(MANAGEMENT STRATEGY TITLE)

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

DECEMBER 2024
ACKNOWLEDGEMENT
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
I. EXECUTIVE SUMMARY STATEMENT

In 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 create their ice cream recipes
that were made from pure carabao milk and sold those ice creams in the iconic gold tin
containers. The taste and the quality of the Selecta ice cream has always been the priority of
the founders and the company. In 1990, RFM Corporation bought the Selecta brand from its
original founders the 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 its success that led to the joint-venture
agreement with Unilever Philippines in 1999.

Ice cream, one of the most famous desserts all over the world, mostly in our country due to our
hot weather. Ice cream is bought not only for special events or occasions but also as an
everyday refreshment. The ice cream industry caters most consumers in the market by offering
a lot of flavors and choices. The consumers may not always find some flavor feasible, but there
is always a flavor available that the consumer will surely love. Despite being the no. 1 ice cream
brand in the Philippines, Selecta still faces struggles and challenges from the industry. The
availability of the foreign brands in the Philippines like the Haagen-Dazs, Dreyers, and Baskin
Robbin offering premium quality products are one of the competitors in the industry. The
competition in the ice cream industry lies beyond many factors, regardless of the posing
challenges, Selecta is consistent in seeking ways to maintain its position in the market and still
be the no.1 ice cream brand in the Philippines. Like the other competitors in the industry,
Selecta is a brand that also offers a wide variety of ice cream flavors. Among its products are
ice cream with a content lower in fat and sugar, and also enriched with nutrients of calcium from
fruits. Selecta’s great passion to serve the consumers that exceeds their expectations,
continuous dedication for quality and improvement, and innovations, Selecta itself sees these
factors to be the winning ice cream and world’s most preferred ice cream brand.

The ice cream industry in the Philippines is still ongoing for growth and development. Other
brands like the Arce Dairy are improving their market development by increasing its location in
Metro Manila, and Magnolia is in the process of improving their operations through their cold
storage facilities and freezer networks. Selecta moving through the product development by
offering unique, locally inspired flavors differentiated the brand from other competitors in the
existing market aided the overall marketing strategy of the company and sustained its place on
being the no. 1 ice cream brand in the Philippines. The highest priority of Selecta was to create
strategies that would help the company to 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 its 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 is confronted with
external threats, including the increasing price of raw materials due to inflation, the entry of international
brands in the market offering alternative desserts options such as dairy free products, and the lower
demand in cold seasons. Selecta can be facing a decline in the 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.

Nine (9) Essential Components

Essential Components Data

Customers ice cream consumers.
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 ethical
Philosophy
practices; trust, transparency: keys to growth.
provide exceptional products and customer
Self-concept (distinct)
experiences.
meaningful job opportunities; sustainable economic
Concern for Public Image
development; social impact.
Concern for Employees enhancing employee morale and inclusivity.
IV. OBJECTIVES

Financial Objectives

Strategic Objectives

V. ASSESSMENT/ANALYSIS OF FIRM’S EXTERNAL ENVIRONMENT

Analysis of Opportunities:

● Expanding Product Lines

The growing demand for varied ice cream options provides an excellent opportunity for Selecta to
expand its product line. Selecta can appeal to health-conscious clients and those with dietary
limitations by offering healthier options such as low-calorie, low-sugar, or dairy-free ice creams. This
growth not only attracts new consumer categories, but it also increases client loyalty by providing
options for a variety of 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

With the rise of e-commerce and meal delivery services, Selecta can improve its accessibility by
cooperating with platforms such as Foodpanda and Shopee. 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: https://www.selectaphilippines.com/buy-selecta.html)

● Adapting to Dietary Trends

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 that are health-sensitive and ecologically
conscientious, and value sustainable products. This approach not only expands the brand's consumer
base, but also promotes it as forward-thinking and in tune with global dietary trends.

(Source: https://www.globalmonitor.us/product/philippines-plant-based-dairy-market)

● Increasing Local Store Distribution

Expanding Selecta's distribution to supermarkets in malls in both urban and rural locations gives up
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: https://www.rappler.com/business/sm-open-new-malls-2024/)

● Leveraging Seasonal Revenue Peaks

 Seasonal demand increases, especially during the summer and holiday seasons, provide an
opportunity for 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: 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 pose a substantial threat to 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: 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

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: 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: 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.

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 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 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 lower because it has a limited influence on already crowded markets
with little growth prospects. However, increasing local distribution can still boost awareness 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 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 as low 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

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.

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

● 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: https://www.selectaphilippines.com/buy-selecta.html)

● 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: https://www.inboundlogistics.com/articles/perishable-cargo/)

● 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: 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 additional warehouses and higher tracking rates brought
about the shortage in the providers. The increasing cost could affect the profit and make the product’s
prices higher.

(Source: https://portcalls.com/rfm-realizes-10-profit-growth-logistics-bottlenecks-notwithstanding/)

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.

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 really means that Selecta is a well known brand. With that being said,
it means that Selecta has been doing great to stay in the industry for 80 years.

● 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 because being an established and trusted leader in the ice cream industry
means 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 which is why it is given a rating of 2. The rise of e-
commerce and food delivery apps has drastically changed consumer purchasing habits. If
Selecta lacks robust 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 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.
 SWOT ANALYSIS
SWOT Matrix

Development of Strategic Operations Alternatives

S-O Strategies

Product Development: Implementing a variety of versatile product flavors to expand the product line in the
market (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: Use the brand’s strong market position to increase distribution through new stores
and partnerships with delivery services (S1,S3, O2, O4)

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
Grab 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: Build an online platform and partner with delivery companies to optimize supply
chains and reach more customers (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: Use promotional campaigns during seasonal peaks and partner with logistics
providers to boost accessibility and sales (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

Backward Integration: Secure control over key ingredients and suppliers, ensuring consistent pricing and
quality for the variety of flavors, thus stabilizing costs despite inflation (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 vertical
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: Leverage Selecta’s strong brand recognition and loyal customers by offering sales,
discounts, or loyalty plans to increase market share and outperform foreign brands and alternative
dessert options (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: Optimize supply chains, reduce operational costs, and scale back during low-demand
periods to maintain profitability (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.

Other Matrix (e.g. BCG, GSM) – optional only

QSPM
STRATEGY EVALUATION OF ALTERNATIVES
Alternative 1 to N (assess each alternative according to the items below)
Suitability
 Validity
Consistency
Feasibility
Vulnerability

STRATEGIC CHOICE
IMPLICATIONS OF THE STRATEGIC AGENDA
Marketing
Human Resource
Operations
Finance
APPENDICES
Similarity Index (must be below 10%; get it from Grammarly)
Overall RYG Rating (for every member including the leader)
RYG Table with Remarks