Sara Lee: Transforming to succeed at all times

Whenever the brand Eskinol is mentioned, many Filipinos will most likely refer to Vilma Santos. A successful communication campaign and close partnership with a popular and credible endorser will usually linger in our memories even after many decades. Many marketers regard such a phenomenon a blessing, on the other end, others will argue that such is a disadvantage. For Sara Lee, the owner of Eskinol facial care lines, the close association to its past endorser is both an advantage and a challenge for the brand.

Chicago-based Sara Lee Corporation is a global manufacturer and marketer of high quality brand name products for consumers throughout the world. This multinational company markets branded products in nearly 200 nations and has 137,000 employees engaged in the following lines of business: food and beverage; branded apparel; and household and body care. Its latest fiscal year ended July 2, 2005, with net sales reaching $19.3 billion.

Sara Lee Corp. has well known brands in leading positions in many markets worldwide. Kiwi ranks number one in shoe care worldwide. Sara Lee is the number one brand in US fresh and frozen bakery products. The company has leading positions in many European coffee markets, one of its brands, Douwe Egberts, recently celebrated its 250th anniversary. Its branded apparel line of business carries some the industry’s most powerful brands such as Hanes, Playtex, Champion and Wonderbra.

Several of the company’s brands are decades and centuries-old, indicating resilience and vigor even during most trying times. Marketing manuals will fittingly describe such brands as built on consumer needs and expectations, and offering exceptional quality and value. It is also a cliché to say that leadership positions are maintained through innovation and responsiveness to signs of the times.

Sara Lee Philippines, Inc. also locally abides by these fundamental objectives in marketing. However, marketers alone cannot deliver such goals. At any point in time, marketers in Sara Lee are not an island. Almost everyone in the organization is engaged in building brands. All functional departments coordinate and operate with one unifying mission: "To simply delight you… every day."

During trying times, such as the current business environment, the organization becomes more cohesive in overcoming challenges. In Sara Lee, everyone gets involved in a business transformation that ensures its brands continue to deliver relevant and good quality products at good values.

Sara Lee has three pillars in business transformation. The first pillar rallies functional leaders to generate cost savings and efficiencies. A recent example is the decision to outsource its logistics function, and another example is an early retirement program initiative.

The second pillar for business transformation is to organize the team around the direct customers: a) key accounts, for the modern trade; b) regional distributors, for the secondary trade and c) wholesalers, for sari-sari stores and market stalls. Distinct objectives and strategies are defined by the leadership in sales, and by brand managers for each of the above mentioned trade channels.

The third pillar is to define priorities and instill focus on the business portfolio. All brands carried by the company are categorized as either: a) investment; b) growth; c) maintain; or d) manage for cash brands. Resources and time are always limited. But strong discipline in portfolio management create order instead of chaos during trying times.

Thus, Sara Lee Philippines is able to maintain or improve its market positions; increase its distribution reach; and achieve double digit growths in several key accounts, despite tough competition and prevailing weak consumer spending.

In its body care line, Eskinol has been one of the leading facial care brands, with over 60 years presence in the country. Master is a dominant leader in the male facial care. Block and White is also one of the leaders with a full range of skin lightening products. In its household care line, Kiwi is another dominant leader in the shoe care category in the Philippines.

Vilma Santos, Sharon Cuneta and Angel Locsin have a few things in common. All have been most sought celebrities, all played the role of Darna, and all have been effective endorsers of Eskinol.