-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
-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 40 million units, demand in India is 20 million units, and demand in S. Korea is 30 million