Sustaining Market Leadership in the Ice Cream

Industry: A Case Analysis on Selecta

A Strategic Management Paper

presented to the
School of Management
UNIVERSITY OF THE PHILIPPINES CEBU
Gorordo Ave, Cebu City, 6000 Cebu, Philippines

In Fulfillment
of the Requirement for the Course
Introduction to Management (MGT 101)
First Semester, SY 2024-2025

Aurelio, Arianna Bernadette

Ausejo JR., Franklin
Barbanida, Samantha Claire
Batiancila, Samantha
Bataluna, Gabriel Vinz
Labores, Hanna
Zaldivar, Joaquin Iñigo

DECEMBER 2024
 ACKNOWLEDGEMENT

We would like to express our heartfelt gratitude to everyone who supported and
guided us throughout the completion of this project.

First, we extend our deepest appreciation to our instructor, Mr. Vincent Crist Lipayo,
for his valuable guidance, constructive feedback, and encouragement. His insights
were instrumental in shaping our work.

We also express our heartfelt appreciation to University of the Philippines-Cebu for

providing us with exceptional education and fostering an environment of excellence
and innovation.

Lastly, we acknowledge each other for our collective effort, teamwork, and
dedication in overcoming challenges and ensuring the success of this project. This
accomplishment would not have been possible without the collaboration and
determination of every member of our group.

Thank you to everyone who played a part in our journey.

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 TABLE OF CONTENTS

ACKNOWLEDGEMENT……………………………………………………………... i

TABLE OF CONTENTS……………………………………………………………… ii

LIST OF TABLES…………………………………………………………………….. iii

LIST OF FIGURES…………………………………………………………………… iv

I. EXECUTIVE SUMMARY 6
STATEMENT…………………………………………..

II. STATEMENT OF THE PROBLEM………………………………………………. 7

III. MISSION AND VISION STATEMENTS………………………………………… 7

IV. 8
OBJECTIVES………………………………………………………………………

V. ASSESSMENT/ANALYSIS OF FIRM’S EXTERNAL ENVIRONMENT…….. 8

VI. ASSESSMENT/ANALYSIS OF FIRM’S INTERNAL ENVIRONMENT…….. 15

VII. SWOT ANALYSIS……………………………………………………………….. 20

VIII. STRATEGY EVALUATION OF 24

ALTERNATIVES……………………………

IX. STRATEGIC CHOICE……………………………………………………………. 29

X. IMPLICATIONS OF THE STRATEGIC 30

AGENDA……………………………...

XI. APPENDICES…………………………………………………………………….. 34

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 LIST OF TABLES

Table 1. (9) Essential Components………………………………………………… 8

Table 2. External Factor Evaluation (EFE) Matrix………………………………… 12

Table 3. Internal Factor Evaluation (IFE) 17

Matrix…………………………………...

Table 4. SWOT Matrix……………………………………………………………….. 20

Table 5. Quantitative Strategic Planning Matrix (QSPM).................................... 23

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 LIST OF FIGURES

Figure 1: Analysis of Market Shares from Statista……………………………… 15

Figure 2. RFM Corporation: Financial Statements…………………………….. 32

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I. EXECUTIVE SUMMARY STATEMENT

1933, the Selecta ice cream brand was created when Ramon Arce, Sr. started his carabao milking
business in Novaliches. He and his wife Carmen began to develop ice cream recipes made from pure
carabao milk and sold those ice creams in iconic gold tin containers. The Selecta ice cream's taste
and quality have always been the priority of the founders and the company. In 1990, RFM Corporation
bought the Selecta brand from its founders, Arecon Dairy Products, Inc., and established Selecta
Dairy Products, Inc. to take the production of Selecta Ice Cream. Under the RFM Corporation, the
Selecta ice cream was further developed, improved, and heavily marketed; Selecta became a threat
to other big brands such as Magnolia and the international brand Nestle. With Selecta being the no. 1
ice cream company in the Philippines, Selecta gained success, which led to the joint-venture
agreement with Unilever Philippines in 1999.

Ice cream, one of the most famous desserts worldwide, mostly in our country due to our hot weather,
is used as a refreshment any day. Ice cream is bought for special events or occasions and as an
everyday refreshment. The ice cream industry caters to most consumers in the market by offering a
lot of flavors and choices. Consumers may only sometimes find some flavor feasible, but there is
always a flavor available that the consumer will love. Despite being the no. 1 ice cream brand in the
Philippines, Selecta still needs help with the industry. The availability of foreign brands in the
Philippines, like Haagen-Dazs, Dreyers, and Baskin Robbin, offering premium quality products, is one
of the competitors in the industry. The competition in the ice cream industry lies beyond many factors;
regardless of the challenges, Selecta consistently seeks to maintain its position in the market and still
be the number one ice cream brand in the Philippines. Like the other competitors in the industry,
Selecta is a brand offering a wide variety of ice cream flavors. Among its products are ice cream with
a lower fat and sugar content and enriched with calcium nutrients from fruits. Selecta's great passion
for serving consumers that exceed their expectations, continuous dedication to quality and
improvement, and innovations, Selecta itself sees these factors as the winning ice cream and the
world's most preferred ice cream brand.

The ice cream industry in the Philippines is still in the process of growth and development. Other
brands like Arce Dairy are improving their market development by increasing their location in Metro
Manila. Magnolia is enhancing its operations through its cold storage facilities and freezer networks.
Selecta's moving through product development by offering unique, locally inspired flavors
differentiated the brand from competitors in the existing market, aided the company's overall
marketing strategy, and sustained its place as the number one ice cream brand in the Philippines. The

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highest priority of Selecta was to create strategies that would help the company maintain and sustain
its profitability and position in the market industry of ice cream brands.

II. STATEMENT OF THE PROBLEM

Selecta, the no.1 ice cream company in the Philippines, is known for its creaminess, variety of flavors,
and iconic gold can packaging. Selecta faces ongoing challenges despite its commitment to
improvement. Selecta has been experiencing a high operational cost, the absence of online platforms,
and the need for a more effective and efficient supply chain. Furthermore, the company faces external
threats, including the increasing price of raw materials due to inflation, the entry of international
brands in the market offering alternative dessert options such as dairy-free products, and the lower
demand in cold seasons. Selecta can face a decline in sales and market share if the strategies are
poorly devised.

What strategies must Selecta adopt to address its weaknesses, overcome the challenges, and
mitigate the external threats effectively?

III. MISSION AND VISION STATEMENT

Vision Statement

With a Vision of being the no. 1 ice cream company in the Philippines.

Mission Statement

At Selecta, our mission is to provide our ice cream consumers the delight with high-quality flavors ,
developing our ice cream products that bring excitement, joy and satisfaction. We are dedicated to
serving the Philippines market and expanding our presence worldwide in 32 countries through the use
of innovative creations and sustainable practices. Selecta is committed to longevity and growth of the
brand while maintaining profitability success.

We strive to create meaningful job opportunities where we operate, prioritizing economic growth to
uplift communities. We promote to improve our employees morale and nurture a culture of inclusivity
in our workforce. We centered our philosophy in integrity, creativity, improvement, and adhering to our
belief that integrity drives a good business . At Selecta, we consistently provide exceptional products
and customer experiences, maintaining our position as the leading ice cream brand in the Philippines
and Filipino families’ preferred choice.

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 Nine (9) Essential Components
Table 1. (9) Essential Components

Essential Components Data

Customers Dessert enthusiasts
Products/Services Ice cream with high-quality flavors.
Markets Philippines and 32 other countries worldwide.
Industrial standard machines and sustainable
Technology
practices.
Longevity: sustaining Selecta long-term; growth:
Survival, Growth, & Profitability
expanding operations, maintaining profitability.
Commitment to excellence, innovation, and
Philosophy ethical practices; trust, transparency: keys to
growth.
Provide exceptional products and customer
Self-concept (distinct)
experiences.
Meaningful job opportunities; sustainable
Concern for Public Image
economic development, social impact.
Concern for Employees Enhancing employee morale and inclusivity.

IV. OBJECTIVES

The objectives below are identified according to Selecta’s vision to be the Philippines’ no. 1 ice cream
brand.

Financial Objectives

- Increase annual sales by 15% by 2029, driven by higher market share, improved revenue
streams from new products, and optimized cost efficiency to sustain profitability.

Strategic Objectives

- Achieve a 20% increase in market share by 2029 through innovative product offerings,
expansion of distribution channels, and implementation of customer loyalty programs to
outpace competitors and address diverse consumer needs.

V. ASSESSMENT/ANALYSIS OF FIRM’S EXTERNAL ENVIRONMENT

Analysis of Opportunities:

● Expanding Product Lines

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 The growing demand for varied ice cream options provides an excellent opportunity for Selecta to
expand its product line. By offering healthier options such as low-calorie, low-sugar, or dairy-free
ice creams, Selecta can appeal to health-conscious clients and those with dietary limitations. This
growth attracts new consumer categories and increases client loyalty by providing options for
various preferences. Furthermore, expanding into specialized sectors such as gluten-free or keto-
friendly sweets establishes Selecta as a creative and inclusive company.

● Partnering with Delivery and Logistics Companies

According to Experience the Rich Flavor of Selecta Ice Cream (2024), Selecta’s ice cream are
available in three online shops such as Grab, Lazada, and Shopee. With the rise of e-commerce
and meal delivery services, Selecta can improve its accessibility by cooperating with platforms
such as Foodpanda. These collaborations enable Selecta to reach a larger audience, particularly
urban consumers who prioritize ease. Efficient logistics operations also maintain the cold chain,
which protects product quality and freshness during delivery.

(Source: Experience the Rich Flavor of Selecta Ice Cream. (2024). Walls.
https://www.selectaphilippines.com)

● Adapting to Dietary Trends

According to the Philippines Plant-Based Dairy Market (2020), the plant-based dairy market in the
Philippines is continuously increasing as consumers become more health-conscious and
environmentally aware about what they consume. The growing popularity of plant-based and
vegan diets allows Selecta to produce new ice cream flavors manufactured with alternative
ingredients such as almond milk, coconut milk, or soy. By embracing this trend, Selecta can
attract clients who are health-sensitive, ecologically conscientious, and value sustainable
products.

(Source: Philippines Plant-Based Dairy Market: Trends, Forecasts up to 2028 and Company
Shares. (2020). Globalmonitor.us. https://www.globalmonitor.us/product/philippines-plant-based-
dairy-market)

● Increasing Local Store Distribution

According to Rappler (2024), SM is expected to open 5 new malls around the country. Expanding
Selecta's distribution to supermarkets in malls in urban and rural locations opens new market
opportunities. This strategy improves product awareness and accessibility, especially for
customers in underdeveloped areas. Reaching out to new customers in these locations boosts
brand recognition and promotes loyalty in neighborhoods with limited dessert options.

(Sources: Castro. (2024, February 27). SM to open 5 new malls in 2024 as PH retail rebounds
big. RAPPLER. https://www.rappler.com/business/sm-open-new-malls-2024/)

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● Leveraging Seasonal Revenue Peaks

According to the Packaging Strategies of 2021, ice cream sales demand is affected by the
weather patterns. The higher the temperature is, the higher the demand, but most of the dessert
sales are set to increase as the summer heats up. As seasonal demand increases, especially
during the summer and holiday seasons, it allows Selecta to increase sales through planned
promotions. Limited-edition seasonal tastes, such as those with festive or tropical themes, can
appeal to buyers looking for something distinctive and timely. Promoting ice cream as an integral
part of festivals or family gatherings provides a feeling of occasion and promotes its popularity.

(Source: Ice Cream Packaging Demand Heating Up With Summer Temperatures | 2021-05-24 |
Packaging Strategies. (n.d.). https://www.packagingstrategies.com/articles/102949-ice-cream-
packaging-demand-heating-up-with-summer-temperatures)

Analysis of Threats:

● Increasing Costs of Raw Materials Due to Inflation

According to PSA, the indices of milk, other dairy products and eggs has increased at 4.0 percent
from 3.2 percent in the previous month, and fruits and nuts has increased at 11.9 percent from 9.4
percent in August 2024. The rising costs of raw ingredients such as milk, sugar, and cocoa due to
inflation substantially threaten Selecta's profitability. As these vital materials become more
expensive, the company may be under pressure to raise product costs, potentially losing clients in
the price-sensitive Philippine market.

(Source: Summary Inflation Report Consumer Price Index (2018=100): September 2024 |
Philippine Statistics Authority | Republic of the Philippines. (2024, October 4). Psa.gov.ph.
https://psa.gov.ph/content/summary-inflation-report-consumer-price-index-2018100-september-
2024)

● Growing Competition from International Brands

International ice cream brands including Häagen-Dazs, Magnum, and Ben & Jerry's have entered
the local market, increasing competition for Selecta. These brands frequently offer novel tastes
and high quality, attracting middle- and upper-income consumers seeking rich dessert
experiences. To counter this threat, Selecta must accentuate its Filipino identity by creating
distinctive, culturally inspired flavors such as ube, buko pandan, or leche flan. Using creative
marketing strategies to highlight cost, accessibility, and local heritage can help to enhance its
connection with consumers. This method can help Selecta present itself as both culturally
relevant and competitive in the face of global competition.

● Competition from Alternative Dessert Options

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 The increased popularity of alternative sweets like frozen yogurt has created a competitive
environment for Selecta. The people who preferred to eat frozen yogurt are expected to show a
volume growth of 1.4% in 2025.These options address shifting customer preferences for variety,
novelty, and healthier indulgences. To stay competitive, Selecta might broaden its product line to
include hybrid options or ice cream blends with health benefits, such as low-sugar or probiotic
elements.Collaborations with trendy dessert shops or the creation of limited-edition, unique items
could help to attract younger, more adventurous consumers. Selecta's proactive diversification
would allow them to enter new market areas while maintaining its loyal customer base.

(Source: Yogurt - Philippines | Statista Market Forecast. (n.d.). Statista.

https://www.statista.com/outlook/cmo/food/dairy-products-eggs/yogurt/philippines)

● Increased Demand for Dairy-Free and Plant-Based Options

The global shift toward dairy-free and plant-based diets has increased demand for desserts that
cater to lactose-intolerant and health-conscious people. According to Global Monitor, plant-based
and non-dairy options are gaining popularity among the healthy conscious consumers, signaling a
significant change in consumer preferences. Without addressing this trend, Selecta risks losing
customers to competitors who provide plant-based ice cream alternatives.To get into this growing
market, Selecta can create a range of plant-based ice creams using ingredients like almond milk,
coconut milk, and oat milk.

(Source: Philippines Plant-Based Dairy Market: Trends, Forecasts up to 2028 and Company
Shares. (2020). Globalmonitor.us. https://www.globalmonitor.us/product/philippines-plant-based-
dairy-market)

● Lower Demand in Cold Seasons

Ice cream sales typically decline during the winter months, resulting in seasonal income variations
that threaten steady profitability.Consumers frequently choose warmer or seasonal treats over ice
cream. Selecta may fight this loss by positioning ice cream as a versatile year-round dessert that
pairs well with warm delicacies such as brownies, waffles, and pies.Introducing limited-edition
winter-themed flavors or ice cream-based cakes may also increase sales during the colder
months. This technique not only tackles seasonal issues, but it also improves the perception of
ice cream as a versatile and pleasurable option for any occasion.

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 External Factor Evaluation (EFE) Matrix

Table 2. External Factor Evaluation (EFE) Matrix

The company's overall weighted score is 2.84, suggesting moderate ability in responding to
external opportunities and threats. This score indicates that, while Selecta can capitalize on some
opportunities, there is space for development in addressing external problems. A major
opportunity exists in capitalizing on seasonal income peaks, which have the highest weight of
0.13 and a weighted score of 0.52. This demonstrates Selecta's capacity to maximize sales
during peak demand periods, such as the summer or holiday season, through customized
marketing and promotions. Capitalizing on such chances can greatly boost the company's market
share and revenue growth.

The opportunity to expand product lines, which has a weight of 0.12 and a weighted score of 0.48,
demonstrates Selecta's ability to innovate and respond to varied customer preferences. The
corporation can improve its appeal to various market segments by providing new and adaptable
flavors. Collaboration with delivery and logistics organizations, weighted at 0.10 and scoring 0.40,
indicates the necessity of tackling distribution issues. This approach ensures that Selecta can
reach more customers while also addressing the perishable nature of its products. Adapting to
dietary trends, weighted at 0.08 and scoring 0.24, indicating that there is still potential for growth
in meeting the increased demand for health-conscious and plant-based solutions.

On the threat side, rising raw material costs due to inflation have the highest weight of 0.13 and a
weighted score of 0.26. This demonstrates how rising input costs are putting pressure on
Selecta's profitability and pricing tactics. Competition from other dessert options, such as gelato
and frozen yogurt, has a weight of 0.09 and a moderate score of 0.27, indicating that Selecta

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needs to differentiate its goods even more. Furthermore, the decreased demand in cold seasons,
weighted at 0.11 but scoring just 0.11, emphasizes the ongoing issue of stabilizing revenue during
off-peak periods. Addressing these risks is critical to guaranteeing long-term growth.

Overall, the EFE matrix shows that Selecta excels at exploiting its strong market position during
seasonal peaks and diversifying its product variety. To sustain its market leadership, the
corporation must work to improve its reaction to threats such as inflation and increased
competition. A greater emphasis on responding to dietary trends and maintaining performance
during cold seasons will aid in mitigating vulnerabilities. By balancing its strengths and
shortcomings, Selecta may optimize its growth potential and efficiently handle external hurdles.
These strategic enhancements are crucial to increasing the company's long-term
competitiveness.

The following are the ratings of each strength and weakness:

● Expanding Product Lines

A rating of 4 is granted because increasing product lines matches with market demands and
has the potential to attract new client segments and increase overall sales. The organization
has the ability to effectively diversify its offerings, thereby preparing itself for long-term
growth. This opportunity demonstrates the critical role of innovation in increasing revenue
and market share.

● Partnering with Delivery and Logistics Companies

A high rating of 4 is given because collaborations with delivery and logistics services improve
client ease and accessibility, particularly in an increasingly digital economy. These alliances
improve the company's capacity to meet demand efficiently. This opportunity emphasizes
the strategic significance of operational improvements in reaching a larger market.

● Adapting to Dietary Trends

A rating of 3 is awarded due to the growing customer preference for healthier products,
which represents a potential but moderately challenging possibility. The organization must
invest in R&D to successfully address these trends. While this approach will take effort, it
has the potential to increase brand equity and attract niche audiences.

● Increasing Local Store Distribution

This opportunity is graded 2 because it has a limited influence on already crowded markets
with little growth prospects. However, increasing local distribution can still boost awareness

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 and convenience in underserved areas. The success of this strategy is dependent on
comprehensive market analysis and resource allocation.

● Leveraging Seasonal Revenue Peaks

A rating of 4 is justified since seasonal demand surges are predictable and, when managed
well, can greatly improve revenues. The corporation can profit on these peaks by planning
targeted promotions and keeping enough supply on hand. This potential is crucial for
increasing profitability during peak demand periods.

● Increasing Costs of Raw Materials due to Inflation

Inflation-driven cost increases are external and mostly unpredictable, resulting in a 2 rating;
however, they can put pressure on profit margins. The corporation must proactively address
this threat by optimizing processes and modifying prices. While a challenge, it has a limited
immediate impact when suitable risk management methods are in place.

● Growing Competition from International Brands

This threat is given a moderate rating of 3 because foreign brands with a strong global
presence represent a major challenge to market share. These competitors frequently bring
cutting-edge resources and branding techniques, forcing the organization to adapt in order to
remain competitive. Effective differentiation can help lessen the impact of this threat.

● Competition from Alternative Dessert Options like Gelato and Frozen Yogurt

This threat is rated a 3, reflecting the growing popularity of alternatives, which may appeal to
consumers seeking diversity or healthier options. While not an immediate threat to
mainstream products, the corporation must continue to innovate in order to maintain its
competitive advantage. The growth of alternatives emphasizes the value of market
diversification.

● Increased Demand for Dairy-free and Plant-based Options

This threat is rated with a weight of 2 since the dairy-free and plant-based markets are still
very small in comparison to the company's major goods.However, failure to adapt to this
expanding trend may result in missed opportunities in the future. Monitoring and selectively
meeting this demand maintains relevance in changing marketplaces.

● Lower Demand in Cold Seasons

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 A rating of 1 is given because this seasonal difficulty is predictable and can be managed with
strategic planning. To offset declining sales, the company can diversify its offers and employ
off-season discounts. This threat has little impact on long-term stability.

VI. ASSESSMENT/ANALYSIS OF FIRM’S INTERNAL ENVIRONMENT

Analysis of Strengths

● Strong Brand Recognition

Select is a well-known ice cream brand in the Philippines, making it much easier to recognize by
its customers. Strong brand recognition helps the brand to stand out in the competitive market. It
also helps the launches of new products as the customer knows Selecta provides quality.

● Great Customer Brand Loyalty

Selecta earned great customer brand loyalty through its consistent quality and great products.
Loyal customers of Selecta are most likely to repurchase the product and recommend it to the
public. Customer brand loyalty can support the brand's long-term success.

● Leader of Overall Market Shares

Selecta holds a dominant position with 64.4% of market share in the ice cream industry, giving the
brand a major advancement over its competitors. Selecta can capitalize on this strength through
the economy and market presence in the industry. It positions Selecta for more opportunities,
growth, and innovation.

Figure 1: Analysis of Market Shares from Statista

(Souce: https://statista.com/statistics/1418869/philippines-leading-ice-cream-companies-market-share/ )

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● Great Versatile Product Flavor

Selecta offers ice cream products with 20 unique and versatile flavors that satisfy the palate of its
customers. The variety of flavors helps the company to attract more customers in different areas
around the world. This keeps the consumer engaged with the exciting flavors and engaged more
in the brand. The versatile flavors help the company to adapt to the market demands and
seasonal trends over the period.

(Source: https://www.selectaphilippines.com/our-brands.html)

● Effective Quality Offering on the Market

Selecta is known for producing high-quality products, and meeting and exceeding customer
expectations. Consistent offering of quality products creates customer loyalty and trust that will
eventually lead the consumer to always buy the same brand. Offering great products to
consumers will reduce the possibility of complaints and increase customer satisfaction over the
period.

Analysis of Weaknesses

● Convenient Online Platforms are Unavailable

The lack of online platform limits the Selecta’s consumers who prefer shopping online into buying
their products. In today’s digital age, most of the consumers order online rather than going to the
market to buy what they want, they prefer the convenient access to many products. The limit of
availability in e-commerce affects the brand market reach and may also hinder the customer
satisfaction. This gap should be addressed by being more present in online shops such as the
Shopee and Food Panda.

(Source: Experience the Rich Flavor of Selecta Ice Cream. (2024). Walls.
https://www.selectaphilippines.com)

● Perishable Nature Requires Effective Supply Chain

Due to the perishable nature of Selecta’s Product, the need for a reliable and efficient supply
chain is very important to maintain the product’s freshness. Any disruption in the supply chain
could cause a big problem that will lead to product waste and customer dissatisfaction. The
challenge of managing the stocks and distribution of the products adds a difficulty in the
operations. Selecta needs to continuously improve its logistics to minimize problems and delays
in production.

(Source: Perishable Cargo: Meaning, Examples, and Regulations. (2023, August 8). Inbound
Logistics. https://www.inboundlogistics.com/articles/perishable-cargo/ )

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● Limited Options for Health-Conscious Consumers

As of the present, Selecta ice cream has no healthy options offered for its consumers. The other
competitors' brands like Ben and Jerry’s have vegan and non-dairy options. Selecta’s current
product lines may not cover all the consumer wants, the growing demand for healthy options may
not be fully met. Health-conscious consumers are becoming more aware and selective regarding
the foods that they consume. This shift is reflecting the customers preferences towards wellness.

● Minimal and Constrained Product Innovations

Selecta commonly develops their products by offering new flavors only. Selecta’s limited product
innovations could hinder them from the success affecting their ability to stay ahead of the
competitors. One of the examples is the increasing demand for frozen yogurt products that are
much healthier options than the traditional ice cream. The lack of innovative products could make
the brand appear outdated and not pleasing in the eyes of the consumers.

(Source: Taste the Goodness of Selecta Brands and Products. (2023). Walls.
https://www.selectaphilippines.com/our-brands.html )

● High Operational Cost

Selecta faces a high operational cost particularly in logistics, production, and distribution of the
goods. The temporary increase was due to the higher input cost as well as the bigger charge of
electricity used by the production.

(Source: Mercurio, R. (2024, October 31). Further growth seen in RFM-Unilever ice cream joint
venture. Philstar.com. https://www.philstar.com/business/2024/11/01/2396701/further-growth-
seen-rfm-unilever-ice-cream-joint-venture)

Internal Factor Evaluation (IFE) Matrix

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 Table 3. Internal Factor Evaluation (IFE) Matrix

This matrix helps us understand Selecta’s strengths and weaknesses in its internal operations.
With a weighted average of 2.63, Selecta is doing okay but has a lot of room to grow. The score
shows that while there are some things the company is doing well, there are areas that need
improvement, especially in staying competitive and boosting sales. One way Selecta can improve
is by focusing on innovating its products and making sure it stands out more in the market. A clear
strategy is needed to maintain its place in the ice cream industry.

Some of the things that make Selecta stand out are its wide range of delicious ice cream flavors
that cater to different tastes, its strong presence in stores everywhere, and its dedication to giving
customers high-quality products. By continuing to innovate and improve operations, Selecta can
keep its loyal customers happy while attracting new ones. It’s all about staying creative,
consistent, and making smart business moves.

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The following are the rating of each strength and weakness:

● Strong Brand Recognition

A rating of 4 is given because Selecta has been in the industry for over 80 years. Being in
the industry for over 80 years means that Selecta is a well known and established brand.

● Great Customer Brand Loyalty

A rating of 4 is given for this strength because the trust between the customers and Selecta
has been built over time. Selecta has been part of many families' lives for generations,
making it more than just a brand, it’s a source of nostalgia and shared experiences. This
emotional connection keeps customers coming back.

● Leader of Overall Market Shares

A rating of 4 is given for being an established company in the ice cream industry, Selecta
benefits from word-of-mouth recommendations and strong brand recall. Loyal customers are
more likely to advocate for the brand, further strengthening its position.

● Great Versatile Product Flavors

A rating of 3 is given due to its broad selection of flavors, from classic favorites like
chocolate and vanilla to more innovative or Filipino-inspired flavors like ube or mango,
Selecta attracts customers of all ages, backgrounds, and taste preferences.

● Effective Quality Product Offering on the Market

A rating of 3 is given because it solidifies the brand’s reputation, attracts loyal customers,
and gives it an edge in a competitive market. Offering high-quality ice cream reinforces
Selecta's image as a premium yet affordable brand. This reputation encourages repeat
purchases and positive word-of-mouth, further strengthening its market presence.

● Convenient Online Platforms are Unavailable

This is considered a weakness for Selecta with a given rating of 2. The rise of e-commerce
and food delivery apps has drastically changed consumer purchasing habits. If Selecta lacks

19
 to cover the available online platforms or partnerships with delivery services, it may struggle
to meet the growing demand for convenience.

● Perishable Nature Requires Effective Supply Chain

A rating of 2 is given to this weakness because ice cream is a temperature-sensitive product

that requires cold storage and transport. Any disruptions in the supply chain, such as delays,
equipment malfunctions, or logistical inefficiencies, can lead to spoilage and financial losses.

● Limited Options for Health Conscious Consumers

This is considered as one of the major weaknesses for Selecta which is why it is rated as 1
because of the growing demand for healthier food options, including low-sugar, low-fat,
vegan, or dairy-free products. If Selecta lacks such offerings, it risks alienating this significant
and growing market segment.

● Minimal and Constrained Product Innovations are Present

This is given a rating of 1 because this is also a major weakness for Selecta because without
consistent and creative product innovations, Selecta may struggle to stand out in a highly
competitive ice cream market, where consumers are drawn to novel and exciting offerings.

● High Operational Cost

A rating of 2 is given to this because high expenses for production, cold storage,
transportation, and distribution can reduce profitability, making it harder to reinvest in growth
or innovation. High operational costs may limit Selecta's ability to expand to new markets or
invest in infrastructure improvements, such as modernizing facilities or enhancing distribution
networks.
VII. SWOT ANALYSIS
A. SWOT Matrix

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 Table 4. SWOT Matrix

Development of Strategic Operations Alternatives

S-O Strategies

Product Development: Expanding the product line in the market by implementing a variety of
versatile product flavors (S1, S2, S3, S4, S5, O1, O2, O4, O5)

Selecta may use its great brand awareness and diverse product flavors to broaden its product
offerings and appeal to a larger market. Selecta can address the growing demand for dairy-free and
plant-based alternatives by bringing new flavors and healthier options. Seasonal flavors influenced by
local preferences or cultural events can also entice customers during peak periods. Collaborating with
suppliers to ensure premium ingredients improves product quality and strengthens the brand's
reputation. Selecta could also spend in research and development to keep ahead of the competition
by introducing trendsetting ice cream flavors. Effective marketing efforts emphasizing these advances
can increase consumer interest and loyalty. Finally, extending the product portfolio will please current
customers while also attracting new market groups.

Market Development: Increasing distribution through new stores and partnerships with
delivery services by using the brand’s strong market position (S1,S3, O2, O4)

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Selecta may expand distribution by partnering with logistics and delivery firms, capitalizing on its
strong market position. Expanding store distribution to underprivileged areas improves accessibility
and enhances revenue. This can involve expanding into smaller towns or regions where competitors
have a low presence. Further, Selecta can improve its online presence by partnering with companies
such as Shopee and Foodpanda, ensuring customer convenience. To optimize earnings, delivery
services should also focus on seasonal peaks, such as the summer or holidays. Selecta may expand
its consumer base and strengthen its ice cream business supremacy by focusing on markets with
untapped potential. Effective marketing to create brand awareness in these new markets will be
critical.

W-O Strategies

Forward Integration: Optimizing supply chains and reach more customers by building an
online platform and by partnering with logistics providers (W1, W2, O2, O4)

Building a strong online platform will help Selecta overcome its lack of convenient online ordering
choices. This platform should provide customers with an easy-to-use interface for scheduling
deliveries, customizing products, and running promotions. Partnering with logistics providers
guarantees that the perishable nature of its products is managed by implementing cold-chain delivery
methods. Selecta may also use the analytics from this platform to track client preferences and
improve its product offers. By doing so, the corporation may capitalize on expanding e-commerce
trends while also filling gaps in its existing supply chain. Furthermore, providing subscription services
or loyalty programs through the platform will drive repeat purchases. By strengthening this online
environment, Selecta will be able to cater to modern consumer behaviors and expand its market
reach.

Market Penetration: Boosting accessibility and sales by using promotional campaigns during
seasonal peaks and by partnering with logistics providers (W1, W5, O2, O5)

Selecta can launch promotional programs to capitalize on seasonal revenue peaks and increase
brand recognition. Discounts, combo packages, and loyalty benefits can be effective techniques
during high seasons such as the summer and holidays. Furthermore, collaborations with logistics
businesses might help make these advertisements more accessible to a wider audience. To attract
new customers while retaining existing ones, promotions should showcase Selecta's unique flavors
and superior quality. Online marketing and social media initiatives can help to amplify the brand's
message. Engaging influencers to promote these efforts will also appeal to younger audiences. These
activities will boost sales and strengthen Selecta's position as a household name in the dessert
business.

S-T Strategies

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Backward Integration: Stabilizing costs despite inflation by securing control over key
ingredients and suppliers, ensuring consistent pricing and quality for the variety of flavors
(S4, T1, T4)

Selecta can protect its supply chain by developing strong ties with key raw material suppliers. This
ensures that pricing and quality remain steady in the face of inflation and increased costs. Long-term
contracts with suppliers can also help to reduce price fluctuation. Selecta can also pursue horizontal
integration by investing in its own farms or production facilities for crucial ingredients such as dairy or
fruit. This strategy not only eliminates reliance on third-party suppliers, but it also ensures
sustainability and traceability in procurement. Such tactics will strengthen Selecta's dedication to
quality, providing it an advantage over competitors. Furthermore, a cost-effective supply chain allows
Selecta to offer competitive prices without sacrificing profitability.

Market Penetration: Increasing market share and outperform foreign brands and alternative
dessert options by leveraging Selecta’s strong brand recognition and loyal customers with
discounts and by offering sales or loyalty plans (S1, T2)

To compete with worldwide brands and other dessert options, Selecta can promote its distinctive
product attributes and inventive flavors in targeted campaigns. For example, ads can highlight locally
influenced items as well as the brand's Philippine roots. Offering special discounts or bundling
promotions might appeal to price-sensitive customers while improving sales volume. Furthermore,
introducing loyalty programs with points redeemable for Selecta products can help increase client
retention. Collaborating with local influencers or chefs to develop trademark flavors can help promote
brand differentiation. These strategies will ensure that Selecta remains competitive and dominates the
market, despite external threats.

W-T Strategies

Retrenchment: Maintaining profitability by optimizing supply chains, reduce operational cost,

and scale back during low-demand products (W2, W5, T1, T5)

To retain profitability, Selecta can optimize its operations by reducing capacity during low-demand
seasons. To reduce waste, less popular products may be reduced in production while bestsellers are
prioritized. Implementing cost-saving initiatives such as energy-efficient equipment and improved
logistics can also help address excessive operational costs. To combat inflation and rising raw
material prices, Selecta can negotiate better terms with suppliers or look into alternate sourcing
opportunities. Diversifying packaging options, such as using fewer servings during off-peak months,
might also appeal to frugal shoppers. Finally, good forecasting using seasonal sales data can help the
organization better match its inventories and resources. Selecta can strengthen its resilience to
economic and market crises by implementing these techniques.

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 B. Quantitative Strategic Planning Matrix (QSPM)

Table 5. Quantitative Strategic Planning Matrix (QSPM)

Market penetration, which focuses on enhancing market share through seasonal promotions, loyalty
programs, and strategic logistics partnerships, emerged as the most attractive strategy for Selecta
Philippines with a score of 5.35 in the Quantitative Strategic Planning Matrix (QSPM). This
outperformed other alternatives like Market Development (5.08) and Backward Integration, which
received the lowest attractiveness score of 3.88. These results highlight the potential of market
penetration to maintain Selecta’s competitiveness and drive sustainable revenue growth.

To capitalize on this strategy, Selecta can implement targeted promotional campaigns during high-
demand periods such as summer and the holiday season, when ice cream consumption spikes.
Seasonal discounts and loyalty programs can further encourage repeat purchases while attracting
new customers. To enhance accessibility, the company could also form partnerships with reliable
logistics providers to ensure nationwide distribution, especially in underserved regions.

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Selecta’s joint venture with RFM-Unilever Ice Cream has solidified its position as a leading player in
the Philippine ice cream market. However, the company faces intense competition from both foreign
brands and alternative dessert options. These competitors present a significant challenge, particularly
as consumer preferences evolve and new players enter the market.

Although external threats like competition are beyond direct control, Selecta can mitigate their impact
through continuous innovation. By investing in research and development, the company can create
unique product offerings that differentiate it from competitors. Additionally, refining operational
efficiency and implementing aggressive marketing strategies will help the company capture greater
market share, maintain customer loyalty, and outpace foreign brands and substitutes.

VIII. STRATEGY EVALUATION OF ALTERNATIVES

Alternative 1: Product Development Strategy: Expanding the product line in the market by
implementing a variety of versatile product flavors (S1, S2, S3, S4, S5, O1, O2, O4, O5)

Suitability

This alternative is consistent with the foreseeable opportunities and threats. Selecta’s strong
market presence and brand loyalty provide a solid foundation for introducing new flavors.
Expanding product lines addresses consumer demands and trends for diverse options,
aligning with dietary preferences and leveraging seasonal revenue peaks. However, Selecta
needs to innovate further to cater to health-conscious consumers and sustain its competitive
edge.

Validity

The main assumptions of this alternative are realistic and based on valid information.
Selecta’s history of effective quality product offerings and its strong brand recognition ensure
consumer interest in new products. Market data supporting dietary trends and consumer
interest in diverse flavors further validate the assumptions.

Consistency

This alternative aligns with Selecta’s objectives of delivering high-quality, innovative products
and increasing sales. Offering versatile flavors complements the company’s mission to delight
consumers with exciting and satisfying products, while also contributing to its financial
objective of a 30% sales increase by 2029.

Feasibility

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 This alternative is feasible. Selecta’s leadership in market share and expertise in product
innovation make it capable of expanding its flavor portfolio. While high operational costs may
pose challenges, investments in R&D and marketing can mitigate these concerns.

Vulnerability

The vulnerability of this strategy is moderate. Selecta faces risks from high operational costs
and competition from alternative desserts like frozen yogurt and gelato. However, its
established brand loyalty and ability to innovate reduce the likelihood of failure.

Alternative 2: Market Development Strategy: Increasing distribution through new stores and
partnerships with delivery services by using the brand’s strong market position.
(S1,S3,O2,O4)

Suitability

This alternative is consistent with foreseeable opportunities. Selecta can capitalize on its
strong market share and brand recognition to improve distribution and accessibility.
Increasing local store distribution and forming delivery partnerships will address consumer
demands for convenience and help combat competition.

Validity

The assumptions of this strategy are realistic and based on valid market data. Expanding
distribution channels and enhancing convenience through delivery services align with
consumer behavior and current industry trends favoring accessible and locally available
products.

Consistency

This strategy aligns with Selecta’s mission to expand its presence while providing exceptional
customer experiences. Increasing distribution supports the company’s financial goal of
growing sales and aligns with its strategic objective of improving accessibility.

Feasibility

This alternative is feasible. Selecta has the resources and reputation to form partnerships with
delivery companies and expand its store presence. Challenges may include the need for
investment in logistics and managing distribution costs, but these are manageable given its
market position.

Vulnerability

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 The vulnerability of this strategy is moderate. It depends on maintaining strong partnerships
and effectively managing costs. Seasonal demand fluctuations and competition in new
regions may also pose risks.

Alternative 3: Forward Integration: Optimizing supply chains and reach more customers by
building an online platform and by partnering with logistics providers (W1, W2, O2, O4)

Suitability

This alternative is consistent with foreseeable opportunities and addresses a key weakness:
the lack of an online platform. The strategy also leverages consumer demand for convenience
and aligns with the threat of increasing competition from other brands offering online services.

Validity

The assumptions of this strategy are realistic and supported by data showing the growing
popularity of online platforms and delivery services in the food industry. Other successful
brands have shown the effectiveness of digital channels in reaching customers.

Consistency

This strategy aligns with Selecta’s mission to create exceptional customer experiences and
improve accessibility. It supports the company’s financial and operational objectives while
addressing its competitive position.

Feasibility

This alternative is feasible but requires significant investment in technology and logistics.
Selecta’s strong brand and market leadership position provide leverage for successful
implementation.

Vulnerability

The vulnerability of this strategy is high initially, due to potential platform setup costs and
dependence on third-party delivery services. However, long-term benefits in customer reach
and satisfaction outweigh these risks.

Alternative 4: Market Penetration Strategy: Increasing market share and outperform foreign
brands and alternative dessert options by leveraging Selecta’s strong brand recognition and
loyal customers with discounts and by offering sales or loyalty plans.(S1, S2, S3, S4, S5, T1,
T2, T3)

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 Suitability

This alternative is consistent with foreseeable opportunities and threats. Seasonal promotions
and loyalty plans cater to customer preferences, leveraging seasonal peaks while addressing
competition from alternative dessert options.

Validity

The main assumptions of this strategy are realistic and based on consumer behavior, which
shows positive responses to promotions and loyalty plans. Data from similar industries
validates the effectiveness of such approaches in boosting sales.

Consistency

This strategy aligns with Selecta’s mission to improve customer experiences and its financial
goal to increase sales. Enhancing accessibility and customer engagement supports long-term
brand growth.

Feasibility

This alternative is feasible. Selecta has the resources and expertise to implement seasonal
promotions and loyalty plans. However, it requires close coordination between marketing and
logistics teams.

Vulnerability

The vulnerability of this strategy is moderate. Seasonal promotions may lead to short-term
gains but could reduce profitability during off-peak seasons. Competitors may also replicate
similar strategies, reducing differentiation.

Alternative 5: Backward Integration: Stabilizing costs despite inflation by securing control

over key ingredients and suppliers, ensuring consistent pricing and quality for the variety of
flavors.(S4, T1, T4)

Suitability

This alternative is consistent with Selecta’s objectives to maintain product quality and address
the threat of rising raw material costs due to inflation. It ensures stable supply and pricing
while supporting innovation.

Validity

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 The assumptions of this strategy are realistic. Securing control over suppliers is a proven
method to stabilize costs and ensure consistent quality in industries reliant on raw materials.

Consistency

This strategy aligns with Selecta’s mission to deliver high-quality products while ensuring
long-term profitability. It also supports financial objectives by stabilizing costs.

Feasibility

This alternative is feasible but requires substantial investment in supplier agreements or

acquisition. Selecta’s strong financial standing and market position make it achievable,
though challenging in the short term.

Vulnerability

The vulnerability of this strategy is moderate. Dependence on select suppliers could reduce
flexibility, and high initial costs may strain resources. Long-term benefits include cost stability
and quality assurance.

Alternative 6: Retrenchment: Maintaining profitability by optimizing supply chains, reduce

operational cost, and scale back during low-demand periods.

(W2,W5,T1,T5)

Suitability

This alternative is consistent with foreseeable weaknesses and threats. By addressing high
operational costs and seasonal demand fluctuations, retrenchment helps maintain profitability.

Validity

The assumptions of this strategy are realistic. Cost optimization and scaling during low-
demand periods are common practices to sustain profitability.

Consistency

This strategy aligns with Selecta’s mission to ensure longevity and growth while maintaining
profitability. It addresses operational challenges effectively.

Feasibility

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 This alternative is feasible but requires careful planning and execution to avoid disruptions.
Selecta’s existing supply chain infrastructure supports this approach.

Vulnerability

The vulnerability of this strategy is high. Scaling back during low-demand periods may reduce
consumer availability and weaken brand presence. Balancing cost control with market
presence is critical.

IX. STRATEGIC CHOICE

The evaluation of strategies utilizes tools like the SWOT Matrix and the Quantitative Strategic
Planning Matrix (QSPM) to identify the best-fit approach for business growth and sustainability. Six (6)
strategies were formulated, Product development (implementing a variety of versatile product flavors
to expand the product line in the market), Market Development (use the brand strong market position
to increase distribution through new stores and partnerships with delivery services), Forward
Integration (build an online platform and partner with delivery companies to optimize supply chains
and reach more customers), Market Penetration (enhance market share by combining seasonal
promotions, loyalty plans, and strategic logistics partnerships to boost, accessibility and outperform
competitors), Backward Integration (secure, control over key ingredients and suppliers, ensuring
consistent pricing and quality for the variety of flavors, thus stabilizing cost despite inflation), and
Retrenchment (optimized supply chains reduce operational cost, and scale back during low demand
periods to maintain profitability). These strategies were analyzed using QSPM, which provided
quantitative scores, with Market Penetration ranking the highest at 5.35, followed by Market
Development (5.08), Product Development (4.92), Retrenchment (4.62), Forward Integration (4.32),
and Backward Integration (3.88). The SWOT Matrix confirmed the alignment of the strategies with the
company’s strengths, weaknesses, opportunities, and threats, making them relevant and applicable.
Based on the QSPM and SWOT analysis, Market Penetration was identified as the most attractive
strategy. Market Penetration is the optimal strategy for the company because it leverages existing
strengths, such as brand recognition and market presence, while focusing on improving accessibility
and customer retention. This strategy is ideal for increasing market share, as it combines promotions,
loyalty programs, and strategic logistics partnerships to enhance product availability and outmaneuver
competitors. It directly targets expanding the customer base by incentivizing repeat purchases and
attracting new consumers through well-timed promotions. Additionally, it capitalizes on the company’s
current market position and operational capabilities, minimizing the need for significant investment in
new infrastructure or technology, unlike other strategies such as Forward or Backward Integration.

The expected outcomes of implementing Market Penetration include significant sales growth through
increased consumer engagement and retention. As the company enhances its market share, it is
poised to outperform competitors by providing differentiated offerings and superior accessibility.

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Moreover, enhanced customer acceptance is anticipated through improved customer experiences,
loyalty programs, and strategic logistics that ensure timely and efficient product delivery. Ultimately,
the combination of these factors will lead to a larger market share, sustained sales growth, and long-
term competitive advantage in a dynamic market.

X. IMPLICATIONS OF THE STRATEGIC AGENDA

Marketing

By 2029, Selecta wants to boost sales by 15% through the implementation of a targeted market
penetration plan. The business will use its loyal customers and well-known brand to increase its
market share and surpass other dessert options and international brands. Selecta intends to
accomplish this by launching cutting-edge goods, like locally influenced tastes and health-conscious
selections, to satisfy a range of consumer tastes. The business will use competitive pricing, seasonal
discounts, and a loyalty program to reward recurring business in an effort to draw in new clients and
keep hold of current customers.

Selecta will also improve its distribution channels by making itself more accessible in supermarkets,
convenience stores, and online, as well as by growing its footprint in busy places like shopping
centers and via delivery applications. Digital marketing will be the main focus of promotional activities,
including social media campaigns and collaborations with regional influencers to draw in younger
audiences and showcase new products.

Selecta will carry out a phased action plan over the coming years, introducing new flavors and loyalty
programs, increasing distribution to more locations, and launching focused seasonal marketing. To
ensure successful implementation, the whole marketing budget will be devoted to product
development, advertising, and distribution expansion. We'll keep a close eye on key performance
metrics including market share, client retention rate, and annual revenue growth. Quarterly
assessments will enable strategy modifications based on consumer input and market developments,
guaranteeing Selecta meets its 2029 sales goal and maintains its position as a market leader in ice
cream.

Human Resource

Market penetration has a significant impact on Selecta’s Human Resources (HR) department, shaping
the need for a talented, motivated, and adaptable workforce. To achieve the company’s goal of
expanding its market share, HR must ensure that the right people are in the right roles, especially in
critical areas like marketing, production, and research and development. This means hiring new talent
when needed, retaining top performers, and equipping employees with the skills to innovate and stay

31
competitive. Training programs play a key role here, helping employees learn how to use new
technologies, develop customer-focused strategies, and create products that stand out. Beyond skill-
building, fostering collaboration across departments is essential to ensure the strategy is implemented
smoothly and efficiently.

Motivating employees is equally important for the success of a market penetration strategy. HR needs
to create reward systems and benefits that genuinely show appreciation for the team’s efforts, such as
meeting sales goals or improving operations. Clear communication is critical so every employee
understands the company’s vision and their role in achieving it. HR must also stay flexible to respond
to workforce needs as they change.For example, hiring more staff during busy periods or reallocating
team members to support new product lines. Depending on the scale of the strategy, HR may need to
coordinate with an expanded workforce that could require an increase of 10-15% in employee
numbers, focusing on critical areas to ensure seamless execution. By focusing on these priorities, HR
helps build a strong, united team that drives Selecta’s market penetration goals forward.

Operations

The production and operations team will be very important for Selecta to be able to meet the higher
demand that the market penetration plan will bring about. We need to increase production while
keeping quality high because the company wants to get a bigger piece of the market. Operations will
have to focus on making the manufacturing process more efficient, managing goods more effectively,
and making sure that products get to all of their destinations on time. Marketing and production must
work together to make sure that production plans are in line with sales forecasts and marketing
campaigns. This way, products will be ready when demand goes up. Selecta will also have to
carefully handle its supply chain to make sure that it always gets raw materials at fair prices. This is
especially important as the company tries to enter new markets. To keep making money and make
sure the company can handle more work without lowering the quality of the products or making
customers unhappy, operational excellence will be very important. In verdict, production and
operations management should facilitate market penetration by emphasizing production scaling,
enhancing operational efficiency, and ensuring superior product quality. Collaboration with other
departments and ongoing process enhancements are crucial for satisfying heightened demand and
efficiently providing distinct items to the market.

Finance

Selecta's financial data shows a solid and expanding financial position, supporting the viability of
putting the suggested market penetration strategy into practice. A thorough examination of important
financial indicators shows important information and how it affects the business's operations and long-
term objectives.

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 Figure 2. RFM Corporation: Financial Statements
Source: (https://edge.pse.com.ph/companyPage/fin)

While Selecta's gross expenses increased proportionately by 6.3%, from 18,031 to 19,172, the
company's gross revenue increased by 6.7%, from 19,386 to 20,681. Effective cost control is
demonstrated by this balance, which makes sure that rising revenue isn't countered by wasteful
spending. Most significantly, net income after taxes rose from 1,069 to 1,266 by 18.4%, indicating
increased profitability as a result of stronger pricing tactics or increased operational efficiency.
Earnings per share (EPS) also increased from 0.32 to 0.38, indicating increased value for
shareholders. Selecta has the financial resources to support loyalty programs, advertising campaigns,
and other measures aimed at expanding its market share thanks to its consistent revenue growth and
increasing profitability. But when the business makes these investments, maintaining profitability will
necessitate close attention to spending.

Selecta has reinforced its resource base, as seen by the notable 10.3% increase in total assets from
20,858 to 23,008 in just a single year. Additionally, current assets increased from 8,795 to 9,236,
indicating better liquidity to cover immediate obligations. On the other hand, current liabilities rose
10.3% from 6,710 to 7,402, in line with the expansion in assets. A rise in debt or other financial
commitments was reflected in the total liabilities, which increased from 7,451 to 8,395. Selecta must
make sure that further expenditures in marketing and distribution do not put an undue strain on

33
company finances, even while the growth in liabilities is controllable given the corresponding increase
in assets. As the business grows its market presence, maintaining a high liquidity ratio will be
essential to guaranteeing seamless operations.

The 9% increase in shareholders' equity from 13,407 to 14,613 was mostly due to a rise in retained
earnings from 6,378 to 6,776. As a result of better financial health and higher shareholder value, the
book value per share increased from 3.98 to 4.34. The increase in equity demonstrates Selecta's
capacity to produce profits for its investors, which may then be used as leverage to get more funding if
needed. Long-term viability depends on stakeholder confidence, which is bolstered by the company's
solid ownership position.

The suggested market penetration approach is financially feasible because Selecta's financial
performance generally shows stability and development. By 2029, the corporation wants to raise
revenues by 15%, and it has the resources to do it. However, continuing growth will depend on
controlling liabilities and preserving profitability. To optimize the returns on this strategic investment,
Selecta's finance team will be essential in making sure that resources are allocated effectively, costs
are kept under control, and performance is regularly monitored.

APPENDICES

34
 Similarity Index (must be below 10%; get it from Grammarly)

Overall RYG Rating (for every member including the leader)

RYG Table with Remarks

RYG RATING

Leader & Members Rating Remarks

3 Provided information, helps the members regarding their

Ausejo JR. , Franklin task, and rechecks the paper.

3 Provided information, helpful in editing, and reviewing the

Aurelio, Arianna Bernadette content of the paper.

3 Provided information, helpful in editing, guiding the other

Barbanida, Samantha Claire members and revising the content of the paper.

3 She is able to finish her assigned task on time and follow

Batiancila, Samantha the instructions.

3 He is able to finish his task on time and helps the group in

Bataluna, Gabriel Vinz terms of the output.

3 Despite some difficulty, she is able to do her task and finish

Labores, Hanna it on time.

3 He is able to do his task well, and submit it on time. He

Zaldivar, Joaquin Iñigo stayed reliable and helpful to the group.

35