Marketing 101 Final Pass March 6 Update

Ateneo de Manila University
Loyola Schools John Gokongwei School of Management
RELIVING GOOD TIMES WITH PRESTO: Resurrection of Presto Tivoli Ice Cream
5- Co, Eimee L. 7 - Cruz, James Vincent E. 20 - Ng, Jasmin M. 24 - Ragadio, Kevin Joe N. 25 - Reyes, Luigi T. Marketing 101 C
Mr. Jose Rafael Lantin
March 8, 2011
Executive Summary Despite its dependence on economic conditions as a luxury good (its only significant environmental threat), the Ice Cream Industry in the Philippines is big, with total sales of Php 8.7B in 2010, and growing, with a sales volumes growth rate of 10.3% and a sales value growth rate of 33.28% for the years 2005 to 2010. Apart from good economic conditions, several factors push this growth, particularly, innovations to the marketing mix made by the dominant multinational players, Nestle, Unilever and San Miguel Corp., which combined have an 86% share of the market. Growth is expected to continue as the growing middle class shifts to the more expensive premium flavored variants and as market penetration increases there are plans to move out of the concentrated and highly competitive Metro Manila area to other regions of the Philippines. Despite all these changes however, Ice Cream still remains a food for the young with Children, Tweens and Teens being the primary consumers and a food for celebrations. Presto Tivoli Ice Cream is the Ice Cream of the masa. The primary key success factor for its two categories (Packaged Ice Cream and Frozen Novelties) is its affordability. Affordable quality in this, the Presto Tivoli line stays in tune with its mother company, the Universal Robina Corporation. It is its creative Frozen Novelty line, however, that lets it stand out from its other competitors. Presto Tivoli caters to not only the end consumers, but also to the intermediary entrepreneurs as well. It can do this because of its strong sales force. The brand failed because it ignored or compromised the strengths of the company. One of the reasons for failure is lack of innovation due to financial constraints of the Research and Development department; this compromises Tivolis differentiation as a fun, creative brand. Disputes with the suppliers pushed the cost of goods and, consequently, the prices of the product. Disputes with the dealers, on the other hand, compromises accessibility to consumers, allowing then the entering of multinational players to take their place in the market. Finally, the resignation of several veteran employees weakened its previously strong sales force.
Reliving Good Times with Presto: Resurrection of Presto Tivoli Ice Cream | 2
Ateneo de Manila University John Gokongwei School of Management Project Information Cataloging System (PICS) Class Project Information and Cover Sheet Name of Student/s: Co, Eimee, L. Cruz, James Vincent, E. Ng, Jasmin, M. Ragadio, Kevin Joe, N. Reyes, Luigi, R. School Year: 2010-2011 Subject Code: MKT 101 Course Name: Principles of Marketing Teacher(s): Mr. Jose Rafael Lantin (Information below this line and in this column for use by Faculty &/or PICS staff only.) Grade: Project Title: RELIVING GOOD TIMES WITH PRESTO: Resurrection of Presto Tivoli Ice Cream Client: Presto Tivoli Ice Cream (URC) Comments: Functional Area: Call Number: Sem: 2nd
Industry Category: Ice Cream
Abstract (150 words or less)
Author(s) Recommended Key Words Presto Tivoli Ice Cream, Presto Ice Cream, Presto
Table of Contents Executive Summary PICS Title Page I. Marketing Background A. Overview of the Industry 1. Market Size (Volume/Value) 2. Market Trends (Past 3-5 Years) B. Market Profile (General Purchase and Usage Habits) C. Environmental Analysis 1. Analysis of Opportunities and Threats 2. Key Success Factors Competitive Analysis A. Competitive Positioning B. Market Shares/Sales Volume/Sales and Profit Trends C. Marketing Strategies (for each of the 4 Ps) D. Strengths and Weaknesses of Competition (in terms of 4 Ps)
II.
III. Company Background A. Company Profile B. Current Position of the Company/Brand in the Market C. Company Strengths and Weaknesses Analysis D. Brand Consumer Profile 1. Identified Market Segments 2. Market Needs Being Addressed 3. Buying Pattern 4. Usage Habit E. Present Marketing Strategy 1. Segmentation, Targeting and Positioning 2. Marketing Mix (Four Ps) 3. Competitive Strategies Employed F. Reasons for the Failed Brand IV. Identified Market Opportunity for Re-launching the Failed Brand A. Differentiation and Positioning B. Opportunities C. BCG (Boston Consulting Group) Growth Share Matrix D. SWOT Analysis 1. Strengths 2. Weaknesses 3. Opportunities 4. Threats
V.
E. Identified Opportunities and Growth Strategy Proposed Target Market A. Demographics B. Psychographics C. Behavioral D. Geographic
VI. Marketing Objectives A. Overall Marketing Objectives B. Specific Objectives and Targets (3 Years) 1. Market Shares 2. Sales (Volume and Value) 3. Profits/Net Income 4. Distribution VII. Overall Marketing Strategy A. New Marketing Strategy B. New Value Proposition C. Strategy Pyramid VIII. Marketing Mix A. Product 1. Product strategy/Positioning 2. Packaging B. Pricing 1. Pricing Strategy 2. Detailed Product Costing 3. Index Vs Competition C. Distribution 1. Distribution Strategy Statement 2. Distribution Set-Up/Map 3. Trade Channels D. Promotions 1. Overall Promotions Strategy 2. Major Promotions Tools 3. Action Programs 4. Carious Promotion Activities/PR Events a. TV Advertising* b. Print Advertisement c. Radio Advertisement d. Outdoor Advertisement e. Advertisements Storyboards and Scripts f. Facebook Flash Game g. LRT,MRT and PNR Southrail Line
IX.
Financial Forecasts a. Sales Volume/Value Projections b. Detailed Marketing Budget and Marketing Table c. Income Statement
Attachments/Appendices a. Ice Cream Plant Proposal b. Euromonitor Forecasts c. Packaging Bibliography
I. Marketing Background A. Overview of the Industry Source: just-food, Euromonitor Ice Cream is very evident in the Philippine society from TV Commercials down to print advertisements and radio commercials. These are the highlights pointed out by just-food and Euromonitor, regarding the Ice Cream Industry in the Philippines (directly quoted from the website): 1. Ice Cream sales in the Philippines were expected to grow by 2.8% in 2009 to PHP8.75bn (US$195.4m). Volumes were forecast to inch up 0.7% to 64m litres. 2. The market is dominated by two large players, with Nestle accounting for 42.5% of sales in 2008 and Unilever arm Selecta Wall's having a share of 40%. 3. The Nestle brand is the largest Ice Cream brand in the Philippines, accounting for 37.2% of 2008 sales. The Selecta brand enjoyed 36.2% of sales in 2008. 4. According to Euromonitor, the medium term remains "unexciting" for Ice Cream in the Philippines; the volume CAGR is projected at just 1% between 2009 and 2014. 5. The "minimal growth" will mainly come from the expansion of smaller lowerpriced brands like Creamline Dairy Corp. and others in impulse Ice Cream. On the other hand, major manufacturers such as Nestl and Selecta Wall's will see more growth in bulk Ice Cream. 6. Bulk Ice Cream will remain the "brightest spot" in Ice Cream with a volume CAGR of 1.3% over the forecast period. This growth in volume will contribute to the continuous contraction of other take-home Ice Cream, namely Ice Cream desserts. 7. Consumption of Ice Cream in the Philippines was concentrated within the Greater Manila area between 2004 and 2008, with 60% of total volume purchased there. Euromonitor believes there is an "opportunity" for manufacturers to penetrate key cities where the level of consumer income is on a par with Metro Manila. 8. Products geared towards lower- and middle-income consumers have enjoyed recent success. Nestl embarked on the introduction of Nestl Sorbetes which banks on the penchant of Filipinos for unbranded home made sorbetes. This brand competes through its lower-pricing strategy of Ps100 per 1.6 litres. Meanwhile, responding to warm acceptance from buyers, Selecta Wall' maintained the price of its Selecta 3-in-1 at PHP95 but increased volume by 33%.
9. The proliferation of smaller companies offering lower-priced branded products in the market has been snatching sales from major brands especially in impulse Ice Cream. 10. Chocolate remains the undisputed favourite of Filipinos making it the number one flavour launched and developed by manufacturers. 1. Market Size (Volume / Value) Source: Euromonitor
Figure 1. Sales Value of Ice Cream in the Philippine (in PhP M)
There is a significant increase in the market size of the Ice Cream Industry in the period between 2005 and 2010. This growth is further classified according to category, sales volume (amount of Ice Cream sold) and sales value (amount money earned) in the following pages.
Sales of Ice Cream by Category: Volume Growth Percentage (2005 2010)

Ice Cream Category 2009/2010 2005 2010 CAGR 2005/2010 Total 0.80 0.68 3.45 Frozen Yoghurt 8.40 9.87 60.13 Ice Cream Parlours 0.70 0.94 4.80 Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream 0.70 1.06 5.41 - Single Portion Dairy Ice Cream 0.70 0.78 3.96 - Single Portion Water Ice Cream Retail Artisanal Ice Cream 2.94 2.11 10.98 Take-Home Ice Cream 3.00 2.16 11.26 - Take-Home Dairy Ice Cream 3.00 2.18 11.38 -- Bulk Ice Cream -10.00 -42.43 -93.68 -- Ice Cream Desserts -2.00 -1.72 -8.30 - Take-Home Water Ice Cream Ice Cream 2.69 1.98 10.30 Table 1. Volume Growth Percentage of Ice Cream by Category (2005 2010)
Figure 2. Volume Growth Percentage of Ice Cream by Category (2005 2010)
Sales of Ice Cream by Category: Value Growth Percentage (2005 2010)

Ice Cream Category 2009/2010 2005 2010 CAGR 2005/2010 Total 6.00 5.70 31.93 Frozen Yoghurt 10.82 11.77 74.42 Ice Cream Parlours 2.81 4.86 26.75 Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream 3.50 6.30 35.74 - Single Portion Dairy Ice Cream 1.50 2.36 12.36 - Single Portion Water Ice Cream Retail Artisanal Ice Cream 4.92 5.97 33.61 Take-Home Ice Cream 4.98 6.01 33.86 - Take-Home Dairy Ice Cream 5.00 6.09 34.40 -- Bulk Ice Cream -9.50 -20.37 -67.98 -- Ice Cream Desserts 0.90 3.13 16.68 - Take-Home Water Ice Cream Ice Cream 4.77 5.91 33.28 Table 2. Value Growth Percentage of Ice Cream by Category (2005 2010)
Figure 3: Value Growth Percentage of Ice Cream by Category (2005 2010)
In summary: Ice Cream Parlours had the highest volume growth for the years 2009-2010 while Ice Cream Desserts had the lowest with a negative value of 10 (bar not shown above). Consistent with volume growth, Ice Cream Parlours had the highest value growth for the years 2009-2010 while Ice Cream Desserts again had the lowest with a negative value of 9.50 (bar not shown above).
Market Analysis (C.A.G.R.)
Figure 4. Market Analysis C.A.G.R.: Volume
Figure 5: Market Analysis C.A.G.R.: Value
Ice Cream Parlours has the highest CAGR (in terms of volume and value) for the years 2005-2010. On the other hand, Ice Cream Desserts had the lowest growth (in terms volume and value) for the same years with negative values of 42.43 and 20.37, respectively.
2. Market Trends (Past 3-5 years) Source: Euromonitor Sales Ice Cream sales by volume went up by nearly 3% in 2010 with bulk Ice Cream going up by 3% (take-home Ice Cream have a 70% share of the total Ice Cream market); value sales grew by nearly 5%. Growth is expected to continue. Economy Sales growth is highly dependent on economy. Improved economy increases consumer spending on non-essentials such as Ice Cream. In troubled times, they prefer not to consume Ice Cream at all over switching to the less expensive brands. Health Awareness Consumers are becoming more health conscious. Demand for reduced sugar Ice Cream and soy-based variants will increase as consumers look for healthier alternatives. Market Leaders The combined market shares of Nestl, Unilever and San Miguel Pure Foods Co Inc. amount to 86% in 2009. Dominance can be attributed to their longstanding presence, extensive distribution network and strong financial resources (to finance research and development, as well as invest in advertising campaigns to improve awareness and enhance brand recall). Unilever-RFM Ice Cream Corp maintained leadership with a value share of nearly 43% in 2009. This was mainly due to the strong performance of Selecta, which offered both impulse and bulk Ice Cream. Continuous improvement of its value share can also be attributed to the wide price range of its products, allowing it to tap all income groups, and the companys extensive distribution network, which permits Selecta to be available across the Philippines. Marketing Mix: Product While chocolate and vanilla remain the top two popular flavors, theres been a shift, instigated by Unilever-RFM Ice Cream Corp towards more premium and limited (but affordable) edition products. This threatens high-end brands as the new offering is priced at only Ps210/kg compared to imported labels such as Hagen-Dazs, which is
sold at Ps840/kg. Aimed towards its middle class consumers, this trend is expected to continue and increase sales value significantly (as the premium Ice Cream, though more affordable than high-end brands, are still more expensive than regular flavors). The value-for-money lines, however, are not neglected. Unilever-RFM Ice Cream Corp has and promotes Selecta 3-in-1 plus 1 which contains four classic flavors cheese, ube, vanilla, and chocolate in one pack. These two innovations popularize Ice Cream because of improving its affordability. Price Unit prices of Ice Cream are expected to remain stable despite the anticipated volatility of global milk prices. Place Market penetration is also aided by efficient distribution channels. Individual peddling vendors, an innovation by Nestle, promote impulse-buying by improving accessibility. Given the high concentration of Ice Cream sales in the Greater Manila Area some local players such as Arcefoods Corp. and The Food People Inc are limited to the Metro Manila area- manufacturers are expected to outwards to other regions of the Philippines. Big players are foreseen to make the first move. It is likely that they will employ street peddlers to overcome transport and storage difficulties particular in the less developed areas. Promotions Nestl Philippines Inc, Unilever-RFM Ice Cream Corp and San Miguel Pure Foods Co Inc heavily have advertised their brands through television commercials and print advertisements. All three players use celebrities to persuade consumers to purchase their products: Philippine top chefs Rolando Laudico, Sau Del Rosario, Jay Gamboa and Ariel Manuel both crafted and promoted the Selecta Gold series. On the other hand, Megastar Sharon Cuneta and world renowned boxer Manny Pacquiao endorsed Nestl and Magnolia Ice Cream products, respectively. Others Competition between other snack products and Ice Cream remains low as Filipinos consume these products on different occasions. Cakes, pastries and sweet/savoury snacks are eaten on a more regular basis since they are more filling to the stomach. Ice Cream, on the other hand, is seen more as a treat, especially during hot days, and a celebratory dessert.
B. Market Profile (General purchase and usage habits) Source: Euromonitor Young Children, as consumers, have high spending power. They are usually drawn towards commodities related to media and social networking like videos games, prepaid cards, internet services and mobile phones. Out of the entire internet user in this group, 72% watch videos online and 76% create networks of friends online. Young children also spend much time watching television as it is easily accessible. Of the children surveyed, 96% said they watched daily. Other commodities widely consumed by this group are food, snacks, fruit beverages, clothes, footwear, and school supplies. The parent is often the decision buyer but young children can express their preferences towards certain products they want or need. Tweens have more buying power and decision-making power compared to the young children consumer group. With their allowance, they can buy what they want or need without the guidance of their parents; buying decision is mostly influenced by media or friends. Tweens are usually drawn towards cheaper snacks, drinks or sweets. However, their increased attention to appearance has made them more interested in branded clothing. Teens have even more buying and decision making power than tweens. They have more pocket money and can purchase more snacks and are available to a wider variety of clothing. Teens are mostly attracted to social gatherings like parties, clubs and discos making them the target for alcoholic products and cigarettes. Conformity rather than freedom is a greater concern for teens since parents give them freedom in their purchases. The desire to be accepted in a social group is given priority. Main commodities targeted by this consumer group are food and beverages, electronic products, clothes and fashion accessories. C. Environmental Analysis 1. Analysis of Opportunities and Threats Analysis of the Opportunities and Threats that the Company (Presto) faced before its shut down can be best classified according to: Environmental Factors and the General Market. The Environmental Factors consist of the Economic, Political, Social, and Technological Factors while the General Market consists of the Market by itself, the Suppliers and the Competitors. The following tables enumerate the opportunities and threats to the Ice Cream Industry from the perspective of Presto.
Environmental Factors Economic Environment deals with the forces in the economy such as inflation, deflation, currency exchange rate and the like. Political Environment focuses on the laws and regulations imposed by the Government or a branch of it, like the Bureau of Food and Drugs (BFAD). Social Environment deals with the social classes or the SEC. Technological Environment focuses on the advancements that help a company operate at its maximum capacity.
Opportunities Consumers spend more during economic booms. Threats
Environmental Factors Economic Environment
Political Environment
Depressions, inflations and the like discourage consumption of luxury goods such as Ice Cream. An example of an economic crisis that really affected not only the Ice Cream Industry but most of the industries, is the Asian Financial Crisis. Compliance with the laws and regulations imposed Companies need to go by the Government (BFAD), assures and improves through BFAD tests the safety and quality of the product. before they can launch their product. Presto Tivoli Ice Creams Frozen Novelties (e.g. the Funwich which is a Sandwich type of Ice Cream, which has Ice Cream as the filling) product line diverged from the traditional packaged Ice Cream (which come in pints, quarts, gallons, and the like). In addition to altering peoples perception (The consumers found it cool to eat.), this strategy takes advantage of variety-seeking consumer behavior. Ice Cream is desired -a luxury. Technological Advancements facilitate efficient and effective transactions. Ice Cream is viewed as a food that has no nutritional value. Healthconscious consumers would probably consider it a guilty pleasure. Ice Cream is also thought to cause sore throats.
Social Environment
Technological Environment
Technological Advancements do not threaten the industry.
Inventory Control Objective (ICO) is an advancement that ensures the quality of the products, as well as, limits the stocks in a store to avoid overstocking. Off-take Readings is an advancement connected to this ICO. Table 3: Analysis of Opportunities and Threats Based on Environmental Factors
General Market Market is concerned with the process of selling the product to present and prospective consumers. Suppliers are the partner-companies of the client-company who provide the company with raw materials needed for the product. (For example: Milk, one of the most important raw materials, is used to make Ice Cream.) Competitors are companies who offer the same or similar products.
Opportunities The greatest opportunity that the market has in store for the industry is to create a product that offers a unique kind of Ice Cream experience. You can use the market to introduce new products by offering customers free samples with their purchases or simply by placing them next to your other offerings. Reliable suppliers are partners. They provide the client-company all the raw materials with quality, often at a discount. Threats People were looking for a different type of Ice Cream that is delicious enough that can be eaten and served daily.
General Market Market
Suppliers
Unreliable suppliers cause inconsistency in the quality and availability of raw materials. Before they failed, the raw materials Presto used were unreasonably expensive. This increased their cost of goods sold and decreased their profits. Selectas Ice Cream was better mainly on the Packaged Ice Creams category. Supermarkets and the dealers could no longer afford to display Presto freezers in their stores because of the limited space. Arce Dairy uses carabao milk in their Ice Cream. They use the finest ingredients and this improves the taste. Coney Island has a strong and creative Novelty Ice Cream Category. (e.g. the Eskimo Roll)
Competitors
Presto Tivoli Ice Cream had four major competitors, namely Selecta, Magnolia, Arce Dairy and Coney Island. Presto invested in its Frozen Novelties product line. Selecta had no Novelties then (mid 90s). Magnolia does not have many Novelties as Presto has. Coney Islands packaged Ice Cream is not as readily available for sale to customers. Customers needed to place their order/s first. An important opportunity companies get from their competitors are the innovative ideas that, more often than not , spread out to the entire industry. They can also form cartels and associations that help protect their industry from outside threats like taxes and minimum wage laws.
Many industries are pretty cut throat. Companies fight to get a bigger slice (share) of a limited pie (the market). Table 4: Analysis of Opportunities and Threats Based on the General Market Reliving Good Times with Presto: Resurrection of Presto Tivoli Ice Cream | 17
2. Key Success Factors The Key Success Factors determine if the Marketing Strategy of the company can successfully create profitable relationships with its customers. KSFs can also be used to gauge the companys position and its satisfaction with its operations both internally and externally. Presto Tivoli Ice Cream Key Success Factors Presto has determined the following KSFs: Affordability/Price-Value Ratio, Creative Packaging, Strong Marketing Campaign, and Capable Employees.
KSF Affordability/ Price-Value Ratio Creative Packaging Strong Marketing Campaign Capable Employees Benefits/Results Consumers think Presto Tivoli Ice Cream is worth the money they spend on the product. In 1995, Prestos Sales increased by 30%. In late 1995 to 1996, Coney Island shut down. Presto has creative offerings when it comes to its products, primarily the Frozen Novelties. The Gokongwei Group of Companies invested on advertisements (newspapers, television, and the like) more than its competitor, Coney Island. Present and prospective consumers became more aware of their products. Presto has a strong sales force. They are professional (to work with) and trained (about the scientific selling, like merchandising and distribution). Table 5a: Key Success Factors of Presto Ice Cream
Ice Cream Industry (Philippines) Key Success Factors

KSF Feel-good Ice Cream Experience Benefits/Results Eating Ice Cream reminds people of their childhood - more so than cake that is popular even among adults. Its the fun, whimsical and magical dessert. When people eat Ice Cream, they think of visits to the zoo, Sundays at the park, summers at the beach, afternoons playing street games, years worth of Birthday parties and rewards for good grades. The Philippines, being a tropical country, is a good market for Ice Cream Industry, especially during summer season. Filipinos are known to be Family-oriented and hospitable. Eating Ice Cream becomes their form of bonding moment
Appropriateness with the Climate Addresses the Filipino Tradition Table 5b: Key Success Factors of Ice Cream Industry in the Philippines
II. Competitive Analysis A. Competitive Positioning This section juxtaposes product features and prices Presto and its major competitors: Selecta, Magnolia, Arce Dairy, and Coney Island.
Competitors Product/Features Price Range Presto has two Ice Cream Categories: Prices are Frozen Novelties and Packaged Ice Cream. usually Selecta and Presto had similar Packaged Ice Creams. Many of 10%-15% Selectas Packaged Ice Cream are Filipino flavors (e.g. Ube higher Macapuno, Langkas, Pastillas de Leche, and the like). Presto had than Presto these flavors as well. In addition, Presto also had Packaged Ice Creams in basic flavors (e.g. Chocolate, Mango, Ube and many more). Presto and Magnolia competed head-to-head in both categories of Ice 10% higher Cream. Frozen Novelties of Magnolia that competed against the than Presto Presto include the following: Pinipig, Drumstick, Popsicle, etc. Arce Dairy and Presto competed in the Packaged Ice Cream category. 5% higher Arce Dairys selling point is their use of Carabao Milk. than Presto Coney Island and Presto competed widely in the Frozen Novelties 50% higher category. Coney Island had more creative novelty segments. It also than Presto had a Foreign-sounding name despite being a local brand taking advantage of Colonial Mentality. Table 6: Competitors and their Comparative Features and Prices
Selecta
Magnolia
Arce Dairy Coney Island
B. Market Shares/ Sales Volume / Sales and Profit Trends Source: Euromonitor 1. Market Shares This section shows the market shares of the competing companies and brands in the Ice Cream Industry today.
Company Unilever RFM Ice Cream Inc Nestl Philippines Inc San Miguel Pure Foods Co Inc Hagen-Dazs Distribution & Marketing Philippines Inc Arcefoods Corp Food People Inc, The BTIC Inc Prosperity Foods Selecta Walls Inc Universal Robina Corp Others Total 2005 40.93 4.86 3.48 2.92 1.62 1.57 0.24 40.45 3.93 100.00 2006 39.04 6.47 3.61 2.92 1.62 1.57 0.24 40.81 3.72 100.00 Year 2007 41.11 37.50 7.29 3.81 3.16 1.86 1.55 0.16 3.57 100.00 2008 42.21 35.51 8.13 3.89 3.13 2.03 1.53 0.16 3.39 100.00 2009 42.66 35.16 8.31 3.73 3.12 2.12 1.56 0.08 3.26 100.00
Table 7: Market Shares of Competing Ice Cream Companies (2005 2009) Brand Selecta Nestl Magnolia Cornetto Hagen-Dazs Company Year 2007 2008 37.08 37.75 32.09 30.54 7.29 8.13 3.08 3.55 3.81 3.89
2006
Unilever RFM Ice Cream Inc 33.67 Nestl Philippines Inc 6.47 San Miguel Pure Foods Co Inc Unilever RFM Ice Cream Inc 3.61 Hagen-Dazs Distribution & Marketing Philippines Inc 2.92 3.16 3.13 Arce Arcefoods Corp 1.62 1.86 2.03 Fruits in Ice Cream Food People Inc, The 1.57 1.55 1.53 BTIC BTIC Inc 0.85 0.97 1.15 Drumstick Nestl Philippines Inc 0.76 0.90 1.12 Nestl Cup Nestl Philippines Inc 0.93 0.86 0.81 Twin Popsies Nestl Philippines Inc 0.36 0.39 0.40 Pinipig Crunch Nestl Philippines Inc 0.36 0.36 0.36 Jelly Tongue Nestl Philippines Inc 0.98 0.94 0.27 Mega Nestl Philippines Inc 0.24 0.16 0.16 El Favorito Prosperity Foods 0.36 0.18 Non Stop Nestl Philippines Inc 0.01 0.01 Maxibon Nestl Philippines Inc 36.80 Selecta Selecta Wall's Inc 3.04 Cornetto Selecta Wall's Inc Merienda Time Nestl Philippines Inc Mimi Bugz Nestl Philippines Inc Presto Universal Robina Corp 5.46 5.32 5.16 Others Others Total Total 100.00 100.00 100.00 Table 8: Market Shares of Competing Ice Cream Brands (2006 2009) Company Year 2007 39.97 43.57 4.18
2009 38.01 30.31 8.31 3.74 3.73 3.12 2.12 1.56 1.20 1.13 0.79 0.42 0.35 0.09 0.08 5.02 100.00
2008 42.67 Unilever RFM Ice Cream Inc 42.76 43.20 40.62 Nestl Philippines Inc 3.69 3.99 4.44 Hagen-Dazs Distribution & Marketing Philippines Inc 41.15 40.72 Selecta Wall's Inc 12.39 12.10 12.27 12.27 Others Total 100.00 100.00 100.00 100.00 Table 9: Impulse Ice Cream Company Shares (2005 2009) Brand Cornetto Selecta Drumstick Nestl Cup Twin Popsies Nestl Hagen-Dazs Pinipig Crunch Jelly Tongue Company Unilever RFM Ice Cream Inc Unilever RFM Ice Cream Inc Nestl Philippines Inc Nestl Philippines Inc Nestl Philippines Inc Nestl Philippines Inc Hagen-Dazs Distribution & Marketing Philippines Inc Nestl Philippines Inc Nestl Philippines Inc Year 2007 2008 22.08 25.78 11.10 10.26 6.95 8.35 6.44 8.16 6.16 5.87 4.81 4.52 4.18 4.44 2.77 2.60 2.94 2.61
2005
2006
2009 43.83 39.75 3.93 12.49 100.00
2006 6.01 5.38 6.61 5.14 3.99 2.53 2.57
2009 27.50 9.69 8.84 8.32 5.83 4.14 3.93 3.08 2.59
Mega Non Stop Maxibon Cornetto Selecta Merienda Time Mimi Bugz Others Total
6.96 6.76 1.96 Nestl Philippines Inc 2.53 1.29 Nestl Philippines Inc 0.06 0.06 Nestl Philippines Inc 21.52 Selecta Wall's Inc 12.27 Selecta Wall's Inc Nestl Philippines Inc Nestl Philippines Inc 24.43 24.79 25.13 Others Total 100.00 100.00 100.00 Table 10: Impulse Ice Cream Brand Shares (2006 2009) Year 2007 43.03 38.04 8.82 3.82 2.26 2.02
0.65 25.43 100.00
2008 43.93 Unilever RFM Ice Cream Inc 42.26 39.93 36.17 Nestl Philippines Inc 5.88 7.84 9.83 San Miguel Pure Foods Co Inc 3.54 3.54 3.79 Arcefoods Corp 1.96 1.96 2.46 Food People Inc, The 1.91 1.92 2.01 Hagen-Dazs Distribution & Marketing Philippines Inc 0.29 0.29 0.20 0.20 Prosperity Foods 41.95 42.50 Selecta Wall's Inc Universal Robina Corp 2.22 2.01 1.82 1.62 Others Total 100.00 100.00 100.00 100.00 Table 11: Take-home Ice Cream Company Shares (2005 2009) Brand Selecta Nestl Magnolia Arce Fruits in Ice Cream Hagen-Dazs El Favorito Selecta Presto Others Total Company Unilever RFM Ice Cream Inc Nestl Philippines Inc San Miguel Pure Foods Co Inc Arcefoods Corp Food People Inc, The Year 2007 2008 43.03 43.93 38.04 36.17 8.82 9.83 3.82 3.79 2.26 2.46
Company
2005
2006
2009 44.35 35.96 10.05 3.77 2.56 1.78 0.10 1.43 100.00
2006 39.93 7.84 3.54 1.96
2009 44.35 35.96 10.05 3.77 2.56 1.78 0.10 1.43 100.00
1.92 2.02 2.01 Hagen-Dazs Distribution & Marketing Philippines Inc 0.29 0.20 0.20 Prosperity Foods 42.50 Selecta Wall's Inc Universal Robina Corp 2.01 1.82 1.62 Others Total 100.00 100.00 100.00 Table 12: Take-home Ice Cream Brand Shares (2006 2009)
Brand Share 40% Magnolia 30% Selecta 20% Presto 7% Coney Island 3% Arce Dairy Table 13: Market Share of Packaged Ice Cream (1995 1996) Estimated Values Only
Figure 6: Market Share of Packaged Ice Cream (1995 1996)

Estimated Values Only Brand Share 50% Magnolia 35% Selecta 10% Presto 2% Coney Island 3% Arce Dairy Table 14: Market Share of Frozen Novelties (1995 1996) Estimated Values Only
Figure 7: Market Share of Frozen Novelties (1995 1996) Estimated Values Only
2. Sales Volume/Sales Profits and Trends This section shows the sales volume of the Ice Cream Industry in the Philippines by category. It also shows the sales of Ice Cream per according to its distribution channel (groceries, supermarkets, and the like).
Year 2005 2006 2007 2008 632.91 637.98 641.17 646.30 Frozen Yoghurt 81.69 90.68 101.10 110.81 Ice Cream Parlours 6,072.92 6,124.06 6,203.02 6,270.62 Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream 3,515.10 3,543.22 3,596.37 3,643.12 - Single Portion Dairy Ice Cream 2,557.82 2,580.84 2,606.65 2,627.50 - Single Portion Water Ice Cream Retail Artisanal Ice Cream 49,192.72 50,003.87 50,966.85 52,041.80 Take-Home Ice Cream 48,501.38 49,302.17 50,272.16 51,367.95 - Take-Home Dairy Ice Cream 48,444.46 49,268.02 50,253.38 51,358.95 -- Bulk Ice Cream 56.92 34.15 18.78 9.00 -- Ice Cream Desserts 691.34 701.71 694.69 673.85 - Take-Home Water Ice Cream Ice Cream 55,980.24 56,856.59 57,912.14 59,069.53 Table 15: Sales of Ice Cream by Category: Volume (2005 2010) Category in 000 liters Distribution Format 2009 649.53 120.67 6,320.19 3,679.55 2,640.64 53,037.02 52,390.13 52,386.13 4.00 646.89 60,127.42 2010 654.72 130.81 6,364.43 3,705.31 2,659.12 54,595.27 53,961.31 53,957.71 3.60 633.96 61,745.24
Year 2005 2006 2007 2008 2009 2010 100.00 100.00 100.00 100.00 100.00 100.00 Store-Based Retailing 100.00 100.00 100.00 100.00 100.00 100.00 Grocery Retailers 68.74 68.66 68.16 69.13 69.78 70.11 Supermarkets/Hypermarkets Discounters 25.77 25.75 26.12 25.12 24.29 23.90 Small Grocery Retailers 9.59 9.38 8.97 8.38 8.13 7.96 Convenience Stores 15.46 15.58 16.37 15.91 15.47 15.26 Independent Small Grocers 0.71 0.79 0.78 0.84 0.69 0.68 Forecourt Retailers 5.49 5.59 5.72 5.75 5.93 5.99 Other Grocery Retailers Non-Grocery Retailers Health and Beauty Retailers Other Non-Grocery Retailers Non-Store Retailing Vending Homeshopping Internet Retailing Direct Selling Total 100.00 100.00 100.00 100.00 100.00 100.00 Table 16: Sales of Ice Cream by Distribution Format Percentage (2005 2010)
C. Marketing Strategies (for each of the 4 Ps) The following table shows the Marketing Strategies used by Presto according to the Marketing Mix (the 4 Ps): Product, Price, Promotion, and Place:
Marketing Mix Product Marketing Strategy Product Differentiation: This strategy was widely used in the Frozen Novelties category. Presto differenced itself from competitors who are offering the same type of Ice Cream. Unique products included Heaven in a Bar (wherein Ice Cream is used as a filling) and the Funwich (which is a sandwich filled with Ice Cream). Lower Prices: Presto offered Ice Cream products at lower prices than its competitors. Competitors prices are usually 5%-10% higher than Prestos. Price-off Strategy: Discounts were implemented during special seasons. (Buy 5, Get 1) SEC Classes (mostly on the lower sector): The Ice Cream products of Presto are offered to SEC Classes B, C, D, and E (i.e. most of the population). Table 17: Marketing Strategies (for each of the 4 Ps)
Price
Promotion Place
D. Strengths and Weaknesses of the Competition (in terms of 4 Ps) Source: Euromonitor The following table lists down all the Strengths and Weaknesses of the current competition according to the Marketing Mix:
Marketing Mix Product Strengths Selecta Gold Selecta has launched its gold series premium, limited edition Ice Cream designed by the top chefs in the Philippines. The series is an improvement in quality compared to the basic flavors and an improvement in price compared to the more expensive brands such as Hagen-Dazs. Selecta 3 in 1 + 1 It has also launched its Selecta 3 in 1 + 1, where 4 flavors of Ice Cream are placed in one tub. This innovation gives the consumers more value (in terms of variety) for their money. Selecta, Nestle and Magnolia The multinationals have enough money to spend on research and development of their products producing new flavors such as Ube, Cheese, Langka, etc. and new products. Korean Ice Cream There has been an influx of Korean novelty treats. This is a big (future) threat to Prestos novelty line in addition to Nestle, Cornetto and Selecta. Weaknesses Dirty Ice Cream Dirty Ice Creams are not as tasty and do not have as much variety. Otherwise, apart from special flavors, Ice Creams in general taste alike.
Price
Selecta The two pet projects of Selecta are aimed towards improving sales via market penetration via affordability to as many different SEC as possible. Dirty Ice Cream Very inexpensive All Prices are expected to remain stable.
Hagen-Dazs A brand of Nestle which sells premium Ice Cream at a very high price. This weakness in terms of price was what Selecta targeted when it came up with its Gold series.
Promotion
Selecta, Nestle and Magnolia Again, the dominant multinationals have the funds to heavily promote their products via advertisements in television, print, etc.: Selecta Gold series - Philippine Top Chefs Rolando Laudico, Sau Del Rosario, Jay Gamboa and Ariel Manuel Nestle - Megastar Sharon Cuneta Magnolia, World Renowned Boxer Manny Pacquiao Dirty Ice Cream, Nestle and Selecta Started by Nestle and copied by Selecta are the peddling vendors which significantly improve accessibility bringing their products almost to their customers instead of waiting for the customers to come to them. In addition, the popular multinational brands are available in almost all major convenience and grocery stores.
There are no weaknesses in this section.
Place
Other Local Ice Cream Many Local Ice Cream brands are limited to and concentrated in the Metro Manila Area.
The big players are expected to make a move towards other regions via peddling vendors. Table 18: Strengths and Weaknesses of the Competition (in terms of 4 Ps)
III. Company Background A. Company Profile Universal Robina Corporation (URC) is a Philippine company founded in 1954. It is a subsidiary of Philippine conglomerate, JG Summit Holdings. With its expansion, the company is now involved in various food businesses which can be categorized in three segments: 1) branded consumer foods group manufactures and distributes a range of snack foods, instant coffee products, instant noodles, chocolates, soft and hard candies, biscuits, tomato-based products, and ready-to-drink beverages; 2) agro-industrial products group deals with hog and poultry farming, the manufacture and distribution of animal feeds, glucose and soya products, and the production and distribution of animal health products and 3) commodity food products focuses on sugar and refining, and flour milling and pasta manufacturing. 1. Company Mission URC is the customers first choice in fun snacks. We are the dominant market leader in the Philippine snack foods industry. Our leading brands offer consumers the best in enjoyment, quality, value and convenience. 2. Company Vision Delighting the consumers with trusted brands of exceptional quality and value making lives a truly fun experience. B. Current Position of the Company/Brand in the Market Source: Euromonitor Universal Robina Corporation (URC) is a big player in many industries. The following figures tell us the current position of each URC field/industry in the market:
Product Category Percentage Ranking 5.9% 3rd Packaged Food 15.3% 2nd Pouch Instant Noodles 6.0% 6th Dried Pasta 43.9% 1st Chips/Crisps 40.7% 1st Extruded Snacks 66.7% 1st Tortilla/Corn Chips 7.5% 6th Chocolate Confectionery 37.5% 1st Sugar Confectionery Table 19: Current Positions of the Brands of Universal Robina Corporation (URC)
C. Company Strengths and Weaknesses Analysis

Marketing Mix Product Strengths Frozen Novelties. Presto implemented the Inventory Management to maintain the quality of their Ice Cream products. Affordable prices Weaknesses The Research and Development Team did not develop, create nor present new Ice Cream products because of insufficient funds. Problems with the supplier causes changes in the prices (and quality) of products, affecting the COGS, the profit margin and the prices. Presto did not sufficiently advertise its products. There is no saturation.
Price
Promotion
None
Place
Strong distribution channel.
Sales Training Support for the Salesmen. Extensive networks than Magnolia (Presto entered the excluded areas such as Isabela, Cagayan, and Mindanao which Magnolia avoids.) Table 20: Company Strengths and Weaknesses Analysis
D. Brand Consumer Profile 1. Identified Market Segments and Market Needs Being Addressed Presto Tivoli Ice Creams targeted segments can be divided into two types: the consumers and the entrepreneurs. The consumers, or end users, can be divided based on their Social Economic Class (which include B, C, D and E) and other consumer groups (students and children). The entrepreneurs are the dealers or the distributors of the products; they are the intermediaries between the company and the final consumer.
Targeted Segment Class B Customer Needs People of prestige and luxury who value their image. Image is everything. People who want affordable, but delicious Ice Cream. Ice Cream is luxury. I am rich and successful enough to eat it. Corresponding Features/Benefits Presto Tivoli had introduced Heaven in a Bar (HIB) to counter the Companys image as the Ice Cream of the masses. Value for money was the main selling point of the company. Its product line of the frozen novelties embodied the value of affordability.
Class C, D, and E
Students
Primary consumers of Presto Frozen Novelties who also want affordable quality. Im cool and grown up!
The novelty factor offering new products that the competitors do not offer- keep their novelty line interesting. Frozen Novelties Category can be bought with their own meager baon or allowance instead of directly relying on their parents. Novelty goods add fun to the experience of eating Ice Cream. Ice Cream is sweet and tasty.
Children, in general
Also primary consumers Sweet tooths.
Table 21: Consumers Targeted Segment Entrepreneurs/ Dealers/ Sari-Sari Stores Customer Need Profit: How fast these products can be turned into money? Corresponding Feature/Benefit High consumer demand results in high inventory turnover. Presto products earn cash quickly.
Table 22: Entrepreneurs
2. Buying Patterns and Usage Habits The following table shows the consumers buying patterns and usage habits:
Market Segments Geographic Characteristics Most of the consumers of the Ice Cream Products come from Manila. Popularity of Presto Ice Cream in the different areas in the Philippines can be ranked as follows: Metro Manila, North Luzon, Cebu and Bacolod (Visayas), Davao Apart from those who are on a diet or are health conscious (more often than not, women), most people eat Ice Cream. Children, however, are the primary consumers. Target segments (in terms of SEC) included are the C, D, E classes. Ice Cream is eaten during occasions such as Christmas, Fiesta, Summer, Birthdays. when consumers have extra money in their pockets. when the consumers want to reward themselves. Casual eating is very hard to influence. Table 23: Buying Patterns and Usage Habits
Demographic
Psychographic Behavioral
E. Present Marketing Strategy 1. Segmentation, Targeting and Positioning Segmentation and Targeting Source: URC Website Based from the commercials and advertisements shown by URC today, its target market consists of children, teenagers, and Families. Children are shown in commercials that advertise candies, chocolates and chips. Teenagers and young adults are featured in the drinks commercials of URC (C2). Finally, Families are integrated into the commercials of the noodle products (Payless). In terms of SEC, the targeted segments are the lower classes. The products of URC (based from observations in the grocery stores and supermarkets) are affordable. They are designed for the masa. Positioning Source: URC Website Universal Robina Corporation is a leader in convenience foods and beverages in the Philippines. It has paved the way for the development of the Philippine food industry by being one of the first Philippine multinational companies. Through its innovation in food products, wide distribution and high-impact marketing, URC aims to provide quality products in affordable prices. Current Value Proposition Source: URC Website Universal Robina Corporation is committed to bringing Filipino taste and culture worldwide, in line with JG Summits vision to make life better, not only for Filipinos, but for the rest of the world.
2. Marketing Mix (Four Ps)

Marketing Mix Product Description and Advantage URC offers a wide variety of food-related businesses that are organized in three major business segments namely Branded Consumer Foods, Agro-Industrial Products, and Commodity Food Products: A. Branded Consumer Foods Branded Consumer Foods is the largest segment, which also includes packaging division, accounting to about 7.1% of revenues. In this segment, all the manufacture, distribution, sales and marketing activities for the Companys consumer products are accomplished. This includes various snacks, chocolate, candy, biscuit, bakery, beverage, noodles and pasta and tomato-based products. B. Agro-Industrial Products In the category of Agro-Industrial Products, URC has further subdivided its products into: 1) hog and poultry farming (Robina Farms); 2) manufacture and distribution of animal feeds; 3) glucose and soya products (Universal Corn Products); and 4) production and distribution of animal health products (Robichem). C. Commodity Food Products The commodity food products involve sugar milling and refining through its subsidiaries and flour milling through URC Flour division. The snacks section of the URC focuses on variety. They do this by constant innovation. In terms of SEC, the targeted segments are the lower classes. The products of URC (based from observations in the grocery stores and supermarkets) are affordable. They are designed for the masa. Through constant product innovation, extensive marketing and experienced management, URC has concretized and maintained a strong brand portfolio perceived in the market. URC has allocated a substantial amount to advertising and promotion campaigns and market research, both in the Philippines and in its overseas markets. These expenses are used for the maintenance or improvement of a brands market share or for the launching of a new product. URC considers its developed distribution channel and sales network as part of their competitive advantages. URC sells its branded consumer foods mainly to supermarkets, top wholesalers, and large convenience stores. Its sub-distributors consist of large scale trading companies and independent business managers, which sell its products to small retailers and downline markets. To strengthen URCs sales in sari-sari stores and groceries, the company created the Grand Slam Program, an innovative distribution scheme for downmarket accounts, which made their products dominate over their competitors. In 2000, URC expanded to neighboring Asian countries like China, Thailand, Singapore, Indonesia, Malaysia, and Vietnam. The Asian operations contributed to about 22.7% of the Companys revenue for the fiscal year ended September 30, 2005 Table 24: Present Marketing Strategy According to Marketing Mix (Four Ps) Reliving Good Times with Presto: Resurrection of Presto Tivoli Ice Cream | 30
Price
Promotion
Place
3. Competitive Strategies Employed These are the Major Marketing Activities performed by Presto before it shut down on 2002: a. The company was exploring Complementary Distributor/Dealer Accounts. This activity is done in secluded areas such as Sapang Palay in Bulacan, Isabela and the like. A dealer will be assigned to handle the Ice Cream products and distributes them to smaller sellers of the product. They will also handle the freezers of the Ice Cream Products. A parent-child system. b. Presto is known to cater to the lower SECs, but they have tried to enter the higher SEC such as B and C by offering products that are priced just right. These products are offered to the higher SEC to prove Presto Ice Creams capacity to cater to the higher SECs as well. The introduction of Heaven in a Bar (worth Php 20.00), which is part of the Frozen Novelties Category, is an example of that step/activity. c. Discounts are offered during seasons where Ice Cream is not in demand in the market. One great example of which is during Rainy Seasons, wherein Presto presented Rainy Day Discounts to dealers or distributors of the Ice Cream. d. Likewise, Cash Discounts are also implemented for those dealers/distributors that pay early. F. Reasons for the Failed Brand Presto did not survive mainly because of the cut-throat nature of the industry. The following are the in-depth reasons Presto Ice Cream failed as a brand: Entry of Multi-national Ice Cream Companies such as Magnolia and Nestle Multi-national brands are considered better than local brands because of Colonial Mentality. The introduction of foreign brands and big players which offered similar products at slightly higher prices killed the smaller, local brand Presto Tivoli. In Supermarkets, these Multi-national companies have bought the freezer spaces in supermarkets and grocery stores. Because of such situation, Presto lacked space for its products that should have been competing with the products offered by these Multi-national Companies. Product or Service neither new nor different: Low Profiling of Research and Development Department (R&D) The Research and Development Department lacked funding. They were unable to develop new offerings to the variety-seeking market.
Choosing the Wrong Middlemen on Supplier: Higher Overhead Cost Overhead cost is now higher because of unreliable suppliers. Furthermore, the cost of getting or acquiring raw materials is varied due to changing suppliers and general price fluctuations.
Not Doing Market Research, Doing Poor Market Research, or Ignoring its Findings/Ignoring your Companys Resources and Objective: Stacking Up of Marketing and Advertising Departments The veterans or practitioners working in the said departments resigned. Moreover, there were no suitable replacements in those departments.
Poor Support from your Middlemen/Choosing the Wrong Middlemen on Supplier: No Dealer Support Dealers no longer wanted to sell Presto as it no longer as popular: Why should I handle Presto Ice Cream if it is not been on demand by consumers? A dispute over electricity bills came up between Presto and the dealers.
IV.
Identified Market Opportunity for Re-launching the Failed Brand A. Differentiation and Positioning Presto Ice Cream, known for its affordability and quality, will offer new and innovative ice cream products to the market. In collaboration with its mother company, URC, Presto Ice Cream will be positioned as a Filipino ice cream which Filipinos can relate to. B. Opportunities Based on the analysis, the group has identified the opportunities as follows: 1. Strengthening Proudly-Filipino Made Ice Cream Filipinos are fond of patronizing imported products despite their higher prices. This is due to colonial mentality and it is one of the marketing reasons for brand failure. Instead of competing with international brands and playing by their rules (portraying ice cream as a luxury, reward good, which parallels our perception of multinational brands and imported products) Presto can, instead, differentiate itself from them and from foreign-sounding local brands (such as Acre Dairy) by highlighting its affordability. Now, a period of rising nationalist sentiments, is an opportune moment Presto can make use of to try reverse colonial mentality; if the campaign succeeds, consumers will choose presto precisely because it is Filipino and not despite of. Using brand imaging to give Presto a Filipino image that will bring it close to the Filipino heart makes use of one of the fundamentals of marketing the use of familiarity to endear the brand to the market. In offering Filipinos proudly-Pinoy ice cream products however, it is important not to compromise quality so as to build trust in the brand. If or when nationality goes down, Presto will have built up a sizeable loyal market base. 2. Higher Investment on the Research and Development Team (R&D): Filipinos can exhibit variety-seeking behaviors; there is thus a need for constant innovation continually producing new products and new varieties of products for the target market. An increase in funding for the R&D team is a must. 3. Strengthening the Marketing and Advertising Departments: Market research is vital as it allows the company to know the markets likes and dislikes, behaviors, spending patterns, etc knowledge which will ground and improve future marketing decisions by providing more accurate predictions of consumer demand. The two departments determine and pass on the brands value proposition to the consumers in an attempt to inspire attention, interest, desire and
action from the targeted segment. The success/failure of the product as a brand depends on them. It is thus important to cultivate the companys marketing and advertising departments: To keep veteran practitioners from leaving, the company can offer competitive compensation and benefits; more important, however, is the need to improve overall company-employee relations. 4. Building Back the Trust of the Dealers and Middlemen of Presto: In addition advertisements and promotions, dealers also introduce Presto to its target market by improving availability which is necessary in building trust and patronage. To market the products to dealers and middlemen, presto needs to answer a question from the previous part: Why should I (the dealer) handle Presto Ice Cream if it is not in demand?. Once Consumer demand goes up because of the above previous moves, this will no longer be a problem. C. BCG (Boston Consulting Group) Growth Share Matrix Question Mark is the position in the Growth Share Matrix where Presto will be. It will have low market share (compared to dominant brands) in a high growth rate market (the ice cream industry is growing). D. SWOT Analysis Presto was a popular brand from the 80s until the entry of multi-national brands. To rebuild its previously strong image and popularity, it is necessary to have an in-depth discussion of the companys predicted strengths, weaknesses, opportunities, and threats (SWOT): Strengths Frozen Novelties Presto had a greater market share in the frozen novelties category than it had in the other category of ice cream -packaged ice cream (ice cream sold in pints, quartz, gallons, etc.). Its popular frozen novelties series (i.e. Funwich, and Heaven in a Bar, etc.) should thus be revived and improved. Affordable Prices Affordability will be maintained. In addition to only targeting the lower SECs such as the C, D, and E markets as a luxury good, however, it can possibly also improve market size and penetration in the higher SECs by using affordability to market its ice cream as an everyday treat -no longer a luxury. Weaknesses Packaged Ice Cream -Prestos packaged ice cream arent as strong as the other brands because of lack marketing budget and creativity. It only used the flavors
to name its products -Chocolate, Ube, etc. Though not necessarily a reason for brand failure, it would be best to address this problem as well: by concentrating on its frozen novelties category, by creative marketing, by creation of new, differentiated flavors, etc. Budget Without a doubt, Presto will have a smaller budget allocated to it than the other brands both competing ice cream brands and possibly its more successful sister brands. Opportunities Economic Condition Poor economic condition create a trend towards more affordable commodities used in daily living. can be seen; a lot of brands use value for money as its value proposition, i.e. Unilevers Vaseline 4 in 1 a shampoo which only costs Php 5.00. Despite the small difference in prices, Prestos reputation as an affordable brand can be a big boon. Proudly Filipino Made Ice Cream In an attempt to reverse colonial mentality, Presto ice cream, taking advantage of its name and origins, can be featured as a proudly Pinoy product. Its Filipino image will hopefully bring it close to the Filipino heart. By riding the bandwagon of rising nationalism in todays political climate, this strategy can hopefully turn a former weakness into a strength: Filipinos will patronize Presto precisely because of and not despite of its status as a local brand. Strengthened R&D Team and Marketing and Advertising Departments Innovations from the three strengthened departments will possibly bring opportunities. An innovations potential added contribution to the success of the product can be immense. Cooperation with Middlemen By improving relations with middlemen, we can gain them as partners in not only distributing, but promoting our products and our brand. We can use them to compensate for the Multinationals bigger budgets for advertising. Reputation of Sister Brands Presto as a sub-brand of URC is backed by the reputation of its sister brands. Jack and Jill, C2, etc. are well-known familiar brands among the Filipinos. Concentration of Market in the Greater Manila Area (source: just-food, Euromonitor) -Sixty Percent of Ice Cream Sales Volume is from Greater Manila Area (2004-2008). Threats Other Ice Cream Brands The Prestos greatest threat is the cut-throat competition among ice cream brands, the market of which is dominated by
multi-national brands such as Nestle and Selecta (just-food, Euromonitor). Creative approaches to advertising and marketing of the products become a must because traditional and direct methods can be easily countered. Less Expensive Sweets and Desserts -Non-dirty ice cream is perceived as a luxury commodity unlike other sweets and desserts which can be bought for as little as Php 1.00. Propagation of Smaller Companies offering Lower-priced Branded Products (source: just-food, Euromonitor) Since Presto Ice Cream offers affordable products, the presence of smaller companies might be a threat to the sales of Presto (who may have a little high price than smaller brands; high price may be a result of the quality of raw materials used in the production).
Strengths Weaknesses Frozen Novelties Packaged Ice Cream Affordable Prices Budget Opportunities Threats Economic Condition Other Ice Cream Brands Proudly Filipino Made Ice Cream Less Expensive Sweets and Desserts Strengthened R&D Team and Proliferation of Smaller Companies Marketing and Advertising offering Lower-priced Branded Departments Products Cooperation with Middlemen Reputation of Sister Brands Concentration of Market in the Greater Manila Area Table 25: SWOT Analysis Summary
In summary, Presto will offer: Affordability and quality to the lower SECs (C, D, and E). A Filipino ice cream brand, which Filipinos can relate to. Unique flavors and forms for a variety-seeking market and audience. Availability in key cities and towns in the Greater Manila Area
E. Identified Opportunities and Growth Strategy The identified opportunities translate to Product Development growth strategy as follows: New Brand Image for Presto Ice Cream Presto will incorporate some native flavors from the different regions in the country. The proposed products will thus satisfy the needs of a variety-seeking market. Local flavors from different places across the country will be known nationally, i.e. Durian Ice Cream from Davao, Pineapple Ice Cream from Tagaytay, etc.
Aside from implementing a nationalist ice cream campaign, Presto will formulate new ice cream products made from healthy ingredients and other URC products. The products to be developed will be divided into two lines that cater to children (aged 7-12 years old) and teens (aged 13-20 years old) respectively. Most frozen novelties (formulated with high nutritional value) will cater to children; products will focus on innovation, creativity and familiarity (use of other URC products and flavors) to create a fun experience for the young consumer. Packaged ice cream and some frozen novelties will cater to teenagers, products made will focus on the health benefits often sought by consumers. V. Proposed Target Market A. Demographics The group proposes to build on URCs reputation by mainly targeting the current market of the more successful products of its snacks and beverages section. 1. Age: Children and Teenagers In addition being to URCs snacks and beverages target consumers, they are also ice creams targeted segment. This frozen treat in all its forms is a food for the young and the young at heart. Ads will feature teenagers with their barkada and/or children with their parents. 2. Income: Those in the lower SECs: Classes C and D Presto Ice Creams affordability will naturally attract the lower SECs. It will easier to target them than to target the upper SEC market which has been saturated by brands such as Haagen-Daz and Selecta Gold Series. B. Psychographic Ice cream is traditionally a food for the young and the young at heart. Presto will thus target consumers who look for adventure, who have a sense of the curiosity and wonder. Its innovation and creativity of Prestos products will target this markets characteristic need. Another target market in terms of personality are the outgoing, sociable people. Gatherings often attended by these people complement Prestos identity as a familiar, but exciting brand.
C. Behavioral 1. Occasion Segmentation Presto Ice Cream will be a part of everyday life. It will not be limited to summers or celebrations. This constant purchase and consumption is, again, possible because of its affordability. For occasion segmentation therefore, we can divide the market according to those who buy only during special occasions, those who buy on summer days, and those who buy on a regular basis. If possible, we can and should convert the former two into the last kind. 2. Benefit Segmentation Two lines of ice cream products will separately serve the health conscious and the sweet tooths. An ice cream line based on different local fruits will cater to the health conscious while another line based on URCs sweets products (biscuits, chocolates, etc.) will cater to the latter. 3. User Status Aside from new potential users, Presto can also target its former market. In addition to already having established familiarity, nostalgia can be an added value for the veteran consumer. As stated in no.1, customers should be convinced to consume more of the product to be constant consumers. We can divide the market according to the frequency of purchase. Under this, we can divide the market into those who buy for personal consumption, for group consumption (family or barkada outings), and for reselling (entrepreneurs, intermediaries, etc). D. Geographic Presto will be distributed over the expanse of Greater Manila Area (GMA) which constitutes 60% of the Ice Cream Sales. Only after a few years of a successful business, will expansion in other areas proceed particularly in the nearby regions. Provinces are relatively unsaturated. It could be best to start the business there but overhead and transportation costs will greatly reduce Prestos profit margin. The GMA has a dense population, a big portion of which consists of children and teenagers whose allowancesare enough to purchase affordable Presto products.
VI.
Marketing Objectives A. Overall Marketing Objectives To resurrect the Presto brand, the group has the following objectives: To continue providing the current market (SECs C, D and E) with affordable, and premium ice cream products To present new flavors and forms of ice cream which can satisfy even the health-conscious and food connoisseurs To relate Presto Ice Cream to other URC products such as cookies, chocolates, cupcakes, etc.
B. Specific Objectives and Targets (3 Years) 1. Market Shares

Years 1999 Actual 2000 2001 2011 Forecasted 2012 Percentage 12% 8% 5% 2% 3%
2013 4% Table 26: Market Shares (Actual and Forecasted)
Figure 8: Market Shares (Actual and Forecasted)
Prestos industry market share in the GMA decreased in the years 1999, 2000 and 2001 because of increased competition due to the entryof large key players such as Selecta and Magnolia. Thisled to the companys closure bythe 3rd Quarter of 2002. The forecasted 2011 market share is about 2%. Though not the industry lead, Presto will have secured a position in the market as an alternative to the traditional ice cream brands currently available in the market. Finally, Presto is furcated to have an increase of 1% of market share per year for the years 2012 and 2013. Growth is slow but stable as Presto builds its reputation. 2. Sales (Volume and Value) a. Sales Volume
Years 1999 Actual 2000 2001 2011 Forecasted 2012 Sales Volume in Gallons 415,000.00 355,000.00 300,000.00 194,174.98 296,091.34
2013 399,566.67 Table 27: Sales Volume in Gallons (Actual and Forecasted) Computation Forecasted Take Home (Packaged Ice Cream) Impulse (Novelties) Total x1000 liters to Gallons (*0.26) GMA Area (Ice Cream Industry) 60% market share (2004-2008) Forecasted Presto Market Share 2% 3% 4% Total Forecasted Presto Sales Volume 194,174.98 296,091.34 399,566.67 (Source: Forecasted Sales Volume from Euromonitor, please see appendix) Table 28: Sales Volume in Gallons Computation (Forecast) 2011 55,832.95 6,402.62 62,235.57 62,235,570.00 16,181,248.20 9,708,748.92 2012 56,832.75 6,434.63 63,267.38 63,267,380.00 16,449,518.80 9,869,711.28 2013 57,572.75 6,460.37 64,033.12 64,033,120.00 16,648,611.20 9,989,166.72
Figure 9: Sales Volume in Gallons (Actual and Forecasted)
b. Sales Value
Years 1999 Actual 2000 2001 2011 Forecasted 2012 Sales Value in PhP 160,000,000.00 140,000,000.00 120,000,000.00 101,683,200.00 154,347,660.00
2013 208,890,720.00 Table 29: Sales Value in Php (Actual and Forecasted) Computation Forecasted Take Home (Packaged Ice Cream) Impulse (Novelties) Total x Php 1,000,000 GMA Area (Ice Cream Industry) 60% market share (2004-2008) Forecasted Presto Market Share 2% 3% Total Forecasted Presto Sales Value 101,683,200.00 154,347,660.00 (Source: Forecasted Sales Value from Euromonitor, please see appendix) Table 30: Sales Value in Php Computation (Forecasted) 4% 208,890,720.00 2011 7,311.76 1,161.84 8,473.60 8,473,600,000.00 5,084,160,000.00 2012 7,411.49 1,163.38 8,574.87 8,574,870,000.00 5,144,922,000.00 2013 7,529.17 1,174.61 8,703.78 8,703,780,000.00 5,222,268,000.00
Figure 10: Sales Value in Php (Actual and Forecasted)
From 1999-2001, Sales Volume and Sales Value took a plunge, again due in part to increased competition. It reached its final year in 2002 after a continued drop in sales. In years 2011-2013, Presto is forecasted to slowly increase its Sales Volume and Value in Greater Manila Area. Possibility of an expansion to surrounding areas will depend on Prestos performance during these years. Forecasted Sales Volume and Value of Presto Ice Cream in GMA are generated using Euromonitors forecast for the years 2010-2015. 60% of Ice cream sales are generated in the GMA, this value was used as a factor to get the percentage of GMAs ice cream over the national ice cream industry. The two Ice Cream categories: Take Home and Impulse were used in the computation since there are the two traditional ice cream categories which Presto will concentrate on during its comeback.
3.
Profits/Net Income
Years 1999 Actual 2000 2001 2011 Forecasted 2012 Profits/Net Income -960,000.00 -1,200,000.00 -1,440,000.00 -22,104,212.56 14,175,005.76
2013 44,562,893.78 Table 31: Profits/Net Income (Actual and Forecasted)
Figure 11: Profits/Net Income (Actual and Forecasted)
In its last three years of operation, Presto suffered net losses. In addition to increased competition, net loss is also due to the higher costs of production. Prestos goal the 3 years before it shut down was just to sell out its inventory. The forecasted net income generated for the years (2011-2013) is 25% of the forecasted Sales Value. Twenty five percent is only an approximation; it is likely the first three years of operation will incur higher costs. This is due to the Learning Curve model which says that as the years go by, costs produced by the company will slowly diminish or devaluate after the first few years of operation. After three or more years, Presto will have enough expertise to reduce costs in handling, distribution, production, marketing, etc.
4.
Distribution
Years 1999 Actual 2000 2001 2011 Forecasted 2012 Number of Freezers 1,000 900 800 500 600
2013 700 Table 32: Distribution - Number of Freezers (Actual and Forecasted)
Figure 12: Distribution - Number of Freezers (Actual and Forecasted)
In the years 1999-2001, the freezers that Presto used in its distribution in GMA decreased steadily at a rate of around a hundred a year. This may be due to the entry of major players in the industry. Unlike Presto, new players like Nestle and Selecta usually cover electricity payments for the freezers used by the intermediaries in selling Ice Cream products making them more attractive prospects for dealers and intermediaries. Presto had conflicts with their dealers which made them decide to pull out some of their freezers from both supermarkets and small-time dealers in the GMA as well as in other areas. The forecasted number of freezers to be used from 2011 to 2013 is small because of the brands stage in its lifecycle. In the Philippine ice cream industry, many players increase their freezers soon.
VII.
Overall Marketing Strategy A. New Marketing Strategy Our marketing strategy's objective is to allow our customers to focus on the variety and quality of our products with respect to their affordable price. We will attempt to raise the perception of value of our products by catering to the "Filipino taste" using the local-fruit-flavored ice cream that we will offer. No real fruits bits will be used in the ice cream as it will increase production costs but our products will imitate the real flavor of local fruits. In doing this, our products can allow the consumers savor flavors close to their heart that they have never encountered in ice cream. For an even greater variety of flavors, we will also collaborate with other URC mainstream products such as Cream-O, Cloud 9, Pretzels, etc., creating ice cream that will mirror them. We opt to use a product development strategy; we will introduce new products to our former market. To cater to our target market, we will obtain supplier support by canvassing for reliable suppliers to get the best possible price, lessening the cost of production, without reducing the quality. Our marketing strategy will allow us to commit to the company's goal of delivering true Filipino taste and culture. In summary, here are the strategies to be implemented by Presto Ice Cream: Promote and popularize Filipino taste Produce a variety of new flavors Affordability with good quality and taste of ice cream
B. New Value Proposition Presto Tivoli seeks to continue its goal of promoting and popularizing the Filipino taste and culture by offering a new variety of local flavors and healthy options. We take pride in learning what Filipinos want, so as tocater to a variety-seeking market. We commit to JG Summits vision to make life better through offering quality ice cream at more affordable prices.
C. Strategy Pyramid
Figure 13: Strategy Pyramid of Presto Ice Cream
VIII.
The Marketing Mix Positioning Statement: To children who love fun and to teens and working professionals who are health-conscious, Presto Tivoli is re-launching an ice cream brand that will provide premium quality and affordable prices. A. Product 1. Product Strategy/Positioning Presto Tivoli Ice Cream shall be presented in different perspectives. Product Description/Features/USP - Newest Flavors of Presto Tivoli Ice Cream Presto Tivoli Ice Creams newest flavors are inspired by the traditional and popular cultures of the various provinces in the Philippines. In addition, the names of these flavors are ones Filipinos from Classes B, C and D can relate to. a. Frozen Novelties/Impulse Ice Cream Presto used to be one of the market leaders in the Frozen Novelties section because of its ability to produce and create exciting and innovative ice cream products. Some of which include the Tivoli Bar, Funwich, Cyclones, Funcones, Heaven In a Bar, and a lot more. In order to continue Prestos legacy of presenting and creating wonderful ice cream products, the group has developed new flavors and forms. Included here are those developed in collaboration of Universal Robina Corporations popular snacks, such as the Hello Wafers and Quake Cupcakes while the others are inspired by the different popular local flavors mentioned earlier.
New Products Category Frozen Novelties (Collaboration with URC BCFG) Code Product Name Type Available Flavors CFN1 Sandwich Strawberry, Vanilla, Mocha FREEZE Hello CFN2 Sandwich Strawberry, Vanilla, Mocha FREEZE Quake
Table 33: New Products Category Frozen Novelties (Presto and URC)
Frozen Novelties Code Product Name FN1 Palamigz! FN2
Type Popsicle Cone
Available Flavors Vanilla, Cheese, Chocolate, Mocha, Dark Chocolate
FN3 FN4 FN5 FN6
Prutasan on Ice
Popsicle Cone
Fruit Flavors: Avocado, Pinya, Durian, Buko Strawberry, Durian, Mango, Banana Tsokolate, Leche flan, Kasoy, Pastillas de Leche, Halohalo, Taho, Pinipig, Ube, Mais, Yema Pastillas Tsokolateng Batirol and saPILIng mo Tsokolateng Batirol and Ala Hoy Con Kasoy Kapeling mo and saPILIng mo Kapeling mo and Ala Hoy Con Kasoy UBEr sarap + Tsokolateng Batirol + President KESOn Cups featuring different flavors of Presto: Hello, Nips, Quake
LasaPinoy
Popsicle Cone
FN7
Dobol Trobol
Cone
FN8
Brownman's Choice
Cups
Table 34: New Products Category Frozen Novelties (Presto)
b. Packaged Ice Cream Presto will offer unique packaged ice cream products. There will again be products created in collaboration with other URC products, particularly Quake, Hello, and Nips. The flavors offered as frozen novelties are also available in packaged ice cream.
New Products Category Packaged Ice Cream Code Product Name PN1 PN2 PN3 PN4 PN5 Brownman's Choice Dobol Trobol Prutasan on Ice LasaPinoy Palamigz! Description Packaged Ice Cream (in gallons, pints, quarts) featuring different flavors of Presto Tivoli Ice Cream Packaged Ice Cream (in gallons, pints, quarts) featuring combination of Pinoy flavors Packaged Ice Cream (in gallons, pints, quarts) featuring fruit flavors of Presto Tivoli Ice Cream Packaged Ice Cream (in gallons, pints, quarts) featuring different flavors of Pinoy tastes Packaged Ice Cream (in gallons, pints, quarts) featuring common ice cream flavors
Table 35: New Products Category Packaged Ice Cream (Presto)
Packaged Ice Cream (Collaboration with URC BCFG) Code Product Name Description CPN1 Quake on Ice (soft biscuit) A fusion of Quake Bars Ice Cream Cake, base: Vanilla Comes in different flavors: Tsokolateng Batirol Kapeling Mo Chilly Strawberry (chocolate) (coffee) (strawberry)
UBEr Sarap Hello on Ice (hard biscuit)
(ube)
CPN2
A Packaged Ice Cream, as Hello Chocolate Bars as the Base Comes in different flavors: (chocolate) Tsokolateng Batirol (coffee) Kapeling Mo (cashew) Ala Hoy Con Kasoy A Packaged Ice Cream - fusion of Presto Ice Cream and Nips
CPN3
Nips on Ice (hard candy)
Comes in different flavors: Tsokolateng Batirol Chilly Strawberry Mais Corny (Miss Corny) Milky Saan (Maski Saan)
(chocolate) (strawberry) (corn) (milk)
Table 35: New Products Category Frozen Novelties (Presto and URC)
For the complete listing and the competitive advantage of each product, here is the table that details the description of Prestos newest Ice Cream products, as well as, their competitive advantage to current and future Ice Cream Market Industry in the Philippines, specifically to Greater Manila Area (GMA) or NCR.
PRODUCT
CUSTOMER NEED MET
FEATURE/ BENEFIT
REFERENCE COMPETITION
DIFFERENTIATION/ USP COMPETITIVE ADVANTAGE POSITION IN THE MARKET
NATURE OF ADVANTA GE
Freeze Hello
- Pay for one and get two (ice cream + hello wafer) - Pay for one and get two (ice cream + Quake) - Customers who are loyal to a mainstream flavor of ice cream
- An ice cream with 2 hello wafers - Healthy* - A soft, chocolate covered cake with ice cream filling - Healthy* - Common ice cream flavors - Healthy* - Popular local fruits in the Philippines - Creating and offering exotic flavors which were not available anywhere else real fruitness and real goodness - Healthy* - popular 'very Pinoy' flavors - creating and offering exotic flavors which were not available anywhere else - Healthy* - Different chocolate products of Presto ice cream - Healthy* - Shows a variation of their product
There are few competitors for this product. Dairy Queen offers an expensive line of similar product. There are few competitors for this product. Dairy Queen offers an expensive line of similar product. Most Ice Cream brands offer the common ice cream flavors but usually, they are priced higher than Presto. The main competitors of this type of product are Sorbetes of Nestle and the Dirty Ice Cream vendors (lower-end of the market). Those in the Dirty Ice Cream may cost a little than Presto but Presto uses the finest ingredients, with accompanying health benefits. Almost all the Ice Cream brands in the Philippines has Pinoy flavors such as, Mungo, Keso, Ube, Pinipig of Nestle (data taken from SSG Supermart) There is now a fusion of Nestle products, such that, it released a new product line consisting of its chocolate brands, such as Kit Kat, Crunch, and Baby Ruth, which are priced at
-Affordable -Availability -Familiarity with flavor
superior
Freeze Quake
-Affordable -Availability -Familiarity with flavor
superior
Palamigz!
-Affordable -Familiarity with flavor -No particular brand has ever focused on local fruits alone. There may be one seller in a particular region, selling their domestic fruit in their region only. Presto will gather all those fruits and make it available to our target consumers. -With this product, we are bringing people closer to the place where they want to be through the ice cream flavors we offer. It has the real taste of very local flavors. -Affordable -Availability -Familiarity with flavor; this also promotes products unique to their company
affordable
Prutasan on Ice
- craving for a fruit flavor - Convenience in buying
distinctive affordable
LasaPinoy
- available Pinoy flavors
distinctive affordable
Brownman's Choice
- guilt-free consumption of chocolate
preemptive
around Php 170.00 Php 260.00 (reference: SSG Supermart)
DobolTrobol
- Have a taste of diverse flavors
Quake on Ice
- Combination of Pinoy flavors - Creating and offering exotic flavors which were not available anywhere else - Different chocolate products of Presto ice cream - Healthy* -Shows a variation of their product - Different chocolate products of Presto ice cream - Healthy* -Shows a variation of their product
There could be no competitors at this moment because of the fusion and combination of Pinoy flavors. This could be a first in the market. Dairy Queen (DQ) has this kind of product (Ice Cream Cake) and it is very much costly as compared to Presto products.
-Affordable -Availability -Familiarity with flavor; this also promotes products unique to their company -Affordable -Availability -Familiarity with flavor; this also promotes products unique to their company
distinctive
Preemptive
Hello on Ice
Nips on Ice
This is like the Kitkat Bites -Affordable of Nestle, but this is priced -Availability much lower to -Familiarity with flavor; accommodate the needs of this also promotes the target market. Also, products unique to their Hello Wafer Bars are priced company lower than Kitkat. This is like another fusion of chocolate brands with Ice Cream, like what Nestle - Different chocolate did, with its chocolate -Affordable products of Presto brands (Kitkat, Crunch, and -Availability ice cream Baby Ruth). However, as -Familiarity with flavor; - Healthy* far as Nips is concerned, this also promotes -Shows a variation of this could be a first in the products unique to their their product market (having smaller company pieces of chocolates rounded mixed with Ice Cream). Table 36: Competitive Positioning of Presto Tivoli Ice Cream Products
Preemptive
preemptive
Packaging: (See Appendix) B. Pricing 1. Pricing Strategy The Pricing Strategy to be implemented by Presto is consistent with its Differentiation and Positioning Statements mentioned in the previous sections. Even though affordability is what makes Presto stand out in the industry, it does not limit itself by compromising the raw materials used. Presto will use premium ingredients and it will offer healthy products for every Filipino.
In this proposed marketing plan, Prestos price will remain 5%-50% lower than the leading ice cream brands in the Philippines as shown in Table 6 of Part II of this paper to ensure that the product is competitively priced. This is necessary because of our targeted segments (B, C, D) which include the lower classes. In addition, while people of all ages eat ice cream, we will also target children as well as young adults who have limited income. Again, while the new marketing strategy emphasizes on quality and innovation, our pricing method will still position Presto to be the ice cream brand that is that everyone can afford. 2. Detailed Product Costing Presto Tivoli Ice Cream is divided into two categories, the Frozen Novelties and the Packaged Ice Cream. Most of the ingredients/raw materials used in these products are usually similar. However, there are minute details that make products different from one another (example: flavoring). The product costing presented below if for a typical gallon of Presto Tivoli Ice Cream and the estimated average price of each Frozen Novelty (which comprise the cones, popsicles, and sandwiches See list above):
Product Costing of Packaged Ice Cream (in Php) 2011 1 Gallon of Ice Cream Unit Cost: Markup Price: Desired Return on Sales: 1 Gallon of Ice Cream Cost: Direct Variable Cost: Electricity Water Wages Indirect Variable Cost: Fixed Assets General and Administrative Expenses Indirect Fixed Cost: Marketing Cost Depreciation Loses Before Tax 210.51 4.20 (21.69) 68.81% 1.37% -7.09% 2.57 36.77 0.84% 12.02% 41.20 15.45 16.92 305.94 % to Selling Price 13.47% 5.05% 5.53% 198.86 305.4 0.35
Frozen Novelties (Estimated 35 different kinds in a Gallon) Average Price of Frozen Novelties Table 37: Detailed Product Costing Year 2011 8.74
Product Costing (in Php) 2012 1 Gallon of Ice Cream Unit Cost: Markup Price: Desired Return on Sales: 1 Gallon of Ice Cream Cost: Direct Variable Cost: Electricity Water Wages Indirect Variable Cost: Fixed Assets General and Administrative Expenses Indirect Fixed Cost: Marketing Cost Depreciation Profits Before Tax 125.67 3.30 100.26 40.96% 1.08% 32.68% 1.69 24.26 0.55% 7.91% 28.71 11.82 11.09 306.80 % to Selling Price 9.36% 3.85% 3.61% 168.74 306.80 0.45
Frozen Novelties (Estimated 35 different kinds) Average Price of Frozen Novelties 8.77 Table 38: Detailed Product Costing Year 2012 Product Costing (in Php) 2013 1 Gallon of Ice Cream Unit Cost: Markup Price: Desired Return on Sales: 1 Gallon of Ice Cream Cost: Direct Variable Cost: Electricity Water Wages Indirect Variable Cost: Fixed Assets General and Administrative Expenses Indirect Fixed Cost: Marketing Cost Depreciation Profits Before Tax 99.90 2.45 177.09 29.18% 0.72% 51.72% 1.25 18.08 0.37% 5.28% 22.52 10.01 11.09 342.39 % to Selling Price 6.58% 2.92% 3.24% 154.08 342.39 0.55
Frozen Novelties (Estimated 35 different kinds) Average Price of Frozen Novelties Table 39: Detailed Product Costing Year 2013 9.78
3. Index versus Competition

Product Price* Index* 9.10 15.00** Popsicle (Fruit Flavor) 9.10 30.00*** Cone 2011-2013 (average prices) 9.10 Sandwich 318.20 375.21**** Packaged Ice Cream, 1 Gallon *Prices are quoted in Philippine Peso. **Price of Nestle Popsicle Kimy Krazy Banana ***Price of Nestle Drumstick ****1 Gallon = 3.79 Liters (cheapest 1 L of Ice Cream is Php 99.00 3 in 1 of Nestle) *****Prices of Frozen Novelties are stated in their average prices based on the computation above. Table 40: Index vs. Competition Prices (2011-2013) average Year
Presented in the table below is a comparison of Prestos accepted selling price against the prices of its competitors. As mentioned in pricing strategy, the price level will remain lower than the other brands because we want to maintain a morefor-less value positioning in the market.
Price Per Gallon 351.831 336.534 321.237 458.91 305.94 Price Per Gallon Index vs Other Brands .15 .10 .05 .5 1
Brand Selecta Magnolia Arce Dairy Coney Island (dead brand) Presto
Table 41: Comparison of Presto Brand with others (2011)
The price of Presto came from the detailed product costing shown in the 3 preceding tables. The prices of other brands came from the percentages given in Part II of this paper. As the table clearly shows, Presto will be the most affordable, reputable ice cream brand in the market. Because Presto is undergoing a change in its product features, as said earlier, Presto will compromise the use of additional ingredients and raw materials with a slight increase in selling price. Nevertheless, the price will still be lower than all the other competitors to emphasize the morefor-less value proposition. Having a lower price with respect to all the competitors, it is fair to say that Presto has an advantage. Since our target segments are C, D classes, which are price sensitive classes, having Presto in line with other leading ice cream brands with higher prices can generate more sales. Even if we slightly increase the selling price due to innovation, Presto will remain as the cheapest ice cream brand that gives a lot of value for the consumers money. In that sense, even if the target consumers
are price sensitive, the slight increase in price will not negatively influence their buying patterns as long as the perceived benefits of Presto exceed that of the competitors. C. Distribution 1. Distribution Strategy Statement Our channel strategy is to implement intensive distribution for the products to be available where and when customers want them. We will coordinate with Independent trackers to enable a efficient and wider range of distribution. Our main channels for distribution are supermarkets, grocery stores and convenience stores situated near train stations and areas with heavy traffic to maximize product exposure. We will also utilize ice-cream bike carts to reach communities not immediately within the area of supermarkets, groceries and convenience stores. We will also research into possible refrigerant alternatives, such as dry ice, in order to cut distribution costs in the following years. We also plan to arrange payment terms for retailers who request for bulk orders and give discounts to dealers that pay early. 2. Distribution Set-Up/Map
Figure 14: Distribution Set-Up/Map
3.
Trade Channels
Trade Channels Ministop Branches Percentage Total Estimated Ministop Branches Puregold Branches Percentage Total Estimated Ministop Branches Total Robinson's Supermarket SaveMore Hypermarket Number of Mini-Groceries Table 42: Suggested Trade Channels 250 60% 150 46 60% 28 19 10 10 100 317
D. Promotions 1. Overall Promotions Strategy Objective 1) To establish a market presence in Greater Manila Area (GMA) or the National Capital Region. 1) To introduce and provide our target markets with a unique, interesting, local fruit-flavored ice cream. 2) To promote other URC products through collaboration Key Result Areas To establish a market presence in Greater Manila Area (GMA) or the National Capital Region. Increase in Sales Volume of ice cream with fruits
Increase in Sales Volume of ice cream with URC products
Table 43: Overall Promotions Strategy
2.
Major Promotions Tools Our main goal is to reinforce the perceived value of the brand to our consumers; that of quality and affordability. Research about our specific target markets will enable the brand to better communicate to their individual preferences. Some of our flavors will be limited according to season to maintain consumer interest. Moreover, through the brands collaboration with other existing mainstream
products of URC, we aim to improve brand awareness of our new products and reinforce the brand name of existing URC products. 3. Action Programs Presto Tivoli Ice Cream will officially enter the market on March 2011. The detailed explanation of each promotional/action program for the year 2011 is as follows: January At the onset of the first week of January, there will be promotional samplings to be given away to selected supermarkets, groceries, and convenient stores. During the said promotional samplings, surveys will also be implemented, wherein, prospected consumers of the said brand will be asked questions, such as, Given the chance, will you buy this ice cream in the future?, Rate the quality and taste of the ice cream and the like. February The promotional samplings will continue as what was planned during January 2011. For this month, the same products will be given away to the consumers, but in this case, Ice Cream products will be improved given there should be improvements according to the surveys implemented last month. Moreover, surveys will also be taken into consideration for this month so that quality and taste will be onto its finest. March For the month of March, four types of promotions methods will be implemented. These are TV Commercials, Radio Advertisements, Print Advertisements, and Outdoor Advertising. Basically, the whole set of TV Commercials to be shown in the whole year (4 months) will be a whole story, which is divided into four episodes. The story will be about a Filipino student, who started with being zero and ended with being a hero. In this sense, Presto Tivoli Ice Cream will be positioned as an inspiration the child. In addition, the TVC will be shown and aired during morning weekends (ABS-CBN and TV5) and one primetime show (Mutya). On the other hand, the Radio Commercial/Advertisement will run on Mondays, Wednesdays, and on Fridays, with 3 intervals (30 seconds) in a day. Print Advertisement will run three times a week (Mondays, Wednesdays, and Fridays) with a Full-page colored advertisement on a Friday, and page on Mondays and Wednesdays, through Libre Newspaper (Inquirer) given in LRT and MRT. Finally, the rental of billboards will be done on this month also, and these billboards will be placed on EDSA (where heavy traffic is expected). April For the month of March, new sets of advertisements and commercials will run in Radio, Print, and Outdoor Advertising. All three will be presented as reflected by Summer Season. Limited Edition flavors of Ice Cream will also be presented in the market so that people will have a variety for the said season. Also, prizes will be given away to lucky consumers of Presto. Some of the prizes will be done in collaboration with Prestos sister company,
Robinsons Mall (to give way free tickets to any movie; however, the said prices are limited only). May For the month of May, another TV Commercial will be produced. The said TV Commercial will be about the Summer Season towards the opening of classes on June. On the other hand, there will be another set of advertisements and commercials to be presented via radio, print and outdoor advertising with regard to the season at hand. Some of the promotional offerings will include, Back to School promo (prizes will be given away) and a lot more, considering the Summer Season towards opening of classes. June For the month June, there be four types of advertisement modes/channels that will be used by Presto, namely TV Commercial, Radio Advertisement, Print Advertisement and Promotions/PR Events. Basically, the TV Commercial to be shown here is a continuation or another episode of the story for the year 2011. On the other hand, Radio and Print Advertisements will present the promotional offerings of Presto this Back to School month, as well as, the onset of the Rainy Season Sale of Ice Cream products. Normally, during rainy days, people opt not to buy Ice Cream but having discounts and other promotional offerings, consumers might still buy the Ice Cream products of Presto. Finally, Promotions/PR Events consist of providing paid sampling, wherein current and prospective consumers will have to pay a little amount of Php 5.00 for a scoop of Ice Cream placed in a cone. In this type of promotional activity, Presto is still earning a little bit while promoting its products. The said Promotions/PR Events shall be held in different/random supermarkets, convenient stores, groceries, and etc. July For the month of July, since this is part of the Rainy Season in the Philippines, there will only be two modes of advertising and promoting Presto products. One of which is placing Print Advertisements in Libre Newspaper to promote sales and discounts of Ice Cream products, this Rainy Season. Some of the promotional offerings to be offered to the market are Buy 1 Gallon, Get 1 Pint Free, etc. On the other hand, Promotions/PR Events activities will be similar in the past, wherein paid sampling will took place. Basically, Php 5.00 per Ice Cream scoop with cone is offered into its lowest price due to the impact of the Rainy Season. August Presto will produce another set of Print advertisements. These advertisements will have the same goal/objective and that is to present to consumers and prospective buyers, that there will be discounts and other promotional offerings that Presto is offering this month in the market. September For the month of September, Radio, Print, Outdoor and Promotions/PR Events will present the promotional activities and offerings for its consumers during the Holiday season. Basically, limited edition of Ice Cream products of Presto will be advertized using the channels mentioned
above. This type of advertisement will run until December due to the Holiday season, at hand. October For the month of October, Radio, Print, Outdoor and Promotions/PR Events will also present the promotional activities and offerings for its consumers during the Holiday season (3 months before Christmas). Basically, limited edition of Ice Cream products of Presto will be advertized using the channels mentioned above. This type of advertisement will run until December due to the Holiday season, at hand. November For the month of November, Radio, Print, Outdoor and Promotions/PR Events will also present the promotional activities and offerings for its consumers during the Holiday season (3 months before Christmas). Basically, limited edition of Ice Cream products of Presto will be advertized using the channels mentioned above. This type of advertisement will run until December due to the Holiday season, at hand. December For the month of December, Radio, Print, Outdoor and Promotions/PR Events will also present the promotional activities and offerings for its consumers during the Holiday season (3 months before Christmas). Basically, limited edition of Ice Cream products of Presto will be advertized using the channels mentioned above. This type of advertisement will run until December due to the Holiday season, at hand. Finally, the final episode of the TV Commercial of Presto will be shown during the primetime Friday (Mutya) from ABS-CBN. The said episode is all about a child/kid buying Presto Tivoli Ice Cream through the use of his savings. 4. Various Promotion Activities/PR Events a. TV Advertising
TV Program TV Station Number of Spots per Year 2011 2012 2013
52 Ed, Edd N Eddy TV5
52
52
52 Powerpuff Girls TV5
52
52
52 Aha! GMA 7
52
52
12 Mutya ABS-CBN 2 Table 44: TV Advertisements
12
12
Basically, the choice of the programs and the television stations depended on the viewership or the television ratings of Mega Manila during Friday (February 25) and the following weekend daytime (February 26-27). Two cartoons from TV5 were chosen because of their dominance in the top 10 daytime programs Powerpuff Girls ranked 8th last February 27 and 10th last February 26. On the other hand, Ed, Edd N Eddy ranked 10th last February 26. Ed, Edd and Eddy, based from its ratings and rate per 30s, has a cost of Php 12,820.51 per second. Finally, Powerpuff Girls (on the average) has a cost of Php 12,195.12 per second. On the other hand, Aha! from GMA 7 ranked 10th last February 27. Looking at its ratings and rate per 30s, its cost will be Php 26,583.33. If we will to choose, which of the daytime programs in weekend is the perfect choice to advertise, it could be better on Powerpuff Girls (with the highest ratings) because of its low cost per second, in a 30-second commercial. Looking at Primetime slot, Mutya (kids show) has the highest ratings and ranked 4th last February 25. It has a cost of Php 21,407.13 per second. And it seems that it is more advisable to have a commercial in primetime of Mutya than on Aha! during daytime because of their differences in cost.
b. Print Advertisements
2011 Monday Wednesday Friday Monday Friday Monday Interval 43 43 44 2012 52 52 2013 52 Total 2,064,258.00 2,064,258.00 4,224,528.00 2,745,943.20 2,745,943.20 3,020,537.52
52 3,020,537.52 Friday Table 45: Print Advertisements
Readership Details*:
*http://www.scribd.com/doc/8351285/Libre-Display-Adrates
A and B SEC Upper C Lower C D
2% 7% 48% 43% 100%
60% Age: 18-25 years old Table 46: Libre Readership Details
Philippine Daily Inquirer Libre Newspaper was chosen to be the broadsheet to be used where the print advertisements of Presto Tivoli Ice Cream will be placed. Having Libre Newspaper is very affordable and can reach the target market and the target audience of Presto. Basically, Libre Newspaper is given from Mondays thru Fridays in LRT and MRT stations, which are located in the the National Capital Region. Also, LRT and MRT stations are near some of the largest and biggest Malls and Supermarkets. Looking at the readership details of Libre Newspaper, it can be seen that a lot from SECs C and D are reading the said newspaper. And it could be easier to advertise the products to and reach the said SECs.
c. Radio Advertisements
2011 MWF MF MF Grand Total Table 47: Radio Advertisements Days* 175 104 104 Interval 3 2012** 3 2013** 3 Cost 16,000.00 17,600.00 Total 8,400,000.00 5,491,200.00 6,040,320.00 19,931,520.00
Love Radio is the number 1 FM Station in the National Capital Region. Presto advertisements will be aired on this radio station because l its current ranking. In addition, Love Radio has landed on the top spot because the number of listeners constantly listening to it everyday.
d. Outdoor Advertising
Billboard Places EDSA-Santolan EDSA-Cubao Sub-Total Rate 195,000 295,000 Months 7 7 2011 1,365,000.00 2,065,000.00 2012* 1,378,650.00 2,085,650.00 3,464,300.00 2013* 1,392,436.50 2,106,506.50 3,498,943.00
3,430,000.00 Table 48: Outdoor Advertising
EDSA-Santolan
Figure 15: EDSA-Santolan Billboard
EDSA-Cubao
Figure 16: EDSA-Cubao Billboard
e. Advertisements Storyboards and Scripts TV Commercial Storyboard
A no-nonsense middle class lady is walking through the aisles of the grocery when she suddenly hears a psst. Notice the Presto Trivoli logo on the freezer.
She looks around and sees no one until she hears it again and realizes that its coming from a Presto Trivoli ice cream package a package which suddenly sprouted arms and legs, a package which started tapping the glass door, asking to be let out.
She reluctantly opens the door of the freezer and Presto, the ice cream package, introduces himself. His voice is similar to the singer of Mr. Suave. His character is that of an overdramatic clown who speaks too formally. He tries to convince her to buy him: Mahal na ginang, di mo ba nais iuwi ako sa inyong tahanan? She looks annoyed and suspicious: At ano gagawin mo doon? Sasamahan ko ang inyong mga anak at ipapasaya ko sila.
At bakit ka naman nila ikaw magugustuhan? Sapagkat akoy di lamang masarap, ngunit kakaiba pa. At di ba sila magkakaroon ng sakit sa pakikisama sa iyo? Naku po! Hindi ! Sapagkat akoy punong puno ng sustansiya : ng kalsium,. Bitamina at iba pa. E yung bulsa ko? Paano na? Ako poy abot kaya! Sa napakamaliit na halaga, akoy mapapaiyo na!
They engage in a staring contest, with Presto giving her a puppydog-look.
FIN
They arrive home. Presto waves goodbye as the commercial ends.
The color for the first four will be a bit drab.
A boy elementary student, Filipino, brown-skinned, sad walks in the rain. Hes holding a failing test paper. Its quite late.
A woman paces back and forth restlessly while wringing her hands. On the table is a picture of her OFW husband. She sees the boy, her son, through the curtain and she rushes out of the house.
<insert melodramatic music.>
She hugs him and looks at him with concern. He bursts into tears and runs into the house, dropping his test paper.
The Mom picks up the fallen test paper, sees the failing score and gains a look of understanding and sympathy on her face.
The next three slides will slowly start to show more and more color, starting with the cup of Presto Trivoli ice cream. Music for this section will be a little more uplifting. The fourth will be filled with bursts of colour.
The boy has dried up and is sulking in his room. The mom comforts him while offering him a cup of Presto Trivoli.
Scenes of mom and child studying together. Changing clothes, and Presto flavors indicate passage of time. Focus on the Presto Trivoli ice cream package.
Anak, mag-presto muna tayo.
Mom walks in on the boy who studied until he fell asleep. Next to him is an empty cup of Presto. (Notice the poster on the wall.)
Boy on the way home again. This time, its sunny and he seems excited. He passes by a Presto Trivoli ad. <Uplifting music gradually fades.> Last scene is that of the boy dragging the mom up the stge. He is wearing a medal. <Music shifts to the grad. march.> Final Message: Presto Congratulates the Graduates of SY 2010 to 2011.
Radio Commercial Script March-April-May-June September-October-November-December Radio Commercial for Prutasan on Ice Nanay: Gusto ko ng fresh fruit! Yung talagang lasang-lasa mo yung katas at linamnam Anak: Tara Mommy, punta po tayo sa Baguio bili tayo strawberry! Anak2: Wag na sa Cebu na lang, gusto ko ng mangga nila! Nanay: Tama dun na lang, para dumeretso tayo sa Davao pagkatapos, bili tayo ng Durian Tatay: Alam ko na ang sagot dyan! Tara, punta na tayo sa grocery. Lahat: Haa? Voiceover: Introducing new Prutasan on Ice! Ngayon, ang mga paborito mong prutas san mang sulok ng probinsya ay mabibili mo na sa pinakamalpit na tindahan. JINGLE [Tune of Halika, Biyahe Tayo] Namasdan mo na ba Ang mga mangga sa Cebu Suman, Mangga, Kasoy Halo-halo, at La Union? Tara na, biyahe tayo Mula Baguio hanggang Jolo Nang matikman ng husto Ang ating prutas-Pilipino. Halika, biyahe tayo, Nang ating malasap Ang katas ng Pilipinas Ang galing ng Pilipino
f. Facebook Flash Game Facebook Networking site is a very good tool for promoting products and a lot more. The aforementioned statement can be verified through the following statistics taken from Socialbakers.com. Population of Philippine Facebook Users (taken from Socialbakers.com)
Figure 17: Population of Phillipine Facebook Users
User Age Distribution (taken from Socialbakers.com)
Figure 18: User Age Distribution
Game Proper
Figure 19: Presto Tivoli Ice Cream Flash Game Proper
This is a simple flash game, wherein Facebook users may have the chance to win exciting prizes from Presto Tivoli Ice Cream. Basically, the game has a focus on the Ice Cream industry, as well as, the Philippine Pop Culture. This game will run only during the re-launching year of Presto so that prospective consumers may have the taste and feel of what Presto Tivoli Ice Cream has in store for them.
a. LRT, MRT and PNR Southrail Line Route (which covers more or less Metro Manila/NCR)
Figure 20: NCR Train Stations Route Map
LRT 1 Passenger Statistics

Passenger Traffic (in Millions of Passengers) 2010 January February March April May June July August September October November December TOTAL 13.54 12.75 13.00 10.79 12.16 12.63 13.77 13.50 13.33 12.91 13.14 13.81 155.91 2009 12.66 11.94 12.79 10.18 11.91 11.72 13.28 12.86 12.49 13.27 12.87 13.47 149.44 2008 11.11 10.62 9.73 10.66 11.22 11.00 12.40 11.78 12.56 12.50 12.51 11.96 138.04 2007 10.21 9.42 10.19 7.60 9.44 9.86 10.76 10.06 10.36 10.32 10.19 10.70 119.12
Table 49: LRT 1 Passenger Statistics
LRT 2 Passenger Statistics

Passenger Traffic (in Millions of Passengers) 2010 2009 2008 2007 January 5.53 5.33 4.97 4.61 February 5.19 4.98 4.64 4.35 March 5.55 5.28 4.19 4.57 April 4.05 3.84 4.23 3.19 May 4.58 4.63 4.51 3.85 June 5.13 4.82 4.57 4.25 July 5.88 5.83 5.45 5.0 August 5.57 5.57 5.30 4.50
September 5.75 5.27 5.57 4.88 October 5.23 5.53 5.13 4.67 November 5.31 5.53 5.16 4.50 December 5.41 5.50 4.86 4.57 TOTAL 63.36 62.09 58.59 52.93 Table 50: LRT 2 Passenger Statistics
Looking at the above figures and data, we can see that there are millions of passengers riding the LRT 1 and LRT 2, in a month. Also, these data are significant since through these, Presto Tivoli Ice Cream can have more or less, a reach over Metro Manila/NCR. Advertising on these train stations could be effective since the distributors of the Presto products are usually situated near the train stations. Supermarkets, groceries, and convenient stores are more or less, near and distant to said train stations.
IX.
3-Year Financial Forecasts A. Sales Volume/Value Projections 1. Sales Volume

2011 55,832.95 6,402.62 62,235.57 62,235,570.00 16,181,248.20 9,708,748.92 2% 2012 56,832.75 6,434.63 63,267.38 63,267,380.00 16,449,518.80 9,869,711.28 3% 2013 57,572.75 6,460.37 64,033.12 64,033,120.00 16,648,611.20 9,989,166.72 4% 399,566.67
Forecast Take Home (Packaged Ice Cream) Impulse (Novelties) Total x1000 liters to Gallons (*0.26) GMA Area (Ice Cream Industry) 60% market share (2004-2008) Forecasted Presto Market Share
Total Forecasted Presto Sales Volume 194,174.98 296,091.34 Table 51: Forecasted Sales Volume (2011-2013)
Figure 21: Forecasted Sales Volume (2011-2013) Bar Chart
2.
Value Projections
2011 7,311.76 1,161.84 8,473.60 8,473,600,000.00 5,084,160,000.00 2% 2012 7,411.49 1,163.38 8,574.87 8,574,870,000.00 5,144,922,000.00 3% 2013 7,529.17 1,174.61 8,703.78 8,703,780,000.00 5,222,268,000.00 4% 208,890,720.00
Forecast Take Home (Packaged Ice Cream) Impulse (Novelties) Total xPhp 1,000,000 GMA Area (Ice Cream Industry) 60% market share (2004-2008) Forecasted Presto Market Share
Total Forecasted Presto Sales Volume 101,683,200.00 154,347,660.00 Table 52: Forecasted Sales Value (2011-2013)
Figure 22: Forecasted Sales Value (2011-2013) Bar Chart
B. Detailed Marketing Budget and Marketing Timetable 1. Detailed Marketing Budget
2011 Television Production Media Sub- Total Print Production Media Sub-Total Radio Production Media Sub-Total Outdoor Advertising Production Rental Sub-Total 500,000.00 3,430,000.00 3,930,000.00 750,000.00 8,400,000.00 9,150,000.00 750,000.00 8,353,044.00 9,103,044.00 2,000,000.00 12,781,892.00 14,781,892.00
2012 2,200,000.00 14,060,081.20 16,260,081.20
2013 2,420,000.00 14,763,085.26 17,183,085.26
Total 6,620,000.00 41,605,058.46 48,225,058.46
825,000.00 5,491,886.40 6,316,886.40
907,500.00 6,041,075.04 6,948,575.04
2,482,500.00 19,886,005.44 22,368,505.44
825,000.00 5,491,200.00 6,316,200.00
907,500.00 6,040,320.00 6,947,820.00
2,482,500.00 19,931,520.00 22,414,020.00
550,000.00 3,464,300.00 4,014,300.00
605,000.00 3,498,943.00 4,103,943.00
1,655,000.00 10,393,243.00 12,048,243.00
Total Advertising Budget Production Media Sub-Total PR/Promotions Cost of PR Materials Cost of Staging Sub-Total Other PR/Promotions Cost of PR Materials Cost of Staging 2,968,000.00 560,000.00 3,264,800.00 616,000.00 3,591,280.00 677,600.00 9,824,080.00 1,853,600.00 301,800.00 81,700.00 383,500.00 331,980.00 89,870.00 421,850.00 365,178.00 98,857.00 464,035.00 998,958.00 270,427.00 1,269,385.00 4,000,000.00 32,964,936.00 36,964,936.00 4,400,000.00 28,507,467.60 32,907,467.60 4,840,000.00 30,343,423.30 35,183,423.30 13,240,000.00 91,815,826.90 105,055,826.90
Sub-Total
3,528,000.00
3,880,800.00
4,268,880.00
11,677,680.00
Total PR/Promotions Cost of PR Materials Cost of Staging Sub-Total Total Advertising Budget Total PR/Promotions Budget 3,269,800.00 641,700.00 3,911,500.00 36,964,936.00 3,911,500.00 3,596,780.00 705,870.00 4,302,650.00 32,907,467.60 4,302,650.00 3,956,458.00 776,457.00 4,732,915.00 35,183,423.30 4,732,915.00 10,823,038.00 2,124,027.00 12,947,065.00 105,055,826.90 12,947,065.00 118,002,891.90
Total Marketing Budget 40,876,436.00 37,210,117.60 38,916,338.30 Table 53: Detailed Marketing Budget (2011-2013)
More Detailed Presentation of Budget a. Television Television Commercials shall run for a total of four months a year, (March, May, June, and December). The television commercials to be shown on the said months will cater the children or the kids from Greater Manila Area. Basically, the said commercials will run twice per targeted Kids Programs, from two largest Television Stations in the country, namely ABS-CBN, and TV5. Moreover, there will be another commercial to be shown in a primetime slot of ABS-CBN, which is Mutya; the said commercial will be aired once a week, specifically Fridays. The detailed classification of which TV Programs and to which Stations do the TV Commercials will be shown starting March 2011 until December 2013:
TV Program*** Ed Edd N Eddy Powerpuff Girls Aha! Mutya* Grand Total
TV Station TV 5 TV 5 GMA 7 ABS-CBN 2
Rating 3.90% 4.10% 3.00% 13.60%
Rate 50,000.00 50,000.00 79,750.00 286,241.00
2011 2,600,000.00 2,600,000.00 4,147,000.00 3,434,892.00 12,781,892.00
2012** 2,860,000.00 2,860,000.00 4,561,700.00 3,778,381.20 14,060,081.20
2013** 3,146,000.00 3,146,000.00 5,017,870.00 4,156,219.32 14,763,085.26
*Shown during weekdays, Primetime slots; the rest of the programs are shown during morning weekends. **2012 and 2013 shows may vary but an estimation of 10% increase per 30s commercial is assumed. ***Mega Manila Ratings
Table 54: Detailed Television Advertisements Budget (2011-2013) AGB Mega Manila
TV Program**** Avatar Art Angel Spongebob One Piece Oggy and the Cockroaches; Dexter's Lab Bakugan Metal Fight Beyblade Matanglawin Aha! Mutya* Dwarfina* Grand Total
TV Station ABS-CBN 2 GMA 7 ABS-CBN 2 GMA 7 TV 5 GMA 7 ABS-CBN 2 ABS-CBN 2 GMA 7 ABS-CBN 2 GMA 7
Rating 2.42% 2.25% 3.90% 3.07% 2.55% 2.40% 1.24% 4.44% 2.83% 13.60% 10.09%
Rate 81,362.00 79,750.00 81,362.00 79,750.00 50,000.00 79,750.00 81,362.00 81,362.00 79,750.00 286,241.00 287,496.00
2011 4,230,824.00 4,230,824.00
2012** 4,653,906.40 4,653,906.40
2013** 5,119,297.04 5,119,297.04
2,600,000.00
2,860,000.00
3,146,000.00
4,230,824.00 3,434,892.00
4,653,906.40 3,778,381.20
5,119,297.04 4,156,219.32
18,727,364.00
20,600,100.40
21,630,105.42
*Shown during weekdays, Primetime slots; the rest of the programs are shown from 7:30am-10:30am weekends. **2012 and 2013 shows may vary but an estimation of 10% increase per 30s commercial is assumed. ***These are just payments for the Media used. The production cost is shown above (detailed marketing budget). **** Ratings are based from NUTAM (Nationwide)
Table 55: Detailed Television Advertisements Budget (2011-2013) - NUTAM
b. Print Print advertisements will run Mondays thru Fridays during the re-launching year (2011) of Presto Tivoli Ice Cream. In the next two years (2012, 2013), the print advertisements shall be implemented twice a week during the first day of publication of the newspaper and the last of publication for the week (Mondays and Fridays). Presto has chosen to place its advertisements in Libre Newspaper (by Philippine Daily Inquirer). The advertisement of Presto will be placed three times a week (Mondays-Wednesdays-Fridays) in its re-launching year and will be placed twice a week (Mondays and Fridays).
The detailed budget for the Print Advertisements is shown below:

2011 Monday Wednesday Friday Total Amount Monday Friday Total Amount Monday Friday Total Amount Grand Total Amount 1/2 page 1/2 page 2013** Colored 58,087.26 Colored 58,087.26 52 52 1/2 page 1/2 page 2012** Colored 52,806.60 Colored 52,806.60 52 52 Size 1/2 page 1/2 page Fullpage Type Colored Colored Colored Amount 48,006.00 48,006.00 96,012.00 Interval 43 43 44 Total 2,064,258.00 2,064,258.00 4,224,528.00 8,353,044.00 2,745,943.20 2,745,943.20 5,491,886.40 3,020,537.52 3,020,537.52 6,041,075.04 19,886,005.44
*2012 and 2013 rates may vary but estimation of 10% increase per advertisement is assumed. **These are just payments for the Media used. The production cost is shown above (detailed marketing budget).
Table 56: Detailed Print Advertisements Budget (2011-2013)
c. Radio Love Radio, being the number one FM Radio Station in Mega Manila/NCR, it was chosen by Presto to advertize its new Ice Cream products. Basically, the radio commercial of Presto shall be aired three times a week (MondaysWednesdays-Fridays) in its first year of re-launching. And those commercials will be aired twice a week (Mondays and Fridays) on 2012 and 2013. Each radio commercial will run from 15 30 seconds, at most. And in a day, Presto radio commercial will be aired three times (morning, noon, and afternoon). Finally, radio commercials will run from March to June, and from September to December. The detailed budget for the Radio commercials is shown below:
2011 MWF MF Days* 175 104 Interval 3 2012** 3 2013** Reliving Good Times with Presto: Resurrection of Presto Tivoli Ice Cream | 79 Cost 16,000.00 17,600.00 Total 8,400,000.00 5,491,200.00
MF Grand Total
104
19,360.00
6,040,320.00
19,931,520.00
*Days are quoted in approximation **2012 and 2013 rates may vary but estimation of 10% increase per advertisement is assumed. ***These are just payments for the Media used. The production cost is shown above (detailed marketing budget). Table 57: Detailed Radio Advertisements Budget (2011-2013)
d. Outdoor Advertising Presto has chosen EDSA, where the Metro Rail Transit (MRT Line 3) is situated, as the place to put billboards. There are two strategic places that were taken into consideration. These two places are: Araneta-Cubao and EDSASantolan. It was said in the website (company handling the rentals of the said billboards), that slow traffic is an advantage for these billboards. The rental of billboards will run for a total of seven months (March to May; September to December). The detailed budget for the Outdoor Advertising is shown below:
Billboard Places EDSA-Santolan EDSA-Cubao Sub-Total
Rate 195,000 295,000
Months 7 7
2011 1,365,000.00 2,065,000.00 3,430,000.00
2012* 1,378,650.00 2,085,650.00 3,464,300.00
2013* 1,392,436.50 2,106,506.50 3,498,943.00
Grand Total for Three Years 10,393,243.00 *2012 and 2013 rates may vary but estimation of 1% increase per rental is assumed. **These are just payments for the Media used. The production cost is shown above (detailed marketing budget). Table 58: Detailed Outdoor Advertising Budget (2011-2013)
e. Promotional Materials Presto will have several promotional activities in a year. Most of these promotional activities will run during peak months and those months that Ice Cream products sales are dry because of some seasons that affect the sales.
Some of the promotional activities consist of promotional sampling (Php 5.00 per scoop of Ice Cream), placing of posters and banners in all the distribution channels (such as supermarkets, mini-groceries), and four train stations in NCR, and finally standees that will be placed in Mini-stop branches, Robinsons Supermarket, SM Supermarkets, Puregold, Mini-groceries, and a lot more.
The detailed budget for promotional activities can be found below:

Standees Number of Distribution Channels (Estimated) Number of Standees to Produce Estimated Budget per Standee Total Cost of Standees Banners, Posters Number of Distribution Channels (Estimated) Number of LRT, MRT, and South Rail Stations Number of Banners/Posters to Produce Estimated Budget per Banner/Poster Total Cost of Banners and Posters Grand Total Cost of Promotional Materials
317 317 400.00 126,800.00 317 61 500 350.00 175,000.00 301,800.00
Estimated Cost of Staging 81,700.00 Table 59: Detailed Outdoor Advertising Budget (2011-2013)
Promotional Activities Distribution Channels Number of Distribution Channels (Estimated) Number of Distribution Channels to Target Duration of Promotional Activities Number of Months to have Promotional Activities Total Number of Days per Month Total Number of Days Number of Promotional Staff Number of Promotional Staff per Location Total Number of Promotional Staff Salaries and Wages Estimated amount of salary per staff employed Total Cash to Allocate for 9 months Rental Fee for Promotional Activities Reliving Good Times with Presto: Resurrection of Presto Tivoli Ice Cream | 81 317 90 9 8 72 1 10 300.00 168,000.00
Estimated Rental Fee (9 months) Operating Expenses Estimated expense per location per day Total Estimated Operating Expenses
560,000.00 3,500.00 2,800,000.00
Total Budget for Promotional Activities 3,528,000.00 Table 60: Detailed Promotional Activities
2.
YEAR 1 2011
Marketing Timetable
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
TVC RADIO PRINT OUTDOOR ADVERTISING PROMO/PR YEAR 2 2012 TVC RADIO PRINT OUTDOOR ADVERTISING PROMO/PR YEAR 3 2013 TVC RADIO PRINT OUTDOOR ADVERTISING PROMO/PR Figure 23: GANTT Chart (2011-2013) JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
TVC will comprise of a story with different episodes. See Promotions Section in previous pages. Radio will be aired during peak months (Summer) and Ber Months (Holiday Season). Print will show the different products of Presto, as well as, the promotions of the said product. Outdoor Advertising will run for 7 months (one for summer and one for the Holiday Season).
Promo/PR will be implemented during peak months (Summer), during the rainy season (where sales are low) and during the Holiday Season.
C. Income Statement
Presto Tivoli Ice Cream Income Statement (2011-2013) % to % to 2011 Sales 2012 Sales Sales Less:Cost of Sales Gross Profit Less:Fixed Assets Depreciation General & Admin Expenses Marketing Expenses Equipment-Related Expenses Income Before Taxes Less: Taxes 101,683,200.00 38,614,148.22 63,069,051.78 815,208.33 7,140,000.00 40,876,436.00 752,500.00 13,484,907.44 35,589,120.00 37.97% 62.03% 0.80% 7.02% 40.20% 0.74% 13.26% 35.00% 68,196,686.76 54,021,681.00 44.18% 35.00% 117,674,645.78 73,111,752.00 56.33% 35.00% 154,347,660.00 40,780,605.64 113,567,054.36 978,250.00 7,182,000.00 37,210,117.60 26.42% 73.58% 0.96% 4.65% 24.11% % to Sales 20.63% 79.37% 0.96% 3.46% 19.11%
2013 208,890,720.00 43,095,385.92 165,795,334.08 978,250.00 7,226,100.00 39,916,338.30
Net Income
(22,104,212.56) -21.74% 14,175,005.76 9.18% 44,562,893.78 Table 61: Income Statement of Presto Tivoli Ice Cream (2011-2013)
21.33%
Behind the Numbers of the Income Statement

Cost of Sales (Estimated) Raw Materials Cost Electricity Water Labor (Wages) Packaging 2011 9,329,148.22 8,000,000.00 5,000,000.00 3,285,000.00 3,000,000.00 2012 20,295,605.64 8,500,000.00 5,200,000.00 3,285,000.00 3,500,000.00 2013 21,310,385.92 9,000,000.00 5,500,000.00 3,285,000.00 4,000,000.00 43,095,385.92
Grand Total 38,614,148.22 40,780,605.64 *It is assumed that there will be an increase of 5% in the raw materials. Table 62: Cost of Sales/Cost of Goods Sold (2011-2013)
General and Admin Expenses Wages Utilities Office Supplies Transportation Depreciation Expense (Computer)
2011 5,760,000.00 840,000.00 200,000.00 240,000.00 100,000.00
2012 5,760,000.00 882,000.00 200,000.00 240,000.00 100,000.00
2013 5,760,000.00 926,100.00 200,000.00 240,000.00 100,000.00 7,226,100.00
Grand Total 7,140,000.00 7,182,000.00 *It is assumed that there will be an increase of 5% in the utilities expenses. Table 63: General and Admin Expenses (2011-2013) Raw Materials Cost Xylithol Skim Milk Buttermilk Powder Cassava Flour Pandan Egg Yolk Condensed Milk All purpose cream Vanilla Extract Flavoring (Estimated) Grand Total (4 Gallons) Per Gallon Price (1 Gallon) 2011 YEARS FORECASTED 2012 1 Kg 1/2 Kg 1/2 Kg 600 g 2 leaves 4 pieces 600 g 300 g 3 tablespoons Unit
Price in Php 43.00 30.00 60.00 21.00 5.00 18.00 88.00 52.00 22.18 50.00 389.18 99.545 19,329,148.22 20,295,605.64
2013 21,310,385.92 *It is assumed that there will be an increase of 5% in the raw materials. Table 64: Raw Materials Cost (2011-2013)
X.
Attachments/Appendices A. Ice Cream Plant (Proposal from Eskimo, India) Please see the attachment after the Bibliography B. Euromonitor Forecasts
Forecast Sales of Ice Cream by Category: Volume 2010-2015 Source: Euromonitor
'000 litres 2010 654.72 130.81 6,364.43 3,705.31 2,659.12 54,595.27 53,961.31 53,957.71 3.60 633.96 2011 659.31 139.97 6,402.62 3,727.54 2,675.08 55,832.95 55,202.16 55,198.74 3.42 630.79 2012 662.60 146.96 6,434.63 3,746.18 2,688.45 56,832.75 56,195.65 56,192.32 3.33 637.09 2013 664.59 151.37 6,460.37 3,761.16 2,699.21 57,572.75 56,926.10 56,922.82 3.28 646.65 2014 665.92 154.40 6,479.75 3,772.45 2,707.30 58,041.04 57,381.45 57,378.20 3.25 659.58 2015 666.59 155.94 6,492.71 3,779.99 2,712.72 58,229.64 57,553.57 57,550.34 3.24 676.07
Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts - Take-Home Water Ice Cream
Forecast Sales of Ice Cream by Category: Volume 2010-2015 Source: Euromonitor

'000 litres Ice Cream 2010 61,745.24 2011 63,034.84 2012 64,076.95 2013 64,849.09 2014 65,341.11 2015 65,544.89
Table 64: Forecast Sales of Ice Cream by Category: Volume 2010-2015
Forecast Sales of Ice Cream by Category: Value 2010-2015 Source: Euromonitor

Ps million Frozen Yoghurt Ice Cream Parlours Impulse Ice Cream - Multi-Pack Dairy Ice Cream - Multi-Pack Water Ice Cream - Single Portion Dairy Ice Cream - Single Portion Water Ice Cream Retail Artisanal Ice Cream Take-Home Ice Cream - Take-Home Dairy Ice Cream -- Bulk Ice Cream -- Ice Cream Desserts 2010 145.20 186.51 1,167.95 2011 148.10 199.91 1,161.84 2012 150.32 208.63 1,163.38 2013 151.82 213.83 1,174.61 2014 152.58 216.25 1,191.80 2015 153.04 218.70 1,213.70 -
769.87
773.72
779.14
785.37
792.44
800.37
398.07
388.12
384.24
389.23
399.35
413.33
7,243.65 7,150.06
7,311.76 7,220.97
7,411.49 7,321.61
7,529.17 7,438.40
7,665.50 7,572.01
7,821.39 7,723.21
7,141.11 8.95
7,212.52 8.46
7,313.49 8.12
7,430.51 7.89
7,564.26 7.75
7,715.54 7.67
Ps million - Take-Home Water Ice Cream Ice Cream
2010 93.59
2011 90.78
2012 89.88
2013 90.77
2014 93.50
2015 98.17
8,743.30
8,821.61
8,933.81
9,069.43
9,226.13
9,406.82
Table 65: Forecast Sales of Ice Cream by Category: Value 2010-2015
C. Bibliography
Overview of the Industry: https://www.just-food.com/analysis/just-the-facts-ice-cream-in-thephilippines_id110524.aspx Market Research/Data, Consumer Profile, and Company Profile Euromonitor http://www.portal.euromonitor.com/Portal/DocumentView.aspx http://www.portal.euromonitor.com/Portal/ResultsList.aspx Interviews with Former Employees (Presto) Mr. Danilo M. Cruz (Sales Unit Manager, URC Presto) Mr. Jingo P. Fermin (URC Presto) Mr. Eduardo Policarpio Company Background http://www.enotes.com/topic/Universal_Robina http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=URC:PM http://www2.urc.com.ph/company_history.html http://www.pse.com.ph/html/ListedCompanies/listedcompanyinfo.jsp?securitySymbol=URC Universal Robina Corporation Mission-Vision Statements: http://www.universalrobina.com/2005/09/01/urc-mission-visionstatement/ Present Marketing Strategy (Positioning): http://www2.urc.com.ph/prods_bcfg.html Segmentation - http://www2.urc.com.ph/index.html# Current Value Proposition - http://www2.urc.com.ph/index.html 4 Ps of URC http://www2.urc.com.ph/prods_bcfg.html
http://www.universalrobina.com/wp-content/uploads/ http://www.jgsummit.com.ph/doc/urc-17a-200509.pdf Reasons for Failed Brands (General Ideas) Mr. Jose Rafael Lantins Guidelines Marketing Concepts Principles of Marketing, 13th Edition Other Marketing Data http://oohresource.multiply.com/journal/item/73/Available_Billboard_on_EDSA_Northboun d_EDSA_Camp_Aguinaldo_Santolan http://oohresource.multiply.com/journal/item/74/Available_as_of_today_EDSA_Cubao_Far mers_Parallel Pictures/Images http://www.google.com.ph/imglanding?q=Aha+GMA&um=1&hl=tl&sa=N&tbs=isch:1&tbni d=OWKoH4oT9ihaM:&imgrefurl=http://www.gmanews.tv/show/aha&imgurl=http://images.gmanews. tv/pa/main/aha.jpg&ei=7B1xTafvH43rrQeA5sHTCg&zoom=0&w=252&h=197&biw=1024 &bih=509 http://www.google.com.ph/imglanding?q=GMA+7&um=1&hl=tl&tbs=isch:1&tbnid=zAY7u SEvXAKLkM:&imgrefurl=http://justmypersonalopinions.blogspot.com/2010/01/pissed-offwith-gma-7s-remakesand.html&imgurl=http://2.bp.blogspot.com/_taZJUdNwXOY/S2Jl1w9GndI/AAAAAAAAA eU/f0rJQ41ZdVI/s400/gma7.jpg&ei=xR5xTZymH8TVrQeOtdzUCg&zoom=1&w=333&h= 337&iact=hc&oei=xR5xTZymH8TVrQeOtdzUCg&page=1&tbnh=111&tbnw=141&start=0 &ndsp=20&ved=1t:429,r:1,s:0&biw=1024&bih=509 http://images.google.com/imgres?imgurl=http://www.dvdtalk.com/reviews/images/reviews/1 53/1179085354_1.jpg&imgrefurl=http://www.dvdtalk.com/reviews/28046/ed-edd-n-eddythe-complete-secondseason/&usg=__LIVxFqDMhYD_Qgug6rq6nvqBh1A=&h=300&w=400&sz=33&hl=en&sta rt=0&zoom=1&tbnid=lhs5O09phexkpM:&tbnh=154&tbnw=205&ei=CR9xTa2DEIX5cbHxy PgC&prev=/images%3Fq%3DEd%2BEdd%2Band%2BEddy%26hl%3Den%26biw%3D102 4%26bih%3D509%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=350&vpy=138&d ur=535&hovh=194&hovw=259&tx=116&ty=97&oei=_x5xTbnUEcS4rAfvsNDSCg&page= 1&ndsp=8&ved=1t:429,r:1,s:0 http://images.google.com/imgres?imgurl=http://www.dvdtalk.com/reviews/images/reviews/1 53/1179085354_1.jpg&imgrefurl=http://www.dvdtalk.com/reviews/28046/ed-edd-n-eddythe-complete-secondseason/&usg=__LIVxFqDMhYD_Qgug6rq6nvqBh1A=&h=300&w=400&sz=33&hl=en&sta rt=0&zoom=1&tbnid=lhs5O09phexkpM:&tbnh=154&tbnw=205&ei=CR9xTa2DEIX5cbHxy PgC&prev=/images%3Fq%3DEd%2BEdd%2Band%2BEddy%26hl%3Den%26biw%3D102 4%26bih%3D509%26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=350&vpy=138&d ur=535&hovh=194&hovw=259&tx=116&ty=97&oei=_x5xTbnUEcS4rAfvsNDSCg&page= 1&ndsp=8&ved=1t:429,r:1,s:0 http://images.google.com/imgres?imgurl=http://1.bp.blogspot.com/_VbAy_UVyzYA/TUt3vg IT1EI/AAAAAAAAAuc/wnLusPWyx9w/s1600/mutya.jpg&imgrefurl=http://yatotchronicles
.blogspot.com/&usg=__hZfMYy0dP23nNDXZhPK93GPVMXY=&h=264&w=411&sz=27& hl=en&start=0&zoom=1&tbnid=JEdpZwKqucNqM:&tbnh=119&tbnw=163&ei=Yh9xTfPLIIKHrAeVzIjTCg&prev=/images% 3Fq%3DMutya%2BABSCBN%26hl%3Den%26biw%3D1024%26bih%3D509%26gbv%3D 2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=113&vpy=92&dur=91&hovh=180&hovw=280& tx=119&ty=92&oei=Yh9xTfPLIIKHrAeVzIjTCg&page=1&ndsp=17&ved=1t:429,r:0,s:0 http://images.google.com/imgres?imgurl=http://www.whynotcoconut.com/wpcontent/uploads/2010/03/tv5logo2.jpg&imgrefurl=http://whynotcoconut.com/2010/03/thetv5-kapatid-station-idrevealed/&usg=__hKJ2gb5dB7ecKoO0r0mJKlbZpGU=&h=300&w=300&sz=23&hl=en&st art=16&zoom=1&tbnid=8GDbEbHXTqLVBM:&tbnh=162&tbnw=146&ei=1x9xTbTQMsee cO3v0PgC&prev=/images%3Fq%3DTV5%26hl%3Den%26biw%3D1024%26bih%3D509% 26gbv%3D2%26tbs%3Disch:1&itbs=1&iact=hc&vpx=626&vpy=181&dur=575&hovh=225 &hovw=225&tx=129&ty=103&oei=zh9xTfeZNIrnrAelrcHSCg&page=3&ndsp=9&ved=1t:4 29,r:3,s:16 http://images.google.com/imgres?imgurl=http://2.bp.blogspot.com/FyXOHNxHNXE/TV1L0rR7A4I/AAAAAAAABk0/3aFuNtZt7RM/s400/abscbn.gif&imgref url=http://pinoybizsurfer.blogspot.com/2011/02/abs-cbn-dominates-2011-ustvawards.html&usg=__rTcD1Yu9Anxd7mHUp6E_OTPTJTI=&h=300&w=300&sz=16&hl=en &start=0&zoom=1&tbnid=y8C5wt8ZK6qHsM:&tbnh=173&tbnw=167&ei=FyBxTZm4HsbI rQeonojTCg&prev=/images%3Fq%3DABSCBN%26hl%3Den%26biw%3D1024%26bih%3D509%26gbv%3D2%26tbs%3Disch:1&itbs =1&iact=hc&vpx=295&vpy=132&dur=2187&hovh=225&hovw=225&tx=97&ty=109&oei= FyBxTZm4HsbIrQeonojTCg&page=1&ndsp=9&ved=1t:429,r:1,s:0 http://www.libre.com.ph/ http://en.wikipilipinas.org/images/9/9b/Love_radio_ph.jpg http://www.mbcsales.com.ph/plugins/content/jw_sigpro/sigpro.transparent.gif http://oohresource.multiply.com/journal/item/73/Available_Billboard_on_EDSA_Northboun d_EDSA_Camp_Aguinaldo_Santolan http://oohresource.multiply.com/journal/item/74/Available_as_of_today_EDSA_Cubao_Far mers_Parallel http://multiply.com/mu/oohresource/image/CFgCoVlpB3VEHvMREgR1Q/photos/1M/1200x1200/80/Slide1.JPG?et=Uhtxh7XSfYZD6QBnUifRtg&nmid=0 http://multiply.com/mu/oohresource/image/62ANgeFJWxXEG3HUfglQg/photos/1M/1200x1200/24/Slide1.JPG?et=XqWVaPWRRJcDfD9LuqJbCQ&nmid=0 Socialbaker.com Statistics http://www.socialbakers.com/charts/countries/country-users-ph-last-6-months.png http://www.socialbakers.com/charts/countries/country-age-pie-ph.png
Images Used
http://www.floridasoapsupplies.com/fragrances_h-k_108.html http://www.reallynatural.com/archives/2010/01/ http://durianmedan.com/ http://www.guardian.co.uk/commentisfree/2007/jun/18/strawberrysarniesforever http://youoffendmeyouoffendmyfamily.com/ginataan/halohalo-1/ http://nickobeano.wordpress.com/2008/01/21/facebook-cheese/ http://www.photl.com/en/161789 http://www.ehow.com/brown-spots/ http://www.squidoo.com/best-sweet-potato-recipes http://www.123rf.com/photo_838544_green-coconut-drink-on-whitebackground.html http://kalyespeak.com/tag/philippines/ http://www.pachd.com/free-images/food-images.html http://www.thephilippineisland.com/philippine-recipes/filipino-leche-flan-recipe.html http://www.mixmygranola.com/about/company/ http://recipes.terra-organics.com/2010/12/avocado/ http://theinksquad.com/ideas/22-sorbetes http://www.123rf.com/photo_7560969_scoops-of-ice-cream-isolated-on-a-whitebackground.html http://www.gettyimages.com/detail/skd288941sdc/Stockbyte http://www.123rf.com/photo_7197577_chocolate-icecream-in-an-icecream-coneisolated-against-a-white-background.html
http://www.indyposted.com/84345/top-10-low-carb-power-foods/ http://www.quitehealthy.com/nutrition-facts/breyers/198841.html http://www.travelpod.com/travel-photo/arnobs66/4/1083410133/sunlight-peeks-throughbaguio-s-pine-trees.jpg/tpod.html http://izsak02.com/Philippines2007Baguio.html
Ministop Branches Percentage Total Estimated Ministop Branches Puregold Branches Percentage Total Estimated Ministop Branches Total Robinson's Supermarket SaveMore Hypermarket Number of Mini-Groceries
250 http://ministopphilippines.multiply.com/journal 60% 150
Year 2009
46 http://beta.abs-cbnnews.com/business/04/25/10/puregold-supermarket-chain-eyes-26-new-outlets-2010 60% 28 19 http://www.robinsons-supermarket.com.ph/storelocator/store_locator.htm 10 http://www.smsupermarket.com/smsupermarket/save_more.php 10 http://smhypermarket.com/hypermarket/?p=420 100 Estimated 317

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Marketing 101 Final Pass March 6 Update

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Ateneo de Manila University

Loyola Schools John Gokongwei School of Management

Mr. Jose Rafael Lantin

Industry Category: Ice Cream

Abstract (150 words or less)

Attachments/Appendices a. Ice Cream Plant Proposal b. Euromonitor Forecasts c. Packaging Bibliography

Figure 1. Sales Value of Ice Cream in the Philippine (in PhP M)

Sales of Ice Cream by Category: Volume Growth Percentage (2005 2010)

Figure 2. Volume Growth Percentage of Ice Cream by Category (2005 2010)

Sales of Ice Cream by Category: Value Growth Percentage (2005 2010)

Figure 3: Value Growth Percentage of Ice Cream by Category (2005 2010)

Market Analysis (C.A.G.R.)

Figure 4. Market Analysis C.A.G.R.: Volume

Figure 5: Market Analysis C.A.G.R.: Value

Environmental Factors Economic Environment

Technological Advancements do not threaten the industry.

General Market Market

Ice Cream Industry (Philippines) Key Success Factors

Arce Dairy Coney Island

2009 43.83 39.75 3.93 12.49 100.00

2006 6.01 5.38 6.61 5.14 3.99 2.53 2.57

0.65 25.43 100.00

2006 39.93 7.84 3.54 1.96

Figure 6: Market Share of Packaged Ice Cream (1995 1996)

There are no weaknesses in this section.

C. Company Strengths and Weaknesses Analysis

Strong distribution channel.

Also primary consumers Sweet tooths.

Table 22: Entrepreneurs

2. Marketing Mix (Four Ps)

B. Specific Objectives and Targets (3 Years) 1. Market Shares

2013 4% Table 26: Market Shares (Actual and Forecasted)

Figure 8: Market Shares (Actual and Forecasted)

Figure 9: Sales Volume in Gallons (Actual and Forecasted)

Figure 10: Sales Value in Php (Actual and Forecasted)

2013 44,562,893.78 Table 31: Profits/Net Income (Actual and Forecasted)

Figure 11: Profits/Net Income (Actual and Forecasted)

Figure 12: Distribution - Number of Freezers (Actual and Forecasted)

Figure 13: Strategy Pyramid of Presto Ice Cream

Frozen Novelties Code Product Name FN1 Palamigz! FN2

Type Popsicle Cone

Available Flavors Vanilla, Cheese, Chocolate, Mocha, Dark Chocolate

FN3 FN4 FN5 FN6

Table 34: New Products Category Frozen Novelties (Presto)

Table 35: New Products Category Packaged Ice Cream (Presto)

UBEr Sarap Hello on Ice (hard biscuit)

Nips on Ice (hard candy)

(chocolate) (strawberry) (corn) (milk)

CUSTOMER NEED MET

DIFFERENTIATION/ USP COMPETITIVE ADVANTAGE POSITION IN THE MARKET

-Affordable -Availability -Familiarity with flavor

-Affordable -Availability -Familiarity with flavor

- craving for a fruit flavor - Convenience in buying

- available Pinoy flavors

- guilt-free consumption of chocolate

around Php 170.00 Php 260.00 (reference: SSG Supermart)

- Have a taste of diverse flavors

- guilt-free consumption of chocolate

- guilt-free consumption of chocolate

- guilt-free consumption of chocolate

3. Index versus Competition

Table 41: Comparison of Presto Brand with others (2011)

Figure 14: Distribution Set-Up/Map