V. Marketing U.S. Products and Services Distribution and Sales Channels Paraguay does not have preferred or special marketing channels. Imported merchandise can be marketed through subsidiaries of the foreign companies, importers, distributors, and/or dealers. Use of Agents/distributors; Finding a Partner; Need for a Local Attorney Foreign firms interested in establishing operations in Paraguay should hire experienced local attorneys and private sector expertise, including representatives to assist them in operating in a complex business environment. The selection of an appropriate agent/distributor would be important determining factor of the success/failure of the enterprise. Many local companies large and small offer specialized marketing skills to foreign companies interested in the local market. Franchising Franchising operators are beginning to penetrate the Paraguayan market. Several foreign companies have recently granted franchising rights to local firms in the areas of fastfoods and laundry. Direct Marketing Few Paraguayan companies have used direct marketing in the past. Nevertheless, some companies have recently started using this method of reaching potential customers. Joint Ventures/Licensing The civil code in force since 1987 does not have provisions for the establishment of joint ventures. However, the government recognizes joint ventures formally established through formal legal contracts between the interested parties. If desired, this contract may be recognized through a duly notarized public deed. Licensing agreements are widely used for the local production of international brands. Many foreign firms have licensing arrangements with local companies in the areas of apparel, toiletries and cosmetics, pharmaceuticals, processed foods, and audio and video recordings. Steps to Establishing an Office The government of Paraguay allows the establishment of branches or subsidiaries of foreign companies in the country. The branch offices should be headed by a legally authorized representative. The documents listed below, authenticated by a notary public and by the Paraguayan consul in the country of origin, must be filed and registered at the public trade registry. Within ten days of completing this step, the same documents must be registered with the treasury inspection department. --copy of the foreign company's by-laws; --copy of the foreign company's board of director's -minutes of the meeting establishing a branch in Paraguay; --a general power of attorney by the head office to its representative in Paraguay. Selling Factors/Techniques; Sales Service/Customer Support The support and follow-up work provided by U.S. manufacturers or exporters new to this market to their local representatives cannot be overstated. At the beginning this may include expenditures for advertising and promotional materials in the Spanish language. Even after the products have gained acceptance in the market, U.S. suppliers should maintain close contact with their local representatives to keep abreast of problems, and to assess the market jointly. Periodic visits by officials of the U.S. companies help to reinforce ties with customers in Paraguay. Competitive prices and quality are important. Generally, producers offering high quality products at competitive prices succeed quickly in the Paraguayan market. Most Paraguayan importers prefer to do business with reliable suppliers. Moreover, Paraguayan importers prefer to buy goods from manufacturers and suppliers offering attractive financing. Advertising and Trade Promotion The development of Paraguayan advertising has progressed substantially in recent years. The greater Asuncion area is by far the principal advertising center, having over one-third of the total population. The principal media for mass advertising are television and the press. Other widely used media include radio, billboards, signs, and direct mail. Most advertisers prefer television and newspapers for their promotional campaigns. The following daily newspapers are widely used by local advertisers: "Diario abc color" Editorial azeta s.a. Sr. Aldo zuccolillo, director Casilla postal 1321 Calle yegros 745 Asuncion, Paraguay Ph: 595/21/491160 - fx: 595/21/493059 "Diario hoy" Editora hoy s.a. Sr. Hugo aranda (h), director Av. Mariscal lopez 2948 Asuncion, Paraguay Ph: 595/21/602599, 660383 - fx: 595/21/603400 "Diario ultima hora" Editorial el pais s.a. Sr. Demetrio rojas-cardoso, director Calle benjamin constant 658 Asuncion, Paraguay Ph: 595/21/496261, 496262 - fx: 595/21/447071 "El diario noticias" Editorial continental s.a. Sr. Nestor lopez-moreira, director Casilla postal 3017 Av. Artigas y brasilia Asuncion, Paraguay Ph: 595/21/292721, 292722 - fx: 595/21/292840 Selling to the Government Government procurement requires a public bidding process when the value of the purchase exceeds U.S. dollars sixty thousand. Foreign manufacturers/suppliers wishing to participate in government tenders must do so through their duly registered local representatives, which could be commercial firms in their lines of business or legal attorneys. The 'buy Paraguay' requirement requires that all government agencies give preference to Paraguayan contractors when contracting for the construction of public works or the supply of services to the public sector. Such preference in the award of bids and tenders allows a price differential of up to fifteen percent compared to foreign goods and services. Protecting your product from IPR infringement Owners of patents, trademarks, and copyright materials are advised to register their products with the industrial property office in the ministry of industry and commerce.