Arce Dairy

 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 ne w 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 b y 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 pa y 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 thei r 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: 

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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.

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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.

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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.