When it comes to ice cream, the brand that immediately comes to a consumer’s mind is Magnolia.
The strength and durability of the Magnolia brand was pointed out by AC Nielsen in its survey of top brands in the consumer market where Magnolia — despite its 10-year absence in the market — still lingered in the buyers’ minds when it comes to ice cream.
AC Nielsen refers to ice cream products as “impulse products.” AC Nielsen said the ice cream market is made up of 89 percent bulk and 11 percent frozen novelties.
“In terms of consumer awareness, two brands dominate the market: Selecta and Magnolia. Top of mind awareness is 58 percent for Selecta and 33 percent for Magnolia,” AC Nielsen’s study showed.
“A staggering 33 percent of consumers said they purchased Magnolia in the past four weeks when in fact Magnolia has been out of the market in the past 10 years,” said the AC Nielsen study which was obviously done prior to Magnolia’s reentry in October 2004.
In reality, though, consumers have actually been buying the available brands like Selecta, Nestle, Presto, Arce and imported ones like Dreyer’s and Hagen Dazs but still refer to them as Magnolia, said Magnolia Ice Cream AVP and general manager Mayo Alcon.
Magnolia’s exit from the local market in 1996 was prompted by the financial crisis that made San Miguel Corp. (SMC) rethink and rationalize its priorities then. SMC sold its plant and ice cream parlor in Aurora Boulevard to Nestle. But it retained the brand name and the land. SMC only returned in 2004 after the prohibition clause from its sales contract with Nestle lapsed.
Magnolia, founded in 1925 and the strongest brand among different products of the San Miguel Foods Inc., is even firmer in its resolve to regain market leadership in bulk ice cream through innovations in product packaging and introducing cheaper but premium quality products.
The bulk ice cream market which was pegged at P5 billion in 2007 is dominated by Unilever’s Selecta brand with 40 percent followed by Nestle with 35 percent and Magnolia with only two percent.
But given the strong brand equity and aggressive marketing push—with the help of its mother company, San Miguel Corp — Magnolia ice cream is confident about meeting its vision of becoming the “preferred and trusted name in the dairy industry.”
Magnolia has introduced in the market the 21st century in-mould scratch-proof labeling, typical of packaging materials in Europe and North America.
The new packaging materials are not just microwavable but are also good in collecting for home use as they are decorative and useful, said Pinky Custodio, brand manager of Magnolia Ice Cream.
Magnolia gold label will sell for P199 per 1.5 liters (versus the P220 of competitors); classic flavors at P169 per 1.5 liter and limited edition for P210 per 1.5 liter.
Magnolia’s Alcon said the decision to price its products lower than current leading brands “is a strategy to inform our patrons that we are back to serve them their favorite classic Filipino tasting ice creams that they have grown up with in the sixties and 70s.”
“Our customers for bulk ice creams are usually the moms of the 60s and 70s who bring home our product and introduce them to their young kids, who in turn become our new clients,” Alcon said.
Eventually, the company plans to resurrect its parfaits and splits ice cream parlors—similar to what it put up in Aurora Boulevard in the seventies to cater to the need of people to socialize while eating their choice of special ice cream dishes. The old Magnolia ice cream parlor was part of the assets bought by Nestle Philippines Inc. in 1996.
Alcon, however, said the land is being leased by Nestle and its lease is due to expire by 2009.