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Copy of Entering Foreign Markets - Dr. Irena Eris Cosmetics in Morocco

This is a fictional class presentation.

Phillip Edens

on 7 November 2012

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Transcript of Copy of Entering Foreign Markets - Dr. Irena Eris Cosmetics in Morocco

photo credit Nasa / Goddard Space Flight Center / Reto Stöckli Dr. Irena Eris Cosmetics: Poland to Morocco A Brief History Geography Population Population Population Pyramid 2022 History of Morocco 32,272,974 Fertility Rate 2.28 Education Levels Pre-primary - 63.64
Primary - 113.73
Secondary - 56.10
Tertiary - 13.22 Population Pyramid 2002 Population Pyramid 2012 Cultural Dimensions Poland v Morocco Poland Morocco Religious Makeup Poland v Morocco Poland Morocco Ethnic Heritages Poland v Morocco Poland Morocco Notice the high spike in 2008 followed by a recent period of deflation Inflation Rate Changes
Over the Past 5 Years The GDP of Morocco has steadily increased over the past 5 years
This is depicted in the following chart GDP Growth Past 5 Years The Exchange Rate for Morocco hasn't displayed any trends
It has been very volatile over the past 5 years as we will see next Foreign Exchange Rate Fluctuation Key Elements of the Infrastructure are... Quality and Quantity of Infrastructure Internet Telecom/IT Mobile Landline Marketing Drinking Water Physical Electricity Roads Air Sea Doing Business in.. Morocco Legal System or How to be Able to Do Business in Morocco The Process is actually rather simple and painless taking a combined 12 days to process the steps.

The Steps are detailed here... Political Regulations and Tariffs One of the highlights of Morocco is how relatively cheap it is to EXPORT from when compared to the rest of Africa.

Let's take a look at more tax information here... Trade Agreements and Import/Export Procedures Morocco has a Free Trade Agreement with the EU which includes Cosmetics

Since Poland is a member of the EU, the trade with Morocco is considerably less expensive.

Let's take a look at the process and cost anyways... Political and Economic Risk While inflation may be low, high unemployment and civil unrest does not make Morocco a "safe" place to do business.

Recent political changes, however, will hopefully move them in the right direction. They do in fact have a King who had a large amount of power up until 2011.

Since 2011 the elected Parliament and Prime Minister have began making strides to improve the Political/Economic atmosphere Corruption and the CPI (Corruption Protection Index) Morocco ranks in the middle of the pack when it comes to corruption

They rank at 80th internationally tied with countries like Peru and Greece with a score of 3.4

This, as well as the rest of the information, is displayed in the following image... Freedom House identifies Morocco as "Slightly Free" which, while not ideal, is above the majority of Africa Freedom House Their rating is dropped mostly due to a lack of Political freedom

This is again something that is being worked on with the new constitution

The whole rankings are detailed to the left... Overall "Doing Business in Rankings" Since we looked into the details of how they fare, let's compare that to the rest of the world and see what progress Morocco has made... Industry Definition Dr. Irena Eris Cosmetics Domestic Competitors Global Competitors Morocco Cosmetic Market Information Market History Customer Demographics and Size SWOT Analysis Threats Opportunities Weaknesses Strengths Recommendations: Phillip Edens Michael Descalzo Leo Ayala Presentation Outline Country Context History
Geography Population Data Economic Data
Doing Business in... Morocco
Industry Context Definition
Poland Competitors
Global Competitors SWOT Analysis
References November 18th 1927 - At age 18, His Majesty Mohammed V takes the throne

January 11th 1944 - Demand for recognition of a sovereign and independent Morocco

August 20 1953 - The King is exiled to Madagascar

1956 - Morocco becomes a member of the United Nations

1961 - Death of King Mohammed V; Enthronement of KIng Hassan II

May 1990 - King Hassan established an Advisory Council for Human Rights History of Morocco (cont'd) April 11 1996 - Ratifies the Denuclearisation Treaty in Africa

1999 - King Hassan II passes away; King Mohammed VI takes the throne

September 27 2002 - Parliamentary Elections are held. 295 candidates were elected and 30 woman were elected in the list.

June 2003 - World Woman summit held in Morocco.

May 2005 - King Mohammed announces launce of the National Initiative for Human Development Long coastline bordering Atlantic Ocean and Mediterranean Sea
Few miles from Spain via the Strait of Gibralter
Borders Western Sahara to the South West
Borders Algeria to the East and South East Power Distance: Very High
Individualism: Collectivism
Masculinity: Masculinity
Uncertainty Avoidance: High
Long-Term Orientation: Short Power Distance: High
Individualism: Individualistic
Masculinity: Masculinity
Uncertainty Avoidance: Very High
Long-Term Orientation: Short Roman Catholic: 89.8%
Eastern Orthodox: 1.3%
Protestant: 0.3%
Other: 0.3%
Unspecified: 8.3% Muslim Sunni: 99%
Christian: 1%
Jewish: 6,000 Total Polish: 96.7%
German: 0.4%
Belarusian: 0.1%
Ukranian: 0.1%
Other: 2.7% Arab-Berber: 99%
Other: 1% 13 million users Maroc, Telecom and Meditel are the two largest telephone companies in Morocco 97% Mobile Penetration Rate Television: 46%
Print: 22%
Radio: 11%
Other: 21% Grant from GPOBA to expand water subsidies Approved $297 million loan to finance Solar Power Plants
Goal of 2000 MW of solar energy by 2020 Tanger Med Port capacity of 3 million + Containers
11 ports meet international standards Open Sky Policy
15 international airports
Largest airport hub in region 1500 km of roads
Goal of 1800 km by 2015
Connect all cities exceeding 400,000 residents Kolastyna
Dax Cosmetics
Deila and Ziaja Johnson & Johnson
Oriflame Developing and distributing care substances used to enhance the appearance or odor of the human body Low domestic labor costs Access to high quality ingredients Recognition as a leader in domestic skin care Cosmetics is a mature market Susceptible to economic cycles as a luxury item Heavily saturated market with 470+ competitors at home EU membership has opened up new trade relationships People are living longer and wanting to look younger Global trend to be "green" and live "healthy" EU membership has opened new trade relationships Increased affordability of cosmetic surgery European neighbor countries struggling Target Demographic - Women ages 15 - 64 Target Demographic Size -Approximately 10 million Moroccan cosmetic market data is hard to determine. Using Mediterranean trends, we were able to estimate the given target demographic.

The market history for Polish cosmetics internationally is as follows... Polish Cosmetic Market History In 2009 Poland's Exports were over $2 Billion The Polish Cosmetics can be broken even further Current Conditions Political instability and low grade investment opportunities discourage the use of a Moroccan location

However, given the agreement between Morocco and the EU, beginning trade relationships come at low risk with a high reward potential Future Conditions Recommendations (cont'd) Continued political and legal reform could eventually make Morocco a lucrative destination for foreign direct investment.

Given this, we should continue to monitor the situation in Morocco as we develop our trade relationship. Presentation Review Country Context
Population Data
Economic Data
Doing Business in... Morocco
Industry Context
Polish Competitors
Global Competitors
SWOT Analysis
References Poland Morocco Morocco via Poland References http://geert-hofstede.com/morocco.html
http://www.invest.gov.ma/?Id=3&lang=en GDP Distribution
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