Ice Cream Essay

According to market research conductedin 1996, 80% of Filipino consumers bought on impulse (they bought only upon passing an ice cream shop or scooping station, but without an intention to buy first); 98% ate ice cream was an afternoon snack. Furthermore, studies showed that per capita consumption of ice cream was less than a forth of a gallon per person per year. In 1992, it stood at 0. 23 gallons per person and declined to 0. 20 in 1993. On average, domestic ice cream market was 13. 8 million gallons from 1991-1993, worth estimated p 2. 5-3 billion per annum. Bulk ice cream comprised 86% of the industry sales while the rest was accounted for by frozen novelties. Main competitors in this include San Miguel Corporation’s (SMC) Magnolia and RFM’s Selecta. Magnolia Other trailing competitors are Universal Robina Corporation’s (URC) Presto, Arce Dairy Ice Cream, and Pure food’s Coney Island, as well as foreign brands like Baskin-Robbins ,Dreyer’s and Haagen-Dazs. Magnolia – The pioneer ice cream brand in terms of flavour, 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 flavours to the consumer, with projected volumes of FoM ice cream sold reaching over 28 million gallons. It pioneered the introduction of tropical fruit flavours. It was the first to achieve International Standards Organization quality standards, and is the only Filipino ice cream brand that has expanded overseas. Magnolia is poised as the main competitor, as it aims to be at the forefront of the dairy industry. With increasing competition, MNC intends to make its products available in neighborhood stores and major outlets; introduce a feedback mechanism that will help the corporation monitor the market; and employ new approaches to selling. Currently, magnolia is the preferred choice of many five star hotels, fine dining restaurants, sports and country clubs and food chains.Presto – this brand claims value for money, as part of the corporate philosophy of the Gokongweis, owners of JG summit corp. hich URC is part of, which is to make available value-for-money items for all its consumer-branded products, and as such 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. Presto currently holding the number three position, is determined to fur ther widen its market share and catch up with the giants. Thus, the company is eyeing the possibility of plant capacity expansion and wider distribution network. It is also determined to enhance its advertising campaigns and be very active in the communication field. 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, comfortably within the 5-16% fat content requirement to be called ice cream because carabao milk contains considerably more fat than cow milk (9. 65% as opposed to 4. 16%). Only the expensive ice cream (super deluxe and super special) of Arce contain carabao milk, and are priced at higher than the rates of the competition, showing that Arce’s 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 market’s 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 products’ high milk fat content, setting a standard for flavour richness back then. Purefoods acquired it in 1991 and increased its production capacity without having neglected the improvement of its quality. In line with Pure Food’s rule of following the highest international standards, Coney Island tried to implement the zero-vegetable fat and at least 10 percent milk fat standard of US ice cream. It used high quality ingredients like Callebaut chocolate from Belgium for its top-of-the-line products such as the Premium Bar, Pure and Simple and Bugs Bunny Bar. It repositioned itself in the market in 1995 to improve local competitiveness. It marketed its products as â€Å"Not Just Ordinary Ice Cream†, supported by new flavours and packaging. Coney Island revised its product classification, and began categorizing its bulk ice cream as simply creamy, fruit and nuts, and cakes and pastries instead of the traditional premium and super premium. This move was inspired by a study that showed that consumers buy ice cream on the basis of flavour concepts. Foreign Brands – Foreign include Haagen-Dazs, Dreyer’s Grand Ice Cream and Baskin-Robbins. Dreyers was the first to penetrate the local market.