Tuesday, June 23, 2009

Philippines' Control of Corruption and Rule of Law lowest in Asia

by Ronald Jabal



The Philippines is considered a “soft state” in world governance as public sector institutions remain very week. The country ranks last in Control of Corruption and Rule of Law.

This was based on the most recent World Governance Indicators (WGI) quoted in the Philippine Human Development Report 2008/2009 produced by the Human Development Network (HDN).

Th WGI measures rule of law, control of corruption, regulatory quality, government effectiveness, political stability and voice and accountability around the world.

Based on the latest data, the Philippines’ ranking has decreased between 1996 and 2007.

Its largest decreases have been in Control of Corruption (45.1 to 22.2 – a decrease of 22.9); Rule of Law (54.8 to 33.8 – a decrease of 21).

Other rankings are as follows:

Political stability/absence of violence – 29.8 to 10.1 (decrease of 19.7)

Regulatory Quality – 67.8 to 50.5 (decrease of 17.3)

Voice and accountability – 53.6 to 43.3 ( decrease of 10.3)

Government effectiveness – 60.2 to 56.4 (decrease of 3.8)


When compared to Singapore, Brunei, Malaysia, Thailand, China, Vietnam, Indonesia, the Philippines comes in dead last in Control of Corruption and Political Stability; second to the last in Rule of Law and third to the last in Government Effectiveness.

It is ranked highest in Voice and Accountability – a category where all the comparator countries fall below the 50th percentile in the world governance index.

Mining the Field through Market Research

by Ronald Jabal


No action is more important in deciding whether to launch a new product, size up competition, determine market share, measure perception, reinvent image than conducting research.

It precedes action. It antedates decisions.

In the era of cut-throat and more often than not dizzying horizontal and vertical competition where innovation and quality; appropriate price and stylish product packaging; and persuasive corporate imaging and messaging, TSL – or the Tingin sa Langit approach is a cardinal sin to be avoided all the time and at all cost.

Today, “gut feel” has no place. Field research –where first hand information is gathered from primary users or consumers, rules!

It is through field research that companies are able to determine “what’s next”, “what to do” and “how to do it”. Results of field research become the basis of “actionable” jump off points of businesses – allowing them to tailor-fit marketing budgets; identify market opportunities and challenges before plunging into the market.

However, field research is not easy. Hence, instead of simply conducting arm-chair market scrutiny, it has become imperative for businesses – big and small – to get the services of professional market research outfit.

“While it sounds self-serving, businesses are better off by hiring professional outfits to do market research to fully understand the challenges being faced by their respective businesses,” declares Ms. Zon Langrio, Operations Director - TNS Philippines – one of the leading market research outfits in the country.

She underscores the supreme benefits of field research in today’s business operations.

“Going straight to consumers enables the marketers/or the client companies to better understand the consumption habits of their target consumers. They are able to position their products better,” Langrio stresses.

Doing the scientific way

Market research is a scientific way of using the principles of sampling to get a “read of information” from a subset of the population to infer or make hypothesis about the bigger population. It is both time and cost efficient way of getting the “pulse of the people” without needing to get the information from everyone.

“If not done properly, or not done at all, research is the cheapest mistake a company can make when deciding to give a go signal on a new product, a new advertising campaign or strategic brand positioning initiatives” Langrio says.

Langrio, however, discloses that there are limitations to field research. Among others, research is based on perception, “where we usually accept what respondents claim”.

She added undertaking research is time consuming, costly and requites a good sampling technique hence the data gather reflect the attitudes and consumption patterns of the consumers

One of the biggest hurdles that businesses face in conducting research is the budget requirement. “A number of firms are daunted by the amount they need to put in for research without realizing the tremendous benefits they will derive from a professionally-done market research,” Langrio says.

She laments that budget is usually the culprit why businesses either opt not to pursue research or pursue it on its own.

“Market research is very difficult to undertake on their own, given the technical and logistical requirements involved, particularly if the business firm does not have a market research unit which can undertake the research. Not knowing how to use research information as bases for decisions is the usual problem encountered by businesses which strike on its own” Langrio says.

Moreover, identifying the appropriate research method required for the market problem is yet another problem of businesses wanting to save on research budget.

Decisions on which statistical tools, sampling techniques, respondent profile, areas to be covered, design of questionnaire, data processing software, research team (interviewers, supervisors, spot checkers) are also some crucial issues that need to be decided on before undertaking the research – most of which are alien to businesses.

“For the enlightened ones, they commission a market research agency to conduct their fieldwork research. This ensures that their research studies will be undertaken professionally and the data obtained have integrity,” Langrio discloses.

The difference with TNS Philippines

Langrio proudly stresses that TNS Philippines is the leading custom research provider – with close to 30 years of professional market research experience in the country. It is the 2nd largest research company in the world under the Kantar Group. It has a network of about 1000 trained interviewers nationwide and three permanent field offices,( excluding the Metro Manila field office) thereby enabling it to service clients all over the country and undertake research with speed and quality.

“We are proudly ISO-certified, meaning that our operations, processes and procedures confirm to internationally quality standards. We have proprietary business solution software for measuring and tackling consumer attitudes and behaviors. We use in-house interviews directly supervised by our field project coordinators. This ensures tight quality control of field processes and procedures,” Langrio says.

She, however, revealed that conducting market research and servicing clients is never without any hitches. Among the usual problems encountered are managing client expectations, data management and quality, difficult respondents, scheduling and security issues during field work.

“But we at TNS Philippines are able to solve these problems right away given our long and varied experiences in the field. The trust we have gained from clients, the areas we have been, and the people we have interviewed have contributed well to our reputation of being No.1 in the market research in the country,” Langrio says.

Can small businesses afford market research?

Instead of looking at corporate size, funds availability and research budget, every business need to focus on its goal, advises Langrio. “What do they hope to accomplish” –is the question she advises businesses to ask and then look at how they intend to do it – basing their decisions on research.

“When they focus on goals and realize how important research is in accomplishing these goals, budget becomes secondary. Hence, when w are asked if there is a rule of thumb on much budget should be given to research we say there is none” Langrio says.

She added, “Objectives should be very clear and focused. The scope of the research is dependent on where a company is in terms of the life cycle of its products. At introductory stage, one needs only some initial market scan of potential size, likely competitors, marketing structure in terms of pricing promotion and distribution. At growth stage a lot more is needed, like brand health tract, FGDs to get detailed consumer insights; and continuous new product testing for its new products. Typically, brands that struggle (losing shares, losing customers) need to invest more to reverse the trend. Competitive data is also important to be able to compete more intelligently”

Tips tips tips.

Langrio dishes out the following tips:

For small companies: employ a good market research manager who can tailor fit part of your research requirements to your company’s needs and be able to effectively select a good 3rd party agency partner for your strategic info needs. And more importantly, would know how to use/apply results for effective decision making within the company.

For bigger companies: work with best supplier of research service requirement.
“Do not look at actual cost of the project. Look at how much actionable information you get from the study. An experienced full service agency will be able to give you much more information and will help you plan and maximize your budget if you work together,” Langrio recommends, adding conducting research in time with annual

Thursday, June 11, 2009

thru Buzz Power: Charantia regains and retains top spot

by Ronald Jabal

A sweet comeback from the bitter veggie.

No popular actor/actress endorsing it. No splashy and high-budgeted ads to resurrect it. Just pure buzz from satisfied customers.

This is the story of Charantia – the food supplement made from 100% dried whole Ampalaya – minus the bitter taste. It comes in three variants: the loose tea, tea bags and 500 mg capsules.

Launched in 2001, Charantia – manufactured and marketed by Herbcare Corporation - immediately captured the interest of diabetics specifically and health buffs in general.

The diabetics and their families saw Charantia as a very good food supplement that will help the stabilize sugar levels. It does not have the bitter taste of the actual Ampalaya and it is highly convenient. Health buffs on the other hand saw Charantia as part of their preventive health care regimen.

As a result, Charantia sales skyrocketed. Aided further by carefully targeted tri-media campaign Charantia became a household food supplement brand.

“We were an instant success. Introducing the product to the marketing was a walk in the park. What made it possible was that the DoH had already been campaigning for Ampalaya and we just produced a product from Ampalaya and the market gobbled it. We were simply riding on the DoH campaign and Charantia made it,” said Lito Abelarde, President of Herbcare, the makers of Charantia.

But the success was not without any challenge. “We were, however, a victim of our success,” Abelarde quickly pointed out.

On top of the numerous similar products that cropped up imitating and competing with Charantia, the Department of Health (DoH) issued a circular that “strongly advised all concerned to cease, desist and discontinue any endorsement of ampalaya an alternative treatment for diabetes mellitus”.

This circular confused the public given earlier DoH campaigns promoting the consumption of Ampalaya. The public was further confused with some reports showing diabetic patients unwittingly discontinued taking their prescription drugs and replaced them with ampalaya capsules.

The DoH circular had a huge effect on the consumption of Charantia. Sales went down and the confusion was high. Abelarde, however, said, it was the loyal client of Charantia that kept them afloat.

“Satisfied Charantia users called up radio and TV stations and allowed themselves to be interviewed by the press to show that Charantia made wonders in their illness. Families of diabetics also made numerous public testimonies to promote Charantia. And this kept our
products alive,” Abelarde disclosed.

Abelarde also disclosed that to help clarify issues Herbcare put out advertisements that Charantia is only a food supplement and that diabetics should not be discontinuing their medication. The firm even went beyond by placing “warnings” in their packaging that effectively recommends that those taking Ampalaya supplements should not be stopping/dropping their medication.

Abelarde, however, admits, the power of “buzz” and the volley of statements from satisfied customers coupled with low-key advertisements using real diabetics and doctor statements and a number of educational tours and symposia made possible the continued patronage of the brands during the “confusion stage”.

But the “nightmare” disappeared with the issuance of a new DoH circular that breathed life anew to Ampalaya. The Department of Health (DOH) is now advocating the use of Ampalaya for type-2 diabetes.

Also leading the promotion of Ampalaya, along with other herbal medicinal plants, is the Philippine Institute of Traditional and Alternative Health Care (PITAHC), an inter-agency attached to the Department of Health. PITAHC was created after the Traditional and Alternative Medicine Act was signed into law in 1997.

Among others PITAHC is tasked to spearhead efforts to develop safe, effective and commercially viable herbal products.

The Association of Municipal Health Officers of the Philippines (AMHOP), the organization of over 1,500 doctors running the public health centers, even recommends Charantia to their diabetic patients. This makes Charantia as perhaps the only herbal product recommended by a national medical organization.

“We have even measured through blood sugar tests how our patients improve their sugar after a month of adding this tea to their regimen,” AMHOP past president, Dr. Guia Abad, was quoted to have said.

Their experience with Charantia was so successful that these doctors made it the official food supplement of Operation Diabetes, their DOH-endorsed nationwide diabetes awareness and prevention program. Operation Diabetes backs the creation of diabetic support groups across the country to help curb the rising local incidence of the disease.

While AMHOP’s Operation Diabetes is geared towards the rural areas, a new campaign, being spearheaded by Herbcare, is now focusing on urban centers.

Called the 30-day challenge, the new campaign is an information, education and communication campaign among employees in urban centers, beginning with a number of government offices. It aims to measure the sugar level of participants before and after Charantia is made part of their regular dietary regiment.

“We want to teach participants to be responsible for their health. We work with clinics which invite employees who have diabetes or those suspected from suffering from this disease. We teach them about the value of exercise proper diet and request them to include Charantia in their diet plan. Every week we measure their sugar level and at the end of 30 days they expressed satisfaction as all of them experience lowering of blood sugar. These satisfied customers become our ambassadors. They tell other people about the wonders of Charantia and they too become hooked,” Abelarde said.

Herbcare had to think of very innovative ways to compete in the current food supplement industry. Abelader admits the business environment is now different compared in 2001 when the company launched Charantia.

“We are back with a vengeance. But we are now operating in an industry that has grown so much. Competing with the attention of people is getting to be difficult unlike in 2001 and 2002. We now have to compete to stand out from the clutter as the food supplement industry is one of the fastest growing industry. Our industry also advertises heavily as well. While my competitors invests in big-budget advertisements, we remain prudent. We have to be more creative in pushing our brand through ads,” Abelarde stressed.

And Herbcare may have found the right strokes.Charantia is now sold in the U.S.A., Canada, Mexico, Europe, Japan, Korea and parts of the Middle East. Locally, Charantia is being sold in Mercury Drug and in leading drugstores and supermarkets.

The company is also set to introduce new products. Its second product is Policosanol Prime. Made from a natural substance derived from sugarcane wax, Policosanol Prime can help lower high cholesterol levels without harming the liver even with prolonged use.

Persons with family history of high cholesterol and heart disease, obesity, a sedentary lifestyle and those consuming unhealthy can take Policosanol Prime. Drs William Torres, former director of the Bureau of Food and Drugs and Yolanda Robles, former Dean of the College of Pharmacy UP Manila have both endorsed Policosanol as a potential supplement that could help many individuals manager their high cholesterol levels.

Abelarde said Herbcare will not stop producing food supplement that are clinically proven to help people suffering from diabetes, high cholesterol, hypertension and the like. “We are not in this business just to earn. We are in the business of helping and educating people. And we are very happy that we can help raise consciousness of Filipinos about the value of health care. More than anything else, Herbcare is my advocacy,” he stressed.
.

Of brands and men: Whealth soars heights in health supplement industry

by Ronald Jabal


A promised delivered.

This is how Whealth Inc. has made and continues to make a name in a highly competitive health supplement industry. Building brands and expanding markets here in abroad – even making in-roads in the tightly-held share of global brands in the country - remain to be its most potent weapons.

One is left to think that Whealth Inc. is a foreign firm armed with millions of advertising money; run by black-suited businessmen and a horde of employees; and employing thousands of distribution channels.

This is, however, far from the truth. The company is basically a “father and son” operation, employing a handful of staffs. But its deficiency in manpower complement is well compensated by the creative genius of Mr. Albert MG Garcia and son Laurindo and the industry of their employees.

And their accomplishments are nothing to be sneezed at.

The father and son “dynamic duo” has five brands under their belts: ABW, CranUTI, Gargol, nyte –E and its most popular brand C-Lium Fiber (Whealth remains the owner of the C-Lium Fiber brand outside the country while Pascual Laboratory bought the brand for local sale and distribution).

ABW – Leaves of Life is a 100% natural whole food supplement combining Alfalfa, Barley and Wheatgrass into a single potent super-oxidant. Regular intake of ABW helps the body fight free-radical damage, aging and stress while providing sustained energy throughout the day and a deep and restful sleep at night.

CranUTI contains all the vital elements of cranberry including vitamins and minerals that help maintains women’s healthy urinary system thereby preventing the occurrence of urinary tract infection.

Gargol is an all-natural oral wash that combines pure essential oils, xylitol – nature’s cavity-fighting sweetener – and propolis – a natural antibacterial agent. It has been considered a new innovation in the treatment of dry mouth by the Manila Dental Society.

nyte – E is a natural face and hand lotion made from natural Vitamin E and 100% pure French Lavender Essential Oil designed to promote skin elasticity, regeneration and a good night’s sleep.

C-Lium Fiber is made of psyllium husks which aid in digestion and lowering cholesterol. Intake of C-Lium Fiber eases constipation and irritable bowel movement.

Gauging from these products, one need not be a rocket scientist to see they hardly belong to a particular product category – which is a source of pride for the Garcias. Instead of participating in an already crowded category, Whealth has managed to carve out new categories. Instead of conforming, the Garcias have taken on the role pathfinders and trailblazers in building their brands.

“While it is true we remain to be part of the heath supplement industry, we nevertheless have managed to create brands that have carved out their own categories. ABW is the only one that has combined the powerful ingredients of Alfalfa, Barley and Wheatgrass. CranUTI is a class on its own in the treatment of UTI, Gargol is the only organic and ‘no-alcohol’ oral wash. Our face and hand lotion – nyte- E – is the only one that contains pure fresh lavender essential oil. C-Lium Fiber is the only one that offers fast relief from constipation through psyllium husks,” Garcia said.

“The public has welcomed our products and has been very loyal because we delivered on our promises. Our consumers felt relief after consuming our products. And since we don’t have huge budgets on advertising and promotions, these satisfied customers have been instrumental in building our various brands. Our products spoke out about the benefits; the consumers patronized; and they in turn helped create the buzz,” Garcia added.

Birth pains

Building the brands was not a walk in the park at all. Garcia recalled he built his first brand - C-Lium Fiber- through free sampling during special events and direct selling to friends and associates. Still packed in see-through plastics and manually sealed ala “mani” or peanuts sold in local sari-sari store, C-Lium Fiber was placed on tables during special events.

At first nobody bothered to get them, hence Garcia gathered all of them at the end of the event. The brand’s fate turned for the better when Mercury Drug founder Mariano Que offered to carry C-Lium Fiber in the drugstore chain with a caveat i.e. to change the product’s packaging.

Heeding the advice, Garcia went to his drawing board and developed C-Lium Fiber’s packaging.

Since then C-Lium Fiber has had tremendous success in the Philippine market. Those who did not get C-Lium Fiber during special events were now hoarding them. More and more people also tried and got hooked on the product. Mercury Drug became C-Lium Fiber’s retailer and Philusa Corporation became its distributor.

Given its financial constraints, Whealth also did not have a full-blown advertising campaign for the brand. It contented itself in print advertisements which are educational in nature – explaining to consumers the nature of digestive disorder and how C-Lium Fiber can help.

His now famous copy “are you a floater or a sinker” reverberated across sections of consumers producing recall and increase demand for the product.

Whealth has also engaged in guerrilla publicity through tie-ups with radio stations and announcers and commentators. Through actual use and experience from C-Lium Fiber, media personalities started broadcasting the benefits of the product.

Whealth also made rounds in medical events promoting the products through education talks and sampling.

The below-the-line strategy worked as the success of C-Lium Fiber branding activities did not go unnoticed. A successful Filipino pharmaceutical firm Pascual Laboratory bought the brand from Whealth Inc. Garcia clarified however that Pascual Laboratory only bought the Philippine operations of the brand. Whealth remains the owner of the brand outside the country.

Moving forward

With the success of C-Lium Fiber, the Garcias moved on to build more products. They launched Gargol and positioned it as an alternative to the current oral wash. On top of having price-point advantage, Gargol has a unique proposition: it does not have alcohol and contains natural ingredients – setting it apart from current oral wash products.

This time around, Whealth has employed a more “structured” way in product packaging and promotions. A number of focus group discussions with the help of an advertising agency were made. Results lead to the development of four Gargol variants: apple, orange, strawberry and peppermint flavored oral wash. To boost its campaign, Whealth also used actor/TV host Drew Arellano as endorser.

And the product, since launched, has been eating up into the slice of the oral wash market. The product is becoming a player in the industry dominated by highly-advertised and big-budgeted brands.

“What makes us different from the other brands, aside from our all natural ingredients, is the tight operation we strictly keep. We don’t have boundaries or constraints unlike the current brands which have to conform or heed the dictates of their headquarters elsewhere. We don’t have shackles on how to market the product. We make decisions very fast because there are only two of us. We have always maintained that a decision not made immediately is a wrong decision,” Garcia said.

This early, inquiries from potential buyers have also started to come by Whealth – interested not only to buy the product but the brand itself. And this expression of interest remains music to Garcias’ ears. For them, these are expressions of recognitions that they are doing something good. “The ultimate compliment is an expression that people would want to buy our brand. This is recognition that we have been successful in building a brand”, Garcia said.

Other Whealth products like ABW and nyte-E have also used product endorsers. While the former is endorsed by Pilita Corrales, the latter is endorsed by socialite Fortune Ledesma. For CranUTI, Whealth has experimented on bilingual advertisements to appeal more to its target audiences. The firm is also targeting educational tours and lectures to a number of export processing zones and highly-targeted and well-selected offices to promote CranUTI.

Asked as to Whealth’s plan should there be a crisis (e.g. adverse effects of health supplement intake), Garcia confidently said, he does not see any crisis happening but he is quick to point out the company has a national recall plan that will be activated in crisis situations.

“While we see no side effects to our products, we nevertheless are prepared in any event now and in the future,” he said.

What is keeping Whealth more excited these days is the prospect of exponential growth. Garcia disclosed that Whealth is developing 10 more brands to be launched soon.

He, however, played coy on what these brands are and what types of illnesses they are intended for. He, however, promised that these brands respond to the current need of Filipino consumers who have become more conscious about wellness and health well being.

“We have always conceptualized our products and brands based on the consumers’ needs. While others try to imitate and create brands similar to the existing ones, we create our own industry. We are the alternative to the traditional. We are the NATURAL alternative. ” Garcia stressed.