CASE STUDY AMBROSIA CORPORATION –SAN AUGUST Presented to – Mr. Bill Evans.
-
Upload
coleen-andrews -
Category
Documents
-
view
215 -
download
2
Transcript of CASE STUDY AMBROSIA CORPORATION –SAN AUGUST Presented to – Mr. Bill Evans.
Group Members
• Rahul Tiwari• Jagan Mohanraju Vysyaraju• Kiavash Fayyaz Shahandashti • Lei Chen• Claudia Landaeta• Julio Cadiz Romero
• Vanita Kumar Kanesar• Hui Zheng• Adriana Coelles• Ruixin Wang• Karunagaran Shanmugam
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%
1988 1989 1990 1991 1992 19930
10000
20000
30000
40000
50000
60000
70000
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
Weakness• High Price.• Market Differentiation• Lack of Technology and
Finance.
Strength • High Market Share.• Brand Name.• Multiple Products.• Availability
Opportunities • Advantage of foreign resources.• High standard of living.• Mature Market.
Threats • Keen Competition.• More Industrial Cost
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