-Play the role of a Toothpaste Category manager
-About to enter the Asian market
-Toothpaste brand called “All Smile”
-8 Year project
-6 countries offer viable market potential
-China, Japan, India, S Korea, Philippines. & Thailand
Goal: to develop a regional presence in Asia
4 Competitors Internationally
-B&B Healthcare
-Caremore
-Driscol
-Evers
-Plus regional and local competition
Consumers
-Defined by lifestyle (young, families, older) and Primary Need (economy, whitener, health, kids)
-Consumers differs cross-nationality
-Toothpaste size and delivery system, texture pref
-Needs: prevent cavities, whiter teeth, good taste
-Price sensitivity
-preferred store and distribution outlet
Packaging and formula variations
-Size: travel, personal, and family
-Delivery: tube, pump
-Texture: paste, gel
-Formulation: basic, whitener, healthy, kids
-The firm has 21 different combinations of these available to introduce as unique SKU’s (stock keeping unity)
Key Strategic Decisions
What countries and markets to enter?
-Consumer segments to target within countries entered
-Choice of distribution channels within the countries entered
Where to source production
-Home and/ or one Asian country
Issues in Market entry and exit
-Market potential and growth
The Review on Country of origin, consumer’s Perception and Brand Image
Introduction The impact of country of origin (COO) on the consumer’s perception of products has been one of the most widely studied areas of international marketing. Increasing globalization of today’s business has resulted in unprecedented problems for manufacturers, marketers, and consumers (L. Y. Lin & Chen, 2006). The country of origin (where a product is made) touches both ...
-General economic and political outlook
-Competitive intensity
-Synergies w. other/existing markets
-Regional Customization vs standardization
-Distribution
-Cost structure- production/distribution
-Shipping and tariffs
Issues for plant location and sourcing
-production takes place at home until asia plant opens
-Only one plant may be built in Asia
-1 yr building capacity
-Any production necessary to meet demand in asia beyond plant capacity takes place at home
-local production goes to local market first
You have entered China, India, and S. Korea
• Based on your decisions, demand in China is 40million 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
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
The Term Paper on China Not a Threat to India
China Not A Threat to India Last week, I was surfing channels and suddenly came to a halt at a Hindi news channel. It was showing a typically ‘tamasha’ news on why and how China was preparing to attack India in the near future. The channel asked- “What is the intention of the Chinese government and if China attacks India, will India be able to hold China at bay and defend her territory?” What ...
Once you’ve determined the market you would like to enter you must decide how to launch your product -Selection of SKU’s
-Price of each SKU in local currency
-Ad campaign
-Selection of channels and channel support
• 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
All Star Brand overview
-ethical pharmaceuticals, Over the counter drugs (OTC), and consumer products -8.9 billion dollar firm formed in 1924
Country Analysis and Entry Decsions
-Asia has had large economic growth
-india IT power house
-Japan and Hong Kong leaders in modern expansion
-China and India w. huge population have become economies to watch as their GDP per capita and middle class continue to grow
-Asia is home to 60% of worlds population
World Toothpaste Market
-Sales: 20 Billion
-Largest market is US w. 3.4 billion spent last year
Focus of the toothpaste
-Families with Children- cavity protection
-Young singles- white teeth
-Middle age- tarter and gingivitis
-Children- taste
-Toothpaste Market is a mature market in US, Europe and Australia so growth is very slow
-Line extension to increase brand curiosity
-Allsmile whitening, allsmile tarter control and allsmile kids
After initial entry into a regional market with a limited number of SKUs, expansion in the region might proceed as follows:
• _Periodically, market penetration and growth rates for each country manager will be reviewed. Based on achieving these goals, additional SKUs may be introduced in the initial market. _After successful entry into one market the country manager can expand their operations into other countries in a similar fishion. The products can be the same as those marketed in the intitial country, or they may be entirely different SKU:S
The Business plan on Market Segmentation, and Product Positioning
For the purpose of this assignment, I am assuming myself as the owner of a plastic molded toy company in United States that manufacturers, and distributes plastic molded toys through retailers across the country and around the world. The company is capitalizing on the strong growth in the children’s toys segment and planning to expand in an aggressive manner throughout the nation. The company ...
