Marketing Proposal for a Fastfood Store

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					SME
A special publication for Plantersbank SME clients and friends                  Vol. 1 No. 2 2006




                                                                      Community
                                                                          Philippines




   INSIDE
   >> The Pick and Mix story
   >> Playing to WIN
   >> Franchising tips



                                                                 Islands Souvenirs
                                    YOUTHFUL IDEAL
                                       Jay Aldeguer
  You can get FREE PLDT BizDSL for up to 2 years. For more information call the
SME Proposition Hotline Tel. No. (02) 813-7082 or email pmmd@plantersbank.com.ph.
Contents

           SME	Community	Philippines:	                                       2        HOTLINE
                                                                                      News from Plantersbank

           shifting	to	second	gear
                 The first issue of SME Community Philippines
                 magazine was an unqualified and resounding
                                                                             5        COVER FEATURE
                                                                                      Youthful Ideal -
                                                                                      The Islands Souvenirs Story
                   success! Response from our readers was very


                                                                             9
                      positive and copies were snapped up as soon as
                        they became available. We were absolutely                     PRODUCTIVITY
                          right in identifying the need for this                      Sweat the small stuff
                             magazine, through which Plantersbank
                              seeks to reach out to small- and medium-


                                                                            10
                               scale entrepreneurs.
                                                                                      FRANCHISING
                                   So we set our sights higher to build               Good News! from the country's
                                 on this initial success. Our second                  franchise guru
                                 issue offers another interesting and


                                                                            12
                                  informative line-up of feature articles
                                  and stories, which we hope can                      SME FOCUS
                                  provide entrepreneurs with useful                   For all ages; for all times -
                                  business insights.                                  The Pick and Mix Story


                                                                            15
                                      Our cover story is inspiring.
                                  It traces the history of Islands
                                                                                      Four Spearheads of
                                 Souvenirs, a Cebu-based venture led                  Marketing Warfare
                                by Jay Aldeguer. His clear vision has


                                                                            16
                               propelled this simple idea into a brand
                              recognizable to most Filipinos. We                      MARKETING
                            think that he personifies the ideal young                 Generation marketing and
                           Filipino entrepreneur.                                     the youth as entrepreneurs

                          A candy store always has a compelling
                      appeal to children and adults with a sweet tooth.
                   With this in mind, the husband and wife team of
                                                                            18        TECHNOLOGY
                                                                                      Go Go Gadget!


                                                                            19
                Edison and Tina Mariano established Pick and Mix,
             the ultimate candy store chain. Get to know them!                        TIPS FOR
                                                                                      THE ENTREPRENEUR
        Featured writers include Herbie Sancianco, Adrian Miller, and


                                                                            20
Armando Bartolome. Their articles are complemented by our regular
Hotline news items, Tips for the Entrepreneur, and book review.                       BOOK REVIEW
                                                                                      MBA - Management by Auerbach
       Keep yourselves updated on SME news and information. Read
SME Community Philippines, then spread the word and push fervently
for SME advocacy!                                                           Editorial Board
                                                                            Publisher	           Planters Development Bank
                                                                            Editorial	Adviser	   Roberto F. Banaag
                                                                            Managing	Editors	    Dennis P. Liuag
                                                                                                 Olive B. Ramirez
                                                                            Editorial	Associate	 Gracie L. Rivera
                                                                            Contributing	Editor	 Meluchi A. Rivera
                                                                                                 Estelle C. Piencenaves
                                                                            Circulation	         Joy G. dela Cruz
                                                                            Photography	         Rick T. Lopez
                  Join SME Community Philippines                            Design	&	Layout	     Quatro Grafix, Inc.

                                                                            Get in touch with us at:
                  Log on to www.sme.com.ph                                  Corporate Communications Department
                                                                            12/F Plantersbank Bldg., 314 Sen. Gil Puyat Ave.,
                                                                            1200 Makati City, Philippines
                                                                            Tels: (632) 884-7600 (trunkline) • 884-7654 (direct)
                                                                            Email: corpcomm@plantersbank.com.ph
                                                                            Website: www.plantersbank.com.ph
Hotline

AFFI	holds	5th	Franchise	Show
   If this is an indicator of the state
of the home-grown franchise sector,
the success of the recent 5th Filipino
Franchise Show reveals that the
spirit of enterprise is alive and well
in the countr y.
   Plantersbank chairman and chief
executive of ficer Ambassador Jesus
P. Tambunting and Entrepreneurship
School of Asia president Vivienne Tan
were the guests of honor at the opening
of this year’s expo.
   Sponsored by the Association of
Filipino Franchisers Inc., the annual
event features the biggest and most               Movers and Shakers. Plantersbank chairman and chief executive officer Ambassador Jesus P.
                                                  Tambunting (3rd from left) and Entrepreneurship School of Asia president Vivienne Tan (4th from left)
promising Philippine-based brands in
                                                  and Philexport president Sergio Luis Ortiz (right) were guests of honor at the 5th Filipino Franchise
food, retail and ser vice franchising.            Show. On hand at the opening ceremony are Association of Filipino Franchisers Inc. president Ricardo
                                                  Cuna (left) and PRO Rommel Juan (2nd from left).




Squids Ahoy! Ambassador Tambunting and Squidster franchisor
Imelda Teng (2nd from right) with Plantersbank account officers Melissa
Ang, Joy Jongco, Nova Gisalan and Renedette dela Cruz.




                                                                               Best Brew. Ambassador Jesus P. Tambunting joins Pacita ‘Chit’
                                                                               Juan, coffee industry advocate and entrepreneur, for a taste of
                                                                               Figaro’s premium coffee brewed from organically grown beans of
                                                                               the native barako variety.




                                                                             Dear Readers
                                                                             Plantersbank has updated its                  884-7600
Dagupan’s Very Own. Ambassador Jesus P. Tambunting (right) and
                                                                             Head Office telephone system.
AFFI officer Rommel T. Juan say hello to Plantersbank client
Kamela Crisologo-Seen of the famed Panaderia Antonio of
Dagupan. Ms. Seen’s family also owns the Plato Wraps franchise,
                                                                             You may now reach us through
                                                                             these numbers:
                                                                                                                           884-7800
which promotes “great meals in small packages”.


Hotline
                                                                                                Globe, Plantersbank
                                                                                                forge alliance
                                                                                                   Globe Telecom Inc. has tied up with
                                                                                                Plantersbank to become the newest telecom
                                                                                                partner of SME.com.ph, the country’s
                                                                                                virtual community for SMEs affiliated with
                                                                                                Plantersbank. The partnership aims to promote
                                                                                                reliable and quality connectivity services
                                                                                                through Globe Handyphone, Globelines and
                                                                                                Globe Broadband among the country’s small
                                                                                                and medium enterprises. Sealing the alliance are
                                                                                                (from left to right) SME.com.ph general manager
                                                                                                Adonis C. Yap, SME.com.ph president Roberto
                                                                                                A. Buhain, Globe Consumer Business head
                                                                                                Ferdinand M. dela Cruz and Globe Bizworks
                                                                                                head Maridol Ylanan.




Plantersbank supports
BSP coin recirculation
   banGko senTral nG PIlIPInas Governor
Amando M. Tetangco Jr. (center) was
the guest of honor during the recent
inauguration of Plantersbank Balibago
Branch in Angeles City. Governor Tetangco
joined Plantersbank chairman Ambassador
Jesus P. Tambunting and Plantersbank
president Maria Flordelis F. Aguenza in
awarding cash prizes in the form of savings
deposit accounts to the top winners of the
“Kahalagahan ng Barya” student art tilt
organized by Plantersbank to mark National
Savings Consciousness Week and support
the BSP coin recirculation program.




                                                                                                Binalot opens new store
                                                                                                   bInaloT FIesTa Foods, the company that has
                                                                                                tickled consumers’ palates with classic Filipino
                                                                                                meals prepared in the traditional banana leaf
                                                                                                wrap, opened its 26th branch in De la Rosa Street,
                                                                                                Legaspi Village in Makati City.
                                                                                                   Binalot’s meals served on top of steaming
                                                                                                rice with appetizing sidings of either atchara
                                                                                                or salted egg and fresh tomatoes have earned
                                                                                                a loyal following among office workers in the
                                                                                                Makati and Ortigas business districts. The
                                                                                                company plans to put up 14 new stores in
                                                                                                both areas.
                                                                                                   “Binalot is the only Filipino fast-food
                                                                                                restaurant which promotes Filipino humor,
                                                                                                values and culture,” Binalot president Rommel
                                                                                                T. Juan declared. “We want to be the option
Rommel T. Juan (second from left) and Rowena Mati (far left), Binalot Fiesta Foods              to other fast food restaurants that ser ve
president and director respectively, with Plantersbank officers Anna Nieto, Ricky Carag, Neil
                                                                                                traditional hamburgers.”
Manangan and Plantersbank Rada branch manager Deng Aguirre during the grand opening
of the De la Rosa store in the Makati Central Business District.
                                                                                                                                                
Hotline
More Opportunities for Cebu SME Sector
                                                                                                           cebu ProvInce remains one of the
                                                                                                       country’s bright spots for Small and Medium
                                                                                                       Enterprises (SMEs), taking into account the
                                                                                                       expanding business in SME-oriented loans
                                                                                                       and services in the province.
                                                                                                            “The SME sector is very robust and the
                                                                                                       demand for financing is high,” according to
                                                                                                       Plantersbank chairman Ambassador Jesus
Intricate. Highly-skilled hands                                                                        P. Tambunting, who was in Cebu from
employed in SME workshops turn out                                                                     August 9 to 11 to meet representatives of
top-of-the-line fashion accessories that                                                               the SME community and explore ways
are in demand throughout Europe and        Exquisite. Bon Ace Fashion Tools president Ramir
North America.                                                                                         to deepen collaboration between the
                                           Bongahoy demonstrates to Ambassador Tambunting and
                                           SME Community Philippines editor-in-chief Roberto F.        sector and the countr y’s largest private
                                           Banaag their method of turning out exquisite products for   development bank.
                                           the export market.
                                                                                                            “Our broad, diverse Cebu loan portfolio
                                                                                                       has doubled every year for the past four years
                                                                                                       and signifies strong SME per formance
                                                                                                       in this par t of the countr y,” Ambassador
                                                                                                       Tambunting disclosed           during      the
                                                                                                       cocktail reception at the Marco Polo
                                                                                                       Plaza Hotel in Cebu.
                                                                                                           “Plantersbank is optimistic about the
                                                                                                       prospects and       is focusing attention
                                           To Success! Entrepreneur Danny Lua, Ambassador
                                                                                                       to     satisfy the demand for financing
Exquisite. Mrs. Jen Siarot shows
Ambassador Tambunting a selection          Tambunting, FVP Tito Tirones and FVP Roberto F.             alternatives, business solutions          and
of products bound for high-end stores      Banaag toast to the success of Mandaue-based                customized services of the SME community
abroad. Plantersbank financing helped      Philippine Spring Water Resources, bottler of Nature
                                           Spring flavored water and one of the country’s most
                                                                                                       in the province,” he added.
in the expansion of Arden Classic.
                                           competitive mid-sized firms.                                    Ambassador Tambunting said rapid
                                     Top of Class.                                                     integration of the global economy should
                                     Plantersbank client                                               spur Filipino SMEs to embrace technology
                                     Nelson Yuvallos                                                   needed to improve competitiveness and the
                                     (center) of Nicy
                                     Export Inc. explains                                              ability to respond to changes in the market.
                                     to Ambassador                                                         “The internet is a great equalizer and a
                                     Tambunting the                                                    source of wealth opportunities,” Ambassador
                                     process involved
                                     in preparing quality                                              Tambunting noted. To steer the sector in
                                     furniture for export                                              this direction, Plantersbank established
                                     market.                                                           SME.com.ph, the internet community
                                                                                                       and portal set up with the World Bank’s
                                                                                                       International Finance Corporation to provide
                                                                                                       e-ser vices marketing communications and
                                                                                                       business solutions for Filipino SMEs.


                                                                                                                                These lamps by Bon
                                                                                                                                Ace Fashion Tools
                                                                                                                                are a highlight of
                                                                                                                                design and Cebuano
                                                               Trendy. Ambassador Tambunting                                    craftsmanship
                                                               and FVP Tito Tirones learn about
                                                               the latest trends in the Cebu fashion
                                                               jewelry sector from entrepreneur-
Department of Trade and Industry - Cebu provincial director    designer Butch Carungay of Avatar
Nelia Navarro (right) with Ambassador Tambunting and           Accessories.
FVP Tito Tirones.



YOUTHFUL IDEAL
   The Islands Souvenirs story
                              By MELUCHI A. RIVERA

   Jay Aldeguer, founder of Islands Souvenirs
   says, “The vision was clear, the demand
   was evident and I was just determined to
   realize a simple idea.”

                                                     
    J
           ay Aldeguer embodies the ideal young Filipino
           entrepreneur: his business decisions are guided
           not only by the potential for profit, but also by
    love for his native Cebu.                                         It was time
       Relentless. It is a word that comes up often when
    talking to Jonathan Jay Aldeguer, the youthful founder          to give the
    of the Islands Souvenirs.
       Jay uses it to highlight his own blissful ignorance of       souvenir store
    any potential problems when he decided to put up a T-
    shirt venture in 1992. He also uses it when he speaks of        a hip and
    the energy that drove him to turn that small business
    into what it is today, a highly successful chain of stores      exciting look
    offering a diverse line of souvenir items.
         “I felt ver y strongly about the demand for good
    quality souvenirs and had a good and strong concept
    in mind, which was tropical inspired,” he recounts.
    “Coming out of college with some moderate success
    in small business ventures, I was ver y confident and
    relentless.”
       The word crops up again when describing
    entrepreneurs. Entrepreneurs, he says come up with
    the most unorthodox ways of making money. Some
    will set aside their formal studies to seek their fortunes
    and education in the real world. Entrepreneurs can
    also be some of the most stubborn people. “They are
    not easily fazed,” Jay points out. “An entrepreneur will
    pursue an idea despite the most intimidating obstacles,
    even risking disapproval of family and friends.”

              Early Starter                                      name players of the Philippine Basketball
                  Jay was already a veteran of many a            Association (PBA) to Cebu for a friendly
              money-making venture well before he                game with the Cebu All-Stars in the late
              earned his Interdisciplinar y Studies degree       1980’s. Jay, a college student, had hit
              in Communications and Management.                  upon this bright idea and would not be
              His first business transaction involved            deterred by his lack of contacts. And so,
              the sale of his drawings when he was in            armed with a one-page proposal and lots
              fifth grade. It was a real eye-opener to           of chutzpah, he knocked on the door of
              the budding businessman. “I realized               Purefoods ace guard Jojo Lastimosa and
              that I could create something of value to          introduced himself. Lastimosa was quite
                    someone else,” he recounts.                  impressed by the young man’s spunk and
                             Another           memorable         agreed to help contact the other teams
                                  venture         involved       and players for this event.
                                           bringing the             The exhibition game was a smashing
                                                   b i g -       success. “It probably still holds the
                                                                 record for audience attendance at the
                                                                 Cebu Coliseum,” Jay proudly reveals.
                                                                         It then comes as no surprise that
                                                                                    when Jay hit on the
                                                                                                concept





                                              Souvenirs lies in the vibrant presentation      delicacies and souvenirs and combine
                                              of the items and an appealing brand.            these into a rich souvenir shopping
                                              The chain’s array of shirts, flip-flops,        experience,” Jay reveals. “We hope to
                                              hats, jewelr y, key chains and other items      replicate this concept in as many Islands
                                              convey festive, sun-splashed themes that        Souvenirs destinations in the countr y.”
                                              are unique to the islands.                         Jay is proud of his latest tourism-
                                                  So successful is this concept that his      oriented venture called CeBU! TV
                                              stores have set the bar for others retailers    a 24-hour cable channel featuring
                                              in the fast-growing souvenir sector.            programs focused on Cebu, its
                                              Islands Souvenirs are present in most           wonders, culture and people. This
                                              major tourist destinations in the countr y      under taking consumes most of his
                                              such as Boracay, Subic, Cebu and Bohol.         time these days and as it highlights
                                                  Jay describes his management style          the beauty of his hometown and its
                                              as decentralized. He has fully delegated        people, is closest to his hear t.
                                              aspects of Islands Souvenirs’ production,          Explains        this        relentless
                                              design and merchandising to professional        entrepreneur: “My vision for these
                                              managers. “I believe that other people          ventures is to encourage travel,
                                              often make better decisions than I ever         to promote love of the island and
                                              could with the matters that I entrust to        countr y, and to help the Philippines
                                              them,” he explains.                             promote itself as a tourist destination.
                                                  He has to some extent even delegated        Tourism, after all, is an industr y
                                              the expansion of the Island Souvenirs           that we can tr uly still own in this
                                              brand to external partners. The company’s       globalized environment.”
                                              franchise program has scored successes
                                              since its roll out in 2003. “Because of
                                              improvements in transportation and
                                              communications, Filipinos are better able
                                                                                              Souvenirs from our chat
                                              to appreciate the potential of tourism,”
                                              Jay emphasizes. “Local government units
                                                                                                with Jay Aldeguer
for Islands Souvenirs, he lost no time in     and businessmen recognize the revenues
                                                                                              •	 Set a clear vision and culture for your
pursuing the opportunity. “The vision was     tourism brings. Today, ever ybody wants a
                                                                                                 company.	This	eases	the	delegation	
clear and the demand was evident,” he         stake in tourism.”
                                                                                                 of	 tasks	 by	 serving	 as	 a	 guide	 to	
explains. “I was really determined to see         Jay admits that while he has also taken
                                                                                                 decisions	regarding	all	aspects	of	the	
this simple idea through.”                    in foreign franchisees, he is not out to
                                                                                                 business.
                                              conquer the entire world. He prefers
Eureka Moment                                 to concentrate the presence of Islands
                                                                                              •	 Be wise when you franchise.	 Jay	
   Indeed, the best ideas are the simplest    Souvenirs within specific destinations,
                                                                                                 admits	 that	 his	 first	 experience	 with	
ones. Jay was fresh from a trip to Europe     rather than open stores in as many
                                                                                                 international	 franchising	 was	 not	
and had brought home a slew of souvenir       countries as possible.
                                                                                                 successful.	 “It	 came	 about	 because	
T-shirts among other items. His eureka            “My approach is to nurture the brand
                                                                                                 the	would-be	partner	was	persistent,	
moment came on a subsequent trip              within a specific travel destination and grow
                                                                                                 not	because	we	were	ready.	Looking	
to Baguio, where he realized the only         with that market,” he explains. “Macau,
                                                                                                 back,	we	didn’t	have	the	capabilities	
available souvenir T-shirts still sported     for instance, has huge business potential.
                                                                                                 in	 place	 yet,	 and	 we	 didn’t	 have	 a	
the same designs from a decade back.          It’s being positioned as the Las Vegas of
                                                                                                 contract	 that	 protected	 us	 from	 the	
   “Baguio was the top tourist destination    Asia. We’d like to focus on a key city like
                                                                                                 pitfalls	 of	 franchising.	 Six	 months	
in the Philippines, yet it did not have       Macau rather than aggressively move into
                                                                                                 later,	we	dissolved	the	partnership.”
a decent souvenir shirt to offer,” Jay        other international destinations.”
recounts, shaking his head.                                                                   •	 Crazy ideas CAN work.	Jay	notes	that	
   That was the ‘light bulb’ moment           Idea Factory                                       most	 business	 ideas	 sound	 crazy	 at	
that inspired him to look deeper into            Four teen years and many citations              first,	and	will	probably	be	discouraged	
the business. “The Philippines already        after launching Islands Souvenirs, Jay             by	friends	and	relatives.	“Entrepreneurs	
produces great handcrafted souvenirs          is still chur ning out ideas and looking           are	 often	 deviants,	 they	 think	 just	 a	
and curios,” he says. “I sensed a greater     at ways not only to make money but to              little	 bit	 differently	 from	 everybody	
potential for practical souvenirs.”           promote his native Cebu.                           else,	which	is	often	what	makes	them	
   Jay also felt the souvenir industr y          By capitalizing on the success                  successful.”
needed to boost its image. “The souvenir      of his souvenir store chain, Jay is
industr y has always been perceived as a      experimenting with one-stop shop                •	 Promote       local      partnerships.	
cottage-type business,” he notes. Whether     centers,     essentially   strip    malls          Islands	 Souvenirs	 makes	 a	 point	
in the Philippines or the world’s most        specializing in souvenir items, with the           of	 partnering	 with	 local	 suppliers	
cosmopolitan destinations, the souvenir       Islands Souvenirs outlet as the anchor             when	 possible.	 “We	 encourage	 co-
business is seen as kitsch. It was time, he   store. These Pasalubong Centers                    branding	arrangements	for	distinctive	
said, to give the souvenir store a hip and    have outlets selling chicharon, dried              regional	 products.	 That	 way	 we	
exciting look. This last insight was the      mangos, dried fish, guitars and other              can	 also	 “localize”	 our	 stores	 and	
key that unlocked the door to business        items produced in Cebu.                            highlight	items	that	are	unique	to	that	
success.                                         “The idea is to enhance tourism-                destination.”
   The commercial appeal of Islands           related     specialties    like    native

                                                                                                                                           

                                       Sales professionals who can proudly point to a handful of high profile “top rung” clients


sweat the
                                   may feel that they’ve reached the Promised Land, yet this is not always the case. No, wait;
                                   let’s put this more directly.

                                      Sales professionals who exclusively cater to and cultivate their top rung clients are playing

small stuff                        a dangerous game with potentially unacceptable consequences.

                                      Here’s why: while most sales professionals effectively cultivate their top rung clients, they
                                   assume that they’ve thoroughly worked their lower rung -- and even lowest rung -- clients.
                                   This is often an error!

                                      Many smaller clients aren’t as small as they appear; they’re merely small in terms of the
       By ADRIAN MILLER            volume of business that they’re doing with a particular sales professional (such as you).
                                   There’s every rational reason to expect that smaller clients are in fact doing business with
                                   other sales professionals (such as your competition).

  There’s every                       And the consequences?

rational reason to                    Well, besides the obvious loss of business that’s on the table, there’s the very serious
                                   problem that one of your smaller clients is doing business with your competition…which
expect that smaller                means that your competition – and not you! – may be more aggressive in their sales technique
                                   and ultimately win all of the business.
clients are in fact
                                      Or, even if your competition is passive, your smaller client may decide – unilaterally and
doing business                     without notice – to consolidate their vendors. If you’re a smaller piece of the pie, expect to be
                                   on the outside of the inner circle.
with other sales
professionals (such as                Regardless of how this plays out, the result here is that you don’t merely lose your small
                                   client; you waste a prime opportunity to do more business with an existing client. You’ve
your competition).                 heard of win-win situations? This is lose-lose.

                                      Here’s how to avoid this from happening in the first place (which is always the most
                                   efficient strategy):

                                      u screen and qualify your lower rung clients; discover additional sales potential

                                      u produce business collateral such as newsletters, white papers, and brochures
                                        -- and target your lower rung clients (don’t do a “one size fits all” document!)

                                      u investigate why your smaller clients may be doing business with other sales
                                       professionals; there may be no strategic reason for this (in which case the
                                       situation is perfect for your consolidated, cost effective, quality assured, and risk
                                       reduced solution).

                                      Once you implement any (or sometimes all) of the above solutions, you’ll find yourself in a
                                   very pleasant place. Instead of lose-lose, you’ll be in a can’t lose position. Why?

                                      If you find additional sales opportunities, you increase your revenue, and reduce your risk
                                   of being outpaced by a competitor.

Are you effectively working your      Alternatively, if you don’t find any additional sales opportunities, then you can stop
lower rung clients?                assuming and start knowing this – and confidently implement a touch point program designed
                                   for your lower rung clients.




                                   Based in New York, Adrian Miller is the president of Adrian Miller Direct Marketing,
                                   a sales training and consulting company that provides customized, results-driven
                                   training programs to companies worldwide. AMDM’s programs focus on the techniques
                                   and skills needed for building new business and retaining existing business, resulting
                                   in increased ‘ROA’ (Return on attention). She can be reached at amiller@adrianmiller.
                                   com.




                                                                                                                                  
Franchising




   GOOD NEWS 1. More businesses in the country are expanding                    GOOD NEWS 6. The buzz word in franchising nowadays is
through Franchising. In the early 80’s these were just a handful. While     Responsible Franchising. Franchise Associations and franchise seminars
these include both foreign and home grown businesses, the number of         all promote Responsible Franchising. This is a way the proponents of
local companies has substantially increased through the years and these     franchising can block if not completely eliminate “pseudo franchisors”
outnumber foreign franchise systems.                                        from the market. Responsible Franchisors are committed to the success
                                                                            of their franchisees in contrast to pseudo franchisors that are out to just
    GOOD NEWS 2. Home grown companies have recognized the                   collect the franchise fees. Authentic franchisors are fully aware of the
many advantages of expansion through franchising over internal growth       responsibilities they take when they franchise their business. They are
and company-owned branches. More than just growing nationwide, a            ready to provide professional support and technical assistance to their
number of home grown companies have taken bold steps into the global        franchisees. This movement for Responsible Franchising has generated
arena. The stream of Filipino Franchisors staking the Philippine flag in    success since franchise applicants are now educated on franchising and
countries like Middle East, Asia, Europe and North America continues to     can ask relevant and important questions even at the application phase.
grow. To witness home grown franchisors open their branches globally        Responsible franchising is the only way for franchising growth to be
is indeed a treasured moment and makes one proud to be a Filipino. Yes,     sustained and can go to higher levels.
we can! The international potential is vast and is there for the taking.
                                                                               GOOD NEWS 7. Franchising creates business synergy. Franchising
   GOOD NEWS 3. Years ago, Franchising was primarily perceived              pools together people from different experiences and business
as a food business. Franchising in the service sector is fast emerging.     background. The colorful interplay of these differences brings about
Now, one sees the proliferation of hair salons, beauty bars, spas, pre-     betterment and growth of the franchise system. Several of McDonald’s
schools and courier services. This has widened the scope of franchising     products like the Big Mac were the idea of a franchisee. McSpaghetti
by broad strokes and has enabled more franchisors and franchisees to        and Burger McDo was the idea of the Philippine Master Franchisee.
experience growth and expansion.                                            These are just a few results of the business synergy created in a franchise
                                                                            system. While the Franchisor starts with a proven business system,
   GOOD NEWS 4. Franchising has also offered a better alternative           franchising continually improves the system thus making it relevant
to our modern day heroes – our Overseas Filipino Workers. Years             to changing market environments and capable of growth despite its
ago, a kabayan would dream of getting into business such as tricycles,      distance from the Franchisor.
a sari-sari store or buy and sell. Nowadays we see them becoming
franchisees. They have grown tired of enjoying the sweet life for a few        GOOD NEWS 8. Franchising is here to grow and will last. With the
months then living like paupers while waiting for their new overseas        business synergy it has created in the economy and the many benefits it
contracts. Franchising has provided them a route to invest hard earned      has brought not only to Franchisors but more so to countless franchisees,
money in proven business systems with the guidance of a big brother         franchising will always be a route to expansion entrepreneurs will take.
– the Franchisor. We have seen how their life has changed by adding         But I think more that all these benefits, it is the personal relationship
their signature to a Franchise Agreement. Besides, by contributing to       established. Franchising strengthens these relationships among people
the Philippine Economy, they know in their hearts that their future is      involved. Very much like a marriage, it is not void of problems and
secure.                                                                     difficulties but facing them and using them to move forward, has made
                                                                            franchise systems grow from one or two branches on to hundreds and
    GOOD NEWS 5. More family businesses are turning to franchising          even thousands internationally.
to expand. Franchising has forced entrepreneurs to hire professional
managers and standardize their operations. These are issues they               GOOD NEWS 9. Franchise Investments are now affordable.
have to face if they want to successfully franchise their business. With    Present franchise investment levels are much lower now than the early
franchisees now involved, the usual quirks of family businesses will have   years when investments were in the million brackets. From a study
to be unlearned. For family businesses that have taken the bold decision    we conducted in GMB Franchise Developers, 60 percent of franchise
to franchise, we can only admire the success levels they have achieved.     investments fall below the P1-million mark. This, however, does not




10
                                                                                  Choose Your Partners
                                                                                     If you will need partners, make sure you are on the same page
                                                                                  when it comes to business. Friendships and even families break up
                                                                                  due to business. Communication among and between partners are
                                                                                  extremely necessary. There is no short cut to this. Clarify and put to
                                                                                  writing agreements. Be very clear as to who will communicate with the
                                                                                  Franchisor. Normally, Franchisors will want to relate to only one person
                                                                                  who will represent all the partners.

                                                                                  Study your location.
                                                                                     Take time to know the local culture and buying habits of the population.
                                                                                  Franchisors franchise their business with one basic assumption; the
                                                                                  Franchisee knows the local market and will undertake local networking
                                                                                  and marketing of products and services. Be able to convince yourself
mean these franchises are not credible investments. They are affordable           that indeed there is a market for the franchise concept in your proposed
to more individuals willing to become franchisees. Regardless of                  location and be able to identify where the market will come from.
investment required, here are steps to ensure you choose a responsible
and credible franchisor.                                                          Study The Franchise Agreement.
                                                                                     In the United States, part of the Franchise Regulation is to allow a
“IFBI” - Investigate First Before Investing                                       franchise applicant to study the agreement for no less than 10 days. A
    One needs to understand how franchising works. There are several              Franchisor cannot call the applicant within this period. The rationale
alternatives. Look for franchise materials and read them. One can attend          of this Regulation is to give applicants uninterrupted time for review.
franchise seminars which are usually published ahead of time in the               Even if the Franchise Agreement is voluminous, take time to read each
major dailies; or for a modest investment of P400, get hold of a copy of          section and put notes on sections that are not clear. Only after you have
“Learn Franchising”. It is in DVD format and can be played and repeated           read all the pages will you seek Legal counsel to explain sections which
right at one’s convenience. The first of its kind in the country, the “Learn      you have noted. The Franchise Agreement is a vital document which
Franchising” DVD is available in all True Value Shops. This was recently          will be the basis of your relationship with the Franchisor.
launched by this writer as a way of helping those who want to know
about franchising.                                                                    Investing in a Franchise or becoming a Franchisor is indeed not easy
    People looking for a franchise business often wonder where to get             but the engaging and difficult processes make its goal more endearing
a directory. There is in DVD entitled “Franchise Listings”. It is also            to the beholders.
available in outlets of True Value. It is a compilation of the latest franchise
businesses. This DVD will enable you to search for a franchise concept               Watch for more in my next column!
instead of calling each franchisor’s office one by one.
                                                                                  Acknowledged as the country’s franchise
Get to Know and Believe in the Franchise Concept.                                 guru, Armando O. Bartolome is the president
   Successful franchisees are convinced about the products and services           of GMB Franchise Developers, Inc. He can
and they are positive about its potentials. There is no point in getting a        be reached by e-mail franchiseconsultants@
coffee shop franchise if you do not drink coffee at all, nor getting a skin       gmail.com or telephone (63 2) 532-8386 or
care franchise is not for you if you really don’t care about how you look.        at www.gmbfranservice.biz. Mr. Bartolome
Franchisees exude the same commitment to the franchise concept as                 has more than 28 years of field experience in
the franchisor. Visit the shops and ask yourself the question, will I be          franchising and marketing and is a member of
happy managing this shop and will I want to talk to customers about our           the SME.com.ph panel of business experts.
products and services?

Meet the franchisor.
   Since franchising is a personal relationship, have a meeting with the
Franchisor. Ask yourself the question, can I work with the Franchisor
for five (5) years or for the duration of the Franchise Agreement? Match
your personality with the Franchisor since not all personalities can work
together.

Obtain Family Support and Feedback.
   Make sure you involve your family members in the decision making
process. Be open and have a dialogue as there may be pros and cons.
Listen and be open. After all, the reason one invests in a franchise
business is for the future of the family.

Be Clear About the Investment Package and The Location
Requirements.
                                                                                   Learn the basic tools
   Ask all the questions on the Investment Package. Clarify coverage of
fees and extent of the build out investments. Check who will construct             of franchising at your
and who the accredited suppliers are. Find out when the payments are
due. Check if the Investment Package is all you need to enable you to
open your franchised branch. Be sensitive to some hidden costs.
                                                                                   own convenience
                                                                                   GMB FRANCHISE DEVELOPERS INC. recently launched two DVDs,
                                                                                   “Learn Franchising” and “Franchise Listings”.
Speak With Existing Franchisees.                                                   The DVDs are based on the extensive experience of Armando
    Assess how the franchisees feel about the franchise. The Franchisor            Bartolome, president of GMB Franchise Developers, as a business
is not in the business of popularity. There will always be problems in any         consultant and resource speaker in franchising seminars in the
franchise system. A vibrant and growing franchise system will have its             Philippines as well as the Middle East, North America and Asia.
share of unhappy franchisees. It is up to the individual wanting to get            “We hope to gain a wider hearing among those interested to get
                                                                                   into business that have better chances for success using franchise
a franchise to discern and make the final decision to pursue. What is              models,” according to Mr. Bartolome, who has established a
important is the validation of these concerns versus the over all growth           reputation as the country’s Franchising Guru.
pattern of the franchise system.                                                   For more information on the DVDs call GMB Franchise Developers
                                                                                   at (02) 532-8386 or email advisor@gmbfranservice.biz.

                                                                                                                                                         11
For all ages…
for all times…
              The
     Pick and Mix
            story
         By JEMILEEN U. NUQUI-RUIz




1
B
        anking on the Filipinos’ sweeth tooth,    Filipino consumers are ready for something
        husband and wife team Edison and          new and the time was right to reintroduce
        Tina Mariano went with their gut feel     the concept.”
and introduced the first “pick and mix” candy         It didn’t take long until the first Pick &
store in the country.                             Mix store opened for business in SM City
    That was in 1996. Today, the couple behind    North Edsa. The new concept was an instant
Pick and Mix has successfully established         hit with mall goers, who stocked up on candy
a regional network in Luzon and Visayas           to their hearts’ delight. “Business was so
consisting 51 candy stores—including 17           brisk we were clean out of candy by day’s
franchises and 10 consignor outlets in SM         end,” according to Edison.
Malls and Supermarkets.                               Filipinos took to the idea of choosing and
    “We started as a home-based company           combining their favorite sweets. The array
on only P50,000,” Tina recalls. “Edison and       of sweets was overwhelming, especially
I literally ran the show with a staff of two to   first-time buyers. The store offered a host of
mind the store.”                                  rainbow-colored gummy bears, mints, jelly
    The route to success for the Marianos         beans, hard and soft candy, chocolate and a
was hardly a leisurely stroll in the park. They   host of other confectionery.
barely made even when their first outlet              The variety of candies and sweets are
opened in Metropolis Alabang in February          sourced from all over the world. Germany
1996. The idea of customers selecting,            produces the best gummy candies in
mixing and purchasing candy by the gram           the market, according to Edison, whose
was uncomfortably new to the public.              company assignment is to scout far and wide
    Despite this setback, the Marianos            for the best confections available. He said
remained steadfast in their belief that the       the Philippine candy industry still has some
business would experience a turn around. It       considerable investment to make before it
just took a little more time before naturally     can catch up.
inquisitive Filipino consumers overcame the           While European sweets are definitely             We’re very particular
initial shyness for the novelty concept.          among the finest in quality, a volatile currency

The Right Moment
                                                  exchange rate can easily spell doom for any
                                                  business that is unable to manage risks.
                                                                                                     with the taste. It has
   “When we started in 1996, Filipino
consumers were just beginning to imbibe
                                                  For this reason, Pick & Mix stocks up from
                                                  local confectioners and candy makers in the
                                                                                                     to be something
international cuisine, fashion and shopping
practices,” explains Tina. “We sensed it was
                                                  United States, Turkey, China and Thailand.
                                                                                                     marketable,
time to open a new kind of store.”                In Candy Heaven
   And how right they were! Word quickly             From an initial 24 varieties, Pick & Mix        something that will be
spread and the new candy store drew               now carries 36 different kinds of candy, nuts
customers like bees to honey. Sales at the
Metropolis store started picking up when
                                                  and chocolate and is expanding its product
                                                  line to include candy toys, candy bubbles,
                                                                                                     easily accepted by
SM, the country’s largest retailer and mall
operator invited the Marianos to introduce
                                                  candy jewelry and candy bouquets. Pick
                                                  & Mix also offers party packages featuring         our customers.
their concept to management.                      candy carts, cotton candy and chocolate
   “We faced a panel of SM senior executives      fountains and appearances by the company
and Harley Sy told us that a similar concept      mascot Gummy Bear. The lovable mascot              All in the Family
had been tried and failed only a few years        which debuted in 2001 is a regular fixture at          Their instinct to set up Pick & Mix paid
before,” Tina remembers. “Edison and I            Pick & Mix store openings, promo activities        off. Eventually, they opted to let go of the
were really determined and we said the            and company events.                                printing press and the trading company and
                                                     “The concept behind Pick & Mix candy            concentrate their energies in building Pick &
                                                  stores is nothing new,” says Edison. The           Mix into the country’s fastest growing candy
                                                  couple stumbled upon the theme in 1995             store chain.
                                                  during a vacation to the United States with            The Marianos never expected their
                                                  the kids. Every time they were in a mall,          candy store concept to enjoy widespread
                                                  Nico and EJ, who were two and three year           popularity. Tina said when they started they
                                                  olds at the time, would race to the candy          would be happy if they had two stores. Now,
                                                  store and load up their goody bags with all        the Mariano family which added three kids
                                                  kinds of sweets.                                   is very much into the business.
                                                     “We saw how happy it made them,” Tina               The couple shares the responsibility of
                                                  recalls fondly. “The candy store was like          managing Pick and Mix. Edison oversees
                                                  heaven for the kids.” She and Edison realized      product sourcing, supply and store facilities
                                                  they wanted Filipinos to experience the same       management, while Tina handles day-to-day
                                                  excitement and delight that their kids shared      operations and finance.
                                                  on those trips to the candy store.                     And with the kids exposed to the business
                                                     They decided it was a terrific business         at an early age the two eldest kids—whose
                                                  idea but discovered the foreign franchise          sweet tooth inspired the Pick & Mix idea—
                                                  fee was prohibitive. Unfazed, the Marianos         are already helping out. Nico their eldest,
                                                  decided to put up their own company.               works in the office during school breaks
                                                     Having spent some years as employees,           while 14-year old EJ lends his computer
                                                  Edison and Tina always dreamed of going into       skills to designing sales presentations for his
                                                  business for themselves. They were already         parents.
                                                  managing two at the time—the printing                  Not to be outdone, the three younger
                                                  press inherited from Tina’s family and their       siblings—JR, Angelic and Eric do their
                                                  trading company, supplying garments for the        share with the pleasant chore of company
                                                  SM department stores—when they fell in             taste testers. Whenever Edison and Tina
                                                  love with the idea of a “pick and mix” candy       discover new sweets and flavors they want to
                                                  store. It didn’t take too long for them to take    introduce, they always make it a point to ask
                                                  on one more.                                       their children’s opinions.

                                                                                                                                                1
   Everyone in the company is involved in choosing the new product                  The couple had reached a crossroads. They could either choose to
line. Once the children make their choices, the employees are asked             grow at a slower organic pace, or take advantage of their early lead and
to evaluate the new candies and sweets. It’s more than just flavor, other       tap new markets through franchise operations.
things to consider about candy are appearance, texture, aroma, color                After consulting with franchise expert Armando Bartolome, the
and consistency.                                                                Marianos realized the risks far out weighted the business opportunities.
   Tina and Edison also make it their point to taste what they sell.            The couple was on their way to a new phase in their business. They set
“We’re very particular with taste,” Edison points out. “The candy has           the process in motion by securing a franchise development loan from
to be marketable and acceptable to Filipino customers.”                         the state-run Small Business Corporation. “That was our first loan
                                                                                and we’re very pleased with the assistance from the SBCorp,” Tina
Candy Connoisseurs                                                              recalls.
    Having been in the business for a decade, Edison and Tina are now               “If you have the systems of your franchise
candy connoisseurs. “Some varieties and flavors simply won’t catch              model already in place, you shouldn’t have
on in the Philippine market,” Edison observes. For this reason, the             to worry too much,” Edison says. “All
company tests out the new varieties in small amounts at their outlets           you need to do is ensure the quality
before introducing the product full-scale.                                      standards are strictly maintained.”
    He explained that shelf life and storage are factors a candy seller             Having perfected the craft of
has to consider when stocking up. “Proper storage, temperature                  franchising, Pick & Mix was recently
control and handling are crucial in the candy business,” says Edison.           elevated to the Entrepreneur
“A product like chocolate can be a tricky item to handle.”                      Philippines 2006 Top 29 Franchise
    Tina pointed out that Filipinos love sweets, but they are not the           and cited for Best Franchising
adventurous types when it comes to desserts. “Filipinos tend to stick           Support for providing superb
with what’s familiar,” she remarks. “Part of our work is to educate the         assistance in training, marketing,
customers about the different confectionery in the market.”                     pre-opening and operations to
    Now that they’re 10 years into the business, Edison and Tina                franchisees.
continue to find innovative ways to offer customers novel experiences               “We consider our franchisees
with each visit to their stores. The couple is now looking into an all-in-      as partners in business that
one gift shop to complement the Pick & Mix concept.                             is why support is very
    As part of its expansion program, the company recently put up               important in building
its website www.pickandmix.com.ph with the help of Plantersbank’s               the foundation of our
affiliate SME.com.ph.                                                           franchise        system
    The couple hopes the website will become a powerful marketing               which will help us
tool for their business—tapping new markets through e-commerce                  expand our market
and providing a 24-hour point of contact for prospective franchisees.           faster,” Edison adds.
    The company is expected to introduce the Pick & Mix stores to more              Looking back on
provincial sites. Edison and Tina have their eyes open for franchising          this experience, Tina
prospects in Dagupan, Cabanatuan, Legaspi, Iloilo, Cebu, Davao and              realized that you can
other key cities, where the concept is still a novelty. “Our ultimate           look at money being
dream is to set up branches overseas,” according to Tina.                       spent as an expense or an
                                                                                investment for the future.
Determined to Grow                                                              “We want to give our patrons
   Although Pick & Mix is growing as a result of their franchising              their money’s worth and at the
strategy, it took some time before the Marianos warmed up to the                same time, we want to make
idea. “At first we didn’t entertain the thought,” Tina says. “But we            the business grow to provide
were even then receiving many inquiries from people who liked the               for our employees and contribute
concept of our stores it just came to a point that I felt I was being selfish   to uplift our society in the best we
not wanting to share our success.”                                              can,” she says.
   At first, Tina admits she was hesitant to “let go” and franchise the             Armed with determination,
business. “I was afraid that if something unfortunate happens in one of         creativity and faith in their
the franchises, the reputation that we built for the company would be           concept, Edison and Tina
destroyed overnight” Tina admits.                                               Mariano are bound to
                                                                                turn all their dreams
                                                                                and aspirations into
  For more inquiries,                                                           sweet reality. And for
  log on to www.pickandmix.com.ph,                                              those who believe in
  e-mail candymix_96@yahoo.com or
  call (632) 643-3490, 0917-8999774.
                                                                                their endeavors, success
                                                                                is inevitable.
1
                                        “Know the enemy, know yourself; your        of Moonbake, Inc. obser ves. “There really
                                     victor y will never be endangered. Know        is a market outside the countr y.” Social
                                     the ground, know the weather; your victor y    development workers turned entrepreneurs
                                     will then be total,” wrote Sun Tzu in The      the Manriques have reaped success by
                                     Art of War, the ancient Chinese treatise on    tapping the power of Filipino consumers
                                     leadership and strategy.                       overseas. Their canning operation has
                                        Not a book to be limited to the war         made the Moondish brand of the Bicol

Four                                 rooms of army generals The Art of War
                                     has been published in many languages and
                                     seen numerous print editions. There are
                                                                                    region’s culinar y delights a household
                                                                                    name among Filipinos in Guam, the Gulf
                                                                                    States, Canada and the United States.


Spearheads
                                     even comic book and animated series of
                                     Sun Tzu’s masterful work. The Art of War          Know your competitors. To be
                                     is highly recommended reading for both         successful in marketing warfare, SMEs
                                     budding and seasoned entrepreneurs.            must become competitor-oriented.          In

of                                      It is in the spirit of Sun Tzu that SME
                                     Community Philippines draws on the
                                     insights of the countr y’s successful SME
                                                                                    markets already crowded by giants, SMEs
                                                                                    must attack points and niches where
                                                                                    competition is weak.


Marketing
                                     generals and shares with our readers the          “Our company loves competition
                                     secrets to achieving marketing victor y.       because it makes for better products and
                                                                                    smarter consumers, but we don’t compete
                                         Know your product. A good grasp            in ways that go against who we are,”

Warfare                              of the technical aspects of the product is
                                     important. Clarissa Cavero banked on her
                                     food technology background to convince
                                                                                    according to Laura Verallo de Bertotto of
                                                                                    cosmesceutical firm VMV Hypoallergenics.
                                                                                    Her company has tapped the resources of
By SME Community Philippines Staff   international buyers and purchasing            the web to secure a comfortable position
                                     managers of fast food companies to stock       in the market. “We’re not about to tr y to
                                     up on the sauces and condiments produced       compete with Avon, we’re not into direct
                                     by her company Guaranfood Manufacturing        selling,” she explains. “Our products need
                                     Corporation, maker of Lola Panyang line.       to provide a real, provable skin benefit.
                                     “I did a lot of walk-in presentations for      This kind of commitment to evidence-
                                     prospects,” she says. “My background and       based products may mean we stay a niche
                                     experience helped a lot when negotiations      brand. But as consumers get smarter about
                                     touched on technical aspects and               their skin, and as we grow globally, that’s
                                     specifications of the products.”               a pretty big niche, and that’s a good place
                                         Stick close to your production people,     to be.”
                                     urges Dr. Justino R. Arboleda, CEO of             “We’ve taken a cautious view towards
                                     anti-erosion geo-textile producer Coco         the China market,” says Cebu-based
                                     Technologies Corporation. “You need to         furniture entrepreneur Rowena A. Cruse,
                                     keep in close touch with production. I make    who built her furniture company Superior
                                     it a point to spend two to three weekends      Export-Import Product, Inc. from a home-
                                     visiting our plants.”                          based business that supplied raw materials
                                         Hobbyist Flordz T. Perona transformed      to the industr y. While other furniture
                                     her love of craftwork into a multi-million     makers sought to go head-to-head with
                                     dollar earning business producing exquisite    China, Cruse believes other wise. Her
                                     holiday décor for high-end stores abroad.      approach is to outflank the competition.
                                     “My success comes from a love of the arts      “We are determined to seek untapped
                                     and crafts industr y,” declares the Creative   markets,” she says. The company has filled
                                     Director of Legacy Crafts Philippines Co.      orders of woven, organic themed furniture
                                     “Export is not for the weak of heart and       for high-end customers in South Africa,
                                     low in spirit.”                                France, Australia, Saudi Arabia and the
                                                                                    United States. “Buyers admire Philippine
                                        Know your market.             To provide    craftsmanship,” says daughter Gail Cruse,
                                     customers with value propositions you          an industrial engineer. “The kind of product
                                     have to how they think, how they work,         we turn out can’t be mass produced in an
                                     what their interests are. “An entrepreneur     automated factor y. It has to be done by
                                     has to be where the market is,” points out     skilled hands.”
                                     Patricia Colayco Lopa, general manager
                                     of Orange Juice clothing stores catering           Make sure your marketing strategy
                                     to the pre-teen market. “We realized just      fits the market.      Are you pricing
                                     how fast kids grow up, so you have to be       for the long haul or for shor t-term
                                     cultivating clients by getting in touch with   gains? Are you launching a product to
                                     their younger sisters and making it their      prevent a competitor from capturing
                                     aspiration to start wearing the Orange         your market share or are you tr ying to
                                     Juice line the moment they turn seven.”        prevent someone from getting into the
                                        “Filipinos visiting families here would     market? Are you launching to occupy an
                                     stock up on our laing and Bicol Express to     uncontested niche or are you tr ying to
                                     take abroad,” Rufino and Anna Manrique         get ahead of a competing brand?
                                                                                                                            1
Marketing




 Photo by Lorelyn Medina/ShutterStock, Inc.




       Generation                                                      youth as
                                                                     e
                                                                th




       marketing                                                     entrepreneurs
                                                           d
                                                      an




 By HERBERT M. SANCIANCO
          A growing number of young entrepreneurs are               business management and marketing students whose skills are
         steadily making their mark in the local business           specially sharpened by professional mentors.
          community. Many are poised to become the new                 They usually star t with ver y little capital. In most cases,
              taipans of Philippine business in the next 10         the initial funds are pooled from friends and their parents.
                  years. These young entrepreneurs have a           The businesses are organized by a team of two sometimes up
                     fresh outlook for what a small and medium      to five friends who share a common vision. I have seen many
                        enterprise should develop for a product     in my time go through the same business bir th pains as their
                         idea that would generate the highest       adult counterpar ts until they reach the break-even period or
                         purchase appeal from a specific            other wise fail completely.
                        generation of buyers – in most cases,          The more successful ones star t up a business idea, relying
                       their age group.                             first on gut feel, to be validated at a later time by research and
                         Fashion, music, personal care ser vices,   formalized through a sound business plan. Some build their new
                     internet gaming development, food and          businesses around personal hobbies and interests, for example
                     beverage are some of the popular business      a winning school project. They often consult their former
                    categories whose products target the            professors—who ser ve as informal advisers, helping point
                    generation of Twenty-Somethings.                the young entrepreneurs down the right track or in resolving
                      Many     of   today’s    young    Filipino    problems in order to continue moving for ward. Young Filipino
                   entrepreneurs are products of their parents      entrepreneurs are gutsy and make a lot of personal sacrifices
                  from whom they have imbibed the initial           just to achieve their goals.
                  business outlook and skills. Some would              Culinar y Ar ts students are shoo-ins for star ting catering
                  have been members of JEMA (Junior                 businesses, specialty restaurants or bakeshops. By developing
                 Entrepreneurs       Marketing      Association)    unique food preparations and draw on strong product trials,
                 the campus based national organization of          they are able to capture a respectable number of repeat patrons.

1
You can see many of them in the commercial malls or store            keen eye for oppor tunity and flair for publicity, Branson now
clusters around town.                                                owns Virgin Music labels, Virgin Atlantic Air ways and Virgin
   Those who graduate as fashion designers with a keen eye for       Cola, among others.
fashion trends create their own fashion labels from clothes to
shoes. Many have retail kiosks in the major depar tment stores       Look and Listen for Oppor tunities
in Manila. While competition in this field is rather high, they         Ser ving the Twenty-Something market is actually a fun
are able to continually make their mark in the fashion world         market because of the diversity of their needs and wants.
by improving their skills. They attend fashion shows of other        Usually, being closely associated with a cosmopolitan lifestyle,
designers here and abroad, conventions or join skills contests.      those who are able to keep abreast with the latest breakthroughs
                                                                     abroad are ahead of their game. The internet is the key source
Twenty-Somethings are a Fickle Market                                of that knowledge.
   Supplying the Twenty-Something market is a huge challenge            There are many interest groups listed in the net where one
because of their constantly changing needs and wants. This           can sign up and be sent news ar ticles or blogs. Oppor tunities
provides a narrow period of business oppor tunity for many           will present themselves for local applications. Creating a blog
young entrepreneurs. Those catering to this market categor y         today is even a money making oppor tunity for some of the
need to be constantly on their toes. In the ef for t to keep a       more persevering. In fact, some young entrepreneurs actually
step ahead of their customers, such entrepreneurs need to            sell their products to the world instead of the local market. I
constantly develop products that will enjoy a high demand and        personally did not have that oppor tunity in my younger days.
from which substantial profits can be realized.                      How I wish.
   The Twenty-Something market is exposed to a wider product            Trade fairs and skills conventions are also sources of good
selection than those of fered to the earlier generation called the   information that will help the young entrepreneur star t an idea
Baby Boomers (those born within 15 years after the last world        or move for ward with what he’s got. These activities are rich in
war). That is because the Twenty-Something market is an              networking contacts for suppliers and customers. Such events
impressionist consumer. They are usually not price conscious         tell who the competitors are and how they compare against
and would have the money to spend on items that catch their          you.
attention. Twenty-Somethings often buy on impulse. Baby
Boomers, in comparison, share the planned purchase mindset.          The Business Fundamentals are the Same
   It is this fickle market psyche that companies into fast-moving      Applying the 4Ps of marketing remains the recipe to ensure
consumer goods or FMCGs are most interested in conquering.           the success of generation marketing strategies. You need
The Twenty-Something is the market where lifestyle patterns          to know who to sell to, the right price that is perceptively




                                                                                                                                         Photo by JAIMIE DUPLASS/
                                                                                                                                         SHUTTERSTOCK INC.
develop and become established. This is the market where             acceptable to the market, the right selling venue and the right
product loyalty begins. The alcoholic beverage, cosmetics,           way of generating purchase interest and action.
personal care and sanitar y napkin marketers love this market.           The whole process need not be expensive. You will need to
                                                                     employ a practical marketing plan that will achieve the desired
You’ve Got to Be a Risk-Taker                                        interest impact and urge to purchase the product at the soonest
   Successful young entrepreneurs are those who are able to          possible time. Many young entrepreneurs learn the ropes the
turn a prospective idea into a selling reality in the shor test      hard way and as they achieve their break-even point, I have
possible time. They have the guts to face the risks involved.        mar veled at their stories of how they did it.
They enter the market fast and furious with the right product            FINALLY, do what you do with passion. Nothing in the
and price, and leave it at the right time having made their          business textbooks are able to properly describe this attitude.
millions. Some develop a business formula in order to return to      It’s always referred to as the single most impor tant element to
the market repeatedly and realize the same successful results.       success.
   Because they have a lifetime ahead, young entrepreneurs               Mabuhay ang Negosyante!
who succeed in their field are not afraid to reinvent themselves
or their products. They are not scared of failure. In fact, I know                         Herbert M. Sancianco has over 20 years
of a few who’ve fallen and risen several times. They have grown                            of experience in advertising, marketing
wiser and more successful with each occasion that they are able                            and sales operations. He owns and
to get back on their feet. After all, isn’t life basically a risk?                         manages Market Bridges, Phils. Inc., a
   A vivid example is Richard Branson, the flamboyant 56-year                              full marketing services company, with
                                                                                           offices at 11-0 Burgundy Corporate
old British billionaire famous for making Virgin one of the
                                                                                           Plaza, 252 Sen. Gil Puyat Avenue,
biggest, most successful brands. Branson star ted as a hippy                               Makati City. The author can be reached
and was an accidental student magazine publisher at 16 and                                 at mbpidmbc@i-manila.com.ph or at
opened his mail order record store at 20. A risk taker with a                              Tel: (63-2) 886-4122 to 23.

                                                                                                                                  1
Technology


Go G o G a dg e t!
 By KARL R. De MESA
                                                       PANASONIC	TOUGHBOOK-29                                 lithium ion battery pack, that can last you up to 8
                                                                                                              hrs, assures that you’ll rarely miss that important
                                                           Who doesn’t like laptops? They’re portable,        client email coming in.
                                                                                                                  With 80GB of hard disk space, lightning
  That copy of Wall Street                             stylish and just scream status symbol. Everybody
                                                       knows, though, that they’re as fragile as toddlers.    quick processing and wireless connectivity,
                                                                                                              communicating in real time with the office from,
Journal may be good for                                A couple of hundred thousand pesos can easily go
                                                       down the drain with a drop or minor collision. Let’s   well, practically anywhere, is a cinch. Say hello
                                                                                                              to out-of-the-office virtual business conferences
swatting flies, but these                              not even talk about spilled coffee.
                                                           Panasonic’s line of “tough books” answers this     by accessing databases on-line from even the
                                                       concern, making a line of laptops that are built to    harshest environments. Now, shall we set our next
gadgets can turn your                                  take it rough. Made for business travelers and field   trade meeting in the Amazon?
                                                       people who are constantly on the go (hey, deserts
business day into a synergy                            and mountains are no stranger business locations
                                                       than the urban jungle) the durable Panasonic
of user-friendliness.                                  Toughbook29 is a godsend for people who want
                                                       laptops but don’t want to feel like they’re carrying
                                                       eggs all the time.
                                                           Encased in magnesium alloy and tested for
                                                       ruggedness, the Toughbook29 can withstand
                                                       drops of up to three feet and has been tested for up
NOKIA	N93	                                             to 70Gs of shock and vibration. Magnesium alloy
                                                       itself is 20 times more durable than ABS plastic,
    You’ve probably seen the commercial for            having been molded at 800-100 tons per square
this one where actor Gary Oldman gushingly             inch. No doubt, this ain’t no geeky laptop.
quotes Shakespeare while whirling along a                  Nasty liquid spills (or even the strongest dust
New York street, shooting the scene with this          storm) don’t pose a problem since the outer case
amazing phone.                                         is water-resistant, sealed on every corner, hinge
    Nokia’s spanking new N93 is not only               and connector. Inside, the Toughbook’s Intel®
the coolest fusion of cellphone and digital            Pentium® M Processor LV 778 with a processor
                                                       speed clocking in at 1.6GHz makes it one of the                PANASONIC	TOUGHBOOK-29
camcorder rolled into one, as a multimedia
computer its business applications are also top        fastest fully-rugged mobile PCs on the market. The             Built for tough business, baby
of the line.
    With its shape adjustable to be interfaced                                                                WENGER	EVO	S14	
just like a camcorder, you’ll find that shooting
with this phone is as straightforward as they                                                                 RED	SWISS	ARMY	KNIFE
come. Stop taking notes and just film office
meetings on the fly for spontaneous review
                                                      NOKIA	N93	                                                  You just bagged that million peso client
later. This way, you won’t miss anything and          Say goodbye                                             contract and your team breaks out the
can even quote colleagues (or your pesky,             to still                                                champagne to celebrate. But nobody’s got a
amnesiac supervisor) verbatim.                        pictures!                                               bottle opener! With great care and ceremony,
    A 3.2 megapixel camera with a 3x optical                                                                  you filch from your pocket the lovely, new EVO
zoom and Carl Zeiss optics assures DVD-quality                                                                S14, pull out the corkscrew and save the day.
videos that can stand up to par with today’s                                                                  Cue MacGyver music.
digital movies. Gary Oldman wasn’t lying when                                                                     Over a century ago, Wenger introduced the
he said this was the next story on video.                                                                     genuine Swiss Army Knife to the world, now it’s
    See, if you’re out on some client call or field                                                           stepping up its game with the EVO series. EVO,
assignment and need to show your assistants                                                                   which stands for “evolution,” has ergonomic
or bosses exactly what you mean, you can just                                                                 handles in concave and convex scales made to
shoot what you want and then, back at the                                                                     fit and conform to the human hand. It’s truly
office, just connect the Nokia N93 directly to                                                                a marvel of innovation. I mean, they actually
your TV to show them what happened. With                                                                      made the Swiss Army Knife better!
video capture at 30 frames per second recording                                                                   With eight tools (and nearly double the
as an mpeg file, you can also upload your videos                                                              functions) including a Pen blade, springless
to other Blutetooth-enabled devices or on-line                                                                scissors with serrated teeth, a nail file,
to personal websites.                                         WENGER EVO S14
                                                                                                              nail cleaner, toothpick, tweezers and the
    The N93 comes bundled with Adobe                          RED SWISS ARMY KNIFE                            aforementioned corkscrew opener, no cubicle
Premiere Elements 2.0 software for video                      The coolest tool in your cubicle                dweller should be without it. The sleek, classic
editing at the touch of your fingertips. We’ve                                                                red color guarantees stylishness as well as
only just scratched the surface of the N93’s                                                                  functionality.
features but with an internal memory of up to                                                                     With the EVO providing the best grip
50 MB (that’s 90 minutes of DVD-quality video                  SINCE                                          possible you can now cut those documents,
or equal to 2500 high-quality photos) you’ll
                                                               1893                                           loosen or tighten cubicle’s screws and bolts,
probably be shooting videos more on this one
rather than actually making calls.
                                                                                                              take apart PC cases, or just file your nails into
    With this phone, your normal business day
                                                                                                              sharp, wicked points for when your chauvinist
will seem like a glamorous indie movie.                                                                       boss tries to cop a feel of your behind again.
                                                                                                              Now, that’s true multi-tasking for the fierce
                                                                                                              world of business.
1
Tips for the Entrepreneur
 Risk Management
     No matter what the size companies must have an approach to risk management, says
 Vicente G. Gamo, a certified public accountant and management consultant. Risks to
 the business can be managed if these are identified, he says. Then an entrepreneur can
 protect the business by:
     •      Ceasing activity associated with risk. For example, SME owners must ensure
 that personal funds are kept separate from business funds. Personal expenses of family
 members should not be shouldered by the family business. Ensuring during business
 trips that management and key personnel do not travel together on the same plane.
     •      Transferring the risk to another party. An SME can require a service contractor
 for a large project to put up a performance bond. An SME can also negotiate to extend
 payment periods with suppliers. Or, they can negotiate for shorter payment periods with
 their customers who purchase on credit.
     •      Reducing risk through better management and controls. Company systems,
 rules and regulations need to be written down and understood by partners and
 employees. Accounting systems must be in place. Key documents need to be duplicated
 and originals kept in a secure site.
     •      Insuring against the risk if possible. A company needs to insure against damage
 brought about by fire and natural disasters. The entrepreneur also needs to be insured
 so his or her heirs are protected.
     •      Accepting the risk only if nothing else can be done.




                                                                                               Three Hats
                                                                                                  The SME owner wears three hats
                                                                                               at work.
                                                                                                  As technician, he or she actually
                                                                                               does key sections of the work of
                                                                                               designing, producing and selling the
                                                                                               product or ser vice.
                                                                                                  As manager, the SME owner is the
                                                                                               organizer who makes cer tain that
                                                                                               tasks are assigned, resources are
                                                                                               allocated and schedules are met.
                                                                                                  As entrepreneur, the business
                                                                                               owner is the visionar y, promoting
                                                                                               new ideas and inspiring his people.
                                                                                                  The constant tension among
                                                                                               the       roles       of
                                                                                               E n t r e p r e n e u r,
                                                                                               Technician         and
                                                                                               Manager         often
                                                                                               leads the SME
                                                                                               owner to fall
                                                                                               sway         under
                                                                                               what Stephen
 Keeping Budgets                                                                               Covey         calls
                                                                                               “the      tyranny
    Preparing a budget no matter how small your business is well worth the effort, says        of the urgent.”
 Plantersbank Senior Vice President Bernadette T. Ratcliffe. Start with the best estimates,    This       means
 err on the conservative side.                                                                 that       urgent
    In addition, setting aside an “X Fund” for unexpected opportunities or a crisis provides   work like crisis
 flexibility to respond to unexpected turns while maintaining stability.                       management is taken
    A budget provides focus but it is of little use if it is made, filed and forgotten, she    up at the expense of
 says. To serve its purpose, a budget must be studied monthly; variations duly noted and       impor tant work like
 responsibility for the variations fixed.                                                      planning.
    “Money talks,” quips Ratcliffe. “The moment you often hear money talk is when it
 says good-bye.” Unless you set a goal where your cash has to go, it just goes.



                                                                                                                                 1
Book Review
A PINOY BUSINESSMAN’S REVIEW:                                                                                   by J. Paul C. Roxas, CSP



“MBA - Management by Auerbach”
Arguably the greatest basketball coach of all-time, Red Auerbach coached some of the legendary
names in the history of the most successful NBA team, the Boston Celtics. These include Hall of
Famers K.C. Jones, Ed Macauley, Bob Cousy, Bill Russell, Bill Sharman, Frank Ramsey, John
Havlicek, Sam Jones, and Tom Heinsohn. Still other Hall of Famers whom Red, as a general
manager, recruited were: Nate “Tiny” Archibald, Dave Cowens, Larry Bird, Kevin McHale, and
Robert Parish. In his book, "MBA - Management by Auerbach," he shares with us some of his
valuable insights.

   All entrepreneurs want to win.        In       to adjust to the times, and keeping that
all aspects of each of our businesses,            competitive edge to beat out competition,
entrepreneurs like us have a burning desire       Red shares how to make an organization
to win. And what better way to be coached         work like a machine yet feel so much like a
to success but by the winningest coach in         family.
the history of the U.S. National Basketball
Association (NBA)—Arnold “Red” Auerbach           Elements of winning
— especially if you love basketball!                 Red shares incredibly valuable insights
                                                  on recruitment, emphasizing on first
Decision-making under stress                      knowing what you want in order to win as
   If a business manager’s success is usually     an organization, using business intelligence
measured by his accomplishments within            along with reading people’s character, and
a 3-month or 12-month period, an NBA              then making that all-important win-win pitch.
basketball coach’s success is based on each          Although he terms it as attitude in general,
48-minute game he wins within the 7-month         he seems to underscore respect, discipline,
season and the quick pace of decision-making      that burning desire to win, and their walking
under stress that make basketball coaching        their talk as the key combination to even being
truly an acid-test of a manager. And if he        chosen as a candidate. These seem to be
didn’t walk his talk, it definitely would have    less and less heard of in modern recruitment
shown in his win-loss card.                       systems. Yet this principle still holds true.
                                                     Red tackles touchy topics like motivation        he surprisingly espouses more building a
Winningest coach                                  and performance appraisal with golden               way of life, not just a winning team.
    Not only did Red rebuild and coach the        wisdom. Reading between the lines of his               At the end of the book is a chapter entitled
Boston Celtics from 1950 and lead them to         concepts and techniques will give you               Fastbreaks. It is filled with situations you
8 straight championship titles from 1959 to       insight on why most collective bargaining           can use to gauge how different or how
1966 for a total of 9 titles from 1957 to 1966,   agreements         (CBAs)      always       leave   similar your judgment would go compared
he later became general manager of the team       management with the short end of the stick          with Red’s.
and saw through 7 more championship wins          when it comes to expecting an improvement              A fundamentalist thinker, Auerbach does
from 1968 to 1986. He is today the president      in productivity. Red underscored promotion          have quite an arsenal of opinions for just
of the Boston Celtics and is in his 56th year     from within all throughout his stay with the        about everything. Yet in all modesty, he
as a member of the Celtics family. He has         Boston Celtics organization.                        disclaims being an expert even as others
also received 7 honorary doctorate degrees           And in a very Filipino-type of tactic, use       may swear he is. Despite Red’s reputation
from various colleges and universities. Most      rule bending as a means of motivation,              of being stubborn about what he believes in,
of all, he’s an out-of-the-box thinker and        trying every way to help every member of            he proves that even he as an ‘old dog’ can
to many, that beats out most management           his team contribute to team success. What           be taught new tricks. Fact is, he offers early
authors, making Red very eligible as a            will surprise you is how often he bends rules       on that you could learn from his techniques
practical manager with very solid ideas. In       for a player.                                       and then modify them to suit your specific
all, Red has written a total of 7 books.                                                              situation.
                                                  Building a way of life                                 So… anyone for an inside look at that
Down-to-earth management style                        He aptly points out that motivation goes        Celtic Mystique?
   Without the high-fallooting management         beyond money, at least with each of the
jargon, Red’s management concepts hit             members he had recruited to his team.               Paul Roxas, CSP, is a candidate for a mas-
home like he was talking to you in a huddle,      And that fairness breeds loyalty. He also           teral degree in management engineering at
or in the players’ locker room, or in a one-on-   touches on taking advantage of experience           the University of Sto Tomas. As a profes-
one interview at some coffee shop, like it was    and wisdom as in temporary part-time hires.         sional, he has served in the manufacturing,
plain, clear talk complete with anecdotes and     Covering topics like training and mentoring,        service, and trade sec-
cases. The book is such a light material to       he seems to cite that the amount of training        tors. He has rendered
read you might even imagine getting a whiff       is very much tied to the effectiveness of the       service in the fields of
from that signature victory cigar of Red’s.       recruitment process—in inverse proportion.          operations, information
                                                                                                      systems, product man-
   Whether you’re a startup entrepreneur or           Other management areas Red covers               agement, product de-
considering a changing of the guard, you’ll       are advertising and promotions, drugs in            velopment, education
probably find Red’s insights very doable.         the workplace, over-stress, multi-ethnic            administration, strate-
From building an organization from scratch,       workplaces, and learning from mistakes.             gic management, and
growing and even pruning the organization         Known for his distanced style of management         security.

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