Expansion Into Mexico

Luis PerezShaun PikePatricia IgualCorinne Kalsky

Why Mexico? Mexico is located in North America, bordering the Caribbean Sea and the Gulf of Mexico Many similarities to the United States due to location Vast growing middle-class Has more free trade agreements than any other nation in the world: 12 bilateral agreements with over 43 countriesLeading manufacturer in Latin America

Population Mexico has a population around 112

million people.

It is the 11th most populous country in

the world and it is the most populous

Spanish speaking country.

Approximately 50% of the population

lives in one of the 55 large metropolitan

cities in the country. The capital, Mexico

City and its metropolitan area, is home

to around 22 million people.

Geographic Factors Situated in the very middle of the

American Continent. The country is split into 31 states,

not including the Federal State. Has eight regions : Northern Baja,

Southern Baja, Northern Mexico, Central Mexico, Central Gulf, Yucatan, Southern Mexico and Central Pacific Coast of Mexico

Total area =761,600 square miles.

Language and Political Structure

Spanish speaking country Second language is English

Federal Republic System Current president- Felipe Calderon

Hinojosa Elected in 2006 Nation Action Party (NAP) Corruption does occur

Women in MexicoOnly one woman manager for every 12

male managersNew shift to increase power women

have in the workforceGeneral Act on Equality between Women

and Men (2006) –legislation passed thirty-one can offer women in Mexico

the chance to gain empowermentCan be a company that aids in the

increase of women in managerial roles in Mexico

Festivals & CelebrationsWell known internationally for

many diverse festivals celebrated by locals and tourists

Main festivals: Day of the Dead, Christmas, Easter and Mexican Independence Day.

thirty-one products can be used at festivals for: carrying food items, personal accessories, blankets for sitting on

FashionDerived from a combination of

European and native elementsEuropean-like clothing dyed

with loud colors, used by the Mayan Indians.

Different styles of clothing: Modern clothes, Traditional Mexican clothing and Celebration dresses and costumes.

thirty-one - include main style groupings into all of the pattern designs for the products

Economical Factor Classified by the World Bank as an

upper middle-income country Considered a free market

economy Ranked as the best place in Latin

America to do businessLabor force of 46.99 million

people- 13th in the worldMember of NAFTAExports from Mexico to US and

Canada= 86%High levels of increasing

manufacturing output, rich natural resources, major exports

Business in MexicoMexicans considered hard

workers- great work ethicsAmongst the longest

working hours compared to other countries

Closer physical distance when speaking with Mexicans

EtiquetteWear suitsBusiness breakfasts ad

lunches- preferred choice to meet for meals

Status consciousSpoken commitments in

Mexico not necessarily bindingNegotiations- impolite to turn

people down

Exchange Rate of Mexican Peso with US Dollar

Coins of: 5 cent, 10 cent, 20 cent, 50 cent, 1, 2, 5, 10, 20 pesos

Bills of: 20, 50, 100, 200, 500, 1000 pesos

Peso is official currencyThe current exchange rate

was 13.71 Mexican Pesos in exchange of $1 on November,2011.

Mexican Handbag Competitors

TOUS

WALMART HANDBAGS

LESPORTSAC

TOUSTous is a Spanish brand established in 40 countries and it has around

380 stores.

TOUS Mexican Locations

• Product: Focused in jewelry, they also produce handbags, leather goods, perfumes, watches, etc.

• Price: Could be 5 times the price of Thirty-one bags.

• Place: they prefer to establish stores.

• Promotion: Tous has brand recognition and has sponsorship agreements with famous celebrities like Jennifer Lopez

Walmart Handbags Walmart entered

Mexico in 1991 in Mexico City.

The Four Most Popular Walmart Handbag brands are:GeorgeGreen Street Designs.Latiso LeatherSydney Love.

Product: they have a huge variety of products and they are not focused only on women.

Price: variety of prices between 6$ and 300$.

Place: They have 24 hour stores.

Promotion: uses Television, Radio, Internet, Advertisements in magazines, newspaper and print ads.

LESPORTSACLesportac was founded in U.S in 1974.They sell products in more than 20 countries.

Product: Lesportsac has a wide range of bags and handbags.

Price: The price ranges between $50 and $100.

Place: distribute in own stores, other department stores and retailers, online

Promotion: catalogues, advertising in magazines, internet, website

Production Relocation From China To Mexico

US companies have been moving their production facilities from China to Mexico in large amounts.

Mainly due to mandatory increases from the government for minimum wage & rising shipping costs

Manufacturing in Mexico Advantages

Close proximity to the

United States

Transportation costs from

China to the United Sates

will be reduced

Labor costs are the same

as in China

Sales Methods In Mexico1. Search for possible future sales

consultants in Mexico

2. pick potential consultants & train them

about the thirty-one company and

products

3. Give consultants free products & have

them work in their specific cities

4. Continual training and development of

sales consultants. To ensure success of

thirty-one on Mexico.

Marketing PlanWord of Mouth

Facebook for thirty-one

in Mexico

Twitter for thirty-one in

Mexico