Potable Aqua In Uganda (Global Marketing)


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Potable Aqua In Uganda (Global Marketing)

  1. 1. Executive Summary Potable Aqua tablets are the world’s leading water purification tablets. We would like to market these tablets in Uganda, a country that is showing overall stability but is in dire need of a method of water purification. Uganda has recovered from a violent and unstable political past to become a constitutional democracy with peaceful elections. This combined with the independent judicial system make Uganda one of the least risky African nations in which to do business. Uganda is home to many waterways and ports which can be used to efficiently transport the tablets into the country. While the water in Uganda is plentiful, weak infrastructure causes the water to be unsafe to drink. Even if the water is purified, it is difficult to transport clean water to areas that need it most, such as the arid northwestern corner of the country. While many Ugandans live below the poverty line, the communal family structure allows Ugandans to purchase more expensive products by pooling their resources. Also, more and more Ugandans are leaving rural areas to find higher-paying work in urban areas. The income generated in the cities is sent back through rural areas, the residents of which are most in need of water purification. The Ugandan government is heavily focused on improving its educational infrastructure. While far from perfect, more Ugandans are attending school than ever before and the illiteracy rate is on the decline. This is a positive sign for the viability of Potable Aqua because as the population becomes more educated, they will also continue to raise their standards of living. More money in the pockets of Ugandans means more spending money on helpful commodities such as water purification tablets. President Museveni has succeeded in installing a stable government with extensive branches reaching to individual rural communities. Not only is it safer to operate within relatively stable countries, but Potable Aqua could benefit from the Ugandan government’s well-organized local network. By convincing the Ugandan government to help distribute health-related products, Potable Aqua could open up more precise channels of distribution within the country. The judicial system in Uganda is independent of the executive and parliamentary branches, so resolving legal conflicts would be less risky and similarly structured like court systems in the United States. Another positive sign for Potable Aqua in Uganda is that Uganda is a member of the African Regional Industrial Property Organization (ARIPO). ARIPO is a parent, trademark and design protection group of 18 African nations who work together in agreement that these kinds of protections promote trade and economic growth. Business customs and practices are very similar to those in the United States, and are conducted in English. In terms of communication, time perception, and clothing, Ugandan business people are not too far off from American business people. One issue that Potable Aqua might face is in sending female executives to Uganda. It is not common for women to be employed in Uganda, let alone in a position of power.
  2. 2. Most Ugandans are Christians, and the church is playing an increasing role in Ugandan customs. Islam is the second most prolific religion, A dangerous Christian-based cult called the Lord’s Resistance Army causes continuous economic, political, and social unrest as they massacre and enslave fellow Ugandans. Over 200,000 Ugandans have been displaced by this cult. Another important highlight for Potable Aqua’s business in Uganda is the popularity of soccer. Uganda’s capital, Kampala, holds one of the largest soccer stadiums in the worlds and Ugandans follow their favorite teams and players avidly. This opens up the opportunity for Potable Aqua tablets to market to consumers through soccer stars. This could help advertisements overcome the mass illiteracy in Uganda.
  3. 3. Cultural Analysis I. Introduction Company profile: Potable Aqua is the world's leading water purification tablet company. The tablets were created at Harvard University by scholars and the U.S. Army in the 1940s. The iodine compound in the tablets makes water bacteriologically safe to drink after a 30-minute waiting period. Main consumers of these tablets so far have been campers, backpackers, and military personnel. Profile of Uganda: According to the CIA World Factbook, the boundaries of Uganda were formed by Britain and encompassed a wide range of political systems and cultures. The diversity of cultures in Uganda have severely hindered the nation from establishing a functional political system after the country achieved independence in 1962. The political history of Uganda is plagued by violent dictators, massacres, and human rights abuses. The new president of Uganda, Yoweri Museveni, has promoted more stability and economic growth in recent years. In January 2009, Uganda took a nonpermanent seat on the UN Security Council. The population of Uganda is estimated at 32,369,558 people. 50% of the population of Uganda is under the age of 14, while only 2.1% of the population is over 65 years old. The most common waterborne illness in Uganda is Shistosomiasis, otherwise known as Snail Fever. Potable Aqua water purification tablets are effective in preventing this parasitic disease. II. Brief history The history of Uganda: In 1894, Uganda became a British protectorate. The country was ruled indirectly by the British until Uganda began its thrust towards independence following World War II. Kabaka Mutesa II was deposed in 1953 when he ceased to force his chiefs to comply with the British, only to be restored to power after a compromise in 1955. Uganda won independence officially at the constitutional conference in London on October 9th, 1962. In April 1966, Uganda adopted a new constitution that created the post of president and commander-in-chief, which was filled by Milton Obote. Obote forced the kabaka from office and took over the palace. In 1967, revisions to the constitution served to unify various Ugandan kingdoms. In 1971, Maj. Gen. Idi Amin led a military coup while Obote was out of the country. Some Ugandans followed Obote to Tanzania, and Ugandan relations with Tanzania have been tense ever since. Amin led a noncitizen expulsion in 1972, pushing out many British nationals and nationalizing UK-owned businesses. Under the reign of terror imposed by Amin, up to 300,000 lives were lost by 1977 according to Amnesty International. The expulsion of noncitizens had a heavy toll on the Ugandan economy by hindering trade and agricultural and industrial production. (www.HistoryWorld.net) In July 1985, Obote was overthrown by Yoweri Museveni and his National Resistance
  4. 4. Army (NRA). Museveni established the National Resistance Council to govern the country. Since taking control of Uganda, Museveni has been able to establish some peace and prosperity within the country. In 1993, Museveni lifted the ban on political parties and the country has held elections regularly. Museveni has won these elections with substantial majority votes. Currently plaguing Uganda with violence are the activities of the Lord’s Resistance Army (LRA), a violent sect with religious motivations that deliberately attacks civilians. In the 17-year battle between Museveni’s forces and the LRA, extreme economic dislocation has created an estimated 200,000 refugees in Uganda. Clean water availability in Uganda is also a major concern for the country’s government. In 2004, Uganda hosted a massive conference to discuss the distribution of water from the Nile river system to surrounding African nations. 10 countries rely on the water from the Nile system for consumption and crop production. Economically, the relative scarcity of water when shared amongst these nations has aided in the slow development of Uganda. (http://www.iexplore.com/dmap/Uganda/History) According to Unesco.org’s analysis of Uganda’s water sector, the country is struggling to turn it’s somewhat abundant fresh water supply into a potable source of drinking water. Only 59% of Uganda’s rural population and 65% of Uganda’s urban population has access to safe drinking water. The goal of the water sector in Uganda is: “To manage and develop the water resources of Uganda in an integrated and sustainable manner so as to secure and provide water of adequate quantity and quality for all social and economic needs for the present and future generations with the full participation of all stakeholders.” Implications: The economic, political and social unrest in Uganda has hindered the country’s ability to fix its infrastructure. Unfortunately, the country is a long way from stability. For these reasons, we feel that Potable Aqua tablets have their place in the Ugandan market. The tablets are relatively inexpensive, long lasting, and can be transported and stored without special accommodations. The tablets retail for about $11 for a package that will treat 20 quarts of water. III. Geographical Setting A. Location Uganda is a landlocked nation next to the equator. It is bordered by Tanzania, Kenya, Sudan, Rwanda and Zaire. It is about twice the size of Pennsylvania. The lake along the Southeast border of Uganda is Lake Victoria. It contains several small islands which lie within Uganda's borders. Implications: While water is plentiful in Uganda, it is not safe to drink. The
  5. 5. infrastructure of Uganda is not developed enough to turn these water resources into safe, potable water and to distribute it to the dry areas of the country. Potable Aqua tablets would make it easier for Ugandans to turn this abundant water supply into drinking water. It will also help to make distribution of water to the dry areas of Uganda more viable as the water can be transported in its unsafe form, then turned into safe drinking water upon arrival by individuals. B. Climate Because Uganda lies along the equator, the climate is generally sunny and warm, with about 254 days of sunshine per year, and a high temperature of 83 degrees. There is little variation in temperature, and the seasons are defined by wet or dry periods. The dry season is from December to February and mid-June to mid-August. Rainy seasons are from March to May and from September to November. Average annual rainfall is about 40 inches. The tops of the mountains of Uganda are often covered with snow. Implications: This climate is moderate and should not cause any problems in terms of distribution of Potable Aqua tablets. The tablets are in a waterproof canister, and can withstand extreme temperatures without losing effectiveness. They are also effective in treating water collected from rainfall. C. Topography Most of Uganda lies on a plateau above sea level. The western border is mountainous, with the tallest peak (Margherita Peak) rising to 16,762 feet. Uganda's borders include Lake Victoria, which is the source of the White Nile river. Numerous rivers flow through Uganda, feeding a multitude of lakes such as Albert, Edward, and Kwania. The northwestern corner of Uganda is the only are without these water resources nearby. Implications: The water system in Uganda could provide a good way to transport the tablets into the country. The overall poor infrastructure in Africa would make it difficult to transport products by land. IV. Social Institutions A. Family 1. The nuclear family: Ugandan families are predominately patriarchal. Most families have a large number of children, who often contribute to the family's income when they are old enough. (Ingoldsby) 2. The extended family: The extended family in Uganda is very important. Families are large and polygamous, and it is expected that the entire extended family (called a clan) will contribute to raising the children. Children are expected to memorize their heritage, as ancestry is very important to Ugandan families. The extended family pools resources to survive. (Ingoldsby)
  6. 6. 3. Dynamics of the family: a. Parental roles: It is expected that the women of the clan raise the children and perform chores such as cooking and fetching firewood and water. Once extremely rare, single-parent households headed by women are becoming increasingly common as more and more men leave their rural homes to find better-paying jobs in urban areas. (Otiso) b. Marriage and Courtship: When couples marry, it is not uncommon for the family of the groom to pay a dowry called ―bride wealth‖ to the family of the bride. Traditionally, marriages have been parent-arranged, although there is an emerging trend of Ugandans choosing their spouses. When a woman is married off, she leaves her own clan and joins her husband’s. It is unlikely she will see her own family much, if at all, after marriage. Generally, inter-clan marriages are taboo, although some tribal traditions to permit it. (Ingoldsby) Polygamy is a common practice, and fits well with the communal structure of family life in Ugandan clans. Another way a man might acquire a wife is called ―wife inheritance‖ in which a man will inherit the spouse of a deceased friend or relative. (Otiso) 4. Female/Male Roles: Changes Uganda was introduced to major social change during the period of colonialism in which they were subjected to a variety of languages, customs, religions, and more. Indigenous traditions are still prominent, but are increasingly fading. Economic change has also had an effect on traditional gender roles. Subsistence farming is becoming a less viable means of living, so Ugandan men are migrating to the cities to find work. This affects gender roles for both parties. While at home, for example, females are often in charge of making major financial decisions. While in urban areas, men cook their own meals and clean their dwellings. (Otiso) Implications: The communal aspect of social institutions in Uganda is a benefit to Potable Aqua tablets. When communities pool resources, they will be able to afford commodities out of the price range of a single household. We feel that clean water is important enough to Ugandans that they will make the purchase of these tablets a priority within their clans B. Education 1. The role of education in society a. Primary education: Children in Uganda start school at the age of 7, if they are able to attend. Many children are not able to attend school due to illness, lack of schools in their area, or because they are needed to work in the fields with their family. Children are in primary school for 7 years. The Ugandan government pays for four children to attend school per household. However, the average number of children in a Ugandan household is eight. This means that the larger the family, the less likely it becomes that a child will be able to attend school. Anushka Asthana wrote in The Guardian that ―Museveni may have abolished fees, but he could not pay to feed every child in the country at school, nor provide pens, science equipment, transport or even clothing.‖ Asthana says that this is the reason why there are over 750,000 children who cannot attend school. Many children have also
  7. 7. been displaced by the violent activities of the Lord’s Resistance Army, as mentioned in the ―Brief History‖ section. Despite these setbacks, Asthana says that Museveni and Uganda are leading the way in Africa for education. Primary schools in Uganda are very formal. Most children want to go to school and understand the importance of education. Educators are widely revered in Ugandan society. Some schools in urban areas provide transportation for students to and from school, but children in rural areas must walk an average of 6 miles to reach the nearest primary school. The school structures are open bungalows with concrete floors and metal roofs. (www.ExperienceAfrica.co.uk) b. Secondary Education: Ugandan children attend secondary school for 4 years if they are able to. In 2007, the Ugandan government made the first 2 years of secondary education free for students. This has caused classes to balloon to class sizes way over capacity. Due to excessively large class sizes and shared materials, the quality of Uganda’s secondary schools is often called into question. Middle class Ugandans send their students to private secondary schools, so the students in the government-funded schools tend to be highly impoverished. As a result of this disparity, the students in the private schools perform much better on tests and are able to take up most scholarships and governmental aid, leaving the poorer students without a fighting chance. (Bunting) c. Higher Education: Uganda has 2 major public universities, Makerere University (the oldest university in East Africa) and Mbarara University of Science and Technology. Between the two universities, about 25,000 students are enrolled. A 2000 UNESCO study found that about 35,000 Ugandans were enrolled in postsecondary education. It takes about 3 years to earn a bachelors degree. The larger universities have amenities such as extensive libraries, housing, and other convenient features. 2. Literacy Rates The literacy rate for male Ugandans between the ages of 15 and 24 is 88%. For females in that age group, the literacy rate is 84% according to 2007 UNICEF data. Xinghua News Agency reported in March 2005 that Uganda’s total literacy rate had nearly doubled since 2000 data to 68%. Implications: It is clear the Museveni and the Ugandan government are working towards improving education availability and standards for their youth. In the Guardian, it was written the Uganda is leading the way in education for Africa. This, along with an increasing literacy rate, is promising because the more educated citizens in Uganda, the more likely it is that average incomes will raise. More money in the hands of Ugandans means more purchasing power for the necessity of clean water, provided by Potable Aqua tablets. C. Political System
  8. 8. 1. Political Structure Uganda has a constitutional government with a president (Museveni, currently) and parliament of 309 members. Both branches are elected by Ugandan citizens. A presidential term is 5 years. The country held elections in 2006 and will hold their next elections in 2011. The President is assisted by the Vice President, the Prime Minister, and Cabinet Ministers. 2. Political Parties According to the Columbia International Affairs Online site, the National Resistance Movement (NRM), headed by Museveni, is the dominant political party and holds a substantial majority of the parliament. The largest opposition party, though by no means dominant, is the Forum for Democratic Change (FDC) which branched off from the NRM. Relatively obscure are the Democratic Party and the Uganda People’s Congress. 3. Stability of Government UgandaInvest.com says that Museveni’s firm leadership has created high government stability in Uganda. ―Uganda has transformed into a politically stable country with a dynamic economy based on free market principles,‖ says the website. For 12 years, Uganda has adhered to a constitutional government committed to growth under Museveni, who has been re-elected twice by Ugandans. 4. Special Taxes Taxes on imports in Uganda are regulated by the East African Community Customs Management (EACCM) Act. The act does provide certain exemptions from customs duties for imported health-related products that are approved by EACCM standards. No tax treaties have been entered into between the US and Uganda. (USIG.org) 5. Role of Local Government Uganda’s Ministry of Local Government website states that Uganda is divided into many districts which are headed by lower Local Governments and Administrative Unit Councils. Representing communities, minorities and special interest groups are the Elected Local Government Councils. One-third of each of these councils is made up of youth and female councils. These councils are powerful because they have both legislative and executive powers to make local laws and enforce them. Administrative Unit Councils are more involved in planning and organization of services, resolution of disputes, and maintenance of law and order. Implications: The implications are positive for the exportation of Potable Aqua tablets into Uganda. It seems that the government has been focusing its efforts on organization, stability, and growth. All of these factors will be beneficial to Potable Aqua. The Ugandan government is eager to participate internationally in trade, and will probably do its best to protect and defend American companies seeking to do business within Uganda. Also, there is an opportunity to apply for special tax exemptions due to the beneficial health qualities of Potable Aqua tablets. Another implication is that Potable Aqua may be able to utilize the localized infrastructure of the government to distribute purification tablets to rural areas. By teaming up with the government to promote the health factors of Potable Aqua, new distribution channels could open up.
  9. 9. D. Legal System 1. Organization of the judiciary system The Ugandan judicial system is based on English common law, according to the Encyclopedia of the Nations. The judiciary branch is independent of other government branches. The lowest level is presided over by magistrates. Directly above these magistrates is the chief magistrate’s court, which hears appeals from the magistrate. At the top of the judicial system is the High Court, which hears appeals and has complete criminal and civil jurisdiction. Heading the High Court is a chief justice and a number of justices below him. There is a separate court to handle military issues. (GlobalLex) 2. Common Law As mentioned above, the English legal system and law are prominent in Uganda. Their judiciary system is based on English Common Law, with a small amount of African customary law that is in effect when it does not conflict with statutory law. 3. Participation in Patents, Trademarks, and Other Conventions Uganda’s patent, design, and trademark registrations are through the African Regional Industrial Property Organization for English-Speaking Africa (ARIPO). ARIPO includes 18 African nations and is based on the Lukasa Agreement, which established a common ground for adherence to regulations on the grounds of increasing economic growth. Independent agents in Uganda commonly assist companies in filing and maintaining the patents and trademarks under ARIPO. One of the objectives of ARIPO is ―to establish such common services or organs as may be necessary or desirable for the co-ordination, harmonization and development of the industrial property activities affecting its members.‖ (ARIPO.org) Implications: An independent judicial branch is a good sign that it would be less risky to do business in a particular country. The fact that Uganda’s legal and judicial system is based on English common law means that the environment will be organized in a similar way to that of the US. Uganda also shows commitment to protecting patents, trademarks and designs, which will make the country a safer place to promote a product as unique as Potable Aqua. E. Social Organizations 1. Group Behavior Ugandans are communally minded, and groups are structured hierarchically. Women and children are subordinate to men, and in very traditional groups the women will often not make eye contact with males. Groups are usually structured around the family clans. Clan loyalty is important. Ugandans bond by telling jokes – humor is a huge part of Ugandan daily life and social interactions (Otiso) 2. Social Classes There are no castes in Uganda, but social stratification is prominent. The majority of the population lives below the poverty line. The top 10% of the population owns 1/3 of the available wealth, and the bottom 10% own just 3% of the wealth. The wealthiest citizens mostly live in Kampala, the capital. Social stratification is based largely on level of education and type of employment. While people is the lower
  10. 10. classes wear traditional garb, wealthier Ugandans like to dress in modern western fashions. (www.EveryCulture.com) 3. Clubs and other organizations Uganda’s clubs and societies are generally limited to urban areas, according to AlloExpat.com. Many of the societies are cause-related, such as the club Nature Uganda and the Historic Buildings Conservation Group of Uganda. 4. Race, Ethnicity and Subcultures Ugandans are generally classified according to linguistic similarities. Most Ugandans speak either Bantu or Nilotic dialects. Lake Kyoga is somewhat of a boundary between these two groups. Bantu-speaking ethnicities include Eastern Lacustrine and Western Lacustrine. Nilotic-speaking ethnicities include Iteso, Lango, Alcholi and Karamojong. The Lugbara and the Madi are defined by their central Sudanic languages. A handful of Pygmies live scattered in the Ugandan rainforests. Smaller subcultures include the Asian and Indian populations of Uganda, and Muslim Ugandans. (CountryStudies.us) Implications: While featuring a variety of languages and tribes, Uganda is a relatively unified country because the citizens speak English and adhere to a constitutional government rather than individual tribal laws. This is important for the marketing of Potable Aqua. It will be easier to promote a product universally to this relatively homogeneous country. F. Business Customs and Practices Dressing well is highly valued in the business world of Uganda. Men wear suits in urban areas, and in rural areas it is acceptable to wear slacks and a nice shirt with a collar. For women, dress is conservative. In urban areas, women should wear a suit that is not too close-fitting. In rural areas, it’s more appropriate for women to wear a long skirt. Interestingly, well-kept shoes are a sign of status. Businesspeople look down upon people with worn-looking shoes. Titles are very important. It is best to always address adults using Mr., Mrs., or Miss. Also, it is common to refer to people using their title, such as Mr. Vice President. First names are reserved for close friends and family and should not be used during business. Business cards so not a have specific protocol, but it is best to treat them with respect. Punctuality is valued more highly in business settings than in daily Ugandan life. Higher-status Ugandans are generally more punctual. Shaking hands is an appropriate business greeting, but one should always use his or her right hand. Personal space is minimal, and holding hands with someone of the same gender is common. (www.businessculture.com/uganda.html)
  11. 11. V. Religion and Aesthetics A. Religion and other belief systems 1. Orthodox doctrines and structures An estimated 66% of the Ugandan population is Christian, divided between Protestants and Roman Catholics. About 15% of Ugandans are Muslim, and the remaining 19% believe in local religions or have no religious affiliation. Christianity is viewed somewhat differently in Uganda, as the importance of the afterlife is deemphasized. (CountryStudies.us) 2. Relationship with the people Church proliferation and membership has been beneficial to the Ugandan economy because they sometimes provide more opportunities for education for adults and children, employment, and social advancement. (CountryStudies.us) 3. Which religions are prominent? As mentioned above, Christianity is the most prominent religion. The Muslim religion is the second largest, which gained prominence as East Africans assimilated to trade goods in Uganda. (CountryStudies.us) 4. Membership of each religion Christianity: 4 million Ugandans Islam: 2.6 million Ugandans Remainder: Local religions or no religious affiliation 5. Influential cults In March 2000, members of the Movement for the Restoration of the Ten Commandments murdered 5 people and conducted a mass suicide which killed 330 people, including 78 children. (BBC News) The Lord’s Resistance Army is the most powerful cult in Uganda, and has connections to the Movement for the Restoration of the Ten Commandments. The cult kidnaps young boys and girls to use as soldiers and sex slaves. Adults are maimed and massacred. The LRA says that they are fighting for a government based on the Ten Commandments. (GlobalSecurity.org) B. Aesthetics 1. Visual Arts Ugandan women spend painstaking hours crafting beautiful mats, table spreads, and baskets. Beading elaborate designs on clothing is also a popular art form in Uganda. Some tribes traditionally create elaborate wall paintings, while others prefer to make complex headdresses or paint their bodies in vibrant colors. Some Ugandan universities even offer a fine arts degree, which is uncommon in East African nations. (PanafricanArtists.org) 2. Music Ugandans listen to a broad variety of music. Guitar and drum ensembles are very popular because it is easy to incorporate ancient tribal rhythms into this kind of modern music. Gosper music is also gaining popularity in Uganda. Dancing and
  12. 12. music are so closely intertwined that the word ―ngoma‖ means both activities. (Uganda National Culture Policy) 3. Performing Arts Performing arts are very important to Ugandans for self-expression, education, and entertainment. Communities use performed stories to educate audiences about their heritage. These performances also help to bind communities together more tightly. Though limited, the increasing popularity of performing arts has helped create jobs for Ugandans. (Uganda National Culture Policy) 4. Folklore and relevant symbols Folklore is usually specific to ethnicities because they are communicated through lines of common languages. Many folklore stories consist of creation legends and address the questions of how humans came to exist and what happens when they exist no more. A common symbol in Ugandan folklore is the Trickster. The trickster, often a fox or other doglike animal, serves to unwind carefully laid plans and wreak havoc. The Trickster stories usually highlight human perseverance against unlucky odds. (www.Sacred-Texts.com) Implications: There are no obvious implications VI. Living Conditions A. Diet and Nutrition 1. Meat and vegetable consumption rates While this data is unavailable for Uganda, a report from the Food and Agriculture Organization of the United Nations stated that 55% of Ugandan food consumption is non-starchy foods. 2. Typical meals Ugandans typically eat two meals a day, lunch and dinner. Breakfast is usually a cup of tea, or porridge. Common meals include millet bread, sweet potatoes, and chicken or beef stews. (www.EveryCulture.com) 3. Malnutrition rates The Food and Agriculture Organization of the United Nations report said that as of 2003, 19% or 4.6 million Ugandans were malnourished. Thankfully, this figure has declined from 26% in 1997 data. 4. Foods available Ugandans typically raise their own animals for meat and grow their own vegetables. Foods available include chicken, beef, eggs, goat meat, goat and cow milk, bananas, sweet potatoes, yams, corn, cabbage, pumpkins, beans, and peanuts. (www.EveryCulture.com) Implications: While the malnutrition rate in Uganda is still almost 20%, it does appear to be declining. This means that the population is getting better at proving their own basic needs. One of these needs is pure water. Ugandans are increasingly in a better position to purchase Potable Aqua tablets. B. Housing 1. Types of housing available
  13. 13. Most Ugandans live in thatched huts with mud walls. The government-supported National Construction and Housing Corp. has developed a ―growing house,‖ which is a one-room home that is ready to move into, but easily expandable. 2. Do most people own or rent? Most rural Ugandans build huts upon communally owned clan property. In urban populations where seasonal workers are common, renting apartments is more prevalent. Uganda’s very small upper and middle classes mean that home ownership is not more common than renting. (www.EveryCulture.com) 3. One-family dwellings or with other families? Ugandans typically live in one-family huts. However, these families are extremely large because they consist of several children and often multiple wives. The shacks often have a room connected in which the family’s livestock stays at night. Implications: There are no obvious implications C. Clothing 1. National dress Busuti or Gomasi (colorful saris). Kanzu is the national clothing of men in Uganda. Safari suits are also common Ugandan attire. School uniforms are the norm for children who attend school. 2. Types of clothes worn at work As mentioned above, dressing well is highly valued in the business world of Uganda. Men wear suits in urban areas, and in rural areas it is acceptable to wear slacks and a nice shirt with a collar. For women, dress is conservative. In urban areas, women should wear a suit that is not too close-fitting. In rural areas, it’s more appropriate for women to wear a long skirt. (www.businessculture.com/uganda.html) Implications: There are no obvious implications D. Recreation, Sports and Leisure Activities 1. Types available and in demand Soccer is an extremely popular sport in Uganda. Kampala holds one of the largest soccer stadiums in the world, and millions of Ugandans support their favorite soccer teams (Brittanica.com). Recreation is usually what Ugandans can do with little resources, such as ball games. Rugby is also very popular. (AfricaProfile) 2. Percentage of income spent on such activities No information was available for this category Implications: Due to the universal popularity of soccer in Uganda, there is a good opportunity for marketing based on the sport. Using popular sports figures in graphic advertisements would also overcome the obstacle of illiteracy. E. Social Security Uganda’s social security is provided by National Social Security Fund (NSSF) since 1985. It is a compulsory savings program for Uganda’s qualifying employees. The
  14. 14. NSSF invests heavily in a portfolio designed to help stimulate the Ugandan economy while providing good returns to pay for benefits. Implications: Once more, the existence of a stable social security system enforced by the government shows that Uganda is moving in the right direction towards becoming a more prosperous nation. This of course implies that Potable Aqua tablets will become increasingly affordable to more Ugandans. F. Health Care Only 49% of Ugandan households have access to health care. This is largely due to poor infrastructure in rural areas of the country. Uganda has developed a Health Sector Strategic Plan to try to improve this statistic. The basis of the plan is to use the political structure to be able to provide at least some healthcare facilities to rural areas through local government branches. (WHO/AFRO) Implications: There are no obvious implications for our product VII. Language A. Official Language English is the official language of Uganda. This principle has its roots in Uganda’s history as a British colony. B. Spoken versus written languages Most Ugandans speak and write in English. Within clans, Ugandans sometimes speak in the languages with which they are familiar (there are 45 languages listed for Uganda). (Ethnologue.com)
  15. 15. VIII. Sources of Information www.PotableAqua.com www.ExperienceAfrica.co.uk www.HistoryWorld.net https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html www.historyworld.net/wrldhis/plaintexthistories.asp?historyid=ad22 http://www.southtravels.com/africa/uganda/weather.html Ingoldsby, Bron. "Families in Global and Multicultural Perspective," 2005 Otiso, Kefa. ―Culture and Customs of Uganda,‖ 2006 Asthana, Anushka. ―Background: Education in Uganda.‖ The Guardian, March 6 2008 Bunting, Madeline. ―Debate: The State of Education in Uganda.‖ The Guardian, May 23 2008 http://www.unicef.org/infobycountry/uganda http://www.highbeam.com/doc/1P2-15904978.html (Xinghua New Agency, March 2005) USIG.org (United States International Grantmaking) http://www.molg.go.ug/local_govts/local_gov_system.htm (Ugandan Ministry of Local Government) http://www.nationsencyclopedia.com/Africa/Uganda-JUDICIAL-SYSTEM.html (Encyclopedia of the Nations) http://www.law.nyu.edu/global/researchtools/globalex/index.htm (GlobaLex) http://www.aripo.org/index.php?option=com_content&view=article&id=19&Itemid=53 (ARIPO) http://www.everyculture.com/To-Z/Uganda.html http://www.alloexpat.com/uganda_expat_forum/clubs-societies-in-uganda-uganda- association-guide-t632.html
  16. 16. http://countrystudies.us/uganda/21.htm http://news.bbc.co.uk/2/hi/africa/684418.stm (BBC News) http://www.globalsecurity.org/military/world/para/lra.htm http://www.panafricanartists.org/overcomingmaps3/art_uganda_en.htm http://ocpa.irmo.hr/resources/policy/Uganda_Culture_Policy-en.pdf (Uganda National Culture Policy) http://www.sacred-texts.com/afr/mlb/index.htm http://www.fao.org/faostat/foodsecurity/Countries/EN/Uganda_e.pdf (Food and Agriculture Organization of the United Nations) http://www.britannica.com/EBchecked/topic/612597/Uganda/258889/Sports-and- recreation http://www.africaprofile.com/uganda-sports.html http://www.afro.who.int/uganda/healthsytems.html (WHO/AFRO) http://www.ethnologue.com/show_country.asp?name=UG
  17. 17. Executive summary Population After being able to study the population of Uganda and its distribution across the country, we do see that there are several areas in which we would be able to take advantage of. We do understand that if Uganda is going to continue to grow as they have been that safe drinking water is vital. They are already fighting the battle against AIDS, harmful water is a battle we believe we can help overcome. Upon looking at the population as a whole, we also believe that we want to primarily focus on getting our product into the age group 0-14. The 0-14 year old group is our base but the 15-64 year old group is our source. We understand that 0-14 year olds would not be able to purchase our product given the fact that ―legal‖ labor doesn’t start until 18. We will gear our ads to the groups who are more financially stable and able to purchase our product. Our product throughout the ads will show the positive effect of the product, whether is the fact that these tablets remove diseases or provides overall health. We will also keep in on consumer affective feelings. We want them to feel and see our product not as a want but as a need. Another thing we will need to do when marketing to this group is allow the 15-64 year old group to understand that the younger group needs them, and if they are dying from water bone disease that they are taking a vital part of their kids life out of them. The marketing strategy may seem simple but it is far from it. Economic Statistics and activities Uganda has been able to show that their total market value can increase even in scarce areas and when fighting against many different diseases. Uganda is also ranked relatively high on the list where countries rank in the world. They rank 58th out of 228 where the US a far more developed country ranks 22nd. Their per capita income has held steady for the past three years at $1,100. We do believe that most consumer will be able afford our product, but we still see fit that for starters that we make it cost friendly for all consumers. Extent of economic activity not included in cash income activities Uganda is still very dependent on foreign aid. As their relationship with the US is a good one, this will positively influence our business with them. Their need for foreign aid can perhaps call for discounts and generally make it easier for our business to thrive there. Trade Restrictions The main restriction or taxation that we will encounter in doing business in Uganda is the 18% value added tax. Depending on how they see our product, as a regular dry good or a medical good, will determine if this tax applies to us. It will be very important in verifying what they view our product as. Our connections through the WTO will greatly benefit our business and make it exponentially easier to export to Uganda. Because of this, there appears to be no major obstructions in getting successfully and efficiently getting our product to market.
  18. 18. Transportation and Communication Transportation is key, after all we need to be able to get our product into Uganda safely. 2008 Dun & Bradstreet explains that the majority of trade and shipment into Uganda is done through the port of Mombasa, Kenya and Dar es Salaam, Tanzania via railways to Lake Victoria and then finally ferried to Uganda. We have also looked into cheaper ways in enter Uganda via ports and trade centers, where transportation are lower. With keeping cost at a minimum we will prefer to distribute our product using waterways and attempt to have retailers close to waterways. For those consumers who cannot be reached by waterways, we will have to take our product to them in their area. There some roads that are paved but the majority of them are not. We must also be sure to move our product in mass amounts before the rainier seasons, given that unpaved roads in rain will be harder to overcome. One of our biggest concerns we will face with moving the product via truck on land directly is bandit activity. It has been proven that with Uganda being a corrupt society that driver and product safety is a must. We will need to be prepared to have some form of collateral available it a violent takeover would to happen. The majority of these attack ended violently only when the victims resist. We will be advertising and communicating our product to consumers through news papers, radios and televisions ads and the sides of busses. We believe that this will be a good base given most have access to these different types of communication devices. It would also be beneficial that we connect with the Uganda government to partnership in using the TV and radio given that the government controls the major TV and radio networks. The final communication area we would take advantage of is online. Although they are working on securing the cyber connection for Ugandans we feel that to start off the internet would not be cost efficient. If and when we do go online we would you that as a testimonials website and a way for consumer to learn more about the product itself. Working Conditions Being that the Ugandan work week is set at 48 hours, there is room for ample business to be conducted on a week to week basis. The main problem will arise in making sure there is agreement and unity within employees so that our product moves as efficient as possible across the market. We can address this issue by insuring job security and monetary stability to the best of our abilities. Uganda's main problem for further development is a poorly established economy which, can be built by essential steps. Science and technology is an important aspect in building a strong economy. With new advances in science and technology a better standard of living will occur which will in turn, result in a higher development of education. Although, there is one main source where it all begins and this is water. Water is a crucial element and therefore, the need for clean drinking water in Uganda must be implemented. With Potable Aqua consumers with questionable water can use these tablets to ensure clean drinking water. If wholesalers in Uganda sold Potable Aqua to retailers and other businesses consumers would be able to have temporary clean drinking water. Through the media we can educate Ugandans about Potable Aqua and eventually ensure that enough consumers have access to these tablets.
  19. 19. Economic Analysis I. Introduction Uganda is one of the world’s poorest countries and depends heavily on foreign aid. Over the past years Uganda has shown strength in reducing AIDS cases and poverty, while at the same time they have held steady growth. Agriculture is the biggest sector in Uganda it employees between 70 and 80 percent of the workforce. Uganda has also been able to benefit with many of its exports. It is also important to understand that, ―Uganda spends close to $10 million each year treating waterborne diseases.‖ The Uganda governments has already made attempts in providing safe water, but are finding that the amount spent each year is having a greater financial impact. There is roughly 52 percent who do not have safe drinking water. II. Population A. Total 1. Even though Uganda fights the battle against AIDS they still have had a steady growth in population from 2003 through 2008. There most recent numbers show that Uganda as grown from 31,392,654 in 2007 to 32,369,558 in 2008. With their high numbers Uganda is ranked 58th out of 228 in world ranking for population where the US is ranked 22nd. 2. Number of live births = 1,484.7 3. Birthrates i. In order for Uganda to keep their steady population growth they average 48.15 births per 1000 population. This carries a death rate if 12.32 deaths per 1000 population. The 2009 estimate from https://www.cia.gov/library/publications/the-world- factbook/print/ug.html Implications: With us able to take our product to Uganda we will be able to provide the Uganda government one less thing to worry about. We can sure up the concern with unhealthy drinking water and allow the Uganda government to focus on their AIDS prevention. B. Distribution of population 1. Age – https://www.cia.gov/library/publications/the-world- factbook/print/ug.html breaks down the 2009 estimate of age distribution across Uganda as follows i. 0-14 years: 50% (male 8,152,830/female 8,034,366) ii. 15-64 years: 47.9% (male 7,789,209/female 7,703,143) iii. 65 years and over: 2.1% (male 286,693/female 403,317) iv. The average age in the population in Uganda is 19.5 years and has been held steady at that age since 2003. A further breakdown of male vs. female average age is below.
  20. 20. a. Male average age 19.2 years b. Female average age is 19.8 years v. Life expectancy is also key, the average life span for males is 51.66 years and women 53.81. Thus showing that females still tend to live longer than men on average. Implications: Based off the age distribution I also believe that our product would be best served in the 0-14 year old group. Our belief is start them young allow them to be use to using the product and that will then trickle down and follow them as the age themselves. 2. Sex i. Male as of 2008 take up 50.1% while females take up 49.9%. 3. Geographic i. https://www.cia.gov/library/publications/the-world- factbook/print/ug.html states that the majority of Uganda is landlocked meaning primarily surrounded by all land. Uganda is also fertile, and a well-watered country with many lakes and rivers ii. Predominately rural 4. Migration rates and patterns i. Uganda’s migration rate is -8.83 per 1000 population. 5. Ethnic groups i. The 2002 census shows the breakdown of ethnic groups as: Ethnic Groups Baganda Other 17% 30% Banyakole 9% Basoga 8% Bunyoro 3% Lugbara Bagisu Bakiga 4% 5% Acholi 7% Langi Iteso 5% 6% 6%
  21. 21. III. Economic Statistics and activities A. Gross National Product i. Given that Uganda has had a steady increase in population, they have also had a steady Gross Domestic Product (GDP). In 2007 their GDP was 20,953,000 million in Uganda shilling (12,177 million US dollars), that grew to 24,697,082 million in Uganda shilling (14,353 million ins US dollars) in 2008. ii. The breakdown of Uganda’s GDP is as follows; a. Agriculture 29% b. Industry 24.8 % c. Services 46.2 % 2. Rate of growth (real GNP or GDP) Rate of Growth 12 10.8 10 9.8 8 7.9 6.8 6 6.3 Rate of Growth 4 2 0 2004 2005 2006 2007 2008 Implications: Uganda has been able to continue to grow as the GDP figures show while at the same time fighting the battle of AIDS. This shows that this is an economy that can grow at scare times. Our company will be able to see that if we have help one sector that this economy can flourish even more providing us with a larger return. B. Personal income per capita 1. For the last three years the per capita in Uganda has remained steady at $1,100 or 2,348,700 Uganda shilling. Implications: We believe that Ugandans will be able to afford our product, and once attached began repeat purchases. C. Average family income 1. The average family income in Uganda is $320
  22. 22. Implications: There are no obvious implications for exporting and marketing our product related to the research findings in this section. D. Distribution of wealth 1. Income classes i. After research and communication with Sarah Naper we were unable to find any data about the average family income. Although I do believe that there is some class system given the amount of those above the poverty line. 2. Proportion of the population in each class i. 2001 about 35% of the population is below poverty line 3. Is the distribution distorted? i. There was no data supporting either way. Although articles do show that only 35% are below poverty line, I do believe that the rest are either middle or lower class. Implications: There are no obvious implications for exporting and marketing our product related to the research findings in this section. E. Minerals and resources 1. Copper, cobalt, hydropower, limestone, salt, arable land (http://www.infoplease.com/ipa/A0108066.html) Implications: There are no obvious implications for exporting and marketing our product related to the research findings in this section. F. Surface transportation according to https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html 1. Modes i. Airports a. New solar power Ssesamairembe International Solar Airport (SISA) i. 5 total pave runways ii. 27 total unpaved runways b. Entebbe (airport) i. International airport ii. Railways a. All railroads total to 1,244km long or 772.99 miles b. Less the 10 percent of domestic freight and 30 percent of external freights iii. Roadways a. The roadways total to 70,746km or 43,959.53 miles i. Paved 16,272km or 10,110.95 miles ii. Unpaved 54,474km or 33,848.57 miles b. Roadways are not easily accessible during rainy conditions. iv. Waterways a. Cheapest mode in transporting passengers and cargo. i. Lake Victoria,
  23. 23. ii. Lake Albert iii. Lake Kuoga iv. Albert Nile 2. Availability i. Easily available to most Ugandans 3. Usage Rates (unable to find information) 4. Ports i. Locations a. Lake Victoria b. Entebbe c. Jinja d. Port Bell e. Malaba i. Dry port Implications: There are major implications in this section. We must be aware of all option in getting our product to Uganda as well as what transportation methods needed once in Uganda. We will need to make sure we have the right type of vehicles and security. Understanding all options will allow us to be able to make sure that all areas can be reached when getting consumers our product. G. Communications systems according to https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html 1. Types i. Telephone systems a. Domestic i. Intercity traffic by wire ii. Microwave radio relay iii. Radio telephone communication stations iv. Mobile cellular systems b. International i. Satellites earth stations ii. Intelsat in the Atlantic ocean iii. Inmarsat (analog links to Kenya and Tanzania) ii. Radio broadcast systems a. 7 AM and 33 FM channels and 1 shortwave channel b. The government controls dominates the media with ―Radio Uganda‖ iii. Television broadcast stations a. 8 television stations and an additional repeater station b. Government controlled. i. Exporters’ Encyclopedia 2008/2009 By D&B explains that with the increase in demand with televisions and radios that Uganda government decided to merge the
  24. 24. two forming the Uganda Broadcasting Corporation. iv. News papers a. New Vision i. 35,00 in circulation ii. Up to 10 readers per news paper. v. Mail a. Restrictions consist of coins, banknotes, currency notes (paper money), gold, silver vi. Computers a. Even with Uganda being a rural area they still have computers available to them. b. Few companies sell their products online. c. Government is setting up E-Commerce laws to protect users from cyber crime. 2. Availability i. Personal computers in use is 294,400 ii. 100,000 available telephone main lines iii. Mobile telephone subscriptions are 380,000 iv. Only 4.195 million people in Uganda have access to the above communication devices. Out of 32,369,588 million it shows that roughly 12.95% of the population has access to these types of communication. Given that information I believe that the percentages of people that have access are in the higher income brackets and in the more developed areas. 3. Usage rates i. Internet usage is roughly 1.8 million ii. Telephone usage is around 200,000 iii. 5 million radios Implications: The major implications here are making sure that we understand that not everyone has access to all device of communication. We also want to use the device that the majority of the consumer have. One thing we did gather is that in some areas word of mouth is going to be very important as we may not be able to communicate directly to some consumers. H. Working conditions: 1. Employer-employee relations: (http://www.ia- uganda.com/doing_business_in_uganda.html#investment2) a. The work week is set at 48 hours, anything exceeding that is considered overtime. b. Typically, employment of women is prohibited. c. Statutory benefits and protection applicable to workers are currently provided principally by nine legislative acts.
  25. 25. 2. Employee participation: Although they have the resources and ability to form trade unions, they are very rarely used as there is a lack of unity amongst workers. (http://www.nationsencyclopedia.com/economies/Africa/Ugan da-WORKING-CONDITIONS.html) 3. Salaries and benefits: i. A social security fund exists; Employers contribute 10% of the wages/salaries and employees pay 5% into it. Implications: Taking into consideration how Ugandans are used to working is key. We must conform our business tactics to provide them an experience that does not seem foreign at all. I. Principal industries: 1. What proportion of the GNP does each industry contribute? % of GNP 13% 5% Agriculture 82% Industry Services 2. Ratio of private to publicly owned industries % of GDP 1998/99 2005/06 Gross capital formation 19.4 23.3 Public 6.2 4.9 Private 13.2 18.5 Consumption 92.3 91.9 Public 13.3 14.7 Private 79.0 77.3 (Source: African Economic Outlook) Implications: There are no obvious implications for exporting and marketing our product related to the research findings in this section. J. Foreign investment: 1. Opportunities: i. The Uganda Investment Authority (UIA) provides assistance and advice in registering for foreign investment.
  26. 26. 2. Which industries: i. Major companies with foreign investment in Uganda in 2005 included Coca-Cola, Caltex, Sheraton, Starcom, Citibank, Xerox, Cargill, AES, Colgate Palmolive, Swift Global, IBM, HP, GM, and Ford. (http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gal e=prefix=wen_0012_0002_0_=startPage=01175=suffix=- p=npages=15.pdf) Implications: A bulk percentage of foreign investment comes from the United Kingdom. While this may not affect us directly, it still shows a favorable view of the west and means with all things constant, we should have no issues investing in Uganda. K. International trade statistics: 1. Major exports: Major exports consist of coffee, fish and fish products, tea, cotton, flowers, horticultural products; gold i. Dollar value: $2.03 billion f.o.b. (2008 est.) ii. Trends: Major exports have appeared to grow substantially from $768 million f.o.b. in 2005 (http://www.infoplease.com/ipa/A0108066.html) 2. Major imports: i. Major imports for 2005 consisted of mostly machinery equipment, iron, steel, vehicles and accessories, chemicals, medical supplies, petroleum, and animal fats. (http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gal e=prefix=wen_0012_0002_0_=startPage=01175=suffix=- p=npages=15.pdf) ii. Dollar value: $3.579 billion f.o.b. (2008 est.) 3. Balance-of-payments situation: i. As of 2006 the overall balance of payments is at a $332,000,000 surplus. ii. Recent trends: Up until the 1930’s, Uganda showed a favorable surplus, though trade deficits grew with newly independent Kenya and Tanzania and poor trade has led it to grow more. Refer to the following chart for the balance- of-payments trends for 2004-2006.
  27. 27. Overall Balance of Payments (US $ Million) 400 300 200 Overall Balance (US $ Million) 100 0 2004 2005 2006 Implications: As long as Uganda’s surplus remains steady or even rises, we should have no concerns about exporting our product. 4. Exchange rates i. The Ugandan Shilling has multiple exchange rates; they can be seen as follows. ii. Current rates of exchange of Ugandan Shilling i. vs. U.S. Dollar: 1,720.7 ii. vs. ECU/Euro: 2,490.9 iii. vs. Japan Yen: 16.6 iv. vs. Swiss Fanc: 1,594.3 v. vs. Pound Sterling: 3,150.9 iii. Trends: Uganda Shilling Buying Rate vs. US $ 2195 2190 2185 2180 2175 Uganda Shilling Buying Rate 2170 vs. US $ 2165 2160 2155 23-Apr 24-Apr 25-Apr 26-Apr 27-Apr (http://www.bou.or.ug/bouwebsite/opencms/bou/collateral/ exchange_rates.html) Implications: We want to keep an eye on the exchange rate between the Uganda Shilling and US Dollar. If the Shilling value is to take a significant decrease vs. the US dollar they are likely to consider buying less of our product. L. Trade restrictions
  28. 28. 1. Embargoes i. Uganda adheres to the UN Arms embargo which regulates exporting firearms. 2. Quotas: i. After research and search help from UNC librarian Sarah Naper, there appears to be no trade quotas between the US and Uganda. 3. Import taxes i. An 18% Value Added Tax is added to imported goods except for milk, seeds, fertilizers, drugs, and medicine are zero rated. Foodstuff, insurance, education, medical and financial services are exempt. (Exporters’ Encyclopedia) 4. Tariffs i. As a member of the WTO, all imports are subject to normal taxation. Uganda is also a member of COMESA (Common Market for Eastern and Southern Africa ) which provides free trade among members. A third trade group, the EAC (East African Community), signed a Customs Union Agreement in which provides an asymmetrical reduction of internal tariffs within the group. (Exporters’ Encyclopedia) 5. Licensing i. For all basic goods not on the negative list (a list of banned or highly regulated goods) the importer must simply fill out an import registration form. 6. Customs duties i. Uganda adheres to the WTO Customs Valuation Code, which ensures fair, neutral determination of value. (Exporters’ Encyclopedia Implications: The statuses of any trade restrictions are vital to exporting Potable Aqua. Being a member of the WTO insures that we should have no unforeseen problems in the way of hidden tariffs or taxes. M. Extent of economic activity not included in cash income activities 1. Countertrades i. Products generally offered for countertrading i. Cotton or coffee is typically the main commodity used in countertrade. ii. Types of countertrades requested (i.e., barter, counterpurchase, ect.) i. During the late 1980’s, Uganda’s countertrade grew significantly, with an estimated 70 barter deals
  29. 29. valued at US$534 million within four years. Typically they requested petroleum products and technical advice. (http://www.photius.com/countries/uganda/econom y/uganda_economy_foreign_trade.html) 2. Foreign aid received i. Approximately 55% of government spending in 1998 was from foreign aid. Because of the fact that Uganda is still one of the poorest nations in the world, they are heavily dependent on foreign aid. In 2003, foreign aid receipts totaled $959 million or about $38 per capita and accounted for approximately 15.6% of the GNI. (http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gal e=prefix=wen_0012_0002_0_=startPage=01175=suffix=- p=npages=15.pdf) Implications: There are no direct implications for countertrade as our product is not typically something that would be sought after in barter or countertrade. As far as foreign aid, it is in Uganda’s best interest to remain a viable business partner to the west and that would imply keeping up business with our company. This works in our favor. N. Labor force 1. Size: 14.02 Million The Uganda labor force is estimated to be around 14.02 million, as opposed to 153.1 million for the US (www.cia.gov) 2. Unemployment rate: 3.6 (2003) O. Inflation rates: 10.5% (2008 est.) Implications: The Uganda unemployment rate is in fact somewhat below the US. But because of the sheer amount of poverty across the nation, finding a viable workforce should not be too difficult. The vast majority of Uganda’s workforce belongs to the agricultural industry, which would be an excellent target market for our product. IV. Developments in science and technology A. Developments of science and technology are increasing at a slow rate. Currently Uganda has telephones, cellular telephones, computers, internet, vehicles, railways, highways and airports. According to recent research done by caliistro, Uganda has a medical association, a child malnutrition unit, an agriculture research institute, a forestry research center, and a cotton research station in the city, Kampala. An animal health research center and the Geological survey and Mines Department are in Entebbe. There is also the Makerere University which has faculties of science, agriculture and forestry, technology, medicine, and veterinary science. Internet and computer technology are making their way into Uganda. ―There are more than 6,000 privately owned computers and the numbers are growing rapidly.‖ <ahref="http://education.stateuniversity.com/pages/1585/Uganda- EDUCATIONAL-SYSTEM-OVERVIEW.html">Uganda - Educational
  30. 30. System—overview</a> This technology will eventually find its way into primary and secondary schools. B. Percentage of GNP invested in research and development was .6% of GNP in 1987-1997. If Uganda increased its investments into scientific research to 2% of its Gross National Product (GNP), this would amount to an estimated $100 million. Although this is noticeably less than investments made in other countries it would in the long run, create and raise home- grown research which would benefit Uganda to further their economic growth and to improve living conditions. Uganda has been affected by corruption in numerous ways mainly affecting the way money is allocated throughout the country. Raising the GNP spent on research and development would create a stable environment for Uganda. C. In 2007 it was estimated that there was 14 .02 million in the Labor force. Uganda’s labor force is divided into three main sections which include 82% Agriculture, 13% services and the 5% from the industry. Technological development among the population and labor force has increased at a steady rate. Telephones are Uganda’s main source of communication while cellular phones and internet are slowly becoming more prevalent. http://globaledge.msu.edu/countryInsights/statistics.asp?countryID=148&r egionID=5 Implications: The development of science and technology is crucial for a well developed economy and living environment. It is important for Uganda to spend more of their GNP on science and technology to establish a well developed economy. Not only will Uganda benefit but so will our product. If Potable Aqua becomes well known throughout Uganda there will be a good chance that we can further develop the product through science and technology and eventually create a clean water reserve for Uganda. Introducing Potable Aqua to Uganda will benefit its inhabitant in numerous ways. Many of the diseases that are prevalent today in Uganda are caused by infected water. If we can eliminate these viruses temporarily in drinking water it will give us enough time to develop a system that provides clean drinking water to the population. Inevitability this will decrease the amount of deaths occurred through water borne diseases. V. Channels of Distribution A. Retailers: 1. There are 25,000 businesses in Uganda which has increased 60% since 2001. Of these 25,000 businesses there are approximately 2,501 retail businesses in Uganda (Uganda Bureau of Statistics). 2. ―Most retail trade is accomplished through small shops supplied by small distributors.‖(Callisto) Retail Sale in Non Specialized Stores had the highest number of employees (3,526) accounting for 20 percent of total employment in the sub sector followed by businesses undertaking Retail Sale in Specialized Stores with 18 percent of total employment. (Uganda Bureau of Statistics). The retail outlets throughout Uganda are fairly small in size and typically are no larger than. The main businesses are located in
  31. 31. the city Kampala which composes 45% of these businesses. The Northern region of Uganda had the highest increase of business since 2001. 3. The customary markup for various classes of goods varies diversely because of the wide range of grey trade. 4. There are numerous Forex Bureaux and International Banks in the capital city - Kampala and the main towns. It is highly suggested to carry cash- shilling because credit cards are not widely accepted. There are ATM machines that can cash some credit cards. Most of methods of operation in Uganda are processed by cash transactions because many do not have access to credit. 5. Small scale of operations 6. There are many small retailers in Uganda that sell necessary consumer goods but very little if any department stores. There are more specialty shops than chain stores and department stores in Uganda. Implications: Due to the size of the retailers in Uganda it will be difficult to target these specific individual retailers. It would be most effective if we could sell our products to specific Ugandan businesses such as wholesalers so that we could distribute our product to the local markets. B. Wholesale middlemen 1. Many imported consumer products in Uganda are smuggled into downtown Kampala but generally products are distributed through regional wholesalers, who in turn supply small and rural shopkeepers. Waiting transporters buy bulk quantities of merchandise straight from the containers and immediately carry their shipments to smaller towns and villages. 2. The customary markup in Uganda varies since some products are counterfeit and there is a lot of black and grey trade. 3. Most of these transactions are done with cash. ―Businessmen report that customs duties are not always collected, especially if a bribe is offered to Uganda Revenue Authority officer on site.‖(Commercial guide) Suppliers deal directly with major purchasers because of the entry of large South African retailers. Implications: It will be important to find wholesale middlemen to distribute our product to small and rural shopkeepers. Once Potable Aqua is exported from the United States there will have to be an appropriate wholesaler to sell the product in bulk to transporters who will eventually resell the product. This will be the most effective means of business because otherwise it would be difficult to find local shopkeepers who will individually buy the product. With local wholesale middlemen we can sell our product directly and have them target their specific markets. C. Import/Export Agent 1. Many U.S. firms have invested directly in Uganda. Typically, American businesses looking to access the Uganda market enter into contractual agreements with distributors and local agents. ―The Uganda Investment Authority (UIA) and the Uganda Manufacturers Association (UMA) maintain resource centers and often field inquiries from agents, distributors or companies looking for outside partners. The Ugandan National Chamber of Commerce and Industry (UNCCI) may also assist with identifying local agents and distributors.‖ There is a list of
  32. 32. export firms and agents in the Uganda Export Promotion Board (UEPB) that will be beneficial to when choosing the appropriate export firm and agents. However, it would be sensible to visit Uganda to interview candidates and survey the situation before choosing an agent or distribution and sales channels distributor. Implications: In our situation it will be important to find a local agent to distribute our product. However, as stated in the aforementioned paragraph it will be beneficial to interview candidates and survey the situation before choosing the appropriate agent or distributor and sales channels distributor. D. Warehousing 1. Warehousing standards and regulations have been adopted. ―The Warehouse Receipt System (WRS) Act (no. 14) of 2006 provided for regulatory system for the licensing of warehouse and the issue of warehouse receipts in Uganda.‖ (Uganda Commodity Exchange) ―Goods entered for domestic consumption remaining in any warehouse more than 14 days may be confiscated to the government or destroyed although, this is rarely implemented.‖(Dun & Bradstreet) Warehousing is also subject to rent and other charges. The development of warehousing under the new act will create a wide variety of warehousing options to emerge. Implications: Warehousing may be beneficial in our situation since unopened bottles of Potable Aqua tablets, when maintained under controlled temperatures between 60 and 86 degrees F (15 to 30 degrees C), should remain effective up to four years. So if we ship a copious amount of our product out in one time rather than small shipments we will spend less money in the long run for exporting fees. Thereafter, transporters can buy bulk quantities from the wholesalers and sell the product to small and rural shop keepers. E. Penetration of Urban and Rural Markets 1. Many Ugandan markets are not well developed. Therefore, foreign firms should visit Uganda to conduct extensive research and ground work before penetrating Urban and rural markets. There are many promising opportunities for well- prepared firms in the right sectors, despite the many challenges Uganda presents. Throughout recent years cellular telephones and computers are becoming more popular although, Uganda currently does not present strong opportunities for telephone or Internet marketing. There are many Ugandans who do not actively have access to the internet or utilize mail services other than in a few urban areas. Most foreign products are marketed through an experienced local company. Implications: Before our product penetrates the urban and rural markets there will have to be a considerable amount of research done to ensure that our product will survive. Potable Aqua presents a wide range of markets bearing in mind its low cost and beneficial use throughout Uganda. Even though there is a good market for our product we will still have to ensure that we can find the right retailers to distribute Potable Aqua. VI. Media A. In 1993 the Uganda government loosened controls on the media and since then private radio and TV has boomed. While Radio has become one of the most popular forms of media other types have emerged and include:
  33. 33. Television, newspaper, personal computers, and internet. As far as communications media there is an ―estimated two mainline telephones for every 1000 people and approximately 30 mobile phones in use for every 1000 people in 2003.‖ Among the 60 local and regional radio stations the only national radio broadcasting station in the country is, Radio Uganda which was founded in 1954. Radio Uganda broadcasts daily in 22 languages. There is a public broadcasting station that is sponsored by the Uganda television. In 2001 it was reported that there were eight television stations. ―In 2003, there were an estimated 122 radios ,18 television sets, and four personal computers for every 1,000 people.‖ Implications: The most common form of media in Uganda is the radio and newspaper. This implies that the newspaper and radio will have to be our main source of communication to advertise our product. Television is another form we could use although this may not be persistent since many do not own a television. The most effective way we can promote our product will be by word of mouth through newspaper and radio. B. Costs 1. Television: a 21‖ TV runs for 180 USD 2. Radio $15 3. Print ads $8 4. Other media: Internet runs for 45 USD a month. Implications: Because many consumer goods and services are expensive in Uganda it will be difficult to make a profit. The recession that started in 2008 will also present challenges since the overall growth is expected to fall to about 5%. We will also have to overcome Ugandan preferences for working with their familiar European trading partners. The recovery of the U.S. dollar in late 2008 increased the cost of U.S. goods C. Agency Assistance 5. There are few agencies that assist with media. Overal there are two main ad agencies in Kampala, including ZK Advertising Uganda Moringa Ogilvy. Newspapers will also an agency that will assist with media because newspapers are one major sources for assistance with media. Implications: There are only a few agencies that will assist with media. Therefore, we will need to make sure that the one we do choose will be effective and efficient for our target market. C. Coverage of various media 1. Many firms in Uganda market their products with billboards, newspapers, radio and television advertising. Most ad campaigns use English although, some use the local language. Sales techniques in industrialized economies are relatively new in Uganda, but are increasingly popular and successful. Music concerts and national soccer and basketball teams have also been used as a good source of promotions for many Ugandan firms. Implications: We will be able to effectively reach our target market through billboards, newspapers, television, music concerts, national soccer and basketball teams. The Radio
  34. 34. will most likely be the most effective way to communicate with our target market since many people in Uganda have access to a radio. D. Percentage of Media reached by each media 1. Radio reaches 46% of population 2. Newspaper reaches 40%of population 3. television 10% of population 4. internet 4% Implications: Uganda uses radio and newspaper as the main means of mass communication. This means that we will have to use both the radio and newspaper for our main means of communication to the Ugandans.
  35. 35. . VII. Sources of Information https://www.cia.gov/library/publications/the-world-factbook/print/ug.html http://www.infoplease.com/ipa/A0108066.html https://www.cia.gov/library/publications/the-world-factbook/geos/ug.html http://www.nationsencyclopedia.com/economies/Africa/Uganda-WORKING- CONDITIONS.html http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gale=prefix=wen_0012_0002_0_= startPage=01175=suffix=-p=npages=15.pdf http://www.infoplease.com/ipa/A0108066.html http://www.ia-uganda.com/doing_business_in_uganda.html#investment2 http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gale=prefix=wen_0012_0002_0_= startPage=01175=suffix=-p=npages=15.pdf) http://www.photius.com/countries/uganda/economy/uganda_economy_foreigntrade.html http://www.bou.or.ug/bouwebsite/opencms/bou/collateral/exchange_rates.html http://callisto.ggsrv.com/doc/RangeFetch=contentSet=Gale=prefix=wen_0012_0002_0_= startPage=01175=suffix=-p=npages=15.pdf) www.cia.gov http://kabiza.com/African-Insights-Blog-cost-of-living-Uganda.htm