Toothpaste Simulation - The Best Free Winning Guide With Helpful Tips to Win the Simulation

Top 10 Winning Tips

Start production in all the 6 countries in round 1-2-3
Check the population of each country to calculate Ads, Promo, Sales force
Check the prices of competitors to set prices, also keep track of production cost to set prices to get higher sales and profit (add 50%-200% of production cost)
Check the language of each country to set ad message, also check to spending for ads of competitors to get ad budget
Apply strong advertising strategy to sell better
Balance between sales force and promotion cost
Again, keep track of population and competitors to set sales force
Check production cost in each country to decide produce domestically or outsourcing
Increase production capacity to lower production cost and meet increasing demands
Check total spending and contribution forecast to adjust strategy

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TOP LINKS FREE GUIDE TO WIN COUNTRY MANAGER SIMULATIONS

CountryManager: Research & Decision-Making

https://www.youtube.com/watch?v=CACYi1Hhe3M

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Country Manager - Getting Started

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Slide - Country Manager Simulation 1

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INTERNATIONAL MARKETING SIMULATION

Country Manager focuses on the issues of international market entry and expansion. In CountryManager, students will learn the importance of targeting consumer segments and how to best position brands for the chosen segments. Students will gain experience in market entry, segmentation and targeting, along with the 4Ps in an international context. Two scenarios are available for different regions: Latin America or Asia.

PLANNING & ANALYSIS
- Use market research effectively
- Create a regional marketing plan
- Monitor implementation of the plan
MARKET ENTRY
- Evaluate country market opportunities
- Identify steps in market entry
- Distinguish standardization/localization
FINANCIAL
- Evaluate plant location in the region
- Exchange rates
- Country and regional contribution statements
MARKET SEGMENTATION
- Define “segment” in marketing terms
- Identify segments in CountryManager
- Match target segments with SKUs
- Advertise to target segments
DISTRIBUTION
- Flow of goods from manufacturer to consumer
- Identify differences among channels
- Effect of MSRP and discounts on retail price
- Choose appropriate mix for channel
TEAMWORK
- Allocate responsibilities fairly
- Complete assigned tasks on time
- Communicate problems and plans
- Collaborate with other team members

tudents take on the role of Country Manager for a multi-national consumer products company , specifically marketing their toothpaste brand in the countries in their region. The domestic market has matured, and the head of the Consumer Healthcare Division of a major consumer products company has identified a region as the best potential source of future growth. By playing the role of a country manager, students will decide how best to enter this potentially lucrative market.

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PART 2

Country Manager Simulation

Executive Summary

Our company, AllStar, decided to enter the Latin American toothpaste market. We selected 5 countries, Brazil, Argentina, Chile, Mexico, and Venezuela, as our target market on the basis of the current market situation, economic indicators and the tariff and shipping cost. Also we decided to build a plant in Brazil, for it is our largest market and has the second lowest tariff and shipping cost.
Summary of performance. Reflection.

Market Analysis

After analysing the economic indicators, demographic data, market situation, and the costs, we selected the top five most attractive markets amongst the Latin American countries to entry in ten years: Mexico, Brazil, Argentina, Chile, and Venezuela.

Market Situation

Manufacturer toothpaste sales are the most important consideration for our company, because they represent the size and the potential of markets. For this reason, we decided to enter Brazil, Mexico, Argentina, and Chile in the first 5 years.

Tariffs and Shipping Costs

In the sixth year, we decided to enter Venezuela, for it has the lowest tariff and shipping cost among the left 3 countries, we had not have a present in.

Production Location

Outsourcing decisions

	Tariff as percent of CIF		Shipping cost per UNIT in $
	Brazil Plant	Chile Plant	Brazil Plant	Chile Plant
Argentina	0.0%	0.0%	0.020	0.020
Brazil		0.0%	0.010	0.020
Chile	0.0%		0.020	0.010
Colombia	12.0%	0.0%	0.020	0.020
Mexico	15.0%	0.0%	0.040	0.030
Peru	12.0%	0.0%	0.020	0.020
Venezuela	0.0%	0.0%	0.020	0.020

In order to reduce the cost of goods sold (COGS), we decided to build a local plant in one of the Latin American countries on the condition that ‘plant location must be efficient to serve identified markets’. All of the products for Latin America markets are sourced from this plant except Mexico. Only the products for Mexico are sourced from home facilities, because Mexico is benefited from NAFTA.

Tariff and Shipping Cost

After comparing the tariff and shipping cost, we decided to build a plant in either Chile or Brazil. Chile has the lowest tariff and shipping cost in exporting to other countries, while Brazil is the largest market, has the highest domestic consumption, and it is the second-best choice regarding the tariff and shipping cost. Considering the accessibility to our largest market, we decided to build our local plant in Brazil.

Strategies for period 1 to 5 – 4P

We set up a guiding principle for 4P marketing strategies. This is generally applied on all of our target markets.

Categories	Policies	Market Information	Decisions
Product	SKUs selection policy	Demographic market survey	Standardization
Price	Pricing policy	Shipping & Tariffs cost, Competition	Customization
Place	Distribution policy	Shopping habits, Sales force and promotion expenditure	Customization
Promotion	Advertising policy	Brand purchased, Advertising expenditure	Semi-Standardization

Product

In the product selection policy, we start with limited SKUs in every selected countries and review performance before introducing more SKUs. According to the regional strategy, AllStar wants to position itself as a family-oriented brand with competitive prices; hence we introduced economy formula in every market we entered. Later we added special SKUs for each market depending on the domestic demand by using cross-sectional analysis to investigate the preferred size, delivery, and texture in every market. For example, we sell White in Mexico, Healthy in Brazil, Kids in Argentina. In the later period, more SKUs have been introduced in each country and by the end of 5th period All Star had a standardized SKUs strategy in every country, therefore we can benefit from economy of scale.

Price

We set competitive prices for ‘Economy’ and ‘Healthy’ because the target customers are relatively high price-sensitive. The price decision is based on the rival products in the same segments; the prices are lower than international brands but higher than local and regional brands to be competitive.

For the ‘White’ products, we set a similar price to our competitors because the target customers are relatively low price-sensitive customers. But we give higher allowances for them to create incentives for the retailers so they are more willing to sell our products.

Since “Kids” toothpaste is a niche product (pump, gel) and we have no competitor, we set premium prices and low allowances for them.

In addition to the above principles, prices of all segments are adjusted every year based on inflation rate and on competitor’s increase.

Place

Our distribution channel decision was made on a country-by-country basis. First of all we recognised the target customers of each formulation, such as “Economy’ for family, “White” for younger people, “Healthy” for family, “Kids” for family, and then we looked at their shopping habits in each country and identified the core distribution channels that target customers spend in their countries.

We consider the number of sales force according to the sales force expenditure of competitors, and then allocated sales force in core distribution channels.

As for the promotion budget, we decided the absolute amount on the basis of competitors’ budgets. The allocation of relative promotion budget in each channel was based on the total channel sales when entering a new market for the first time, and it was based on last year’s sales’ if our products had already sold in that country.

Promotion

When introducing new SKUs in any countries, we used ads to help promote our products and create positive brand image and act as the ‘pull strategy’.

First, we considered the advertising budget by comparing with competitors in the country, and we adapted existing advertising campaigns if available, but chose to adapt them to local culture and language. We saved the costs of creating new ads and benefited from cross-national image consistency through this way.

Specifically target audience and benefit message of campaigns are as mentioned in distribution strategy.

We did the advertising for every segment and allocated advertising budget proportionately to the consumer’s demand for each formulation, and updated the ads every 1 or 2 years to refresh the content and maintain brand awareness.

Result after 5th period

We earned a significant success after 5 years Allstar had a presence in Latin America. Allstar became the market leaders in 3 of the countries we had entered: Mexico, Brazil, and Argentina. The only country we did not achieve such a success was Chile, which we entered in the 5th period.

After 5th period, our cumulative return on marketing is 121.1% and the brand equity is 78. Country Manager Simulation 1

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PART 3

Country Manager Strategy

Period 1

Market Entry- Simultaneously enter the Mexico and Brazil market. The logic behind this strategy is to enter the largest markets first. Mexico is close to our home market and thus is a logical first step for a new market. Shipping costs to Mexico are low and because of the NAFTA agreement there are no tariffs. However, we also will enter Brazil, which is the market we identified to be the most cost-effective country for building a plant when factoring in physical location, production and shipping costs, tariffs as well as being a major market. Furthermore, both Markets have a high GDP per capita.

Distribution- In both Brazil, we will distribute through all 5 channels (traditional, self serve, hypermarket, web and whole.), which we believe will be both cost effective and more efficient. We will promote only in the former two channels.

In Mexico we also believe it will be most efficient to distribute in all possible channels: Promotion budget (of 14 million MXN) will be used for traditional and hypermarket channels.

SKUs & Pricing- In Mexico we intend on introducing 3 SKUs (EMTP, WMTP, HMTP), all priced above the local average but below the average pricing of international brands. They will be priced (in MXN) at 15.99 (1%), 21.99 (2%), 22.99 (1.5%), respectively.

In Brazil we also plan to introduce 3 SKUs (EMTP, WMTP, WLTP). We will apply the same pricing strategy as in Mexico. They will be priced (in BRL) at 2.79 (2.5%), 3.39 (2%), 3.99 (3%), respectively.

Advertising- In Mexico we will target families with Spanish ads that feature the white toothpaste line. For Year 1 we will allocate a budget of 22 million MXN.

In Brazil we will target families with two separate campaigns. They will be Portuguese language ads featuring the economy and healthy toothpaste lines with a budget of 4 million BRL each, respectively.

Plant- We have identified Brazil to be the most cost-effective and strategic location for our plant, being also in one of our key markets. For the first year we will have an initial capacity of 45 million units.

Period 2

Market Entry- Enter the Argentinian market. Argentina is another large market, which we believe has potential and is ideally situated next to Brazil with no tariffs (thanks to MERCOSUR), which allows for lower COGS.

Distribution- In both Brazil, we will maintain the number of sales people in the existing channels. For Mexico we will stop distributing in the self-service and web channels. In Argentina we will distribute in all channels and adjust accordingly in the next period.

SKUs & Pricing- For both Mexico and Brazil we will slightly increase our prices based on inflation and keep our allowance levels steady. However, for the Large white toothpaste in Brazil we will keep the price the same but reduce the allowance by 1%. By doing this we want to see if this SKU will become more attractive to Brazilian consumers.

For Argentina we will similarly introduce 3 SKUs (EMTP, WMTP and HMTP), with a similar pricing strategy as in the previous two markets. They will be priced (in AGP) 7.59 (1%), 8.89 (1%), 8.89 (1%), respectively.

In Brazil we also plan to introduce 1 additional SKU (EMTP, WMTP, WLTP, ELTP). We will apply the same pricing strategy as in Mexico. They will be priced (in BRL) at 2.79 (2.5%), 3.39 (2%), 3.99 (3%), 3.59 (2%) respectively.

Advertising- In Mexico we will update the existing ad and add an additional ad featuring the healthy line and target families. The budget will be 4 million and 8 million MXN, respectively.

In Brazil we will remove existing ads and replace with one new ad that targets Families with the economy line. The budget for this will be 6 million BRL.

In Argentina we cut costs by reusing existing ads from Mexico, because Argentina is also a Spanish speaking country. These ads will target young people with the white line and families with the healthy line. Budget will be 4 and 8 million, respectively.

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Monday, July 25, 2022

Country Manager Simulation Guide (Interpretive)

Toothpaste Simulation - The Best Free Winning Guide With Helpful Tips to Win the Simulation

Country Manager Simulation

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