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  • From student demo slides. This slide should probably be deleted since it duplicates the material in slide 11. Keep or delete or redo?
  • This is from student demo slides. Keep as is or change??

Country manager intro 2.12 Country manager intro 2.12 Presentation Transcript

  • Country Manager The International Marketing Simulation
  • Welcome to Country Manager! CountryManager is an International Marketing simulation focusing on market entry and expansion :
    • You play the role of Toothpaste Category Manager for a major consumer products company about to enter the Latin American market
    • For the next six years, your team will build the “Allsmile” brand in one market and, ultimately, expand into other Latin American markets
    Develop and implement strategies that are attractive to customers in each country and profitable for Allstar Brands
  • The Environment
    • Argentina, Brazil, Chile, Mexico, Peru, Venezuela
    • Each market has unique environmental, buyer, competitive, and distribution characteristics
    • The ultimate goal is to develop a REGIONAL presence in Latin America, doing so through a sequential market entry approach
    Six countries offer viable market potential
  • The Environment 26 154 26 Venezuela 35 165 28 Peru 228 1067 108 Mexico 83 187 16 Chile 455 1,556 188 Brazil 153 518 40 Argentina Toothpaste Retail Sales (Millions US$) GDP (Billions $) Purchasing Power Parity Population (Millions) Country
  • Environment - Competition
    • Starting situation: multiple firms competing in different countries
    • 4 international competitors:
      • B&B healthcare
      • Caremore
      • Driscol
      • Evers
    • Plus… regional and local competitors
    All individuals/teams play in benchmark competition mode and face the same environment
  • Consumers
    • Defined by lifestyle (younger, families, older) and primary need (economy, whitener, health, kids)
    • Consumers differ cross-nationally and by segment in terms of:
      • Toothpaste size, delivery system, and texture preferences
      • Needs they are trying to satisfy with regard to formulation (prevention of cavities, whiter teeth, good taste)
      • Price sensitivity
      • Preferred store / distribution outlet
    • Customers are more likely to purchase a brand that they know, meets their needs, and can find in in their preferred store.
  • The Product - Toothpaste
    • Packaging and formulation variations
      • Sizes: travel, personal, and family
      • Delivery: tube, pump
      • Texture: paste, gel
      • Formulations: basic, whitener, healthy, kids
    • Your firm has 24 different combinations of these available to introduce as unique SKUs.
  • Key Strategic Decisions
    • What Country / Market(s) to Enter?
      • Consumer Segment(s) to Target within countries entered
      • Choice of Distribution Channel(s) within countries entered
    • Where to Source Production?
      • US and/or one Latin American country
  • Market Entry Decisions Issues to consider for “Market Entry/Exit”:
      • Market potential and growth
      • General economic/political outlook
      • Competitive intensity
      • Synergies with other/existing markets
      • Regional Customization vs. Standardization
      • Distribution
      • Cost structures – production/distribution
      • Shipping and tariffs
  • Plant and Production Decisions Issues to consider for plant location and sourcing options:
      • Production will take place in USA until a Latin American plant is opened
      • Only one plant may be built in Latin America
      • One year to build capacity
      • Any production necessary to meet demand in Latin America beyond plant capacity takes place in USA
      • In LA countries other than where you build the plant, you choose US or LA sourcing
      • Local production goes to local market first
  • Plant and Production Examples
      • You have entered Argentina, Chile, and Mexico
      • Based on your decisions, demand in Argentina is 40 million units, demand in Chile is 20 million units, and demand in Mexico is 30 million units
      • You choose to source demand in Argentina and Chile from the plant in Argentina, and Mexico from the US plant
      • Example 1: Your plant is located in Argentina, with 30 million units of productive capacity
      • What Happens?
      • 30 Million units of demand in Argentina will be sourced from the plant in Argentina
      • 10 million units of demand in Argentina will be sourced from US
      • All demand in Chile and Mexico will be also fulfilled from the US plant
  • Plant and Production Examples
      • You have entered Argentina, Chile, and Mexico
      • Based on your decisions, demand in Argentina is 40 million units, demand in Chile is 20 million units, and demand in Mexico is 30 million units
      • You choose to source demand in Argentina and Chile from the plant in Argentina, and Mexico from the US plant
      • Example 1: Your plant is located in Argentina, with 50 million units of productive capacity
      • What Happens?
      • 40 million units of demand in Argentina will be sourced from the plant in Argentina
      • 10 million units of demand in Chile will be sourced from the plant in Argentina
      • The other 10 million units of demand in Chile and all demand in Mexico will be fulfilled from the US plant
  • Which Market to Enter?
    • Your first priority is to determine which of the six countries recommended by the board is the most attractive for Allsmile;
    • The information accessible from the consolidated index menus will allow you to compare the markets according to many important factors, including:
      • political, economic, geographic and social/demographic considerations
      • issues directly related to manufacturing, distribution, marketing and sales in the countries you are considering
      • competition
    Compare market opportunities using the menus in the Consolidated View , described in the student manual and demo.
  • Entering the Market(s)
    • Once you have made the decision to enter new market(s), you will need to decide how to launch your product, including:
      • Selection of SKUs
      • Price of each SKU in local currency
      • Advertising campaigns
      • Selection of channels and channel support
    • The information accessible from the country view index will allow you to:
      • Decide on target markets within a country
      • Recognize competitive positioning and strategy
    Research the options within your selected market using the detailed menus on the Country View , described in the student manual and demo.
  • Things to Keep in Mind
    • Set your regional strategy first
      • Overall strategic framework drives country-level decisions
    • Plan for the long-term
      • Decisions 1-3 = focus on awareness, gaining distribution
      • Decisions 3-5 = build market share
      • Decisions 6+ = now aim to be profitable
    • Recognize regional strategic issues
      • Trade agreements
      • Standardization vs. Customization
    • Don’t forget the basics!
      • 4Ps – Product, Price, Promotion, Place
      • Competition