Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Country Manager Simulation

Team 1 Performance Summary Analysis
by

Kara Degeorgis

on 29 April 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Country Manager Simulation

COUNTRY MANAGER SIMULATION
TEAM 1 PERFORMANCE SUMMARY ANALYSIS Ursula Librizzi Meredith Vandesype
Mary Dwyer Christian Llerena Kara Degeorgis Initial Marketing Plan Country Attractiveness Spreadsheet Most Attractive Countries Brazil
GDP growth - 5.2% / 7
Country size - 196.4 / 8
Tariffs - 21.0% / 5 Mexico
GDP growth - 2.0% / 9
Country Size - 108.7 /1
Tariffs - 0.0% / 8 Chile
GDP growth - 4.0% / 4
Country size - 16.5 / 4
Tariffs - 0.0 % / 9 Final Marketing Plan Simulation Revisions 1. Choosing Argentina over Chile
2. Opening a plant in Period 1
3. Increased attention to industry news
4. Used differentiation strategy with SKUs
5. Focused on lower prices while being conscientious of COGS Before Restart - Beginning of Simulation Restart to Period 5 - Middle of Simulation Period 6 to End of Simulation Adjustments to strategies, tactics and objectives
over the course of the simulation Reasons for Success Reasons for Failure 1. ignorance of simulation dynamics
2. not building a plant in period 1
3. copying competitor SKUs
4. too low of prices
5. ignored inflation or industry news
6. poor marketing
7. too large of a sales force Recommendations for the Future What did we learn? Initial Strategy - Enter Peru, Brazil & Chile
- Open production plant in Chile

Second Initial Strategy - Brazil, Mexico & Chile
- Open production plant in Chile - traditional and hypermarkets
- focused on families and healthy toothpaste
- plant built in period 2
- increased advertising costs and promotional budgets
- increased plant capacity in Chile to 100 million
- added sales force to each country
- doubled pricing in Chile
- took traditional market out of Mexico - hurt sales made decision in period 6 to restart simulation Third and Final Strategy - entered Brazil and Mexico
- Opened second production plant in Brazil
- entered Argentina
- lower campaign budget
- add a new SKU of economy/medium to market in Argentina
- lowered sales people and campaign budgets in both Brazil and Mexico
- added new SKU's to Brazil and Mexico
- updated all campaigns that were 3 years old
- net contribution negative but steadily increasing
- brand equity index (BEI) increased from 49 in period 1 to 60
Argentina = -3.9 Mexico = -0.5 Brazil = 13.4 Contribution Margins - increased amount of salespeople in each country
- drastically increased the MSRP on all 3 of our SKUs in Argentina
- added 20 million units of capacity to the plant in Brazil
- aimed to align prices more closely with competitors
- dropped prices in Argentina regardless of inflation
- lowered allowance for all SKUs from 5% to 4%
- introduced new SKU in Mexico in order to exploit a niche market
- adapted existing ad campaign in Mexico after 3 years running
- increase promotion budget in all countries
- increased the prices on all of our SKUs
- increased plant capacity from 130 million to 175 million Goals - turn a profit in Argentina and Mexico
- maintain a positive contribution in Brazil
- positive cumulative contribution margin net contribution higher than ever = 42.3
cumulative contribution margin = -12.4
BEI also increased from 60 to 66 1. GDP growth replaced by GDP

2. Peru replaced by Brazil

3. Opened plant in period 1 instead of period 2

4. 'Head to head' shifted to niche hunting RESTART - built a plant in period 1
- kept up with industry news
- priced according to economic climate
- chose competitors more wisely
- low cost strategy = steady sales increase
- differentiation strategy
- communication with other teams - deeply investigate country backgrounds prior to simulation
- acute attention to competitors' moves
- awareness of economic environments & market climates
- weigh factors that could affect your consumers' buying habits
- differentiate from your competitors
- strategically increase plant capacity - international marketing vs domestic marketing
- consumer needs vary by region
- standardization does not work for entering new markets
- industry news was vital to making new period decisions
- advertising and promotion were crucial to BEI
- exchange rates play role on pricing
- inflation is a domestic and international issue
- importance in differentiation
Full transcript