Country Manager Strategy

Period 1

Market Entry- Simultaneously enter the Mexico and Brazil market. The logic
behind this strategy is to enter the largest markets first. Mexico is close to our
home market and thus is a logical first step for a new market. Shipping costs to
Mexico are low and because of the NAFTA agreement there are no tariffs.
However, we also will enter Brazil, which is the market we identified to be the
most cost-effective country for building a plant when factoring in physical
location, production and shipping costs, tariffs as well as being a major market.
Furthermore, both Markets have a high GDP per capita.

Distribution- In both Brazil, we will distribute through all 5 channels

(traditional, self serve, hypermarket, web and whole.), which we believe will be
both cost effective and more efficient. We will promote only in the former two
channels.

In Mexico we also believe it will be most efficient to distribute in all possible

channels: Promotion budget (of 14 million MXN) will be used for traditional and
hypermarket channels.

SKUs & Pricing- In Mexico we intend on introducing 3 SKUs (EMTP, WMTP,

HMTP), all priced above the local average but below the average pricing of
international brands. They will be priced (in MXN) at 15.99 (1%), 21.99 (2%),
22.99 (1.5%), respectively.

In Brazil we also plan to introduce 3 SKUs (EMTP, WMTP, WLTP). We will apply
the same pricing strategy as in Mexico. They will be priced (in BRL) at 2.79
(2.5%), 3.39 (2%), 3.99 (3%), respectively.

Advertising- In Mexico we will target families with Spanish ads that feature the
white toothpaste line. For Year 1 we will allocate a budget of 22 million MXN.

In Brazil we will target families with two separate campaigns. They will be
Portuguese language ads featuring the economy and healthy toothpaste lines
with a budget of 4 million BRL each, respectively.

Plant- We have identified Brazil to be the most cost-effective and strategic

location for our plant, being also in one of our key markets. For the first year we
will have an initial capacity of 45 million units.
Period 2

Market Entry- Enter the Argentinian market. Argentina is another large market,
which we believe has potential and is ideally situated next to Brazil with no
tariffs (thanks to MERCOSUR), which allows for lower COGS.

Distribution- In both Brazil, we will maintain the number of sales people in the
existing channels. For Mexico we will stop distributing in the self-service and
web channels. In Argentina we will distribute in all channels and adjust
accordingly in the next period.

SKUs & Pricing- For both Mexico and Brazil we will slightly increase our prices
based on inflation and keep our allowance levels steady. However, for the Large
white toothpaste in Brazil we will keep the price the same but reduce the
allowance by 1%. By doing this we want to see if this SKU will become more
attractive to Brazilian consumers.

For Argentina we will similarly introduce 3 SKUs (EMTP, WMTP and HMTP),
with a similar pricing strategy as in the previous two markets. They will be
priced (in AGP) 7.59 (1%), 8.89 (1%), 8.89 (1%), respectively.

In Brazil we also plan to introduce 1 additional SKU (EMTP, WMTP, WLTP,

ELTP). We will apply the same pricing strategy as in Mexico. They will be priced
(in BRL) at 2.79 (2.5%), 3.39 (2%), 3.99 (3%), 3.59 (2%) respectively.

Advertising- In Mexico we will update the existing ad and add an additional ad

featuring the healthy line and target families. The budget will be 4 million and 8
million MXN, respectively.

In Brazil we will remove existing ads and replace with one new ad that targets
Families with the economy line. The budget for this will be 6 million BRL.

In Argentina we cut costs by reusing existing ads from Mexico, because

Argentina is also a Spanish speaking country. These ads will target young people
with the white line and families with the healthy line. Budget will be 4 and 8
million, respectively.