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In the late 1970s, Dr. Pedro’s Aluminum Containers, Inc. stood as the major supplier of aluminum collapsible toothpaste tubes to Colgate-Palmolive, Procter and Gamble and Philippine Refining Company (PRC) now Unilever. Aluminum Containers, Inc. enjoyed profit growth due to the increasing demand from the country’s leading toothpaste manufacturers.
However, in 1985, these companies began using plastic laminated tubes. Although this caused Dr. Pedro to close his factory, he realized his old equipment could still be put to good use by forging into the Philippines toothpaste market on his own. Two years later, he reopened his factory as Lamoiyan Corporation, now known as the manufacturer of toothpaste brands’ Hapee and Kutitap.
Growing From Start-up to Market Dominator
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When Dr. Pedro entered the market in 1988, the big toothpaste makers controlled 99% of the market. Today, that figure has dropped down to 65%. The first step of Dr. Pedro's strategy was to target the multi-nationals' achilles' heel: price. While Dr. Pedro knew that he could not compete in areas such as promotion and distribution, his decision to cut price by 50% won an immediate response from consumers. However, when Colgate followed suit with a 20% price cut, Dr. Pedro turned to market diversification. Among other things, he developed multi-flavored toothpaste for children. It took Colgate three years to respond, but by that time, Lamoiyan had already successfully captured the new market.
With perseverance and effective advertising, and by selling his product at a price 30% lower than the leading brands, Dr. Pedro succeeded in making Hapee the No. 3 toothpaste brand in the country.
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In addition, Dr. Pedro targeted specialized markets, by diversifying his product line to include Hapee Kiddie Toothgels, Dazz Dishwashing Paste and Dazz All-Purpose Kitchen Cleaner, Fresher feminine wash and Gumtect, a special gum-formula toothpaste , which larger companies did not find profitable.
Lamoiyan Corporation has been recognized as the Most Outstanding Toothpaste Manufacturer by the Consumer's Union of the Philippines for seven years. The company was also recognized by the Personnel Management Association of the Philippines (PMAP) as having the Most Outstanding Program for Equal Employment.
Expansion
With this drive and faith, Dr. Pedro has no plans of slowing down. In November of 2004, Lamoiyan has earmarked P100 million to expand its business and establish presence in neighboring |
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countries such as China, Vietnam, and Indonesia, and later on become the preferred brand in Asia. Dr. Pedro stated that the fresh capital would be used to acquire additional machinery that would double the firm's toothpaste production capacity to 6,000 tons which equates to approximately 1.5 Billion Pesos in total revenue. Dr. Pedro said the company's expansion plans were meant to support its bid to become a transnational company. "We are working to establish overseas operations, initially in Vietnam, and we hope to do this within the year," he said. "We want to be the Colgate of Asia and we can only do this by getting bigger."
He added that the increase in the capacity of Lamoiyan's Bicutan factory meant doubling its 60-person workforce, a third of which are hearing-impaired. In 2003, Lamoiyan grew by 12% and the company hopes to repeat this record this year. |
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Social Responsibility
While enjoying the success of being the first Filipino to ever penetrate the toothpaste market that has been dominated by multinational companies, Dr. Pedro has chosen to use his entrepreneurial skills to help provide opportunities to others. A staunch advocate of the hearing impaired, Dr. Pedro helps provide free college education to at least 180 deaf-mute students through the Deaf Evangelistic Alliance Foundation, Inc. (DEAF), which he currently chairs. He was recognized by the Department of Education, Culture and Sports for the continuing efforts of D.E.A.F. providing education to the hearing-impaired in alleviating their conditions and providing them with adequate education.
Dr. Pedro also employs over 30 deaf-mute staff in his company, and helps provide them with free housing. To narrow the communication gap between his |
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hearing-impaired and hearing personnel, Dr. Pedro has also required his managers to learn sign language.
“My primary intention is to encourage more businessmen to be socially responsible—to help people and to give back to the community,” he shares. “Being socially responsible is not only taking care of the hearing impaired, but also taking care of your people. You provide a decent place where they can work safely,” he adds. “I also believe in taking care of my employees’ physical, intellectual, and spiritual well-being.”
Of these three aspects, Dr. Pedro puts a premium on creating means by which his people can grow spiritually. His company holds regular Bible studies and prayer meetings to help make food for the soul. Their singular corporate motto is “Making the difference for the Glory of God.”
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