Estelle HONNORAT

International Marketing StrategiesIndividual project

Each country holds its own culture, traditions, and the way of thinking. When a

company intends to expand internationally and introduce identical products in

different markets, it has to adapt its business strategy accordingly. This project tries

to explain what main factors a business will have to consider in order to penetrate

Ghana and Panamanian markets.

GHANA

Introduction

Ghana is the republic with the president John Dramani Mahama as its leader.

The country occupies the 4th position in terms of real growth rate of GDP in the world

(1). In Ghana, the income average peaks to 70.30 Euro per month.

Nowadays, Ghana is seen as a country with a lot of potential. To be more specific,

many oil resources were discovered in 2007. It seems that the country will probably

become a producer and exporter of this “treasure” and soon enough will harvest

complementary benefits.

However, the main activity remains agriculture, despite the fact that the industry is

more developed compared to other West African countries (5).

Concerning access to the market, Ghana has been simplifying the process for starting

a business for a few years already. Nevertheless, the cost of a business launch has

risen for 70% (13). Similar to all other countries, Ghana imposed its own procedures

and regulations on a business creation. Several steps have to be undertaken before

obtaining the right to sell. They include, for example, checking the availability of a

company name, obtaining an incorporation certificate after extensive paperwork,

getting a request authorized by a Commissioner of Oaths. In general, it could take

between 2 and 3 weeks before legalizing a business venture.

I/ PRODUCT

Needs

Ghana benefits from high sunshine rate each year. That is the reason why solar

energy market presents a variety of important business opportunities for companies.

Moreover, Ghana is trying to develop its electric systems throughout the country. In

May 2008 "a loan agreement of $44.5 billion was signed so as to help Kumasi region

improve its electric systems” (6).

As a result, solar energy seems to be an alternative long-term beneficial system for

those who can afford it.

We aim to help people in their daily lives: charge phones, portables CD players…

In a country such as Ghana (where people are most of the time isolated in villages) a

solar powered battery charger could be a real help. People would not be obliged to

move out to cities just because of availability and accessibility of electronic systems.

Our “physical” product

The Christian Brotherhood Solar powered Battery Charger has been created to

address new environmental issues. Indeed, nowadays saving energy and protecting the

land is paramount. This battery allows users to charge their batteries (4 types of

batteries: AA, AAA, C and D) without electrical connection. It was designed in such a

way so as to be easily transported and carried. Only 4 batteries can be charged at the

same time; full charging time could take between 9 and 11 hours.

In Ghana, English is the official language. Consequently, operating instructions will

be written in English. On the other hand, Ghanaian people do not seem to have

specific requirements concerning color code or products names. On the contrary, the

word “Christian” appears among the 56th most given names in Ghana (7). Due to the

abovementioned facts, it’s possible to assume that there is no absolute necessity to

modify all the features of the battery charger.

II/ PRICE

In order to set the product price, the following parameters have to be taken

into account: the production cost, the market demand and competitors’ prices.

Our cost of production amounts up to 30 Euro per unit. That is why the final price

could obviously not be below this number.

Moreover, it’s important to remember that this type of product is yet underdeveloped

and underrepresented on the Ghana market. Therefore, it would be one of the first

steps to familirize people with the product and create solar energy awareness among

the end users. For this purposes the company will have to develop a special marketing

strategy that will gradually introduce the charger to the market.

Consequently, the launching price should allow the company to make it product

known among the population and to increase market capitalization. We aim to attract

clients by giving them an opportunity to try out the product at slashed-price for three

months. After having penetrated the Ghanaian market, we will be able to increase the

price of the solar powered battery charger as most of the people will remain loyal to

this product concept.

In temr of competition, several companies that specialize in solar energy for

households are already operating in Ghana. They are represented, for example, by

such companies as Dulosolar Ghana and Artikas LTD. However, only one company,

named ADDSOLAR, has proposed a store in which they offer portable solar batteries.

The supply of this type of chargers isn’t significant in Ghana.

In conclusion, the acceptable price for launching the product could be 32 euro. In the

future, the price would be raise to 39.90 euros per unit.

III/ PROMOTION

Public relations and sales representatives

Ghana remains to be a country where social hierarchy and respect are

historically well established. In Ghanaian culture and traditions, seniors are perceived

as wise and sensible. This explains the fact that they are more recognized and

accepted compared to younger people in the business world. Indeed, during business

meeting and negations it would be more beneficial if seniors appear to be leaders in

front of the Ghanaian. It will make local people feel more secure and comfortable. As

a result, we will choose older people to become our sales representatives. The hiring

process for these positions will be accomplished by a local intermediary. For instance,

it’s possible to sign a contract between Christian Brotherhood and First Class

Recruitment Services, an employment agency located in Accra. Hired representatives

will be responsible for promoting the product and ensuring the success of other

elements of our strategy in the Ghanaian market.

Promote and advertise our product

What concerns Ghanaian’s culture and the way of living, we understand we

cannot advertise our product through many media channels. Only a small fraction of

people have internet access or TV at home. Radio remains to be the dominant means

of communication. Ghana counts 2 major radio stations which include Ghana

Broadcasting Corporation Radio 1 and Ghana Broadcasting Corporation Radio 2 (8).

They offer local and international news, social and public announcements, as well as

music, religious, educational programs, and sports programs. Therefore, we will focus

on using these channels for daily advertising.

Also, Ghanaian people are used to celebrate many traditions by important

manifestations. The main celebrations of the country are The Republic Ceremony,

Panafest, Adae Kese, Homowo, and Hogbetsotso. Our company will strive to

advertise during this time because it will allow us to reach the top number of potential

clients. Ghanaian people are really committed to their customs and culture. We could

partner with major parties organizers so as to increase company’s recognition.

For instance, Hogbetsotso is a really famous party where some important public

figures have already presented various speeches. Also, during this party “All the

chiefs of the area appear in their most regal attire and sit to receive homage from the

subjects that are in attendance” (9).

Our company could offer these chiefs our solar energy powered batteries as a gift

during the ceremony. These gifts will be offered by Ghanaian sales representative.

Finally, during the manifestation, we could open booths and stands to represent the

company. The sales representatives will explain people how the solar energy powered

batteries work and what their main functions and implications are. They will also

outline the main long-term benefits of the product and how it could help in everyday

life. Different products could also be offered to attract people to company stands.

IV/ PLACE

Import in Ghana

Concerning the non-CEDEAO countries, various customs duties still exist.

Nevertheless, there are not that many restrictions on imports. Ghana has simplified the

procedures and required paperwork for import since April 2010.

The main obligatory requirement is to register the product, which a company wants to

import, at Food and Drug Board (FBD): When authorization is validated, the transport

mechanism can start.

Here is an extract from the law concerning penetration of the Ghanaian market:

“Mandatory standards set by the Ghana Standards Office (generally ensure by

International norms) do not discriminate imports, such they would be” (3).

Furthermore, United States of America and some African countries have already

established good working partnership agreements in the past. Some of the contracts

allow to remove customs duties at the entrance of USA.

Being an American company, the Christian Brotherhood might have little troubles and

barriers when entering the Ghanaian market, given that different procedures cited just

before are respected.

Implementation strategy

Due to the specifications of our product, it won’t be enough to simply open

stores for selling it. In order to be profitable, the product has to be sold also through

retailers. In the beginning our company plans to start from the main cities of the

country: Accra (the capital), Kumasi, Tamale, Swedru and Sekondi-Takoradi. These

cities are advantageous for us because they are located in the north as well as the

center and the south of the country. It will allow citizens living close to these cities to

have access to retailers’ stores.

In Accra, our product will be provided in a retailer (Best Price GH Joint) located in

the main city mall ACCRA MALL. Also, we choose 3 more retailers in the capital,

located all over the city: Somovision, Price Club and Hisense (10). Hisense and

Somovision are renowned for their good quality of products. Best Price GH Joint and

Price Club appear as competitive and attractive options thanks to their store names.

These four retailers specialize in distributing electronic products.

In Kumasi, “much of the shopping takes place at Kumasi's shopping streets, in and

around Kejetia Market and Adum” (11). That is why we will choose retailers in this

part of the city. Although “solar panels are prevalent in Kumasi and Ashanti” (12):

Thanks to this statement, we could introduce our product in 3 or 4 retailers as in

Accra.

In Tamale, Swedru and Sekondi-Takoradi, only one retailer will be chosen in each

city. Indeed, we first have to evaluate the success of our product before taking too

many risks.

PANAMA

Introduction

Panama is a parliamentary republic. Ricardo Martinelli has been its President

since 2009. Panama holds the 6th place concerning the real growth rate of GDP,

peaking at 10.6%. The average income is approximately 383.90 Euro per month.

Panama is known for larger reserves of the copper. It is estimated that the country

could satisfy up to 85% of the annual global demand for the copper. The United States

of America are one of the main commercial partners of Panama.

As a foreign company, the Christian Brotherhood will first have to register with

Panamanian offices (6). First of all, the company is obliged to hire a “registered

agent” in order to comply with different procedures such as notarizing the articles of

incorporation, registering with the Mercantile Division of the Public Registry and

paying Annual Franchise Tax, obtaining a notice of operation, registering with

municipality; getting a “paz y salvo municipal” and finally request an employers’

inscription number from the Social Security Administration.

After completing all these steps, the company will begin to introduce its product.

I/ PRODUCT

Needs

Panama accounts for 2.8 billion citizens. The country suffers from a lot of

inequalities between people. In 2004, the government decided to launch a program in

order to provide electricity at schools and remote areas in the form of solar energy.

“The project aims to reduce inequalities and improve the living conditions of rural

populations” (1).

Panama is one of the best places in the world to harness solar energy; the country

gradually develops its photovoltaic systems to reduce oil dependence.

Nonetheless, the market of solar panels has started to grow unlike the market of solar

energy appliances.

Our “physical” product

The Christian Brotherhood Solar powered Battery Charger has been created to

address new environmental issues. Indeed, nowadays saving energy and protecting the

land is paramount. This battery allows users to charge their batteries (4 types of

batteries: AA, AAA, C and D) without electrical connection. It was designed in such a

way so as to be easily transported and carried. Only 4 batteries can be charged at the

same time; full charging time could take between 9 and 11 hours.

Spanish is the official language of the country. It is a unique language of the country.

Only a few citizens speak English. That is why we will provide a Spanish notice as

well as a notice in the original language (English).

American and Panamanian people maintain good relationships. Indeed, many features

allow American people visit Panama easily: same currency (dollar), language (many

South American people speak English), and physical closeness. It seems that USA are

well accepted in Panamanian minds. We decide to also keep the name of our product

(In Spanish the name Christian is almost the same: Cristiano).

II/ PRICE

In order to set the price of our product, 3 parameters have to be taken into

account: the production cost, the market demand and competitors’ prices.

Our cost of production is about 30 Euro per unit, therefore that price won’t go below

this number.

Market demand for solar energy batteries is rather high. Our company will aim to

maintain and increase the awareness of the need for the product.

Concerning competition, nine retailers (sometimes wholesale suppliers) are located in

Panama. Most of them sell solar energy panels, alternative homes and buildings,

energy storage systems and energy efficient appliances. Only a few provide energy

efficient appliances. The market is not very developed in this area. That is why we are

not obliged to fully comply with competitors’ prices.

We will adopt a launching price strategy: This strategy will allow us to quickly gain

market capitalization if our promotion is efficient.

In sum, our price product will be 49 Euros.

III/ PROMOTION

Public relations and sales representatives

The Panama is the country in which traditions are visible in everyday life.

Indeed, several spheres such as music or religion are essential pillars of the traditional

life in Panama. On the one hand, a majority of Panamanian people are faithful

followers of the catolisism. Religion takes an impotant place in the Panamaian

culture.

On the other hand, music and parties are also an integral part of Panama lifestyle.

Music and religion are not in opposition to each other. On the contrary, Panamaian

people are used to celebrate religious events through parties: Good Friday, Christmas,

Martyrs Day and others.

Otherwise, in business sphere, people remain trully attached to hierarchy and respect.

Although, it’s important to establish personal relationships before even starting a deal

or negotiations. Taking the time to know your business partnet is essential (2).

Finally, loyalty to friends and family “provides the glue that binds the country

together”.

Regarding the way of living and thinking of Panamaian people, it seems we should

choose someone close to community citizens as a sales representative. For instance, a

well-known figore (like a famous singer) could become the face of our product.

Our company also decides to contact the public relations agency “Sanchiz, Siebrasse

y Asociados S.A.” to help us proceed with our marketing strategy (3).

Promote and advertise our product

Our company choose to advertise the solar powered battery charger through 2

main media means. The first one will be the radio. Indeed, many local and national

radios exist in Panama. Given the fact that all citizens speak Spanish, it is especially

important for smooth communication. Radio enables broadcasting messages and ads

easily as quite a lot of people have the possibility to hear it (at home, in a car, at

shops, in bars…).

Newspapers are also very visible in the country: La Prensa, La Estrella de Panama,

Critica Libre, El Siglo, Seminario Educativo Culturama, … (5)

Moreover, posting ads in newspaper allows reaching a significant number of people.

Our ad will focus on practicality and profitability of the product.

Furthermore, the product will be presented and promoted during specials events such

as the Carnaval of Panama and the Music International Party (4). During these

manifestations, our agency will ensure promotion of our product: It will explain and

show for instance how you can recharge you mp3 player with the charger.

IV/ PLACE

Implementation strategy

The country counts 6 main cities: Balboa, San Miguelito, Colón, David,

Penonóme and Panamá (the capital).

As in Ghana, we will choose to launch our product in retailers store. In Panamá, many

DIY stores are presented. Most of them are located in malls which is advantageous for

attracting a lot of people. As a result, the product will be distributed through 6

retailers in Panama.

In the other cities, the number of retailers will be less important; the company plans to

have only 2 retailer for each city. We will increase the number depending on the

product success.

CONCLUSION

This individual project has allowed us to better understand the main steps for

launching a business and introducing new products in a particular country. Indeed,

each country holds different culture and mentality: We cannot introduce a product in

a country in the same way as in another one. Knowledge of how people live, what they

value and what their main preoccupations are is one of the keys for succeeding in

business.

WEB LINKS GHANA http://www.indexmundi.com/g/r.aspx?v=66: 1http://www.indexmundi.com/g/r.aspx?c=gh&v=79&l=frhttp://www.indexmundi.com/g/r.aspx?t=0&v=83&l=fr: 2http://www.izf.net/pages/marche-du-ghana/16825/: 3http://www.businessghana.com/portal/directory/index.php?op=getSubDirectoryContents&category=Imports%20&subcategory=Importers&cat_id=10&id=174http://www.jeuneafrique.com/Articles/Dossier/JA2683p064-065.xml0/usa-petrole-aide-au-developpement-crise-financieretats-unis-afrique-la-force-des-grands-programmes.html: 4http://fr.wikipedia.org/wiki/Ghana#.C3.89conomie: 5http://www.lespagesjaunesafrique.com/societes/Ghana/energie-solaire/ http://www.riaed.net/?Ghana-la-Bad-finance-un-projet-de: 6http://www.studentsoftheworld.info/penpals/stats_fr.php3?Pays=GHA: 7http://www.ghanaweb.com/GhanaHomePage/communication/radio.php: 8

http://www.travel-to-discover-ghana.com/ghana-festivals.html: 9

https://foursquare.com/explore?near=Accra&q=Electronics%20Store: 10

http://en.wikipedia.org/wiki/Kumasi: 11 & 12

http://www.doingbusiness.org/~/media/giawb/doing%20business/documents/profiles/country/GHA.pdf: 13

WEB LINKS PANAMA http://www.egis-international.fr/References/Electification-par-energie-solaire: 1http://www.kwintessential.co.uk/intercultural/management/panama.html: 2https://panama-ssapublicrelations.com/Company.html: 3http://www.guidedesfetes.com/fetes-jours-feries-panama-167-p.html: 4http://journaux.prensamundo.com/p-journaux-panama.htm: 5http://www.doingbusiness.org/~/media/giawb/doing%20business/documents/profiles/country/PAN.pdf: 6http://energy.sourceguides.com/businesses/byP/solar/byGeo/byC/Panama/Panama.shtmlhttp://www.kwintessential.co.uk/intercultural/management/panama.html