Chile Marketing ReportAllSmile•Ryan Gardner •Lizzy Smith•Tom Bredin

Chile

Social Factors

• Low infant mortality rate• Long life expectancy

-Age 80 (Female)-Age 73 (Male)

• Stable population growth rate• Young population

Economy

• Second highest per capita Gross Domestic Product (GDP) in Latin America

• High GDP growth rate• Lowest Latin America poverty rate• Exporting nation• Member of MERCOSUR• Currency has strengthened against the dollar

Economic FactorsPopulation(Millions)

Population Growth

GDP Growth Inflation Rate

Mfr Sales/Toothpaste

Argentina 40.3 1.0% 5.2% 5.0% 172.2

Brazil 190.4 1.3% 3.5% 6.0% 491.4

Chile 16.2 0.9% 12.5% 5.3% 112.3

Mexico 108.8 1.2% 5.2% 3.5% 255.2

Peru 28.6 1.4% 4.6% 3.0% 35.6

Venezuela 26.0 1.4% 12.0% 12.0% 28.6

Competition

• Local One has the largest market share• Regional One has 2nd largest market share• Britesmile is the only global competitor

Prior to EntryEconomy White Healthy Kids Total

Unit Sales (Mill.) 45.2 8.8 29.6 0.0 83.6

Britesmile 0.0% 100.0% 0.0% 0.0% 10.5%Local One 69.5% 0.0% 69.8% 0.0% 62.3% Local OneRegional One 30.5% 0.0% 30.2% 0.0% 27.1%

Regional One

•No kids market established•Low competition in whitening market

Target Market

• Establish a Kid’s variation of Allsmile

• Young/Whitening because only offered in one market

• Target economy toothpaste market

Products We Plan To Offer• Young Whitening: Medium, Tube, Paste

• Family/Kids: Medium, Pump, Gel

• Family/Economy: Medium, Tube, Paste

Younger-WhiteningSize: Delivery: Texture:

Small 40.0% Tube 70.0% Paste 60.0%

Medium 55.0% Pump 30.0% Gel 40.0%

Large 5.0%

Family/KidsSize: Delivery: Texture:

Small 30.0% Tube 25.0% Paste 10.0%

Medium 35.0% Pump 75.0% Gel 90.0%

Large 25.0%

Families-EconomySize: Delivery: Texture:

Small 5.0% Tube 60.0% Paste 40.0%

Medium 60.0% Pump 40.0% Gel 60.0%

Large 35.0%

PricingArgentina Brazil Chile Mexico Peru Venezuela

Approx. Cost

Reduction

9% 13% 11% 19% 26% 28%

•$104 Million (USD) currently being spent on toothpaste in Chile

•Economy paste tube: 700 (Ch $)

•Whitening Tube Paste: 800 (Ch $)

•Kids Pump Gel: 830 (Ch $)

DistributionRetail Sales (Millions USD)

Traditional Self-Serve Hyper Market

Web/ Other Home

% Direct

Chile 139.7 40.2% 25.9% 32.1% 1.8% 29.3%

•Preferences are evenly distributed

•Target almost all distribution channels

Advertising

• Our ads will be relevant and connect to the Chilean people.

• Ads for:-Younger/Whitening -Families/Economy -Families/Kids.

• Allsmile currently has ads available for Whitening and Basic, we can use those to the Chile market.

Plant Decision

Allsmile must build a plant in Chile:• Central Location• Exchange Rates• Shipping Cost• Labor Costs• Tariffs

Exchange RatesUSA Dollar (USD)

Argentina Peso(ARS)

BrazilReal(BRL)

ChilePeso(CLP)

MexicoPeso(MXN)

PeruSol(PEN)

Venezuela Bolivar(VEB)

USA 3.1447 2.2936 558.66 11.4943 3.2680 2341.92

Argentina 0.3180 0.7294 177.65 3.6552 1.0392 744.73

Brazil 0.4360 1.3711 243.58 5.0115 1.4248 1021.08

Chile 0.0018 0.0056 0.0041 0.0206 0.0058 4.19

Mexico 0.0870 0.2736 0.1995 48.60 0.2843 203.75

Peru 0.3060 0.9623 0.7018 170.95 3.5172 716.63

Venezuela 0.0004 0.0013 0.0010 0.2385 0.0049 0.0014

ShippingUSA Plant Argentina

PlantBrazil Plant

Chile Plant

Mexico Plant

Peru Plant

Venezuela Plant

Argentina 0.030 0.005 0.010 0.010 0.020 0.010 0.010

Brazil 0.030 0.010 0.005 0.010 0.020 0.010 0.010

Chile 0.030 0.010 0.010 0.005 0.015 0.010 0.010

Mexico 0.010 0.020 0.020 0.015 0.005 0.010 0.010

Peru 0.030 0.010 0.010 0.010 0.015 0.005 0.010

Venezuela

0.030 0.015 0.010 0.010 0.010 0.010 0.005

Tariffs

• MERCOSUR – Argentina– Brazil– Chile

• FREE TRADE AGREEMENT WITH U.S.A• FREE TRADE AGREEMENT WITH CHINA

Toothpaste Sales (Last 6 Years)Country 5 Years

Ago4 Years Ago

3 Years Ago

2 Years Ago

Previous Year

Current Year

Sales Per Capita (USD)

Arghentina

122 130 135 132 142 152.6 3.82

Brazil 385 395 390 410 423 454.6 2.42

Chile 59 65 69 78 78 83.1 5.16

Mexico 135 150 175 189 209 228.1 2.12

Peru 23 25 26 28 31 35.1 1.24

Venezueala

23 25 27 22 23 26.3 1.02

Why Chile?

• Transportation Infrastructure• Distribution System• Economic Infrastructure• Low Cost of Labor• Centrally Located• Steady Signs of Growth