You are on page 1of 6

ARCE DAIRY

ICE CREAM
(CASE ANALYSIS)



Presented BY:
Andaya, Jennifer m.
Cano, mabelle sharla t.
Mangonon, linalee a.
Monsalud, maricris o.

Presented to:
Prof. ernie “bhong” radin, mba





I. TIME CONTEXT:
Year 1991 where there introduces the new brand name which is ARCE DIARY
ICE CREAM.

II. VIEW POINT:
Lack of advertising and promotional strategy in introducing its new brand name
because there are only using word of mouth advertising.

III. STATEMENT OF THE PROBLEM

MAJOR PROBLEM:
In what ways does Arce Dairy Ice Cream compete in the ice cream industry and
regain success using its new brand name?
MINOR PROBLEM:
In what ways does Arce Dairy Ice Cream sufficiently strengthen its promotional
and distribution strategies?

IV. STATEMENT OF OBJECTIVE

MAIN OBJECTIVE:
To be able to increase in three month’s time the company’s market share in the
industry by 5%.
MINOR OBJECTIVE:
To be able to gain a favorable market control in the succeeding years.

V. AREAS OF CONSIDERATION:

Strengths:
1. Arce Dairy Ice Cream is made of fresh carabao’s milk (“all natural”);
2. The finished product is tastier and richer (more flavorful);
3. They have variety of ice cream flavors;
4. They use fresh ingredients like whole seasonal fruits and other natural
products;
5. Arce Dairy Ice Cream has distinct taste and high quality (the firm rejects
delivery of ingredients that do not pass high quality standards, no matter how
inexpensive);
6. They have hundred heads of milking carabaos in the Arce dairy farm; and
7. Their ice cream product has been in the business for years (although Selecta,
their former name is now being carried by a competitor, RFM Corporation).

Weaknesses:
1. Poor marketing efforts which resulted to local market share (since they seems
to be contented catering to their existing customers only);
2. Low promotional and distribution strategies;
3. Limited outlet/branch; and
4. They have sold their former name “Selecta” which have already gained brand
equity.

Opportunities:
1. People’s acceptance to its new brand name;
2. Maintain company image;
3. Increase in sales once their market responds to them positively;
4. Increase in market share;
5. They could introduce new product line using their fresh milk;
6. More flavors to introduce in the market.
Threats:
1. Common in all competitors are their intentions to greatly expand their
promotion and distribution capabilities (Magnolia, Selecta, Presto, Coney)
2. Other major brands offer a large assortment of flavors of ice cream.
3. Shelf space is so limited that ice cream suppliers will often pay supermarkets
to place their brand in the premium shelf space locations (more costly).

VI. ALTERNATIVE COURSES OF ACTION: (ACA)
ACA I. By conducting “ICE CREAM FEST” in different barangays nationwide
Advantages:
a. It will be known in different community/barangay nationwide
especially in provinces, brand awareness will increase.
b. It will gain public trust and be patronized.


Disadvantages:
a. It will increase its advertising/promotional expense
b. It will be difficult to organize in different locations in terms of
communicating to the officials (government) who control or influence
them. The company should carefully select their target customer
groups and location.

ACA II. By having free taste to the public
Advantages:
a. It will increase a product’s consumption rate, Filipinos are fund of
receiving something for free, and Filipino customers can come into
contact with the real product (product accessibility).
b. It can enlarge a product’s market segment penetration, or the product’s
total sales in proportion to the category’s competition, customers’ will
be aware what does it taste and its difference to other brands
Disadvantages:
a. To effectively promote a brand through distributors, if the distributor
does not understand the brand or product well enough, it may pass the
wrong information to the customers.
b. It will increase cost and expense in giving customers an experience in
tasting the product.


ACA III. By promoting using social networking sites
Advantages:
a. It is easy to spread information because internet is widely used
nowadays. It gives businesses the opportunity to build relationships
with their existing and potential customers by sharing tips and blog
content, soliciting feedback, engaging them in trivia, sharing pictures
and videos, and driving visitors to their websites.
b. No need to increase advertising cost because promoting in social
networking sites is for free.



Disadvantages:
a. Setting up a social media account takes less than 30 minutes, but
managing a social media account day to day is a time investment,
many small-business owners hesitate to make. A successful social
media campaign counts on interaction between a company and its
customers.
b. While it's beneficial for businesses to get feedback from their
customers, social media makes the feedback public. If a customer has
a bad experience with your brand, he may be compelled to share the
experience on your social network profile. As a business owner, you
have to be prepared to handle negative feedback immediately, before it
ruins your brand's reputation.


VII. RECCOMENDATION:
We will recommend the Alternative Courses of Action (ACA) I because by
conducting the “ICE CREAM FEST” it will not only help ARCE DAIRY ICE CREAM to be
well known and to give awareness to people about their brand but also to gain loyal
customers by giving them activities that promotes camaraderie within their community which
will also sustain memories for the rest of their lives. Existing and potential customers will
gain trust because ARCE DAIRY ICE CREAM will give importance to the quality of
product they will provide while having reasonable price and not setting aside its interaction
to the people they are offering and dedicating their product.

ACTION PLAN:
 First, ARCE DAIRY ICE CREAM will choose the locations where in
there is poor awareness and distribution of the product to conduct the said
event which is the “ICE CREAM FEST”.
 Second, after choosing the first location, the necessary steps or actions
should be done, like communicating it to the officials or legal management
handling the location.
 Third, after setting up the legal preparations it’s time to promote using
print advertisements like posting tarpaulin and giving leaflets to announce
the said event, what, where and when it will happen.
 Finally, conduct the event with different activities suitable for all ages like
games and with interaction to one another. Give prices and freebies
indicating the name of the product ARCE DAIRY ICE CREAM. And the
most special part of the event is giving away free ice cream (free taste)
with different flavors.
 Because of this action plan, ARCE DAIRY ICE CREAM will
not only promote their product, gain potential customers,
increase their market share in the ice cream industry, and gain
favorable market share for the succeeding years, but also
putting smile to every Filipino people’s face.