Welcome to Spain

Amber Bock

Brett Biggins

Amber Christman

Rachel Rikkers

History

Hispania“coast or island of rabbits”Failure to welcome industrial revolutions20th century keeping up with the world

Climate

ClimateNorthern rainy SpainSouthern dry Spain

One of the highest countries in Europe

Family

80% cite as very important factorMore young people are staying at homeDecline in the number of marriages

Average age women 26, men 28

Role of women in the workplace is increasing

Education

Literacy rate of 97%Levels of educationRequired to attend from ages 6-16Then attend either upper grade vocational training or university studies after secondary education

Political System

Composed of a king and queen

Have a democratic societyKing oversees everything in the government

Political System

As a result of a democracy, three branches of government were formed

Executive, Legislative, and Judicial

The Legislative section is called the Spanish parliament, and represents the Spanish People.

Political System

The judicial branch of government is the highest jurisdictional power of the State, except in matters dealing with the constitution.The president of the court is appointed by the king.

Political System

The executive branch has a prime minister that is appointed by the kingThe prime minister has control over the government and the Congress of Deputies.People can be removed from office by the king on a nomination from the prime minister.

Religion

Majority- Roman CatholicismMinority- All OthersLoosing Importance

Decline in men joining priesthoodDecline in people attending mass

Aesthetics

Rich cultureArt

Music & DanceFlamenco

Running of the bulls

Drawn from many culturesPhoenicians GreeksRomansArabs

Known for many foods such as olive, wines, seafood, Tapas, and Gazpatcho

Diet and Nutrition

Housing

High cost of buying and renting

1960-1970’s Lack of house planning

One-family dwellings

Clothing

Representative of the fashion in European cultureProfessional attire is expected for business people

Recreation, Sports, and Other Leisure Activities

NightlifeAuto Racing BasketballCricketCyclingGolfMartial ArtsRugby

SkateboardingSoccerTennisBullfightingBoatingScoutingParks and Public Lands

Health Care

Publicly FinancedAgingPrivate Health Insurance

Language

Official language is SpanishSecond Languages

Population

Just under 40 millionIn 2000, the birth rate was 9.22 births per 1000 peoplePer 1000 live births there are only 4.99 deaths.Total population’s sex ratio is 0.96 male/female

Age Structure

0-14 Years

15-64 Years

65 Years andOver

15%17%

68%

Economics Statistics

GDP runs at $548 billion a yearGDP rate is 3.6%Capital Breakdown:

63% Services33% Industry4% Agriculture

Transportation

Surrounded by water, making the merchant marine business the lead outlet of trade.Highways, waterways, pipelines, railways, keep trading in motion.105 airports, and a few heliports

Communication Systems

Main Telephone LinesCellular PhonesRadio BroadcastTelevision BroadcastFax MachinesInternet Services

International Trade Statistics

ExportsImportsBalance of Trade

0

20

40

60

80

100

120

140

1992 1994 1996 1998 2000

Exports FOB

Imports CIF

$ B

illio

ns

Exchange Rates

The currency in Spain is known as the peseta.

The peseta has been devaluating in the past, but is now starting to level out.

Trade Restrictions

Common Agricultural Policy.Has strict regulations on animal and plant health standards.Spain also requires all products to have content labels on them.

Trade Restrictions

The government also requires 51% of broadcast time be reserved for European products.One major problem facing the U.S. in their exports is getting certification for a certain product.

Labor Force

The labor force is estimated to be 16.2 million people.Service-64%Manufacturing, mining, and construction-28%Agriculture-8%

Labor Force

Spain’s estimated unemployment rate is about 21%.

Despite the high unemployment rate, Spain remains the best in Europe in creating jobs.

Inflation Rates

The inflation rate in Spain is estimated to be between two and three percent.

The inflation rate in Spain really isn’t a huge problem.

Developments in Science and Technology

Majority of people in Spain are considered to be blue collar workers.

Some have technical knowledge to do various sorts of jobs in Spain.

Media

Television91% of homes have television and watch daily

Radio57% listens to the radio everyday

Newspapers/ Print38% read everyday

Periodicals55% read on a regular bases

Channels of Distribution

RetailersSupermarkets and Self-service storesHypermarketsDiscount Stores

WholesalersImport/ Export Agents

Distribution

Ship product by way of ocean carrierDistribute product within Spain using an intermediary company

Packing

Special GuidelinesLabel information printed in SpanishProduct name, net weight or volume, expiration date, list of ingredients, directions for storage and use, country of origin, importer, and lot number

Channels of Distribution

2 leading competitors hold the torch:

Centros Comerciales CarrefourGroup EroskiPryca, Continente, Eros Alcampo, Hipercor/El Corte Ingeles, and Mercadona

Importing Agent

Help company with advertising campaignHelp with marketing services

Price Determination

Cost of shipping goods to Spain depends on the weight, and type of goods your shipping.Transportation costs also depend upon the weight of the goods your shipping.Insurance cost for a shipment of goods is usually a $1.25 for every $100 the shipment is worth.

Terms of Sale

The best way to ship in Spain is CIF.

Allows for exporter to tailor their needs to the insurance that will be right for the shipment.Also allows for the rates to be competitive based on the exporter’s experience, not the buyer’s.

Methods of Payment

Payments are normally made on credit in Spain.Exporter’s are advised to follow the regulations that they would follow in their domestic country.Private and government organizations have credit options available.

Resources

FinanceExport-Import Bank of the United StatesBank of Spain

PersonnelManagementAccountingSales ManagerMarketing DirectorFreelance help when needed

Marketing Plan

Target MarketWomen age 25-45Health conscious

Working with a homogeneous groupTargeting middle to upper class

Marketing Plan

Product Component ModelProduct will be an upscale, sweet tasting chocolateFancy PackagingExtravagant letteringPrice-$3.00

Marketing Plan

Will have advertisements on television shows that cater to our market.Advertise between two and four o’clock in the afternoon and eight to ten o’clock at night.Problem with television advertising is Spain requires 51% of air time be reserved for Spanish and European products

The Marketing Plan

Advertise in women’s and fitness magazines.These magazines were chosen because they are great ways in which to reach our target market.

Marketing Plan

Spanish are always willing to try new productsAdvertising allows us to show them the advantages our product has over their current snack food choice.

Marketing Plan

Set up taste sample booths in medium to large supermarkets.Supermarkets we will work with will be perceived as being a high quality grocery store.

(example-college square Hy-Vee)

Marketing Plan

Would issue coupons to consumers so they could try it at a lower price.Would place the product at the end of the aisles in the grocery store.

Marketing Plan

Set up a web site for consumers to visit to look at advantages of our product.Would make available the opportunity for consumers to send in for a free sample from the web.

Marketing Plan

Have a sweepstakes for consumers to have the chance to win a car.Send in labels with all their information on it.Allows us to relatively see if our product is succeeding in the Spanish market.

Marketing Budget

Selling expense-12%Advertising and promotion-21%Distribution-11%Product cost-25%Other-7%

Acknowledgements