1. Global Forces & CountryManager

2. Global Forces The Great Rebalancing –Emerging market growth > Developed market growth –Urban migration, growing labor force, declining birthrates The Productivity Imperative –For US, 70% of growth must come from productivity gains The Global Grid –Complex flows of capital, goods, info  Innovation & destabilizing volatility Pricing the Planet –Rising demand, constrained supplies, increased scrutiny The Market State –Increasing gap between rich & poor

3. Country Manager Global Trends Requires a 5-10-Year View Global (Re)Positioning for the Long Term CM Plan for the long-term − Decisions 1-3 = focus on awareness, gain distribution − Decisions 3-5 = build market share − Decisions 6+ = now aim to be profitable Interpreting Feedback Creating & Leveraging Brand Equity

4. Period 1 Performance Measures Company Unit Sales (mill.) Total Mfr. Sales (mill.$) Cum. Net Regional Contribution Brand Equity A96.4110.9-36.558 Awesome46.254.7-14.858 B165.1186.4-14.755 IAtePaste100.6117.1-67.756 Sonrisas42.648.7-0.234

5. Check List Contribution –Are prices & gross margin %s at least in line with competition? –Are advertising & promotion %s in line with competition (perhaps above)? –Are capacity plans consistent with sales forecasts?

6. 6 Brand Equity A set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm's customers. Aaker, Building Strong Brands, 1996.

7. 7 Leveraging Brand Equity Consumers are more likely to prefer and seek stronger versus weaker brands Consumers are willing to pay more for stronger brands (Raise price) Retailers want to stock stronger brands (Expand SKUs &/or distribution)

8. BEI Country Indexes Brand Equity Index by Country Benefit Positioning Creative Execution Price Positioning Sales Leadership Share of Mind Brand Equity Argentina7110083333965 Brazil648078414261 Chile6510079326870 Mexico6110070685071 Benefit Positioning – This factor measures how a team’s choice of SKUs reflects the demand for that benefit in the marketplace. Full credit can only be received if the SKU benefit is advertised and meets a minimum threshold for budget. Creative Execution – This factor measures how appropriate a firm’s message is for a culture and country. Full credit (100) if new ad, right culture, right language. Multiple ads are weighted by budget. Price Positioning – Must have 4 SKUs for this factor to be calculated. Basically checks the pricing vs. expected pricing in the market. Is the firm’s pricing consistent across SKUs? This factor makes sure that large tubes are more than medium, that multi-ingredient formulations are more than economy, etc. Sales Leadership – Your relative market share x 100 with max of 100. Share of Mind – A combination of your relative awareness vs. the leading awareness in a category as well as absolute awareness.

9. 9 Overall (Regional) BEI Index BEI CriteriaMeasures Product Standardization Measures the degree to which a firm’s products are standardized by comparing unique SKUs introduced to total SKUs introduced. If SKUs are the same across all countries entered, then the score is 100. Minimum of two countries and 4 unique SKUs for this factor to be calculated. Regional Diversification This measures the extent to which sales come from different countries. Must be in at least 2 countries to for this measure to be calculated. As sales are spread more evenly from all countries, this measure increases to a max of 100. Consolidating Brand Equity Weighted average of brand equity for all six countries. Weight is based on industry sales of that country. Overall Brand Equity Combines the consolidated brand equity with the product standardization and regional diversification measures.

10. 10 BEI Country & Overall Indexes Brand Equity Index by Country Benefit Positioning Creative Execution Price Positioning Sales Leadership Share of Mind Brand Equity Argentina7110083333965 Brazil648078414261 Chile6510079326870 Mexico6110070685071 Overall Brand Equity Index Product Standardization 78 Regional Diversification 90 Consolidated Country Brand Equity 65 Overall Brand Equity 73 Country & Overall BEIs should be > 70 for Marketing Differentiation Advantage Exception Analysis – Identifying Opportunities

11. Check List (Continued) BEI –Is BEI at least 70 in all countries & overall? –Is Sales Leadership higher than Share of Mind? Are net prices (& gross contribution margins) too low? Are relative expenditures on push (Sales Force, Promotion) versus pull Advertising too high? –Is Share of Mind higher than Sales Leadership? Are net prices too high? Are relative expenditures on pull Advertising versus push (Sales Force, Promotion) too high? Are targeted retailers consistent w/targeted customer segments? Is the sales force allocated effectively to ensure consistency? Is distribution penetration sufficient to reach targeted customers?

12. Sales Force Allocation Channel All Star B+B Care more Dris col EversLoc.Reg. Traditional 7002902466 Self Serve 101264918021 Hypermarket 15115906000 Web/Other Home 0330300 Wholesale 80055513 Total 4026126438629100

13. Distribution Penetration 13 Brand # Outlets Carrying Brand Total Trad. Self Serve Hyper market Web/ Other Total Outlets 1,093298100101,501 Allsmile 7571766261,001 69%59%62%60%67% Dentacare 0148566210 0%50%56%60%14% Local 1 952922801,072 87%31%28%0%71%