Transcript CountryManager Simulation Introductory PowerPoint

Country Manager
The International Marketing
Simulation
1
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 Asian market
• For the next ten years, your team will build the
“Allsmile” brand in one market and, ultimately,
expand into other Asian markets
Develop and implement strategies that are attractive
to customers in each country and profitable for Allstar
Brands
2
The Environment
Six countries offer viable market potential
• China, Japan, India, S. Korea, Philippines, Thailand
• Each market has unique environmental, buyer,
competitive, and distribution characteristics
• The ultimate goal is to develop a REGIONAL presence in
Asia, doing so through a sequential market entry
approach
3
The Environment
Country
Population
(Millions)
GDP (Billions $)
Purchasing
Power Parity
Toothpaste
Retail Sales
(Millions $)
China
1,337.0
9,872
2,940.8
Japan
126.4
4,338
1,566.5
India
1,189.0
4,061
1,023.7
48.8
1,459
363.2
101.8
351
437.5
66.7
588
235.3
S. Korea
Philippines
Thailand
Note: Asia Scenario, 2011
4
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
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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 their preferred store.
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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 21 different combinations
of these available to introduce as
unique SKUs. More may become
available in future years.
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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?
• Home and/or one Asian country
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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
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Plant and Production Decisions
Issues to consider for plant location and
sourcing options:
• Production will take place at Home until an
Asian plant is opened
• Only one plant may be built in Asia
• One year to build capacity (500 mill units/yr)
• Any production necessary to meet demand in
Asia beyond plant capacity takes place at Home
• In Asian countries other than where you build
the plant, you choose Home or Asia sourcing
• Local production goes to local market first
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Plant and Production Examples
You have entered China, India, and S. Korea
• Based on your decisions, demand in China is 40
million units, demand in India is 20 million units, and
demand in S. Korea is 30 million units
• You choose to source demand in China and India from
the plant in China, and S. Korea from the Home plant
• Example 1: Your plant is located in China, with 30
million units of productive capacity
What Happens?
• 30 Million units of demand in China will be sourced
from the plant in China
• 10 million units of demand in China will be sourced
from Home
• All demand in India and S. Korea will be also fulfilled
from the Home plant
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Plant and Production Examples
You have entered China, India, and S. Korea
• Based on your decisions, demand in China is 40
million units, demand in India is 20 million units, and
demand in S. Korea is 30 million units
• You choose to source demand in China and India from
the plant in China, and S. Korea from the Home plant
• Example 1: Your plant is located in China, with 50
million units of productive capacity
What Happens?
• 40 million units of demand in China will be sourced
from the plant in China
• 10 million units of demand in India will be sourced
from the plant in China
• The other 10 million units of demand in India and all
demand in S. Korea will be fulfilled from the Home
plant
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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 Environment, Consumers,
and Competition 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 in the simulation reports, as
described further in the student manual and demo.
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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 detail reports will
allow you to:
• Decide on target markets within a country
• Recognize competitive positioning and strategy
Research the options within your selected market by clicking a
Country name link to open detail reports, as described further in
the student manual and demo.
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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
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