Pick and Mix

We’re very particular with the taste. It has to be something marketable, something that will be easily accepted by our customers.

B anking on the Filipinos’ sweeth tooth, husband and wife team Edison and Tina Mariano went with their gut feel and introduced the first “pick and mix” candy store in the country.

That was in 1996. Today, the couple behind Pick and Mix has successfully established a regional network in Luzon and Visayas consisting 51 candy stores—including 17 franchises and 10 consignor outlets in SM Malls and Supermarkets.

“We started as a home-based company on only P50,000,” Tina recalls. “Edison and I literally ran the show with a staff of two to mind the store.”

The route to success for the Marianos was hardly a leisurely stroll in the park. They barely made even when their first outlet opened in Metropolis Alabang in February 1996. The idea of customers selecting, mixing and purchasing candy by the gram was uncomfortably new to the public.

Despite this setback, the Marianos remained steadfast in their belief that the business would experience a turn around. It just took a little more time before naturally inquisitive Filipino consumers overcame the initial shyness for the novelty concept.

The Right Moment

“When we started in 1996, Filipino consumers were just beginning to imbibe international cuisine, fashion and shopping practices,” explains Tina. “We sensed it was time to open a new kind of store.” And how right they were! Word quickly spread and the new candy store drew customers like bees to honey. Sales at the Metropolis store started picking up when SM, the country’s largest retailer and mall operator invited the Marianos to introduce their concept to management.

“We faced a panel of SM senior executives and Harley Sy told us that a similar concept had been tried and failed only a few years before,” Tina remembers. “Edison and I were really determined and we said the Filipino consumers are ready for something new and the time was right to reintroduce the concept.”

It didn’t take long until the first Pick & Mix store opened for business in SM City North Edsa. The new concept was an instant hit with mall goers, who stocked up on candy to their hearts’ delight. “Business was so brisk we were clean out of candy by day’s end,” according to Edison.

Filipinos took to the idea of choosing and combining their favorite sweets. The array of sweets was overwhelming, especially first-time buyers. The store offered a host of rainbow-colored gummy bears, mints, jelly beans, hard and soft candy, chocolate and a host of other confectionery.

The variety of candies and sweets are sourced from all over the world. Germany produces the best gummy candies in the market, according to Edison, whose company assignment is to scout far and wide for the best confections available. He said the Philippine candy industry still has some considerable investment to make before it can catch up.

While European sweets are definitely among the finest in quality, a volatile currency exchange rate can easily spell doom for any business that is unable to manage risks. For this reason, Pick & Mix stocks up from local confectioners and candy makers in the United States, Turkey, China and Thailand.

In Candy Heaven

From an initial 24 varieties, Pick & Mix now carries 36 different kinds of candy, nuts and chocolate and is expanding its product line to include candy toys, candy bubbles, candy jewelry and candy bouquets. Pick & Mix also offers party packages featuring candy carts, cotton candy and chocolate fountains and appearances by the company mascot Gummy Bear. The lovable mascot which debuted in 2001 is a regular fixture at Pick & Mix store openings, promo activities and company events.

“The concept behind Pick & Mix candy stores is nothing new,” says Edison. The couple stumbled upon the theme in 1995 during a vacation to the United States with the kids. Every time they were in a mall, Nico and EJ, who were two and three year olds at the time, would race to the candy store and load up their goody bags with all kinds of sweets.

“We saw how happy it made them,” Tina recalls fondly. “The candy store was like heaven for the kids.” She and Edison realized they wanted Filipinos to experience the same excitement and delight that their kids shared on those trips to the candy store.

They decided it was a terrific business idea but discovered the foreign franchise fee was prohibitive. Unfazed, the Marianos decided to put up their own company.

Having spent some years as employees, Edison and Tina always dreamed of going into business for themselves. They were already managing two at the time—the printing press inherited from Tina’s family and their trading company, supplying garments for the SM department stores—when they fell in love with the idea of a “pick and mix” candy store. It didn’t take too long for them to take on one more.

All in the Family

Their instinct to set up Pick & Mix paid off. Eventually, they opted to let go of the printing press and the trading company and concentrate their energies in building Pick & Mix into the country’s fastest growing candy store chain.

The Marianos never expected their candy store concept to enjoy widespread popularity. Tina said when they started they would be happy if they had two stores. Now, the Mariano family which added three kids is very much into the business. The couple shares the responsibility of managing Pick and Mix. Edison oversees product sourcing, supply and store facilities management, while Tina handles day-to-day operations and finance.

And with the kids exposed to the business at an early age the two eldest kids—whose sweet tooth inspired the Pick & Mix idea— are already helping out. Nico their eldest, works in the office during school breaks while 14-year old EJ lends his computer skills to designing sales presentations for his parents.

Not to be outdone, the three younger siblings—JR, Angelic and Eric do their share with the pleasant chore of company taste testers. Whenever Edison and Tina discover new sweets and flavors they want to introduce, they always make it a point to ask their children’s opinions.

Everyone in the company is involved in choosing the new product line. Once the children make their choices, the employees are asked to evaluate the new candies and sweets. It’s more than just flavor, other things to consider about candy are appearance, texture, aroma, color and consistency.

Tina and Edison also make it their point to taste what they sell. “We’re very particular with taste,” Edison points out. “The candy has to be marketable and acceptable to Filipino customers.”

Candy Connoisseurs

Having been in the business for a decade, Edison and Tina are now candy connoisseurs. “Some varieties and flavors simply won’t catch on in the Philippine market,” Edison observes. For this reason, the company tests out the new varieties in small amounts at their outlets before introducing the product full-scale.

He explained that shelf life and storage are factors a candy seller has to consider when stocking up. “Proper storage, temperature control and handling are crucial in the candy business,” says Edison. “A product like chocolate can be a tricky item to handle.”

Tina pointed out that Filipinos love sweets, but they are not the adventurous types when it comes to desserts. “Filipinos tend to stick with what’s familiar,” she remarks. “Part of our work is to educate the customers about the different confectionery in the market.”

Now that they’re 10 years into the business, Edison and Tina continue to find innovative ways to offer customers novel experiences with each visit to their stores. The couple is now looking into an all-inone gift shop to complement the Pick & Mix concept.

As part of its expansion program, the company recently put up its website www.pickandmix.com.ph with the help of Plantersbank’s affiliate SME.com.ph.

The couple hopes the website will become a powerful marketing tool for their business—tapping new markets through e-commerce and providing a 24-hour point of contact for prospective franchisees. The company is expected to introduce the Pick & Mix stores to more provincial sites. Edison and Tina have their eyes open for franchising prospects in Dagupan, Cabanatuan, Legaspi, Iloilo, Cebu, Davao and other key cities, where the concept is still a novelty. “Our ultimate dream is to set up branches overseas,” according to Tina.

Determined to Grow

Although Pick & Mix is growing as a result of their franchising strategy, it took some time before the Marianos warmed up to the idea. “At first we didn’t entertain the thought,” Tina says. “But we were even then receiving many inquiries from people who liked the concept of our stores it just came to a point that I felt I was being selfish not wanting to share our success.”

At first, Tina admits she was hesitant to “let go” and franchise the business. “I was afraid that if something unfortunate happens in one of the franchises, the reputation that we built for the company would be destroyed overnight” Tina admits.

The couple had reached a crossroads. They could either choose to grow at a slower organic pace, or take advantage of their early lead and tap new markets through franchise operations.

After consulting with franchise expert Armando Bartolome, the Marianos realized the risks far out weighted the business opportunities. The couple was on their way to a new phase in their business. They set the process in motion by securing a franchise development loan from the state-run Small Business Corporation. “That was our first loan and we’re very pleased with the assistance from the SBCorp,” Tina recalls.

“If you have the systems of your franchise model already in place, you shouldn’t have to worry too much,” Edison says. “All you need to do is ensure the quality standards are strictly maintained.”

Having perfected the craft of franchising, Pick & Mix was recently elevated to the Entrepreneur Philippines 2006 Top 29 Franchise and cited for Best Franchising Support for providing superb assistance in training, marketing, pre-opening and operations to franchisees.

“We consider our franchisees as partners in business that is why support is very important in building the foundation of our franchise system which will help us expand our market faster,” Edison adds.

Looking back on this experience, Tina realized that you can look at money being spent as an expense or an investment for the future.

“We want to give our patrons their money’s worth and at the same time, we want to make the business grow to provide for our employees and contribute to uplift our society in the best we can,” she says.

Armed with determination, creativity and faith in their concept, Edison and Tina Mariano are bound to turn all their dreams and aspirations into sweet reality. And for those who believe in their endeavors, success is inevitable.