Transcript Chile

Chile Marketing Report
AllSmile
•Ryan Gardner
•Lizzy Smith
•Tom Bredin
Chile
Capitol: Santiago
Population: 16,763,470
Language: Spanish
Government: Representative Democracy
President: Michelle Bachelet
Surface Area: 292,183 sq. mi.
Social Factors
• Low infant mortality rate
• Long life expectancy
-Age 80 (Female)
-Age 73 (Male)
• Stable population growth rate
• Young population
Economy
• Second highest per capita Gross Domestic
Product (GDP) in Latin America
• High GDP growth rate
• Lowest Latin America poverty rate
• Exporting nation
• Member of MERCOSUR
• Currency has strengthened against the dollar
Economic Factors
Population
(Millions)
Population
Growth
GDP Growth Inflation
Rate
Mfr
Sales/Tooth
paste
Argentina
40.3
1.0%
5.2%
5.0%
172.2
Brazil
190.4
1.3%
3.5%
6.0%
491.4
Chile
16.2
0.9%
12.5%
5.3%
112.3
Mexico
108.8
1.2%
5.2%
3.5%
255.2
Peru
28.6
1.4%
4.6%
3.0%
35.6
Venezuela
26.0
1.4%
12.0%
12.0%
28.6
Competition
• Local One has the largest market share
• Regional One has 2nd largest market share
• Britesmile is the only global competitor
Prior to Entry
Economy
Unit Sales
(Mill.)
Britesmile
Local One
Regional
One
White
Healthy
Kids
Total
45.2
8.8
29.6
0.0
0.0%
69.5%
100.0%
0.0%
0.0%
69.8%
0.0%
0.0%
30.5%
0.0%
30.2%
0.0%
83.6
10.5%
62.3% Local One
Regional
27.1% One
•No kids market established
•Low competition in whitening market
Target Market
• Establish a Kid’s variation of Allsmile
• Young/Whitening because only offered in one
market
• Target economy toothpaste market
Products We Plan To Offer
• Young Whitening: Medium, Tube, Paste
• Family/Kids: Medium, Pump, Gel
• Family/Economy: Medium, Tube, Paste
Younger-Whitening
Size:
Delivery:
Texture:
Small
40.0%
Tube
70.0%
Paste
60.0%
Medium
55.0%
Pump
30.0%
Gel
40.0%
Large
5.0%
Family/Kids
Size:
Delivery:
Texture:
Small
30.0%
Tube
25.0%
Paste
10.0%
Medium
35.0%
Pump
75.0%
Gel
90.0%
Large
25.0%
Families-Economy
Size:
Delivery:
Texture:
Small
5.0%
Tube
60.0%
Paste
40.0%
Medium
60.0%
Pump
40.0%
Gel
60.0%
Large
35.0%
Pricing
Approx.
Cost
Reduction
Argentina
Brazil
Chile
Mexico
Peru
Venezuela
9%
13%
11%
19%
26%
28%
•$104 Million (USD) currently being spent on toothpaste in Chile
•Economy paste tube: 700 (Ch $)
•Whitening Tube Paste: 800 (Ch $)
•Kids Pump Gel: 830 (Ch $)
Distribution
Retail
Sales
Traditional Self-Serve
Hyper
Market
(Millions
USD)
Chile
139.7
40.2%
25.9%
•Preferences are evenly distributed
•Target almost all distribution channels
32.1%
Web/
Other
Home
1.8%
% Direct
29.3%
Advertising
• Our ads will be relevant and connect to the
Chilean people.
• Ads for:
-Younger/Whitening
-Families/Economy
-Families/Kids.
• Allsmile currently has ads available for Whitening
and Basic, we can use those to the Chile market.
Plant Decision
Allsmile must build a plant in Chile:
• Central Location
• Exchange Rates
• Shipping Cost
• Labor Costs
• Tariffs
Exchange Rates
USA
Dollar
(USD)
USA
Argentina
Peso
(ARS)
3.1447
Brazil
Real
(BRL)
Chile
Peso
(CLP)
Mexico
Peso
(MXN)
Peru
Sol
(PEN)
Venezuela
Bolivar
(VEB)
2.2936
558.66
11.4943
3.2680
2341.92
0.7294
177.65
3.6552
1.0392
744.73
243.58
5.0115
1.4248
1021.08
0.0206
0.0058
4.19
0.2843
203.75
Argentina
0.3180
Brazil
0.4360
1.3711
Chile
0.0018
0.0056
0.0041
Mexico
0.0870
0.2736
0.1995
48.60
Peru
0.3060
0.9623
0.7018
170.95
3.5172
Venezuela
0.0004
0.0013
0.0010
0.2385
0.0049
716.63
0.0014
Shipping
USA Plant Argentina Brazil
Plant
Plant
Chile
Plant
Mexico
Plant
Peru
Plant
Venezuel
a Plant
Argentina
0.030
0.005
0.010
0.010
0.020
0.010
0.010
Brazil
0.030
0.010
0.005
0.010
0.020
0.010
0.010
Chile
0.030
0.010
0.010
0.005
0.015
0.010
0.010
Mexico
0.010
0.020
0.020
0.015
0.005
0.010
0.010
Peru
0.030
0.010
0.010
0.010
0.015
0.005
0.010
Venezuela
0.030
0.015
0.010
0.010
0.010
0.010
0.005
Tariffs
• MERCOSUR
– Argentina
– Brazil
– Chile
• FREE TRADE AGREEMENT WITH U.S.A
• FREE TRADE AGREEMENT WITH CHINA
Toothpaste Sales (Last 6 Years)
Country
5 Years
Ago
4 Years
Ago
3 Years
Ago
2 Years
Ago
Previous Current
Year
Year
Sales
Per
Capita
(USD)
Arghenti
na
122
130
135
132
142
152.6
3.82
Brazil
385
395
390
410
423
454.6
2.42
Chile
59
65
69
78
78
83.1
5.16
Mexico
135
150
175
189
209
228.1
2.12
Peru
23
25
26
28
31
35.1
1.24
Venezue
ala
23
25
27
22
23
26.3
1.02
Why Chile?
•
•
•
•
•
•
Transportation Infrastructure
Distribution System
Economic Infrastructure
Low Cost of Labor
Centrally Located
Steady Signs of Growth