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I. Statement of the Problem Selecta was evaluating growth strategies to sustain market leadership in Metro Manila and capture the leadership in the national market.
II. Objective
To give AFI possible solutions or recommendations on how to increase their flat revenue for the past years
III. Areas of Consideration
1990 - Selecta had only one percent share of the ice cream market
1996 - Selecta captured 46% of the Metro Manila ice cream market and an average of 39% market share nationwide
Magnolia - Nestle and some foreign brands penetrating the local market
Most consumer look into and discriminate among the flavours available when they buy
Ice cream companies have to provide the stores with freezers, free of charge, regardless of store size
1994 - Selecta signed a three-year exclusive agreement with Fun Characters, Inc. to use Walt Disney characters in promoting their ice cream
1994 - Selecta signed a three-year licensing agreement with Hershey Foods International
The tie-up allowed Selecta to use Hershey's popular brand names for its ice cream products
Magnolia was the first in the country to produce ice cream in commercial quantity and held an undisputed share of almost 80% of the market
Magnolia was the pioneer in the development of tropical-flavoured ice cream
Magnolia's ice cream facilities were the first ice cream plans in the Philippines to meet quality system standards set by the International Standards Organization (ISO)
Magnolia is the only Filipino ice cream brand sold abroad
Magnolia invested a total of 1.7 billion in the past three years in upgrading its cold storage facilities
Magnolia deployed about 4,000 new freezers throughout the Philippines
Presto chose to price its ice cream products lower than those of Selecta and Magnolia
Presto was very strong in the frozen novelties market
Presto, however, had an approximate10% share of the bulk ice cream market
Presto was the only