ARGENTINA- IIM

Cost Structure:

Home A B Ch Co M P

Econ/Sm/Tube/Pst $0.43 $0.34 $0.34 $0.38 $0.32 $0.36 $0.33

Econ/Md/Tube/Pst $0.53 $0.43 $0.43 $0.47 $0.40 $0.45 $0.41

Econ/Lg/Tube/Pst $0.63 $0.51 $0.52 $0.57 $0.48 $0.55 $0.49

Administrative Cost

Administrative (Percent Sales) 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

Per SKU $81 $107 $83 $70 $74 $71

Per Channel $254 $584 $252 $248 $317 $254

Per Direct Outlet $122 $146 $151 $94 $116 $97

Sales Force Expense

Sales Representative Salary $35,494 $36,969 $35,727 $21,853 $27,979 $22,347

Average Expenses $12,169 $10,702 $12,077 $5,960 $8,447

$6,095

Hiring/Training $7,606 $6,324 $8,554 $5,463 $6,863 $5,587

Fixed Costs

Distribution Center $1,014 $1,946 $755 $497 $1,056 $508

Manufacturing Plant (100mil) $9,495 $9,495 $9,495 $9,495 $9,495 $9,495

Shipping cost per unit- Home plant $0.060

Argentina Plant $0.010

Economic Indicator Current Projected

Population Growth 0.9% 0.9%

GDP Growth 2.9% 2.6%

Inflation Rate 25.7% 23.9%

Shopping Habits:-
Channel Younger Older Families Overall

Traditional 33.3% 65.3% 44.3% 46.9%

Self-Serve 32.2% 21.4% 21.0% 23.9%

Hypermarket 32.8% 11.9% 32.7% 27.4%

Web/Other 1.7% 1.4% 1.9% 1.7%

Decision Criteria for Argentina

Cross Section: Younger, Older, Families, Economy, Whitening, Healthy; 94.2% of population; 91.7% of
demand.

Criteria X-Section weight Overall weight

Price 42.3% 40.8%

Effect 36.0% 35.9%

Size 16.9% 17.0%

Texture 2.9% 3.2%

Delivery 1.9% 3.1%

Product Preferences for Argentina:

Size Delivery Texture

Small 19.4% Tube 69.7% Paste 55.6%

Medium 56.7% Pump 30.3% Gel 44.4%

Large 24.0%

Brand Purchases for Argentina:

Cross Section: Younger, Older, Economy, Whitening, Healthy; 49.5% of population; 43.4% of demand.

Cross Section Overall

Brand Awareness Purchases Awareness Purchases

Britesmile 22.6% 13.8% 20.3% 12.9%

Local 1 58.7% 64.9% 60.2% 64.5%

Regional 1 32.5% 21.3% 30.0% 22.6%

Population Selection for Argentina:

Cross Section: Older, Whitening; 5.2% of population; 3.2% of demand.

Market Share in Argentina

Economy Whitening Healthy Kids Total

Mfr. Sales (mill. ARS) 6,275.4 1,614.4 1,413.2 0.0 9,303.1

Britesmile

Local 1 61.7%

Regional 1

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