Success Story: Dr. Cecilio K.

Diokno

People thought Dr. Cecilio K. Pedro was crazy for going against big companies in the toothpaste
industry. Many years later, Hapee toothpaste remains as a major competitor against global
brands in the Philippines.

Cecilio Kwok Pedro, of Chinese descent, was born on 1953 in the Philippines. Even when he
was young, Pedro already has a knack for business, selling pens to his schoolmates. Dr. Pedro’s
story is not the rags-to-riches type, but his success is nevertheless admirable.

He graduated from Ateneo de Manila with a degree in Business Management. It was around
1975 when Cecilio to put up his own business. He borrowed P20,000 from his father and
founded Aluminum Containers, Inc., supplying collapsible aluminum toothpaste tubes to
Colgate-Palmolive, Procter & Gamble, and Philippine Refining Company. But due to
environmental concerns, the companies decided to use plastic-laminated toothpaste tubes instead
in 1985. Cecilio’s company took a huge blow, prompting him to close his business in the same
year.

Dr. Cecilio did not allow this problem to put him down. In 1985, he decided to start again and
established Lamoiyan Corporation. Lamoiyan was the Cantonese name of her grandmother,
whom he loved and look up to. It was her that introduced their family to Christianity.
The initial plan was to use the machines from his defunct company for epoxy but he thought that
the market was too small. Since he used to be a supplier for a toothpaste company, this is where
he focused the business instead, much to the disapproval of many. He developed his own brand
of toothpaste, Hapee. Contending against well-known, international brands is a tough one, so Dr.
Pedro realized that the only way that his toothpaste can get noticed is to sell them at a lower
price, 50% less that of Colgate and Close up. The company also developed different fruity
flavors of Hapee which enticed the children. They also manufactured the toothpaste in smaller
packs and sachets; hence, catering to different markets.

It was they took Lea Salonga as their first celebrity endorser to further improve brand awareness.
Hapee was getting 15% of the market already and getting a famous endorser increased it. In later
years they also introduced other variety of products like dishwashing pastes and fabric
detergents.

Not only is Lamoiyan Corporation known for creating a Filipino brand of toothpaste, but also for
its commitment to supporting the deaf community. The company employed hearing-impaired
people, and required employees to learn how to communicate with the deaf. And since he is a
devout Christian like her grandmother, Dr. Cecilio Diokno also founded and chaired the Deaf
Evangelistic Alliance Foundation (DEAF) which gave scholarship to the deaf community and
introduced them to Christianity, standing by the company’s motto, “To make a difference for the
glory of God.”
Our Company

Our Company
We are the first Filipino Company to succeed in penetrating the local toothpaste industry, long dominated by
multinationals, with our own brand of toothpaste, Hapee. Since our formal inauguration in March 1988, we
were able to maintain a consistent quality standard on our toothpaste. Because of this, we have become
patronized and love by the Filipinos nationwide.

Our Products
We provide a variety of quality products for oral care, household and personal care at an affordable cost. Some
of our brands includes Hapee, Kutitap and Gumtect toothpastes. Dazz dishwashing paste/liquid, and Licealiz
for lice infestations.
Our Advocacy

We believe that businesses have the best opportunities to serve their communities. This is why we take an
active part in various activities that help promote health, education, and the environment. Through these efforts
Lamoiyan Corporation hopes to contribute to the advancement and progress of the Filipino.

Our Affiliation
Chamber of Cosmetics Industry of the Philippines (CCIP)
Asean Cosmetics Association (ACA)
Philippine Chamber of Commerce and Industry (PCCI)
Buy Pinoy Movement
People Management Association of the Philippines (PMAP)
Vision, Mission, and Our Values
We are the first Filipino Company to succeed in penetrating the local toothpaste industy, long dominated by
mutinationals, with our own brand of toothpaste, Hapee. Since our formal inauguration in March 1988, we
were able to maintain a consistent quality standard on our toothpaste. Because of this, we have become
patronized and love by the Filipinos nationwide.

OUR VISION
We aspire to have a Lamoiyan product in every home.

OUR MISSION
We exist to improve the quality of life by bringing
essential products within the reach of the common people

OUR CORE VALUES

We achieve our mission and vision by living according to
our corporate values.

SOCIAL RESPONSIBILITY.
We make our presence a blessing to society.

PURSUIT OF EXCELLENCE.
We do things better than before and better than
competitors.

 INTEGRITY.
We do things right.
 RESPECT FOR THE INDIVIDUAL.
We value individuality by treating each other with
fairness.
 lNNOVATE.
We do our best to improve and introduce new products.
 TEAMWORK.
We reach collectively goals that we cannot reach separately.
Work Culture (IT CAN BE)
In Lamoiyan Corporation, we create a work culture that encourages our employees to embrace an IT-CAN-
BE attitude.
INTEGRITY.
We are committed to doing things right in all our endeavors.
TRANSPARENCY.
We practice openness and honesty in all our business transactions.
COMMUNICATION.
We provide channels for mutual feedback throughout the organization.
APPRECIATION.
We recognize and reward our employees’ dedication and service to the company.
NEVER GIVE UP.
We courageously face our competitors until we have achieved our goals.
BE WILLING TO LISTEN.
We strive to learn more and grow as a company.
BE WILLING TO CHANGE.
We embrace changes that will transform us for the better.
BE A LEADER.
We develop and train ourselves to become catalysts of change in our society.
Soriano: Legacy building: the Hapee Toothpaste story

PROF. ENRIQUE M. SORIANO

September 28, 2015

FROM being a household name in the Philippines, Hapee toothpaste is now being exported to
the Middle East, Papua New Guinea, Russia, Vietnam, Hong Kong and other Asian countries.
His company, which he named after his grandmother, has also expanded to provide dishwashing
liquid, anti-lice shampoo, fabric enhancer, detergent, feminine wash and Gumtech, a special
gum-formula toothpaste, among others.

Not giving up

Pedro is slowly winning the battle and gaining market share, but the toothpaste war is far from
over.

He said Colgate and Close Up usually occupy the best grocery shelves in supermarkets, making
their products more visible to customers.

Hapee, on the other hand, has to make do with a small spot in the supermarket.

Despite this, Pedro said he is not giving up, especially now that he has gone this far.

“And besides, I now have millions of customers because of my toothpaste. That’s something to
be happy about,” he added.

Corporate social responsibility

Corporate social responsibility is a very important part of Lamoiyan’s way of doing business.
Mr. Pedro says, “In Lamoiyan Corporation, we believe that we can make our presence a blessing
to society. These activities are focused on dental missions, helping the deaf community and
taking care of the environment.”

Lamoiyan’s corporate motto is “to make a difference for the glory of God”. Hence, in
thanksgiving to the Lord and in keeping with his faith as well, Mr. Pedro gives opportunities for
the hearing impaired by employing and providing them with free housing. Sign language is the
only means of communication between the hearing-impaired and hearing personnel, so he has
also required his managers to learn it. To continuously extend his gratitude, as the chairman of
the Deaf Evangelistic Alliance Foundation, Inc. (Deaf), he grants scholarships to at least 200
hearing-impaired students through the said foundation.

In 1991, Cecilio Pedro was the TOYM awardee for Business Leadership. The following year, he
bagged the Agora Award for Outstanding Achievement in Entrepreneurship.

Building a lasting legacy

Time is a variable for any kind of business. The test of the viability or feasibility of an enterprise
depends on generational creativity. Business survival or leaving a legacy from generation to
generation requires hard work and commitment. It means believing and living the vision of the
founder by his successors.

In Cecilio Pedro’s story, his actions and decisions as a founder/visionary were very apparent. He
wanted to leave a lasting legacy for the next generation to emulate. Values that go beyond profit.
Values that also embrace people and planet.

Creating a family business legacy is a challenge for owners of family businesses. The past and
the present stature of a family business will determine its future existence or demise. Much of
course depends on business and talent management and stable or liquid cash flow.

A recent Harvard Business Review article identified traps that can hamper generational success
and compromise the legacy building efforts of the founder generation. These traps include: the
mind-set that there is always a place for a family member in the business; that the business can’t
grow fast enough to support everyone; and that family members stay in silos according to
bloodline.

Proper training and skills are vital to generational success. It means that the visionary or the
senior family business owner can have wrong expectations as far as business succession planning
is concerned. It also does not follow that belonging to a family business entitles the children to
continue running the family business.

“Research shows that a family business beats the odds if they last for more than three
generations.”

There is even an Italian saying, “Dalle stalle alle stelle alle stalle,” which means, “From the
stables to the stars and back to the stables.” It is an indication that the challenge facing family
businesses is universal across our world and a never-ending process of governance, succession
and the family business mindset that the world is your oyster.

(sorianoasia@gmail.com)

**********

(Prof. Soriano is an Aseam family business advisor, executive director of the consulting group,
Wong+Bernstein Advisory and former chair of the Marketing Cluster of the Ateneo Graduate
School of Business. He is a National Agora Awardee and book author of the popular “Kite
Runner”, a book on family business governance and succession.)