Marketing Strategy for Allsmile Toothpaste in Latin America

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Marketing Strategy

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Marketing Strategy
Allsmile toothpaste is a sub brand of Allstar Brands operating in North America which produces
and sells ethical, pharmaceutical, over-the-counter drugs, and consumer products.The world
toothpaste sales stand approximately at 20 billion dollars out of which United States serves as the
largest market for toothpaste. The toothpaste industry has been growing in terms of its customer
preferences, availability of varied options, and healthy living. Allstar is one of the major
producers and seller of toothpaste in Northern America. Currently, the company wishes to
expand its operations in Latin America. Countries in Latin America are considered to have
weaker economies and low growth due to their reluctancy to take relevant actions for economic
issues. The toothpaste sales in Latin American region have been growing specially in Brazil and
Mexico. In order to enter into these markets, Allsmile requires relevant marketing strategies to
compete with the existing toothpaste companies in Latin America. The overall strategy would be
targeting approximately 450 million customers in Latin America. Since the toothpaste market is
growing in this region, extensive market research is to be done before entering into the market.
The selection of right distribution channel will help to enter Latin America.
Product Strategy
The product strategy for Allsmile will begin with Market research. The strategy will be to target
Mexico first to conduct surveys, interviews with the local people, testing through focus groups.
Interviewing will be relevant to procure information through questions related to the product
concept of Allsmile, preferences of people in that region, dislikes and any suggestion regarding
the product. This strategy will help to understand about customer preferences and evaluation of
the product concept can be done effectively. A beta test can be run by Allstar to get the market
reaction about the product Allsmile. The product can be distributed to small groups of people in
different countries in Latin America to run the test and procure information from them. The
market segmentation will be based on consumer preferences. The product features will be based
on consumer preferences. The product features will be based on type of toothpaste to be sold in
Latin America i.e., economical, whitening toothpaste, herbal or healthy toothpaste and toothpaste
for kids. The target market will be families and older people of Latin America. The focus will be
understanding the common decision makers of a household and the ultimate buyers of the
product. The product positioning will be done in the existing toothpaste market. Since toothpaste

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market comprises of several companies selling homogeneous products, Allsmile should be
focusing more on product differentiation. The differentiation can be done through displaying the
logo and of Allstar, packaging can be innovated, and sales promotion activities will be boosted.
After identification of qualities required by consumers, the product specifications and benefits
should be listed out and accordingly marketing activities can be planned. It is to be ensured that
the information provided in these countries will be based on facts and relevant research as the
market already comprises of many players selling the same product and offering same features.
Distribution strategy
In today’s world, companies are adopting various distribution strategies to gain competitive
advantage in the market. Most of the companies are trying to target their customers far and wide.
Rising costs are a big factor to expand into various markets to gain a higher turnover along with
a higher margin of profit. Therefore, a lot of importance is given to making of right distribution
strategies for any company. In the recent years, Latin American has undergone many changes
and developments in its distribution process and channels. The focus should be on three channels
of distribution which are the traditional, hypermarket, wholesale and self-service. The traditional
channels mostly comprise of small, independent stores that are served by various wholesalers.
Hypermarkets are mostly found in cities selling all variety of products. All these products are
directly received from the manufacturer through direct distribution. These hypermarkets are
owned by foreign companies. In order to sell the products in Latin American market, the use of
web or internet marketing can be used a preferable method of distribution. Another mode of
distribution can be Home delivery via web-based channel. This can be utilized as not many
competitors are aware of this distribution channel and utilized it yet. There should be a budget
prepared for promotion of Allsmile in Latin American countries like Mexico, Brazil and
Argentina. These countries show a higher revenue generating capacity. Salespeople can be
appointed to sell the products directly to the people and get their responses. As Allstar is a well-
established name in the Northern American countries, it should distribute Allsmile mostly in
Hypermarkets as the supply can be provided directly from the manufacturing plants. This will
reduce the costs in handling of the product and eliminate too many distribution heads in between.
For the transitional period also, an expense should be considered for promotion of Allsmile as it
moves ahead to the consumer markets.