the paper in general looks much better and its almost done but in the instructions it mentions that there should be some graphs as well, can you please add some graphs to the paper.
Executive summary
The company has made use of different marketing strategies in ensuring that it succeeds in its operation. The company determined their target market in various countries enabling for the effective distribution of the products. This has resulted to the positive results exhibited by the company, in its production process over the years. Because the population was skewed in the 15-64-age range, we chose a diversified selection of SKUs geared towards adults and only two for children. The use of market segmentation also made the company realized the different segments of the product with their specific use on the consumers. The segments of All Smiles herbal toothpaste includes All smile active salt, Allsmilecibaca family, Allsmile herbal, Allsmile fresh energy gel, Allsmile Kids toothpaste, Allsmile max fresh, Allsmile sensitive, Allsmile total 12 and Allsmile dental cream. Further, the use of target market has also helped the company in meeting the needs of the specific customers effectively. These have formed part of the most important decisions that the company has made over the nine years of operation thereby bringing the difference to the original plan. The article also highlights on the recommendation that the company should adopt in order to realize a brighter future for All Smile herbal toothpaste.
All smile
Compare the actual strategy and results with the original plan (you must present your teams final performance results, e.g. income statement and key market measures; include many hard numbers in tabular or graph form)
The performance of the company is detectable through comparing the actual strategy and the original plan. This helps in showing the way that the company progress in its marketing strategy considering the plans put in place. Since the establishment of the plan, there has been a different in existing in the profits, relation to customers and the popularity of the firm. This have arose considering the effectiveness of market segmentation, target markets, positioning and product strategy. Most of these strategies used by the firm during marketing has led to positive results especially increase in number of customers, profits and cash flows. This is different to the original plan, which made little use of the marketing strategies.
The use of market segmentation, as one of the marketing strategy, has made the company realize positive results in their operation. The use of the market has brought many differences in the operation of the company. The use of market segmentation helped the company in determining the potential of each product they produce and consumers that they (products) will suit. This has helped in proper distribution of their products across all the regions since the company has knowledge of the market. The market segmentation has also contributed to the company determining the approximate number of consumers that will buy their products. This has served in ensuring that the company only produces the adequate amount of products that will meet consumer’s demands without surplus or shortage. For instance, through the market segmentation, the company has realized that the All Smile Sensitive will target the hygiene conscious customers and the patients suffering from serious teeth and gum problems. This has formed the basis for the company distributing the All Smile Sensitive to specific people who needs the products. Consequently, the use of market segmentation has helped in ensuring that the company reaches all the potential customers with the product they need. Further, the market segmentation has also helped in increasing the number of customers attached to the company since the company’s product reaches them at an adequate amount and within the correct time. This is different the original plan which did not make use of market segmentation. The original plan lead to many inefficiencies since the firm could only distribute their products randomly without consideration of the customers interested in the products. This served as the main reason for the realization of losses as the products did not reach most of the potential customers. The values existing are that the company made 54.5 million Rs when first entering the Indian market. Since that time, the company has realized an exponential growth reaching 268.5 million Rs.
The number of consumers had increased as compared to when the company entered the market because of the use of proper marketing methods. The company makes use of the internet in presenting their ads to the potential customer. The increased use of internet, for most of the company’s products, has led to most of the potential customers knowing about the products. This came as the result of the internet reaching more people within the span of the moment; and the consideration that most of the potential consumers also have access to the internet. Further, the growing technology also favored the use of internet since many of people around the world have more taste for the internet as compared to the other forms of advertising media. Through the internet, the company is making use of the social media in ensuring that they even reach a larger number of individuals interested in the toothpastes. Further, the company has also increased its involvement in the other advertising media thereby increasing its popularity within the market. This is indifferent to the original plan that did not concentrate much about advertising leading to the low profile of the company within the market. the increase in the number of consumer can be shown in the growing market share. For instance, market coverage of South Korea was 30.9% market share. Interestingly, this was the last market that our team chose to enter. Our second most successful was India (24.2% market share). Even though, the percentage is lower than India, our percentage is higher than the other competing brands’. Our least successful country in terms of market coverage was China (18.2% market share).
Further, the determination of the target markets, as a marketing strategy has also brought a difference between the start and the present state of the company. The company has witnessed increase efficiency in their operation because of the determination of the targets. For instance, the company identified that Allsmile toothpaste targets the educated, urban people who brush their teeth twice. Further, the presence of multiple flavors has made the Allsmile toothpaste be a target for the youths. The determination of the targets helps in informing the company about the potential customers who may serve as the appropriate buyers of the products. Further, the target markets have also helped the company in ensuring that it has promoted the loyalty of the customers towards the product. This arises because the determination of the target helps in establishing a close attention for the different targets; consequently ensuring that it has met the needs of the different targets.
ALL SMILES INC.
INCOME STATEMENTS
(In millions RS)
Year ended October 31, 2012 2006 2003
Revenues 268.5 139.5 54.5
Cost of sales (100) (60) (23.5)
Gross profit 168.5 79.5 31.0
SGA expences (56) (34) (17)
Operating profits 112.5 45.5 14
Gains from disposal of fixed assets 46.5 20.5 _
Interest expense (56.0) (34.5) (3)
Profit before tax 104 31.5 11
Income tax expense (30.0) (10.0) (3.0)
Profit (or loss) for the year 74.0 21.5 8.0
- Discuss the most important decisions made over 9 years, both in planning and during actual market operations. Identify which decisions were most and least successful and why.
Market Entry
In the actual market operations, one of the key decisions made concerning the All Smile organization is the distribution of the already manufactured products to the customers. Most of the customers in the marketplace preferred the purchase of the products from a distinct location. The customers preferred one essential way in which the toothpaste products manufactured by the organization would reach them without much struggle. The most effective way of the All Smile to ensure the customers in the marketplaces received the product at the most effective and efficient manner was through distributing the available stock to the hypermarkets.
The use of the hypermarket was the best alternative to ensure that most of the customers acquired the best products from the marketplaces. Since hypermarkets was the most vital method of distributing the available All Smile products to the people, it was recommended in all the three nations, china, India and Korea that all the products be distributed into the hypermarkets. This ensured that most members of the society receive the most desired and preferred products at the most suitable time. Although in some nations the All Smile decided to use other channels to distribute the products in the marketplaces, the most effective technique in both the three nations was the use of the hypermarkets.
Competitive Strategy
In implementing the overall strategy competitive strategy of the All Smile organization, the company decided to diversify the marketplaces in which the products of the toothpaste would be purchased to the customers. The first plant of the All Smile was located to the United States of America hence all the manufactured products were forwarded to the entire parts of the world. Since the All Smile in the united nation was the only plant at the beginning, the firm produced all the products, which were then distributed to the rest of the world.
However, the exportation of the finished products from the United States to the entire parts of the world becomes expensive for the organization. For the reason of the expensiveness of shipping the products from the United States to other parts of the world, another plant of the All Smile organization was commenced in China. The project in china was not that successful, which forced the establishment of another plant in the India. Gaining the market share in the new markets, India and China contributed to the successful purchase of the All Smile toothpaste products to the customers. The increase in demand in the shipping products to the South Korea also increased the demand of the products in the nation. Eventually the All Smile organization was capable of attaining the expectant income profitable returns through accessing markets in Korea and India.
The decision concerning the competitive strategy in investing in more than three nations was one of the successful moves of the All Smile organization. In most of the nations that the All Smile organization invested and commenced a plant, vital in the purchase of the toothpaste the number of the customers increased hence boosting the income profit of the organization. Increasing the market share of the four nations promotes the purchase of the All Smile products in the nations. The decision of investing into the four diverse nations has improved the nature of the All Smile organization in purchase of the available products. Since the population in the four nations varied, in both the nations, the market segmentation in the three nations still promotes the purchase of the products.
Target market
The target market of the All Smile organization in purchasing the toothpaste to the customers encompassed of entire workgroup in the entire marketplaces. The available customers in the marketplaces were all targeted in the purchase of the available toothpaste products offered in the marketplaces. Since the products of the All Smile firms were divided in consideration with the age groups, all the customers were expected to purchase the products in the marketplaces. Number of the years that the All Smile toothpaste has existed in the marketplaces also contributes to the acceptance of the products to the customers. However, the segmentation of the products into various categories also contributed to the target market of the firm into purchasing the products into the marketplaces.
The first target market of the All Smile toothpaste is the educated members of the society who brush their teeth’s almost twice or thrice a day. The Allsmile toothpaste is targeted to the rich and educated members of the society that are willing and capable of purchasing the products. The additional target group is the youths whom are supposed to purchase the Allsmile max fresh. The Allsmile max fresh is targeted to the youths because of the appealing flavor of the toothpaste. The Allsmile max fresh toothpaste also entails mints that give the mouth a unique flavor enabling the mouth to remain fresh. For this reason, the youths prefer the All Smile max fresh toothpaste because of the number of hours that an individual mouth remains fresh after brushing the teethes with the product.
The next target market of the All Smile organization is the Allsmilekids’ toothpaste, which is focusing on the young children. The key target of the Allsmilekid’s is the kids since the toothpaste has sweet flavor. Since the children are not used to brushing the teeth, the only way to encourage the children into adapting to the routine of brushing the teeth is by making the toothpaste with a sweet flavor.
The other products such as the Allsmile fresh energy gel are targeting the youths and the other members in the young generation. Since the youth covers a large segment of the population, then it is vivid to offer more brands for the youth. The Allsmile herbal is the latest invention of the All Smile Company, meant to reach all the traditionalists in most parts of the world. The increased number of the people that are attracted to the traditional and cultural product manufactured by the All Smile firm has increased drastically. This is for the key reason that most of the members of the society have turn back to the traditional and cultural way of life. Distributing the customers in the marketplaces that are willing and capable to purchase the All Smile products increases the purchasing power of the members of the society.
The most successful decisions were market entry and competitive strategy since the two decision increased the market share of the All Smile organization. The least decisions were the increment of the pricing and target market. This is for the key reason that most customers purchased the All Smile products because of the uniqueness and flavors of the toothpastes instead of the various target segments.
- Specifying recommendations for future Asian market operations for the brand and future
products (should be in the form of a marketing plan)
The Asian market is viable for business operations with direct connections to the needs of families and different households. However, it is necessary to consider the social, political and economic structures of countries in the Asian market to determine possible successes following expansion into such market. Since it emerged that the target market in India is families and adults, the enterprise should put much of its focus on addressing the concerns and reservations that adults especially between the ages 15-64 have as regards the products and SKUs. In essence, all the SKUs should focus toward the adults contrary to the previous diversified selection involving adults as well as children. The company should also embark on a comprehensible market research prior to its expansionary plans in the Indian market. Features such as demographics, economic and political system should largely feature in the study. This would prevent underestimations of the market numbers in terms of potential buyers, demand for its products based on gender, age or religion. The political atmosphere and systems would also influence reception of the company in the new market as well as any chance for success amid cutthroat competition from rival companies. After the healthy medium sized toothpaste emerged to be the best selling product, it is clear the company should increase its supplies of the brand to Indian market during the entire period. Incidentally, the target age bracket, that is, adults aged 15-64 seems to be prefer the healthy medium sized toothpaste to any other brand the company produces.
As regards market entry, it is high time the company expanded its Asian market to cover not only the Indian, Chinese, and South Korean market but also other promising markets such as Malaysia, Bahrain, and Singapore. Even in the wake of imminent expansion to these new markets, the company should still conduct a comprehensible research as regards the demographics, political and economic organizations of Malaysia, Singapore and Bahrain among other possible destinations.
Since the South Korean market, largely skewed to 15-64 age range just like India, has considerable number of prospective buyers, the healthy medium sized brand would be in high demand. However, by choosing a similar variety of SKUs, the economy’s small tube paste would be preferably best suited for kids compared to the large pump gel. The findings of the Indian market would largely guide company’s plans for the South Korean market. In the first period, the healthy medium tube gel proved more successful SKU in the Indian market compared to other sizes. Apparently, the company recorded remarkable revenues after selling over 7.9 million units. This first period trend might not repeat itself in the contemporary market given the emerging challenges. However, the company should employ modern forms of technology to enhance accessibility of most markets. In particular, online marketing and delivery of products is an effective method of not only facilitating popularity of the products but also ensuring the company adventures markets that were previously inaccessible. Adjusting the SKUs to medium and large options would enhance realization of remarkable sales of white, healthy and medium sized paste for kids and adults. The company should shift focus from giving too much attention to families. Instead, children and adults should also constitute the target group.
China has proven to be the most difficult market to penetrate. This is partly due to inability of most firms to succeed in the China market amid stiff competition from local competitors. The families were particularly difficult to penetrate as misinformation concerning foreign products affected their taste and preferences. Unpromising sales in the first period following its emphasis on children segment of the market would mean the company must change focus. The company must change tact as regards the China market. It is high time the company considered expanding its target group to encompass families and adults. Similarly, the firm should also choose a wide variety of SKUs and stop overreliance of certain SKUs. Children’s target market was the most successful in the first period following neglect of others segments of the market. Thus, there were no drastic differences in goods sold between small, medium and large SKUs. To change the undesirable results that our venture into China market has recorded throughout the simulation period, it is necessary for the firm to increase the number of different SKUs.
India and South Korea recorded positive results as the products received overwhelming sales among different customer segments. The firm should emulate the same market strategies to expand its market presence in China and the Asian continent at large. The recommended strategies would include expanding the market segment for buyers to not only include children but also encompass families, with SKUs performing the best consistently in all periods. To enhance predictability of China market, the company should come up with workable structures directed towards ensuring successful expansion beyond children segment of the market. This would enhance a possible increase in the level of sales of medium tube paste 5.3 million to 7 over million. The firm should as well shift its ambitious plans concerning the outcome of its commodities in the vast China population. In addition, the firm should never use the country’s (China’s) Gross Domestic Product (GDP) levels, Fresh Water Withdrawal Per Capita, and inflation rate as the benchmark for determining possible success in penetrating its market. Instead, the firm should take into account other benchmarks such as country’s demographics to determine their capacity to penetrate the market. As a strategy that would fundamentally help the firm to access different segments of China.
In order to increase the level of profits in every market, the firm should find workable means of reducing the cost of shipping, commodities and tariff costs. In essence, a reduction in these costs would help minimize the overall expenses incurred during production process and distribution between countries. One of the most important recommendations would be for the company to build a factory in countries such as India, China and South Korea. This will minimize the amount of expenses the firm incurs in the process of transporting raw materials as well as finished products from its parent country to various destinations. In addition, prices of the commodities will reduce to considerable levels, as there would be adequate compliance with the pricing systems and taxation system of the new destination. It will also help the country avoid unnecessary expenses in import duties among other costs related to importation of foreign commodities. India is particularly a preferred destination for building of such factories.
- Key lessons learned about the market and complexities of international marketing.
The key lessons learnt about the china market are that the market is hard to penetrate. All smiles Inc. found that for their brand of toothpaste to sell then they had to strategize their plans to fit the needs of kids. The kids were the target group in the marketing of the toothpaste. The entry of the toothpaste into the Chinese market was hard as the market was hard to penetrate. This would make it hard for the company to make sales in the country to earn a profit. The lesson learnt by the All Smiles Inc is that the Chinese market approached with caution since the Chinese people are conservative people.
The Chinese people met the All Smiles toothpaste with mixed feelings. The company had to device proper strategies to penetrate the market and sell its product. The company learnt that if it considers the Chinese children as the target group, then the sales of the toothpaste would rise. The Chinese market is hard to comprehend and, therefore, the possibility of incurring a loss would be higher as compared to making a profit. This is the main reason why the company decided that it wanted to withdraw from the Chinese market.
The South Korean market composes of people who are in the age bracket of 15-64. By focusing on the needs and dislikes of people, aged between fifteen and sixty five years then the company is able to put up campaign ads that are relevant and would easily reach the target group. Through the sales, the company discovered that the South Koreans preferred to buy the large and medium sized toothpastes. The people in South Korea do not like the small sized toothpaste. This lesson learnt would help the company to compute and formulate strategies that would enable it to increase its sales in the country. The company has learnt that changing the Stock Keeping Unit to adjust to the market in South Korea led the company to sell its white, health, economy and kids toothpaste.
By trying to internationalize and sell its toothpaste in the Asian market, All Smiles Inc discovered that the South Korean and Indian market were similar while the Chinese market was an outlier. This was to mean that the two markets were favorable to invest in while china was not. The Chinese market discovered to be inconsistent with target groups performing differently per every period. It discovered that target groups performed differently. In some period, the children market outshined the adult market. In other periods, the adult market performed better than the children market.
A crucial lesson learnt from the simulation is that for a product to sell adequately then it has to have a target group. A target group is a group whereby the sales for a particular product focused on a group. A company needs to know and understand its target group in terms of attitudes, plans and its diversity.
The company needs to be in a good positioning position to ensure that its products receive promising results. From the three markets i.e. China, South Korea and India the company discovered it needed to spell out the benefits of the product. These can be gum protection, fresh breath and the prevention from decay. The company should place its product in a good positioning position. This will make the product have an added advantage compared from other products of the same use.
A company should step up efforts to ensure that its products stand out from the rest. Two companies may manufacture and sell two similar products that have a common use, but the differentiating factor comes in the packaging. This best defined as a product strategy. In the market, a product is hard to sell if its packaging does not appeal to customers. Many business analysts say that many a times, consumers buy the packaging of the product and not necessarily the product itself. A product that is not well packaged will not receive good sales no matter how good the product is when we look at its quality. A well-designed product is more appealing to a customer than a product that is not.
Another key issue learned was that a company should increase its efforts to advertise. Advertisement should not only focus on the brand of the product but also the organization itself. Advertisement helps an organization to increase the strength of the brand name. Another issue that learned here is that while making advertisement promotions in the media, the company should consider the size of the market. It would be uneconomical, and a waste of money if a company places costly and large advertisements in the media knowing well that the market for its product is small.
Complexities of international marketing
International marketing is the opening up of new stores in other countries to increase the sales of the product. The reason for this is to grow the business and maximize the profits for the company. International marketing is a risky business venture since the company does not know how the product will sell. It is truly much possible that the company can experience losses that will be hard to recover. A company, therefore, has to make an initial assessment of the country it plans to invest. In the case for China, the company knew that it would be hard for it to penetrate the market due to the nature of the Chinese people.
Initial assessment will make the company aware of the target group that the company plans to focus on. All Smiles Inc had conducted an initial assessment of Chin where it found that China has a high Gross Domestic Product (GDP). This assessment proved that the country had high living standards for the people. They, therefore, knew that the Chinese people would be keen to check on their dental health there they were bound to buy toothpaste often. The product, however, did not perform as was expected by All Smiles Inc. This is a typical example of a complexity that comes with the internalization process. A company needs to gather information that it will use for internationalization. The information must be true and factual. The company has to gather information from a viable and reliable source. This will make a company make sound and right decisions that will help it establish stores and outlets in other country. This will make the company maximize its profits. A company can reduce these complexities by knowing where to look for data. The company should conduct a sound and solid research to ensure that the information gathered is factual and can be used to push the company to realize its desired goals.
Works Cited
Ferrell, O C, and Michael D. Hartline. Marketing Strategy. Australia: South-Western Cengage Learning, 2011. Print.
