Final Report Country Manager

Rahul Bhosale
Matt Arbuckle
David Bowles
Eli Bradaric



Company and Division Background
Allstar Brands is a ninety year old company valued at $8.9 billion. The company sells
pharmaceuticals, over the counter drugs, and consumer products. It currently conducts
business primarily in Western Europe, North America, and Australia. The company recently
reorganized to operate under a global product management structure. This new structure
allows the divisions to control their international operations. Each division has more autonomy
to establish strategy and to choose which products and categories to emphasize.
This paper focuses on the Consumer Healthcare Division which sells soaps, detergent,
shampoo, toothpaste, shaving cream and other products. The divisions growth has come
primarily from product development and brand acquisitions. There has been slow brand growth
in the divisions traditional developed countries markets. This has been a result of this
markets maturity, the amount of competition, and the slow growing and aging population.

Potential Market
The slow growth in the divisions traditional markets has comped them to look for faster
growth markets. Asia and South America were of particular interest. This study is a result of
the decision to focus part of the divisions efforts on South America. The South American region
has appealing features. It has large populations, with over 450 million people. There is less
competition, and as these countries continue to emerge their economies are growing.
Challenges also exist in South America. There is substantial political instability. These
countries economies are growing but, this growth can be slow and erratic.
There are additional considerations relevant to the study. The region communicates in a
variety of languages including Spanish, Portuguese, and various indian languages. There a
myriad of tariffs and trade agreements that are applicable to respective regional and extra-
regional relationships. Currency exchange rates and related inflation rates need to be kept in
mind.

Objectives
The ultimate focus of this study is on the toothpaste market in six possible countries in
the region: Argentina, Brazil, Chile, Mexico, and Peru. The products that can be offered include
a variety of sizes, delivery systems, textures, and formulations. The four target segments
include basics/economy, whiteness, healthy teeth, taste/kids. Competition consists of four other
international brands, and a variety of regional and local brands. The strength of each of these
competitors varies in each country.
The final objective is to develop a strategy, make decisions, and apply adaptive tactics
that will create growth, turn a profit, and increase stock price.

SWOT Analysis:

+ -



IN
STRENGHTS Weaknesses

Strong international brand
Establish SKUs to work from
Existing production facility
Strong corporate financial
resources


No South American Experience
New and unproven company
structure
Potential language barriers
Prior growth has been from new
products and acquisitions.



OUT
Opportunities Threats

Large emerging market
Growing economies
International agreements among

International competitors already
established
Strong regional brands already
countries can be leveraged


established
Unstable governments
Erratic economies