Country Manager Simulation Guide

Free Winning Guide and Tips

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Toothpaste Simulation - The Best Free Winning Guide With Helpful Tips to Win the Simulation

Top 10 Winning Tips

Start production in all the 6 countries in round 1-2-3
Check the population of each country to calculate Ads, Promo, Sales force
Check the prices of competitors to set prices, also keep track of production cost to set prices to get higher sales and profit (add 50%-200% of production cost)
Check the language of each country to set ad message, also check to spending for ads of competitors to get ad budget
Apply strong advertising strategy to sell better
Balance between sales force and promotion cost
Again, keep track of population and competitors to set sales force
Check production cost in each country to decide produce domestically or outsourcing
Increase production capacity to lower production cost and meet increasing demands
Check total spending and contribution forecast to adjust strategy

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INTERNATIONAL MARKETING SIMULATION

Country Manager focuses on the issues of international market entry and expansion. In CountryManager, students will learn the importance of targeting consumer segments and how to best position brands for the chosen segments. Students will gain experience in market entry, segmentation and targeting, along with the 4Ps in an international context. Two scenarios are available for different regions: Latin America or Asia.

PLANNING & ANALYSIS
- Use market research effectively
- Create a regional marketing plan
- Monitor implementation of the plan
MARKET ENTRY
- Evaluate country market opportunities
- Identify steps in market entry
- Distinguish standardization/localization
FINANCIAL
- Evaluate plant location in the region
- Exchange rates
- Country and regional contribution statements
MARKET SEGMENTATION
- Define “segment” in marketing terms
- Identify segments in CountryManager
- Match target segments with SKUs
- Advertise to target segments
DISTRIBUTION
- Flow of goods from manufacturer to consumer
- Identify differences among channels
- Effect of MSRP and discounts on retail price
- Choose appropriate mix for channel
TEAMWORK
- Allocate responsibilities fairly
- Complete assigned tasks on time
- Communicate problems and plans
- Collaborate with other team members

Students take on the role of Country Manager for a multi-national consumer products company , specifically marketing their toothpaste brand in the countries in their region. The domestic market has matured, and the head of the Consumer Healthcare Division of a major consumer products company has identified a region as the best potential source of future growth. By playing the role of a country manager, students will decide how best to enter this potentially lucrative market.

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PART 2

Country Manager Simulation

- Select country to build plants for production (and expansion of production)

- Check the cost of production in each country to decide production at home or outsource

- Check the market population of each country to calculate ads, sales force and promotion

- Check the report to analyze the price, ad, sales force of competitor

- Production: more products, more sales

- Pricing based on cost of production, note to analyze competitors prices

- Adjust Advertising campaign for all the 4 customer segments

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PART 3 - Country Manager Strategy

Round 1

- Enter 1-2-3 country

- Country to build new plants = Mexico, Argentina or Brazil (to have lower production cost)

- Pricing = cost + 100-200% = to get good profit margin, also need to check competitor prices

- Check report to calculate sales force and promotion, also need to check total cost

- Add new capacity for production, need to check total sales / sold units to increase capacity each round

Round 2

- Enter 1-2-3 country

- Country to build new plants = Mexico, Argentina or Brazil (to have lower production cost)

- Pricing = cost + 100-200% = to get good profit margin, also need to check competitor prices

- Check report to calculate sales force and promotion, also need to check total cost

- Add new capacity for production, need to check total sales / sold units to increase capacity each round

Country Manager Simulation for International Marketing Courses: A Strategic Guide

The Country Manager Simulation is a comprehensive, interactive tool designed for international marketing courses. It spans 10 rounds, each focusing on the strategic goal of enhancing sales and profitability to achieve a higher Business Effectiveness Index (BEI). Below are the top 10 strategic tips for excelling in this simulation:

Geographical Expansion:
- Prioritize expanding your operations into all six available countries. Broader market presence translates to increased sales and higher profits.
Strategic Pricing:
- Set your product prices by carefully considering competitor pricing, production costs, and desired profit margins. This competitive pricing strategy ensures market relevance and profitability.
Targeted Advertising:
- Customize advertising efforts across the four market segments. Regularly review the advertising budget and adjust based on insights from the previous round’s reports. This ensures efficient allocation of marketing resources.
Sales Force and Promotion Strategy:
- Make informed decisions on sales force allocation and promotional activities by analyzing the population demographics and maintaining a balanced approach with advertising expenditures. Effective distribution of resources enhances market penetration.
Cost-Efficient Production Expansion:
- Select countries for production expansion strategically to reduce manufacturing costs in subsequent rounds. Consider regions like Brazil, Argentina, and Mexico, where production costs are typically lower.
Marketing Spend Analysis:
- Regularly review the marketing spending analysis to ensure cost-effectiveness. This helps in identifying areas where spending can be optimized for better returns.
Proforma Sales and Profit Forecasting:
- Utilize contribution forecasts to anticipate sales and profit margins. This predictive analysis aids in making data-driven decisions that align with financial goals.
Economic Outlook Assessment:
- Continuously monitor the economic outlook, focusing on demand growth and inflation rates. This macroeconomic understanding helps in adjusting strategies to maintain competitiveness and profitability.
Competitor Brand Analysis:
- Keep a close watch on competitor brands to inform your branding strategies for upcoming rounds. Understanding competitor movements allows for proactive adjustments in marketing and product positioning.
Competition Report Review:
- Analyze the competition report meticulously to gauge their sales performance. Adjust your sales force distribution for each channel based on these insights to ensure optimal coverage and effectiveness.

By adhering to these strategic guidelines, you can effectively navigate the complexities of the Country Manager Simulation, making informed decisions that drive sales growth and enhance profitability across diverse international markets.

PART 4

CountryManager Simulation

Academic Guide to Performance Analysis

& Practical Decision Support

I. Introduction

After completing your first active decision-making period in the CountryManager simulation, you now have access to crucial performance data. This information, accessible under the "Company" tab, is essential for analyzing past results and optimizing strategic decisions in future periods.

This guide will walk you through the key analytical reports available, interpret their significance, and provide practical steps to apply insights effectively.

II. Dashboard Overview: A Snapshot of Regional and Country-Level Performance

📊 Location: Company → Dashboard

The Dashboard provides both visual summaries and detailed breakdowns of performance indicators.

Key Metrics:

Brand Equity Index (BEI) – Measures brand strength in each country.
Unit Sales & Manufacturing Sales
Profit or Loss by Region and Country

How to Use:

Toggle between individual country view or multi-country comparison.
Identify where sales have occurred or failed (e.g., no sales in Brazil in Period 0, but sales in Period 1).
Use trend graphs to visualize progress over time.

✅ Practical Tip: Low BEI or poor sales in a country may indicate inadequate advertising or poor channel allocation. Investigate causes and revise your marketing mix.

III. Performance Summary: Quantitative Insights at a Glance

📊 Location: Company → Performance Summary

This tab provides a tabular view of quantitative results in USD (regardless of local currencies used in decisions).

Key Data Points:

Entry Timing per country
Sales Volume and Market Share
Contribution Margin by Country & Region
SKU Prices, Allowances, and Distribution Metrics

✅ Practical Tip: Compare market entry time and resulting market share. Late entry with high investment may not yield efficient ROI—optimize entry timing in new markets.

IV. Brand Equity Index (BEI): Tracking Brand Growth Over Time

📊 Location: Company → Brand Equity Index

This report allows you to assess your BEI progression over time by country and region.

Example Insight:

If BEI in Argentina improved from Period 1 to Period 2, while Brazil lagged behind, evaluate whether the marketing spend, channel mix, or product positioning was different.

✅ Practical Tip: Consistently improving BEI indicates effective brand building. Focus on markets with upward BEI trends and revise strategy in stagnant or declining markets.

V. Consolidated Financial Summary: Analyze Cost Structures and Profitability

📊 Location: Company → Consolidated

This financial report combines USD-based performance figures with percentage-based analysis to help assess overall efficiency.

Critical Ratios to Watch:

Cost of Goods Sold (COGS) / Sales: Aim for < 50%
Advertising / Sales: Balance brand building with financial prudence
Contribution Margin: Measure efficiency before fixed costs

Sample Analysis:

COGS at 57% = ❌ Too High → Suggests inefficient production (consider shifting to local manufacturing)
Advertising at 30% of sales = ⚠️ Excessive → Consider reducing spend or improving message efficiency

✅ Practical Tip: Use percentage breakdowns to benchmark performance year-over-year or against competitors. Prioritize improving gross margin and reducing overhead.

VI. SKU Contribution: Evaluate Product-Level Profitability

📊 Location: Company → SKU Contribution

Understand unit sales, revenue, discounts, COGS, and gross margin for each Stock Keeping Unit (SKU).

Definitions:

Gross Margin = (Revenue – COGS) / Revenue
(Excludes marketing/admin costs)

✅ Practical Tip: Target gross margins above 30% by:

Reducing manufacturing costs (local plants)
Adjusting prices and promotional allowances
Eliminating unprofitable SKUs

VII. Sales Report: Channel-Level Sales Effectiveness

📊 Location: Company → Sales Report

This report is ideal for analyzing salesforce efficiency across different distribution channels.

Example Insight:

If 6 sales reps in Hypermarkets deliver significantly higher sales than in Self-Serve, this suggests:
- Channel strength in consumer preference
- Misallocated reps in low-performing channels

Actionable Strategy:

Reallocate sales reps from Self-Serve and Web (low return) → to Hypermarket and Wholesale (high return)
Monitor changes in next period’s sales report to confirm effectiveness

✅ Practical Tip: Periodically conduct channel-level ROI assessments to optimize salesforce deployment.

VIII. Production Report: Monitor Plant Utilization and Output

📊 Location: Company → Production

Track the volume of units processed, plant setup status, and local production output.

Application:

In early periods, newly established plants (e.g., in Peru) may not show substantial data.
Over time, monitor unit processing trends, cost efficiencies, and capacity planning.

✅ Practical Tip: Use this report to determine when to scale production or defer capacity expansion.

IX. Conclusion and Strategic Application

The Company Tab is your command center for performance evaluation in CountryManager. It provides rich, multifaceted insights that enable evidence-based decision making.

Summary of Actions for Next Period:

Insight Area	Action
Weak BEI in Brazil	Increase advertising, improve channel mix
High COGS	Shift to local manufacturing
Low Gross Margin	Reprice SKUs, reduce discounts
Poor Sales Rep ROI	Reallocate reps to high-performing channels
High Ad Spend	Optimize campaigns, test messaging
Underutilized Production	Monitor plant capacity, adjust orders

By systematically analyzing these reports, you will build the capability to make strategic, data-driven decisions that enhance profitability, market share, and long-term brand equity.

PART 5

Here is a detailed, academic-style, and practical English guide based on the original talk transcript. This version is designed for students and professionals engaging with the CountryManager Simulation game, especially for making initial decisions about entering Brazil.

CountryManager Simulation: A Strategic Guide to Research & Decision-Making for Entry into Brazil

1. Introduction

This guide offers a structured approach to making informed, data-driven decisions in the CountryManager simulation, focusing specifically on market entry into Brazil. It integrates research strategies, decision-making frameworks, and implementation practices to help participants optimize outcomes.

2. Step-by-Step Decision Framework

Step 1: Market Entry Selection

After evaluating various country options, we select Brazil as the target market for entry in the first simulation period. This decision is based on market potential, consumer segmentation, and competitive dynamics.
Access this via the Decisions tab > Markets.

Step 2: Understanding Consumer Preferences

To make effective marketing mix decisions, begin with deep consumer research.

2.1 Use the 'Consumers' Tab

Navigate to:
Consumers > Decision Criteria > Select Brazil

2.2 Evaluate Overall Market Preferences

Review the weighted importance of product attributes across the entire Brazilian market:
- Price: Most important
- Effectiveness
- Tube Size
- Texture & Delivery: Lesser importance

2.3 Segment Demand by Product Category

Write down demand percentages per product type:

Economy: 44.9%
Healthy: 28.8%
Whitening: 18.3%
Kids: 7.9%

📝 Action: Focus on Economy and Healthy categories due to highest consumer demand.

Step 3: Assess Competitive Intensity

Navigate to:
Competition > Pricing > Brazil

3.1 Count Existing SKUs

Identify number of SKUs per segment:

Economy: 4 SKUs (2 competitors)
Healthy: 1 SKU (1 competitor)
Whitening: 10 SKUs
Kids: 0 SKUs

📝 Insight: While Economy has high demand, it also has more competitors. Healthy offers both high demand and low competition — an ideal strategic entry point.

Step 4: Strategic Positioning & SKU Development

4.1 Identify Existing Competitor Product

Current offering: Healthy Medium Tube Paste (HMTP) by a regional company
Retail Price: 5.7 BRL
Shelf Allowance: 6.8%

4.2 Pricing Tiers and Brand Positioning

Local brands: Lowest price, low quality perception
Regional brands: Moderate price, regional reach
Global brands (like AllSmile): Higher price, high quality perception, highest shelf allowances (12.8% – 14.8%)

📝 Strategy:

Compete as a global brand
Launch two SKUs:
- Medium Tube Paste (to directly compete)
- Large Tube Paste (to fill market gap)

Step 5: Determine Target Segment & Tube Size Preferences

Go back to:
Consumers > Decision Criteria > Healthy > By Segment

5.1 Identify Top Demographic

Families: 18.6% demand (largest segment)
Older Adults: 6.1%
Younger Adults: 4.1%

5.2 Tube Size Preferences of Families

Medium: Popular, but already offered
Large: Over 33% demand, no competitors
Small: Less demand

📝 Decision:

Target Families in Brazil
Launch Healthy Medium Tube Paste (HMTP) and Healthy Large Tube Paste (HLTP)

Step 6: Set Pricing Strategy

6.1 Medium Tube

Competitor Price: 5.7 BRL
Production Cost: 3.37 BRL
Recommended Price: 6.7 BRL (for profit & brand premium)
Shelf Allowance: 15% (to gain initial shelf space)

6.2 Large Tube

Cost Increase: +15% (~0.53 BRL more)
Recommended Price: 7.7 BRL (15% above medium)
Shelf Allowance: Same as medium (15%)

Step 7: Advertising Strategy

Navigate to:
Competition > Advertising > Brazil

7.1 Benchmarking

Competitor Ad Spend: 17M to 52M BRL
Benchmarking competitor with similar positioning (Healthy-Family): 35.3M BRL

📝 Decision:

Target Audience: Families
Language: Portuguese
Budget: 35.7M BRL

Set this via:
Decisions > Advertising > Create Campaign

Step 8: Distribution & Promotion Strategy

8.1 Promotion Budget

Navigate to:
Competition > Promotion

Range: 6.5M – 29.4M BRL
Recommended: 7M BRL (conservative starting point)

8.2 Salesforce Allocation

Navigate to:
Competition > Salesforce

Range: 34–125 sales reps
Initial allocation: 30 reps, distributed evenly across channels (6 reps/channel)

Set this via:
Decisions > Distribution

📝 Action:

Promote in all channels
Monitor performance to optimize in future periods

Step 9: Production Planning

Production setup takes one year. Select a manufacturing location strategically.

9.1 Example: Argentina

Cost saving: 0.10 BRL per tube
Initial recommended capacity: 50 million units

📝 Tip:
Even though production won’t start until Year 2, setting capacity early ensures readiness and cost control.

3. Final Notes & Best Practices

Always Save Decisions after each update
Record All Research Insights in a notebook or spreadsheet
Validate with Cross-tabs under the "Consumers" tab for refined targeting
Monitor Competitor Movements every period (price, SKU count, advertising)
Reevaluate SKUs if competitors enter your segment or if consumer behavior shifts

4. Conclusion

This structured guide supports the development of a winning market entry strategy in Brazil for the CountryManager simulation. By combining consumer insights, competitive intelligence, and calculated financial decisions, you position your brand for sustainable success.

Use this methodology for other countries and product types as your simulation progresses.

Would you like this exported as a PDF or Word file for classroom or team distribution?

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