Brand Current Situation

San Miguel Corporation (SMC) has access to all distribution channels which allows Magnolia
ice cream to expand its customer reach. Magnolia’s revenue is obtained through modern trade
channels such as hypermarkets, supermarkets and convenience stores and general trade such as
“sari-sari” stores and small groceries. But according to Nielsen as of June 2016, Unilever-RFM
is the dominant player while Magnolia has 8%. Magnolia also currently holds a share in other
markets such as Thailand, the United States, Australia, Malaysia, and Singapore. Magnolia
wanted to create an even broader distribution network for its product and expand its customers
reach therefore, in 2017, Magnolia signed a processing arrangement with an Italian ice cream
maker to produce Magnolia’s Best of the Philippines ice cream line for the European market.
Magnolia pursues marketing initiatives to promote their new and existing flavors, as well as to
maintain and enhance brand awareness of its existing Magnolia products. These initiatives
include media advertisements featuring Filipino celebrities with its new brand ambassador
Kathryn Bernardo who which one of the most sought-after celebrity brand ambassadors,
sponsorship of special events, and other merchandising activities. Magnolia also taps various
channels such television and digital space. Magnolia is known for these unique Filipino-inspired
ice cream flavor combinations that this recently released from Magnolia’s Best of the Philippines
ice cream collection. With its latest, Magnolia Avocado Classic Ice Cream, Magnolia Mango
Toffee Nut Ice Cream, Magnolia Quezo Mangosteen Ice Cream and Magnolia Ube Salted
Caramel Waffle Ice Cream with carabao’s milk. Which is said to be lower in cholesterol
compared to cow’s milk as well as having a higher calcium content. These reflect the Magnolia’s
commitment to maintain their dominance and continue being one of the market leaders in the ice
cream industry in the Philippines.