5.1. Distribution
The distribution can be made by any person resident in the territory without distinction of nationality.
Costa Rica has a distribution structure quite clear about the importance of each type of company to achieve market access. The pyramid next sample on the bottom, the best companies to achieve successful business, even the less formal at the top.
distribution chain in Costa Rica
Commercial Agents - Representatives :
A representative foreign household is defined as a natural or legal person, continuously and autonomously - with or without legal representation - prepare, promote, facilitate or perfect the sale or distribution of goods or services to foreign companies, sold or made in the country.
is the best way to access the Costa Rican market. The agent plays an important role in the management of sales to the state. Most companies that wish to participate in a tender, prefers to act through a representative to take the necessary steps to make the sale.
In consumer-oriented products or industrial consumption, the representative mtiene its competitive advantage in market knowledge.
Unlike a distributor, the representative is not liable for any breach of foreign companies.
Dealers-Wholesalers:
Any natural or legal person who, under a contract with a foreign house, imported or manufactured goods in the country for distribution in the domestic market for their own account and risk.
The dealer does not get in touch with their direct consumers but delivers the product to be the outlets that carry out that task.
utility wholesale company is in managing large number of retail customers in a wide geographical area, as they have the appropriate infrastructure (fleet, warehouses, etc..) And credit control its customer base.
The Distributor disadvantage is the cost added to the product market and demand discounts on most occasions. In addition, a distributor of prestige and a considerable client base, you can purchase a huge bargaining power, if they concentrate a large volume of total company sales.
Industrial :
Mainly large companies that buy raw materials and assets directly, without intermediaries. In this case, refers to companies as the ultimate purchaser, so reducing the customer base. In addition, few companies manage to go shopping abroad for supplies. Hence its place in the distribution chain in less important.
Supermarket Chains :
Costa Rica is a small market so it has few grocery chains that cover all nationwide. Wal-Mart Central America,
Megasuper and Perimercados Corporation are the only three who have purchasing power and import consumer products. Auto market is another supermarket chain that imports and distributes products suslocales exclusive, but segments the market to the upper class in Costa Rica. Other chains are regional and are supplied with products purchased from distributors.
Importers Casual :
are companies that make few or a single purchase order to supply the demands of the season.
ANALYSIS OF THE COMPANY AND COSTA RICA MARKET
- Geographic concentration. Most companies are in the Greater Metropolitan Area.
- Almost all businesses are small, with fewer than 500 employees.
- Preference for the exclusivity of a product and long-term relationships.
- The Costa Rican has a preference on price rather than brand.
- There are few specialist importers due to the small market. This is not allowed to work on a single product.
- The supply chain is short. A single company can perform various tasks (display, import, distribution, etc.). Some even sell retail.
- Several State regulated sectors that allow participation only through tenders.
5.2. Marketing Techniques
Businesses are usually based on personal relationships and purchasing decisions are generally based on the comparison of price, quality, technical specifications, suitability and availability of local support to the product and post-sales service.
sales catalogs and brochures should be translated into English, the products must be competitively priced.
Payment terms vary from company to company and can be up 90 days. However, it is advisable to start the business relationship with any company in Costa Rica will take measures to guarantee payment.
This because, today, it is difficult to accept the Letter of Credit as payment for costs that this entails.
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