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
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>.
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
Strengths
Uncertainty of
retailer willingness
to accept product
Weaknesses
Lack of product diversification
Product
Product Extension Communication Adaption
Mix
Buyer Orientation
Opportunities
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
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
- 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
-Cut tariffs on goods from 105% to 10%
-Reduced list of 300 banned goods to zero
Chilean student input
Currently lacking antibacterial ointment
Citizens use alcohol or iodine
Chile has very favorable conditions for unveiling the new product