famobil
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famobil
SUMMARY 1 www.famosagroup.com Message from the CEO Letter from the CEO, José de la Gándara 2 Safety All accidents can be prevented World Day for Safety and Health at Work 4 Quality Interview with José Miguel Sanjuán Interview with Evelio Guill Beltrán 7 CSR We are working on our first corporate social responsibility plan 8 Product FAMOSA ends 2012 as leader in mini dolls with Pinypon and Barriguitas topping the rankings 2012 ends successfully for Nancy, market share growth and outperformance vs. Barbie Nancy and her fun 'girls' day out' Pinypon at the cutting edge with its new microsite. More Pinypon fun online! Our brands continue to win over new Facebook fans Building with FAMOSA's FamoClick FAMOSA makes its mark in the US Russia's little girls flock to Nancy 10 The move New facility in Alicante up and running 11 FAMOSA in Mexico 170 days accident-free This issue's special guest is.... Freddy Martínez 19 Production Department Interview with Salu Blanes 21 People Interview with Marisa Francés Letter from the CEO Letter from the CEO José de la Gándara A few months ago, FAMOSA started work on a corporate social responsibility (CSR) program on which we report in detail in this edition of Oh! FAMOSA. tactical and the company goes about its business in line with these principles, consumers, customers, employees, suppliers and society in general will view the organisation as a responsible, credible, committed and trustworthy business, which will significantly enhance its image in their Corporate social responsibility goes beyond legal eyes and increase these stakeholders' inclination to engage compliance, which marks the minimum common with it. However the benefits do not stop there as astute denominator. The CSR management concept encompasses execution of a well-designed a set of business practices, CSR strategy should pave the strategies and management way, medium term, for a series of systems designed to deliver a new higher-quality products and equilibrium between the Our CSR program is vital services that are more closely economic, social and aligned with what customers are environmental dimensions. because today's consumers looking for, along with higher are demanding increasingly margins and more sustainable Far from being a fleeting profitability. management trend, the growing responsible, committed and years of experience are making CRS solvent companies One of the first decisions taken an increasingly important element by FAMOSA in this arena has been of business survival. Better still, for from the social, to sign up to the United Nation's companies capable of building it Global Compact, created to into their management models as a environmental and spark dialogue between business key driver, CSR can deliver growth. financial standpoints. . and society on the basis of 10 principles related mainly to Our CSR program is vital because human and labour rights, the today's consumers are demanding environment increasingly responsible, and the fight against corruption. I would committed and solvent companies from the social, urge you all to take a look at the Global environmental and financial standpoints. CSR takes on a Compact's website (http:// particular sensitivity and significance in our sector due to the www.unglobalcompact.org/) to see company's impact on children. This is apparent in for yourselves the impact that increasingly stringent requirements in terms of product initiatives of this kind can safety and quality, environmental performance, human have on our company's rights in general and labour rights in particular. future. It is also crucial because all of the stakeholders orbiting around our company, from our employees to the unions, shareholders, media, government, etc., are demanding more and more commitment and responsibility from it. Many of the initiatives pursued in the past were already headed in this direction: safety programs, career development, environmental protection plans, ICTI certification and our sponsorship of children's charities. Our goal is to have all of these initiatives, and many more, form part of our CSR program, which is designed to inject coherency and unity of action into everything we do on this front in order to yield better results for FAMOSA and, logically, society. In the months to come we will deploy actions and initiatives under the umbrella of this program that will affect all of the company's areas and professionals to a greater or lesser degree. A strategic CSR commitment, as opposed to a hollow communication or tactical ploy, brings a series of important benefits in terms of boosting business performance. The biggest advantage is that if the rollout of the CSR commitment is strategic and not 1 2 Safety famosa Workplace safety is a right and an obligation Last month, our CEO, José de la Gándara, participated in the Rural Leader Development Program 2007/2013 organised by Adesho, a non-profit organisation whose aim is to promote economic, social, cultural and environmental development in the town of Hoya de Huesca. the company's core tenets as well as an employee right. Above all, he said, it is one of the most powerful tools for reinforcing organisational leadership, managing change and achieving excellence. During his speech, De la Gándara stressed the fact that safety measures were just as important in companies as in the mountains. Against this backdrop, he gave some alarming figures: two people die every day in Spain due to workplace accidents, 30% more than the European average , adding that the average cost of time missed due to workplace injuries is 2,500 a month . He drew a comparison between corporate safety and mountain safety by suggesting that the risks entailed by both activities are very similar (risk environments, targets to be achieved, social and financial pressure), albeit insisting that safety is good business as it implies cost savings, legal compliance and profit generation. Lastly, De la Gándara underscored a message of vital importance in both the corporate arena and mountain environment: All accidents can be prevented. His key message was to remind his listeners that safety is one of José de la Gándara speech. CEO of FAMOSA World Day for Safety and Health at Work 28 April marked World Day for Safety and Health at Work. This year's event focused on the prevention of occupational diseases. The inadequate prevention of occupational diseases has profound negative effects not only on workers and their families but also on society at large due to the tremendous costs that it generates; particularly, in terms of loss of productivity and burdening of social security systems. Prevention is more effective and less costly than treatment and rehabilitation. All countries can take concrete steps now to improve their capacity for preventing occupational diseases. The event also sought to highlight the importance of a team effort to create a safe and healthy work environment. Working together for risk prevention" is not just a slogan because when it comes to preventing work-related injuries, working together is much more than a good intention: it is a prerequisite for a functioning prevention effort. The European Agency for Safety and Health at Work also launched one of the day's key messages: workplace health and safety makes good business sense. However, this should not conceal the fact that ultimately it is the injured or sick employee who pays the highest price for work-related accidents and occupational diseases. Safety The importance of good posture In March the company provided four ergonomics training sessions ( Back pain workshop ) targeted at all employees involved in administrative work with continual use of screens at the work centre in Las Atalayas, Alicante. The course was given by professionals from Grupo SAF and lasted four hours, sufficient time to allow for theory and for putting the theory into practice, providing employees with guidelines for preventing work-related back problems. These courses will also be given in Madrid (in June and September) so that all administrative staff in Spain will benefit from this expertise Panels will be set up in all sections of the company on which boxes will be placed with suggestion forms that can be taken by any employee. Once this form is filled out, it must be placed in the suggestion box where your managers will check that it has been correctly filled out. A copy will then be sent to the submitting employee and to Agustín Álvarez, who will bring it before the internal committee. This committee will meet four times a year between September and August. The ideas submitted will be evaluated along as series of parameters such as applicability, viability, savings and safety implications. The top three ideas and others deemed worthy of merit will receive prizes (details of the prizes to come later). Rollout of new systems at FAMOSA The workplace health and safety department is taking the steps needed to certify FAMOSA under OHSAS 18001: 2007 for occupational health and safety management systems. We need your help In collaboration with the factory engineering department, Famosa is coordinating the deployment of a continual improvement system as part of the lean management project being pursued in the manufacturing division; the idea is to encourage FAMOSA employees to generate ideas with scope for application in one of the company's three core strategic policy areas: quality management, environmental protection and workplace health and safety. Ideally the suggested projects should be viable and impact as many employees as possible, and not only their narrowly defined jobs but also their teams and the related processes. The goal is to get all FAMOSA employees to engage proactively in the search for continual improvement at the company. This standard mirrors and certifies the attainment of excellence in terms of control of occupational health and safety risks, control of health and safety performance and continual improvement of workplace safety practices. It is more stringent than prevailing legislation and is an expression of growing concern by stakeholders regarding workplace safety matters. The goal of occupational health and safety management system certifications such as this is to provide organisations with the framework for an effective system that can be integrated with other management systems and requirements. To be efficient such systems need to be developed as part of a structured management system that is integrated within the organisation 3 4 Quality famosa FAMOSA environmentally committed FAMOSA is sensitive to environmental issues, which is why, true to our business philosophy, we have assumed an environmental commitment. The various systems implemented recently are tangible evidence of this pledge: the environmental management system (EMS), the quality management system (ISO 9001:2008) and the occupational health and safety system (OHSAS 18001:2007). The EMS has the power to deliver numerous internal and external benefits including energy and resource savings, an enhanced external image, lower costs, higher customer confidence, better internal communication and higherquality processes, among others. In the months to come AENOR will certify the implementation environmental management certification by AENOR José Miguel Sanjuán Environmental expert José Miguel began his career at FAMOSA when he was just 14 years old. Thanks to his commitment and motivation, he is currently responsible for the company's workplace safety and environmental policies. His relationships with his peers can only be described as exceptional and he enjoys organising team projects Tell us about your extensive trajectory at the company... I started out in the kitchen at 14. Later I worked in the electronics department where I made the dolls' voice circuits. From there I went on to work in the repair area where I was promoted several times and was named manager at 19. Next I headed up the mechanical doll assembly section. After that job, I was appointed Safety and Environmental Manager, a job I continue to perform today. of the EMS in our facilities, which is why your efforts and help are vital to guaranteeing the optimal effectiveness of the firm's environmental initiatives. Quality I gather you travelled extensively for a time. Tell us about that phase of your career at FAMOSA. I travelled constantly for years. On one of my trips to Ecuador, I was held in customs and two local policemen went through my luggage. They took my magazines and began to sniff them. Used to the Spanish police force's sniffer dogs, I asked the policemen why they were doing it, telling them that in Spain they trained dogs to do this work. Very angry they told me that in Ecuador they were the once who were trained for this purpose. I had to shut up at that point as things were looking a little grim (they confiscated by antacid tablets), although in the end everything turned out alright. I gather you found the time to organise games and team lunches with your colleagues The games took place after work and during the weekends, the idea being to foster relations between colleagues who wouldn't cross paths for months as they were working different shifts. We played card, billiards and clay pigeon shooting, held board game competitions and took 25km hikes. These events would finish up with what we called our fraternity meal and a prize ceremony. Your best and worst memories? The best is when I was promoted to manager. The worst: when I saw FAMOSA's warehouses in Onil empty. What do you like most about FAMOSA? And least? What I like most are my colleagues and the company's growth ambitions. What I like the least is the fact that we have lost the dream that FAMOSA was something that belonged to us and that our children would follow in our footsteps. Which of FAMOSA's values do you identify most closely with? With everything that is being done to manage workplace health and safety risks and the firm's environmental commitment. What do you think about the company's entry into new markets such as the US and Russia? I think it's great, the more growth the better. We improve day after day by striving for customer satisfaction Thanks to the efforts of all of FAMOSA's departments, we have made progress on implementation of the quality management system under the ISO9001 standard. Our goal is to achieve this certification in Spain this year and to extend it to other markets and subsidiaries next year. This system mirrors management's commitment to guaranteeing customer satisfaction, to continual product improvement and to working under an ISO-inspired quality management framework. The system will help us to classify our processes and interfaces with other departments and will provide a broader vision of how processes are performed in other areas. Our obligations: • If your area has procedures that are included in the quality management system, you need to read and be familiar with the procedure and instructions as they apply to you and with the overall quality management policy. • Ensure that we are doing what we say we will. • Document compliance with quality management requirements by means of the registers defined for each procedure. • If you participate in an audit, provide the auditor with responses that are consistent with the procedure/instructions. 5 6 Quality famosa Evelio Guill Beltrán Quality Control, laboratory head The day will come that Evelio celebrates his golden anniversary at FAMOSA as he has been with the company since 1967, arriving when it celebrated its 10th anniversary. Having held several different positions, Evelio is currently in charge of the quality control laboratory. Evelio, 46 years at FAMOSA. A long time, wouldn't you say? Indeed. Time passes by very quickly. We barely notice its passage, especially when we are young. Later on one starts to value time far more, perhaps because one begins to realise that it is running out. Provide us with a brief overview of your time at the company. I started to work at the company at 14. Back then we worked at the various centres the company had all over the town. Two years later we moved into the new warehouse at San Antonio 8, where I was in charge of the machines that put the dolls eyes in. Later I was responsible for the machines that put in and combed the dolls' hair. In 1985 I was moved to quality control where I continue to work, specifically running the lab. What is the best memory you will take with you from the company? Above all the teamwork. Although sometimes challenging, it is the best way to translate everyone's efforts into something viable and productive. In fact, I believe that relationships and coordination between the various departments should be boosted. How has the company changed since you joined it? Different times and different approaches. We have gone from being a company with owners that had built everything from scratch, with small workshops, some of which even located in their homes (making them innate manufacturers), to one with international ambitions, managers with varying backgrounds and owners that are financial in orientation. Which of FAMOSA's values do you identify most closely with? The relationship between the company and its employees. Even though we might not agree with many of the decisions taken by the company, we have the option to discuss and debate them. I also identify with the company's commitment to legal compliance with product, labour and fiscal laws. What do you think of FAMOSA's new facilities close to Alicante? I can't really say as I honestly don't know them. I've only been there once. Are today's toys good quality or were they better in the past? Today's toys are different. In the past toys were more elaborate and more carefully finished as they were made onsite by people with a lot of experience in toy making. Nowadays toys have to meet many more requirements in terms of chemical components and safe finishings. What toy would you take with you as a company souvenir? Without a shadow of a doubt Pipo Gestitos, a mechanical doll that made gestures as he spoke. I was very involved in designing its entire mechanism. It was the first doll to be partially manufactured in China; the heads were put on and the dolls were finished here at FAMOSA. Please add whatever you like in this section I would like to underscore the importance of the quality and safety of our products as these traits, coupled with continual innovation, are the essentials that set us apart from the rest of our competitors. Nowadays, thanks to the entry into play of low cost producers, it is possible to place a large number of articles on the market without the need for direct manpower or installations. CSR CSR is genuine when it materialises in initiatives by and for a company's stakeholders In the past few years we have shared major changes as a company. One of the most profound changes is our involvement over the last few months in developing our first corporate social responsibility (CSR) plan. As a starting point, I think it is important to explain the meaning of this term, which no doubt rings a bell for many of you. Here at FAMOSA we understand corporate social responsibility as the voluntary integration of prevailing social, environmental and economic concerns and issues into the strategic activity that defines us as an organisation, in continual dialogue with all the stakeholders that comprise it. Taking this approach, FAMOSA is making a special effort to get closer to its people and, above all, to integrate the corporate citizenship concept into our daily operations on a strategic and cross-departmental basis. mission and values, integrating these principles throughout the value chain. • To identify how specifically FAMOSA creates value for society, its stakeholders and its people. • To highlight the development opportunities and possibilities within FAMOSA's reach that have the power to contribute proactively to fulfilling the promise to give back to society what it has given to us. The drafting of FAMOSA's CSR plan is framed by the need to reorganise and refocus initiatives that are already being carried out (such as donations to charity, workplace health and safety measures and the code of conduct) while advancing on the creation and development of new proposals for contributing to the progress and growth of all of us that make up FAMOSA. The real CSR dimension at FAMOSA • To champion and defend the responsible company model strategically enshrined strategically in the Group's vision, Defining stakeholders We have used consultation tools (questionnaires, panels, interviews, etc.) to communicate with our stakeholders, understand their expectations and needs and draw up an initial stakeholder map that going forward will serve as a reminder of the dialogue pledge that binds us: integration of the core tenet that FAMOSA assumes a responsibility that gives rise to specific obligations relative to different groups or audiences that have legitimate relative interests. The steps taken to date will set the foundations for future initiatives and programs in which we hope you will personally engage and which comprise FAMOSA's first CSR Action Plan. We are aware that CSR is a real competitive advantage for companies that know how to put it into practice and that doing so is only possible if the strategy and commitment are genuine and materialise in initiatives forged by and for its stakeholders. 7 8 Product famosa FAMOSA ends 2012 as leader in mini dolls with Pinypon and Barriguitas topping the rankings In 2012 FAMOSA achieved outright leadership of the mini doll product category. Pinypon topped the charts with a market share of 32.7%, while Barriguitas ranked second, commanding 21.9% of the overall market. The Pinypon House in the Snow was the best-selling playset during the 2012 Christmas sales campaign. And Pinypon continues to rank #1, garnering a market share of 34.9% in April, up 2.8 percentage points from March 2013. Pinypon's House in the Snow 2012 ends successfully for Nancy, market share growth and outperformance vs. Barbie Despite being a challenging year due to the economic situation and the Monster High craze, Nancy posted growth of 4% in sellout sales (sales to end consumers), outperforming Barbie for the first time in its history. This positive trend has continued yearto-date; indeed, according to the latest NPD panel data, Nancy sales are up 20% to April, while Barbie is down 31%. Moreover, there are initial signs that the Monster High phenomenon is beginning to falter, with sales down 15% year-to-date. 2013 is shaping up to be a record year for Nancy: judging by all the new products licensed, it could well end up within the top three in the toy market. Nancy and her fun 'girls' day out' Nancy ran an event dubbed 'Girls' day out' in April and May in collaboration with Spanish hairdresser chain Llongueras. The idea was to give mums and daughters some quality time together, along with a Nancy doll at a very attractive price. Moreover, one Nancy Hairstyle Briefcase was raffled off every day of the promotion of on the campaign's dedicated microsite http://plandechicas.nancyFAMOSA.es. This original initiative was marketed in Llongueras hair salons, in the online media and on the social networks, where it generated significant buzz, both in the Nancy and the Llongueras profiles. Pinypon at the cutting edge with its new microsite. More Pinypon fun online! In June Pinypon rolled out a new microsite to support its star summer product launch, the Pinypon water park http://www.parquesdivertidospinypon.es. The microsite is a very comprehensive and fun online space filled with competitions, promotions and information on the brand that makes girls' favourite mini dolls. The launch is being supplemented by a joint promotion with Parques Reunidos (the leading leisure park operator in Spain). For every Pinypon water park purchased, buyers will receive one free children's ticket for one of its leisure parks (Aquopolis, the Warner theme park or the Madrid amusement park). A world full of fun! Our brands continue to win over new Facebook fans The number of fans of our brands on the world's biggest social network, Facebook, continues to grow month after month. The number of fans rose in all of the group's profiles in 2012 thanks to growing brand recognition and the specific competitions and campaigns carried out within the various profiles with a view to boosting their fan bases. Fan numbers continue to swell in 2013. Nancy ended 2012 with 18,000 fans (growth of 18%), Pinypon with 17,000 (+4%), Barriguitas with 13,000 (+13%), Feber with 7,000 (+2%) and Nenuco, 6,800 (+12%). We continue to register new fans and to share brand experiences and information with our followers. Product Building with FAMOSA's FamoClick Our construction toy brand Famoclick was launched in March with two novel product lines: Animals in Action and Monster vs. Zombies. The toys are developed around popular themes such as wild animals in danger and the sinister world of zombies. This product launch is being backed by a substantial marketing campaign: two television campaigns in the spring that delivered encouraging sales results, with another two planned for the summer. The campaign is being accompanied by a special launch pack. The plan is to expand the FamoClick brand further in 2013 with the launch of a bug-based line of construction products planned for Christmas. We will keep you up to date on developments and encourage you to try these new toys out. FAMOSA makes its mark in the US The Ferrari F430 made a recent appearance on a television show in Dallas, Texas. The show was dedicated to toys and mentioned the Ferrari F430 as one of the best toys for the spring. Moreover, thetoyinsider.com, a prestigious website used by numerous families to view toy reviews, has included the Happy Caterpillar Tunnel on its list of top toys for the spring/summer season. This website rates toys that have to power to make children get up from the sofa and TV and drive them outdoors to play. The Play Advances Language (PAL) prizes awarded in the US recognise toys, games and books whose design, content, quality and character promote language development in children. Famosal's My Little Nenuco Travel With Me and Pinypon Fairies received prizes in this year's edition based on their promotion of languagebased fun and creative play. Russia's little girls flock to Nancy In March Nancy won the Gold Bear Best Toy of 2012 prize in Russia with Nancy Protect Animals. This means that Nancy has taken this prize for two years in a row, reinforcing Nancy's brand positioning in this fastgrowing toy market, particularly among 3-6 year olds. Nancy is one of the best-selling doll brands in Russia, boasting one of the highest brand recognition levels among young Russian girls. One of the requirements judged when awarding this prize is the ability to 'play with it'. The nominated toys/products are given to children aged between 5 and 14 for testing for 10 days in Moscow's main shopping centres. During this test period, the children and their parents test the various products and vote for their favourites. To promote the doll and its packaging, we are going to include the Gold Bear logo on the prize-winning doll's packaging. Congratulations! Nancy Protect Animals 9 10 The move famosa New facility in Alicante up and running The new factory in Alicante, which is up and running, will reaching cruising speed this summer, once we move the R&D teams in. As you know, we began to move the equipment at the beginning of 2012 and by January we had the machines in operation. According FAMOSA's head of operations, Antonio Quereda: We moved quickly because our priority was to safeguard the spring/summer campaign. The company's most important segments include ride-ons and outdoor playhouses, precisely the products we used to make in Foia de Castalla and now make in Alicante . We have invested 2 million to kit out the new facilities and the result is 28 new injection and blow injection machines, four assembly chains and a modern and innovative factory layout. Delivering on our word But not everything is new as our business philosophy and policy remain unchanged and we have kept our workforce and supplier base intact. As a result, we will move over 300 employees to the new factory. More than 200 people are already working in Alicante including the staff from the finance administration, purchasing, logistics and HR departments, as well as a warehouse for immediate dispatch of the products coming out of the factory. The move will be completed in the summer when the research, design and development teams move in, along with the three pieces of equipment that are still operating at the Ibi factory. Lastly, Quereda notes that the new working conditions are better than those at the old factory in Foia: Our 22,000m2 surface area is smaller than what we had before but the layout is better, providing more functional, efficient and profitable use of resources and better working conditions . FAMOSA in Mexico How time flies financial year! we are already getting ready for a new A year of dizzying change in Mexico and Puerto Rico, but also a year for consolidating our organisational structure. What's the news? Perhaps the most important development, and the one we are most proud of, is the fact that we are 170 days accident-free at the time of writing this article. And by the time this newsletter reaches your hands, six months will have passed without injury, putting us very close to the 200day mark. The huge effort being championed by management on the workplace health and safety front is evident wherever you turn at the Monterrey factory. This is a joint effort and when we reached our first 100 days free of injuries in our short history we celebrated it with the factory workers. In order to keep our targets ever present, we all signed the commemorative banner. The next milestone: 365 days accident-free. Mexico celebrated Children's Day in April. As a toy company we can hardly pass that celebration up! We organised two events to mark the day. Firstly, a drawing competition for employees' children. The theme was simple: draw what your mum or dad does at the factory. We received 34 drawings, a very high participation rate. The other major event was a party organised for our employees' children. We gave the children free reign with our ride-ons, playhouses, activity centres, etc. They spent a memorable day. We relied on the factory workers to explain each of their duties at the factory. Everyone enjoyed the morning, children and adults alike. The children were given a toy as a going-home present. Drawing contest At the production levels, we are in possession of the moulds for Four in a Row, the Pirate Ship, the flip-flap table, the ghost picnic table and Feber Runny, with more on the way. We are very pleased with our growth although we remain cautious. We have thrown ourselves into the quality management program which is being overseen in Spain. The Inventory Turnover project being carried out since March is vital to controlling this process. Later in this section Adriana Torres tells us about the Anabella launch as part of the campaign in Mexico against discrimination in which we are participating and Juan Mora tells us all about the strategic decision taken on the logistics front: the opening of a new distribution centre in Mexico City. Drawing contest I'm sure many of you will travel to Mexico this summer. Please let us know and come to visit us. We'll try not to be offended if you don't come to Monterrey: we know well that Cancun and Acapulco hold a greater appeal than a factory visit! From Mexico City, Puerto Rico and Monterrey, our warmest regards to everyone. As always, please get in touch with anything I can be of help with. Juan S. Bonet Americas Director of Finance and HR. jbonet@famosa.es Juan S. Bonet, Americas Director of Finance and HR 11 12 FAMOSA in Mexico famosa Interview with ... Freddy Martínez Director of Sales in Mexico Up close and personal ¿SOP o SAP? Given the choice, neither ;-). No, seriously, SOP. These are everyday tools that are vital for controlling the various countries' needs. An actress to accompany you on a weekend escape? In Mexico, I am a big fan of Lucero, and in Spain, Penélope Cruz, more appropriate for my age ;-) Where would you like to drink your next whiskey? I don't mind where but with my great friends at FAMOSA who are already like family to me. Out of curiosity, have you ever been robbed? I have never been robbed directly but as good as. Once I paid for merchandise which when it arrived fell totally short of expectations and was very disappointing. I felt totally cheated; it was a lot of money, around 5 thousand Mexican pesos or 295. That's why I always advise people to look closely at the goods they plan to buy before paying for them We are getting ready for year-end and who better the star in this edition of the newsletter than our sales head. Freddy had the good fortune to be born in Chiapas, possibly one of Mexico's most beautiful states. He later moved to Mexico City to work in sales jobs. Freddy, tell us more about your prior sales experience and the firms you worked in. I have been working in sales for over 21 years, 20 of which at Hasbro, the world's number two toy maker. I held several positions there, from invoice analyst to key account national manager. However, the most cherished experience was the field work, having spent four years as salesman, getting to know how our key customer accounts worked. These key accounts included the self-service stores, department stores, specialist stores and wholesalers, providing me with broad vision of the Mexican market. How did you perceive FAMOSA Mexico when you worked for the competition? Tell the truth now ;-) I was familiar with FAMOSA's brands, as Hasbro at one point distributed FAMOSA's products in Mexico. The brand I knew best was Nenuco, the most important and recognised brand in the Mexican market. Before Hasbro, Mattel was FAMOSA's distributor. When these two competitors saw the potential implicit in this segment they created their own products, Little Mommy and Baby Alive, respectively. The only thing I would add is that while FAMOSA was getting organised to establish a direct presence it lost almost two years during which it was seen as weak competition. FAMOSA in Mexico Stick your neck out a little: what growth prospects do you see for the toy sector in general and for FAMOSA in particular. What would you need to deliver growth of, say, 25% per annum for the next five years? Had you worked for a Spanish firm before? How are your daily dealings with Spain? The Mexican toy market is contracting, more notably in recent years. The sector has suffered in terms of delivering significant growth. Due to the time difference, the main form of communication is e-mail, although there are procedures and deadlines in place worldwide which must be followed for sales and operations planning purposes. We have a monthly meeting to go over the numbers. I believe there should be a sales meeting at least once a year. To deliver continual growth we would have to enter new product lines No. I had never worked for a Spanish company. How are we currently positioned vis-à-vis our direct competitors? We (FAMOSA) have posted significant growth. However to deliver consistent growth of 25% for the next five years we would have to enter new lines, mainly boys toys: we have no presence in this segment and the fastest growing category in Mexico is construction toys. Our competitors are beginning to see us as a dangerous rival in the past year, at least in the mini doll category with PinyPon, Feber (ride-ons and outdoor toys) and, most notably, in the large doll category in which Nenuco has been gradually gaining territory. A message for the rest of the FAMOSA family around the world We know these are difficult times and that we face real challenges. However behind every problem there is always an opportunity. I am confident that FAMOSA has the right people in each department and division to achieve the milestones and objectives we have set for ourselves around the world. Freddy Martínez, Director of Sales in Mexico 13 14 FAMOSA in Mexico famosa We introduce you to ... Anabell Mejía For this newsletter we have travelled to Mexico City to introduce you to Anabell. Born in the city (which makes her a thoroughbred chilanga), Anabell is very committed to her job and indeed everything you ask of her. She is mad about her 9-year old son. Family is very important to her and she loves the cinema. Her strong personality has not prevented her from making many friends and getting along with one and all. She has been working for FAMOSA for four years. She works in sales administration and has always been in charge of collections. During these four years she has seen the company change 100%. She is proud to go to shopping malls and note that shoppers are familiar with FAMOSA, Nenuco and Feber. She thinks the work put into the new offices, the showroom, the 'fabulous' factory in Monterrey and the new warehouse in Mexico City has been well worth the effort. She thinks there is still some fine-tuning to be done and that to be better we need to believe in ourselves more. She is grateful to her Spanish colleagues for their direct dealings and affections. Particularly Lorena, Delia and Alberto, even though they sometimes make her ears ring! And she doesn't want to forget the guys at the Helpdesk. She loves her work.... and Don Pedro brandy with Coca Cola!! Anabella is here to fight squarely for equality and inclusion Famosa's newest doll Anabella was presented to the Mexican media on 30 April. The presentation took place at the Porrúa de Chapultepec book store and was attended by around 40 publications. In 2011, the Mexican council for the prevention of discrimination (CONAPRED) and the 11.11 Social Change Agency launched a video evidencing the prejudices regarding skin colour that are passed on to boys and girls from very young ages. The video made use of two dolls, one with light skin and another with dark skin. The video itself showed how it had been impossible to find a darkskinned doll: the makers had been unable to find a single model in a large number of toy shops and had to paint one instead. See for yourself on Youtube (search for 'Viral Racismo en México'). 19 October is Mexico's Day against Discrimination. It provided us with food for thought and inspired us to develop new ways to prevent and overcome discrimination. To this end, a group of organisations, institutions, universities, media and companies have come together to plan a year of activities (one for every day of the year plus one) to fight discrimination. Anabella: the first doll with Latin American traits FAMOSA, keen to put its weight behind the fight against discrimination, has decided to join the Every day is a day for not discriminating campaign. With the launch of Anabella, the first doll on the market with Latin American traits, Famosa is joining the battle against racism and discrimination. Anabella is designed to represent young Latin American girls' childhood more faithfully. She proves that beauty is not just associated with white skin, blond hair or blue eyes, thereby encouraging acceptance of, respect for and consideration of the diversity of physical traits, particularly those that dominate in this region. She is striking and stands for everything that is against discrimination. She enshrines childhood values. She's fun and adventurous. She loves animals and nature. Anabella and her message will make sure the message of National Day against Discrimination will be remembered every time a young girl sees her and picks her up to play. FAMOSA in Mexico FAMOSA continues its expansion with a distribution centre in Mexico City The decision has been taken to open a new distribution centre in Mexico City in response to the growth plans for Mexico and upon analysis of how to make shipments more efficient and profitable. This measure will also ensure better customer service, cut delivery times and, logically, l o w e r p u rc h a s e a n d delivery transport costs. Juan Mora The new distribution Director de Logística Méjico D.F. centre will be used to fulfil orders covering an area comprising Mexico City, el Bajío and the south and southeast of the country (over 60% of overall business). The target is to save close to 200,000 compared to current costs. The new centre, spread out over a little more than 5,000m2, began to operate on 15 May, initially with seven warehouse operators, one supervisor and the warehouse manager. The operations replicate existing operations at the Monterrey warehouse, applying the same manufacturing safety procedures, rules and policies as apply in all the company's facilities. We hope to enhance our customer service and increase turnover by servicing customers that place small but year-long consistent orders. Mexico celebrates Children's Day Children's Day in Mexico is a very special day for FAMOSA given its calling as a company that creates fun products for the smallest members of our households. Two events were organised to mark the occasion: 1. A drawing competition for our employees' children in which they had to draw their mother or father's job. We received 34 drawings, a very high participation rate. 2. A party for our employees' children during which they were given free reign of our ride-ons, playhouses, play centres, etc. A busy day that the children, each of whom was given a toy as a present, will remember. 15 16 In just one click famosa Antonio Quereda and Antonio Fernández tour the Chinese facilities In early April, Antonio Quereda, COO, and Antonio Fernández, Director of HR, visited the company's facilities in China and Hong Kong. Both met with all the department heads and supervisors. These executives came back with very positive feedback, having taken advantage of the trip to encourage the teams in China and Hong Kong to continue in the same direction, that of drawing up well-defined processes. They also highlighted the team's focus on objectives, intradepartmental cooperation and team work and the progress made in the last year. Our cutting-edge facilities in China The quality control laboratory in Longgang (China) was inaugurated on 28 March. This is an important milestone on our roadmap as it will help us become more familiar with our products and ensure the quality and safety of all the toys we make. The lab will oversee end-to-end quality throughout the production process. Elsewhere, on 8 March Cathy and John organised a major event in Shenzhen. As well as a very enjoyable dinner, all the employees participated in different games: besides a number of raffles, several people were brave enough to sing karaoke and there was even a fashion show. Children's Open Day in the Milan offices Our offices in Milan recently opened their doors to the youngest members of our households for two days. On 8 and 9 April the students of Monza school visited our offices in Italy's fashion capital in a number of shifts. The children had the opportunity to see for themselves how an office works, its various departments and the work performed by each employee to keep everything running smoothly. There was only so much teaching that could be done so the children were also given the chance to put what they had learned into practice and free time to play with all our toys. Human resources Inauguration of FAMOSA's Online University Here at FAMOSA we believe that employee training is very important, that we learn something new every day and that we should never shut ourselves off to learning. As you already know, 'knowledge doesn't take up space'. To this end we have committed to online training and are implementing an e-learning platform with the assistance of CrossKnowledge. Why online training? • It makes course taking more flexible as the training process can be adapted to each person's schedules and pace of learning, without forgetting that the priority is to deliver workplace targets. Participants must approach learning responsibly, i.e. allocating time between work and training sensibly. • Similar content can be taught to the entire group as the platform's content is translated into 12 languages. • The cost of online training is lower than onsite training, which means more courses can be provided to more people. • Our HR professionals can track the program's effectiveness far more exhaustively. The training program for each of you has been defined bearing in mind our strategic and business development priorities, our priority projects and initiatives and the results of skill assessments. Here in the training and career development department we urge you to collaborate with this initiative which we hope you will enjoy. 17 18 Portuguese Department famosa The Portuguese team is making rapid progress The Portuguese team is headed up by Paulo Carvalhinha, who runs a team of 12. The team is very close-knit and displays tremendous dedication to FAMOSA and all its brands. The team is structured as follows: • Sales: 5 professionals • Marketing: 3 professionals • Admin and finance: 3 professionals Over the last four years the results have been good: indeed FAMOSA has positioned itself as the number two player in the sector in terms of annual sales, emerging as the number one player during the Christmas season. The market is highly competitive and the economy is going through tough times. Nevertheless, our Portuguese operation has been posting consistent growth, underpinned by our leading brands in several categories (dolls, ride-ons and outdoor toys). Our Portuguese operation has been posting consistent growth, underpinned by our leading brands in several categories (dolls, ride-ons and outdoor toys). In 2013 FAMOSA Portugal faces the major challenge of tapping the full potential implicit in the Angolan toy market under the framework of the joint venture set up in Luanda. Luis Cabral has been hired as key account manager; his mandate is to develop the customer portfolio in Angola. Production department: repairs and employee store Salu Blanes Head of the Employee Store What do you like best about the employee store and how would you improve it? Salu's career at FAMOSA began in 1977. Having held a number of different positions, she is currently responsible for the Employee Store. She really believes in teamwork and admits that we should always take the customer's side of the story into account. The best things are the prices and the chance to make the most of every last part. In terms of areas for improvement, the store could be a little bigger I think. What do you do at FAMOSA, Salu? Your best and worst memories? I am in charge of the returns and repairs area and my work consists of counting and checking all returned merchandise. Whatever is in perfect repair is authorised for resale and delivered to the logistics platform while defective toys are repaired and sent to the employee store. My fondest memory is when the old Nancy began to be made in Spain again in the original town. This doll was born in FAMOSA and has come back. The sale of FAMOSA is not a happy memory as it created much uncertainty. In then end though everything turned out alright. Any parts that can't be reused are sent to a small storage depot known as customer service and are used to meet end customer enquiries whenever possible. Tell us about your extensive trajectory at the company... I began in the finishing area in 1977 doing a little of everything (dressing, stapling, boxing, etc.) In 1991 I was named assistant manager at which point my main job became that of overseeing the entire production line process. In 2007 I was moved to returns, repairs, aftersales service and store management, which remains by job today. Do you see yourself as a factory worker or as a saleswoman? Both. I don't sell directly to the public but I do service employees and their relatives. What toy would you like to make and what toy would you like to sell? I would like to make cookers with all sorts of utensils, plates, glasses, pans, toy food, etc. And I would like to sell the puzzles that were so popular in my day. Which of FAMOSA's values do you identify most closely with? Teamwork and responsibility. What do you think of FAMOSA's new facilities close to Alicante? They are much better than the facilities in Ibi and Onil although we could do with a bit more space and my commute is longer now. Is the customer always right? Yes, we have to listen to them. 19 20 Production department: repairs and employee store famosa Interview with Doro Esteve Manager for the garden toy assembly line, responsible for transformation and display manufacture. Doro, tell us about your career at FAMOSA Your best and worst memories? In broad brushstrokes, I started work in 1978 in the Famobil section. My first job was to assemble the then-licensed Playmobil figures. PinyPon, created in 1986 and today a classic, began to take off in 1990. I was offered the job of overseeing its production. I didn't bat an eyelid before accepting. I was in charge of that section until 2000 which is when they decided to move production to China. That year I moved to the finishings section for dolls where I stayed until 2007, which is when production of all dolls was definitively discontinued in Onil and moved to China. My best memories date back to the PinyPon era (1990 to 2000) which is when I felt truly useful in the company. My work was structured around an annual program and a weekly production schedule provided by the planning department which I used as the basis for issuing injection, assembly and packaging orders (manual and automated). The worst memory in my case relates the first sale of FAMOSA in 2002. It brought us years of uncertainty and at one point I thought all this would come to an end. Which toy are you fondest of? What does your current job in the finishings section consist of? Since 2007 my job has been as follows: as the manager overseeing the garden toy assembly line my main job is to ensure very reasonable quality standards, try to ensure factory workers are working in the best possible conditions, meet the production schedules and comply with all rules. Transformations are small orders, mainly for export, for which it is not worth issuing manufacturing orders; instead we adapt base products to meet customer demands by changing chargers, labels, etc. Display cases are pieces of furniture made from board or wood that we fill with our products and send to the large department stores and supermarkets with a view to garnering preferential placement on their shop floors. What would you highlight from your career with the company? During the 35 years I have worked at the company I have held a large number of jobs, initially as factory worker and later as manager in charge of various productive sections for the last 23 years. I think I have adapted well to the innovations implemented by the company, earned the trust and confidence of my colleagues and the respect of my bosses. Without question the projector. It was an honour for me to have begun to make it in mid-1994 and to have participating in the making of one million units on 24/10/1999. Which of FAMOSA's values do you identify most closely with? Responsibility, professionalism and satisfaction with a job well done. What do you think of FAMOSA's new facilities close to Alicante? They are clearly better than the factory in Ibi which was very old and was a bit of a maze. But we are suffering from a lack of space. In my opinion the worst thing about the Alicante factory is the 90 minutes of extra commute we have to put in every day which translates into loss of quality of living. People Interview with Marisa Francés Administration Department Marisa, how many years have you been with FAMOSA? Have you always been in the same job? I have spent my whole life at the company, a little over 40 years in the accounting department where I have felt at home, surrounded at all times by my colleagues. Tell us what does your job consists of I perform accounting tasks, mainly relating to the company's internal services and, to a lesser extent, I deal with suppliers to update them on the status of their accounts receivable. Your best and worst memories? I have shared many pleasant moments in my everyday work with my colleagues from whom I have learned a lot. More specifically, I recall a party hosted by the company one year: we were all invited to a lunch which was followed by small sports tournaments (billiards, chess, football, ludo, etc.) The hardest moment for me was when the company changed IT system and we were forced to get up to speed in no time at all, to which end we had to work until all hours and even the odd weekend. How has the company changed since you joined it? What would you highlight from your career with the company? My career has been marked by continuity in the same department albeit adapting to the various changes unfolding at the company over the years, particularly more recently. It has changed hugely. When I started out it was a family-run company in which we all knew each other personally and shared close ties. It was a village company in the best sense of the term as it was involved in every aspect of Onil life, whether sporting, cultural or religious. The company has grown to the point of having branches in far-flung parts of the world, and internal communication has changed significantly as a result. There have also been major changes in my department the accounting department. We have gone from using calculators and typewriters to computers equipped with the AS400 system and, more recently, the leap implied by the new SAP system. Which of FAMOSA's values do you identify most closely with? I value the consideration shown by the company for its people, its flexibility in adapting working hours to cater to individual circumstances and the freedom from interference so long as job targets are consistently met. What do you think of FAMOSA's new facilities close to Alicante? I truly believe that the current location is suitable and readily accessed by dual carriageway. The offices are spacious and filled with natural light. The opportunity to work alongside other departments facilitates communication and makes our work easier. Add whatever you like here I hope that the company doesn't forget its origins and that it remains involved in the region. 21
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