Transcript MarketShare Presentation - Southern Methodist University

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 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
2
The Environment
Six countries offer viable market potential
• 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
3
The Environment
Country
Population
(Millions)
GDP (Billions $)
Purchasing
Power Parity
Toothpaste
Retail Sales
(Millions US$)
Argentina
40
518
153
Brazil
188
1,556
455
Chile
16
187
83
108
1067
228
Peru
28
165
35
Venezuela
26
154
26
Mexico
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
5
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.
6
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.
7
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
8
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
9
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
10
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
11
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
12
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.
13
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.
14
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
15