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1.Introduction
• Company
Allstar Brands-Allsmile toothpaste
Allstar Brands is an international consumer goods enterprise which produces and sells prescription pharmaceuticals, nonprescription drugs and fast moving consumer goods.It has many leading brands in all kinds of product categories in regional markets.The consumer products division includes various types of packaged goods such as soaps, shampoo and toothpaste.In recent decades, Allstar has expanded the product category width through internal new product development and acquisition of brands and companies around the globe.Recently the enterprise was reorganized into a global product management structure with three major divisions including ethical drugs, consumer healthcare, and consumer products.A group of category managers are within each division.Under the new structure, each division is responsible for its own international operations and can pick the products and categories to pursue internationally.This busine plan is aimed at the marketing of Allsmile, a toothpaste of Allstar Brands in Asian market.(Feick et al, 2003)
• Situation
From the perspective of the market development, oral hygiene products in Asia market has entered into the mature period.The degree of market segmentation is high, brand loyalty plays a main role, and price competition is very fierce.As for the market supply field, the size of the Asian market is relatively stable and the market growth rate is low.Seeing from the market demand angle, personalized needs get intense day by day.The pursuit of new feeling, health, whitening, natural, full effect are still the mainstream of toothpaste products.In terms of the brand structure, market concentration is very high, several multi-national toothpaste brands occupy the mostmarkets all around the world.Looking from the product structure, market segmentation becomes more obvious, many new products exist, and the products withspecial feeling and diverse functions are widely accepted by the market.As for theregion and price structure, toothpaste products in urban markets tend to achieve further vocational development while in rural markets, the sales of low price products rise rapidly.(Berger, 2011)Last but not least, in terms of the market share of some major brands.The main brand group in Asian toothpaste market roughly includeBritesmile Bancav, Clean & White Caregate, Dentacare and Eversmile.(Feick et al, 2003)
2.Goals for Asia
• What to achieve and why(be specific, give some metrics)
The main market terminals in Asia will be China, Japan, India, South Korea, the Philippines and Thailand.Total Sales of the current year: $0.6 billion;
Gro profit: $0.2 billion;
Gro margin: 30%;
Net profit: $0.18 billion
Market share:15%
The marketing goal is decided as the toothpaste products develops rapidly and the Asian market potential is tremendous.From statistics of the manufacturer toothpaste sales by Country Market in the last six years, all of the six Asian countries mentioned above increased year by year.For instance, the sales in India five years ago was $398 million, while in the current year, the number is as large as $ 694 million.In China, the sales has raised from $1409 million to $2094 million within six years.As a result, the toothpaste market in Asia still has great space for development.Currently Asia's per capita toothpaste consumption has not reached the international average level, so the potential market is huge.The potential source is not just the conservative 4 billion population till 2050, but also the the growing rate of brushing teeth among Asian people and their growing oral health awarene.(Feick et al, 2003)
• Risks involved and likelihood of accomplishing goals
While the marketing goal of Allsmile toothpastes being executed by the marketing staff, several other toothpaste with large share may take relevant measures.If several brands take the measures of the promotions, discounts or price-cutting competition, it is likely to cause everybody have no profit or even lo.However in general, this kind of phenomenon is unlikely to appear.In addition, when improving sales channels, at the same time, Allsmile may lose the share of several original marketing channels, thus will result in a pyrrhic victory.Last but not least, there are some risks in personal selling and busine promotion aw well.Without large capital investment, these measure may not reach the designated effects.(Kotabe&Helsen, 2010)
3.Overall Competitive Strategy for Asia(core of the plan)
• Situation analysis and SWOT
Strengths
Allstar Brand is a world-leading consumer goods company with a long history Abundant capital
Mature marketing capabilities
Advanced technologies and equipment
Clear brand and strategic positioning
Strong product competence
High quality products
Accurate market segmentation
Sound supply chain management system
Diverse marketing channels
Weakne
Global operation and management mode may cause the response lag in Asian market Although there are various products, the differences are just the package and spice.They are lack of the innovations in raw materials and functions.(Kotabe&Helsen, 2010)
Stick to the international management experience and unwilling to change
Different age groups have different consuming habits.As for the elderly, they are used to some local brands, let them accept a new brand is difficult
Multinational management is difficult.Due to the differences in culture and values, there will be some contradiction within the company, and thus increase the difficulty of management.High cost.The investment in consumer research, advertising planning and product research may increase the cost.Compared with similar products, its product differentiation is not obvious.While comparing with domestic brands, its brand affinity is not strong
Opportunities
Consumers’ living standards improve, the concept of life changes, they begin to pursue health life.Dental health attracts more and more attention, market growth of toothpaste speeds up.As people’s consumption habits change, they strengthen the brand preference and decline the sensitive degree of price.Domestic national enterprises develop slowly and even atrophy, lack of competitivene(Kotabe&Helsen, 2010)
Threats
Several large brands have already occupied the market
Several local brans are developing fastly
Lack of local characteristics
• Basis for competing effectively in the long run(specify an overall competitive strategy)
Understand and adapt to the different needs of Asian consumers and expand consumer objects constantly.Long-term marketing plan include four categories, products, positioning, marketing channels and marketing strategy.1.Update the product combination and replace the packaging of the products in order to increase specific groups’ interest and thus promote consumption.2.Divide the toothpaste positioning in high-grade, middle-grade and low-grade.Therefore consumers will have more choosing space.3.Use all kinds of channels like modern supermarkets, wholesale markets, terminal direct selling and chain pharmacies to enhance the brand competitivene and maximize the enterprise profit.(Kapferer, 2012)
4.Take use of personal selling, busine promotion and other marketing strategies to.encouraging consumers to take purchase behavior effectively.Besides, it will help actively explore new markets.(Ataman et al, 2010)
• Resources and capabilities of the firm
Tangible resources(all kinds of consumer goods, materials, equipment, facilities, workplace)
Financial resources(value over $8.9 billion)
Human resources(sound HR management system)
Intangible resources(trademark, patent, technology, corporation culture, brand image etc.)
References:
Ataman, M.B., Van Heerde, H.J., & Mela, C.F.(2010).The long-term effect of marketing strategy on brand sales.Journal of Marketing Research, 47(5), p866-882.Berger, A.(2011).A Strategic Analysis of Colgate´ s toothpaste product line.GRIN Verlag.p7-13
Feick, L., Roth, M., Deighan, M., & James, S.(2003).Country manager: The international marketing simulation.Charlottesville, Virginia: Interpretive Software Inc.P7-18
Kapferer, J.N.(2012).The new strategic brand management: Advanced insights and strategic thinking.Kogan Page.p45-55
Kotabe, M., and Helsen, K.,(2010)Global Marketing Management(5th ed), John Wiley and Sons, Brisbane.p130-136
