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INTERNATION MARKETING
MARKETING FREEZ IN MOROCCO
THIS REPORT DONE BY:
Tameem ALZOABI ..

SPECIAL THANKS TO FRIENDS WHO HELPED TO FINISH THIS REPORT

TABLE OF CONTENTS
Introduction ............................................................................................................................... 3
Company History ................................................................................................................................. 3 Product History ................................................................................................................................... 3 Vision .................................................................................................................................................... 3

Morocco Market Characteristics.............................................................................................. 3

General data: ....................................................................................................................................... 3 Trading environment: ......................................................................................................................... 4 Economy and Infrastructure: ............................................................................................................. 4 Economy of scale: ............................................................................................................................... 4 Strategic distribution Location: ......................................................................................................... 4

Marketing entry and development ........................................................................................... 5

Entry Strategy: ..................................................................................................................................... 5

Globalization Drivers and Challenges..................................................................................... 5

Political Environment .......................................................................................................................... 6 The Economic Environment ............................................................................................................... 7 Socio-Cultural Environment ............................................................................................................... 8 Technological Factors ........................................................................................................................ 8 Legal Factors ....................................................................................................................................... 8 Environmental Factors ....................................................................................................................... 8

SWOT Analysis.......................................................................................................................... 9
Strengths .............................................................................................................................................. 9 Weaknesses ......................................................................................................................................... 9 Opportunities ..................................................................................................................................... 10 Threats ............................................................................................................................................... 10

Segmentation: ......................................................................................................................... 11
Demographical segmentation: ......................................................................................................... 11 Geographical: .................................................................................................................................... 12 Psychological: Tourist (life style) .................................................................................................... 13

Competitive.............................................................................................................................. 13
Carbonates & Fruit juices in Morocco trends: ............................................................................... 13 Competition map: .............................................................................................................................. 13 Expectations: ..................................................................................................................................... 14 Cost Drivers: ...................................................................................................................................... 14

Trade Policies and agreements ............................................................................................. 14

Investment Climate reform yields strong results ........................................................................... 14

Primary + Secondary research .............................................................................................. 15

Using an Agent or Distributor .......................................................................................................... 15 Establishing an Office ....................................................................................................................... 15 Franchising ........................................................................................................................................ 15

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Joint Ventures/Licensing .................................................................................................................. 16

Trade Barriers.......................................................................................................................... 16 Positioning: ............................................................................................................................. 16

Competitive Strategies ..................................................................................................................... 17

Adaptation Vs Standardization: ............................................................................................. 17 5Ps Positioning: ..................................................................................................................... 18

Product: .............................................................................................................................................. 18 Price: .................................................................................................................................................. 18 Place: .................................................................................................................................................. 18 Promotion: ......................................................................................................................................... 19 People: ............................................................................................................................................... 19

Conclusion............................................................................................................................... 20 Bibliography ............................................................................................................................ 21 APPENDIX .................................................................................................................................. 0 APPENDIX I Suppirting data ................................................................................................... 1 Labeling and Marking Requirements ...................................................................................... 1 MOROCCAN BUSINESS ENVIRONMENT................................................................................ 1 Political and Economic Environment ...................................................................................... 1 Protecting Intellectual Property ............................................................................................... 2 Opportunity................................................................................................................................ 2 Strategic planning process ...................................................................................................... 2 Fountain Sales in Morocco ...................................................................................................... 4
Trends .................................................................................................................................................. 4

COMPETITIVE LANDSCAP ....................................................................................................... 4

Future impact ....................................................................................................................................... 4

Distribution and Sales Channels ............................................................................................. 5

Selling Factors/Techniques ................................................................................................................ 5 Trade Promotion and Advertising ..................................................................................................... 5

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INTRODUCTION
Com pany H istory Freez is a soft drink made by a family firm (Kassatly Chtaura) in Lebanon. The drink is available in 15 different (so called exotic) flavors including an energy version of the drink. This unique product is made to suit all moods, all people, for all occasions with its exciting range of 15 scorching hot flavors. At this moment Freez is sold in its native Lebanon, the UK, France, GCC, Egypt, Iran, & Jordan, Our scope it to expand and market the product in the northern part of Africa namely Morocco. Product H istory The drink was inspired by a previous product of the company; Buzz (a vodka based drink), but Freez is non alcoholic drink, that is why it was sold in the GCC counties which has Islamic regulation bans selling alcoholic drinks. Freez has a range of 14 exotic and passionate flavors to please the consumers. Mint Lemon, Tamarind, Grenadine, Blue Hawaii, Strawberry, Kiwi, Ice Lemon, Blackberry, Apple, Cranberry, Pineapple, Peach, Lime and Freez Energy. Each of our flavors is catered to suit your mood. Vision To create an innovative image carbonated soft drink, with this in mind owner worked hard with his staff to create the product now known as Freez. Freez can be enjoyed in a multitude of environments ranging from parties to work outings. As there is 0% alcohol, age is not an issue and so this is one drink that can be enjoyed responsibly Freez is made of natural fruit juices, and contains 0% alcohol. Therefore this is a drink you can enjoy responsibly. Freez is visually pleasing and with its range of flavors is always set to please.

MOROCCO MARKET CHARACTERISTICS

G eneral data: Climate: the country has Mediterranean climate that becoming more extreme in the interior and consumers tend to consume more drinks Environment: land degradation/desertification, water supplies contaminated by raw sewage; and consumers tend to buy treated drinks. Ethnic group: Arab-Berber 99%, other 1%, this product is sold in many other Arabic countries successfully

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Trading environm ent: Morocco had capitalized on its proximity to Europe and relatively low labor costs and huge labor base to build a diverse, open, market-oriented economy. In 2006 Morocco signed a bilateral Free Trade Agreement with the United States; as the only African country to have one. In 2008 Morocco also entered into an Advanced Status agreement with the European Union. Yet the country is suffering from poverty and high unemployment rates. Econom y and Infrastructure: $164.7 billion (2011 est.) with growth rate of 4.5%, PPP is $5,100 (2011 est.) and total labor force is 11m (CIA, 2012). The country has good infrastructure in term of roads, airports (56) and ports. Also the country is major tourist distention with 1500 hotel and resorts. Their plan in 2010 was aiming to achieve 10M visitors per year and they managed to achieve this number, now the new plan is to achieve 18M visitors per year by 2020 and to be one of the top 20 tourist distention in the world.(Hotelnewsnow,2012). Freez is 0 alcohol drink which is suiting the local taste and laws. Econom y of scale: Because of the location and the proximity of Morocco to Europe the company is capitalizing on that to make economy of scale in the areas of: 1. Shipping cost by consolidating Morocco shipments with other shipments going to Europe (UK, France). 2. Leverage from branding and advertising base Freez has, because Arabic is the official language in Morocco with French and same ads can be used in Morocco. 3. Leverage from cultures similarities with other countries Freez is selling now, because Morocco shares with other Arabic countries cultural and religious festivals. 4. Morocco is major member in African Union, Arab league, Maghreb Bloc, Mediterranean countries and by entering this market we are actually paving the road to all these blocs.

FIGURE 1 SCREEN SHOT OF FREEZ ARABIC AD.

Strategic distribution Location: All the above factors in addition to Morocco being member of Maghreb Bloc , Mediterranean countries , African union and Arab league contributed that Morocco represent good location for DFI. We can have bottling factory for Freez to serve and supply to all the dealers of Freez in Europe, & Africa instead of sending the products from Lebanon, which could be not cost effective. This option is going to be explored with the time and could be future plan.

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FIGURE 2 MOROCCO LOCATION AS HUB

MARKETING ENTRY AND DEVELOPMENT

Entry Strategy: Freez is marketed in almost all the GCC countries, Iran, Iraq plus France and England, in all these places the entry plan was almost the same which is marketing through franchising and licensing with one of the local partners, who has strong distribution capabilities and understanding for the market requirement. Freez slogan suitable for all moods and all ages, entails that the product has to be available all the time in stores to be purchased. Likewise in Morocco we are going to use the same entry strategy, which is International expanding by FRANCHISING. In this case we recommend using France dealer to be the dealer in Morocco for many reasons: 1. To leverage from his good relation with Hypermarkets like Carrefour who has 40 hypermarkets in Morocco.

FIGURE 3 CARREFOUR IN AFRICA

2. The owners of Freez dealership in France have Moroccan origins and he can easily work in his mother country (Softdrinks, 2012). 3. If the above option is not workable, then we can appoint one of the major food distributions companies in Morocco who is listed in the major Hypermarkets vender lists like Aynna Holding who owns one of the biggest hypermarkets chains in Morocco (Aswak Assalam) 5Ps plan is going to give deeper view for the entry strategy.

GLOBALIZATION DRIVERS AND CHALLENGES

Globalizations refer to increasing global connectivity, integration and interdependence in the (PESTEL) Politics, Economic, Social, Technological, Environment and legal & Cultural. Globalization is process inclusive of many sub-processes (such as enhanced economic

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interdependence, increased cultural influence, rapid advances of information technology, and novel governance and geopolitical challenges) that are increasingly binding people and the biosphere more tightly into one global system. With globalization Freez will face Challenges. Freez Globalization Drivers will be under Market Drivers (Demographic) Cost Drivers (Economic) Government Drivers (Politic and legal) Competitive Drivers. Apply the PESTEL analysis model (see figure 1) to explore the general Moroccan business Environment and its impact on the soft drinks market. This model serves well as an aide when considering the array of environmental forces influencing business activities in the country. A PESTEL analysis looks at 6 factors that may influence Companys performance and indeed the performance of the whole soft drinks industry. PESTEL can identify various important factors which could influence strategic decisions as well as looking at trends or future developments which are of strategic importance.

FIGURE 4 PESTEL ANALYSES

Political Environm ent The kingdom of Morocco is one of the oldest monarchies in the world. The kingdom is situated on the northwest seaboard of the African continent. The Strait of Gibraltar separates it from Spain. Its neighbors are Algeria to the east and Mauritania to the southeast, and it is bounded to the west and north by the Atlantic Ocean and the Mediterranean Sea (see map below)

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FIGURE 5 MOROCCO MAP

Casablanca is the countrys main economic and business center, while Rabat is the capital and administrative center. As mentioned earlier, the Moroccan King possesses much more authority than either the judiciary or the legislature. He is the head of the military and the countrys religious leader. And after the Arab spring of 2012, the country is heading towards privatization and economic reforms are taking place albeit at a slow pace. Corruption still remains a major problem, despite the government's declarations and desire to fight this menace. Its believed that to enter in this market if any political affiliations can be won that may prove to be beneficial to enter the market. The Econom ic Environm ent The Moroccan economy grew at 4.5% in 2011 up from 3.8% in 2010. is showing rapid advancements in improving the country's investment climate, ranking 94th among 183 economies measured in Doing Business 2012 climbing 21 places from its ranking in the 2011 report. Tourism has also been growing in economic importance. The country expects more than a 1 million visitors per annum. Unemployment remains the principal socio-economic problem in Morocco. However, it has improved considerably from the 90s when it was 23% while today it stands at 9%. An estimated 300 000 young workers enter the Moroccan job market every year, while only 189 000 new jobs are created annually. Unemployment disproportionately impacts women, the young, and the college educated. The non-alcoholic beverage segment mainly targets the young while the middle age segment consumes the alcoholic beverages. The young are more willing to try out new drinks and hence the target market should consider the younger age bracket. Through a foreign exchange rate anchor and well-managed monetary policy, Morocco has held inflation rates to industrial country levels over the past decade. Moroccos inflation rate (consumer prices) is forecasted to be 2 percent in 2012. The Moroccan monetary authorities are expected to work to keep the inflation rate differential between Morocco and the Eurozone in check so as to maintain the competitiveness of Moroccan exports.

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Morocco has come a long way in strengthening its business environment. In 2007, IFC's investment climate advisory services conducted a diagnostic study, showing the business entry rate in Morocco at 5 percent -- lower than the business entry rate of 10 percent in Tunisia and Algeria. Procedures were found to be lengthy, costly and complex. Since then, World Bank Group teams together with the government of Morocco developed investment Climate reform activities, helping Morocco improve its performance as measured by the Doing Business indicators.

Socio-Cultural Environm ent Morocco is the third oldest nation in Africa, after Egypt and Ethiopia. The most westerly state in the Arab world, Morocco has been shaped by the interaction of the original Berber population with several ancient civilizations (Phoenician, Carthaginian, Hellenic, Roman) and other more recent cultures (Arab, Portuguese, French, Spanish). Total population of the country is 32.4 million. The vast majority of the population is Sunni Muslim (98.7%). There are also Christian and Jewish minorities (1.1% and 0.2% respectively) (Middle East Institute 2010). Arabic is the countrys official and the primary language of business and culture spoken by some 75 percent of the population. About 25 percent of the people use Berber as their mother tongue. French, English, German and Spanish are taught at schools. Technological Factors Technology plays an important role in the soft drinks industry. The manufacturing and distribution of the soft drinks is relatively a low tech business. Technological contributions are most important in packaging. Since Freez is available in only one standard pack it is able to reduce its production costs however, it may eliminate certain sales as some people may want a more bulk pack but may be forced to buy individually. Legal Factors Legal factors include competition law, product safety, advertising and labeling, and labor practices. In Morocco, the company will be subject to these various acts and Changes in these laws could result in increased costs which affect Companys profitability. Environm ental Factors These factors include the environment such as the weather conditions and the seasons in which people prefer to buy cool beverages. Morocco has a moderate, sub-tropical climate, cooled by breezes from the Mediterranean Sea and Atlantic Ocean. Inland, the temperatures can be quite extreme, getting very hot in the summer and quite cold in the winter. In Marrakech the average temperature in summer can become as hot as 100F (38C) while in winter it is around 70F (21C). Therefore, the company should target the highly populated, big cities like Marrakech to launch the Freez soft drinks line. Also the company must follow the environment issues related to the product manufacturing, packaging, and distributing in various countries.

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SWOT ANALYSIS
When the situation is viewed in terms of SWOT analysis, the following are the highlights: Strengths Emphasis on quality: The Company manages to provide improved/innovative products to the consumers through research and development. Freez was established with the primary concern for uncompromised quality in mind and all of their products are perceived by the consumers as the best in business with respect to quality. Variety of Flavors: Freez is available in 15 different (so called exotic) flavors including an energy version of the drink. Flavors include Mint Lemon, Tamarind, Grenadine, Blue Hawaii, Strawberry, Kiwi, Ice Lemon, Blackberry, Apple, Cranberry, Pineapple, Peach, Lime and Freez Energy. Encouragement to Innovativeness: The Company has a very aggressive strategy when dealing with developing new products, i.e. they are ready to take risks and come out with products that have unique differential advantages. Sharia Compliant Drink: Freez is made of natural fruit juices, and contains 0% alcohol. This will attract the Muslim population which is the majority in Morocco although the country is not known for enforcing Sharia principles strictly. W eaknesses High Price: Since the cost of production of most of their products is high because of various factors (imported ingredients, technology, quality and maintenance etc), they charge high prices for the items they produce. The price of a regular Freez drink is AED 3.5 which is considerably higher than other carbonated drinks (Coca Cola, & Pepsi Cola), tonic waters, juices and bottled waters (Evian).

Brand Equity Freez does not enjoy as strong brand equity as other international brands like Coca cola, and Pepsi Cola. They need to establish brand equity by creating awareness in untapped segments of the Moroccan market. Moreover it does not have any strategic tie-ups with international franchises like Starbucks who serve as a channel to market their drink.

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O pportunities Growing Soft Drink Market: The Moroccan soft drink market is estimated at $1 billion. Soft drinks have seen strong total volume growth during the last few years thanks to rising disposable income levels in Morocco and a healthy 5% increase in urban population. Popular Drink within the Arab World: Freez is already a popular drink within the Arab world having sales in its native country Lebanon, the UK, France, GCC, Egypt, Iran, & Jordan , Our scope it to expand and market the product in the northern part of Africa namely Morocco as the country has strong Arabic roots. Threats Rival firms: Rival soft drink giants like Coca Cola, Nestle, Pepsi Cola are the major market share holders. To penetrate in this market, Freez needs to steal some of the high end market share in the soft drink market given its pricing is on the higher side. Increasing Concern for Health: Since the media explosion from the mid-90s, people have convenient access to information and are being exposed to the trends and concerns followed by the western nations. Hence, people are being educated about the concern and need for health awareness and therefore have adopted increasing concern for their health and appearance. As a result, carbonated drinks like Freez may struggle to gain a foothold though it may be offset by the fact that it is a natural product with a fruit base. Economic Factors: Increase in government tariffs, import duties and political situation of the country i.e. economic instability could be a threat to our product.

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FIGURE 6 SWOT ANALYSES

Recommendation: In this marketing plan shall leverage from strength point, and try to improve weakness with concentration to grasp the blooming opportunities.

SEGMENTATION:
We are using a mix of segmentation tools to get as close as possible to our customers in Morocco. The selected segmentation methods are chosen based on consideration for all the persuading analysis above. We also incorporated the product image suits all types of moods and customers as base for our segmentation Dem ographical segm entation: Morocco is the fifth larger population in MENA and the customers are Arab-Berber are 99%, Muslim 99% (official), Christian 1%, Jewish about 6,000, and based on age: 0-14 years: 28% 15-64 years: 66%, 65 years and over: 6%. Population growth rate is about 1.054%. Morocco market has changes rapidly and life style as improved, that can make it a perfect market spot. According to the population structure of Morocco we are targeting consumers between 14-60 years old from all genders. Morocco population is 32,309,239 July 2012, with almost equal share of Male/female per each age category and the urban population is 58% of total population (2010), which means half of the population is actually in the cities (cia,2012). 11

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6% 28% 66%

0-14 years 15-64 years 65 years and over

FIGURE 7 POPULATION STRUCTRE

Recommendation: Freez products have to be mix of sizes, & flavors, with concentration on healthy side of the product (less sugar, fruit base, and fewer calories). Disruption has to be in urban area. G eographical: From the above we can infer that our targeted segment is the population aged between15-60 which about 21,000,000 consumer, half of which are in the main cities , but we believe more than this figure is actually in the cities because they are actually working there are :

FIGURE 8 MAJOR CITIES IN MOROCCO

Recommendation: We shall focus our operations in these 20 cities, some of these cities are actually in one province and one distribution center can service them all.

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Psychological: Tourist (life style) We shall target the huge number of tourist (10 Million/year) who is visiting Morocco every year and sizable amount of them coming from France where this product is selling now. By marketing Freez and make it available in Hotels, resorts, beaches, tourist destinations, & events. Recommendation: we shall target the touristic destinations and market Freez there to increase the awareness of the product among visitors

COMPETITIVE
To position our brand we need to understand our competitors and what exactly been marketed and to whom: Carbonates & Fruit juices in M orocco trends: Lately carbonates drinks faced slow growth because of health and wellness concerns in 2011. Consumers from mid- and high-income are concerned by their health, seeking to cut down on sugar consumption for both themselves and their families others also concerned by products use artificial sweeteners, colors and flavours also consumers becoming more aware of nutrition. Consequently, many consumers especially urban women and families switched to other products with healthier image such as fruit/vegetable juice and bottled water. As a result, of that the global industry of carbonates drinks growths is acutely affected over the previous year. Com petition m ap: For Years the nonalcoholic sector on the power struggle between Coca-Cola and Pepsi, The competitors have begun relying on new product flavors. In addition, Media has promoted the consumption new brands of soft drink, at the expense of branded, Increase in the regulatory mandating scientific facts for health concerns. Freez competitive advantage points would be. Understand the approach to people. Promote more healthful messages. Moroccos public concerns to diet and over all health wellness. Media and promotions (Facebook, TV, advert) Support Moroccos Truism campaigns.

As per (Euromonitor,2012) Coca-Cola dominates sales of carbonates in Morocco, with 76% offtrade volume share and 71% value share in 2011. Coca Cola benefited from its strong and wellestablished brand names such Coca-Cola Light,& Fanta, and the international marketing campaign in tv, internet and events .Coca cola has wide range, dominating sales of regular and low calorie cola carbonates, lemonade/lime, mixers, juice-based orange carbonates and other non-cola carbonates which helped them take big chunk of the market share cake. Coca Cola has huge distribution network combined with local branding campaign for small grocers like branded refrigerators and/or store-front advertising that made the product widely available. In the Fruit and juices Moroccan Food Processing is the clear leader with 37% share of off-trade volume sales in 2011 and 29% share of value sales. The major competitive edges for the company is the good quality of product, distribution channels , reasonable price and the product nature being fruit base product. 13

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Expectations: Economic growth is expected to support increase in the familys household incomes, which will result in stronger off-trade volume growth for carbonates and fruit juice business specially the latten. There is also big potential for increase in demand for healthy image products like those with less sugar, natural colors and natural ingredients. Hence we expect potential for good sales for Freez in Morocco market but we have to follow the steps of the major competitors in the market place. Cost Drivers: Prices have increased in the last few years that gave a hard time for smaller competitors. CocaCola and Pepsis strong brand and loyalty allows them to pass this increased costs onto the consumer. As well prices change from different distribution.

Main Distribution Channels for soft Drinks

Food Service and Drinking Places 20% Convenience Stores and Gas Stations 12% Vending Machine Operators 11%

Spermarkets and General Merchandiser s 49%

other 8%
FIGURE 9 MAIN DISTRIBUTION CHANNELS FOR SOFT DRINKS

TRADE POLICIES AND AGREEMENTS

Investm ent Clim ate reform yields strong results Morocco implemented overarching reforms including publishing a decree in May 2011 that considerably simplified business start-up procedures. The minimal capital requirement for starting a business was eliminated, cutting start-up costs by 42 percent. Half of the six procedures for starting a business were eliminated, and the company name search can now be handled online at the one-stop shop. In the area of construction permitting, the one-stop shop established in Casablanca at the end of 2005 became fully operational and widely used by entrepreneurs, who can obtain a permit in 15 days. In addition, Morocco eased the administrative burden of paying taxes for firms by enhancing electronic filing and payment of the corporate income tax and value added tax. The two electronic systems are now used by the majority of taxpayers.

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Morocco also strengthened investor protections by allowing minority shareholders to obtain any non-confidential corporate document during trial.

PRIMARY + SECONDARY RESEARCH

U sing an Agent or Distributor Foreign exporters are represented in the market either through their own branch offices or through authorized agents and distributors. Distributors customarily provide technical support to end-users and often have contractual arrangements with their principals under which the local importers provide in-bond warehousing. Although it is legal for an Arab corporation to be an independent distributor, local agents and distributors are recommended to assist the Arab firm with know-how and local customs. Some Arab firms supply Morocco indirectly through regional distribution centers in Europe. Although this helps in terms of shipping, often the products go through too many levels of distribution channels and the items cease to be priced competitively in the Moroccan market. Large-scale stores based on the "Costco" model are a relatively new phenomenon and a good source for direct distribution of consumer products. The Germanowned Metro stores are in Casablanca, Rabat, Fes, Tangier and Agadir. More traditional European-style supermarkets such as Marjane are also present in major cities and provide good markets for western food and household supplies. Moroccan supermarkets LabelVie and Aswak As Salaam are also present in Rabat, Marrakech, Tangier and Kenitra and few Home Depot-style hardware stores have opened in Rabat and Casablanca. Establishing an O ffice Moroccos 16 Regional Investment Centers are the governments one stop shops for the entire registration process, which has been greatly simplified in recent years. Within one week of providing the center with a completed application, a passport or ID, (or a copy of an ID document if the applicant is not personally present), and $16 (150 dirhams), a certificate from the Regional Investment Center will be processed. If the completed certificate is not picked up after one month, it automatically becomes void and one must begin the process again. Upon receipt of the certificate and after presenting a proof of patent, a registration receipt from the Registre du Commerce for $37 (350 dirhams), a fiscal statement and a completed application to the social security savings bank (Caisse Nationale De La Securite Sociale) the business can be established. All businesses are subject to inspection by the Regional Investment Centers.1 Franchising Over 363 franchises (308 international franchises) successfully operate in the fast food, clothing, office supply, furniture, cosmetics, office cleaning and auto repair sectors, representing an increase of 73% over the past three years. Franchise holders are attracted to the marketing image name recognition of well-known products and brands such as Hertz, Pepsi Cola, McDonalds, Pizza Hut, Dominos Pizza, KFC, Haegen Dazs, TGI Fridays, Budget, New Balance, FutureKids, Century21 and Midas. The successes of franchising stem from an

http://www.tanmia.ma/rubrique.php3?id_rubrique=141&lang=fr

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expanding base of young entrepreneurs and have the financial means to develop master franchises.2 Joint Ventures/Licensing Moroccans are increasingly interested in joint venture business opportunities with international partners as they are seen as a way to modernize Moroccan factories or license technology. The best examples are Gillette, Coca Cola Export Corp., Procter & Gamble, Colgate Palmolive Maroc, Clark Gum, Fruit of the Loom, Jacob Delafon (Kohler), Johnson & Johnson, Pfizer Laboratories, Pepsi Cola, Simmons Maroc, Kraft Foods and Steelcase.

TRADE BARRIERS
The language and cultural differences are subtle and need to be addressed. French is the dominant business language, and business models are often based on traditional French models. Many of Moroccos elite were educated in France and feel at ease with the French models. Nevertheless, the countrys business environment is changing as Morocco has liberalized its trade and investment policies, and new investment from the Arabian Gulf, Asia and the United States has entered Morocco. As the leading business language in these regions tends to be English, Morocco has started adapting and is beginning to utilize English, for example, in public tenders, in business meetings, marketing campaigns and presentations. Convincing local oligopolies that liberalized trade and investment policies will benefit them in the medium to long term by expanding the business pie has been a challenge. In general, competition is not welcomed because the business pie traditionally has been relatively small. Significant new investments, however, are beginning to expand the pie.

POSITIONING:
Under the light of the above and the understanding of the feature of Freez we can map our position within our competitors as:

http://www.invest.gov.ma

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FIGURE 10 FREEZ POSITIONING

The products in the bottom left are local made carbonate and fruits drinks, while Forty is the famous fruit drink made by Moroccan Food Processing. Com petitive Strategies Within FREEZ a focus strategy is defined by its industry segment towered differentiation taking the advantage of uniqueness in design, taste, marketing and approach. At the same time, consider cost containment to enter new markets and expand, and this will be Morocco Market entry strategy.

FIGURE 11 COMPETITIVE STATEGIES

With a flexible manufacturing system, FREEZ can reduce the defects and then production cost, and still maintain the differentiation position, at low cost.

ADAPTATION VS STANDARDIZATION:
To understand the level of adaptation in the market place we carried thorough analysis for the major competitors products and the results are as below, we also applied (adopt, enhance, keep &lets go ) analysis :

FIGURE 12 KEEP-ADOPT-ENHANCE

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5PS POSITIONING:
Marketing mix or the 4 Ps are (place, price, product and Promotion) but lately they added another 3 more Ps which are the Physical proof, People and procedure especially when you market services. For our product Freez we will try to position ourselves perfectly in Morocco soft drinks map and try to leverage from the product features as much as possible, while having flexible plans that contribute to the process of value delivery that can affect on the consumer behaviors about Freez and attract more customers, below we are going to explicit our plan for the 5Ps and value adding, also we will try to address all the issues that came in the SOWT analysis, also we shall incorporate the market analysis results in our positioning

Product: 1. Use of recycle glass in our product packaging, to reduce cost and create positive image for the brand. 2. Keep the 270ml size , since it is the standard size and represent advantage edge because all other competitors has 250ml size. 3. Leverage from the fact that this product is made from fruits not like other competing products. 4. We shall adopt expansion on product offering by giving more varieties in sizes those suites families sizes. 5. Freez has 14 flavors and only 2 of them has low calories option , while Coca Cola has two low calories drinks for each of its flavors , hence we shall expand in the low calories drinks specially for the flavors the consumers favors more. 6. Leverage from the wide range of flavors and the eyes catchy colors Frees has when we offer the product. Price: Different product sizes and packaging gives marketing advantages, the market freely determines commodity prices without government involvement with the exception of staple commodities such as gasoline, vegetable oil, sugar and subsidized flour. Place:
According to the Moroccos hotel industry union, the country has over 1,500 Accommodation unit (hotel, resort,..) distributed around 91 cities around Morocco(La Fdration Nationale de lIndustrie Htelire,2012).But more than 50% of the visitors go to Casablanca .and with good distribution channels Freez can be sold thru these hotels.

1. Strategic agreements with the hotels to leverage from the huge tourist industry in Morocco with more than 1500 hotel in the country and more than 10,000,000 visitors every year. 2. Strategic agreement with the big hypermarkets in the country like Alsalam Markets, Carrefour, Marjane & Metro AG which in sum has more than 100 hypermarkets in Morocco.

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1. 2. 3. 4.

Markets Aswak Assalam Careffour Marjane Metro AG -

No of locations in Morocco 1. 2. 40 locations 3. 30 locations 4. 8 locations

References (Wikipedia,2012) (Metrogroup,2012) (Wikipedia ,2012)

3. Strategic allocations for viding machines in areas like (beaches, stadiums, malls, cinemas, clubs, tourist destinations & markets). But all the above require having strong distribution channels which entails that our selected dealer has to have strong resources. Prom otion: 1. Sponsoring events that matches our brand image and increase awareness and subsequently the sales: Sports events Football events- Tourist events 2. Strong adverts specially during national and religion events like Ramadan, National Day, Christmas & Eids 3. Sponsoring places like big supermarkets banners 4. TV, radio, and cinema ads. 5. Use Social networking life facebook, linkedin, and interact with people for more awareness. 6. Streets banners and billboards People: We have to make sure that our dealer sales staffs are well trained about the features of Freez and had the soft sales skills that allow them to professionally market our product and conduct successful sales deals.

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CONCLUSION
The central thesis of this report has been that while Freez is globalizing, markets are localizing and marketing fundamentals always apply. Among the most fundamental principles of marketing are first taking in account that the importance of getting as close as possible to a market or customer group, to discover exactly what it want, then react to this information. Morocco as a new market, Freez will certainly have valuable advantages to be presence within this new market in several aspects of business operations, and it is impossible to imagine a reversal in the trend of corporate globalization. In such move, Freez is engaging in global marketing operations and it will face a number of very important strategic decisions. Those decisions will drive the company to new levels; a decision in principle needs to commit the company to new level of internationalization. Freez need to presence a strong global logic demands, to pursue for competitive reasons. Other decision will be taken to decide where to go, geographical and where to expand within this new country. World market and technological conditions in the world economy are changing; pose new challenges, in this report, Morocco Market was effected by some main categories of changes some of the most relevant: changes in market conditions, Freez had some challenges as mentioned they are vary from Market Drivers (Demographic), Cost Drivers (Economic), Government Drivers (Politic and legal), Competitive Driver, that required PESTEL analysis to set-up with recommendations of having a new opportunities in this market. Other changes were in new competition game, with new rules. In addition to a required change will be made on organization of production. As it has been elaborated in this report the segmentation studies based on preliminary evidence of consumer segments that exist in Morocco market. And it was found that this market divided in to three segments, Geographic segmentation, Demographic Segmentation and Psychographic Segmentation. Rising awareness of soft drinks-related health issues, in particular sugar levels, has sparked a trend globally. As a result, categories such as fruit/vegetable juice are enjoying marked growth, while within carbonates; there is a major focus on low calorie colas and non-cola drinks. Freez must continue expand its portfolio and adapt its marketing appropriately. Sports and energy drinks remained a tiny niche in soft drinks in 2011; Low sales are mainly linked to high prices. To put this into context, Freez will need to focus in this niche market, to market its brand and compete on prices level, this will position Freez to be a competitive player.

Think globally, act locallyinternational marketing management, but local marketing.

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BIBLIOGRAPHY
1. Softdrinks,2012 , http://www.softdrinks.fr/nos_distributeurs_et_points_de_vente 2. Kassatlychtaura,2012, http://www.kassatlychtaura.com.lb/home.html 3. Hotelnewsnow,2012, (http://www.hotelnewsnow.com/articles.aspx/5321/New-vision-targetsMoroccan-hotel-growth) 4. Europa , 2012 , http://ec.europa.eu/trade/creating-opportunities/bilateralrelations/countries/morocco/) 5. Moroccousafta, 2012, )(http://www.moroccousafta.com/index_ang.htm 6. Cia,2012, https://www.cia.gov/library/publications/the-world-factbook/geos/mo.html 7. La Fdration Nationale de lIndustrie Htelire, 2012, http://www.fnih.ma/index.php?Option=com_phocadownload&view=category&id=1&Itemid=66 8. Euromonitor, 2012, (http://www.euromonitor.com/soft-drinks-in-morocco/report) 9. Mapprey.2012, http://mappery.com/Marrakesh-Tourist-Map 10. Wikipedia, 2012, http://en.wikipedia.org/wiki/Marjane 11. Metrogroup,2012, http://www.metrogroup.de/internet/site/annual2010/get/documents/metrogroup_international/cor psite/80_global/publications/AR2010-en.pdf 12. Wikipedia,2012, carrefour, http://en.wikipedia.org/wiki/Carrefour 13. Cohen, Elie. "Effects Of Globalization On Firms." 2006. 14. Grosse, Robert. The Challenges Of Globalization For Emerging Market Firms. Vol. 4. 4 Vols. Latin American Business Review, 2003. 15. "Sports And Energy Drinks In Morocco." Passport-Euromonitor Nternational, 2012. 16. "Through Moderen Morocco." 2012. 17. Williams, Jerom D. Breaking Down The Chain: A Guide To The Soft Drink Industry. Washington: Changelab, 2012.

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APPENDIX

APPENDIX I SUPPIRTING DATA LABELING AND MARKING REQUIREMENTS

No special regulations apply to the exterior marking of containers for shipments to Morocco. However, an indication on outer containers of the net weight in kilograms, together with other identification markings, will assist in locating goods on arrival and speed their clearance through customs. Duties and taxes are assessed on the value indicated on the commercial invoice. Food labels can be in French or Arabic and must show country of origin. There is, however, a requirement for both local and imported canned foods and beverages to print the date of production and the expiration date.

MOROCCAN BUSINESS ENVIRONMENT

Morocco has outstanding business potential as evidenced by the large number of foreign firms established in the country and the continued level of interest in a wide variety of business dealings with the kingdom. The various mass-scale surveys conducted by the American Chamber of Commerce in 2009 and 2011 indicated a significant improvement in company executives perception of the Moroccan business environment. In 2009, 85% of respondents indicate that their decision to invest in Morocco was a good one (compared with 63% in 2001). Furthermore, 71% of respondents were willing to expand their investment in Morocco. In order to find out the opportunities and threats in doing business in Morocco its very important to scan the Moroccan business environment.

POLITICAL AND ECONOMIC ENVIRONMENT

The Moroccan constitution provides for a strong monarchy but a weak Parliament and judicial branch. Dominant authority rests with the king. The king presides over the Council of Ministers; appoints the prime minister following legislative elections; appoints all members of the government taking into account the prime minister's recommendations; and may, at his discretion, terminate the tenure of any minister, dissolve the Parliament, call for new elections, or rule by decree. As an Arab Spring swept the Middle East and North Africa in late 2010 and early 2011, Moroccan officials and the general public watched closely as neighboring countries sustained massive, sometimes violent, protests leading to significant regime change. Protests in Morocco have been smaller, more subdued, and generally peaceful, but continued into spring 2011. The King has taken steps to address some demonstrator demands, and on March 9, 2011, gave a major address calling for constitutional reforms that, if implemented, could have the potential to alter significantly the distribution of power among the monarchy, government, and Parliament. Government Type: Constitutional monarchy. Constitution: March 1972, revised September 1992 and September 1996 (creating a bicameral legislature). Independence: March 2, 1956

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PROTECTING INTELLECTUAL PROPERTY

Several general principles are important for effective management of intellectual property rights (IPR) in Morocco. It is important to have an overall strategy to protect IPR. IPR is protected differently in Morocco than in the other countries, and products must be registered and enforced in Morocco under local laws. Companies may wish to seek advice from local attorneys or IP consultants. Companies are strongly advised to conduct thorough due diligence on partners. Negotiate from the position of our partner and give our partner clear incentives to honor the contract. A good partner is an important ally in protecting IP rights.

OPPORTUNITY
The National Office of Potable Water (ONEP) which produces about 80% of the potable water for the entire country, has identified several aquifers used for drinking water in many regions of Morocco that have been contaminated with high levels of nitrates. ONEP plans to conduct several feasibility studies to identify the extent of the contamination and select appropriate technologies to treat the groundwater, and also to define the best way to re-use water and to build plants for potable water discharge treatment. In 2007, USTDA approved a US$378,000 grant to ONEP to fund the cost of goods and services required for technical assistance on a proposed Meat Processing Facility Wastewater Treatment System. In 2008, the African Development Bank also granted $102 million to ONEP to finance more efficient and energy saving potable water distribution, and to increase quality potable water distribution from 1.6 million by 2008 to 2.4 million in 2020, in five cities and more about 300 small towns, and in new three new tourist areas. Faced with 32% of the rural population underserved, providing safe drinking water to the countryside is a priority for Morocco. As the main supplier of potable water, ONEP plans to spend $800 million in water distribution improvement. In addition, the Government of Morocco plans to invest $1.5 billion in water projects to satisfy at least 80% of water needs to the rural population by 2010. (http://www.onep.org.ma / http://www.adb.org)

STRATEGIC PLANNING PROCESS

Analysis described as the where are we now, is the means by FREEZ to can identify its own strengths and weaknesses as they relate to external opportunities and threats. As discussed previously on global marketing and factor that drives globalizations of FREEZ. Equally important is the internal environment incorporating the examination of the company's marketing mix (product, price, place, promotion) and service mix (people, process management, physical evidence). An analysis of the internal environment also covers other factors such as sales, profitability, market share and customer loyalty. The internal audit examines the company's own resources and supplies suggestions as to the company's strengths and weaknesses. Failure to understand the external and internal capabilities may lead to complete failure. With the understanding of all market, cost, environmental and competitive factors a strategic planning process can be set-up.

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FIGURE 13 THE STRATICS PROCESS MARKETING PLANNING

FREEZ understand the core strategy that can be develop and defined its business to be analyzed as soft drink for high life styles, this strategy and planning will evaluates FREZZ based on customers, competition and internal corporate issues, knowing those are constantly changing. It is recommended to Develop and use processes, procedures and techniques to make sure this strategy will achieve its goal.

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FOUNTAIN SALES IN MOROCCO

Trends While fountain sales are present in Morocco, sales remained insignificant throughout the review period. This dispensing format is present only in a small number of fast food outlets operated by multinationals such as McDonalds. These are based solely in the countrys largest cities, Rabat and Casablanca. Chained consumer foodservice as a whole continued to be underdeveloped in Morocco at the end of the review period, with leading brand McDonalds for example having just 28 outlets in 2011. Most on-trade outlets meanwhile offer soft drinks either in cans or served in glasses. Even fast food outlets with fountain dispensers also offer soft drinks in metal beverage cans, with these generally proving more popular among consumers. Many consumers view metal beverage cans as offering a greater level of hygiene in comparison to soft drinks served from fountain dispensers. In addition, many consumers are concerned about fountain carbonates being over-diluted. Fountain sales are solely derived from leading global carbonates brands such as CocaCola and Fanta. This reflects the fact that these sales are limited to leading global fast food chains such as McDonalds and KFC, which typically have global supply contracts. Sales are expected to remain insignificant during the forecast period. Fast food and the on-trade in general will continue to be dominated by independent players, who are unlikely to invest in fountain dispensers. In addition, consumers concerns over quality and hygiene will further constrain growth for fountain sales during the forecast period.

COMPETITIVE LANDSCAP
Multinationals dominate carbonates in Morocco. In addition to Coca-Cola, PepsiCos NBO Les Eaux Minrales d'Oulms accounted for a further 10% value share in 2011, with these two players thus accounting for a combined 81% value share. These two leaders furthermore gained share in 2011 thanks to rising disposable income levels and younger consumers strong interest in fashionable global brands, with smaller domestic players struggling to maintain share as a result. Others consequently lost over half a percentage point in value share in 2011 over the previous year, dropping to 15% share. There was no significant new product development in 2011. Players are instead focused on building sales for existing brands, through marketing, widening distribution and price competition. Consumers in Morocco are typically drawn to leading brands as their disposable income levels rise, with building brand loyalty thus proving more important in boosting sales in 2011 in comparison to innovation. Future im pact Soft drinks are expected to see even more dynamic off-trade volume growth, with almost CAGRs of 10%. This growth will be driven by rising disposable income levels among low- and mid-income consumers, who will thus be able to afford a widening range of soft drinks on an everyday basis. There is expected to be a particularly strong growth in impulse sales, likely to particularly benefit sales of carbonates.

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DISTRIBUTION AND SALES CHANNELS

Casablanca is the primary point of entry for foreign manufactured goods for direct distribution to the public, wholesalers, distributors and retailers. Selling Factors/Techniques Most local distributors of imported merchandise expect their suppliers to provide them with substantial advertising and promotional support, particularly when introducing a new product or brand name. All promotional material and technical documentation should be in French and even in Arabic depending on the product. Clear and simple French-language operating instructions are necessary. Illustrations helping the consumers and sales force are recommended. Our firms should train local staff, provide full documentation of products in French, ensure an adequate supply, and cooperate in advertising and marketing. Trade Prom otion and Advertising Several well known international advertising firms have offices in Morocco that provide state-ofthe-art resources for new product launches, as do several Moroccan advertising agencies that operate mainly on a smaller scale. Television has overtaken the print media as the most prevalent vehicle for advertising, generating more than 70% of advertising returns. Food, hygiene and beverages are the most common products advertised on television, with multinationals such as Procter & Gamble, Pepsi Cola, Gillette and Coca-Cola among the biggest advertisers. Newspapers and periodicals continue to provide advertising space for a variety of products and services, but verification of subscriptions and circulation is difficult. The amount and importance of billboard advertising has dramatically increased in the last few years. Small and medium-sized companies are increasingly turning to the Internet as a means of reaching consumers. While the number of internet users reached 8.1 million in 2011, the number of internet subscribers is increasing rapidly with a yearly increase of 31.1% in 2011. Many companies have established web pages. This is a very economical way to reach a wide range of consumers.

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