INTERNATIONAL MARKETING (MKT3020) CountryManager Graded Liveplay Period 1
INTERNATIONAL MARKETING
(MKT3020)
CountryManager Graded Liveplay Period 1
Delivered by
Amrita Jassa
Professor, School of Business
Conestoga College
XXXXXXXXXX
Introduce myself, washrooms, nametags, pls use electronic devices etc.
1
Graded Live play periods begin on
Period decisions are due on Sundays of the co
esponding week @11:59 PM
CountryManager Simulation Timeline
Practice periods begin on
Week 3
Practice 1
Week 4
Practice 2
Week 6
Period 1
Week 7
Period 2
Week 11
Period 5
Week 9
Period 3
Week 10
Period 4
Week 12
Period 6
Period 1 is now live
Teams will compete for best game score.
Winning team at the end of Period 6 gets the Winner’s certificate
Let the game begin!
How do game results work?
CountryManager game score reflects comparative results, this means
game scores are dynamic, your performance is benchmarked relative to other teams and the score may shift as other teams record their decisions.
Game score is the weighted score of the following performance measures
Unit Sales ( in million)
Total Manufacturer Sales ( in million $)
Share of Manufacturer Sales (%)
Cumulative Net regional contribution ( in million $)
Cumulative return on Marketing (%)
Brand equity
Game score is automatically updated at midnight or the instructor manually updates results on demand.
What is your game task for Period 1?
If you are playing individually, your period 1 game task is
Market Entry/ Launch in 1 country market
If you are a team of 2, your period 1 game task is
Market Entry / Launch in 2 country markets
( each team member is responsible for 1 country market)
If you are a team of 3, your period 1 game task is
Market Entry / Launch in 3 country markets
( each team member is responsible for 1 country market)
Market Entry/ Launch in each country market comprises of
Market Entry Decision
SKU & Pricing Decision
Advertising Decision
Distribution Decision
Production Decion
Please remembe
While all team members have access to the simulation, ONLY decisions recorded from TEAM LEADER login are saved in the simulation.
Simulation records period decisions after the ADVANCE button i pressed. There are NO REPLAYS, so review decisions before advancing.
Hit ADVANCE only after decisions for ALL COUNTRY MARKETS of the team have been recorded and reviewed. The simulation can only advance once each period and there is no going back.
Let’s talk about decisions
Market Entry
SKU & Pricing
Advertising
Distribution
Production
1.Market Entry Decision
Step 1 Research:
Review CountryManager Country Background- Latin America ( eConestoga- Content-CountryManager Simulation)
CountryManager Latin America Case- Economic and Social Background pages 9-11 (eConestoga- Content-CountryManager Simulation)
Simulation Reports- Environment & Competition Menu
Regional Strategy completed during Week 3 class ( Country Attractiveness & Production Attractiveness Spreadsheet)
Step 2 Record your Decision:
In this decision, you will select country/ countries to enter. This gives you access to country level decisions.
Here’s a navigation video to help with recording market entry decision in simulation
https:
share.vidyard.com/watch/8b33JHSYXL6Qa8RNjZGBHh?
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Quick Tip
When selecting countries, consider production attractiveness as well. It pays to set up a local manufacturing plant within initial periods.
Production plant is an important consideration for Net Contribution.
You can set up only 1 production plant throughout,
Capacity can be enhanced in increments ( 100 million units at a time)
Production plant does not become active for manufacturing until after one period from when it is set up. ( i.e. if you set up manufacturing plant in period 2, it will be available for production and sourcing in period 3.)
It is better to start local production sooner than later.
2.SKU & Pricing Decision
You should take a customer-oriented approach to market entry. That is, you should enter with a clear target marketing and positioning strategy. To accomplish this, all of the Company, Consumers, Environment, and Competition information in CM is important and should be analyzed each period.
Note that there are 12 unique customer segments for toothpaste: three demographic groups (older, family, younger) and four benefit-seeking groups (economy
asic, white, healthy, kids). Think of this as a 3 x 4 matrix.
Analysis of consumer research information is critical, each period, to develop and implement effective strategies. Don't forget the "CROSS SECTION FEATURE", its your best friend here.
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2. SKU & Pricing Decision
Step 1 Research:
Read CountryManager Latin America Case- pages 11-12 & XXXXXXXXXXeConestoga- Content-CountryManager Simulation)
Review Simulation Reports-
Consumers: Decision criteria
Competition: Brand formulations
Competition: Pricing ( for competitors’ MSRP & allowance)
Decisions: SKU & Pricing ( for estimated unit cost)
Step 2 Record your Decision:
In this decision, you will record SKU selection, MSRP and allowance for each SKU.
( Allowance ranges from 0-20%.)
Here’s a navigation video to help with recording this decision in simulation
https:
share.vidyard.com/watch/Q159ViNc4RWmGdoB1ZfrdM?
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3. Advertising Decision
Step 1 Research:
Read CountryManager Latin America Case- pages XXXXXXXXXXeConestoga- Content-CountryManager Simulation)
Review Simulation Reports-
Consumers: Brands purchased
Competition: Advertising
Quick eyeballing through the country background profile/factsheet may also be helpful.
Step 2 Record your Decision:
In this decision, you will create advertising campaigns and set their media budget. Ads can be adapted from existing campaigns, or you can create a new campaign.
Here’s a navigation video to help with recording this decision in simulation
https:
share.vidyard.com/watch/AZQ148kvbG6CqRD3YFnpmd?
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4. Distribution Decision
Step 1 Research:
Read CountryManager Latin America Case- pages XXXXXXXXXXeConestoga- Content-CountryManager Simulation)
Review Simulation Reports-
Consumers: Shopping habits
Environment: Distribution
Competition: Retail sales, Promotion, Salesforce, and Distribution coverage.
Step 2 Record your Decision:
In this decision, you will record channel selection, sales force allocation, promotion budget and promotion allocation.
Here’s a navigation video to help with recording this decision in simulation
https:
share.vidyard.com/watch/1RRvWWkM7qp5Za7M6AGFQ2?
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5.Plant & Production Decision
Step 1 Research:
Read CountryManager Latin America Case- pages XXXXXXXXXXeConestoga- Content-CountryManager Simulation)
Regional Strategy ( Production attractiveness spreadsheet)
Review Simulation Reports-
Environment: Cost structure, tariffs & shipping
Company: SKU contribution and production costs
Decision Analysis: SKU Forecast
Step 2 Record your Decision:
In this decision, you will chose a country in which to locate your plant along with initial capacity & select the source of production for the SKU’s in the market.
Here’s a navigation video to help with recording this decision in simulation
https:
share.vidyard.com/watch/DdY75zKZGBhGJQd6cuc29P?
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5.Plant & Production Decision
Plant:
Construction takes one year. Once the plant is built, it cannot be moves, but you can change its capacity.
Production:
The default is the home plant, but you can source from the local plant once it has been built.
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Research & Decision Making Video by Professor Rob Sloan
https:
youtu.be/CACYi1Hhe3M
CountryManager Latin America Case
COUNTRYMANAGER
Latin America Case
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Kay Pasah, head of the consumer healthcare division of Allstar Brands, looked across the table at
her category and
and managers. She had a determined look. “Our sales in our traditional
markets of Western Europe, North America, and Australia are performing well. But these markets
are mature with lots of competition and aging, slow-growing populations. On the other hand,
we’ve been too slow in developing our business in the newly emergent economies around the
world, such as the BRIC nations (Brazil, Russia, India, and China). Our board believes, and I agree,
that to generate the kind of growth needed to drive our stock price, we need to develop a
stronger market presence in these types of countries. Our plans will be rolled out on a regional
asis, with Latin America and Asia being the first two regions to consider. What I need from you
is an analysis of these regional markets and a plan of entry. You need to tell me where we should
e, when we should be there, and how we will need to manage the business. I want us to be in
at least one country in the region next year. Each of you has been assigned one of these regions
and I’ve provided you with some background information to get you started.”
Allstar Brands
Allstar Brands is a multinational consumer products company that produces and sells ethical
(prescription) pharmaceuticals, OTC (over-the-counter, or nonprescription) drugs, and consumer
products. It is an $10.9 billion firm that was formed in 1924 and competes with a variety of larger
and smaller firms, depending on the product market. It has leading
ands in various product
categories, including (in the OTC division) Allround, the leading liquid cold remedy in North
America, and Zemlef, a heartburn remedy soon to be converted from prescription to OTC status.
The consumer products division includes various types of packaged goods: hand and beauty
soaps, laundry detergent, shampoo, toothpaste, shaving cream, etc. Over the years, it has
expanded its product category width through internal new product development and through
acquisition of
ands and companies around the globe.
The company had been historically organized into Ethical Pharmaceuticals, Consumer Products,
and International divisions, but it recently reorganized into a global product management
structure with Ethical Drugs, Consumer Health Care, and Consumer Products divisions. A group
of category managers exists within each division. For example, the Consumer Healthcare division
has an oral care category manager, a vision care category manager, etc. Most major
ands also
have their own
and manager who reports to the category manager. Under the new structure,
each division is responsible for its own international operations and, to some extent at least, can
pick the products and categories to pursue internationally. The country managers are responsible
for the selection and marketing of products in a particular country. The cu
ent organizational
structure is shown below.
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Organizational Structure of Allstar Brands
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World Toothpaste Market
Cu
ent world toothpaste sales total approximately $20 billion. The country with the largest
market for toothpaste is the United States, with $3.4 billion spent during the past year. A number
of firms produce and/or market toothpaste in the world market. The table below lists the five
major producers of toothpaste for the world market, including Allstar Brands. Not all global
ands or global competitors will be represented in every market, and some markets might
include
ands produced by local firms. These local
ands may have a minor or major share of
the market, depending on the country.
World Toothpaste Producers with Major Brands
Company Name World Sales (% of World Market) Brands
Allstar Brands 13% Allsmile
B & B Healthcare 15% Britesmile Bancav
Caremore Company 21% Clean & White Caregate
Driscol Corporation 10% Dentacare
Evers Consumer 7% Eversmile
Toothpaste is available in a number of sizes, delivery systems, textures (paste or gel), and
formulations. The basic toothpaste product is a paste or gel with