Country Screening Project

Katie Griggs February 15, 2015 Project Part 1: Global Screening and Country Selection Dr. Okoroafo MKTG6400-901

I. Introduction The product, Pampers disposable diapers, was chosen because demand for diapers

should remain steady for many years to come. Although some Eastern cultures are attempting to potty train from birth, most cultures wait to begin training until children are anywhere from a year and a half to four years old. According to newlddscenter.com, a typical baby will go through approximately 2,750 diapers per year.

Pampers are produced in two diaper plants in Pennsylvania and Missouri. The countries screened include Italy, Spain, Germany, Netherlands, France, and the

United Kingdom. Two of the most important factors of the screening are the number of births in each country and baby product sales growth. As the number of babies available for diapers increases, so does the opportunity for sales. Other factors considered include inflation rates, population growth rates, contraceptive use, and fertility rates. The data used were found using searches on various sites provided on the syllabus, such as FITA, World Bank Data, UN Data, and Google.

The country selected after conducting the screening is Germany.

II.

.

Indicators Annual Diaper Sales; Micro

a. Year of Data: 2014 b. Explanation: Total diapers (nappies) sold in each country for one year ending June

29, 2014. c. How Measured: Million Euros d. Why Chosen: To illustrate current market sales e. Interpretive Direction: The higher, the better. Current sales show that there is an

existing market. Although competitive, it shows a need for the product. f. Source: All information from: "Statistics about 'baby, Product, Sales, Value' I

Statista Search." Statista. Web. 12 Feb. 2015. <http://www.statista.com/search!?q=baby product sales value>.

. Number of Major Advertising Agencies, Micro a. Year of Data: 2015 b. Explanation: Total number of major advertising agencies located in each country c. How Measured: Units d. Why Chosen: To examine marketing options available e. Interpretive Direction: The higher, the better. If more advertising agencies are

available within the country, there are more opportunities to promote the product. f. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The

Federation of International Trade Associations website on February 12, 2015: fita.org

3. Fertility Rate, Mirco

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a. Year of Data: 2011 b. Explanation: Average number of births per woman c. How Measured: Units d. Why Chosen: Allows for a detailed look at how many children each woman will

give birth to e. Interpretive Direction: The higher, the better. The higher the number of births per

woman, the more babies available to wear diapers. f. Source: Detailed database search. (n.d.). Retrieved from UN Data on February 12,

2015:http://data.un.org/Data.aspx?d=SOWC&f=inlD%3a127

. Contraceptive Use, Micro a. Year of Data: 2011 b. Explanation: Women utilizing birth control methods c. How Measured: Percentage

d. Why Chosen: To show how many women use common birth control methods e. Interpretive Direction: The lower, the better. If women are not utilizing birth

control, they are more likely to become pregnant. Prevalent contraceptive use should negatively impact the number of babies born.

f. Source: Detailed database search. (n.d.). Retrieved from UN Data on February 12, 2015:http://data.un.org/DocumentData.aspx?id=356

, Annual a.

b.

C.

d.

e.

f.

Number of Births, Micro Year of Data: 2011 Explanation: Total number of births in a country per year How Measured: Units Why Chosen: To examine the number of newborn babies in each country per year Interpretive Direction: The higher, the better. As more babies are born, more diapers are needed. Source: Detailed database search. (n.d.). Retrieved from UN Data on February 12, 2015:http://data.un.org/DocumentData.aspx?id--316

. Annual a.

b.

C.

d.

e°

f.

Sanitary Articles Imported, Micro Year of Data: 2013 Explanation: Total pounds of sanitary items imported into each country each year How Measured: Kilograms Why Chosen: To determine the quantity of imports each country already relies on for this product segment Interpretive Direction: The higher, the better. As each country relies on imports of sanitary supplies, it confirms a need for the product segment. Source: Detailed database search. (n.d.). Retrieved from UN Data on February 12, 2015: http://data.un.org/Data.aspx?q=diapers&d=ComTrade&f--11 Code%3 a49%3bcmdC ode%3a481840

° Baby Product Sales Growth, Micro a. Year of Data: 2014 b. Explanation: Sales growth or decline of baby products

c. How Measured: Percentage d. Why Chosen: To indicate the direction of the baby product market per country e. Interpretive Direction: The higher, the better. As product sales increase, it shows a

need for this product category f. Source: "Baby Products Sales Growth in Europe 2014 1 Statistic." Statista. 29 June

2014. Web. 12 Feb. 2015. <http://www.statista.com/statistics/332541/sales-growth- baby-products-europe/>.

. Taxes a.

b.

C.

d.

e.

f.

on Imports, Micro Year of Data: 2015 Explanation: Taxes imposed on imports for each country How Measured: Percentage Why Chosen: To determine additional charges passed along to the customer at purchase point Interpretive Direction: The lower, the better. As the tax declines, the lower the impact on total purchase cost to the consumer. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The Federation of International Trade Associations website on February 12, 2015: fita.org

. Inflation Rate, Macro a. Year of Data: 2015 b. Explanation: To measure changes in prices due to inflation c. How Measured: Percentage

d. Why Chosen: To measure increases or decreases in prices e. Interpretive Direction: The lower, the better. Lower inflation rates indicate that

prices will not fluctuate much in the market. f. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The

Federation of International Trade Associations website on February 12, 2015: fita.org

10. Unemployment Rate, Macro a. Year of Data: 2015 b. Explanation: Percentage of people who are without jobs c. How Measured: Percentage d. Why Chosen: To indicate ratio of the country's people without jobs e. Interpretive Direction: The lower, the better. This will impact funds available to

consumers to purchase diapers. f. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The

Federation of International Trade Associations website on February 12, 2015: fita.org

11. Political Stability and Absence of Violence / Terrorism, Macro a. Year of Data: 2015 b. Explanation: Measure perceptions of the likelihood of political instability and/or

politically motivated violence, including terrorism. c. How Measured: Scale of-2.5 to 2.5

d. Why Chosen: This is an important factor for a US based company to consider when entering foreign markets, as companies want to avoid becoming a target.

e. Interpretive Direction: The higher, the better. Countries with higher scores are more stable and are less likely to see violence.

f. Source: All information from: Detailed database search. (n.d.). Retrieved from The World Bank on February 12, 2015: info.worldbank.org/governance/wgi/index.aspx#reports

12. Tax Rate, Macro a. Year of Data: 2015 b. Explanation: Measure of the taxes imposed on everyday products in each country c. How Measured: Percentage d. Why Chosen: The tax rate impacts the final purchase price to consumers. e. Interpretive Direction: The lower, the better. As the tax rate decreases, the cost to

the consumer will be lower. f. Source: All information from: Global Trade Portal. (n.d.). Retrieved from The

Federation of International Trade Associations website on February 12, 2015: fita.org

13. Purchasing Power Parity Gross National Income Ranking, Macro a. Year of Data: 2013 b. Explanation: Gross national income rankings using the purchasing power parity

method c. How Measured: Rankings d. Why Chosen: To show gross national income rankings which indicate income level

rankings for each country e. Interpretive Direction: The lower, the better. The lower ranking countries have the

highest gross national income. f. Source: Detailed database search. (n.d.). Retrieved from The World Bank on

February 12, 2015: http://databank.worldbank.org/data/download/GNIPC.pdf

14. Corruption Perception Index, Macro a. Year of Data: 2014 b. Explanation: Measure of corruption level of public sectors c. How Measured: Scale of 0-100 d. Why Chosen: Examines the corruption level in the part of the economy controlled

by government e. Interpretive Direction: The higher, the better. Lower scores indicate more

corruption; higher scores indicate less corruption. f. Source: "How Corrupt Is Your Country?" 2014 Corruption Perceptions Index. Web.

12 Feb. 2015. <http://www.transparency.org/cpi2014/results>.

15. Debt as a Percentage of Gross Domestic Product, Macro a. Year of Data: 2013 b. Explanation: Ratio between a country's government debt and its gross domestic

product c. How Measured: Percentage

d. Why Chosen: To examine each country's ability to pay back debts e. Interpretive Direction: The lower, the better. Countries with a low percentage are

able to produce and sell good and services well enough to pay back debts. f. Source: "World Economic Outlook Database April 2013." International Monetary

Fund. Web. 15 Feb. 2015.

16. Population Growth Rate, Macro a. Year of Data: 2014 b. Explanation: Measure of a country's population growth or decline c. How Measured: Percentage d. Why Chosen: As a country's population grows, there are more people who could

participate in the production of babies. e. Interpretive Direction: The higher, the better. As population grows, so do the

number babies who need diapers. f. Source: All information from: The Worm Fact Book. (n.d.). Retrieved from the

CIA on February 15, 2015: https://www.cia.gov/library/publications/the-world- factbook/fields/2002.html

RAW DATA MATRIX

Micro Indicators

1 Annual Diaper Sales (million Euros) The htgher, the better

372

4 Contraceptive Use as Percentage The lower, the better

5 AnnualNumber of Births The htgher, the better

6 Annual Samtary Articles Imported (in kg) The htgher, the better

7 Baby Product Sales Growth The htgher, the better

8 Taxes on Imports The lower, the better

Macro Indicators

9 Inflation Rate The lower, the better

10 Unemployement Rate The lower, the better

11 Political Stability & Absence of Violence/Terrorism The htgher, the better

12 Tax Rate The !ower, the better

13 PPP GNI Ranking The lower, the better

14 Corruption Perception Index Score The htgher, the better

15 Debt as Percentage of GDP The lower, the better

16 Population Growth Rate The higher, the better

68,904,888

0.51

84,144,954

0.01

224,685,949

0.93

68,276,273

1 12

187,441,368 218,185,775

3 Fertility Rate (# ofbtrths per woman) The htgher, the better

1.4

62.7%

561,944

2 Number of Major Advertising Agenmes The higher, the better

1.5

65.7%

485,252

579

1.4

66.2%

677,947

170

1.8

69.0%

179,448 802,224 790,204

-6.0% -4.3% 6.0% 4.4% -4.4% -1.6%

406 Italy Spain Germany Netherlands France

705

76.4%

United Kingdom

580

1.9

84 0%

4 2%

0.1%

12.6%

4.2%

0.0%

24.6%

4 2%

0.9%

5.3%

4.17%

0.5%

7.3%

4 0%

41

43

126 9%

0.30%

4 0%

45

60

84.1%

081%

7.0%

25

79

81.9%

-0 18%

6 0%

24

83

71.7%

0.42%

4 2%

0.7%

10 0%

0.42

10.0%

37

69

90.2%

0.45%

4.2%

1.6%

6.3%

0.48

5.0%

38

78

90.3%

0 54%

SCORED DATA MATRIX

Micro Indicators

1 Annual Diaper Sales (milhon Euros)

2 Number of Major Advemsmg Agencies

3 Feiÿ2dlty Rate (# ofbmhs per woman)

4 Contraceptlve Use as Percentage

5 Annual Number of Births

6 Annual Samtaly Articles Imported (In kg)

Weight 015

007

010

008

025

012

018

005

100

015

009

02211 Political Stability & Absence of Voflence/Terronsm

40

2.4

27

30

40

20

37

22

22

17

30

50

07

08

4.0

40

10

35

38

50

50

30

20

45

45

14

05

30

28

05

12

40

32

27

38

50

12 Tax Rate

13 PPP GNI Ranking

14 Corruption Perception Index Score

15 Debt as Percentage of GDP

16 Population Growth Rate

TOTAL MACRO

007

024

008

005

010

100

40

22

23

12

20

4.0

20

32

37

50

15

45

48

42

02

20

47

50

50

30

7 Baby Product Sales Growth

8 Taxes on Imports

TOTAL MICRO

Macro Indicators 9 Inflation Rate

I 0 Unemployement Rate

27

05

10

40

30

14

05

30

Italic Spain Germany Netherlands France 50

2O

40

20

50

3.8

17

3.0

2.2

3.0

18

0.5

35

40

35

32

United Kingdom 40

2.3

35

10

45

47

25

30

08

44

25

30

34

47

35

37

DECISION MATRIX

Micro Indicators 1 Annual Diaper Sales (million Euros)

2 Number of Major Advertising Agencies

3 Fertility Rate (# of births per woman)

4 Contraceptive Use as Percentage

5 Annual Number of Births

6 Annual Sanitary Articles Imported (in kg)

Italy 0.405

0.035

0.1

0.32

0.75

0.168

0.09

0.15

2.018

0.6

0.216

0.594

0.28

0.528

0.184

0.06

0.2

2.662

4.68

11 Political Stability & Absence of Violence/Terrorism

12 Tax Rate

13 PPP GNI Ranking

14 Corruption Perception Index Score

15 Debt as Percentage of GDP

16 Population Growth Rate

TOTAL MACRO TOTAL COUNTRY

0.75

0.063

0.176

0.28

0.48

0.256

0.06

0.5

2.565

5.061

0.6

0.28

0.1

0.28

0.95

0.6

0.9

0.15

3.86

0.3

0.405

0.99

0.105

1.08

0.384

0.06

0.02

3.344

7.204

0.21

0.035

0.3

0.224

0 125

0.144

0.72

0.16

1.918

0.405

0.342

1.1

0.14

1.128

0.4

0.06

0.3

3.875

5.793

0.45

0.28

0.2

0.296

0.55

0.264

0.306

0.15

2.496

7 Baby Product Sales Growth

8 Taxes on Imports

TOTAL MICRO

Macro Indicators 9 Inflation Rate

10 Unemployement Rate

Spain Germany Netherlands France 0.75

0.14

0.4

0.16

1.25

0.456

0.306

0.15

3.612

0.33

0.27

0.396

0.035

0.84

0.32

0.06

0.32

2.571

6.183

United Kingdom 0.6

0.161

0.35

0.08

1.125

0.564

0.45

0.15

3.48

0.12

0.396

0.55

0.21

0.816

0.376

0.06

0.37

2.898

6.378