Selecta's primary target market is kids aged 4-12 who want to satisfy their craving for smooth, creamy ice cream. The Philippine ice cream industry is worth Php8.5 billion. Selecta offers various flavors and sizes priced similarly to competitors like Nestle and Magnolia. They use aggressive television advertising and nationwide distribution to differentiate themselves, leveraging supply chain partnerships to be the number one ice cream brand in the country.

1. 10 STEP Marketing Plan for SELECTA ICE CREAMRAFAEL P. BANAAG IIIFebruary 2011

2. DisclaimerThis 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class.The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.When appropriate, data are “masked” so as not to create unexpected conflicts.The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.

3. Steps 1 to 5PTM and Market SizePTM are Kids (4-12 years old).Who wants to satisfy their craving for smooth and creamy frozen delight.Can choose Nestle, Magnolia, Arce Dairy etc.Can capitalize on Ice cream sticks, 3 in 1 + 1 & Double supreme.Ice cream industry is at Php8.5B.

4. Steps 6 to 10Marketing Mix & StrategySelecta comes in different flavors and sizes.Price is at par with competitors.They are aggressive in TV ads. Can be bought nationwide. Use Differentiation and Supply & Distribution leverage to win the market.

5. 1. Selecta’sPRIMARY TARGET MARKETDemographics: kids, 4-12 years old, M/F, class BCDLifestyle: students (mostly elementary), on allowanceBehavior: sweet tooth, demand pasalubong from parents, request on special occasions

6. 2. Selecta PTM’s NWDNeeds: Sense of belonging when bonded with family, Address hungerWants: Variety of flavors, Satisfy craving for sweet and flavorful treats, Affordability, More milk less sugar, Tub design, Different varieties in one packagingDemands: Smooth creamy frozen delight

7. When kids eat ice cream…Yey!Pasalubong from daddy. Bonding time!I’m hungry!I want to eat!Reference: Maslow’s Hierarcy of Needs Marketing Management, 11thed, Philip Kotler

8. 3a. Selecta is not only one who’s COOL…Direct: Magnolia, Nestle, Arce Dairy, HaagenDazs, Ben and Jerry’s, “Dirty” ice creamIndirect: Frozen yogurt, Shakes (Pearl, Fruit, Milk), Slurpee, Salad Bars, CandiesVariables: Age, Price, Packaging, Availability, Flavor, Variety, Taste

9. 3b. Product Positioning MapHeavenGoldSelectaSupremeNestleMagnoliaDrumstickNestleSorbetes3 in 1 +1PinoySorbetesCornettoArce DairyNestleTrio

10. 3b. Selecta vs. Other Brands

11. 4. Identifying the gap between customers and competitionMarketing opportunity: 60% of ice cream purchased nationwide is in Greater Manila, opportunity to penetrate key cities where the level of consumer income is on a par with Metro Manila.

12. Selecta can capitalize on Ice Cream Sticks, 4 Flavors in 1, Double Supreme which competitors currently doesn’t offer.60%

13. 4. Selecta’s Brand Positioning“Selecta. Number 1ice cream ngbayan.”“Masmasayatalagapag may Selecta!”

14. 5a. INDUSTRY Data:Ice cream sales in the Philippines were expected to grow by 2.8% in 2009 to Php 8.75bn (US$195.4m). Volumes were forecast to inch up 0.7% to 64m liters.2008:Nestle : 42.5%Selecta: 40.0%Source: http://www.just-food.com/analysis/just-the-facts-ice-cream-in-the-philippines_id110524.aspx

15. 5b. COMPANY Data:2008: Unilever-RFM’s data: Selecta sales in 2008 is P3 billion, forecasted to increase by 10% in 2009 = Php 3.3b2010: Selecta posted 48% sales growth = Php 4.9b ice creamSelecta: 66%

16. Nestle: 21%

17. Others: 8%Php 4.9B / 66% = Php 7.4bSource: http://www.philstar.com/Article.aspx?articleid=466249Source: http://www.rfmfoods.com/whats-new/89-rfm-income-up-by-71-to-p625-million

18. 5c. CUSTOMER Data:There are about 94M Filipinos (2010)25% buy ice cream 3x a year94M x 25% x 3 x Php133 = Php9.30B

19. 5. Ice Cream industry in the Philippines is Php 7.4BIndustry data (2009) = Php8.75BCompany data (2010) = Php 7.4BCustomer Usage data (2010) = Php9.30B Getting their average it would be Php 8.5B

20. 6a. Selecta is known for its GOLD CAN Packaging.*Photos taken from various internet sites

21. 6a. Selecta Ice Cream Variants*Photos taken from various internet sites

22. 6a. Direct CompetitorsNestle Products*Photos taken from various internet sites

23. 6a. Direct Competitors*Photos taken from various internet sites Arce Dairy ProductsMagnolia Products

24. 6a. Indirect CompetitorsFrozen YogurtPearl Shakes*Photos taken from various internet sites YogurtFruit ShakesDQ’s Blizzard

25. 6b. Product DescriptionUse only the best ingredients and the freshest inclusions in its ice cream.Well-known for its creaminess, authentic flavors, and unique gold can packagingAlways ahead in product innovations by creating new and exciting flavorsSupported by heart-warming media campaigns that depict Selecta as an ice cream that creates family bonding momentsBest choice because it cares for your health by having more milk, less sugar and offering fruits in your ice creamSelecta’s Ice Cream Stick is a first in the world – no other ice cream company can do it successfullySource : www.unilever.com.ph

26. 7. Price:SELECTA

27. 7. Price: NESTLE***Nestle doesn’t offer 750ml tubs for LOADED SERIES (Supreme for Selecta)

28. 7. Price: MAGNOLIA

29. 7. Price ConclusionAll top 3 brands keep their price at par with each other.

30. Nestle doesn’t offer 750ml tubs for their LOADED series (Supreme for Selecta).

31. Magnolia doesn’t offer 3.0L tubs ( or maybe at selected supermarkets only).

32. They limit their prices below 400, 300, 200 & 100.

33. They apply “pandesal pricing”. To keep their ice cream affordable, they reduce their tub sizes (from 3.4L down to 3.0L) instead of increasing their price.8a. Modes that SELECTA use213

34. 8a. Selecta’s promosPartnered withGoldilocksFREE NipsRecord Setting at MOA

35. 8a. Selecta’s promosPartnered with 7-11 for SelectaGIFT CERTIFICATES

36. 8a. Selecta’s TVC’sTVC Selecta PinoySorbetes:Michael V.TVC Selecta CornettoTugs TugsTugsTVC 3 in 1 + 1 Happy Kaarawan:Vhong Navarro & Sarah G.TVC Double Supreme FavoritesLegazpi Twins & Family

37. 8b. Competitor promo:NESTLETVC Sorbetes Stick :Santino and PokwangPartnered withChowkingTVC Sorbetes Big Pack :Multiple PokwangParty Package

38. 8b. Competitor promo:MAGNOLIATVC Magnolia Milk & Ice Cream:Manny Pacquiao & FamilyMagnolia Ice Cream Website