1. International Marketing Simulation
Country Manager
International Marketing Simulation

2. “I hear and I forget… I see and I remember… I do and I understand”
Why a Simulation?
“I hear and I forget…
I see and I remember…
I do and I understand”
Country Manager

3. The Environment
The Toothpaste Category Manager for an international corporation is expanding into Latin America
Six countries offer viable market potential
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
Country Manager

4. The Environment - Countries
Country
Population
(Millions US$)
GDP
(Billions US$)
Toothpaste Retail Sales
Argentina 37
374
90.4
Brazil
172
1,035
830.4
Chile 15
185 93
Mexico
100
815
211.4
Peru 27
112
50.4
Venezuela 23
195
31.1
Country Manager

5. The Environment - Competition
Starting Situation: Multiple firms competing in different countries
4 International Competitors:
B&B Healthcare
Caremore
Driscol
Evers
Also… regional and local competitors
NOTE: All individuals/teams play “against” the computer
Country Manager

6. The Environment - Consumer
Consumers differ cross-nationally and by segment in terms of:
Toothpaste size, delivery system, and vehicle preferences
Needs they are trying to satisfy with regard to formulation (prevention of cavities, whiter teeth, good taste)
Competitive offerings/choices
Price sensitivity
Customers are more likely to purchase a brand that they know and can find in their preferred store.
Country Manager

7. The Product - Toothpaste
Packaging and Formulation Variations
Sizes: Travel, Personal, and Family
Delivery: Tube, Pump
Vehicle: Paste, Gel
Formulations: Basic, Whitener, Healthy, Kids
Your firm has a number of different combinations of these available to introduce as unique SKUs.
Country Manager

8. Decisions – Market Entry (Consolidated Menu)
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
Country Manager

9. Decisions – Production Location & Capacity (Consolidated Menu)
Issues to consider for “Productive Capacity”
Production will take place in USA unless a single Latin American plant is opened.
Any production necessary to meet demand beyond what is planned takes place in USA.
Local production goes to local markets first.
One year to build capacity.
Country Manager

10. Decisions – Market Management (Individual Country Menus)
SKUs to offer (based on target & positioning)
Price in local currency and promo allowance
Advertising campaign and budget including localization issues
Distribution channels to support
Sales Force / Use of Wholesalers
Promotional Support
Production – U.S. plant versus Latin American plant
Forecasts
Don’t Bother With the Pro-Forma Unless Using it
to Project on Hypothetical Situations
Country Manager

11. Performance Measures Index numbers – especially brand equity measures
Performance in countries entered
Overall performance in Latin America
Market share and net contribution
How have you left the company positioned for the future?
Country Manager

12. Country Manager Logistics
Print out decisions before advancing
After advancing, print out administrator’s and turn it in
You are allowed one replay per period but no restarts
Important: Back-up your decisions!
Country Manager

13. Final Considerations
Marketing and Business Strategy drives your decisions – make sure you have one!
Focus on how to best serve your target customers through a total offering – product, marketing, service, and price
Importance of team organization
Decide on responsibilities
But don’t overspecialize - limits what you learn
Country Manager

14. Final Considerations
Manage your margins – understand financial implications of decisions
Understand fixed and variable costs
Long term vs. short term
Make wise investments
Try new approaches – apply concepts – experiment – have fun!
Country Manager