CASE STUDY

AMBROSIA CORPORATION –SAN AUGUSTPresented to – Mr. Bill Evans

Group Members

Agenda• Introduction

- Ambrosia Corporation

• Problem statement

• Analysis -Product analysis -Place analysis -Promotion analysis -Competition analysis -Market analysis - Brand Positioning analysis -Sales analysis

• Results & Solutions

• Conclusion

• Q & A

1925, San August bought the Trademark “Ambrosia”. 1981, Joint venture with New Zealand Dairy Board and formed

(PDPC). 1991, Transformed into wholly owned subsidiary of San August

Corporation. Ambrosia Business Included the following:-

Ambrosia Corporation

Objectives - Strengthen its Market Dominance - Earn Higher Profits

Strategies for Achieving Objectives - Focus on the Consumer driving force (Impulse buying) - Expansion of capacity to meet market demand.

- Attaining international quality standards.

Frozen Desserts and Snacks

Problem Statement

What should be recommend to Ambrosia Corporation in order to maintain its competitive dominance in this rapidly changing industry with

the entry of foreign brands?

Problem Problem

Entry of foreign brand.

Competitive dominance.

Expanding and distribution.

Manufacturing and Advertising.

Economies of scale.

Sales AnalysisSales Analysis

Year 1988 1989 1990 1991 1992

Net sales 30866 36714 43815 53332 66665

Difference NA 5848 7101 9517 13333

% of increase in sales

NA 18.94% 19.34% 21.72% 25%

Sales Analysis cont..Sales Analysis cont..

In 1992 Ambrosia’s market share in the ice cream market place was about

75%, compared to 77.3% in 1991.

Though the market share has come down by 2.3% a forecast of the sales

has been made with an increase of 3.88% projecting to 25%.

For projecting the sales we can invest more on:

Buying new technology, new product formulation and colours of ice

creams.

Give offers of new products to the customers to create awareness,

increasing market indirectly increasing sales of Ambrosia.

Product Analysis Product Analysis

BRAND NAME Brand loyalty Backbone in the market to introduce new product and differentiate from its

competitors.

PRODUCT QUALITY Improved product quality and product formulation. Development of new products and flavors.

SCOPE OF PRODUCT Satisfy consumers’ taste with wide variety of flavors.

PRODUCT AVALIABLITY IN MARKET AND DISTRIBUTION Product availability in market is 60 % in the retail market . 30 % of prepared food outlets.

Place Analysis Place Analysis

Present:• Retail outletsSupermarketsConvenience stores• Food outletsBake shopsRestaurant Ice cream Shops Future Options:• Small shops in railway station• Shops near schools, universities

Promotion Analysis Promotion Analysis

TRADE PROMOTIONS: Love hours: from 22 hours to 00 hours, buy one get one free.

CONSUMER PROMOTIONS Scratch card: for buying more than 100 peso get the chance card.

ADVERTISING

Print media Electronic Media Web media

Market Analysis -Behavior SegmentationMarket Analysis -Behavior Segmentation

86% of consumers bought ice cream on impulse.

98% of consumers ate ice cream at home.

73% of consumers ate ice cream as an afternoon snack. According to

different groups launch different products.

The major reasons for eating ice cream were specific occasion, flavor,

fondness and refreshment.

Ambrosia should launch more personalized products and improve

customer satisfaction.

Market Analysis - Market ShareMarket Analysis - Market Share

Ambrosia’s market share in 1991 was around 77%.

In 1991, Ambrosia was 77.3%, Selecta was 7.3%; in the first half of 1992,

Ambrosia was about 75%, Selecta was 15%.

In 1991, Ambrosia’s total revenue was 2.83billion.

In 1991, Ambrosia Financial Overview as follows:

Market Analysis - Market GrowthMarket Analysis - Market Growth

Frozen desserts and snacks category was expected to double

by 1998.

Selecta bought a new single-serve machine capable of

producing 3,000 gallons per day

Purefood had acquired an APV Glacier brand machine to

produce single-service.

Presto‘s overall strategy was to focus on single-serve novelty

items.

Market Analysis - Market Forecast Market Analysis - Market Forecast

Through compare data in 1992 and 1993 years, we can find that domestic competitor’

production and capacity has been significantly improved.

Ambrosia’s capacity expansion to be completed by the beginning of 1993 was expected

to almost double current capacity.

Philippine consumption of ice cream was expected to be the same or a little increased in

1992.

*The market share analysis in 1992, we suppose no foreign competitor into ice cream market in Philippine.

Company 1992 1993

Production

Capacity Market Share Production Capacity Market Share

Ambrosia  10.5 13  75% 12  21  78% 

Selecta 1.5 2.7 15% 1.7 4.6 16% 

Coney 0.5 1.5 6% 1.4 4.7 3% 

Presto 1 3.3 1.5 3.3 2.5% 

Competition Analysis Competition Analysis Company RFM PUREFOODS CPCBrands Selecta Coney Island Sorbetero PrestoMarket Share (1991)

7.3% 2.4% 3.1% 10%

Strategy Parity pricingPremium positioningFocus on major retail outlets in key provincial urban centresDoubling of capacity (8000 gal/day)

Multi brand strategyAttracting Ambrosia”s carito vendors to carry Purefoods productParity pricing with Ambrosia as of 1992  

Single serve novelty itemsLower pricing

Asset acquisition New single – serve machine (3000 gal/day)22 new refrigerated route trucks

APV Glacier brand machine to produce single serves

 

External developments

Started negotiations with Cadbury IC bar for their single serves

Expanded distribution using Smokey’s/ Scoop n’ Steaks outlets 

 

New Launch   3 new flavours for Sorbetero Ice Sarap Tivolo sundae & FunwichCandy bar segment (Big Bang & Cloud 9) 

New product strategies

  Started offering 10% rebate to selective retail outlets 

 

Future product     Tivoli bar (Ube Nangka & Strawberry)

Brand Positioning Brand Positioning

Brand Nestle Haagen-Dazs Mars Amobrosia

TASTE

QUALITY

PRICE

ACCESS

AWARENESS

SWOT SWOT

AnsoffAnsoff

Market penetration

Product Development

ResultsResults

Market Penetration: Increase distribution Advertising

Search of advanced technology and tools

92 91

Net sales 100% 66665 100% 53332

Manufacturing 34% 22666.1 45% 18132.88

Marketing 15% 9999.75 10% 7999.8

Place and Distribution 10% 6666.5 5% 5333.2

Advertising 13% 8666.45 11% 6933.16

Promotion 8% 5333.2 6% 4266.56

Net Profit 20% 13333 23% 10666.4

Results (cont…)Results (cont…)

Ask existing investor to put more money

Introduce multiple products

Costumer satisfaction

The Seven Dimensions of Strategic Innovation The Seven Dimensions of Strategic Innovation

A Managed Innovation Process – Combining Non-Traditional and Traditional Approaches to new manufacturing technologies

Strategic Alignment – Building support between Ambrosia and its suppliers with shared visions, goals and actions

Industry Foresight – Understanding emerging trends, new technologies, competitive dynamics and alternative scenarios.

Consumer/Customer Insight – Understand needs, desires and tastes of existing and potential consumers.

Core Technologies and Competencies – Improve internal capabilities, organizational competencies and assets

Organizational Readiness – Implement new ideas, strategies and operations.

Disciplined Implementation – Effective Implementation.

Solutions – Strategic InnovationSolutions – Strategic Innovation

Increase distribution 50 new shops in front of schools and universities. 100 new shop in train station and bus stands

“All men can see the tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.”

– Sun Tzu

Q & A

Thank you