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Market Expansion Challenge

Client Company Name: MVP Hair Inc.

TABLE OF CONTENTS


Executive Summary……………………………………………………………………………………………………3

Brief Background of MVP…………………………………………………………………………………………..4

Report Section 1: Survey of the Industry……………………………………………………………………..5

Report Section 2: Company Competitive Position………………………………………………………..6

Report Section 3: Market Success Criteria………………………………………………………………….9

Report Section 4: Market Selection and Analysis……………………………………………………….11

Report Section 5: Market Entry Mode………………………………………………………………………17

Report Section 6: Distributors…………………………………………………………………………………..18

Report Section 7: Payments Options and Financial Considerations……………………………19

Report Section 8: Promotion Channels…………………………………………………………………….20

Report Section 9: Marketing……………………………………………………………………………………..21

Report Section 10: Certification………………………………………………………………………………..22

Report Section 11: Logistics………………………………………………………………………………………23

Report Section 12: Human Resource…………………………………………………………………………24

References………………………………………………………………………………………………………………..27

 

 

 

EXECUTIVE SUMMARY

MVP Hair is a company that produces natural hair-care products especially healthy relaxers, conditions and styling lotion. The company was founded in 1998, Ghana.

1. Industry and Competition Analysis

• SWOT Analysis:

Strength:  Product technology and innovation High quality and natural product	Weakness:  Weak brand power
Opportunity:  Banks’ mobile and internet platforms; Global trend to natural products.	Threats:  Competition from rivals

• PEST Analysis:

Political:  Political uncertainty; Strict legislation	Economic:  Increasing demand and competition Banks’ mobile & internet platforms Low level of disposable income Weak currencies
Social:  Global trend and fashion to natural beauty Changing lifestyle; Consumer loyalty	Technological:  R&D for developing technology E-commerce

2. Market Success Criteria

• Attractive market: Affordable but not too much competition

• Political factor: Ghana-business-friendly
• Investment: Relatively low investment
• Product: Natural-product preference

3. Market selection and Analysis: Kenya

• Comparison among four markets: Great Britain, Germany, Nigeria and Kenya

• Economic environment: GDP, Inflation Rate trend;
• Political and legal environment: historical domestic tensions and contest related with centralization and exploitation of power, high levels of corruption
• Cultural environment: Three potential main customers: Style industries (Darling) in Nairobi, Ashley Hair & Beauty Academy in Nairobi and Amadiva beauty in Nairobi
• Competition Analysis: Three main competitors: Mega Growth, DARK AND LOVELY and TCB；MVP competitive advantage: Best-cost strategy;

4. Market Entry Mode and Distribution Channels

• Market entry mode: Licensing

• Three main distributors: Lintons Beauty World, Goodlife Pharmacy and Uchumi

5. Logistics and Certification

• Logistics: Sea Transportation

• Certificate of Conformity (CoC) is needed for all products that exported to Kenya which is authorized by Kenyan Bureau of Standards (KEBS)

6. Promotion and Marketing: own business card; outdoor advertising; social media; blogging and writing articles; freebies;
7. Human Resource: Hire good sale representatives through websites following MVP’s efficient process.

Brief background of MVP

Established in 1998 by Sandy Osei-Agyeman, SLID Industries Limited is a hair and healthy skin assembling and conveyance concern joined in Ghana, West Africa. The organization’s center business is the creation and promoting of hair and skin items under the MVP, Family Choice, Skin Fine and LaNé mark names. The items are sold in Ghana and other African nations including Ivory Coast, Nigeria, Togo and South Africa, among numerous others.

Sandy Osei-Agyeman, a fellow benefactor of AFAM Concept (Chicago, US), the creators of the world celebrated and effective ELENTEE, VITALE and MO’BODY brand of hair items has a magnificent reputation and quite a long while of involvement in the business. Together with his accomplices at AFAM, 2 they spearheaded new ideas in hair administer to ethnic minorities. Such new ideas incorporated the now well-known “Never Greasy” and “Moisture Retention” way to deal with hair care.

As market pioneers and pioneers of hair relaxer innovation, AFAM is presumably the main organization that offers sodium, lithium and calcium relaxers for every hair surface and scalp sort. SLID’s new creation, MVP (Most Valuable Product) joins these ideas to make an item that uses the “best of both worlds” in hair care.

By joining the prevalent research and propelled study of the USA with the regular, plant and home-grown assets of Africa, MVP offers imaginative, useful and adjusted items to tend to the hair as at no other time. A promoter of a frameworks way to deal with hair care, MVP items saturate, condition, revive, and repair amid all periods of hair care. This guarantees a sound hair brimming with non-abrasiveness, smoothness, body, and energetic sparkle constantly.

Report Section1: Survey of Industry

TRENDS: The proceeded with prominence of hair mind among the nation’s working white collar class and youthful populace advanced esteem offers of healthy skin in Kenya in 2016. Also, expanded web get to, worldwide travel and instructive articles in the media, advanced hair care’s development over the survey time frame. Besides, new item improvement gave an extensive variety of hair care items from which shoppers could choose amid the audit time frame.

   COMPETITIVE LANDSCAPE: Haco Tiger Brands drove hair mind in 2016 with an esteem offer of 38%, increasing one rate point. Consistently, the organization increased its advertising for its Miadi image trying to make more prominent item mindfulness. Also, the organization’s detailed conveyance and direct pitching procedures to hair salons and other autonomous outlets supported esteem deals in 2016. The organization’s sheer scope of hair mind items, which are moderately estimated, kept on speaking to a more extensive shopper base along these lines boosting its business esteem and volume. L’Oréal East Africa positioned second with an esteem offer of 28%, while PZ Cussons East Africa positioned third, controlling a 10% esteem share in hair care.

    PROSPECTS: The expanded multiplication of hair salons and excellence spas in many parts of the nation in accordance with rising interest for individual prepping particularly among ladies, expanded expendable wages are good to go to support esteem and volume deals over the figure time frame. Exceptional magnificence authority retailers, which are deliberately situated in strip malls, additionally give a chance to premium brands to enter the class.

 

Report Section 2: Company Competitive Position

Company Competitive Position Analysis traditionally includes SWOT and PEST Analysis as basic tools to study which positioning has the company, in our instance MVP company.

To begin, with SWOT analysis means division all competitive factors into 4 groups (Table 2.1).

Table 2.1

Structure of SWOT analysis

Internal factors  are within our control	Strengths – the positive aspects internal to our business that add value or offer you a competitive advantage  Weaknesses factors that are within your control that detracts from your ability to obtain or maintain a competitive edge
External factors  beyond our control	Opportunities – theses attractive factors represent the reason for our business to exist and prosper.  Threats – challenges created by market uncertainty

 

So, let’s consider the SWOT analysis of MVP company (table 2.2).

Table 2.2

SWOT analysis of MVP company

Internal	Strengths	Weaknesses
	Marketing innovations – the company is pioneer new concepts in hair care for people of color Product innovations – providing the best quality service by combining the superior research and advanced science of the USA with the natural, botanical and herbal resources of Africa Excellent track record and several years of experience in the industry of the top management Famous “Never Greasy” and “Moisture Retention” approach to hair care 2 famous “Never Greasy” and “Moisture Retention” approach to hair care Customer Interaction – education and community involvement with our customers through our well trained, trustworthy, dedicated, reliable and experienced staff Pioneer hair relaxer technology- the company is probably the only company that offers sodium, lithium and calcium relaxers for each hair texture and scalp type Consumer loyalty to the national brand Surpassing global standards in natural cosmetics Strong research & development in oder to crate ecological-friendly product Quality and safety – the cosmetics industry has to comply safety requirements and legislation	Brand power – not excellent advertising and not high brand visibility Local market – the company is mostly oriented to the local but not global market Dependence on supplier – the company is dependent on its external suppliers
Externa l	Opportunities	Threats
	Relationship selling – we will get in touch with each our representative and distributor       Increasing purchasing power of people thereby increasing demand in Africa       Banks’ mobile and internet platforms to provide simple and efficient services to the customers – an opportunity to deliver our products directly to the final customers via Internet       Global trend and fashion to natural beauty, personal hygiene and grooming needs of the customers	Local area networks       The larger price-oriented store. When they have huge advertisements of low prices in the newspaper, our customers think we are not giving them good value.       Weak currencies in most African countries       Intense and increasing competition amongst other companies, first of all well-known global companies       M&A – big companies has acquired many brands over a short period of time       Appearance of New Business Models – the cosmetics industry has seen many start-ups during the recent years

         To sum up, we can have mentioned that MVP company has a strong position on the market and good prospect according to the global market trend.

The second step in Competitive Position Analysis is PEST analysis (table 2.3).

Table 2.3

PEST analysis of MVP company

Political	Economic
Political uncertainty in African countries            Strict legislation – the company is obligated to produce safe products without any harmful substances            Strict advertising legislation	Increasing purchasing power of people thereby increasing demand in Africa            Banks’ mobile and internet platforms to provide simple and efficient services to the customers            Low level of disposable income to buy expensive products            Intense and increasing competition amongst other companies            Weak currencies in most African countries            Not high level of competition in this particular segment            M&A – big companies has acquired many brands over a short period of time
Social	Technological
Global trend and fashion to natural beauty, personal hygiene and grooming needs of the customers                The company should be in line with the changing lifestyle of the customers                Consumer loyalty to the national brand	Company has to spend more and more for R&D to develop technology of producing neutral cosmetics                 The possibilities of using e-commerce

 

To sum up, we can have mentioned that the most important factor group for MVP Company is economic factors due to the purchasing power the customers.

Furthermore, through made deep research, we find reasons why and how MVP company get success. All reasons of success of the MVP company can be divided into 2 groups: internal and external. So, let’s consider all Success Reasons of MVP company in detail (table 2.4).

Table 2.4

Success Reasons of the MVP company

Internal Success Reasons	External Success Reasons
Product Management means selling MVP’s products and service that have a unique benefit customers wants and can’t get elsewhere (hair care for people of color), and delivering these products and services in ways that provide enough quality that customers will return	Attractive market: Not high level of competition in segment of neutral cosmetics for color people  Consumer loyalty to the national brand
Financial Management means optimizing cash flow   to ensure smooth operation	Target market: Due to the low level of disposable income to buy expensive products, Increasing purchasing power of people thereby increasing demand in Africa
Cost Containment means evaluating cost-control options to optimizing costs to increase margins	Political factor: Political uncertainty in African countries leads to appearing politics risks which should be minimized by strict legislation commits the company is to produce safe products without any harmful substances
Promotions means an effective mix of advertising, public relations, promotions and social media campaigns	Investment: African countries have high investment attractiveness and attracts huge amounts of greenfield investments

Report Section 3: Market Success Criteria

Market success criteria of the MVP company’s activity include next external factors divided into several groups.

       1)  ECONOMIC FACTORS – greatly affect how businesses operate and make decisions

• currency risks and exchange rate regimes

• rate of inflation
• internal demand
• economic stability
• tariff and non-tariff regulation
• disposable income
•  interest rates
• investment climate
• taxation
• infrastructure development

       2) POLITICAL FACTORS – how the government intervenes in the economy

• political risks

• political stability
• legislation
•  labor law
• level of the competition
• lobbies

      3) SOCIAL FACTORS  – affect the demand for MVP products and operations

• health consciousness

• fashion trends
• consumer behavior
• age distribution
• population growth rate
• culture
• traditions in the society
• career attitudes and emphasis on safety

4) ECOLOGICAL FACTORS – include any factors that influences living organisms

• ecological legislation

• climate

   5) TECHNOLOGICAL FACTORS – determine barriers to entry, minimum efficient production level and influence the outsourcing decisions

• country technological potential

• R&D expenses
• the rate of technological change
• Country technological structure according to the Kondratieff Wav

 

Report Section 4: Market Selection and Analysis

Ideal market characters: attractive market (affordable but not too much competition); target market (people who have tight curled hair); political factor (Ghana-business-friendly); investment (relatively low investment) and Natural-product preference.

Table 4.1

Market Comparison

	Pros	Cons
Great Britain  (London) -developed country	Target market: more than 1 million people Ghanaian and Nigerian people are a major community in London Affordable market	Too much competition Far away from Ghana (high investment)
Germany  -developed country	High income country; affordable market Best-cost natural product preference	Too much competition Far away from Ghana (high investment)
Nigeria  -developing country	Low competition pressure Target market: Nigeria is a country with both women and men with kinky hair Full of natural products that can help fulfill MVP products	Poverty
Kenya  -developing country	Low competition pressure Target market: most Kenya people have tight curled hair  Political factor: good trade relations between Kenya and Ghana Natural product preference Low investment	Uncertain purchasing power.

Hair care is extremely popular among Kenya’s working middle-class and also among the young population. The youth are becoming more and more aware of the value of their skin and their hair therefore, hair products are becoming almost vital to them. Furthermore, a rising access to internet, social media with African celebrities, magazines and TV promoted hair care in the mind of Kenyans. The quality of products is also growing with natural materials and a surge of professional hair care salons all over the country are factors that helped boost the hair care industry in Kenya.

Women who are the principal target for hair care products, have grown in terms of authority and income at their disposal. Equality of sex is still not present but women are progressively recognized into society and through their further independence and gain in confidence will lead to an increase in spending that will help raise value and volume sales in the hair care sector.

Market analysis:

a. Economic environment:

Kenya is a major economic country in East Africa. It has an important communication hub, an Indian Ocean port. The Economist Intelligence Unit (EIU) estimated the GDP of Kenya to grow by 5.5% in 2017. That’s a downward from the initial prediction of 5.8%, due to political instabilities during the presidential elections in August 2017. The BREXIT of the UK as much as Donald Trump’s presidency are also factors in this decrease of gross domestic product. Both countries are respectively the n°4 and N°1 export destinations for Kenya therefore, the closing their borders will profoundly affect the country’s economy.

The country’s growth will however stay steady at 5.8% between 2017 and 2021. Kenya is one of the most appreciated place to do business in as the country is ranked 92 out of 189 economies in the Ease of doing business report unveiled by the world bank. Nevertheless, an interest rate cap, set by the new Banking amendment act in 2016, will risk Kenya’s financial stability. The act capped interest rates (on saving accounts) at 4% above the previous central bank rate set by the central bank of Kenya (CBK). This act will limit lending to the private sector by banks. It will become harder for businesses to access credit as investors will prefer spending money on government securities rather than supporting small businesses. In the long run, the country’s productivity will be deeply affected as there are less and less economic activities from individuals and businesses. It’s important to note that Kenya has an unemployment rate of 39.6% which is the highest percentage in East Africa. The youth are the ones who suffers the most from this jobs crisis and limiting lending or making it difficult to small businesses will only accentuate the issue.

Inflation grew to 9% from 7% in 2017. This was due to an increase on food and electricity prices. The higher inflation is counterbalanced by the growing GDP per capita at 1143 USD however, the country must could be more productive with its youth and educated population.

Finally, the country’s currency, the Kenya Shillings (KES) is strengthening against the USD by 0.1%, the GBP by 16.7% and the EUR by 3.1% This increase is based on a huge capital inflow coming from tourisms and also a BREXIT that weakened the western economies. The KES will however remain vulnerable to global development such as further rises in US rates and uncertainties surrounding the state of the Chinese economy.

b.  Political and legal environment:

The government actions which affects the operations of a company or business. These actions that affect the operation of a company may be on local, regional, national or international level. The owners or managers of the company need to consider the political environment to measure how government actions will affect their company.

When we examine political environment of Kenya, we need to consider some subjects. Kenya’s political environment has been seriously developed by historical domestic tensions and contest related with centralization and exploitation of power, high levels of corruption, a more than two decades long period of structural examine and post-election force. The assent of the new structure in 2010 and in proportion to peaceful elections in March 2013 are milestones composing steps forward in Kenya’s transition from political crisis.

The Politics of Kenya actualize in a framework of a presidential delegate democratic republic, by way of the President of Kenya is both head of state and head of government and of a multi-party system with reference to a new fundamental law presented in 2010. Administrative power is implemented by the administrative branch of government, headed by the President, who chairs the cabinet, that is consisted of people selected from outside parliament. Legislative power is authorized specially in Parliament. The judiciary is independent of the administrative and the legislature.

c. Cultural environment:

There are 3 potential customers for MVP hair in Kenya:

• Style industries (Darling) in Nairobi: This a company that prides in the production of the highest quality hair additions. Darling Hair additions are an assortment of braids, weaves, extensions and wigs designed to satisfy the desire, taste and aspirations for beauty in every woman. Style industry use natural and high-quality materials that can be hardly outmatched by other competitors in the sector. It is also the first brand in Africa to introduce Kanekalon fiber (Hot water use). Style industries was created 26 years ago so they have a lot of experience and background. They are also present in 21 African countries.

•  Ashley Hair & Beauty Academy in Nairobi: Ashley hair beauty aim to create a space where you can feel relax and appreciated while experiencing true expertise. Whether it’s at the spa, the coiffure, executive barbershop or you simply want to buy a hairpiece at our stores, Ashley hair will provide an extraordinary experience
•  Amadiva beauty in Nairobi: Amadiva Beauty is the best Hair Salon in Nairobi, and they are ready to bring out your good looks. Whether you’re hoping to get ready for a night out on the town or want to look great for that upcoming event, They will help you in anyway. Their Hair Salon have a staff of professional experts to offer. They promise you a satisfying service. Their highly trained staff are here to tackle all your needs with a professional Styling that will leave you looking and feeling phenomenal.

d.   Competitive environment:

There are three main competitors in the Kenya niche hair-care market: Mega Growth, DARK AND LOVELY and TCB. The market is dominated mainly by local brands. Coincidentally, the main competitors Mega Growth is also the biggest competitor for MVP in its Ghana market. So, we can analysis Mega Growth’s position in Kenya market to decide MVP’s pricing and strategy. Besides, DARK AND LOVELY and TCB are two local brands that are popular in Kenya.

Table 4.2

Competitors Comparison

	Price	Product Characteristics
Mega Growth	Little higher than MVP	No-lye; natural; healthy
DARK AND LOVELY	Medium	Diversified products ranging from shampoo, conditioners to relaxer and colors.
TCB	Low	Cheap but smells bad; No actual stores;
MVP	Medium	Focused Natural products; Moisture Retention; Organic ingredient; Healthy

 

         MVP competitive advantage: MVP provides best-cost product, which means that providing high-quality product with reasonable price. It best fits customers who do not want to spend lots of money but still pursue high-quality healthy hair-care products. For example, compared with Mega Growth, MVP provides lower-price product with the same level quality product.

Report Section 5: Market Entry Mode

When selecting the market entry mode, it is important for us to align market entry mode with MVP’s strengths and weakness. In order to make better market entry mode selection, we established some main criterions: high level of control; Low investment; Knowledge spillovers avoided; Low image & reputation risk; Short time to market.

Table 5.1

Comparison Between Licensing and Franchising

	Pros	Cons
Direct Exporting	Gradual market entry Firms know who their customers are	Trade barriers Transportation costs Possible difficulties with distributors
Licensing	Quick, easy entry into foreign markets; allows a company to “jump” border and tariff barriers Lower capital requirement Potential for large ROI, returns realized quickly Low risk since you enter with tablished product and have fewer financial and legal risks	Control by licensee is low Licensee may become a competitor Intellectual property may be lost License period usually limited Poor quality management can damage brand reputation in other license territories
Franchising	Market entry with less financial, legal and political risk Economies of scale by ordering with owner and other franchisees Partners can see the business up-close, first-hand	Licensor has little direct control Licensee has lower profits than if it owned business or exported its own good

 

        Based on these criterions, there are three entry modes that we are considering about: direct exporting, licensing and franchising. However, after carefully made comparison between these three modes (Table 5.1), we select direct exporting as MVP’s entry mode to Kenya market.

Report Section 6: Distributors

MVP company is primarily interested in B2B proposals. Within a business-to-business expansion strategy, signing contracts with distributors is definitely the most convenient way for companies to develop. It is the cheapest way for MVP to expand internationally, as well makes good control to the marketing activities. On the meantime, MVP can quickly get into the new market using distributors’ reputation and contracts. The character of high reputation is definitely one of the most important factor for us to select potential distributors. Thus, we find three potential distributors: Lintons Beauty World, Goodlife Pharmacy and Uchumi.

Table 6.1

MVP Distributors

 

Distributors	Key Characteristics	Size	Current Suppliers	Contact Information
Lintons Beauty World	Physical store;  Professional beauty products distributors;	15 branches;  13 outlets;	Lancôme; Essie; Chanel; MAC; Dior; etc.…	Address: Kenrail Towers – Northern Wing 2nd floor, Nairobi Kenya  marketing@linstonbeauty.com
Goodlife Pharmacy	Convenience;  Physical store	30 stores in Kenya	Vichy;  La Roche-Posay;	Address: 2nd Floor, Empress Suites, Jalaram Road, Westlands Nairobi  +254703703777 info@goodlife.africa.com
Uchumi	O2O sales;  Supermarket chain;	27 branches in Kenya	N&L; Movit; Miadi	Address: KNTC Complex,  1st floor, Yarrow Road, Off Nanyuki Road Tel: 020-80200801-5

 

       The reason why these distributors could potentially be interested in partnering up with MVP Hair and helping MVP product:

• Lintons Beauty World: As the most professional beauty product distributor in Kenya, Lintons Beauty only provides several haircare products such as the Shea Moisture’s Coconut & Hibiscus Curl Enhancing Smoothie. By contract with MVP Hair, Lintons can diversity product line and provide better customer service.

• Goodlife Pharmacy: Same with most pharmacies, Goodlife provides skincare products. However, selling natural haircare products like MVP Hair products may make Goodlife separate from other pharmacies and good for its development. On the other hand, the best-cost character of MVP product suits Goodlife’s customer requirement.

• Uchumi: Uchumi is one of the largest supermarket chain in Kenya. However, most haircare products in Uchumi is not natural. Selling MVP products satisfies Uchumi’s customers especially customers who pursues healthier life.  

Report Section 7: Payments options and financial considerations

The currency in Kenya is the Kenyan Shilling. 1 Ghanaian Cedi is worth 23 Kenyan shilling. Both currencies are weak but the Cedi is stronger than the Kenyan Shilling. Furthermore, Kenya has its own central bank with its own regulation and control over the inflation and the value of the country’s currency. There about 42 commercial banks are represented in Kenya: ABC bank (Kenya), Bank of Africa, Bank of India, Citibank, Dubai Islamic bank…

This gives us an opportunity to compare the different bank and choose the one most advantageous for new businesses. Small businesses have a good access to finances in Kenya as the country lead the sub Saharan African region in lending to SME. African banking commercial for example offers some of the cheapest loans for small businesses with an interest rate of 14.63%. Moreover, they have 4 branches in Nairobi where we would enter our new market therefore they could be the perfect choice.

Apart from regular payments options with credit/debit cards and cash, online and mobile is extremely prominent in Kenya. Kenya population is about 48.2 million people and 31.7 million of them have subscription with one of the 3 major operators: Safaricom, Airtel and Telkom Kenya. Most of Kenyan businesses currently accept mobile payments with directives set by the credit card company. MasterCard for example might require that you collect certain data from the customer card like his statement address and his name.

Banks are also developing their mobile and internet platforms to provide simple and efficient services to their customers. We could set up online and mobile payments and allow our customers to pay directly online with their credit cards or with their mobile phones even at the store. By surfing on the new tendency of mobile and online payments to attract a young connected population (big part of our target) and appear has a modern business.

Report Section 8: Promotion Channels

For the existing business in a new market area, there are cost-effective promotion channels to success in business promotion. These promotions are one of the most important key elements to running a business. MVP promotes its business by getting the word out. But the most essential thing should be considered is to do it consciously.

• The first thing that need to do is promote the business whenever it is communicated. MVP has to has its own business card involves the business name, its logo and contact information. Also, it may be added some links such as Facebook, Twitter, Instagram and Pinterest pages.

• Second thing is the outdoor advertising, getting publicity is a great way to reach new customers. In that way people can often view the product advertising per day. These can be public transport vehicles or billboards.
•  Third thing is to use social media to promote the business. Social media such as Pinterest, Facebook, Twitter, YouTube or Instagram are one of the widest and effective way to promote the business. For example, Pinterest is the place to sell your products online. With a good shoot and right keywords, your customers can pin your products to build their own wish list to purchase. Then, Facebook is such an advertising platform. It provides many targeted choices for running paid ads. One is these choices is Facebook Custom Audiences. Thanks to this choice, MVP can advertise its products ads. And also, there is also one more choice which is Facebook Shop Section, it is easy way to be recognized and sold on Facebook.
• Furthermore, promoting the business by blogging and writing articles are also another way that provides free advertising and builds positive word-of-mouth. It attracts customers and excite attention of media. These ways may be blogs or websites, magazines and newspapers.
• Last but not least, giving out freebies as business promotion are the common way that the people all familiar. For instance, 20 people to buy the MVP’s products will receive a free product or discount. In other words, giving gift cards are also another way to boost the sales in a new market.

Unfortunately, products do not sell themselves, however there are several ways, as we see, to boost the sales and recognition.

Report Section 9: Marketing
Hello my name is Krystal, working with MVP Hair and I am here today to help with all your headaches caused by your very own hair. MVP hair products help with silkiness, body and shine all at once. It also is an all in one product meaning, moisturizer, conditioning, revitalizer and repairing during all stages of the hair. What else can you ask for from something that actually works. This product has been successful in some African countries but now the expansion to Kenya is needed. Let us help you love your own hair. Our hair product brands have an excellent track record, along with many years of experience that make us a reliable source. Don’t be the women wishing to have your friends’ hair, be the one who helps those around you take care of theirs. We are aware that you have tried many products trying to take care of your hair, but let our product for itself and use it. Make sure to reach out to the following, Lintons Beauty World, Goodlife Pharmacy and Uchumi and enjoy yourself a life changing experience for your hair. Let’s get this taken care of sooner than later. Have a great day!

Report Section 10: Certification

Every product exported to Kenya need to be certified. Certificate of Conformity (CoC) is needed which is authorized by Kenyan Bureau of Standards (KEBS). To obtain CoC, there are two processes: Product Registration Process and Registered Products Shipment Certification Process.

• Product Registration Process:

Step1: Submission f Registration Application Form to PVoC Agent by the Exporter

Documentation needed: Product Data Sheet and/or Product Description;

Product Technical Specification; Manual Operating Instructions; QMS Certificates, Conformity Marks, Safety Marks, National Approval; Third Party Test Reports/Authenticated CB test certificates; Distributorship/Dealership Agreement

Step 2: Review of Registration Application by the PVoC Agent

• Registered Products Shipment Certification Process:

Step 1: Submission of Request for Certification (RFC) –usually processing within 3 days from the date of receipt of the RFC

Documentations needed: RFC Form; Valid Statement of Registration containing goods to be shipped; Proforma Invoice and Import Declaration form (IDF); UCR number.

Step 2: Consignment/Shipment Inspection by PVoC Agent Appointed Inspector

Step 3: Consignment/Shipment Testing

Step 4: Issuance of the Final Certification Documentation by the PVoC Agent

Fees: Verifications fees: 0.45% of FOB value subject to a minimum of USD 250 and a maximum fee of USD 2675. Licensing fees are calculated on a case-by-case basis.

Report Section 11: Logistics

Technology in Kenya is growing, it is a country who is trying to catch up to modern day and recognizes innovation growth. As of 2016, there is 26% of internet users, and by the rate, that number has definitely gone up. This means that as a company we need to take advantage of internet use because of it being cheaper for our company. We have decided that we are going to authorize the use of mobile or online payments. It makes it easier for both company and client due to it being able to be done right at home or in office and a cheaper expense for our company. Two examples that would work for international business is Swipe and Transferwise. These two are better than, for example PayPal, they have lower fees for international business and are easy use. Kenyans already use online payment methods for paying their house rents or making annual land rate payments so adding along buying services or paying for services online, it becomes a convenience.

Table 10.1

Comparison Between Air Transportation and Sea Transportation

	Price	Speed	Reliability
Air Transportation	High	Fast	High
Sea Transportation	Low	Medium	Medium

 

        The first thing that is extremely important to consider when taking a new product to a new market is making sure there is trust between the local distributor and the firm. The best and most convenient way for these products to reach overseas is through air transportation due to it getting delivered at a reasonable time, however the pricing on air transportation can be quite expensive. It is almost double the price for sea transportation but on the contrary, takes about a month longer than air transportation. I believe while we are getting a location out in Kenya and settling business tactics, shipments can be made which allows us to still get things done. Sea transportation seems to be the best source because a lot of product can be sent at a reasonable price. Sea transportation service includes ship loading, freight, bunker surcharges, war risk, currency adjustment factor and peak season surcharges and insurance. To allow us to know what products are high demand we can also set up a website that people can pre-order what they would want in advance. Setting up a website can also allow us to expand worldwide and give us more business.

Report Section 12: Human Resource

To hire sales representatives, agents, managers or sale representative, utilizing a sale representatives, managers or agents are one of the most important key part of MVP’s sales strategy. Hiring proposals have been made with the aim of increasing the

efficiency of the company. However, it is not so easy to find good sale representatives to boost the sales. The representatives that MVP chooses need to be go-getters who are comfortable, confidential in front of people.

There are some websites such as career- minded sites including LinkedIn For MVP, it is necessary to hire a representative who is more social than others. In this way, those people would make for good sales reps, especially since a sales representative needs to be a talkative person.

Getting a guidance to someone can be one of the best ways to gain a sales representative. The first thing that should be done is to do a search for sale representative, account executive, business development, and see who comes up on website such as LinkedIn.

There is one point that we need to consider is to not miss existing employees as a guidance source to hire your first sale representatives. According to the researches, some companies pay a guidance bonus to existing employees who refer a new hire. In small businesses, this bonus averages from $100 to $500. They make the bonus payable after the new hire has made it through the first 90 days or other probationary period.

The need to ensure and enhance employee productivity is a reality no business can ignore. If you run a business you’ll want to lean away from doing the usual and routine when you can. However, it’s certain that you’ll face with factors that may weaken or extinguish employee motivation.

Here are some points that enhance employee productivity,

1. Creating a family atmosphere: is always one of the best effective way doing your business in a friendly/ family atmosphere, in that way employees productivity boosts.

2. Training the employees: helps employees learn specific information or skills to develop performance in their current roles.
3. Giving small promotions: Everyone loves the promotions even employees, you can make your employees happy in your business and it brings to a successful conclusion. In that way, it may affect the business productivity.
4. Congratulating the success, no matter how small: “Rather than emphasizing the things an employee may have done wrong or poorly, I prefer to focus on the things that they did right — being proactive in meetings, showing enthusiasm, arriving early and staying late when needed, etc. By turning this missed opportunity into a learning experience, you keep the passed-over employee engaged and motivated.” ~ Zach Cutler, Cutler Group

References

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