Unveiling Neosporin in Chile

Long Term Orientation: NA

Did not receive survey

Has received praise for governmental pursuit of economic openness and freedom

Biggest Exporters:

China

U.S.A.

Japan

Netherlands

but Chile has refused to join Mercosur

Relatively inexpensive product

Marketed to wide range of families

Proven quick fix

Low brand awareness outside U.S.

No competitors in market

Currently use iodine or alcohol to treat wounds

Diversity in applications...

Chileans like to use Neosporin for shaving.

Limitations and Future Steps

Unable to visit Chile

Only able to interview one Chilean-born U.S. citizen

Conduct further interviews,

focus groups, and surveys in Chile

We are unsure as to why there is no

triple antibiotic ointment in Chile. Need to investigate if there are possible regulations forbidding the product.

However, we still strongly feel that there will be great success unveiling...

Sources of Information

"Chapter 4: Key Economic Sectors." Chile Business Forecast Report (2004): 26-34. Business Source Complete. EBSCO. Web. 27 Sept. 2010.

"Chile Exports - Economy." Index Mundi - Country Facts. Web. 27 Sept. 2010. <http://www.indexmundi.com/chile/exports.html>.

"Chile: Healthcare Report." Healthcare Industry Report (2009): 9-13. Web. 26 Sep 2010.

"Chile - In-depth PESTLE insights." Country Analysis Report. 2009.

"Chile." The World Factbook. Central Intelligence Agency, 15 Sep 2010. Web. 26 Sep 2010.

<https://www.cia.gov/library/publications/the-world-factbook/geos/ci.html>.

Sources of Information (continued)

"Geert Hofstede Cultural Dimensions." Clearly Cultural. Web. 28 Sept. 2010.

<http://www.clearlycultural.com/geert-hofstede-cultural-dimensions/>.

"Global Trade Negotiations Home Page." Harvard Kennedy School - Center for International Development. Web. 27 Sept. 2010.

<http://www.cid.harvard.edu/cidtrade/gov/chilegov.html>.

Itim International. "Geert Hofstede Cultural Dimensions." . 2009. Itim International. 28 Sept. 2010

<http://www.geert-hofstede.com/index.shtml>.

"Government and Regulatory Bodies." Pharmacy and Pharmaceutical Information on the Internet. Web. 29 Nov. 2010.

<http://www.pharmweb.net/pwmirror/pwk/pharmwebk.html>.

Hornbeck, J.F. "Chilean Trade and Economic Reform: Implications for NAFTA Accession." Congressional Research Service

"Interview with Manuel Cordero." Personal interview. 12 Sept. 2010.

Luthans, Fred. Management International. 7th. New York, NY: McGraw-Hill/Irwin, 2009. 104-09. Print

Sources of Information (continued)

Milonic. "This Is Chile." Embassy of Chile, Washington, DC. Web. 15 Sept. 2010. <http://www.chile-usa.org>.

"OECD." Organisation for Economic Co-Operation and Development. Organisation for Economic

Co-Operation and Development, n.d. Web. 27 Sep 2010.

<http://www.oecd.org/pages/0,3417,en_36734052_36734103_1_1_1_1_1,00.html>.

Selamé, Francisco. "Doing Business In Chile." PricewaterhouseCoopers, 2008. Web. 29 Nov 2010.

<http://www.pwc.com/es_CL/cl/publicaciones/assets/doingbusiness.pdf>.

The Plan

Objectives

Second:

Successfully reach target market of mothers with children under the age of 18

First:

Create an advertising campaign to successfully support the launch of Neosporin antibiotic ointment

in Chile.

SWOT Analysis

Third:

Integrate the brand and products into Chilean culture

Convenient and easy

Strengths

Uncertainty of

retailer willingness

to accept product

Weaknesses

Lack of product diversification

Product

Product Extension Communication Adaption

Mix

Buyer Orientation

Opportunities

Weak world economy

Assets:

Tangible Intangible

Threats

Chilean health products are kept behind the counter

Higher level of healing

Buyer orientation

Emotional Connection

.5 oz Tube

Speedy Healing

Protection from Infection

Doesn't burn or sting

Marketing

Place

85% of all Chileans live in urban areas

40% of all Chileans reside in Santiago

Utilize Pharmacies, Hypermarkets, and Supermarkets

The

Hypermarkets:

Jumbo

Lider

Pharmacies:

Ahumada

Cerro Verde

Talcobran

Supermarket:

Santa Isabel

Promotion

Concentrate advertising and promotions in Santiago, Valparaiso, and Puente Alto

Price

Sponsor a soccer (football) tournament for children

and have Neosporing First Aid Tent with free samples

Bundle Neosporin with a bandage company

Include a small free sample with the bandages

1 Chilean Peso = 0.0021 USD

1 USD = 476.8 Chilean Pesos

Magazine ad in Magazine meant for mothers with children under 18

Market Penetration Strategy

• Saturate the market before competitors appear

Rapidly industrializing

Experiencing increasing urbanization

Have rising wages

Growing literacy rates

Advancing Education

Price of 0.5 oz tube of Neosporin : 2000 Chilean Pesos

Equivalent to $4.20 USD

Chile

In Conclusion

General

Information

Cultural

Environment

Mountainous region on the Western

coast of South America

Managerial Implications

Official Language: Spanish

Varied Climate

Majority Religion: Christianity

because it is a low effort decision, should be a short adoption period

extremely dry and arid in the Northern Atacama Desert

70% Catholic

glaciers of the Antarctic in the southern portion of the country

Hofstede's Cultural Typology

Population

• Will have lower sales and profit in the adoption period at the beginning

• Shares very similar economic and political environments. Their free economy means very low barriers to trade

• Valuable product for all Chileans, but focus on niche of mothers with children under 18 due to the feminine and collectivist culture

• Work with Ministerio de Salud for regulations and approval. Very specific on packaging, so changes must be made to adhere to regulations

Power Index: 63

Signifies that the less powerful members of society believe that the power is distributed unequally.

Comparable to surrounding South American countries

Individualism: 23

Signifies that the Chilean people tend to believe more in a collectivist society.

From birth, they are integrated in cohesive and strong groups, often extended families

Roughly 16,601,707 citizens

Reflects very differently from U.S. which received a 91

Masculinity: 28

Signifies that Chile is a highly feminine society.

The people in Chile emphasize things such as:

67.8% is between 15-64 years old

23.2% is under 14 years old

9.1% is over 65

Caring for Others

Employment Security

Low Job Stress

Quality of Life

Uncertainty Avoidance: 86

Signifies that the Chilean people have very high uncertainty avoidance.

High uncertainty avoidance means thats the country plans for situations that might create uncertainty by placing regulations and safety measures

85% of the population lives in urban areas

40% live in the greater Santiago area, the capitol of the country

Political

Environment

Economic

Environment

Upper-Middle-Income market oriented economy

Newly Industrializing Economy

This means:

• Rapidly industrializing
• Experiencing increasing

urbanization

• Have rising wages
• Growing literacy rates
• Advancing education

Democratic Republic

Two major political coalitions

Concertación Coalition

Allianza por Chile

center-right

control 44% of the seats in the senate

never held presidency until the recently elected incumbent

center-left

responsible for ousting Pinochet

control a small majority in the senate

held the presidency since it has existed

Contains Three Branches

Although it is very open...

Chile is an Incomplete Free Trade Country

Being a member of many pivotal free trade agreements

has allowed Chile to become a prominent player in world trade

Legislative

Executive

Independent Judiciary Branch

Has become one of the most open economies in the past 40 years

1970 - 1980

-Cut tariffs on goods from 105% to 10%

-Reduced list of 300 banned goods to zero

Neosporin

in Chile

Why we chose Chile

Chilean student input

Currently lacking antibacterial ointment

Citizens use alcohol or iodine

Chile has very favorable conditions for unveiling the new product