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Chile

Kristin Mol, Scott Hardin, & Gabe Delnick

Background
16.8 million people
95.4% of the population is white-Amerindians Oral hygiene market increased 4% annually

Economy
Sector Agriculture GNP % 2.6

Fishing
Mining Manufacturing

.8
16.4 12.7

Electricity, gas, water


Construction Retail

5
8 9.4

Transportation

5.8

Economy
GDP- $164,616 Million USD
Rate of Growth- 3.5% annually Average per capita income- $15,400 Distribution of wealth
Lower class -57% of population

Middle class- 31 % of population


Upper class- 12% of population

Major Industries
Copper
Timber Iron nitrate Precious metals Hydropower

Marketing Plan
Toothpaste

Target Market
Young families
Concerned with price Bulk

Not a lot of disposable income

Single people
Concerned with health

Higher paying jobs


Disposable income

Product Evaluation
Advantage
Bulk Toothpaste (save money) Whitening Toothpaste (create image)

Compatibility
Fulfills cultural need Fills target market needs

Trial ability
Tested with minimal risk

Distribution
Retail
Grocery stores Gas stations

Specialty stores

Wholesalers

Advertising & Media


Basic Message
Family based target market: Get more for your money Single based target market: Does your health matter to you?

Radio
3 spots per day

Internet
Banner ads Company website

TV
2 spots per day

Advertising Budget
$25,800

$274,700

$394,000

Televisio n Radio

Advertising Budget
Television:
$30,000 to produce ad $500 per spot @ 2 per day= $7,000 per week x 52 weeks= $364,000 per year

Internet:
$150 per month Website maintenance x 12 months= $1,800 $2,000 per month banner ad cost x 12 months= $24,000

Radio:

$850 to produce the ad


$250 per spot @ 3 spots per day= $5,250 per week x 52 weeks= $273,850 per year Total Advertising Budget- $694,500/year

Sales Promotion
Coupons
Newspaper inserts Online

Sampling
Dentists Offices Retailers

Packaging
Tubes
Health based Smaller quantity

Pumps sealed
More for less

Focused on quantity

Pricing Strategy
Estimated gross income: $18.1 million
Gross Margin ratio: 32.6% (50% markup) Large economy pump: $2.75 US or 1,480 Chilean pesos Medium economy pump: $2.15 US or 1,102 Chilean pesos

Medium Health Tube: $2.60 US or 1,333 Chilean Pesos


Small Health tube: $2.30 US or 1,179 Chilean Pesos

Questions or Comments?
Kristin Mol, Scott Hardin, & Gabe Delnick

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