CECILIA M. Ordoñez grew up seeing her parents meet American buyers, procure materials for orders, and package gift baskets and other products for shipping abroad. Amo Philippines Inc. was established in 1973 by Cecilia’s parents as a typical cottage industry doing gift baskets. The business grew and the company would join trade exhibits here and abroad. Cecilia and her siblings helped out in the company in finance, production and sales.
While working for the company, though, Cecilia observed that management could have been stricter in running the company. The high level of inventory could have been controlled more. Controls could have been put in place to prevent pilferage. To make cash management more effective, cash advances to employees could have been given less freely.
And so when Cecilia, a marketing graduate of De La Salle University and MBA graduate of the University of Asia and the Pacific, had the opportunity to put up her own business, she made sure she adopted measures to lower costs and allow for flexibility by not being tied up with fixed costs. She put up Cecilia Josef Gift Collection (CJGC) in Mandaluyong City with business partner Joseph G. Aguiting two years ago to fill in the market demand in the housewares industry.
CJGC exports midrib peacock buri chairs, nursery chairs, baskets, and premium gift packaging items. It also caters to the local market by supplying the gift packaging needs of companies. Ninety-nine percent of its clientele are based abroad—U.S., Italy and Spain, among others.
Learning from her experience at her parents’ company, Cecilia implemented the following measures to protect the bottom line:
1. Do away with middle staffing. CJGC has a lean organization. The partners are hands on in the business, with Cecilia overseeing operations and sales, and Joseph overseeing finance, staffing and management.
2. Have no warehouse. Without a warehouse, fixed costs are kept to a minimum. Products are made as orders come in.
3. Send people to the origin of materials or merchandise. Since the products used for their items are indigenous, production is made where the materials are procured, and in many cases this is done in the provinces. Trucks are sent to these “centers” to pick up finished goods. Prototyping is done in the Mandaluyong office, though.
4. Hire subcontractors at the place of production. In this way, the organization is kept lean while providing jobs in the countryside.
5. Be strict with quality control. Rejected output are accounted for and charged against the worker.
“We developed our own business model,” says Cecilia. While the measures may seem radical to the pioneers, they may just be the things needed to survive and stay ahead in this highly competitive industry.
April 2009 Archives
HARDWORKING entrepreneurs can be counted on to be hands on in their businesses 24/7. An order hasn’t arrived at the end of the day? The businessman/woman will be on the phone instantly to find out from the supplier why the order hasn’t arrived. The computer system bogged down at 9 p.m.? No problem. The hardworking entrepreneur will go to the office to determine what’s wrong then communicate with the server people. Even on weekends, some entrepreneurs will still have business on their minds and will check on their stores (or the competition) if possible.
But working doubly hard for long periods of time without taking vacations can be bad for your physical and mental health. It’s like your body is on constant red alert. In an article entitled “Stress Basics,” staff at the Mayo Clinic say, “Over time, that level of stress leads to serious health problems.”
Migraines, back pains, vision problems and even allergies are just some of the health problems associated with work stress. While relaxation techniques and delegating tasks help, a good stress-free vacation can do wonders to recharge and reinvigorate the working man.
Early this month, I had a three-day vacation in Baguio with a friend who happens to be the editor-in-chief of a monthly magazine. Since both our schedules are always fully packed with work deadlines, meetings, interviews, and mommy duties, we welcomed the break and resolved to just chill. Our vacation schedule was not hectic, and several times we just caught ourselves staring at nothing, and saying over and over again how wonderful it is not to do anything. We ditched the touristy activities (no Mines View Park, horseback riding, and Burnham Park for us). Instead, we chose relaxing activities we could do with no rush: a trip to the salon for a mani-pedi, a luxurious massage at a spa far from the mall, visits to an art gallery and museum for a culture trip, and long meals at restaurants that serve delicious entrees and the freshest salads. We also took the stress-free ride to and from Baguio, taking the de luxe aircon bus with no stops. Needless to say, we both felt recharged even with just that short vacation—a far cry from other vacations that are so hectic, you need a vacation to recover from your vacation.
Have you used your vacation leave credits this year? Although it’s been raining now and then, summer is still here, a perfect time to chill either up in the mountain or down at the beach. :)
WE SEE the signs around us: more stores putting up "Sale" signs to entice more shoppers to come in, and less people eating out and buying clothes. Just how do Pinoys behave in a financial crisis like the current one?
“Some people ask, ‘With all our economic problems, why aren’t people out on the streets? Where are the riots?’ Coping is an uphill battle that has left consumers frustrated and overextended, and this is even more true for those at the bottom of the pyramid, which is the biggest chunk of our population,” says Emil Avenido, research director of the Philippine Survey and Research Center-Research International (PSRC-RI).
The reaction, says Avenido, is not aggression but of withdrawal: focusing on oneself and family. Family is very important to the Filipino.
In times like these, the Filipino consumer will most likely respond in the following ways, says Avenido:
1. Explore all possible sources of income. Rather than mount or join protests, he would rather continue finding ways to provide for the family’s needs. He might, for instance, look for rakets or sidelines like direct selling; extend working hours to earn overtime pay; seek out loans via formal and informal channels; and start a small business.
2. Change lifestyle. This means cutting down on going out, eating out, and having gimiks. “This cuts across all socio-economic classes,” adds Avenido.
3. Change buying behavior. The lower classes downsize to using smaller SKUs like sachets (thus the popularity of shampoos, conditioners, and detergent powders in sachet packs). The upper class on the other hand, upsize to a bigger SKU since they can save more by buying bigger or in bulk, and they’ll need to buy less frequently.
4. Change consumption pattern. The consumer may substitute one product for another, decrease consumption of a product, or totally drop or exclude an item from his shopping basket, especially if it’s a non-essential item.
5. Change brand attitude. The consumer may start to weigh performance vs. brand equity. Choices become more practical where product performance becomes more important than the brand.
6. Decide based on price. For those at the bottom of the pyramid, price is everything. The cheaper the better. “This is like a desperate act,” says Avenido.
7. Become more prayerful. "People pray more and go to church more. This is not really surprising. Malakas pa rin ang pananampalataya ng Pinoy," adds Avenido.
The high end market, on the other hand, may still continue their lifestyle and shopping habits, and this jives with what high end retailers have reported in recent months—sales are up. Avenido explains, “In a crisis, it’s always the middle and lower classes that are most affected. Luxury is a relative term. In the world of marketing, it’s all about being relevant—catering to a need. Luxury goods fulfill the needs of the upper crust. And if they can afford it, what would stop them from buying luxury items?”
So how can companies adjust to consumer behavior during this time? “Stay relevant to your target,” advises Avenido. “The company’s survival lies on its ability to respond to this seemingly uncertain times. In the past, we’ve seen how brands can suffer by ignoring changes in the marketing landscape, and how some survive and flourish through these challenges, even during crisis. Marketers cannot ignore the voice of the consumer. Listen to the market. Consumers are searching for products and services that meet their current circumstances. People can grow away from friends and loved ones, so it’s no surprise if they can part with their regular or favorite brands.”
WITH FACEBOOK being the most popular social networking site around the world, it’s time you got on it too. Did you know that you can use Facebook to promote your brand?
Here are some of the ways you can use Facebook for business:
1. Advertise. Of course. You can reach as much as 200 million active Facebook users according to the Facebook Advertising page. You may even have your ad sent only to your target market according to age, gender, location, and more. The ads are small and are not big and jarring like those on Yahoo Mail. You can put an image and short text in your ad. Payment can be based on the number of clicks or impressions.
2. Create a page and gather ‘fans.’ On the Pages section of Facebook, you can make a profile for your company and invite people to be ‘fans.’ You can post photos and announcements on your page and all your fans will see it. Inasal takeout place Tambokikoy’s and mommy products seller Mommy Matters have their own pages on Facebook.
3. Create an application. This is the fun part. You can create an application for instance, where gifts including your product can be given virtually by Facebook members. An example is the Tsitsirya application wherein Facebook members can send each other Chippy, Chiz Curls, Boy Bawang, Oishi Prawn Cracker, Chocnut, and Curly Tops, among others. Krispy Kreme has its own application wherein members can choose the donut they can send someone virtually.
No, I’m not being paid by Facebook to write this. I think it’s just cool that there are so many ways to put the word out about your brand—and Facebook is one such way. But you may also advertise on other social networking sites like Multiply. Explore the possibilities.
THE RECENT survey on corruption in Asia released by the Political and Economic Risk Consultancy (PERC) places the Philippines as the sixth most corrupt country in Asia in 2008. This is already a marked improvement from the country’s performance in 2007 when it was ranked the most corrupt country in the region then.
Bagging the title in 2008 is Indonesia, followed by Thailand, Cambodia, India and Vietnam. Perceived least corrupt in the region is Singapore, followed by Hong Kong, then Australia. (See story here.)
I first witnessed corruption as a young girl when I saw a jeepney driver slipping a P20 bill in between his driver’s license and LTO registration official receipt and handing this over to a policeman apprehending him in one of the major thoroughfares of Quezon City. When the policeman handed back his license and the jeep sped off, the driver chuckled and boasted to us passengers how he got away with just a P20 bill.
Small time indeed. Corruption, though, pervades almost every area, including the business world. Former Supreme Court Chief Justice Artemio V. Panganiban, in a speech delivered during the recent Leadership Conference Series 2 presented by De La Salle University, PLDT-Smart Foundation, and Smart Infinity at the Sofitel Philippine Plaza, cited the results of the Social Weather Stations Survey of Enterprises on Corruption conducted from September 9 to October 10, 2008. In this survey, Panganiban said, “a staggering 71 percent said they had been blatantly asked for bribes in connection with their dealings with government, like when they secured business permits, paid customs duties and income taxes, supplied the government with goods and services, or availed of government incentives.”
Today, we are seeing more people calling for and practicing integrity in the government and in business. During his term, Panganiban called on 2,000 justices and judges to adhere to four core values: independence, integrity, industry and intelligence. “From the 26,000 judicial employees, I pleaded for ‘DHL’: Dedication to duty, Honesty in every way and Loyalty to the Supreme Court. And from the 45,000 lawyers, I called for ‘EC’: Ethics and Competence. Finally, I asked all these sectors to help reform the judiciary by fighting the ‘ACID’ problems that corrode justice: limited Access to justice by the poor, Corruption, Incompetence and Delay in the delivery of quality judgments,” remarked Panganiban in the same speech.
There is hope in business as well. Panganiban further told the story of how PLDT chair Manny Pangilinan, on his second day, ordered that a briefcase full of cash representing his share of the commissions in the company’s advertising placements be deposited officially in the bank’s accounts.
Can corruption ever be eradicated in our country? The task may be enormous, but little steps like these count. If we were able to improve our standing on Asia’s most corrupt list from first to sixth in one year, we can do more in the coming years.
FILIPINA nurses, teachers, engineers and singers have long been recognized abroad for being topnotch in their fields wherever they may be. In business, Filipinas are also making their mark, from Josie Natori and Monique Lhuillier in fashion to Loida Nicolas-Lewis, chairman of TLC Beatrice, in business and finance.
In Dubai, two Filipinas are making it in the business world. Named Women of Substance by Dubai-based lifestyle magazine Illustrado are: Engr. Mary Jane Alvero Al Mahdi, a Filipina chemist who rose to the position of CEO in a reputed multi-disciplinary testing laboratory in the UAE and the first Filipina awardee in the prestigious Emirates Business Women’s Awards in 2008; and entrepreneur Isabelita Sabado-Warren, creator of Nanay Tuneng, a Filipino brand of condiments. Warren is also an active community volunteer and philanthropist who launched a feeding program in her hometown of Magdalena, Laguna last year.
This marks the second year that Illustrado magazine presented the Women of Substance awards to celebrate female empowerment and to be a source of inspiration to the local Filipino community. “This is our way of saying thank you and acknowledging the contributions of our female compatriots to society, and at the same time a vehicle with which to uplift the morale and profile of our community out here,” remarked Lalaine Chu-Benitez, Illustrado publisher and editor-in-chief. “By highlighting the achievements and efforts of our kababayans [compatriots], we wish to drive the message that all of us can make a mark someday if we only put our mind to it.”
Aside from Al Mahdi and Warren, the four other Women of Substance awardees honored at the Montgomerie Golf Club in Dubai last April 4 are Lilian Vargas, a senior manager at Dubai Duty Free who started out as shop assistant 24 years ago and now oversees 1,600 employees; Mariecar Jara-Puyod, Gulf Today senior reporter and UAE Filipino Press Club president; nurse Juliet Solas of Al Wasl Maternity Hospital, the only Filipina who has received a Dubai Government Excellence Award; and Clarita de Quiroz Craig, a classically trained pianist, singer, music writer and famous international model.
Benitez was quick to point out that this was not a popularity contest. “We actually take pride in showcasing the achievements of real people – real role models, to show that we can be significant despite our ordinary existence today.” Filipinos are really world-class!
(Photo: Photo shows from L-R: Women of Substance awardee Juliet Solas; event facilitator Sangeeta Kapoor; awardees Isabel Sabado-Warren, Engr. Mary Jane Alvero Al Mahdi, Mariecar Jara-Puyod, Lilian Vargas, and Clarita de Quiroz Craig; and Illustrado publisher and editor-in-chief Lalaine Chu-Benitez)
