“If there is anything more than evident than my success as a businessman, it is my faithfulness to the word of God.” - Cecilio K. Pedro, TOYM Awardee for Entrepreneurship, 1991

Filipinos Go Global:
Cecilio K. Pedro
Krish Rainjit R. Salas

Faced with a great Goliath in life, this businessman turned to his master for help and wisdom.

The story of Cecilio K. Pedro and the Lamoiyan Corporation, makers of Hapee Toothpaste is a triumph of faith over adversity.

Cecilio Pedro is President and General Manager of Lamoiyan Corporation which not only produces one of the top three toothpaste brands in the country, already being exported to Europe and Asia, but also manufactures detergents, fabric softener and other household care products that enjoy significant market shares in the Philippines. Mr. Pedro is a recipient of many awards, among them, the Agora Award for Marketing Excellence in 1993, the Dr. Jose P. Rizal Award in 2002, and the Aurelio Periquet, Jr. Business Leadership Award in 2003. A devout Born-again Christian, he is very active in his Church and has been involved in many socio-civic causes. He was President of the Manila Jaycees from 1992 to 1993 and President of the JCI Asia-Pacific Jaycee Senate in 2003.

Everything can be an opportunity

If there is an entrepreneur who does not have the word "loss" in his vocabulary because he believes that anything and everything can be an opportunity, it is Cecilio Pedro. Further, he has shown how an opportunity can transform into one's lifework.

In the late 1970s, Pedro’s Aluminum Containers, Inc. stood as the major supplier of aluminum collapsible toothpaste tubes to Colgate-Palmolive and the Philippine Refining Company (PRC). 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. He knew he had to close down his factory when his clients started switching to plastic tubes.

But Pedro's outlook that the "eternal life is more important than temporal life" made him impervious to losses in business. He saw his loss as an opportunity to turn things around. Instead of throwing away his equipment for making aluminum tubes, he thought of providing an alternative toothpaste for Filipinos, particularly those in the low-income bracket. Two years later, he reopened his factory as Lamoiyan Corporation, now known as the manufacturer of toothpaste brands Hapee and Kutitap. Lamoiyan is the Cantonese name of his late grandmother – the first Christian in their family – and who remains his inspiration to this day. Wanting something catchy with strong recall, Pedro mulled on a play on the word "happy."

"Because when you're smiling, you're happy!" he said in an article in the Philippine Star in 2006. He said he originally wanted to name the product Smile but this was already registered by Procter and Gamble.

A cheaper price–about half of that of his competitors–wasn't the only thing that Pedro kept in mind when he launched Hapee. Above all, it's Filipino made, he pointed out in the same write up.

Establishing a brand in the Philippines, which is a very important step for Filipino brands that aim to go overseas start with, is probably be the hardest to do, especially since Filipinos are very import oriented.

In the case of Hapee Toothpaste, when Lamoiyan Corp. was still a fledgling company, Pedro chose to sponsor the 1988 Philippine Olympic Team. People thought that Hapee Toothpaste was made by a multinational corporation after seeing the brand in an international venue. The “tremendous brand awareness” eventually translated to actual sales.

With perseverance and effective advertising, and by selling his product at a price 30 percent lower than the leading brands, Pedro succeeded in making Hapee the No. 3 toothpaste brand in the country.

A cheaper price and effective marketing strategy were the leverage for Hapee in capturing a big chunk of the market, but Pedro notes in his Star interview: "After capturing a substantial share of the market, I thought if I were to stay this way I would remain a small market player. If I wanted to meet big multinational companies head on, I would have to upgrade."

Upgrading not only meant converting to plastic tubes in 1998 but also expanding his product line to include Dazz dishwashing paste and liquid, Tenderly fabric enhancer, Fash liquid detergent, Gumtect gum formula toothpaste and Kutitap toothpaste, which is now Lamoiyan's prime product for the poor.

Taking his products to the next level in terms of quality and packaging took five years. It also meant hiring consultants, some of who have since become part of his company, like Teodulo Manlubatan, now senior assistant vice president of supply chain management.

Manlubatan reports that the company has achieved a growth of nearly 40 percent over the past year, and attributes this to improvements in the supply chain and marketing and product development.

Hapee to help

While enjoying the success of being the first Filipino to ever penetrate the toothpaste market that has been dominated by multinational companies, Pedro has chosen to use his entrepreneurial skills to help provide opportunities to others. A staunch advocate of the hearing impaired, Pedro helps provide free college education to at least 200 deaf-mute students through the Deaf Evangelistic Alliance Foundation, Inc. (DEAF), which he currently chairs.

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 hearing-impaired and hearing personnel, Pedro has also required his managers to learn sign language.

In most of his interviews and speeches, he never forgets to highlight his primary intention which is “to encourage more businessmen to be socially responsible—to help people and to give back to the community.” For him, being socially responsible is not only taking care of the hearing impaired, but also “taking care of your people,” which includes providing a decent place where people can work safely. He also believes in taking care of his employees’ “physical, intellectual, and spiritual well-being.”

Of these three aspects, 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 “To make a difference for the Glory of God.”

With this drive and faith, Pedro has no plans of slowing down. He hopes to establish Lamoiyan in neighboring countries such as China, Vietnam, and Indonesia, and later on become the preferred brand in Asia. It is not unlikely that Pedro will reach his goal, given the obstacles that he has overcome and the opportunities he has made for himself and so many others. Pedro’s Lamoiyan may not be a giant yet in his chosen industry, but it already stands tall in making a difference in the lives of many less fortunate Filipinos.#

References:

BusinessWorld. “Cecilio Pedro: Hapee to Help.” BusinessWorld. 31 January 2005. Available from

http://www.ey.com/GLOBAL/content.nsf/Philippines/Entrepreneur_Of_The_Year_2004_-_Finalists'_profiles?OpenDocument&ExpandSection=5. (Accessed 22 February 2008).

Corvera, Ann. “Hapee to Serve You!” The Philippine Star. 20 August 2006. Available from

http://www.truthforce.info/?q=node/view/1855. (Accessed 22 February 2008).

David, Michael. “Pinoys Go Global 2.” Enterprise. May 2007. Available from

http://www.enterprise.ph/?_s=8&_ss=P&P=3&PN=4724&L=S&II=113&ID=S,113,B3,B3-3. (Accessed 22 February 2008).