CHILE

COUNTRY ANALYSIS WRITTEN REPORT

Professor Jeannette Mena

MAR 4156 International Marketing

University of South Florida - Fall 2020

Group 1: Melissa Smith, Christian Chatman, Sophia Geddes, Juanita Morales, Eric Aagaard
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Executive Summary

Chile, officially the Republic of Chile, is a country located in western South Africa. The

country has a unique, narrow shaped land that is situated within the Pacific Ring of Fire, between

latitudes 17 degrees and 56 degrees south, and longitudes 66 degrees and 75 degrees west. Chile

occupies about 756,000 square kilometers, or about 292,000 square miles, of land with a

population of about 19.2 million people. Thus, making the population density about 25 people

per square kilometer, or 66 people per square mile. In addition to the area above, Chile also

claims about 1,250,000 square kilometers, or about 480,000 square miles, of the continent of

Antarctica.

In May of 2008, there was an unexpected eruption of a volcano in Chile. This volcano

had been dormant for 9,000 years. Authorities ordered a complete evacuation of towns in the

Patagonian region. A few months later, an emergency was declared in parts of southern Chile

where 8 people were killed in torrential rain and widespread flooding. In February of 2010, an

earthquake caused widespread damage and took hundreds of lives in central Chile. The 8.8

magnitude earthquake was the biggest that the country has seen in over 50 years.

The legal system of Chile uses civil law and is ruled by the Constitution. The civil law

system has been influenced by multiple civil legal systems from West Europe. Chile is a unitary

state and its government is a representative democratic republic, the Chilean President is both

head of state and head of government. They use a simple-majority representation system, and the

constitution ensures that the right to vote is universal, equal, secret, and compulsory.

In the past 20 years, Chile’s population has grown from 15,342,353 people in 2000, to

19,160,213 people in 2020. This number is expected to continue growing throughout the years at

a rate of 1.4% annually. As for their economy, Chile’s economic freedom score is 76.8, making it

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the 15th freest in the 2020 Index. With a Gross Domestic Product of $481.8 billion and a growth

rate of 4%, the per capita income in Chile is $25,978. Though it is considered a very rich country

for a Latin American country, there is a big gap between the rich and the poor, causing a lot of

protests against its government in the recent years. As for trade, Chile has very few barriers to

imports or investments, which allows foreign firms to enjoy the same protections and operate

under the same conditions as local firms.

Similar to other countries in South America, the ownership of media is divided between a

few holding companies and primarily digitally focused. The main media groups are (1) El

Mercurio & Copese, which dominates about 90% of the print media industry and of the digital

media industry; and (2) Grupo Luksic, which focuses mostly on telecommunications and owns

various radio stations including Channel 13 and RecTV. Of the 509 registered media holdings in

Chile, more than half of them are digital while a small percentage are print. Chileans are

constantly increasing opportunities present for companies to reach various different audiences

through current and future digital marketing campaigns.

In their cautious nature, Chileans will only do business with those companies and people

that they trust and have a friendly, but professional relationship with. It is critical for the success

of the companies that want to break into the market in Chile that they have the help of a local

expert agency. This agency would be used to help navigate constructive and worthwhile

relationships, build trust, and assist with cultural details.

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Table of Contents

Executive Summary………………………...……………………………………………………2

Table of Contents…………………...…………………………………………………………....4

Introduction: Welcome to Chile!...……..……………………………………………………….5

Part I -- Cultural Analysis

Geographical Setting…………………...………………………………………………..6

Social Institutions…………………...………………………………………………...…8

Religion…………………...……………………………………………………………..16

Language…………………...……………………………………………………………17

Part II -- Economic Analysis

Population…………………...…………………………………………………………..18

Economic Statistics and Activity………………………………………………………20

Channels of Distribution……………………………………………………………….22

Media…………………………………………………………………………………….23

Sources of Information…………………………………………………………………………25

Appendix………………………………………………………………………………………...29

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Welcome to Chile!

Chile, officially known as the Republic of Chile, is a country located in western South

America. The country has an overall population of 19,160,213 people (as of October 05, 2020 at

11:00 am), with about four percent of the population located in the capital and largest city,

Santiago. Chile occupies a long, but narrow shape of land that is about 756,000 square

kilometers, or about 292,000 square miles. It’s climate varies from the world’s driest desert in the

north, the Atacama, to a snowy Alpine climate in the south. This is largely due to the unusual

shape of the country.

In 1810, Chile proclaimed full autonomy after Napoleon overthrew the king of Spain,

Ferdinand VII or more commonly referred to as Ferdinand the Desired. This sparked the Chilean

War of Independence between those seeking political and economic independence from Spain

and those supporting the continued allegiance to the General of Chile and membership of the

Spanish Empire. The war concluded in 1818 when a declaration of independence was officially

issued by Chile in the beginning of February. During the years of 1879 and 1884, Chile and the

Bolivian-Peruvian alliance fought over claims on coastal territory. This is known as the War of

the Pacific, or the Saltpeter War. The war ended in Chilean victory, allowing the country to

acquire pacific coastline territory rich in minerals. The result: a remarkable boost in the

economy, starting with taxes on the new land and later large-scale mining of nitrate and copper.

More recently, in August of 2006, Chile and China signed a free-trade deal, the first in South

America. In December of 2017, Sebastian Pinera was reelected president, after his initial time as

president from March of 2010 to April of 2013 , and remains the current president of the country.

There are many hopes that the billionaire conservative introduces more “investor-friendly”

policies.

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Part I: Cultural Analysis

Geographical Setting

Location

The country Chile is located on the west side of south America and takes up most of the

westward coastline of the continent, it stretches over two thousand five hundred miles from north

to south and is only about two hundred miles wide at its maximum width. Chile has an area of

almost three hundred thousand square miles and also has jurisdiction in a part of Antarctica

claiming about five hundred square miles of land there too but is not strictly enforced. Chile is

bordered to the north by Peru, to the northeast is Bolivia, to the east is Argentina, to south and to

the west is the Pacific Ocean. Marketers could face potential problems with marketing here

because of the odd shape of the country and distribution of the population throughout which

means they would probably have to change the product to fit each region they intend to target as

well as figure out the best way to distribute to the distant corners of the country.

Climate

The climate in this country varies greatly in different regions of the elongated country

and is estimated to have at least ten or more different climate types in the country. In the northern

regions such as Atacama Desert it is one of the driest deserts in the world. As you make your

way south to the center of the country starts to turn into a Mediterranean climate. The southern

part of the country consists of glaciers and tundra’s. The islands that occupy the waters around

chile such as easter island are of an oceanic climate. The seasons in Chile are reversed compared

to the United states because it is located in the southern hemisphere, their summer months are

our winter months and vice versa. With all these different types of weather and climates to

expect in this country it would make it difficult to market a universally similar product

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throughout the country so there will need to be adaptations to whatever is being marketed there

based on where it is going to end up to make up for the differences in the location and climate it

will end up in.

Topography

The country of Chile has a unique geography about it since it spans so far north to south

and has several different climates zones that pass through it and the way that the country was

formed is also a defining feature of it. The west coast of south America sits on actively moving

tectonic plates that are always pushing against each other and this has extreme effects on the

country's landscape. The plate that is colliding into Chile is the Nazca plate which is a part of

what is called the ring of fire in the Pacific Ocean where is an area that volcanic activity is very

prominent which encompasses Chile's west coast into it. In Chile's case the Nazca plate is

subducting under the south American plate which basically means it is sliding under one another

and when this happens it can create earthquakes of any magnitude if enough pressure is built up

and released over time. When plates collide and subduct like this it creates volcanic mountain

ranges which is what spans the entire length of the country on the west side of the country called

the Coastal range. The east side mountain range is bigger and creates the border to the other

countries listed above and are not volcanic. Both mountain ranges and the possible volcanic

activity and earthquakes that could occur pose a potential problem when it comes to marketing in

the country and need to be taken into consideration when deciding to where you want to set up

your headquarters and distribution centers and the challenges that must be overcome to get

products, people, and supplies across the country without being effected or trying to mitigate the

effects if a natural disaster does occur.

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Social Institutions

Family

Chilean society places importance on valuing family. The “nuclear family” is the most

common family structure in Chile, family groups consisting of two parents, a man and a woman,

and their children. Family often majorly influences individuals in Chile and they often use family

for guidance. It is expected for individuals to be committed to their family above all else and to

show loyalty.

Chileans have strong bonds with extended family members as well. Chileans are

normally provided with support and security in times of need due to their emphasis placed on

family importance. This is especially the case when it comes to lower classes, extended families

often become a source of support when dealing with hardships and tragedy. Extended families

visit each other often and place importance on celebrating occasions such as birthdays or

weddings. Chileans consider family friends as part of their family, children are often raised

calling their parents’ friends “aunt” or “uncle”.

Young Chileans tend to live at home until they find a spouse or are required to move

elsewhere for career reasons. Men tend to marry at the age of 22 and older, though women often

marry between the ages of 18 and 23. Chile was one of the last countries worldwide to legalise

divorce in 2004, but it is still very rare for couples to legally separate. Parental authority remains

even once children live an independent lifestyle. Chilean children often look to their parents on

life choices such as their career, education, and marriage. Grandparents also play an important

role when it comes to authority in the culture. Grandparents often live with the family of one of

their daughters or sons.

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Fathers typically work and mothers are the primary caretakers of Chilean children.

Though, those in higher classes often use full-time support of “domestic workers” who live

inside the family home. They tend to children but they may also clean, cook, and do other chores

for the household. With lower class families, it is common that the older siblings care for the

younger siblings when parents work outside of the home.

Under Chilean law, women and men are equal. Unemployment for women in Chile is

much higher than for men. Women still have to work in less favorable conditions than men and

are only paid 65% of the income earned by men with equivalent jobs and careers. When it comes

to education, women under the age of thirty-five have equal or more education than men. Middle

and upper class women are typically well educated and are not only employed in traditional

female dominant fields like nursing and teaching, but also as engineers, doctors, lawyers, and

economists. Chilean men normally always socialize with their friends in the company of their

girlfriends or wives and include them in conversation. Currently Chile is experiencing high rates

of domestic violence, particularly attacks against women involvoing femicide. Chilean media has

been downplaying this issue by portraying these attacks as exceptional, isolated events, or family

drama. There is persistent gender inequality that is directly demonstrated by the low number of

women in any position of power. Despite women and men being equal under Chilean law, as a

whole Chilean women possess a lower status than Chilean men.

Education

The Chilean Constitution establishes and guarantees 12 years of free and mandatory

education providing access to high school for all individuals under the age of 21. The literacy

rate in Chile is 96.4%. Their four-year secondary level school follows eight years of primary

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education. Chilean secondary education lasts for four years and is made to prepare students for

tertiary education, being offered by science and humanities schools.

The curriculum for the first two years of secondary education is mainly broad-based and

given with no streams, though there are choices of electives. Students are required to undertake a

minimum of 33 hours of instruction each week. The required courses are Spanish, history,

geography, foreign languages, philosophy, psychology, mathematics, natural science, art, and

physical education. In the final two years of secondary education, students choose up to 15 hours

of elective courses in science or technical subjects, and humanities.

Chilean students who attend a government-funded university or who go to private

university must take the Prueba de Selección Universitaria examination. Though, the secondary

graduation certificate is acceptable for entry into many private universities.

Chilean undergraduate college degree programs are similar to those in the United States.

Undergraduate programs in Chile consist of Técnico (Technician), Profesionales(Professional

Titles), Bachiller (Bachelor), and Licenciado(Graduate). Entry/admission for all programs except

for Licenciado is based on the Licencia de Educación Media, some institutions also require an

entry examination. Técnico are two to three and a half year programs that train for higher

technician, in some cases an entry examination is required. Títulos Profesionales is a degree

certificate awarded in a certain field taking about four to five years to complete. There are 18

protected fields that include law, architecture, economic sciences, journalism, dentistry,

pharmacy, and education. Bachiller is a two year degree earned prior to studying at the

Licenciado or professional level title. Licenciado is the main academic degree at the

undergraduate level in Chile. Admissions to Licenciado is based on the Licencia de Educación

Media as well as the centralized Prueba de Seleccion Universitaria admissions examination.

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These programs normally include compulsory units related to the major being studied plus a

number of elective courses in a specialization of the individual’s choice.

Chile has three different graduate programs which are Magister, Postitulo, and

Doctorado. Admissions is based on the Licenciado for all programs. A magister degree requires

a Licenciado degree and is offered only at universities, normally traditional universities but there

are also some private universities. Magister degrees take between one and three years varying

with the field of study. Postitulo programs are aimed at professionals looking to maximize their

skills, taking one semester to two years to earn a degree. These degrees are only offered at

universities and are considered graduate level. Doctorado degrees represent the highest academic

level and normally take three or four years to complete. Doctorado programs include completion

of course work loads and a submission of dissertation based on the original research.

Political System

Chief of State & Head of Government: President Sebastián Piñera Echenique.

Chile is a unitary state and its government is a representative democratic republic, the

Chilean President is both head of state and head of government. The country is divided into 15

regions and 54 provinces for governmental and administrative reasons. For the purpose of local

administration, provinces are split into comunas. The 15 regions are subdivided into provinces,

which are then split into 346 comunas.

The Chilean political system has 20 active political parties, which include the

Independent Democractic Union, Christian Democractic Party, Party for Democracy, Socalist

Party, Social Democrat Radical Party, Communist Party, Progressive Party, Green Ecologist

Party, Humanist Party, and Equality Party.

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The government has three different branches: executive, judicial, and legislative. All

three of the branches serve four year terms. The executive branch is made up of the president

who is elected by the absolute majority vote using a two-round system. The president is

responsible for the government and state administration. The judicial branch is made up of 38

senate members which are elected through a closed party-list majority process. The senate must

know of accusations made by the chamber of deputies, to lend or deny its consent to actions of

the president of the republic in cases that the constitution requires by law, as well as to provide

its advice to the president of the republic in requested cases. The legislative branch is made up of

120 chamber of deputies members who are selected through a closed party-list majority process.

The chamber of deputies adopts agreements, suggests observations, and decides whether

accusations should be accepted.

The mayor has the highest municipal authority and is responsible for direction,

managing, and overseeing municipal government. Mayors are selected by universal voting. Each

municipality is led by a councilperson with operative, normative, and oversight responsibilities

and is made up of six to ten councilpersons, varying with the numbers of electors in each

comuna. Terms for mayors and councilpersons are four-year and renewable. Chile has a

simple-majority representation system. There is no minimum election threshold for mayors.

Legal System

The legal system of Chile uses civil law and is ruled by the Constitution. The civil law

system has been directly influenced by West European civil legal systems. The Constitution of

Chile was adopted in 1980 and was reformed in 2005 under the democratic government. It has

six focuses: limited government, republicanism, checks and balances, federalism, separation of

powers, and popular sovereignty.

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Democratic state guarantees the right of full exercise of political rights, in accordance

with the principle of popular sovereignty and with the laws coming from the Constitution. This

ensures that the right to vote is universal, equal, secret, and compulsory. There is an established

rule of law, meaning the citizens are subject to the Constitution and the legal order. It addresses

free enterprise, it recognizes free enterprise within the workings of a market economy. This

exercise is protected and guaranteed by public authorities. It also provides strong protections for

any form of property at its level. The principle of non discrimination forbids any form of

discrimination under the constitution.

Nulla Poena Sine Lege is a Chilean constitutional principle that guarantees no individual

may be convicted or sertenced for actions or omissions which when committed did not constitute

a crime, misdemeanor, or administrative infringement as established by legislation in force

during that moment. The Civil Administration is forbidden to impose sanctions that directly or

indirectly imply deprivation of freedom.

Legal remedies give all persons the right to effective protection of the judges and courts

in the exercise of their rights and serious interests, and no case will have a lack of defense

guaranteed under the Constitution. No tax without law is a constitutional principle that grants the

government to establish nex taxes only by law. The president has exclusive initiative in tax

matters, the originating house is the Chamber of Deputies.

The judicial system in Chile is divided into three levels: Supreme Court, Court of

Appeals, and tribunal of first instance. At the top of judiciary courts is the supreme court, which

has 21 judges who are appointed by the President pretending approval of the Senate, who are

chosen from a list of five judges created by a current Supreme Court Member. The supreme

Court has control of all judges, both administrative and regulatory. There are 13 courts of appeals

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and a plethora of ordinary judges, split into civil and criminal matters, children and labor. At the

lower level there are judges in taxation matters, but they are not independent.

In order for a trademark or patent to be recognized, it must be registered in Chile. If the

trademark has been requested prior outside of the country, the applicant has a six month priority

period to request the same in Chile. A trademark or patent can be revoked by means of a

cancelation action filed before INAPI.

Chilean Seven Step Law-Making Process:

1. Initiative
2. Debate
3. Voting
4. Passing
5. Sanction or Veto
6. Enactment
7. Publication
Social Organizations

Social structure in Chile can be divided into three classes. In the upper class, there are

members of the old landed aristocracy, as well as those with higher earning careers such as

industrialists, merchants, politicians, and military men. The middle class is largely urban and

widely varied in incomes, occupations, and hobbies. Teachers, professors, civil servants, private

employers, and small industrialists and investors are professions that make up the middle class.

The lower class is made up of factory works, miners, farm laborers, and craft workers. Due to

class structure, it is typical for people to try and deduce another person’s position within the

social rank. This is usually done through outward appearance, such as clothing or mannerisms.

As a direct result, Chileans tend to try and present themselves in the best possible way.

Geographical and regional differences aside, many Chileans believe their society is

homogenous. The Chilean Spanish language, religion, and the isolation of Chile from the rest of

South America have all contributed to Chilean culture. Traditional norms and values are adapting

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to globalization and social mobility have overall increased. Family remains the most valued part

of Chilean culture, but the importance of family life has lowered slightly as Chileans relax some

of their more traditional and conservative views. Chile is in the advanced level of demographic

transition and is forming into an aging society which can be observed from its fertility rates

below replacement level, low mortality rates, and life expectancy similar to developed countries.

Historically Chile has been a country of emigration though is slowly becoming more

attractive to immigrants since transitioning to democracy and improving economic stability.

Most of the country’s foreign-born population consists of people from other Latin American

countries, especially Peru. Ethnic groups that make up Chile’s population are white and

non-inigenous at 88.9%, Mapuche at 9.1%, Aymara at 0.7%, and other indigenous groups

making up 1%. Chilean is the country’s nationality and the median age is 35.5 years.

Business Customs & Practices

Chileans place importance on business professionalism and using proper etiquette. In

business settings, people greet one another with firm handshakes with direct eye contact and

smiling. When addressing someone, they tend to use their counterpart’s title followed by their

surname, not using the first name unless asked to do so. During meetings, people tend to

interrupt one another, this is not considered rude but a way of showing excitement and interest.

Chileans take pride in dressing well, business dress attire is similar to that in American culture.

Men are to wear conservative, dark-hued suits. Women are to wear a suit or elegant dress.

Though punctuality is respected in Chilean business settings, it is not uncommon for

them to arrive 30 minutes after the designated meeting time. Chileans are flexible when it comes

to time, therefore meetings often do not run on time, possibly starting late and having no

confirmed end time. Due to this, meetings have loose structure and often a lack of agenda.

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Ideas are generated and discussed during meetings, though decisions are generally not

made during the meetings. All necessary information is provided to assist the head

decision-maker. The Chilean process of business decision-making is centralised, meaning that

most decisions are made by those higher up in the organization.

In Chilean business settings, communication is typically in key with people’s feelings and

attitudes. Chileans tend to avoid confrontation and criticism to avoid putting another’s honour at

risk. This can require one to analyze their Chilean counterpart’s true intentions. They typically

dislike hard-sell approaches and aggressive techniques. Though the business setting is kept quite

formal, Chileans enjoy using humour when communicating.

Chilean culture’s emphasis on being relationship-driven is often reflected in their

business culture. Developing and maintaining a personal relationship with business partners is a

must for Chileans, a relationship must be developed before foregoing with any business deals.

Social gathering and activities outside of the workplace are a way to build rapport with business

partners. The word “pitutos” refers to contacts, connections, or relations one has in the business

setting. Chileans utilize pitutos to speed up production or procedures, to become familiar within

a company, or to gain desired contractual terms. In Chile, nepotism is positively received and

ensures trust. Chileans often believe personal relationships are necessary for generating business

opportunities.

Religion
Religion in Chile is made up of 66.7% Roman Catholic, 16.4% Evangelical or Protestant,

1% Jehovah’s Witness, 3.4% other, 11.5% none, and 1.1% unspecified.

All forms of faith are represented in Chile, but Christianity is the largest practiced

religion. The majority of Christians in Chile are Roman Catholic and there are also many

Protestants. Spanish Colonialists introduced Catholicism to Chile during the 16th century. The

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government observes multiple Catholic religious holidays, the Catholic church plays a role in

education, being involved in a number of univestites, primary schools, and secondary schools.

Religion is a part of the everyday lifestyle in Chile. Despite religion playing a large role in the

culture, there is a decent proportion of the population that do not follow a religion.

Over half of all Chileans who claim a religious affiliation are female. Among those who

practice religion, the proportion of females is a lot higher. About 70 percent of people attending

church services weekly are female. The proportion of practicing Roman Catholic women is

around 63 percent.

Language

Official Language

The national language spoken in Chile is the same as most of the other south American

countries and it would be Spanish. There are several other minority languages that are spoken

too, some are on the incline like English which is now being taught at school to younger children

and some communities are speaking German more however, the languages that are on the decline

are the native languages to the point of which they are going extinct. This shows us that when we

are marketing in this country, we should be primarily using the top two languages which are

Spanish and English to market our products to since they are likely to be the most successful

markets in the country. The written and spoken languages are primarily Spanish and English in

Chile so this would work out in the long run.

Dialects

The unique dialect that the Chileans use is like the normal Spanish that is spoken

everywhere in south America but with a few changes and twists to it. The first changes would be

that they make is that they have a softer pronunciation than the surrounding countries and the

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other change would be that they sometimes don’t say the full word and drop a few syllables near

the end of the word. These adaptations and variants are scattered throughout the country so a

marketer could custom tailor adds to certain parts of Chile that a product or service is being

marketed to so that they can make sure that people know exactly what is being said and can

understand or interpret it easier with less chance of confusion which would be good for the

company.

Part II: Economic Analysis

Population

In the past 20 years, Chile’s population has grown from 15,342,353 people in 2000, to

19,160,213 people as of October 05, 2020 at 11:00 am. (See Figure 1.) The country’s population

is expected to continue growing throughout the years, at a growth rate of 1.4% annually. At this

rate, Chile is expected to exceed 20 million people within the next 20 years. (See Figure 2.)

Currently, Chile’s population accounts for about 0.25% of the world’s population.

Age Distribution

Of the overall population, about 19.75% falls between newborn (0) to 14 years of age.

About 68.72% of the population falls between 15 to 64 years of age, with the median age being

about 35.5 years old. The remaining 11.53% of the population is 65 or older. (See Figure 3.)

Ethnicity in Chile

The country is composed of two main ethnic groups. The first being made up of mixed

white and Amerindian ancestry, referred to as white and Mestizo. This group accounts for 95%

of the total population of Chile. The other group is Amerindian, which includes Quechua,

Mapucha and Aymara ancestry. This group accounts for the other 5% of the population.

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Gender Distribution and Issues

As of 2019, the female population was about 9.6 million (about 51% of total population),

while the male population was about 9.3 million (about 49% of total population). (See Figure 4.)

Therefore, the population is close to evenly distributed between genders. However, genders are

not as evenly distributed in each age group. Those people that fall in the age group from

newborn (0) to 24 years of age have a male to female ratio of 104 to 100. Those people that fall

in the age group from 25 to 69 years of age have a male to female ratio of 97 to 100. Those

people that are 70 years or older have a male to female ratio of 68 to 100.

While Chile has been working throughout the twentieth century to improve the lives,

roles and rights of women, the country still struggles with gender roles and gender

discrimination. In Chilean society, traditional gender roles are prevalent. More specifically, one

of the main traditional gender roles is the idea that women should limit themselves to the

traditional roles of “mother” and “wife,” rather than “politician” or “business woman.” In

addition, Chile has one of the lowest rates of female employment in all of Latin America. This is

mainly due to the work opportunities for women being varied, and mostly only available

depending on social class. In a study conducted in 2010, it was reported by the United Nations

Development Programme (UNDP) that 62% of the population of Chile are “opposed to full

gender equality.” However, in 2012, a report was released by the World Bank Group regarding

Gender Equality and Development throughout the world. The report states that “male attitudes

towards gender equality are that ‘men do not lose out when women’s rights are promoted.’”

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Population Distribution by Location

As of 2018, about 88% of the total population of Chile is in an urban location. The

following are the five most populous cities in Chile, starting with the highest at number one:

1. Santiago: 4,837,295

2. Puente Alto: 510,417

3. Antofagasta: 309,832

4. Vina del Mar: 294,551

5. Valparaiso: 282,448

For more information about populations within each city in Chile, view Figure 5.

Other Information

● As of 2018, at birth, the life expectancy of an individual was about 80 years.

● The population density in Chile in 2019 was 25 people per kilometer, or 66 people per
mile.
● As of 2018, the infant mortality rate was 6.2 per 1,000 live births.

Economic Statistics and Activity

When it comes to economics, Chile’s economic freedom score is 76.8, making its

economy the 15th freest in the 2020 Index. With a Gross Domestic Product of $481.8 billion and

a growth rate of 4%, the per capita income in Chile is $25,978. Even though Chile seems to be

well off economically for a Latin American country, a 2018 government study showed that the

“richest Chileans had an income nearly 14 times greater than the poorest” making it one of the

“most unequal OECD countries [...] with an income gap [of] about 65% higher than the [...]

average” . This has caused a lot of protests around the country recently.

With their key activity sectors including mining (Being the world’s leading copper

producer) and agriculture (fishing, fruit,etc.), the top exports in Chile are copper Ore ($18.6B),

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Fish Fillets($2.78B), and Raw Copper ($2.16B). Their top imports include Cars ($4.81B),

Refined Petroleum ($4.68B), Delivery Trucks ($2.65B), and Broadcasting Equipment ($2.35B).

The three biggest import partners of Chile are China, the United States of America, and Brazil.

In terms of exchange rates, the national currency is the Chilean peso, with 1 US dollar being

around 790 Chilean pesos in average. The inflation rate in Chile is currently at around 2,3%

(CPI), but usually fluctuates a good amount.

Chile has a lot of trading going on between countries with various Free Trade

Agreements as well. Therefore, it has very few barriers to imports or investments, allowing

foreign firms to enjoy the same protections and operate under the same conditions as local firms.

A relevant agreement to mention is the Chile-US one, which came into force on January 1, 2004.

Since January 1, 2015, all trade between the U.S. and Chile had no tariffs. For those products not

of U.S. origin, Chile applies a uniform 6% tariff. Lastly, all imports are subject to the same 19%

Value Added Tax (IVA) imposed on domestic goods (Chile - Import Tariffs). In regards to trade

standards, Chile’s long-term plan for developing standards goes in line with its primary export

sectors (copper, agricultural products, and wine). Other sectors are more subjected to a mix of

voluntary, formal, and mandatory standards.

Finally, Chile has had a very fluctuating unemployment rate. Though it currently is at

around 7.2%, it increased from 6..51% in 2015 to 7.23 in 2018 and went back down to 7.09% in

2019. This is based on a labor force total of 9,558,222 (2019).

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Channels of Distribution

Channels of Distribution is a chain in which goods and services are passed until they

reach the consumer for his or her needs. Distribution channels can include wholesalers, retailers,

distributors, as well as online shopping. There are four types of channels of distribution. These

include direct selling; selling through intermediaries; dual distribution; and reverse channels.

With channels of distribution, it is important to have a strategy for the country to

maximize profit. Regarding Chile, they have implemented an agent/ representative who has

expertise in this subject matter. His or her role is to network with relevant buyers to create strong

channels of distribution. Most manufacturing, trade, and service activities in Chile are managed

from the region in Santiago. International Trade and Administration cites, “Approximately 97%

of exports and 59% of imports go through seaports, the most important of which are San Antonio

and Valparaíso, which cover the Regional Metropolitan region of Santiago. All other trade

exits/enters the country via airports and by surface transportation, mainly to/from Argentina,

Brazil, and Bolivia. Chile receives the majority of its imports through seaports” (U.S. Embassies

abroad). After these access points, most of the merchandise transportation is done by trucks. The

railroad system is limited in Chile, but the country is very modernized and still expanding. Large

corporations are building warehouses and supermarkets to reduce the need for a railroad system.

Retail is a large part of how many countries make a profit. Retail is the business of selling

products and services to an individual who is most likely the consumer for his or her benefit.

Retail can range from online shopping to brick-and-mortar storefronts. These include large

chains like Walmart to big-name gas stations like Shell. Consumers play a big role in the

products and services that are in demand. It is the business's job to meet the demands of the

consumer by using the supply chain. Chilean retail industry is the most developed in the Latin

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American region, with retail sales reported at USD 28 billion per year in 2016. The main form of

purchasing power in Chile is the form of cash. Chile’s form of currency is pesos, however, credit

can also be used as a form of payment. Credit is mainly accepted in areas where there is a large

abundance of tourism. In these areas, an interest charge is given, whereas pesos are widely

accepted anywhere. In this South American country, Chile is no stranger to the use of retailers. In

2018, Statista reported shopping malls accounted for 37% of Chile’s retail market. This data

shows the Chileans prefer the use of large physical stores over online retail. Convenient grocery

stores are popping up all around the residential neighborhoods in Chile. This information shows

Chile is a huge scale of operations management with an increasingly growing urbanized market

reaching outside the Santiago metro area.

Media

Media is how the country of Chile receives its information on the advancements

happening in the country. With the growing modernization of the country, there is a good mix of

ways the Chileans access their day to day affairs. As with other South American countries, the

paper is still a form of media in Chile. This can include traditional newspapers as well as hard

copies of magazines. As of today, companies are pushing for digital ways of marketing because

there are no restrictions on access to media in Chile. Chileans are also able to receive US and

international networks through cable networks. With the increased routine of mobile devices,

companies are taking advantage of reaching Chileans through digital marketing campaigns.

“There are 115 registered radio stations (with four groups dominating some 70% of the market)

and are 45 television holdings.” This quote shows you the governance a small majority of the

media has on the Chilean population. Telecommunication is still a form of marketing and news

in the use of radios and television. In Chile media groups El Mercurio & Copese dominate 90%

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of the print media market in Chile. “Two media groups, El Mercurio & Copese dominate most

(90%) of the print media landscape in Chile, as well as the lion’s share of the digital media

industry and will be regular staples for Chilean PR agencies. El Mercurio, considered the oldest

Spanish language newspaper in circulation (founded in 1827) is owned by the eponymous

company, who also own tabloid LUN (Las Últimas Noticias); daily evening paper La Segunda;

electronic portal Emol; and 21 regional newspapers including the Santiago free-sheet HoyxHoy;

along with radio stations Universo, Digital FM, and Positiva FM. Meanwhile, Copesa group

owns national daily La Cuarta; free-sheet tabloid La Hora; Santiago daily La Tercera; Pulso, a

business and economics publication, along with magazine titles Qué Pasa, and Paula”

(Communications). This form of dominance between these two media groups makes it harder for

smaller companies to distribute their local information into the Chilean market. Chile allows the

form of journalism within the country. These are outside sources that the Chilean government

allows to take part in the growing changes happening within the country. Journalists must

provide a source of trust and respect with the PR agencies in Chile to continue to receive

valuable information. These are the various ways media is introduced to the country of Chile.

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Appendix

Figure 1.

Figure 2.

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Figure 3.

Figure 4.

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Figure 5.

Figure 6.

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Figure 7.

Figure 8.

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