Lamoiyan Corporation

History The Lamoiyan Corporation did not start as a toothpaste manufacturer, rather as a supplier of aluminum collapsible toothpaste tubes to toothpaste manufacturers. In 1970s, Dr. Pedro‟s Aluminum Containers, Inc. enjoyed profit growth due to the increasing demand from the country‟s leading toothpaste manufacturers, ColgatePalmolive, Procter and Gamble and Philippine Refining Company (PRC) now Unilever. However, in 1985, these companies b egan using laminated tubes and left Dr. Pedro‟s Aluminum Containers, Inc. but instead of closing his factory, throwing into waste the entire leftover toothpaste container and having 200 people employed in his company go unemployed, he decided to make his own toothpaste and place it in his aluminum containers. Two years later, he reopened his factory as Lamoiyan Corporation, now known as the manufacturer of toothpaste brands‟ Hapee and Kutitap.

Our History 1970s

 Aluminum Containers, Inc., o wned by Dr. Cecilio Pedro, becomes t he major supplier of aluminum - collapsible toothpaste tubes to Colgate-Palmolive Co. Procter and Gamble Co., and the Philippines Refining Company (PRC) now Unilever Group.

1985

- was left a stockpile of aluminum tubes with nothing to do with them.

The companies began to use plastic laminated tubes instead of aluminum collapsible tubes. Mr. Pedro

Reluctant to dispose of the factory's equipment. Dr. Pedro decides to reopen his factory as Lamoiyan Corporation, the first Filipino company to penetrate the toothpaste industry. With only less than 20 employees, the company produces world-class brands Hapee and Kutitap at affordable prices.

1988

Hapee toothpaste, the toothpaste brand of Lamoiyan Corporation, sponsors the 1988 Philippine Olympic Delegation. Lamoiyan Corporation is recognized as the official toothpaste of the Olympics to Seoul, South Korea. Lamoiyan Corporation gains respect of consumers to garner several awards such as Most Outstanding Toothpaste Manufacturer (1990, 1993, 1995, 1996, 1997, and 2002), TOYM for Business Leadership (1991), Company of the Year by Agora Awards (1992), Apolinario Mabini Award for Employer of the Year  (1993), and Most Outstanding Program for Equal Employment (1993).

1990s

-

2004

- Indonesia.

2008

- Lamoiyan Corporation celebrates its 20th Anniversary with the theme "Partnership, Passion, and Prayer.

2012

- forward to "bigger and greater heights" as it celebrates its 25th Anniversary next year.

The company decides to expand its business to neighboring countries such as China, Vietnam, and

Hapee toothpaste exports to the Middle East, Papua New Guinea, Russia, and Hong Kong. It looks

Mission, Vision, & Values Lamoiyan Corporation is a 100% Filipino-owned Company with 25 years of manufacturing excellence. Here at Lamoiyan Corporation, we are fueled by our corporate philosophy which is to make a difference for the glory of God.

OUR MISSION We exist to improve the quality of life by bringing essential products within the reach of the common people

OUR VISION We aspire to have a Lamoiyan product in every home.

OUR VALUES We achieve our mission and vision by living according to our  corporate values. SOCIAL RESPONSIBILITY. We make our presence a blessing to society. PURSUIT OF EXCELLENCE. We do things better than before and better than competitors. INTEGRITY. We do things right. RESPECT FOR THE lNDIVIDUAL. We value individuality by treating each other with fairness. TEAMWORK. We reach collectively goals that we cannot reach separately.

Our Work Culture: I.T. C.A.N. BE.! In Lamoiyan Corporation, we create a work culture that encourages our employees to embrace an IT-CAN-BE attitude.

INTEGRITY. We are committed to doing things right in all our endeavors. TRANSPARENCY. We practice openness and honesty in all our business transactions. COMMUNICATION. We provide channels for mutual feedback throughout the organization. APPRECIATION. We recognize and reward our employees’ dedication and service to the company. NEVER GIVE UP. We courageously face our competitors until we have achieved our goals.

BE WILLING TO LISTEN. We strive to learn more and grow as a company. BE WILLING TO CHANGE. We embrace changes that will transform us for the better. BE A LEADER. We develop and train ourselves to become catalysts of change in our society.

Awards & Recogntion Most Outstanding Toothpaste Manufacturer  Consumers’ Union of the Philippines (1990, 1993, 1995, 1996, 1997, 2001, 2002)

AGORA Award’s for Marketing Company of the Year  Philippine Marketing Association (1992)

The Big Bird Award:  Asia Licensee of the Year Award Sesame Street (2007)

TOYM Award on Business Leadership JCI Philippines (1991)

Consumers Excellence Award Who's who in the Philippines (1993)

Awards for Excellence The Manila Times Dr. Jose P. Rizal (1993)

Presidential Citation Award Taking Dentistry to the Next Level Philippine Dental Association (2007)

Communication Excellence in Organization (CEO Excel Awards) International Association of Business Communicators (2009)

MVP Bossing Award PLDT SME Nation PLDT (2011) Most Outstanding Supplier  SM Supermarket (2007)

Most Outstanding Program for Equal Employment Opportunities for the Disabled PMAP (1993)

Apolinario Mabini Rehabilitation Award Employer of the Year  Republic of the Philippines (1993)

AGORA Award for Advocacy

Philippine Marketing Association (2012)

Toothpaste of the Olympics Seoul, South Korea (1988)

STRATEGIES 

Cecilio Kwok Pedro, CEO of Lamoiyan Corporation, knew that he could not compete in areas such as promotion and distribution, so he decided to sell his toothpaste at 50% of Colgate’s price to won an immediate response from consumers. Furthermore, Lamoiyan Corporation turned to market diversification. Lamoiyan Corporation by diversifying its product line to include Hapee Kiddie Toothgels which have multi-flavored toothpaste such as green apple, tutti-frutti, melon, orange, and strawberry for children, Dazz Dishwashing Paste and Dazz AllPurpose Kitchen Cleaner, Fresher feminine wash and Gumtect, a special gum-formula toothpaste, which larger companies did not find profitable. This make Colgate took three years to respond, but during that time, Lamoiyan Corporation had already successfully captured the new market.

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It also introduced Hapee Gold, a gum-care and gingivitis-preventing toothpaste that catered to consumers in their 40s and 50s. In addition, the corporation also developed Red and Green Sparkling Gel targeted toward teenagers. On the other hand, Lamoiyan Corporation also became the official sponsored of the Philippine Olympic team, it let the corporation used the Olympic rings in their advertising, so people thought the corporation had sponsored the entire Olympics, this let Lamoiyan Corporation got some momentum. In the mid1990s, the corporation decided to sponsor a Philippine Professional Basketball League team, known simply as Hapee Toothpaste.

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Furthermore, Lamoiyan Corporation spent 65% of Lamoiyan’s advertising budget on product sa mpling and traditional media advertising such as television, radio, and print to promote Hapee. It also sponsored all public schools in metro Manila so the brand “Hapee” appeared next to the school’s name on its main building and sponsored traffic signs in metro Manila and some of the provinces.

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During Philippines emerging from the financial crisis, Lamoiyan carried a 20% price cut of its own, this cut brought Hapee’s price discount versus Colgate’s to nearly 45% and increased Lamoiyan Corporation’s market share in 2001 and 2002. Lamoiyan Corporation also tried expanded beyond the Hapee brand with the introduction of Kutitap, which is the lowest-priced toothpaste, and also expand into additional product market like Dazz dishwashing paste.

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Intrinsically motivated, Pedro employed many employees who were having hearing impaired and he recognized that hiring handicapped workers, donating school buildings and performing other charitable acts increased publicity and enhanced product image.

Pedro also used these strategies which contribute to his company: A. Going public – In order to raise money and make Lamoiyan a public company, he first needed to clean-up the financial books, professionalized the company and increase profits. He hired a well known accounting firm to audit the books, recruited professional managers and began expanding new product lines.

B. Deeper channel penetration – In 2002, Lamoiyan distributors called on 22,000 sari sari stores and managed to stock Hapee and Kutitap toothpaste at 10% of those stores at any one time.

C. New Products – In order to increase leverage to fulfill the supermarket demands, Lamoiyan came out with new products that would complement the company’s existing product line. In 2002, Lamoiyan added tend erly, a fabric softener. Pedro planned to add mouthwash, a feminine wash, soap and laundry detergent.

D. International Expansion – The biggest barriers to success in international markets would be distribution access and brand recognition and he thus believed that it was essential to find a local partner, most likely a consumer products retailer or distributor who understood marketing and was willing to take the risk.