Eunice keen A.

Andal
BSBA- 2a Case study

I. Time context
1991

II. Viewpoint
Arce Dairy was originally “SELECTA”. But due to family conflict, the Arces were forced to sell
“Selecta”. The Arce’s said that if they don’t resurrect their ice cream business, their grandfather might
resurrect from the grave and revive the business himself. After years of hard work, the Arces finally got
back on their feet, thus “ARCE DAIRY”.
The Arce’s business started in 1935 when Don Ramon Arce, Sr., father of Don Mauro,
established the Ice Cream Business. Don Ramon has adopted the policy “THERE IS NO COMPROMISE
FOR QUALITY”. He has not only handed this philosophy down to the third generation of Arces running
the business, but made his own principle too “Machines Don’t Make Miracles – What You Put In The
Machines Is What Comes Out”.

III. Statement of the problem

Arce Dairy produces high quality ice cream products that are proven to be better tasting than
most leading ice cream brands and could actually compete with important brands. BUT, they obviously
lack of promotions, therefore a lot of people aren’t even aware that a certain “Arce Dairy” ice cream
brand exists.

IV. Objectives
1. Increase their market share from 20 % to more.
2. Lack from any use of advertisements and promotional activities
3. Poor product distribution, not visible on small retail stores

V. Areas of consideration/s
Strength:
1. Much cheaper than other brands
2. Maintained a clean reputation for making quality ice cream, proven by several awards given
to Arce Dairy
3. Arce Dairy ice cream is scientifically proven much healthier compared to leading ice cream
brands
4. Has a variety of unique ice cream flavours not available in other brands
5.Made from carabao’s milk way more nutritious than cow’s milk. Carabao’s milk also contains
very little cholesterol, compared to other milks.
6. Owned 21-hectare farm buffaloes in the Philippines
Weaknesses:
1. Has very limited advertising/promotional materials, leading to unpopularity amongst the
masses
2. The product is poorly distributed, making it available to very limited stores and locations
3. Not top of the mind when asked about an ice cream product
4. Has a “local” image, therefore, viewed as “cheap”. “Carabao milk” screams “LOCAL”. There’s a
risk of driving away our target market. Therefore we need to hush on the carabao milk subject.
5. They sold their brand name “Selecta” to RFM
Opportunities:
1. Health and wellness campaigns encouraging people to go for the healthier choice
2. A social media network serving as an effective vehicle in product promotion
3. New ice cream flavors
Eunice keen A. Andal
BSBA- 2a Case study

4. Contentment on their captured market

Threats:
1. Heavy promotion and advertising of competitors
2. Economic Crisis
3. The entrance of new ice cream brands and flavors, adding competition for market share
4. New trends like Frozen Yoghurts, Milk Tea, etc.

VI. Alternative courses of actions

1. Come up with an intensive promotional campaign. OUT OF HOME ADS. BILLBOARD-To be
located along EDSA. TAXI AD. PRINT ADS - To be published in magazines such as Healthy Living,
Men’s/Women’s Health, Cosmopolitan, Glamour, and Yummy magazine. Including “free-taste” to the
different market area will help.
2. Create an advertisement targeting health-conscious customers, which almost all people are
now. We can come up with a tag line, “ARCE, THE SEXY ICE CREAM.”? Advertise and promote Arce
Dairy’s new “sexy” image. Healthy + Delicious =? , “GUILTLESS PLEASURE”. Release a TVC to be aired
during prime time. Take advantage of social media opportunities in promoting the brand.

VII. Recommendation
Since, Arce Dairy’s has low market share compared to other Ice Cream brands, and to think that
they have an edge for they continue the quality of their ice cream, the “richer and tastier” and satisfy
their captured market.

To make the alternative actions effective, the company must compete with the other ice cream industry
to increase their market share. They must see to it that they should not just focus on their captured
market, but to really expand their market. As what have mentioned in the case, they are already
satisfied with their captured market, how much more if they will really expand it. They should branch
out and let the people taste their product. They should provide some mini trucks for ice cream deliveries
to small retail stores; also in consignment with other business who serves ice cream to the costumer.

In today’s generation, most people won’t try the product if they haven’t seen or taste it. Arce Dairy
should try conducting a “free taste” session for every random place where many people are visible. And
if they will like the product, they can purchase it.

Doing some promotional and advertising activities will also help increase their market share. Why?
Advertisements are really effective, because people will notice it and will be curious about the product

VIII. Conclusion/ Detailing action plan

Arce Dairy produces high quality ice cream products that are proven to be better tasting than
most leading ice cream brands and could actually compete with important brands. BUT, they obviously
lack in promotions, therefore a lot of people aren’t even aware that a certain “Arce Dairy” ice cream
brand exists. Therefore, creating an advertisement targeting health-conscious customers, which almost
all people are now. Take advantage of social media opportunities in promoting the brand” is the best
course of action. ACA 2 can definitely increase and expand their market share. Also, this will create
awareness to the public that Arce Dairy does exist. This is the best way to effectively reach their target
market, the people and customers. As Arce Dairy started to be introduced to the public, they can start
the expansion of the distribution of the product to convenience stores like 7-11, Mini-stop, Family Mart
and etc. and to medium size sari-sari stores.