V. Marketing U.S. Products and Services

Distribution and Sales Channels

Tunisia's distribution and sales channels are similar to those in
many other countries, with options for wholesale or retail
marketing.  Most activity occurs in the major coastal cities,
i.e. Tunis, Sfax, Sousse-Monastir, and Bizerte.


Agents / Distributors

Agents/distributors can be an important help in introducing
products into Tunisia.  Knowledge of the local market and local
contacts can mean the difference between success and failure.
The key, however, is to find the right one.  Embassy Commercial
Section can provide advice on reputable contacts.


Franchising

Franchising is new to Tunisia.  Pizza Hut introduced the concept
with the opening of a Tunis branch in 1994.  There is growing
interest in the idea and many Tunisian entrepreneurs are seeking
contacts with American companies.


Direct Marketing

Direct marketing offers certain advantages.  Companies can avoid
the sometimes lengthy process of looking for a suitable
representative.  However, it does require a local presence to
follow through on details.


Joint Ventures

There are several successful examples of joint ventures in
Tunisia.  Business common sense, however, must be exercised.
Companies should be rigorous in selecting a partner.  It is
important, too, to ensure a controlling share of the ensuing
company.  Licensing agreements tend to work well.  Periodic
visits are necessary to follow through on quality control and
other standards.


Establishing an Office

Establishing an office is a relatively simple task.  The Agency
for the Promotion of Industry (API) has the designated investment
promotion role in the Tunisian government.  It offers a "one stop
shop" service to investors seeking to set up in Tunisia.
Generally, it takes approximately two weeks to complete all the
necessary work.  Companies should get the advice of a local
lawyer before starting the process.  Many commercial lawyers have
specialized staff who can handle the details with API or other
ministries.  The Embassy maintains a list of reputable, English-
speaking attorneys.


Advertising and Trade Procurement

French is Tunisia's main commercial language.  Major newspapers
include the French language dailies, "La Presse" and "Le Temps."
Most businesses use "La Presse" for advertising.


Product Pricing

Pricing in Tunisia is similar to that in the United States.  U.S.
companies should keep in mind that, like Americans, Tunisians are
extremely price competitive.


Customer Support

One major complaint Tunisians have about American products is the
lack of after sales service and customer support.  Those firms,
like Caterpillar, that offer extensive service have been very
successful and maintain large market share.


Selling to the Government

U.S. companies have recently scored several important successes
in selling to the Tunisian government.  Companies seeking to
compete in a government tender must be prepared to submit offers
in French.  The tender process in Tunisia is rigorous; companies
must meet tender specifications precisely.  In addition to
technical requirements, companies should usually be prepared to
include some type of local content and to address financing
issues.  The whole process can be quite extended.  Each offer is
thoroughly examined and given a weighted score by the responsible
ministry.  Offers are then reviewed by the Commission Superieur
du Marche (CSM), an interministerial committee responsible for
examining and approving all offers.  The CSM makes the final
recommendation and for major contracts the offer is endorsed by
the Prime Minister.


Protection of Intellectual Property Rights

Tunisia's patent and trademark laws provide excellent protection
for duly registered owners.  American businesses are guaranteed
treatment equal to that afforded to Tunisian nationals in the
area of patents.


Need for a Local Attorney

The Embassy strongly recommends consulting with a local attorney
early on.  Tunisian law is based in many cases on its French
counterpart and contains nuances unfamiliar to American
businesses.  A list of Tunisian lawyers specializing in
commercial matters can be obtained from the U.S. Embassy.