Happy Smile’s company objective was to provide consumers with a low priced quality product. It offered numerous types of toothpastes to consumers in order to give them the types of products that they wanted or needed. We wanted to achieve strong brand awareness in each of the five countries that we entered. In order to do so we chose to promote our product through advertising and salespeople which we felt would ease the infiltration of the market. The company’s top priority was to make a profit and through all of these strategies combined we were able to achieve this goal and turn a profit at the end of the eleventh year.
By the end of the simulation Happy Smile reported successes in the markets we entered. Three of the markets entered reported a positive contribution. Total manufacturing sales reached 1,047.5 billion dollars. Most notably Brazil was our largest success with a profit of 20.4 million U.S. dollars and 23.1% share of manufacture sales, which was 497.3 million U.S. dollars. We were able to achieve an overall profit by a low cost of good sold and high brand equity. Our total cost of goods sold was 32.6%. Total brand equity achieved a score of 60. Nearly half of Brazil’s population (44.6%) was aware of our product.
The mode of entry to each country was done in such strategic manner that the company could observe how the product demand trends occurred in each market before launching the entire product line into each market. Our company strategy was introducing a moderate number of SKUs during the first period each time a new market was entered. We then observed which product launching strategies worked best in each new country. Subsequently we applied what we noticed to be the brand’s strengths into creating a suitable market strategy for our product in each country.
We initially entered Brazil because it had a large population and showed the most promise for success with the majority of the population living in urban areas. Brazil has many retail outlets which would enable Happy Smile to penetrate the market rapidly and efficiently. We then chose to enter Chile because it had a seemingly stable economy and the second highest GDP per capita, which led us to believe that they had the largest disposable income. Chile also had the highest dollar sales per outlet of the countries we entered. Chile also has the lowest percentage of the population below the poverty line. The third market we entered was Argentina because it had the highest GDP per capita which we felt would enable high sales. With a large population and a highly industrialized economy we decided to enter the market in hopes of capturing a large market share. Mexico was the fourth country we entered because it is highly industrialized with a lot of communication modes. With a lot of radios and televisions we felt that our product could be easily advertised. Also, Mexico has the highest population with access to safe drinking water which is a necessity to the toothpaste industry. We entered Peru in the final period because it has low tariffs and we had unused capacity that we felt could be used. Because we wanted to increase overall sales we entered Peru in hopes to increase brand equity and awareness. We do not plan to enter into any more markets and we hope to capture more market share and increase brand equity in the countries that we are currently selling in.