Table of Contents

Recommendation

Approval Sheet
Acknowledgement
Executive Summary
Table of Contents
List of Table
List of Figures
Acronyms
Chapter Page

I. Introduction ---------------------------------- 5
A. Company Background ----------------------------------- 6
II. Scope and Limitation ---------------------------------
III. Vision-Mission Statement and Objectives
A. Writing and Evaluating Company Vision and Mission Statement
B. Recommended Vision Statement ----------------------------------
C. Recommended Mission Statement ----------------------------------
IV. External Analysis
A. Economic Forces ------------------------------------
B. Technological Forces ------------------------------------
C. Competitive Forces ------------------------------------
D. Competitive Analysis: Porter’s Five-Forces Model -----------------

E. Forecasting Tools and Techniques ------------------------------------

F. External Factor Evaluation (EFE) Matrix --------------------------
V. Internal Analysis
A. Management ---------------------------------
B. Production/Operations --------------------------------
 EXECUTIVE SUMMARY

Selecta is a Filipino dairy products brand owned by RFM Corporation. Its milk
business is operated by RFM Corporation, while its ice cream business is operated
under a joint-venture with Unilever Philippines, Inc. (known as Unilever RFM Ice Cream,
Inc.) RFM Corporation is a publicly listed food and beverage company in the
Philippines. RFM is a manufacturer of flour and flour-based products, milk, juice drinks
and ice cream. As of June 2013, RFM had an asset base of P12 billion and a total
market capitalization of P17.1 billion. Ice cream is a sweetened frozen food typically
eaten as a snack or dessert. It may be made from dairy milk or cream and is flavoured
with a sweetener, either sugar or an alternative, and a spice, such as cocoa or vanilla,
or with fruit such as strawberries or peaches. It can also be made by whisking a flavored
cream base and liquid nitrogen together. Colorings are sometimes added, in addition to
stabilizers.

The mixture is cooled below the freezing point of water and stirred to incorporate
air spaces and to prevent detectable ice crystals from forming. The result is a smooth,
semi-solid foam that is solid at very low temperatures (below 2 °C or 35 °F). It becomes
more malleable as its temperature increases. The brand's beginnings can be traced
back to 1933[1] when Ramón Arce started pasteurizing carabao milk near his home in
Novaliches (then a part of Caloocan), where carabaos were in abundance. Arce would
establish his first dairy plant in 1935. Unilever RFM Ice Cream, Inc. would cite the
brand's foundation year as 1948. Arce began selling and distributing fresh milk in bottles
using the Selecta brand name to residences, restaurants and offices. Soon after, Arce
and his wife, Carmen, would come up with their own ice cream recipe made from
carabao milk. These products became the foundation of the family's Selecta business,
which later included the Selecta restaurants and bakery.
 I. INTRODUCTION

A. Company Background.

The Selecta ice cream brand can trace its roots way back to 1933 when Ramon
Arce, Sr. started his carabao milk business in Novaliches. Soon after putting the
business up, he and his wife Carmen began making their own ice cream recipes made
from the carabao milk and sold these in the iconic gold tin containers. Since then, the
taste and quality of Selecta ice cream have been the priority of the founders and the
company today. The Selecta business was continued by Arce's children after his
retirement in 1950. It would establish its Balintawak dairy plant in 1952. By the 1970s,
Selecta's carabao milk based ice cream and fresh milk became available in
supermarkets. Its milk was packaged in glass bottles while its ice cream was packaged
in gold colored tin containers.

In January 1990, RFM Corporation acquired the Selecta trademark from Arcecon Dairy
Products, Inc. (successor-in-interest to the Selecta business) and established Selecta
Dairy Products, Inc. to take over the production of Selecta ice cream. Under RFM
ownership, the recipe of Selecta ice cream was improved and aggressively marketed,
posing a serious challenge to then market leader, Magnolia. With its success, its ice
cream recipe would eventually shift to cow's milk. Much later, the gold colored tin
containers would be changed to gold colored plastic tubs. RFM also introduced its own
Selecta milk products which were made from cow's milk.

In January 1995, the family of Mauro Arce, the youngest son of Ramón and Carmen
Arce, revived the Arce family's ice cream business under a new name, Arce Dairy. Its
ice cream would continue to be made from the former Selecta Balintawak dairy plant
using carabao milk and packaged in gold colored tin containers, reminiscent of the
original Arce-era Selecta ice cream. In February 1999, RFM entered into a joint-venture
with Unilever Philippines, Inc. to take over the production and marketing of the Selecta
ice cream business.[8] For this purpose, Selecta Walls, Inc. was established (now
known as Unilever RFM Ice Cream, Inc.). The Selecta milk business continues to be
operated directly by RFM Corporation.

II. SCOPE AND LIMITATION

Selecta is one of the oldest brands in the Philippines, which stood the test of time and
one of the leading ice cream brands in the Philippine market. Selecta is one of the
delicious Ice cream, and the Competitors are Sebastian's, Carmen's Best, and Papa
Diddi's . This research would only conduct in the Places in the Philippines and will focus
on how the company will compete in the different brands of Ice creams in the
Philippines.

III. VISION-MISSION STATEMENT AND OBJECTIVES

A. Writing and Evaluating Company Vision and Mission Statement.

Vision:

At SELECTA, our vision is to encourage everyone to buy our delicious and affordable
Ice Cream. "Mas Masaya Talaga ‘Pag May Selecta!" (It’s really more fun when there’s
Selecta!) Capturing stomachs and hearts to become the world's most popular
pleasure food

Mission:

At SELECTA our mission is to have knowledge With its passion for exceeding the
expectations of consumers, unwavering dedication to quality, and unrelenting quest to
improve itself through its innovations, Unilever RFM Ice Cream Incorporated sees itself
winning stomachs and hearts to be become the world’s preferred pleasure food.

Evaluating the Vision and-Mission

To evaluate the vision-mission of SELECTA. I made a criterion wherein the elements of

statements are given and be criticized through the use of charts below:
Elements of Vision Statement YES NO

Future Oriented ✓

Inspiring and Challenging ✓

Motivating and Memorable ✓

Purpose Driven ✓

Short Enough ✓

Believable Enough ✓

Achievable ✓

Relevant ✓

Elements of Mission Yes No

Statement

Customers ✓

Product of Service ✓

Markets ✓

Technology ✓

Concern of Survival Growth ✓

and Profitability

Philosophy ✓

Self-Concept ✓

Concern the Public Image ✓

Concern of Employees ✓

B. Vision Statement Evaluation

 Former Vision

At SELECTA, our vision is to encourage everyone to buy our delicious and affordable
Ice Cream. "Mas Masaya Talaga ‘Pag May Selecta!" (It’s really more fun when there’s
Selecta!) Capturing stomachs and hearts to become the world's most popular
pleasure food

Selecta is known as :

1. Selecta has different Flavors

2. Wins stomach heart of Everyone

Recommendation:

● Capturing stomachs and hearts to become the world's most popular pleasure
food- In this Changing world, and Also changing what people desires, We as Business
Ownership, needs to know the Innovation of Food Industry Especially We are in
Sweetened Frozen Food. We don’t actually know what future holds, that’s why we need
to prepare ourselves about the desires of our customers regarding to a Sweetened
Frozen Foods.

RECOMMENDED VISION- At SELECTA our mission is to have knowledge With its

passion for exceeding the expectations of consumers, unwavering dedication to quality,
and unrelenting quest to improve itself through its innovations, Unilever RFM Ice Cream
Incorporated sees itself Good quality Ice cream at a Fair Price to meet the
Customers Demand

Selecta is known as:

1. Natural Ice cream in the Philippines

2. Sugar Free Ice Cream and Lower Price

OLD VISION NEW VISION

At SELECTA our mission is to have At SELECTA our mission is to have
knowledge With its passion for exceeding knowledge With its passion for exceeding
the expectations of consumers, the expectations of consumers,
unwavering dedication to quality, and unwavering dedication to quality, and
unrelenting quest to improve itself through unrelenting quest to improve itself through
its innovations, Unilever RFM Ice Cream its innovations, Unilever RFM Ice Cream
Incorporated sees itself winning Incorporated sees itself Good quality Ice
stomachs and hearts to be become the cream at a Fair Price to meet the
world’s preferred pleasure food. Customers Demand

Selecta is known as : Selecta is known as:

1.Selecta has different Flavors 3. Natural Ice cream in the

Philippines
2.Wins stomach heart of Everyone
4. Sugar Free Ice Cream and Lower
Price

C. Mission Statement Evaluation

Former Mission

At SELECTA our mission is to have knowledge With its passion for exceeding the
expectations of consumers, unwavering dedication to quality, and unrelenting quest to
improve itself through its innovations, Unilever RFM Ice Cream Incorporated sees itself
winning stomachs and hearts to be become the world’s preferred pleasure food.

Recommendation:

Philosophy- Setting yourself apart from business competitors is accomplished in

different ways. Ideally, a company has a unique product or service that's better than
products or services that its competitors offer. But what happens when all things are
equal? Your core values as a company are what set you apart. These core values
become the business philosophy that your team and your clients experience. As a
business leader, business core values start with your core values. When you integrate
your values into the business philosophy, your values become part of the company
culture. A company that has a positive culture tends to be more efficient and
productive.

RECOMMENDED MISSION-

To make, distribute, and sell the finest-quality ice cream and euphoric concoctions with
a continued commitment to incorporating wholesome, natural ingredients and promoting
business practices that respect the Earth and the Environment.

To operate the Company on a sustainable financial basis of profitable growth,

increasing value for our stakeholders, and expanding opportunities for development and
career growth for our employees.

OLD MISSION OLD VISSION

At SELECTA our mission is to have To make, distribute, and sell the finest-
knowledge With its passion for exceeding quality ice cream and euphoric
the expectations of consumers, concoctions with a continued commitment
unwavering dedication to quality, and to incorporating wholesome, natural
unrelenting quest to improve itself through ingredients and promoting business
its innovations, Unilever RFM Ice Cream practices that respect the Earth and the
Incorporated sees itself winning stomachs Environment.
and hearts to be become the world’s
To operate the Company on a sustainable
preferred pleasure food.
financial basis of profitable growth,
increasing value for our stakeholders, and
expanding opportunities for development
and career growth for our employees.

IV. EXTERNAL ANALYSIS

 A. Economic Forces

Unemployment Rate

The food industry is one of the most flourishing sector in the market. This is the
reason why many entrepreneurs invest in selling food various items. Ice cream is a
favorite of almost all people and Selecta ice cream is one of the best-sellers. If you want
to invest in the food industry, franchising Selecta ice cream products can be the best
option. It’s a best idea to open such business venture since ice cream and other frozen
desserts can only cool down the temperature but also uplift the mood and happy
hormones. This is also a perfect choice of business because of the tropical climate in
the Philippines. Thus, ice cream is viable throughout the year.

Market Size

Selecta has established itself in the most basic distribution areas, having provided
thousands of freezers to various retail outlets and scooping stations among the
Philippines. The competition intends to step up their saturation in these outlets, as seen
in the efforts of Magnolia and Arce to improve their accessibility. Given that there is
already considerable effort in continuing to expand their saturation in these distribution
areas, Selecta should go beyond these areas and start reaching out to people outside
the malls and stores, specifically those willing to avail of ice cream but are in no position
or have no intention of going to these distribution areas

Per Capita Income

According to market research conducted in 1996, 80 per cent of Filipino

consumers bought on impulse (they bought only upon passing an ice cream shop or
scooping station, but without an intention to buy first); 98 percent ate ice cream in the
comfort of their home; and 70 percent of the time, ice cream was an afternoon snack.
Furthermore, studies showed that per capita consumption of ice cream was less than a
fourth of a gallon per person per year. In 1992, it stood at 0.23 gallons per person and
declined to 0.20 in 1993. On average, domestic ice cream market was 13.8 million
gallons from 1991-1993, worth an estimated P 2.5-3 billion per annum. Bulk ice cream
comprised 86 percent of the industry sales while the rest was accounted for by frozen
novelties
Technological Forces

Given that Selecta already holds a dominant position in the ice cream market,
and that their production capabilities, technologies, and distribution systems are
comfortably on par with the competition, Selecta should look into countering efforts of
the competition to gain better footing in any of these aspects. Common in all
competitors is their aim to expand and develop their distribution systems to make their
products more accessible. It is therefore proposed for Selecta to look into further
innovating its distribution system to ensure their footing in the market

Criteria SELECTA MAGNOLIA ARCE DAIRY

Food You can buy You can buy You can buy Arce Dairy in
Availability selecta in Magnolia in different stores Private Stores,
different stores different stores and online shops around the
Private Stores, Private Stores, Philippines
and online and online shops
shops around around the
the Philippines Philippines

Price Selecta Prices Magnolia Prices Arce Dairy Prices depends on

depends on the depends on the the sizes and flavors
sizes and sizes and flavors
Ranging 100-320
flavors
Ranging 150-
Ranging 80-385 350

Payment Cash, Credit Cash, Credit Cash, Credit Card or Online

Option Card or Online Card or Online Payment
Payment Payment

Flavors of Ice -Supreme -Ube- Mangom, - Atis Delight -Blueberry

cream Cookies and Buko,-Pandan, - Cheesecake · Cheese · Choco
cream Avocado, -Thai - Orange Peel · Choco Peanut ·
-Supreme Tea, -Ube Chocolate Cashew ·-
Rocky Road Ice Macapuno, Chocolate Crunch · Coffee
cream Lychee, Halo- Crumble.
halo and Barako
-Doublre dutch
Bean
-Coffee Crumble

-Choco Almond
Fudge

-Black forest