Latin America Expansion: Marketing Strategy for Allsmile Toothpaste

This report outlines a comprehensive marketing strategy for Allsmile toothpaste, a sub-brand of Allstar Brands, as it seeks to expand into the Latin American market, specifically Brazil and Mexico. The strategy encompasses market research, product positioning, distribution channels (traditional, hypermarket, web-based), advertising approaches (print, web, personal selling), and pricing tactics. The research emphasizes understanding consumer preferences, differentiating the product, and leveraging Allstar's brand reputation. The report suggests focusing on hypermarkets and traditional channels initially, with potential for web-based distribution. Competitive pricing and consistent sales promotion are also highlighted as key factors for success. The simulation results indicate positive gross margins and profitability potential, with recommendations for improved sales force allocation and targeted advertising campaigns to maximize market share. The lessons learned emphasize the value of simulation games in understanding business responsibilities and the importance of international business for company growth.

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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.

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Advertising strategy
Advertising strategies are the key to better awareness of any product. Advertising is important
for understanding and shaping consumer preferences and perception of the product. In managing
the advertising activities of Allsmile, a budget must be calculated in order to decide on the
spending of advertising activities effectively. The message should be loud and clear to the
consumers and it should be able to attract more customers. The messages should be made
according to the segment of customers to target. For example, the message for advertising
toothpaste can be fun and informative. For families, the advertises should be meaningful and
provide the benefits of the toothpaste. There can be consumer promotional activities where
consumers will be allowed to get a trial of the product, coupons will be distributed among
consumers and point of purchases displays can be helpful. The use of media can be beneficial in
any country. Print media can be used as cheaper option to create awareness about the product.
The advertisements can be given on magazines and newspapers. As advertising is an expensive
process and companies are more into use of web to advertise its products. The advertisements
can be minimal and be in regional languages to grab the attention of people. The ads should also
be based on the type of product specifications, the health benefits, economical pricing and whiter
teeth. Developing countries like Argentina and Brazil can be a good market to advertise the
products. Personal selling can also prove to be an effective way of advertising Allsmile.
Cooperative advertising can be adopted by reaching out to the dentists in the targeted region.
School awareness programs can be conducted to promote the product. The product can also be
promoted on Dental Awareness Week and support programs can be conducted to promote the
benefits of Allsmile.
Pricing strategy
Pricing is one of the factors that decide the success of any product in any country. Manufacturers
set the pricing according to the standards of the industry. Retailers can fix their own prices in the
store but should follow the market price also. The product offered was of medium sized and
price was set accordingly. Mexico served to be a good market to promote the product and accept
the pricing. Argentina and Brazil also served as good markets. The product was positioned as a
low priced product which will help in generating higher profits and increase demand among the
consumers. A consistent pricing will help in increasing the sales volume. This will also create a
large customer base and gain loyalty of the regular users of the product. Pricing can be a

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differentiating factor that can help in gaining an upperhand from the competitors. The price is
also to be set keeping in mind the price of the competitors.
Results from summarization
The division showed a well balanced report withy regards to sales, promotional activities and
brand equity. The brand value of Allstar is already high in United States and other countries. In
South American market, Allstar wishes to gain a good market share. This can be only possible by
way of consistent performance in sales promotion activities and advertising the product as per
the country and preference of the people of the country. The Current situational analysis was
done, marketing strategy was formed, financial analysis was made. This helped to determine the
most beneficial markets to target upon. Out of all the countries in Latin America, Argentina,
Brazil and Mexico are the most robust markets for promoting the toothpaste. The brand has been
positioned as a low cost product in the market to gain maximum market share. The product
gained maximum responses and revenue from Brazil and enjoyed the success in this country.
The product could have done well in other countries also buy improvement in allocation of better
salesperson in various distribution channels and focusing more on advertising campaigns. This
would have helped in targeting more customers and gaining a better market share. The
international market has numerous other players that requires to be analyzed before launching in
other countries. Allsmile can grow bigger and grab more attention by introducing new products
in their product line and increasing their product uses. In order to upkeep the strong response
from customers in the Latin American market, the presence must be strong. This can be done
only by improvising the strategies as and when possible. It also requires to select appropriate
channels of distribution that will help in promoting the product. The focus was targeting the
hypermarkets and traditional channels of distribution initially and later branch it out to other
channels of distribution. The other channels of distribution are web as promoting on web can be
cheaper and effective at the same time. Competitive pricing is another strategy to remain in the
competition. By the end of phase 1, Allsmile received positive gross margin and profitability was
sure to happen. The main motive was to minimize the expenses and maximizing the net profit
significantly in Latin America. Hence, Allstar should expand in Latin American market to gain a
better market share and be recognized in the global market. This will help in improving their
brand value but being consistent in understanding the customer needs and providing according to
their preferences, Allsmile can surely be a market leader in toothpaste industry globally.

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G. Lessons Learnt
After a close perusal of the above report I have learnt that the simulation for my Global
Marketing Management is regarding a United States based tooth paste company called, Allsmile
which desires to extend its market to South America.
In this report, I have come across many things. The initial lesson which I learnt is the importance
of playing a simulation game. A simulation game creates a virtual scenario for the people of
something real in this world. I have understood that playing a role has increased my interest
towards my work. It has improved my knowledge about the key ingredients of forming a
company. I have understood the responsibilities of a marketing manager and the extent to which
they are important for the smooth functioning of the business of the company. The simulation
game also plays a pivotal part in benefitting the company. Through the trial and error method, I
know what to include and what to exclude. I have understood my weaknesses and no I can work
upon them easily. Being a novice, I have gathered the experience of running a company in a
fruitful. The research has been highly fruitful in delivering to me the required knowledge and
skills.
Secondly, I have learnt about the international business. In order for the flourishing of the
toothpaste company it is essential that the business takes place in the international sphere. It is
only then, that the people across the globe would know about it and start utilizing the products.
This report has taught me the importance of doing international business. It only through
international business, that the company can extend to South America and make the targeted
profits. I have learnt that there can be decreased prices and better productivity in the business.
Moreover there would be an easy disposal of the extra products of the company. I have also
learnt that there would be a decrease in the fluctuations in the market. Besides, there would be a
low cost investment and efficiency in the production can be reached. I also came to know about
the specialization of the resources of the company.
Further, I came to know about the essential factors regarding the market extension strategies.
Toothpaste is one of the basic needs of everyday life. In order extend the market of Allsmiles, I
have learnt that the promotion and publicity is essential. This can be done through advertisement
in the billboards, newspapers, magazines, news etc. I have learnt that the social media can be of
good help. The good must be diversified from other goods of the same kind. I have learnt this to

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improve the strategies of marketing whereby the consumers would be aware of the good.
Another important strategy I have learnt, is that the marketing can improve by the inclusion of
the proposals of various dentists to use that product. This would attract the consumers and they
would have a faith in the product. To add to this, a slight research upon the retail marketing
pathways and channels could pave the way and make the strategies easier.
After this, I have understood how these market strategies can be implemented in international
scenario. The initial requirement for this is to possess the correct expectations. I have learnt that
if my company possesses an efficient and skilled team, fixed resources along with perfect
communication strategy, the market strategies can be very well implemented across the globe. I
have learnt that making deadlines for particular jobs and tasks would be time saving, cost
effective and it would ensure that the company does not lag behind I the competitive market. I
have also learnt that the profits should be recorded to maintain the accounts and there must be
frequent checking of the same. The staff and the management must cooperate together and be
flexible with the required changes. I have understand that these factors can be highly effective in
the implementation of the marketing strategies.
Thus, I would like to conclude that the above report has been very helpful to me because I have
gained sound and quality knowledge about Global Marketing management and strategies. I am
sure these would also help me in the near future.