Country manager latin america simulation answers

Latin America Case —13—

1: Latin America Case

—14— CountryManager Student Manual

The CountryManager Case: Latin America

AY PASAH, HEAD OF THE CONSUMER HEALTHCARE DIVISION of Allstar Brands, looked across the table at her category and brand 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 basis, 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 be, 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 multi-national 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, 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 acquisition of brands and companies around the globe. The company had been historically organized into three divisions (Ethical Pharmaceuticals, Consumer Products, and International), but recently reorganized into a global product management structure with three major divisions (Ethical Drugs, Consumer Healthcare, and Consumer Products). 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 brands also have their own brand 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. Figure 1 illustrates this organizational structure.

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Latin America Case —15—

Figure 1: Organizational Structure of Allstar Brands

ALLSTAR BRANDS

Ethical Drugs Consumer Healthcare Consumer Products

Product Categories

International Operations

Home Operations

Oral

Category Europe

Latin America

Finance

Production

Toothpaste Asia

Accounting

MIS

Country Management

World Toothpaste Market Current world toothpaste sales total approximately $20 billion. The largest country 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. Table 1 lists the five major producers of toothpaste for the world market, including Allstar Brands. Not all global brands or global competitors will be represented in every market, and some markets might include brands produced by local firms. These local brands may have a minor or major share of the market, depending on the country. Table 1: 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