market share. Its trademark was the use of
carabao milk as base.
Only the expensive ice cream (super deluxe and super special) of
Arce contains carabao milk, and are priced at higher than the rates of the
competition, showing that Arces main strength is its appeal to the AB
market where its products cost P3-5 more than its competitors products,
and as its regular ice cream products are priced lower than its
competitors by P3-5 which indicates its attempt to appeal to the CD
markets tendency to want every peso to count.

Coney Island 1976 saw the entry of Coney Island in the local ice
cream market. It introduced a new standard of creaminess thanks to its
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products high milk fat content, setting a standard for flavor richness back
then.

Foreign Brands Foreign include Haagen-Dazs, Dreyers Grand Ice


Cream and Baskin-Robbins. Dreyers was the first to penetrate the local
market. Haagen-Dazs was the latest brand to come in. owners of these
brands claimed they are not here to compete, but only to expand the ice
cream market with superior products. These brands belong to the super
premium category and cater to the A market.

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d. Products

Selecta ice cream comes in different flavors and variants. There are
several variants: the Gold, Selecta Creations, Moo, Selecta Supreme,
Selecta Classic, Ice Cream Cones (Cornetto & Moo Cone), and SK Ice
Cream Stick.

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Also, with its partnership with Magnum, and Hersheys and Reese, it
has expanded its offered flavors by bringing delicious and exclusive
international brands infused with the local brand Selecta Ice Cream.

Selecta also has its own product of milk freshness: Selecta Fortified.
It was founded in 1997 and has developed its own distinctive logo in
2006.

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e. Core Product
Selecta was first known for their ice cream even when the Arce
family also offered American dishes. Through the years, the ice cream line
has become rich and branched out different variants. This has become
Selectas Core Product. All their products use fresh carabaos milk from
Bulacan, Nueva Ecija, and Pampanga were used in the production of
Selecta Dairy products. The Company ensured that the local fruits met
quality standards, otherwise Selecta sourced fruits abroad for its variants
that contain fruits such as halo-halo and creations.
Selecta Ice Cream has been serving and catering markets Upper C,
B and A with its retail items such as Selecta Creations and Cornetto, pint
and gallons, and its tie-up with Magnum, Hersheys and Reese to cater B
and A Market.

f. Core Competency
RFM relaunched Selecta to target the A and B and upper C markets.
With strict adherence to quality and RFMs corporate philosophy, to give
nothing less than the consumers satisfaction and his moneys worth --Selecta Dairy Products Inc. came out with its success formula: a winning
combination of a high quality product, marketing innovation, modern
production technology and a strong distribution network.

Selecta attributed its success to its management focus on


upgrading product quality, providing logistics support, and giving proper
marketing for the product to maximize its potential. It packaged and
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marketed ice cream in a manner that a consumer feels regarded for


buying the product. Selecta capitalized on understanding the Filipino
consumers, making this activity the center of all the work ---from
manufacturing to marketing.

V.

Marketing Research in Research and Development


and Promotion

With economic recovery far from guaranteed, are consumers cutting


back on impulse and indulgence food items like ice cream?
Selectas products are considered to be giants if not leaders in the
ice cream industry. Its key promotion strategies such as various tie-ups
and advertisements have established household brand recall, although
the nature of the ice cream market is largely based on flavor and not on
brand. Selecta should then accompany its new distribution strategy with a
new ice cream promo.

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 Magnolias 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.
Selecta attributed its success to its management focus on
upgrading product quality, providing logistics support, and giving proper
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marketing for the product to maximize its potential. It packaged and


marketed ice cream in a manner that a consumer feels regarded for
buying the product. Selecta capitalized on understanding the Filipino
consumers, making this activity the center of all the work ---from
manufacturing to marketing.

According to marketing research on consumer behavior in frozen


novelties, 80 percent of Filipino consumers bought ice cream on impulse
(they bought only upon passing an ice cream scooping station, but
without intention to buy at first); 98 percent ate ice cream in the comfort
of their home; and 70 percent of the time, ice cream was an afternoon
snack. A report on consumer data for ice cream indicates its total market
size is about Php6.5B in 2010, with 25% of Filipinos buying ice cream
thrice a year.

Leading brand Selecta was able to convince consumers to indulge in


ice cream through the affordable price of its Cornetto brand, whilst its
bulk dairy ice cream variant is positioned to promote family weekend
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bonding. At the same time, it also successfully launched the premium


brand Magnum.

Also, as part of their expansion, promotion, and development,


Selecta has launched their very own caf which is now known locally and
internationally catering A, and Upper and Lower B markets. It is known as
MAGNUM Caf, a high-end caf that offers an indulgence to Selectas
high-end international line Magnum Ice Cream. The Caf offers different
selection and recipes of Magnum and serves beverages and pastries as
well.

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Unilever/RFMs joint-venture between multinational Unilever and


local company RFM Corp, maintains its lead in ice cream in the local
market. The companys share is expected to reach 49% in 2013, as it
continued to push its Selecta variants both in impulse and take home ice
cream. During 2012 and 2013 the company heavily promoted a new use
for its Selecta Super Thick Ice Cream. Unilever RFM Ice Cream encouraged
consumers to make ice cream cake using this bulk dairy ice cream
variant. The companys aggressive advertising campaign generated good
interest amongst middle-income consumers, who excitedly tried to make
their own ice cream cake.
Selecta went into the production of bulk ice cream and frozen
novelties. Bulk ice cream, with around 30 flavors ranging from avocado, to
ube constituted about 80 percent of the Companys output. The
Companys line included Classic, Supreme, Indulgence, and Hersheys
Collection. A fifth category, Regional Flavors, was an innovative venture
into the production of indigenous fruit flavors. The Company came up with
frozen novelties and more than a dozen type of pops, cones, and sundaes.
Frozen novelties constituted the remaining 20% of the companys output.

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VI.

Selecta SWOT Analysis


-

Strengths

limitation of their distribution network


only to key urban areas

Improvement of distribution systems


among companies remain quantitative
through increased numbers of freezers
provided to distribution channels
Selecta could introduce a pioneer in ice
cream delivery system so as to save the
consumers
the
hassle
and
inconvenience of ice cream product
purchase
Bread companies like Gardenia offer
promotion through public demo. They
look

Weaknesses

Opportunities

Threats

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
They conduct their research and
development in their very own facility in
the plant and have hired food
technicians to conduct research

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

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VII.

capabilities of the main competitors


Flavors
and
promotions
of
big
companies are being imitated by small
competitors

Team Recommendation

Given that Selecta already holds a dominant position in the ice


cream market, and that their production capabilities, technologies, and
distribution systems are comfortably on par with the competition, Selecta
should look into countering efforts of the competition to gain better
footing in any of these aspects.
Common in all competitors is their aim to expand and develop their
distribution systems to make their products more accessible. It is
therefore proposed for Selecta to look into further innovate its distribution
system to ensure their position in the market.

On the other hand, competing brand Nestl made products more


affordable and accessible to middle- and lower-income consumers
through the launch of SKUs which were priced lower than P100 per tub.
These efforts came to fruition in 2013, as ice cream consumption was
increasingly becoming weekly indulgence, instead of being a luxury
reserved only for special occasions. Value proposition is an important
criterion for dairy food purchases among middle-class that constitute the
major share of total consumers.
Given the positive trends in the Philippines economic growth
scenario, the Selecta team has outlined some of the alternative strategies
that the company could pursue:
Sell more Selecta products. This strategy seeks to increase sales from
Selecta products in its current markets. One component of this strategy is
increasing the penetration of freezers to smaller outlets. It may involve
increasing promotional efforts or incentives to get more consumers to buy
more Selecta ice cream.

Develop more Selecta products: This strategy will increase


sales by developing new or improved products for its current markets.
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Possibilities include developing more ice cream flavors and entering the
lucrative frozen novelty segment.

Enter new markets. The strategy seeks to increase sales by taking


its existing products to new markets. This means expanding its
distribution networks by entering more cities and towns where it is absent
or even expands to the international market where there are large Filipino
populations.

Enter New Business Leveraging the Current Refrigeration


Facilities. This strategy will increase sales by developing new markets
where Selectas distinctive competencies can be exploited. Possibilities
include marketing other food products that can use the freezer facilities of
Selecta.

The proposed marketing campaign revolves around a new distribution


channel: the Selecta Delight at your Doors Ice-Cream delivery system.

A motorcycle delivery network is proposed to be set-up in all of


Selectas 12 major strategic depots (Metro Manila, Cabuyao, San
Fernando, Dagupan, Naga, Cebu, Bacolod, Iloilo, Tacloban, Cagayan
de Oro, Davao and Zamboanga) that brings Bulk Ice Cream and/or
Frozen Novelties right at the buyers doorstep in a matter of
minutes. Padyak versions (like those used in peddling frozen
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novelties) can be used depending on the distance of the customer


from the delivery stations.

Bulk Ice cream and frozen novelty deliveries will be having a


minimum quantity limit to ensure no net losses from fuel usage.
Prices on ice cream bestsellers will have discounts in delivery, and
some Ice cream packages will be provided for select items, like a
buy 1 gallon bulk ice cream, get 5 novelties free deal or so to also
promote their frozen novelties. And as in most delivery systems,
patrons can avail of sulit cards that enables you to avail of free ice
cream products for every purchase of certain ice cream products.

Some new ice cream flavors or products will be introduced


exclusively through delivery in its introductory stages. In the
launching of the delivery system, a new ice cream product will be
accompanyingly released with a special discount on it to encourage
consumers to avail of it through delivery.

Poster ads will be distributed to all distribution channels (groceries,


supermarkets, convenience stores, etc.) for posting. A promotions
campaign, Delight at your Doorsteps! will be implemented, where
teams of promoters will be scouring neighbourhoods of B, C and D
market classes delivering free ice cream samples of the new ice
cream product that will be released through the delivery systems
launch along with brochures that contain the flavor/product
selections and delivery prices and other product promos.

VIII. Summary

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Grading Sheet
Committee

Group
Grade

Individual
Grade

Materials

Champion
Alvin John Magno

PowerPoint
Presentation

Co-Champion
Christelle Manansala

CD Material

Members
Carl Pagkalinawan
Jolin Pasco
Jerome Mendoza

Hard Copy
Material

Grade

Professors Comment/s:

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