Lamoiyan corporation financial statement
Situation Analysis Colgate-Palmolive and Unilevers entrenched status in the minds of its consumers, their influence in the industry, and their domination in terms of market shelf spaces made it nearly impossible for new players to enter the game.
Sales Cyclicity Toothpaste industry is not greatly affected by GDP variations because it has been priced below the premium brands. Being a local company operating within the country has made Lamoiyan more resilient to the dynamic economic conditions of the country moreso than the multinational brands, and is therefore capable of maintaining its low price despite the competitors actions and various external circumstances.
Aggregate Market Category Size Based on competitor press releases, toothpaste category size is reaching up to 15 billion pesos, 50 percent accounted for Colgate, 25 percent for Close-up and 20 percent for Hapee. It was hard to be competing with two multinational brands especially when plastic tube became popular in Due to his lower investments in distributive, manufacturing and advertising costs, Happee became resilient in maintaining its lower price compared to that of its competitors.
Lamoiyan corporation deaf
Pedro then decided to engage in a particular area their competitors could not retaliate in, which is price. This possibly undermines Happees popularity and makes them less preferred by the majority. The multinational competitors initially did not see Happee as a direct threat, instead considering the upstart brand as a marginal low-end product that was benefiting from temporary economic trends. It will indicate for about 22 billion pesos profit in the industry 2. Its status as a local company enabled Lamoiyan to utilize more direct marketing efforts at lower prices that foreign firms do not have access to. Toothpaste is synonymous to Colgate, and consumers have a preference to Colgates taste more than the taste of any other brand. By offering much lower prices, Lamoiyan sells a larger volume of products despite smaller margins. Targeting niche markets are further bolstered by focusing on the smaller-scale sari-sari stores rather than directing competing for shelf space with bigger companies in commercial markets. Product availability was a barrier to Lamoiyans growth since the majority of distribution channels are dominated by Colgate and Close-Up, and Lamoiyan lacked the sachet-packaged toothpaste products preferred to its most accessible distribution channel, the sari-sari store. He also targeted niche markets through product variations, creating toothpaste designed for children and packaged accordingly with popular characters. Due to the invention of plastic tubes, from growth, Hapee almost reached decline stage.
The company has also been conservative in its actions, making sure they do not act harshly and do not stimulate any retaliatory actions its competitors might make in order to kill Lamoiyan. By offering a lower price, their sales volume and demand are much higher.
Lamoiyan prefers to create smaller shares in more markets to avoid any competitors response than trying to capture the competitors market share themselves. Happee toothpaste captured marginalized and minute niche markets such as the children and elderly market segments, and such segments are often overlooked by the bigger players.
ACS Vision: To be the most value-innovative, cost-efficient, and reliable manufacturer and marketer of high quality branded laundry detergents, household and personal care products that enrich the lives of Philippine consumers. Other substitutes existing in the country were preconventional means such as salt and baking powder.
Feasibility - the strategy must neither overtax available resources nor create unsolvable sub-problems. The company has already raised capacity to 10, metric tons from 6, metric tons with the Pmillion investments.
Product Life Cycle Introductory and growth level for Hapee was not so easy.
Lamoiyan corporation employees
Due to Filipinos inherent colonial mentality, consumers initially fear that locally produced goods were inferior, and this concern is prevalent in society today. Also, by targeting the childrens market segment, Colgate had moved in too late and could not match Hapees first mover advantage. Upon Happees launch, Lamoiyan experienced months of failure caused by three major barriers: 1 the consumers perception that locally produced goods were inferior, 2 the consumers preference for Colgates taste, and 3 the lack of awareness or the Happee brand. He established brand awareness through various community outreaches such as sponsoring the Philippine Olympic team, partnering with D. Vision: "As we plan our strategies to sustain growth for the years to come, our core values of Caring, Global Teamwork and Continuous Improvement will continue to drive our future initiatives. Environmental C. Product differentiation would be difficult since almost all toothpaste is the same to the consumer, and toothpastes are already synonymous to Colgate and Close-Ups brands. In doing so, Happee achieved some brand loyalty to these segments that the competing players can not duplicate.
based on 109 review