Marketing Implications for a Water Purification System for the Country of Morocco

Marketing Implications for a Water Purification System for the Country of Morocco

Executive Summary

Morocco is in a crisis. More than 20% of its population is currently without access to safe water with an impending 30% population increase anticipated over the next 40 years. Large scale water purification equipment, capable of providing potable water to millions of people, in desperately needed. Considered a passive Islamic state without the cultural or social bias toward US companies exhibited by other countries in the Middle East and North Africa region, Morocco possesses good opportunity for US companies to export this type of water purification equipment. Morocco's improving economy and the availability of millions of dollars of internationally financed loans and grants are indications of the current and future viability of the water purification market. Other advantages include the benefits offered by the recently signed US-Morocco Free Trade Agreement and multiple options for market entry. All of these reasons indicate that Morocco is a very attractive market for large-scale water purification equipment

TABLE OF CONTENTS

Page

MARKET ENVIRONMENT ANALYSIS 4

Physical Environment.................................................. 4

Political Structure........................................................ 5

Legal System............................................................. 6

Moroccan Free Trade Agreement..................................... 8

Social and Cultural Environment..................................... 8

Religion.................................................................. 10

Education................................................................ 10

Economy................................................................. 10

Water Treatment Industry............................................. 11

MARKETING IMPLICATION 12

Product Consideration................................................. 14

Pricing Consideration.................................................. 15

Market Entry and Distribution Consideration...................... 16

Distribution Channels.................................................. 17

Promotion Consideration.............................................. 18

References........................................................................ 19

Appendix A: Research Proposal............................................... 20

Appendix B: Copies of References............................................ 21

MARKET ENVIRONMENT ANALYSIS

Physical Environment

Morocco occupies an area of approximately 172,413 square miles in the northwestern corner of the African continent. The Atlantic Ocean forms the country's western perimeter. The north is bounded by the Mediterranean Sea. To the east and southeast lies the Algerian border and the Moroccan Sahara extends along the far south of the country. The majority of the population lives west of the Atlas Mountains, a mountain range that insulates the country from the Sahara Desert. Casablanca is considered the center of commerce and industry and the leading port, while Rabat is the seat of government, and Tangier is the gateway to Morocco from Spain and also a major port. Fes is the cultural and religious center and Marrakesh is a major tourist center.

Morocco is still chiefly an agrarian society but mineral resources, including phosphates, iron, lead, manganese, silver, tin, zinc, coal and petroleum are also mined. The mountainous regions of Morocco contain extensive areas of forest, including large strands of cork oak, evergreen oak, juniper, cedar, fir and pine. Except for areas under cultivation, the plains are usually covered with scrub bush and alfa grass. Agriculture still forms the basis for Morocco's economy. Farmers produce everything from wheat and olives to citrus fruits and tomatoes. The country exports citrus fruits and tomatoes to the United States, Canada and Europe. Small manufacturing enterprises dominate Morocco's manufacturing sector. Factories produce chemicals (phosphoric acid), textiles, construction materials (cement), footwear, processed foods, wine, refined petroleum, and other products.

Morocco is a semi-arid country with very limited water resources. As a developing country with a high birth rate, Morocco faces problems with increased water residues and the necessity to find alternative solutions to protect the environment and improve the quality of life.

Political Structure

The Kingdom of Morocco has been a constitutional monarchy since 1972. The Head of State is the King (Mohammed VI). The Constitution guarantees a multi-party system. Twenty-nine political parties are represented in the Chamber of Representatives. Morocco is a member of the League of Arab States, The Organization of the Islamic Conference, and the Arab Maghreb Union. The King remains the final arbiter of power.

The Parliament is divided into two chambers. The lower house is directly elected and the upper house is made up of representatives elected by