V. Marketing U.S. Products and Services A. Distribution and Sales Channels Products are generally distributed through numerous small distributors. Shopkeepers purchase imports through these small distributors. Some local manufacturing goods are purchased directly from the manufacturer; other products, such as tobacco and tea, are purchased through wholesalers. B. Use of Agents/Distributors; Finding a Partner The Chamber of Commerce may have listings of local agents and distributors. The Uganda Manufacturers Association (UMA) maintains a reading room and often fields inquiries from agents and distributors or companies looking for outside partners, but the UMA does not maintain a formal network. C. Franchising Not applicable. D. Direct Marketing Not applicable. Mail and telephone service are unreliable and not suitable for direct marketing efforts. E. Joint Ventures/Licensing Joint ventures are covered by the Investment Act. See Section V on investment climate for detailed information regarding licensing. F. Steps to Establishing an Office The Uganda Investment Authority (UIA) is intended to be a "one stop shop" for investors and is the contact for registration and licensing. Although the UIA has not yet reached the level of service it is aiming for, it can lead foreign companies wishing to establish an office through the steps required to accomplish registry, licensing, immigration matters, tax matters, customs matters, sub-licenses and permits. It is suggested that foreign investors engage the services of a local law-firm to assist with legal and other requirements in setting up a business. G. Selling Factors/Techniques Products are marketed through advertising in the newspaper, on radio and on television. There are very few advertising agencies in Uganda. Coke and Pepsi have run successful promotions with contests based on collecting bottle caps or finding bottle caps with special symbols. Shell Oil has also conducted a highly successful promotional campaign with giveaways and prizes. H. Advertising and Trade Promotion Listing of major newspapers and business journals: The New Vision, P.O. Box 9815, Kampala, tel: 235209 The Monitor, P.O. Box 12141, Kampala, tel: 236939 The Daily Topic, P.O. Box 1725, Kampala, tel: 231854 Ngabo Newspaper, P.O. Box 9362, Kampala, tel: 250937 The People, P.O. Box 4615, Kampala, tel: 242764 The Citizen, P.O. Box 1658, Kampala Uganda Confidential, P.O. Box 5576, Kampala, tel: 250273 The Tribune, P.O. Box 5100, Kampala, tel: 244457 The Economy, P.O. Box 6787, Kampala, tel: 245950 Munno Newspaper, P.O. Box 4027, Kampala, tel: 245224 Listing of radio and television stations: Radio Uganda, P.O. Box 7142, Kampala, tel: 257257 Radio Sanyu, P.O. Box 30961, Kampala, tel: 285494 Capital Radio, P.O. Box 7638, Kampala, tel: 235092 Uganda Television, P.O. Box 7142, Kampala, tel: 245376 CableSat TV, P.O. Box 7502, Kampala, tel: 257952 I. Pricing Product Depending on the amount of competition in a given sector, pricing appears to be based on what the market will bear. Prices are somewhat tempered by the nearby Nairobi marketplace. Generally, western goods and services are quite expensive and there is little local competition to moderate prices. For any large scale equipment or services, the competition is with large European and Asian companies and the market for large scale items is often governed by the entity that is financing the project (generally a donor or donors). J. Sales Service/Customer Support Customer support can be a major issue for American goods. Ugandan customers suspect that better support will be provided by their traditional trading partners and tested firms from nearby countries or Europe. U.S. manufacturers need to prove that they can supply parts and service and that they can provide service comparable to that provided by companies with a traditional base in East Africa. K. Selling to the Government Most government purchases are done through tendering. The Central Tender Board controls tendering, and advertises in the newspapers and by sending invitations to organizations in Kampala including the Embassy. All tenders received from the Central Tendering Board are submitted to the Department of Commerce as Trade Opportunity cables. L. Protecting Your Product from IPR Infringement The Investment Code of 1991 makes provisions for foreign exchange remittances in respect of transfer of foreign technologies. In order to benefit from this, investors must have registered agreements with respect to the transfer of technology with the Uganda Investment Authority (UIA) when seeking an investment license. The law on patents was recently revised, repealing the previous patents act and creating the patents statute of 1991. Under Section 32, the Registrar of Patents awards patents for an initial period of 15 years, with a possible five year extension if a request is made one month before expiry of the original term. Bootlegging of cassettes and videos is common, and any visitor to Kampala has the opportunity to purchase recent music and movies for a minimal price. U.S. firms marketing goods which can be copied easily with relatively low technology should be aware that bootlegging of their product is a possibility. M. Need for a Local Attorney The UIA handles many functions which might otherwise require an attorney. Nevertheless, local attorneys are useful, available and are aware of changing regulations. A list of attorneys is available from the Consular section at the U.S. Embassy.