Caremore Company Evaluation

On Behalf of AllStar By Glenn Roose & Robert Luttio

Caremore Brands:
Clean and White: Sold in Mexico and Brazil Caregate: We have no idea or data that shows where this is sold! From this lack of data, it must e assumed that this is a newl! develo"ed "roduct line designed to ex"and their market share in the countries that the! alread! have a "resence in, to have a variet! or "roducts for market entr! into additional #atin $merican countries, or oth%

Caremore Production:
&nknown, as there is no information relating to where Caremore "roducts are "roduced% 'here is also no information regarding where Caremore is ased, or if the! are im"orting their "roducts into the ( countries the! currentl! market, or if the! have "roduction facilities in oth countries% )t is elieved that the! are ased outside #atin $merica due to the high costs the! "a! in tariffs and freight com"ared to local and regional distri utors% $long this same line of reasoning, the! most likel! have no facilities within #atin $merica since Caremore has one of the highest costs in tariffs and freight% *ther distri utors such as +vers and B,B have costs for tariffs and freight closer to those of their regional and local com"etitors, im"l!ing that the! at the ver! least have facilities in #atin $merica, if not ased there%

Distribution:
Caremore is currentl! onl! eing distri uted through h!"ermarkets% 'hese h!"ermarkets are a new st!le of store that would t!"icall! e found in large cities% 'hese are usuall! large stores with a wide variet! of goods, and the! t!"icall! "urchase their inventor! directl! through the manufacturer, in essence, ecoming a distri utor through their network of stores% Man! of the h!"ermarket chains are foreign owned or allies with a glo al distri utor, such as Wal-Mart or Carrefour% B! selling through this channel, the! avoid working with a .middle-man/ in distri uting and selling their goods% Consumers can u! -almost- factor! direct and without having to "a! too much of an additional mark-u"% 'hese h!"ermarket stores, due to their size and network, are also a le to "urchase in large 0uantities, thus are a le to negotiate a etter "rice with the manufacturer and "ass on some of these savings directl! to the consumer%

Advertising and Promotion:

)n this section, we will need to make ( assum"tions% 1% Clean 2 White is tooth"aste designed to whiten teeth% (% Caregate is asic tooth"aste% With the a ove two assum"tions, we can see that Clean 2 White is a tooth"aste that would e marketed for rightening !our teeth, which is a enefit that would e targeted to !ounger consumers% Caregate is tooth"aste that is marketed as a asic "roduct for dental care% 3ue to the fact that it is a asic formula, the enefit would e a lower "roduction cost for the com"an! and a lower "rice for the consumer% 'his would e targeted towards families% 'he chart listed elow gives us a reakdown of the "roduct, enefit and target grou"s as defined ! $llsmile% We elieve this to e true for Caremore as well%

Source: Countr! Manager

$s we continued to research Caremore and the Clean 2 White rand, we were a le to deci"her the amounts, in terms of local currenc!, that is eing s"ent to advertise each rand in Brazil and Mexico% 'he charts elow show how Clean 2 White com"are to other rands in terms of advertising funds%

Market Share:
We can see that in Brazil, Clean 2 White has a 45%56 share of the market, with onl! one com"etitor, +versmile, in the "roduct t!"e it sells% Clean 2 White holds roughl! 17%56 of all market share overall with its one "roduct offering%

)n Mexico, we can see that there is onl! one su""lier of whitening tooth"aste in the market, and that is Clean 2 White% With that one "roduct, Caremore maintains roughl! ((%86 of Mexico9s tooth"aste market overall%

'he chart elow shows overall market share as roken down ! manufacturer and countr!% We can see that the num ers for Brazil and Mexico are slightl! different for Caremore than in the "revious charts% )t is "ossi le that this difference can e attri uted to .Caregate/, ut again, we have no additional information on the Caregate rand that can su""ort this assum"tion%

Sales Force Expenditures:

Caremore was one of the more aggressive investors in terms of sales force, most likel! due to them not eing locall! ased or having an! local facilities% 'he figures elow com"are the amount of mone! s"ent on sales "ersonnel ! each manufacturer in the Six #atin $merican countries% 'hese costs include oth direct sales as well as indirect and su""ort functions% 3ue to Caremore using h!"ermarket marketing as its ma:or distri ution method and ased on the assum"tion that the! have no real local "resence in Brazil or Mexico, there is a definite need to invest more in sales, es"eciall! to motivate vendors to carr! their "roduct%
Sales Force b Countr
Consolidated! Period "
SF +x"% ;mill%&S3< $rgentina Brazil Chile Mexico Beru Cenezuela *verall >%1 17%4 (%1 5%1 8%7 8%@ AA%( $ll Star Care more @%8 8%5 (%1 A%4 3ris col 8%4 >%5

B,B 8%?

+vers A%4

#oc% 1%> (%8 8%7 1%> 8%> 8%A 4%>

=eg% 1%( A%( 8%@ 8%@ 8%1 @%@

1%4

5%1

?%8

A%4

Countr! Manager team-8@