A UAI Study on
De Leon, Jhoanna Andrea E.
Sy, Dana Iriza K.
Uy, Dana Clarisse
Mr. B. Encarnacion
April 6, 2010
Happee Toothpaste is manufactured by a Filipino company, Lamoiyan Corporation. Lamoiyan specializes in oral care products such as Happee and Kutitap toothpaste and house care products like Daze. The owner of Lamoiyan, Dr. Celio Kwok Pedro used to own a company called Dr. Pedro’s Aluminum Containers, Inc. This company stood as a major supplier of aluminum collapsible toothpaste tubes to companies like Colgate-Palmolive and Procter and Gamble. Although in 1985, these companies started using plastic laminated tubes causing Dr. Pedro to close down the factory. He eventually realized that the equipment in the factory can still be used if he makes his very own toothpaste brand. He was able to penetrate into the toothpaste market two years later as he reopened the factory and named it Lamoiyan Corporation.
Lamoiyan’s product Happee now have a variety of products that will cater to the consumer’s needs and tastes including – Happee Fresh Cool & White, Happee Explosive Menthol Red, Happee Fresh Green Outburst, Happee Outrageous Orange Blast, Happee Complete Plus Whitening, Happee Tweens Sachet, Happee Kiddie Toothgel, Happee Night Mint, Happee Extreme Clean. Every toothgels has maximum fluoride protection that will fight tooth decay, strengthens teeth and freshens breath.
There can be several pricing strategies that can help the company in improving its profits. Some of these include list price, competitive pricing, cost plus mark-up, close out, membership or trade discounting, and bundling and quantity discounts. Happee uses the strategy of competitive pricing in which, they use the competitors’ retail or wholesale prices as a benchmark in making their own prices. The prices they make can be below, above or the same as some brands depending on their positions in the market.For example, Happee and Beam have the same price which is 56.75 in their 150mL green toothgel toothpaste while Colgate’s price for the same size is 67.75 Php Table 1 – Different Brands and Prices of a 150ml Toothpaste
|Toothpaste Brand |Price | |Hapee Fresh Green Outburst |Php 56.75 | |Beam Sparkling Green |Php 56.75 | |Colgate Green Menthol |Php 67.75 | |Newtex |Php 27.25 | |Charmee |Php 21.75 | |Those Days |Php 13.25 | |Sisters |Php 23.25 | |My Best Friend |Php 15.75 |
Source: Robinson’s Place Manila
Lamoiyan distributes its products well by passing it on to agents (middlemen between manufacturers and wholesalers/distributors), wholesalers, distributors, retailers, or even directly to the consumers. The product then moves from the distributors and wholesalers to the retailers, which include groceries, drugstores, department stores, convenience stores and some sari-sari stores. These are very important steps to make sure that the all consumers will be in the reach of the product. In groceries, Happee is usually placed in the personal care section together with all the other products in the same category. Happee has several advertising methods that include magazine and newspaper prints, television and radio advertisements. It is currently being endorsed...
Please join StudyMode to read the full document