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 Magnolia’s 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$it! the center of all (ork + from manufacturing to marketing. et, Selecta’s management management led b! Mr. -ohn Marie Marie oncepcion continued to to belie$e that success is not destin! but a /ourne!. In 1990, the challenge for Philippine ice cream market leadership continued. ith Magnolia2 estle 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!one’s 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! industr! caters to the fla$or2conscious fla$or2conscious market. 5lthough 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 bought on impulse 8bu!ing onl! (hen passing an ice cream scooping station but (ithout the intention of bu!ing at first& 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
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. 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 193s (hen =amon 5rce started pasteuri*ing carabao milk near his home in o$aliches (here carabaos are in abundance. Mean(hile, ;ona armen came up (ith an ice cream recipe and in 19'%& the refreshment house introduced a carabao milk2based ice cream. 4hus, Selecta ice cream (as born. In 199, =FM orporation, o(ned b! the oncepcions bought the Selecta brand from the 5rce famil!. Selecta (as far behind in the ice cream industr! (ith other competitors such as Presto. =FM relaunched Selecta to target the 5, < and upper markets. ith strict adherence to )ualit!, Selecta ;air! Products, Inc. came up (ith its success formulaA a (inning combination of high )ualit! product, marketing inno$ation, modern production technolog! and strong distribution net(ork. Selecta (ent into production of bulk ice cream and fro*en no$elties.
fla$ors 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$elties constituted the remaining C" of the compan!’s output. Fresh carabao milk from
Magnolia estle (as the result of a partnership bet(een San Miguel orporation 8SM and estle of S(it*erland, the (orld leader in the food industr!. estle brought to the union its e#pertise in the field of consumer products and a (ide arra! of internationall! acclaimed brands. Magnolia contributed its manufacturing infrastructure, distribution net(ork and 0 !ears of unri$alled Filipino consumer patronage. ith 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 uam, and in 4ai(an through tie2ups. It is e#ported to -apan, Mala!sia, Singapore, and in the Middle ?ast. Presto Presto claims $alue for mone!. It chose to price its ice cream products lo(er than Selecta and Magnolia. 4he okong(eis’ corporate philosoph! is to make a$ailable, $alue2for2mone! commodities to consumers. 4he introduction of 4i$oli bars, the first ice cream bar (as the turning point for Presto. 4he 4i$oli
4he use of carabao’s milk (as the trademark of 5rce Ice ream. arabao’s milk contains considerabl! more fat that co(’s milk 8almost double. 4o be called ice cream, the product must contain B21%" fat. 5mong 5rce’s product, onl! the Super de lu#e and Super Special contain carabao’s milk. Special and regular ice creams ha$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 u#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
Foreign brands Foreign brands include >aagen ;a*s, ;re!ers rand and aagen2;a*s positions itself as the EFinest Ice ream in the orldG. It is touted to be the most e#pensi$e ice cream. It uses onl! natural ingredients and undergoes )ualit! checks to ensure uncompromising standards. ;re!ers rand Ice ream (as born in 19C7. It introduced the blockbuster fla$or =ock! =oad (hich remained one of the best2selling fla$ors of all time.
throughout the Philippines and 5rce e#panded their scooping stations in Metro Manila.
