Economics and United States
Allstar’s Argentina
Marketing Plan
By: Josh Resnick & Kirk Wegner
March 6, 2009
Introduction to Allstar Brand
Allstar Brand is a United States based consumer products company that produces and sells ethical (prescription) pharmaceuticals, OTC (over-the-counter or nonprescription) drugs, and consumer products. It is an $8.9 billion firm that was formed in 1924 and competes with a variety of larger and smaller firms, depending on the product market. It has a number of leading brands in various product categories. Over the years, it has expanded its product category width through internal new product development and acquisition of brands as well as companies. Allstar has operations in Europe and alliances in Asia. These have proven to be very successful markets that performing exceedingly well. But these markets are maturing very quickly, and with increased competition and slowing populations, it is now necessary to look elsewhere for continued growth and profit margins. The Allstar Board believes that to generate the kind of growth needed to drive their stock price, Allstar needs to develop a market presence in South America. South America is a region of great potential. With a population of approximately 450 million, the region represents a population that is 50 percent larger than that of the United States and Canada. The dominant national language across South America is Spanish, as is the case with Argentina. A variety of trade enhancement actions have put in place in recent years. The MERCOSUR agreement was set up among the South American countries of Argentina, Brazil, Chile, Paraguay, and Uruguay, including association agreements (but not membership) with Bolivia. This agreement reduces trade barriers among these countries and has encouraged a variety of companies to establish production inside their borders to take advantage of low labor costs and fairly seamless access to neighboring markets. For accounting purposes at Allstar’s corporate
Marketing Plan
By: Josh Resnick & Kirk Wegner
March 6, 2009
Introduction to Allstar Brand
Allstar Brand is a United States based consumer products company that produces and sells ethical (prescription) pharmaceuticals, OTC (over-the-counter or nonprescription) drugs, and consumer products. It is an $8.9 billion firm that was formed in 1924 and competes with a variety of larger and smaller firms, depending on the product market. It has a number of leading brands in various product categories. Over the years, it has expanded its product category width through internal new product development and acquisition of brands as well as companies. Allstar has operations in Europe and alliances in Asia. These have proven to be very successful markets that performing exceedingly well. But these markets are maturing very quickly, and with increased competition and slowing populations, it is now necessary to look elsewhere for continued growth and profit margins. The Allstar Board believes that to generate the kind of growth needed to drive their stock price, Allstar needs to develop a market presence in South America. South America is a region of great potential. With a population of approximately 450 million, the region represents a population that is 50 percent larger than that of the United States and Canada. The dominant national language across South America is Spanish, as is the case with Argentina. A variety of trade enhancement actions have put in place in recent years. The MERCOSUR agreement was set up among the South American countries of Argentina, Brazil, Chile, Paraguay, and Uruguay, including association agreements (but not membership) with Bolivia. This agreement reduces trade barriers among these countries and has encouraged a variety of companies to establish production inside their borders to take advantage of low labor costs and fairly seamless access to neighboring markets. For accounting purposes at Allstar’s corporate