Welcome to Spain Amber Bock Brett Biggins Amber Christman Rachel Rikkers.
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Transcript of Welcome to Spain Amber Bock Brett Biggins Amber Christman Rachel Rikkers.
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Welcome to Spain
Amber Bock
Brett Biggins
Amber Christman
Rachel Rikkers
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History
Hispania“coast or island of rabbits”Failure to welcome industrial revolutions20th century keeping up with the world
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Climate
ClimateNorthern rainy SpainSouthern dry Spain
One of the highest countries in Europe
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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
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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
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Political System
Composed of a king and queen
Have a democratic societyKing oversees everything in the government
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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.
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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.
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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.
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Religion
Majority- Roman CatholicismMinority- All OthersLoosing Importance
Decline in men joining priesthoodDecline in people attending mass
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Aesthetics
Rich cultureArt
Music & DanceFlamenco
Running of the bulls
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Drawn from many culturesPhoenicians GreeksRomansArabs
Known for many foods such as olive, wines, seafood, Tapas, and Gazpatcho
Diet and Nutrition
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Housing
High cost of buying and renting
1960-1970’s Lack of house planning
One-family dwellings
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Clothing
Representative of the fashion in European cultureProfessional attire is expected for business people
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Recreation, Sports, and Other Leisure Activities
NightlifeAuto Racing BasketballCricketCyclingGolfMartial ArtsRugby
SkateboardingSoccerTennisBullfightingBoatingScoutingParks and Public Lands
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Health Care
Publicly FinancedAgingPrivate Health Insurance
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Language
Official language is SpanishSecond Languages
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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
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Age Structure
0-14 Years
15-64 Years
65 Years andOver
15%17%
68%
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Economics Statistics
GDP runs at $548 billion a yearGDP rate is 3.6%Capital Breakdown:
63% Services33% Industry4% Agriculture
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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
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Communication Systems
Main Telephone LinesCellular PhonesRadio BroadcastTelevision BroadcastFax MachinesInternet Services
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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
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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.
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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.
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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.
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Labor Force
The labor force is estimated to be 16.2 million people.Service-64%Manufacturing, mining, and construction-28%Agriculture-8%
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Labor Force
Spain’s estimated unemployment rate is about 21%.
Despite the high unemployment rate, Spain remains the best in Europe in creating jobs.
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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.
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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.
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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
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Channels of Distribution
RetailersSupermarkets and Self-service storesHypermarketsDiscount Stores
WholesalersImport/ Export Agents
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Distribution
Ship product by way of ocean carrierDistribute product within Spain using an intermediary company
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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
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Channels of Distribution
2 leading competitors hold the torch:
Centros Comerciales CarrefourGroup EroskiPryca, Continente, Eros Alcampo, Hipercor/El Corte Ingeles, and Mercadona
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Importing Agent
Help company with advertising campaignHelp with marketing services
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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.
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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.
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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.
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Resources
FinanceExport-Import Bank of the United StatesBank of Spain
PersonnelManagementAccountingSales ManagerMarketing DirectorFreelance help when needed
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Marketing Plan
Target MarketWomen age 25-45Health conscious
Working with a homogeneous groupTargeting middle to upper class
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Marketing Plan
Product Component ModelProduct will be an upscale, sweet tasting chocolateFancy PackagingExtravagant letteringPrice-$3.00
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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
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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.
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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.
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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)
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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.
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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.
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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.
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Marketing Budget
Selling expense-12%Advertising and promotion-21%Distribution-11%Product cost-25%Other-7%
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Acknowledgements
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