1. Marketing Management CASE STUDY AMBROSIA CORPORATION –SAN AUGUST
Presented to – Mr. Bill Evans

2. Group Members Rahul Tiwari Vanita Kumar Kanesar
Jagan Mohanraju Vysyaraju
Hui Zheng
Kiavash Fayyaz Shahandashti  
Adriana Coelles
Lei Chen
Ruixin Wang
Claudia Landaeta
Karunagaran Shanmugam
Julio Cadiz Romero

3. 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

4. Ambrosia Corporation 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:-

5. Frozen Desserts and Snacks
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.

6. 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?

7. Problem Entry of foreign brand. Competitive dominance.
Expanding and distribution.
Manufacturing and Advertising.
Economies of scale.

8. Sales Analysis Year 1988 1989 1990 1991 1992 Net sales 30866 36714
43815
53332
66665
Difference NA
5848
7101
9517
13333
% of increase in sales
18.94%
19.34%
21.72%
25%

9. 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.

10. Product Analysis BRAND NAME PRODUCT QUALITY SCOPE OF PRODUCT
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.

11. Place Analysis Present: Future Options: Retail outlets Supermarkets
Convenience stores
Food outlets
Bake shops
Restaurant
Ice cream Shops
Future Options:
Small shops in railway station
Shops near schools, universities

12. Promotion Analysis Print media 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

13. Market 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.

14. Market 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:

15. Market 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.

16. Market Analysis - Market Forecast
Company
1992
1993
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 6%
1.4
4.7
3% 
Presto 1
3.3
2.5% 
*The market share analysis in 1992, we suppose no foreign competitor into ice cream market in Philippine.
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.

17. Competition Analysis Company RFM PUREFOODS CPC Brands Selecta
Coney Island
Sorbetero
Presto
Market Share (1991)
7.3%
2.4%
3.1%
10%
Strategy
Parity pricing
Premium positioning
Focus on major retail outlets in key provincial urban centres
Doubling of capacity (8000 gal/day)
Multi brand strategy
Attracting Ambrosia”s carito vendors to carry Purefoods product
Parity pricing with Ambrosia as of 1992
Single serve novelty items
Lower 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 & Funwich
Candy bar segment (Big Bang & Cloud 9)
New product strategies
Started offering 10% rebate to selective retail outlets
Future product
Tivoli bar (Ube Nangka & Strawberry)

18. Brand Positioning Brand Nestle Haagen-Dazs Mars Amobrosia TASTE
QUALITY
PRICE
ACCESS
AWARENESS

19. SWOT Weakness Strength Opportunities Threats 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

20. Ansoff
Market penetration
Product Development

21. Place and Distribution
Results
Market Penetration:
Increase distribution
Advertising
Search of advanced technology and tools 92 91
Net sales
100%
66665
53332
Manufacturing
34%
45%
Marketing
15%
10%
7999.8
Place and Distribution
6666.5 5%
5333.2
Advertising
13%
11%
Promotion 8% 6%
Net Profit
20%
13333
23%

22. Results (cont…) Ask existing investor to put more money
Introduce multiple products
Costumer satisfaction

23. 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.

24. Solutions – Strategic Innovation
Increase distribution
50 new shops in front of schools and universities.
100 new shop in train station and bus stands

25. “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

26. Q & A

27. Thank you