V. MARKETING U.S. PRODUCTS AND SERVICES DISTRIBUTION AND SALES CHANNELS NUMEROUS WHOLESALERS IMPORT IN VOLUME AND THEN DISTRIBUTE REGIONALLY TO INDIVIDUAL RETAILERS. THE THREE PRINCIPAL SALES REGIONS ARE NORTH, CENTRAL, AND SOUTH; NOT ALL TRADERS DISTRIBUTE IN ALL THREE REGIONS. MANY U.S. COMPANIES AUTHORIZE THEIR AGENTS IN SOUTH AFRICA TO SELL INTO THE MOZAMBICAN MARKET. SOME U.S. FIRMS SUPPORT MOZAMBICAN DISTRIBUTORS FROM OFFICES OR WAREHOUSES IN SOUTH AFRICA. USE OF AGENT/DISTRIBUTORS AND FINDING A PARTNER THE NOMINATION OF AN AGENT IS ESSENTIAL IN ESTABLISHING A LONG-TERM PRESENCE IN MOZAMBIQUE. IT IS RECOMMENDED THAT U.S. COMPANIES CONTACT THE U.S.-MOZAMBIQUE CHAMBER OF COMMERCE, AND THE U.S. EMBASSY'S COMMERCIAL SECTION TO ASSIST IN LOCATING AN AGENT. SUGGESTED TOPICS FOR DISCUSSION WITH POTENTIAL AGENTS IS WAREHOUSE SPACE, SIZE OF SALES FORCE, OTHER FOREIGN COMPANIES REPRESENTED, PRESENCE IN COUNTRY'S THREE PRINCIPAL AREAS, AND THE COMPANY'S ABILITY TO OPEN A LETTER OF CREDIT OR PRE-PAY. FRANCHISING THIS BUSINESS CONCEPT HAS NOT YET TAKEN HOLD IN MOZAMBIQUE. MOST MOZAMBICAN BUSINESSES WOULD HAVE DIFFICULTY PAYING THE INITIAL FRANCHISING FEES. HOWEVER, IF THESE FRONT-END FEES WERE REDUCED, IT IS BELIEVED THAT FRANCHISES WOULD BE SUCCESSFUL IN MOZAMBIQUE, PARTICULARLY IN FAST-FOOD, SERVICES, AND PRINTING SHOPS. DIRECT MARKETING THE LOCAL POSTAL SERVICE IS NOT ADEQUATE TO SUPPORT DIRECT MARKETING AT THIS TIME. JOINT-VENTURES/LICENSING MOZAMBIQUE'S INDUSTRIAL SECTOR IS WEAK, THUS LICENSING IS RARELY PRACTICED. JOINT-VENTURES ARE ENCOURAGED. (SEE SECTION VII ON INVESTMENTS) STEPS TO ESTABLISHING AN OFFICE THE BUREAUCRACY INVOLVED IN REGISTERING A COMPANY AND ESTABLISHING AN OFFICE IS VERY CUMBERSOME. MOST AMERICAN FIRMS CHOOSE TO USE A CONSULTING FIRM TO ASSIST WITH THIS BUREAUCRATIC PROCESS. LOCATING OFFICE SPACE (AND ESPECIALLY RESIDENTIAL HOUSING) IS OFTEN DIFFICULT. THE CENTER FOR THE PROMOTION OF INVESTMENT (CPI) CAN ASSIST WITH THIS PROCESS. SELLING FACTORS/TECHNIQUES THE SCARCITY OF DOMESTIC CREDIT OFTEN RESULTS IN A LACK OF WORKING CAPITAL FOR LOCAL BUSINESSES. SOME U.S. EXPORTERS HAVE INCREASED THEIR SALES BY OFFERING 90-DAY DEFERRED L/C TERMS, THUS FINANCING A SUBSTANTIAL PORTION OF THE SHIPPING/SALES CYCLE. PROVIDING PROMOTIONAL MATERIALS IN THE PORTUGUESE LANGUAGE ALSO HELPS. SOME U.S. COMPANIES UTILIZE PROMOTIONAL MATERIAL DEVELOPED BY THEIR BRAZILIAN OR PORTUGUESE OFFICES. ADVERTISING AND TRADE PROMOTION THE OPTIONS FOR ADVERTISING IN MOZAMBIQUE ARE LIMITED. THE COUNTRY HAS TWO TELEVISION STATIONS BROADCASTING IN MAPUTO BUT ONLY ONE IN BEIRA. ONE BUSINESSMAN REPORTS THAT TV ADVERTISING IS THE MOST EFFECTIVE MEDIUM TO REACH THE MORE AFFLUENT URBAN MOZAMBICANS WHO GENERALLY PURCHASE IMPORTED PRODUCTS. THE MAJOR NEWSPAPERS ARE THE DAILY "NOTICIAS" AND THE WEEKLY "DOMINGO" AND "SAVANA." THE NATIONAL RADIO STATION, RADIO MOZAMBIQUE, REACHES THE LARGEST NUMBER OF PEOPLE ALTHOUGH ITS AUDIENCE STILL DOES NOT EXCEED 60 PERCENT OF THE POPULATION. SOME EUROPEAN AND ASIAN FIRMS OFFER THEIR MOZAMBICAN AGENTS ADVERTISING ALLOWANCES. SALES SERVICE/CUSTOMER SUPPORT THE AVAILABILITY OF SERVICE IS IMPORTANT IN MOZAMBIQUE BECAUSE LOCAL TECHNICAL EXPERTISE IS OFTEN NON-EXISTENT. SOME U.S. COMPANIES HAVE WAREHOUSES AND TECHNICIANS IN SOUTH AFRICA AVAILABLE TO SERVICE PRODUCTS IN MOZAMBIQUE. SELLING TO THE GOVERNMENT MOST GOVERNMENT PURCHASES ARE ASSOCIATED WITH DONOR-FINANCED PROJECTS, AND THEREFORE SUBJECT TO THE BIDDING AND SOURCING RULES OF THE DONOR. MAJOR PROJECTS ARE OFTEN AWARDED TO INDIVIDUAL GOVERNMENT MINISTRIES, MOST ALL OF WHICH HAVE A SPECIAL DEPARTMENT FOR MANAGING CONTRACTS. IF BIDDING ON A MAJOR CONTRACT, IT IS WORTHWHILE TO ESTABLISH PERSONAL CONTACT WITH THESE DEPARTMENTS. PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT THE PROTECTION OF INTELLECTUAL PROPERTY RIGHTS IS VERY WEAK IN MOZAMBIQUE. (SEE SECTION VII ON INVESTMENT FOR ADDITIONAL INFORMATION.) NEED FOR A LOCAL ATTORNEY WHEN NOMINATING AN AGENT, A LOCAL ATTORNEY IS GENERALLY UNNECESSARY. IF AN INVESTMENT IS BEING CONSIDERED, LEGAL ADVICE WILL BE REQUIRED. THE LOCAL CONSULTING FIRMS GENERALLY HAVE LEGAL COUNSEL AVAILABLE.