 CASE STUDY NO.

CASE STUDY NO. 3

Case: Making a Splash with Splash Corporation

The tale of husband and wife Rolando and Rosalinda Hortaleza is well known in the Philippines. As the story goes, the couple
launched a backyard business in 1985 to supplement their entry-level salaries as doctors at a government hospital. From this humble
beginning, the Splash Group of Companies was born.

Beyond the Backyard

Like many entrepreneurs, the Hortalezas sought a big success. In 1987, they spotted an opportunity in hair spray, because “big hair”
was the fad in the Philippines at that time. So the couple created a company that offered a high quality, low-price alternative to
imported hair spray The gambit proved successful, and the Hortalezas earned their first million Philippine pesos in sales that year.
Over the years, the company name changed several times, reflecting its growth and evolving strategy. What began as Hortaleza
Cosmetics in 1986 became Splash Cosmetics in 1987, Splash Manufacturing Corporation in 1991, and finally Splash Corporation in
2001. Today, Splash Corporation sells more skin-care products than international giants like Johnson and Unilever and local brands.
With sales of 90 billion pesos (nearly $2 billion), Splash Corporation is the number one maker of skin-care products in the Philippines
and is sixth in the international market, being the only Filipino-owned company to hold a position among global companies and
brands. In twenty years, the small business that the Hortalezas started has posted 5 billion Philippine pesos in sales, putting it among
the country’s 300 largest corporations.

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Splash Corporation exports and markets Splash products to almost twenty countries around the world. In Indonesia, unlike the
rest of the company’s market destinations, Splash entered into a joint venture with an Indonesian company, Parit Padang. By itself,
Parit Padang is one of the largest pharmaceuticals and health-care distribution companies in Indonesia. The joint venture, called
Splash Indonesia PT, began operating in 2000, importing Splash soap and skin-care products every month from Manila. The venture
now produces some of its products locally in Indonesia, employing a staff of 40 there in its factory. Splash Indonesia PT has even
developed a new product for the local market, the SkinWhite Whitening Bath Soap. This product blends innovative ingredients and
technology from the Philippines with a fine Indonesian noodle soap, creating a whitening body soap of a seemingly better quality than
other local soaps.

Splash recently launched the Splash Nutraceutical Corporation. The term nutraceuticalwas coined in the 1990s by Dr. Stephen
DeFelice, founder of the US-based Foundation for Innovation in Medicine. DeFelice defined the word as any substance that is a food
or part of a food and provides medical or health benefits, including the prevention and treatment of disease. In essence, nutraceuticals
are “a food (or part of a food) that provides medical or health benefits, including the prevention and/or treatment of a disease.”

The nutraceuticals market is growing rapidly worldwide, especially in such developed countries where disposable incomes are
higher and the challenges of diet-disease links, aging populations, and rising health care costs are more pronounced. Nutraceuticals
currently address health concerns like cardiovascular disease, osteoporosis, high blood pressure, diabetes, and gastrointestinal
disorders. Worldwide sales of nutraceutical products have grown exponentially and are currently estimated at $80 billion.

The establishment of Splash Nutraceuticals completes the company’s mission of becoming a total-wellness company. Fondly
called “Doc” by Splash employees (while his wife is the “Doctora”), Dr. Rolando Hortaleza considers nutraceuticals a natural
extension of the company’s personal care line of products. He defines the termwellnessas “beauty inside and out—if you feel good
about yourself, you then become more productive.” He estimates the market potential of nutraceuticals to be in the billions of pesos.

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The Values, Mission, and Vision behind Splash

Corporate Cause: We shall uplift the pride and economic well-being of the societies we serve.

Mission: Splash is a world-class company that is committed to making accessible, innovative, high-quality and value personal care
products for everyone.

Vision: We are a marketing company in the beauty, personal and health care industries where we shall be known for strong brand
management of pioneering, high-quality and innovative products derived from extensive research to improve the well-being of our
consumers. We shall do this through:

Leading edge trade and consumer marketing systems.

Pursuit of excellence in all other business systems.

We shall be generous in sharing the rewards with our employees, business partners, stockholders and our community for the
realization of our corporate cause

You are task to:

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 CASE STUDY NO. 3

 Read and understand the given case.

DIRECTIONS:

1) Submit your answer through goggle classroom in a doc./pdf format.

2) Deadline of submission is on March 17, 2021.

1.) Describe Splash Corporation’s corporate strategy and business strategy.

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●The Splash Corporation is a world class company that is committed to making accessible, innovative, high quality and value
personal care products for everyone. Splash Corporation is in a marketing company in the beauty personal and health care
industries where they shall be known for strong brand management of pioneering, high quality and innovative products derived
from extensive research, to improve the will being of the customers. They shall do this through leading edge trade and
consumer marketing system. Pursuit of excellence in all other business system. They shall be generous in sharing the rewards
with their employees’ business partners, stockholders, and their community for the realization of their corporate cause.

2.) Identify at least 3 problems faced by the company.

●One of the major problems faced by the Splash Corporation was the company lacked in hiring the professionals which could
give an edge to the company in expanding internationally. The main problem that face by the company is choosing whether it
should go for the international expansion in Asia through skin care and hair care products or should it promote its
nutraceutrical products in Northern America and European markets.

3.) Provide possible solutions for every problem.

● Hiring talented staff like its competitors was not a piece of cake
● by choosing the product that proper in the weather in the country that have a expansion.

4.) Each solution should have its advantages and disadvantages.

● This is because it is a good option for the company as Splash had already promoted its products in neighboring countries and
the products were already recognized there and Splash was familiar with the distribution channel there. Moreover, the
company was also having the opportunity that in countries like Vietnam, Malaysia, and Thailand, the consumer needs were
almost same like Philippines. So the chances are high that the consumers in these countries would accept the products as word
of mouth plays its role.

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