CountryManagerPresen tation1

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Information about CountryManagerPresen tation1

Published on March 28, 2008

Author: Tomasina


Country Manager:  Country Manager The International Marketing Simulation Welcome to Country Manager:  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 ten years, your team will build the “Allsmile” brand in one market and, ultimately, expand into other Latin American markets The Environment:  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:  The Environment Environment - Competition:  Environment - Competition Starting situation: multiple firms competing in different countries 4 international competitors: B&B healthcare Caremore Driscol Evers Plus… regional and local competitors Consumers:  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 and can find in their preferred store. The Product - Toothpaste:  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:  Key Strategic Decisions What Country / Market(s) to Enter Where to Source Production Consumer Segment(s) to Target Choice of Distribution Channel(s) Market Entry Decisions:  Market Entry Decisions Issues to consider for “Market Entry/Exit”: Market potential and growth Synergies with other/existing markets Regional Customization vs. Standardization Competitive intensity Distribution Cost structures – production/distribution Shipping and tariffs General economic/political outlook Plant and Production Decisions:  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 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 markets first Login (Course Website):  Login (Course Website) First, login to your class website Login to your class site using your (assigned) user ID and password Go to Login (Course Website):  Login (Course Website) Login (Simulation Software):  Login (Simulation Software) From the Login page, download the self-installing software from our Internet site Navigating CountryManager:  Navigating CountryManager Startup Menu:  Startup Menu Learn about doing business in Latin America Start here with: a briefing as you start your new job access to the CountryManager case (also found in the student manual) and useful glossary software navigation help Consolidated & Country Views:  Consolidated & Country Views There are two ways to navigate within the simulation: Consolidated View (index) and Country View (index) The consolidated view summarizes comparative information for the Latin American region as a whole The country view provides in-depth data on a particular country Which Market to Enter?:  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 Navigation: Consolidated View:  Navigation: Consolidated View Background Menu:  Background Menu View real-world data about the six Latin American markets under consideration Basic economic and social characteristics Basic political, social and demographic information for all six countries Use the Excel-based Country Attractiveness spreadsheet to record your analysis Background provides real-world data that will not change as the simulation proceeds Environment Menu:  Environment Menu Compare the economic outlook and business environment in the six Latin American markets Compare: Key economic indicators Info on costs of production, sales and distribution within each country Currency exchange rates Tariffs and shipping rates Sales by distribution channel across countries Consumers Menu:  Consumers Menu Review Consumer Buyer Behavior Compare: Where consumers purchase toothpaste in each country What is important to consumers when deciding which toothpaste to purchase Competition Menu:  Competition Menu Analyze Your Competition in Each Market Compare: Sales, expenses, and profits Market share by country Key marketing expenditures Internal Menu:  Internal Menu Review Your Overall Performance when the time comes… Net Contrib. is a long-term goal; it generally takes 4-6 years to become profitable Use: Net Contribution as an indication of your success in later periods The Performance Summary provides a helpful overview of decisions and results No results until after you have entered a market and advanced the simulation Decisions Menu:  Decisions Menu Implement your strategy  Input your decisions What market(s) to enter/exit and access detailed decisions for each country Where to locate your plant and what its initial capacity should be (and any expansions later) However, must make detailed decisions at Country Level for markets entered. Now let’s review the Country Level reports and decisions… Decide: Navigation: Country View:  Navigation: Country View Entering the Market(s):  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 Decisions Menu:  Decisions Menu Country Level To enter a new market or exit a market What products you will sell in the selected market - and for what price in the local currency How you will advertise, promote and distribute your product(s) in the selected country The following slides show decision screens at the country level Decide: Decisions (SKU Selection):  Decisions (SKU Selection) Add SKUs to launch for Allsmile Drop an SKU that is already on the market Decide what products to sell in this market: Decisions (Price):  Decisions (Price) Make pricing decisions for Allsmile SKUs in this market including the MSRP in local currency and the promotion allowance Remember to include room for distributor margins in MSRP Decisions (Advertising):  Decisions (Advertising) Update an existing advertising campaign for Allsmile… Or create a new ad Decisions (Advertising Budget):  Decisions (Advertising Budget) Enter your budget decisions for Allsmile advertising campaigns in the selected country Decisions (Distribution):  Decisions (Distribution) Enter your Allsmile distribution and promotion decisions for the selected country Decisions (Production):  Decisions (Production) Decide if you will build a plant in one of the Latin American countries and, if so, in which country It will take a year before the new plant is ready for production You may only build one plant outside the U.S., but you will be able to change its production capacity as needed Decision Summary:  Decision Summary Review your decisions for the selected country on the Decision Summary screen before advancing the simulation to the next period At the consolidated level you may check all the decisions at once Forecast/Pro-forma:  Forecast/Pro-forma Forecast next year’s sales to help evaluate your pricing and expenditure decisions before advancing the simulation Forecast/Pro-forma:  Forecast/Pro-forma After entering your sales projections, the Pro-Forma Statement displays projected income and expenses -- based on your decisions and assumptions -- before the simulation is advanced The Pro-forma statement shows what your net income will be if you meet your projected sales You may choose to have the SKU estimates match the market estimates or not, depending on your objectives Simulation Menu:  Simulation Menu Okay, now what…? Help Button:  Help Button Having trouble? Click the Help button on any report, summary, or decision form for context-sensitive information Consult FAQ’s:  Consult FAQ’s … or consult the FAQ’s on the student website … or contact Interpretive Compare your Results:  Compare your Results Finally, see how your strategy is working --- compare your results with those of other students in your course Things to Keep in Mind:  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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