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Case Study Analysis
Arellano, Chico
Arica, Kevin
Josue, Darwin
Penales, Von Anjo
Pioco, Louis Kym
Given its current domestic presence and performance, Carmen’s Best (the Company) would need to decide whether to
continue to focus on the domestic market or to aggressively pursue global expansion.
1. SWOT Analysis
Strengths
1. Ice Creams are produced from quality raw materials. The main ingredient of the Company’ ice cream is
fresh milk from well-nurtured cows.
2. Involvement in CSR activities. The Company has a foundation for indigent patients.
3. Owners have extensive network in the top class. The Company’s owner is the son of former senator
Ramon Magsaysay Jr. and grand son of former president Ramon Magsaysay.
Weaknesses
1. Products have a short shelf life. To maintain its freshness and quality, the milk used in the Company’s ice
cream are not highly processed.
2. Products are not known to the general public. In the social classes of the Philippines, only Classes A and B
knew something about their products. Very limited advertisement can be noticed for the Company’s ice
cream.
3. Products are expensive. The Company’s products, especially for those with expensive ingredients, are
priced with premium
4. Products are not readily available on recognized distribution channels. Carmen’s Best ice creams are not
available on convenience stores, supermarkets and most common restaurants.
5. Risk of having labor-related issues. The Company encounter a crisis which forced the employees to work
overtime to prevent stock-out costs.
Opportunities
1. Expand its operations abroad. The Company’s operation is only limited to the Philippines.
2. Venture into selling commercialized or low-cost ice creams. Since the Company’s related party is also the
direct producer of its main ingredient, it may easily source its ingredients to produce commercialized or low-
cost ice creams.
3. Venture in to selling healthy variants of ice creams. Non-fat, low sugar, zero sugar may be offered by the
Company to cater the health conscious market.
4. Trend in food delivery mobile application. The Company may explore in the food delivery thru GrabFood,
Food Panda, etc.
Threats
1. Shift of dessert and “cold food” preference to Milk Tea and Iced Coffee. Generally in the Philippines, the
Milk Tea fad is still strongly active in the market.
2. Health consciousness of people. Ice cream is high-fat food. It also contains significant amount of sugar.
3. Brand loyalty of well-established competitor brands. For competitor brands here in the Philippines, brand
recall is strong for the top three commercialized ice cream brands (Selecta, Magnolia and Nestle). For
international market, since the Company’s brand would be new in the market, potential customers may take
time to recognize the brand.
PROS
a) Established brand for Class A and B
b) Brand maintains prestige, catering mid to high class consumers
c) Family name and network is known and strong locally
d) Untapped opportunities in the local market (e.g. tourist spots, restaurants)
CONS
a) Certain ingredients are not readily available
b) Global market not yet explored
2. Pursue Global Expansion
Continue expansion in the ASEAN region by increasing brand awareness to Asian Food influencers
Explore markets outside the ASEAN especially Asia, Middle East and Northern America
PROS
a) Increased brand equity
b) Potential to capture untapped markets outside the Philippines
c) Increased financial benefits
CONS
c) Short shelf life issue
d) Costs to increase capacity
e) Costs to comply foreign regulatory standards and to apply for foreign licenses
f) Logistical complications and costs
g) Increased competition from foreign players (Haagen Dazs, Ben and Jerry’s, Tillamook, Cold Stone, etc.)
Since the Company has not yet established the supply chain of its product, which makes them not yet ready for
global expansion.
After intensifying the core market, the next focus is on tourist spots, targeting the foreign tourists.
Food bloggers become the new influencers in the food industry. It has become a benchmark for people in
considering whether the food are worthy to be tried or not.
In this phase, the Company is to commission internet influencers by inviting them to try their product in the
Philippines and let them write on the Company’s behalf. By this, respective countries of the bloggers can
influence their natives who will visit the Philippines and include in their bucket list the trial of the Company’s
product.
In preparation for going global, the Company should start securing trademark for the brand and patent for the
formula so they can commercialize this.
5. Going global.
Enter into contract with foreign venturers in manufacturing and distribution in other countries.