1. The International Marketing Simulation
Country Manager
The International Marketing Simulation

2. 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
Develop and implement strategies that are attractive to customers in each country and profitable for Allstar Brands

3. Six countries offer viable market potential
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

4. GDP (Billions $) Purchasing Power Parity Toothpaste Retail Sales
The Environment
Country
Population
(Millions)
GDP (Billions $) Purchasing Power Parity
Toothpaste Retail Sales
(Millions US$)
Argentina
40.9
558
208.4
Brazil
198.7
2,024
642.9
Chile
16.6
244
124.9
Mexico
109.9
1,466
292.0
Peru
29.5
253
59.8
Venezuela
26.8
355
50.0
Note: For L.A. Scenario, release 2010

5. 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

6. 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 their preferred store.

7. 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 21 different combinations of these available to introduce as unique SKUs. More may become available in future years.

8. 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?
Home and/or one Latin American country

9. 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

10. Plant and Production Decisions
Issues to consider for plant location and sourcing options:
Production will take place at Home until a Latin American plant is opened
Only one plant may be built in Latin America
One year to build capacity (100 mill/yr.)
Any production necessary to meet demand in Latin America beyond plant capacity takes place at Home
In LA countries other than where you build the plant, you choose Home or LA sourcing
Local production goes to local market first

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 Home 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 Home
All demand in Chile and Mexico will be also fulfilled from the Home plant

12. 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 Home 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 Home plant

13. 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 Environment, Consumers, and Competition 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 in the simulation reports, as described further in the student manual and demo.

14. 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 detail reports will allow you to:
Decide on target markets within a country
Recognize competitive positioning and strategy
Research the options within your selected market by clicking a Country name link to open detail reports, as described further in the student manual and demo.

15. 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