Submitted by:

Barlaan, Patricia Isabel G.

Submitted to:
Professor Christopher Malanum

Introduction
Splash Corporation is a publicly listed Filipino company with business interests in
personal care and food manufacturing, marketing, and distribution in the Philippines and in the
international market. Founded in 1985, Splash was able to grow from a Php12,000 backyard
business into a Php3.5 billion enterprise through the vision, innovation and commitment of its
founders Dr. Rolando B. Hortaleza and Dr. Rosalinda A. Hortaleza.
Splash is a market leader in three personal care categoriesexfoliants, skin whitening
lotion and hair coloring based on December 2013 report of AC Nielsen. SkinWhite is the
number 1 whitening lotion with 24 percent share by value and 20 percent by volume. Maxi-peel
Exfoliant Solution has 79 percent share by volume and Kolours is the number 1 hair dye product
with 31 percent share by volume and 25 percent by value.
In 2011, the Splash Group acquired Barrio Fiesta Manufacturing Corporation to gain a
foothold in the food industry through the Barrio Fiesta branded shrimp paste, recipe mixes and
flavored vinegar. In 2012, it acquired Moon dish Corporation with its canned line of ready to eat
canned products.
Having established a commanding presence in the Philippines, Splash has set its sight on
international operations. Its personal care products have successfully gained a presence in North
America, the Middle East, ASEAN and Africa. Its food products are strengthening its penetration
in North America and the Middle East. To date, Splash has established market presence in over
30 countries through its distributors and local exporters.

Corporate Cause
We shall uplift the pride and ell-being of the individuals and societies we serve.

Vision
We are the leading provider of pioneering, innovative and globally competitive consumer
goods and services.

Mission
We are a fast moving consumer goods marketing company that shall be known for strong
brand management and making accessible pioneering, quality, innovative products derived from
extensive research, to improve the well-being of our consumers. We shall be generous in sharing
the rewards with our employees, business partners, stockholders and our community for the
realization of our corporate cause. We shall uplift the pride and well-being of the individuals and
societies we serve.

Core Values
Faith in the Almighty
We believe that our success is made possible by the infinite goodness and guidance of
God. All our triumphs, therefore, are dedicated to His greater honor.
Ethical Governance
Our organization shall uphold the highest levels of ethical standards and professionalism
in the conduct of its business.

Personal Integrity
We are committed to uphold honesty when conducting business. Our career is based on
ethics. Our service, founded on sincerity.
Sense of Belonging
We are colleagues, friends, one family. We shall maintain a strong relationship among
individuals in our organization, based on genuine caring, understanding, and righteousness.
Social Responsibility
We pursue social responsibility by giving back to the community and making
contributions of enduring value.
Customer Orientation
We listen to our consumers. We get to know them. Because we exist for them, their
deepest desires fuel ours. They are our true partners in innovation.
Productivity & Excellence
We aim to go beyond our limits. We seek to be better by doing things right, by working
smart. And thus, produce more than expected, and deliver even before the expected time.
Pioneering and Innovative
By driving opportunities and challenging the status quo, we are able to come up with
breakthrough, first-in-the-market, value-adding products.

Objective
Leading edge trade and consumer marketing systems
Pursuit of excellence in all other business systems.

Industry Definition and Overview

Splash Corporation is a group that primary sells its product to major supermarkets and drugstore,
top wholesalers, large convenience stores, and regional distributors. The regional distributors
handle two other major trade groups namely Modern Trade and General Trade. Modern Trade
consists of all large accounts outside of the top supermarkets. General trade is composed of small
retail trade outlets including groceries, drugstores, sari-sari stores and market stalls. With the
launch of the direct selling business in November 2009, the Company increased its distribution
through the independent dealers. International Operations use local consolidators and in country
distributors to sell its products worldwide. The company generally complies with all
environmental laws and regulations, and invests appropriately to ensure compliance

Sourcing and Access to Raw Materials

The Company sources its raw materials (primarily chemicals and fragrances) and packaging
materialsfrom accredited local suppliers. The supplier accreditation process considers the
following as criticalperformance criteria: quality, pricing, and timely delivery.Splash Corporation
uses raw materials that are commonly and readily available. Value creation comesfrom the
mixture and synergy of the chosen materials. To safeguard the confidentiality of
productformulations, these materials are coded and known only to senior research and
development officers.The Company purchases its raw material requirements locally to ensure
short delivery lead times.Imported raw materials are procured through the representatives or
local affiliates of foreign suppliers.Purchases are paid in pesos so that currency risks are not
taken.Furthermore, the Company normally has two (2) or more accredited suppliers for each type
of raw andpackaging material, ensuring uninterrupted availability. The Company avails of 60 to
90 day paymentterms provided by suppliers. There is no existing major supply contract.

Companys Policies
CONFLICT OF INTEREST POLICY
The Company expects everyone in the organization, from the ordinary rank and file up to the
Members of the Board of Directors, in the performance of their duties, to be objective, fair and
to act for and in the best interests of the Company. The following and analogous acts are
prohibited:
Self-dealing and Cronyism
Accepting gifts, benefits and/or favors from business partners
Influence peddling
Unauthorized use of confidential information
Outside employment or moonlighting that compromise or interfere with ones commitment and
duties to the organization
Using Company time and property for personal advantage/advancement
Nepotism

RELATED PARTY TRANSACTIONS POLICY

Business Units under the Splash Corporation are diversified in its operations; hence, one
business unit may be a customer of another business unit and so on. While each business unit
operates distinctly or as separate entity from each other, the group is created to operate in a
manner that will provide synergy and maximization of opportunities to increase shareholder
value within the parameters allowed by law. Intercompany transactions are therefore inevitable.
To standardize, regulate and monitor transactions within the Group as well as to improve
transparency and strengthen internal control within the context of good corporate governance,
transactions with related parties are expected to comply with the requirements of applicable tax
law, rules or regulations and shall be subject to appropriate corporate approvals and disclosures.

Executive Officers

Rolando B. Hortaleza,
M.D. Chief Executive Officer
Eric Roel E. Domagas
President and Chief Operating Officer
Veneranda M. Tomas
EVP and Chief Financial Officer
Jose G. Vega S
VP and GM for Philippine Operations
Pedro G. Picornell
VP for Research and Supply Chain Management
Lynneth P. Malabanan
VP for Corporate Services
Ace Vincent V. Villareal
AVP and Head of International Division
Garyzalde O. Morales
AVP and Head of Direct Selling

The Companys products and brands are classified into 3 basic categories
These segments consist of:
Naturals a group of products whose active ingredients are
derived from natural or herbal sources.
Biolink VCO (Virgin Coconut Oil)
Biolink (Tea Tree Oil)
Biolink (Green Papaya)
Extract (calamansi, papaya, avocado, and
cucumber)
Skin Care products that are positioned to provide total skin care
solution through the innovative use of potent non-herbal
active ingredients.
Maxipeel (exfoliants)
SkinWhite (skin whitening)

Extraderm (anti-aging).
Hair Care consists of hair care products.
Kolours (hair dye)
Vitress (cuticle coat)
Control (hair dressing)

Established
1985

Owner
Dr. Rolando and Rosalinda Hortaleza

Location
Canumay, Valenzuela City

Marketing Strategy Decision Area

Business Developments
In 2002, Splash invested in a P400 million state-of-the-art manufacturing complex in
Canumay, Valenzuela City which is expected to meet the Company's capacity requirements in the
medium-term. On November 15, 2007, the Splashs shares of stocks were listed in the Philippine
Stock Exchange under the stock symbol SPH.
In 2009, the company made three major moves. In August, P.T. Splash Cahaya was incorporated
in Indonesia as part of companys expansion overseas. On November, the company went into the
direct selling business by launching the First Business Center. A month later, Splash established
the Acceleron Distribution Corporation to distribute certain brands to large-scale supermarkets.

Segments of Business

Splash Corporations brands continue to maintain their leadership and dominant positions in the
categories where they compete, despite the influx of new, competitive products.
Whitening, Exfoliant and Hair

PESTLE Analysis

Politico-LegalEnvironment

Patents and
Trademarks
Government
Approval and
Regulation
Compliance with
Environmental
Laws

Economic

Unemployment
rate and
consumers
disposable income

Socio-cultural

Older
population
tends not to
be interested
in the latest
products
Foundation
establish by
Splash
Corporation

Technological

Research and
Development
of new
product using
cutting edge
technology

The Company considers as its principal competitors the following global

cosmetic and personal care companies:
Unilever Philippines
Colgate Palmolive Phils. Inc.
Procter & Gamble Phils. Inc
LOreal Philippines, Inc.
Beiersdorf AG
Johnson & Johnson, Phils. Inc
Avon Cosmetics, Inc

SWOT Analysis

Strengths

Barriers of market entry

Skilled workforce
High growth rate
Domestic market
Unique products
Pricing power
Diversification

Opportunities

Growing economy
Global markets
New products and services
Innovation

Weaknesses

Future profitability
High loan rates are possible
Future competition
Small business units
Investments in research and
development

Threats

Price changes
Bad economy
Substitutes products

Strategy
The Splash Corporation do the focus strategy that is based on choice of Narrow competitive
scope within an industry. Beauty products manufacturer Splash Corp. is diversifying into food
manufacturing with a deal to acquire 80 percent of Barrio Fiesta Manufacturing Corp. for P472
million.
The acquisition, which seeks to boost the companys position in the fast-moving consumer good
segment, does not include the Barrio Fiesta chain of restaurants.
Acquiring a legacy brand such as Barrio Fiesta definitely establishes our place in the food
industry, said Splash chief executive officer Rolando Hortaleza. As in the personal care
business, which we have built for 26 years, we intend to establish our mark in the food industry,

starting off with the Barrio Fiesta brand of products. This will propel the company to be a major
player in this industry.
The manufacturing unit produces and sells meal essentials and condiments used in everyday
meals of Filipinos locally. These products are also exported and consumed by overseas Filipinos.
We intend to be big in this sector of the food industry because we believe with the Barrio Fiesta
brand we now have a credible brand name that evokes images of tasty and quality food,
memories of celebration and Filipino tradition, that we can expand to other food lines and which
we can capitalize in our marketing and distribution capabilities in specific countries, Hortaleza
said.
Splash plans to launch various food products in the next two years as part of its goal to be a
major player in the food industry.
Founded in 1985, Splash grew from a P12,000 backyard business into a P4-billion enterprise
under the auspices of the Hortalezas. It carries the brands Extraderm, Maxi-Peel and Skin White
as well as one of the fastest growing skin care brands in the Philippines.
Barrio Fiesta Manufacturing was established in 1987 to bring to the tables of Filipino families
high quality food and to share the experience they gained in Barrio Fiesta restaurants since 1958.
Its products range from sauted shrimp paste to ready-to-eat canned meals, sauces such as white
vinegar, fish sauce, soy sauce and lechon (roast pig) sauce, to fruit preserves and other
condiments. In keeping with its commitment to home-style cooking, Barrio Fiesta products have
no preservatives.

VISUAL PRODUCTS OF SPLASH CORPORATION

FOUNDATION BANNER

Marketing Mix :
PRODUCTS
Splash Corporation sells whitening and exfoliating products. They are the only direct
selling with whitening and exfoliating products.

PRICING
Their products are fixed in price and not subject to bargain. Commonly, they produce
low-cost alternative products, where affordability and cash basis for the customer.

PROMOTION
Splash Corporation promotes their product through catalog, flyers and seminars, SPC
advertises or promotes their products through celebrity endorsement.

PLACE
Splash Corporation has 60 branches inside the Philippines, 7 in Metro Manila, 15 in
North Luzon, 13 in South Luzon, 12 in Visayas and 13 branches in Mindanao. They also
market their products to foreign distributors outside the Philippines and local
consolidators who export its products abroad.

Competitors Marketing Mix:

PRODUCTS

Splash Corporation competitors focus on building core global brands -which stands it in
good stead against its multinational competitors.

PRICING
The pricing strategy where the company instituted major cuts on the discounts they
provided on their products and increased advertising instead.

PROMOTION
The competitors wide presence has been built on successful product innovation with the
timely introduction of brand extensions well suited to changing consumer preferences.

PLACE
The competitors company has a strong global presence, with European, America and
Asia-Pacific as its key markets. Bringing International expertise to the service of local
consumers a truly multi-local multinational.

BCG MATRIX

Proposed Vision

Splash Corporation, will be the leading Filipino Global brand that will fulfill the growing
consumers need through providing a high quality but low cost of products

Proposed Mission
To become the leading company in the local and international market.
To continuously create and innovate more product for the whole market.
To promote not just the product, but the companys name as well.
To achieve the international market penetration through an innovative and convenient product
To give inspiration to the consumers.
To give satisfaction to the consumers, through products quality and development.

Goals and Objectives

1. To give a safe and affordable product to the consumers.
2. To increase sales in the entire product, not just the best sellers.
3. To advertise the companys name.
4. To help the people by bringing local but high quality product.
5. To enter the world market with our local products.
6. To continuously research and study on how to develop a product.
7. To capture the whole market by offering our product.
8. To continuously focus on giving satisfaction to the consumers.
9. To attain the missions of the company.

Target Customers
Current
Mostly of Splash Corporations products are for female market, fewer and lesser attraction
for male market.

Additional Change

Splash Corporation should capture the whole market by offering products that are flexible
to male and female.

Marketing Decision
Current: Splash Corporation sells whitening and exfoliating products. They are the only
direct selling with whitening and exfoliating products.

Change:
The company was known for having the largest market share in the Philippines personal
care industry but they must also create or innovate products that are specifically designed
for men and other cultures to be able to penetrate other market segments.

Financial Decision
Current: Their products are fixed in price and not subject to bargain. Commonly, they produce
low-cost alternative products, where affordability and cash basis for the customer. A policy of 1
month to pay and a 25% discount when you purchase their products.

Change:
SPC was able to grow a P12,000 backyard business into a P3.5 billion enterprise through
the vision innovation and commitment of its founders, Dr. Orlando Hortaleza and Dr.
Rosalinda Hortaleza. As of now, the company has more than a hundred investors.

Operation Decision
Current:
Change

The companys 2-hectare world class manufacturing complex is located at F.

Lazaro st. West Canumay, Valenzuela City that supports the companys expansion

activities both locally and internationally.

They invested in its R&D capabilities through investment in new technology, state
of the art equipment and development of competent and seasoned R&D

Specialist.
Their new materials came from accredited local suppliers to ensure short delivery
time.

Information Management
CURRENT:
CHANGE:

The company established Splash Research Institute to continuously develop new products
that will meet the growing needs of the personal care market and develop flexible brands
and product creation process to respond to changes in consumer preferences.

The company could also invest on individual or external researchers to evaluate the
current market trends, needs and wants.

Human Resource Management

CURRENT
CHANGE:

SPC invest in talents from the countrys colleges and universities and developed teams
into top professionals ready to occupy senior leadership positions in its marketing and
senior organization.

The company believes and is committed to the continuous growth of their employees.
Thats why they ensure that each employee would go under several trainings and
seminars. The companys and employees performance is measured by Balance Score

Card (BSC) system.

Product Positioning
Current

Pricing Strategy
Current
Promotion Practices
Current
Additional changes
Distribution Channels
Current
Additional changes
Product/Service Policies
Current

References

http://www.adb.org/countries/philippines/economy
http://www.abs-cbnnews.com/business/01/21/14/philippines-gdp-growth-seen-62pct-2014-un-report

http://arieljean.writersresidence.com/system/attachments/files/30418/original/Dove
Campaign2013.pdf?1369246448
http://www.emb.gov.ph/news/2009-09/GI_Brochure_as_of_0903_widpics%5B1%5Dno_co%5B1%5D._names%5B1%5D.pdf
http://www.scribd.com/doc/19533966/Splash-Corporation
http://www.scribd.com/doc/131208022/Splash-Corporation-Background
http://www.ukessays.com/essays/economics/a-pestel-analysis-of-the-cosmeticsindustry-economics-essay.php
http://s3.amazonaws.com/zanran_storage/www.buyusa.gov/ContentPages/15147511
0.pdf
http://shodhganga.inflibnet.ac.in/bitstream/10603/4984/12/13_chapter%204.pdf
http://www.euromonitor.com/beauty-and-personal-care-in-the-philippines/report
http://www.personalcaremagazine.com/Print.aspx?Story=6052
http://www.reportlinker.com/ci02134/Personal-Care.html