Handicraft Product

Supervised by :Ines Ben Rhomdan

Presented by: Samira Kaleb
Fatoum Nizar
Insaf Abdourahman
Rahma Abdourahman

2015/2016

Table of content (Mini business plan cc)

Chapter 1: DESCRIPTION OF THE PROJECT IDEA

1) Description of the business idea concept
2) Description of the problem
3) Description of the target group
4) Description of the solution (project idea)
5) Description of the products and services
6) Description of the competitive advantage
Chapter 2: MARKET ANALYSIS
1) The growth of the industry and market
1.1)
1.2)
1.3)

Demographic trends
Social trends
Technological trends

2) The size and profitability of the industry

3) Life cycle of the industry and market
4) Description of the industry concentration (are there just few large companies or many
SMEs)
5) Market description: five porter forces (competition and barriers to entry/threat of new
entry/bargaining power of the customer / bargaining power of supplier /competitors growth
rate)
6) Survey analysis: (potential of the market)
7) SWOT analysis
Chapter 3: MARKET MIX
1) product/services
1.1)
1.2)
1.3)

Feature
Benefits
Product life cycle

2) Price
2.1)
2.2)

Method of pricing
Prices of product/services

3) Place
3.1) Distribution channel
3.2) Location
4) Promotion

Business logo
Unique selling proposition
Business card
Website
Pages on social network
Advertising
Promotion
Personal selling
Public relations
Activity 9(marketing research and marketing mix)
Promotional budget (activity 11-marketing research and marketing mix )

Chapter 4: BUSINESS MODEL

1) Mission statement
2) Customer segments
3) Value proposition
4) Distribution channels
5) Customer relationships
6) Revenue streams
7) Key resources
8) Key activities
9) Key partnerships
10) Cost structure

5. APPENDICES
Buyer intention survey, logos, brochures, website prototype, business cards, industry studies,
blueprint and plans, maps and photos of product and location ,magazines or articles, letters of
support from customers, market research studies , survey results.

Background
Nowadays, every country is promoting and supporting its handicraft product so that they can
deliver properly the image of the culture and tradition of their country. Handicraft products
are also known as craftwork or simply craft, are a type of work where useful and decorative
devices are made completely by hand or using only simple tools. Usually the term is applied
to traditional means of making goods. The individual artisanship of the items is a paramount
criterion; such items often have cultural and/or religious significance. Items made by mass
production or machines are not handicrafts.As the definition itself show us the handicraft
product are made through direct resource means with the use of the hand and this is what is
done by most of illiterate and educate unemployed women in Djibouti. The artisanal product
is somehow reflecting the norm, value, and the history of the country, since Djibouti is a
country of tourist so that kind of activity may help the economies of the country growing fast
especially commerce industry. And this might increase the image of Djibouti around the
world since we deal with the expatriate.
The importance of the project
Djibouti is a developing country that has witnessed fast economic growth and developments,
due to that reason the country is encouraging more and more its population to develops and
practice a variety of activity so that they can contribute to enhance the soundness and the
economy stability of the country. The Government took the initiative to encourage the idea of
the youth and lead them to become entrepreneurs so that everyone with an innovative idea can
have its own business by creating jobs to the unemployed citizen and decrease the
unemployment rate of the country, which is a big step for the development. Djibouti is known
for her divers of culture and tradition that attract most of the tourist, which is another factor of
development the countrys tourism potential is based on its geological heritage as well as its
rich and long-standing traditions and culture. The Djiboutian people practice handicrafts,
which is another way for them to demonstrate and interpret the Djiboutian culture and
tradition to the tourist and expatriate. The homemade product is another activity that the
government and the President itself are encouraging and financing, thats why we come-up
with the idea of promoting the Djiboutian handicraft so that one day they become one hand
that deliver the culture and tradition of our country. We are looking forward to that idea with
the hope that the Djiboutian handicraft becomes well known around the world thats why this
project is important for us to conduct it.
The objective of the project
Our objective is somehow the objective of the country, promoting the handicraft Djiboutian
product, there are some other objectives flowed by the promotion:

Let people be aware about the effective workers on handicraft that Djibouti has
Gather all the artisan together and make them understand the importance of the
handicraft for the country
Find a place to promote all the handicraft made by the artisans
Promote around the nears country ours culture and tradition

Help the handicraft lover to learn how to do it and support the local artisans.

CHAPTER 1: DESCRIPTION OF THE PROJECT

The description of the project ideas is mainly defined as A thought or collection of
thoughts that generate in the mind. It can be an idea that is usually generated with intent,
but can also be created unintentionally. Ideas often form during brainstorming sessions or
through discussions.
1) Description of business idea concept
To come-up with a business idea you have to take in consideration some aspect such as (what
the consumers would like to have ?, is the product that you make is desired? ,what is the
delivered value of the product?, where will the place of your company? and the reason why
you are willing to do the project?) . With the answer of those question it will be easier to
answer to the six W of the marketing analysis, we brainstormed and come-up with promoting
the handicraft product of Djibouti that give an answer to the six W (who ,what ,where ,how
,when why). Our business is selling homemade accessories, interior designer and some
cultural clothes that is a mixed of art and culture with a variety of design we are trying to
show the tradition and the culture of Djibouti in another dimension by promoting the art of the
local Djiboutian artisan.

2) Description of the
The reason why we come-up with this idea was to resolve the problem that the Djiboutian
artisan are facing such as many girls and women that are working in the fields of homemade
selling are working informally and without any formality from the government. As well as
their existence is threatened in the market they cannot go forward with their business just
because, they do not have any information about the market, the customer and segment, like
they do not heavily invest on it.

3) Description of the solution

According to buyers, handicrafts are products significant to the country where they are
made, due to skill, tradition, culture, and local materials used. In order, to deliver a
positive image of the tradition and the culture of the country we are trying to promote the
work of the girls and women that work in the handicraft field. By making their work well
known and used by expatriate, tourist so that when they go back to their country they kind
carry our culture and tradition with them. That is why promoting that kind of activity will be a
big investment for the development of the country itself and resolves the problem faced.

4) Description of the target group

When realizing a project idea the first thing to do is targeting who will be your consumers.
Before we precede the survey analysis our target were based on the expatriates (Foreigners,
Tourist), senior and junior (15-45 years old) of local people that are interested in the
handicraft products. In order to collect data, a sample survey that consists on gathering
information from a sample by the intermediate of the questionnaire is carried out so that we
can identify who are really our targets. The questionnaire has been filtered by a filtering
question in the beginning, by asking the candidate whether if the know the handicraft product
or not, therefore, people who never use handmade product will not participate in the survey.
This ensures all the respondents who answer the Questionnaires have purchased handicraft
product. We agreed with our supervisor, that the target size of the respondent sample is
around a two hundred consumers. This is enough answer to ensure the objectiveness of the
results. Here are the answers of the respondent after we did the survey and preceded the
elimination of the two hundred samples it comes to 161 responders that are interested in our
product.

Figure 1: the responders who are familiar with the handicraft product

In the survey, interviewees were asked to answer whatever or not they are familiar with the
handicraft product this question was asked in order to know if the consumer are know or not
of the product that we are going to offer. Out of the 161 responder that said they want to have,
our product 54% said that they are familiar with the handicraft product.
Figure 2: the nationality and the frequency of buying the handicraft product

The result above show the frequency in which the responders are buying the handicraft
product, this question were asked in order to know in which frequency the responders are
buying the product and which nationality do buy it, this will help us to know who really are
our target and in which time we have to provide the product to them. The Djiboutian people
are the one who buy the product everyday with a percentage of 50%, flowed by those who
buy in frequencies of one time in a week with 70% of responders, afterward we have the
French who buy the product everyday with a percentage of 20% and 19.5% of them buy it 2-3
time in month only 18.5% said they buy it in 2-3 per year. The other nationality are not that
much involved, as the result itself show the relation between this two question is significant
and we have to target the Djiboutian and the French people
Figure 3: the age and the responders who want to have the handicraft product

In this figure above the analysis determined the age of the responders that want to have the
handicraft product. Two kind of age are important to target those who are aged between 18-30
years and those who are aged between 30-40 years those responders out of the 161 samples
are interested in the product. Therefore our target will be mostly those who are aged between
18-30 years
Figure 4: the gender and the responders who want to have the handicraft product

In the figure above the analysis determined the gender of the responders that are interested in
the product.33% out of the 161 that said yes are men and 31% are women, flowed by those
who want to have in future 25% are men and 29% are women so our target are mostly the
men.
Figure 5: matrimonial status and the responder who want to have the handicraft
product

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the result in the figure above show us that the responders that are not married are the one who
are mostly interested in the handicraft product with a percentage of 59.4% , 79% of them said
that they like to have , only 69% said that they would like to have but depend. Flowed by
those who are married with two kids with a percentage of 14% .Therefore our target are those
who are single and those who are married with two kids.
Figure 6: The location and the responder who want to have the handicraft product

In this figure the result show us the location in which we have to focus mostly the people who
live in Boulaos are the one who want to have the product with a percentage of 48.4%, flowed
by those who live in Rasdika with a percentage of 26.6% and then with a difference of 1% we
have those who live in Balbala. Therefore, we are going to target those who live in Boulaos as
well as the other.
Figure 7: the salary and the responders who want to have the handicraft product

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In order to fix the price of our product we have to target those who have the ability to buy and
those who are not so that we can provide to both of the consumer a price that satisfy both of
them. As the result show, those with a salary above210000 fdj want to have the product with a
percentage of 28% flowed wit those who have a salary under 50000 fdj. Therefore, we are
targeting the individual with a salary above 210000 fdj and under 50000 fdj.

To sum-up the analysis based on the 161 out of the 200 responder who said that they
want to buy our product, we identified clearly, who we will be our target they are:
first, men and women that are aged between 18-30 year, while taking in consideration
the other age. Secondly, we target those who are single and those who are married
with two kids, thirdly, we target the location of those who live in Boulaos as well as
the other (Balbala, Rasdika) and finally, the individual with a salary above 210000 fdj
and under 50000 fdj.

5) Description of the product and service

Increasing the awareness of the customers and respond to the demand of the interested
customers is our primarily goal flowed by improving the handcrafts business with more
formality and make it internationally demanded as well as fulfilling the desire of customers by
providing :

Accessories ( earrings, necklaces, bracelets )

Hand bag
Interior decoration
Djiboutian clothes (boubou/shid)
Memory table of Djibouti
Shoes made from leather

All those product are handily madden the accessories are made through (pearls, button and
balls) for the home interior design they are made from bottles (different form and size of
bottles) they are mainly designed to serve as a pen, pencil carrier. For the other product, the
artisan makes some of them and we try to promote it.
6) Description of the competitive advantage
Competitive advantage is very important to know even before starting any kind of business, it
help the individual to:

Define itself
Define its competitor
Conduct a SWOT analysis
Differentiate the price and the product
Conduct a marketing strategies

A successful entrepreneur must identify and develop a sustainable competitive advantage in

order to compete with all other business. Competitive advantage is more defined as the

12

surplus that an entrepreneur own in difference of its competitor it is mainly what differentiate
a business from other competitors. In our case our competitive advantages are:

The variety of product that we are offering to the consumer

The distribution channel that we use to deliver the product to our consumer
The price; we are selling at competitive price which is more cheaper than our
competitor
The quality since our product are made handily the feature of the product is a high
quality product

For the future we are planning to :

Increase the product diversification

Make the product accessible
Make a refund policy
Once on the year make discount

All those competitive advantage that we listed are done without using the responses of the
survey that we have done, here is the answer of the 161 responder out of the 200 samples:
Figure 8: what the responders like in the handicraft product

In this figure above, we studied what the consumer like in the product when buying the
handicraft product in order to determine our competitive advantage, after we analyzed that
most of the responders out of the 161 that said yes are interested in the quality with 73.3%,
the price with a percentage of 41% and only 30.4% are interested in the personalized design.

13

Figure 9: what we offer as advantage and the responders who want to have the
handicraft product

In the figure below, the analysis determined that out of 161 responders who said that they
want to have the product are attracted by the quality the price and the diversification of the
product as we already said, those factors are our competitive advantage, and this is what
differentiates us from our competitors.

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CHAPTER 2: MARKET
A marketing analysis is a study of the dynamism of the market. It is the attractiveness of a
special market in a specific industry. Marketing analysis is a business plan that presents
information regarding the market in which you are operating in. It deals with various factors.
1) The growth of industry and market
It is important to evaluate the growth of the industry and market it is useful to understand and
analyze the target of our product and what factors can influence the demand.
A further research is necessary to be done in order to gain information about any growth or
reduction in the demand.
Our business belongs to commerce industry. The commerce industry of Djibouti is still a
baby as we are still welcoming expatriates investors in the other hand the president itself is
encouraging the entrepreneurship or any kind of starting up business. The current businesses
are profit making and we still expanding this area of business that is growing day after day.
Our products belong to the industry of commerce, Djiboutian handicraft consist of
customization and make it fit with Djiboutian culture.
Our key segment markets are the expatriate and local people that are interested aged above 15
years old. The leaders of supplying materials are the Arabic importer and the other traders
1.1) Demographic trend
Djiboutis population is increasing year to year and this might help and be benefits for the
businesses, especially more teenagers and seniors who are leading the market.
The demographic of handicraft business growth might be high since the market leaders are
men and women aged from 18 years old to 30 years old. As well as the expatriate who are the
foreigners who comes for working and the tourism. In addition, there are different tribes in
Djibouti and this can makes an opportunity based on the different cultures that exist. The
increasing of the population is helping and improving the cycle of handicraft and this might
evaluate the project.
1.2) Social trends
Djiboutis culture are increasing and growing because of the enlargement of different culture.
Many people are coming from abroad (foreigners) and they get interested in Djiboutis
cultural and traditional product; these factors give the willingness to improve and promote the
artistically product. Especially Djiboutis handicrafts product such as the marbles (decoration)
are increasing. These show that people start being interested by Djiboutian product, if we
compare the evolution of handicraft in Djibouti, its increasing year after year, social trend

15

affect this project in terms of evolution, what people desire such as traditional clothes,
decorations, accessoriesect.
1.3) Technological trends
Technology plays an important role in the handicraft project, since its improving the
awareness of different cultures product and how beautiful it is. People can get information
trough media such as internet, television, radio etc, and this increase in fact that everyone
know about our product, and being interested on it. Technology is helping to advertise or a
kind of sharing information on what Djibouti is able to do.
2) The size and profitability of the industry
As we describe that we belong to commerce industry, is too important to know the size and
the profitability of the industry for the assessment of the business. Studying the industry
brings more opportunities to sell our product and this means that there is a big chance to gain
profit. Since the commerce industry are growing and handicraft activity are being potential for
creating profit. The size is not big as the foreign countries but Djibouti is still a developing
country and its industry sector increase from 12% to around 13% that is why it is important to
know the growth of the industry.

3) Life cycle of the industry and the market

Commerce industry is a growing industry while the product are appearing and developing,
since people are being interested on culture product. Woman and girls represent the 6/10 the
poorest humans and the majority are the girls who represent 2/3 because they are not
studying. Therefore, the girls represent the market of Djibouti especially for handicraft. Some
institutions such as the PNUD and other institution give helps to those woman and girls in
order to increase the market. As described commerce industry are lead it by woman, and
around 70% of woman are leading the handicraft market but informally and now with the
development and the different trends commerce industry and handicraft market are growing.

4) Description of industry concentration

Industry concentration describes how many competitors are in the market and what the market
share is for competitors by analyzing how efficient are they, and how are they affecting your
business.
Competitor 1
The name of Sona art
the business?
Direct
competitor
What is the
address
or
location?

Competitor 2
Johayna

Competitor 3
Magasin
east
Africa

De gaule road

Rude
Marseille

16

de

Rank
the
location based
on traffic flow, Good
excellent
Excellent
access,
parking, other
businesses,
and number of
customers in a
time period?
How
many 5 employees
3 employees
6 employees
employees do
they have?
How effective
are employees They have a Effective employees Effective
do they have?
good numbers relationships
employees on
of workers
communication
How effective
are employees
in doing their
job?
What do they
charge
for
their products
and service?
Do they have a
refund policy?

Effective
worker they are
specialized in
each field
They charge a
high price for
their products

The employees like

their job and they
know how to deal
with these businesses
They charge a high
price

Their like their

job
very
motivated

They
dont They have refund
have a refund policy
with
the
policy
biggest relations or
high clients
What type of They
are They are targeting
customers are targeting
the the expatriate
they targeting? expatriate and
the
basically
aged people
What type of Business card
Business card
advertising
does
this
business use?
Do they have No
No
an
online
presence?
Social media
What is their Diversification They sometime do
competitive
sold to attract client
advantage?

They dont have

a refund policy

17

Their price are

moderately high

They
are
tareting
the
expatriate and
tradional people
Business card

no

Quality
and
moderate price

5) Competition and barrier to entry

It is important to know the competition that our industry face and what are the barriers of
entry, by using Michael porters five forces an industry can be analyzed and determine all the
information. Scanning the industry is more important in order to see what the stronger forces
is and what the lower one, the stronger is the forces the lower the price and this is not benefic
to earn greater profit.
This method is one of the most important business tools:

THE FIVE FORCES OF MICHAEL PORTER

THREAT OF NEW
ENTRY
BARGAINING
POWER OF
CUSTOMER

BARGAINING
POWER OF
SUPPLIER
COMMERCE
INDUSTRY

THREAT OF
SUBSTITUTE
PRODUCT

COMPETITOR
RIVALRY

5.1) Rivalry among existing firms:

Commerce industry is increasing but handicraft market is starting growing, the competitors
are not competing for the market share because there a few handicraft corporate ,so there are
not a high rivalry among existing firms.
5.2) Threat of new entrant:
When there is a new entrant means there is a new capacity to gain market share. And the
threat depends on how the existing firms are going to react or come with a new strategy to
avoid that and some barriers, a barriers is a the biggest level that avoid company to come in
your industry or gain a market share. There are some of the possible barriers to entry such as:

18

Product differentiation
Cost disadvantage
Economy of scale

5.3) Threat of product substitute:

A substitute product is a product, which is different from our project, but it can satisfy the
customers with another product. For our case, many businesses can satisfy our customers so
the threat of product substitute is high, means the higher the substitution the lower the profit.
5.4) Bargaining power of customer:
Our product is a product that follows the market price especially a moderate price which can
be purchased by the population and foreigners too.
5.5) Bargaining power of supplier:
Handicraft product does not have many suppliers so this may be difficult for our business and
we do not have more options, we cannot switch the smaller the number of suppliers the lower
the profit.
FORCES RATE
Forces

Strategic significance

Rivalry among existing firms

High

Threat of new entry

High moderate

Threat of product substitute

High moderate

Bargaining power of customer

Low

Bargaining power of suppliers

High

6) SWOT ANALYSIS
Swot analysis is a tool that allows seeing the strength, opportunity, weakness and threaten
each business have to be analyzed by this method in order to increase the opportunity, and
improve in the coming year.

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SWOT ANALYSIS
Strengths of handicraft business:

few materials
expensive materials

Require
low
capital
investment
Attractive business
gain profit
dont require a lot of labor

Opportunity of handicraft business:

Weakness of handicraft business:

Threat of handicraft business:

increase of population
enlargement of culture

Exist of product substitute

7) Survey analysis
Survey analysis is analyzing and scanning the market in order to determine who is our target
and how many people are interested in our product, other study such as the nationality,
gender, revenue etc are done
Therefore, the analyses are made on 200 samples by using the sphinx IQ to determine the
answer of the responders that will help us to take the final decision for the project.

Figure 10 : the gender of the responders

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In this analysis we noticed that most of the responders are men which represent 52% but at
the same time woman are playing an important role in the case that their part are near to
mens percentage. So we take on consideration both man and woman because they are
important in this business.
Figure 11: the age of the responders

As the analysis show most of the responders are aged from 18 to 30 years old, which
represent 63.5% followed by 30 to 40 years old which represent 17% then 14 to 18 years old
represent 7.5%. the others are not playing an important role as strong customers, so our target
are between 18 to 30 years old.

21

Figure 12: the location of the responders

Our most customers are those who live in boulaos that represent 49% and balbala which
represent 30.5% the rest are overall the expatriates who lives in Ras dika represent 20% .So
for our analysis most of our customers lives in boulaos, which represent 49%.
Figure 13: the statute matrimonial of the responders

After analyzing, we conclude that most of the customers are bachelor without children which
represent 68.5% and the rest are having the same percentage 8% such as bachelor with on
child and married with one child. Married with more than 2 childrens represent 9.5% but
overall we stand on the highest score which is 68.5%.
Figure 14: the nationality of the responders
N
%

Djiboutia
n
59.5%

Frenc Yemen belg India Sudanes America Senegale Cong Canadia

h
e
n
e
n
se
o
n
11.5
7%
2.5
1.5% 1.5%
0.5%
1.5%
0.5% 0.5%
%
%
As the analysis, proved Djibouti is a country that regroups different nationalities, but the most
consumers of handicraft product are local people who are interested and some foreigners.
Djiboutian represent 59.5% which is the highest rate followed by French nationality which
represent 11.5% , we can conclude that French customers and Djiboutian people are the most
important to conduct to handicraft project, an still the rest nationalities important because
even if they are dont familiar with it.

22

Algeria
n
0.5%

Figure 15: how many people knows handicraft products

Most of people know about handicraft products, they already bought it, and their share
represents 49.5%. some people already here about these products and their share represent
20% and some of them doesnt know but they are interested and their part represent 9.5% and
finally some persons doesnt know about these products and their part represent 14%.Overall
the most and highest level are those who already purchased handicraft product.
Figure 16: the relation between the awareness of handicraft product and gender

In this part of analysis, we make the relation between people who know about handicraft
product and the gender from the entire 200 questionnaire.
Most of the result that purchased handicraft product is men that represent 51.9% and those
who hear about these products, are man represent 13.5%.
At the same time, we have the share of woman who purchased handicraft product represent
47.4% and people who hear about and are woman too represent 27.4%. the rest of both is not
an important score, but we still can noticed that both gender are interested and we can not
ignore this result.

23

Figure 17: the relation between awareness of handicraft products and if they are going
to buy the product in the future

The analysis show that 71.9% of respondent are people whom already purchased and they are
going to buy it in the future, followed by 46.2% people who already purchased and they may
buy our product. Then we have the customers who respond I already hear about it and will
buy our product in the future which represent 18.8% and the one who may buy represent
30.8%. We also have the respondent that respond that they already purchase and why not
purchase it again which represent 41.8%. These are the most concentrate analysis.

24

Figure 18 : the awareness of the product and what should be offer to the customer

This relation prove that most of people who respond yes for purchasing our product in the
future want a high quality which represent 37.4% and also chose a moderate price which
represent 35.1% and also diversification of products which represent the most highest score
45.3% followed by the color 40.6%.
All the quality is important but the most important are the diversification, quality, and price.

25

Figure 19: The willingness of the consumers to buy handicraft products and if the buy it
online

Most of the respondent answer no specially the consumers who are going to purchased in
the future our product and this represent 33.8% and people who answers yes represent 27.7%.
40% are those who may buy our product and which are familiar with the online shopping.
Figure 20: the consumer revenue

Most of people have revenue, which is below to 50000 fdj, which represent 35.5% Followed
by 17.5%, which represent the salary more than 210000 fdj followed by 15.5% who are the no
respondent. Then 13.5% represent the salary from 60000 to 100000 fdj Nine percent, which
represent the salary from 110000 to 200000 fdj.

26

Figure 21: if the responders know the product and the location they live in

42.5% of people who are willing to buy our product are living in Rasdika, then 31.5% are
living boulaos and finally 26.2% are living in balbala. And people who may buy our product
represent 10% people who live in Rasdika then 19% who lives Boulaos and finally 26.2%
who lives a balbala.
Figure 22: how the consumer would like to buy the handicraft product

Most of the consumers would like to buy the product from in-house selling that represents
52.5% followed by supermarket, which represent 23%. Then we have direct selling which
represent 14.5% and finally in the shop 5.5%.

27

Figure 23: how much the consumer will spend to have the handicraft product

According to our analysis, people are willing to pay different price for each product:
Accessories:

Decoration stuff:

-37% will pay 500 Df

- 13% will pay 500 Df

-9% will pay 500 Df

-22.5% will pay 1000 Df

-30% will pay 1000 Df

-23% will pay 1000 Df

-10.5% will pay 2000 Df

-13.5% will pay 2000 Df

-27% will pay 2000 Df

-5.5% will pay 2500 Df

-13.5% will pay 2500 Df

-15% will pay 2500 Df

-10% will pay 3000 Df

-12% will pay 3000 Df

-11.5% will pay 3000 Df

Handbag/Portfolio:

Djiboutian memories board:

-14.5% will pay 500 Df

-9.5% will pay 500 Df

-19.5% will pay 1000 Df

-14% will pay 1000 Df

-16% will pay 2000 Df

-18% will pay 2000 Df

-12.5% will pay 2500 Df

-14% will pay 2500 Df

-16% will pay 3000

-27.5% will pay 3000 Df

Shoes made based on lather:

This analysis will help us to fix the price of our product according to what our potential
customer are willing to pay.

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Figure 24: which media the responders flow the most

Most of the respondent use internet and this represent 82% followed by the television, which
represents 61%, then the people who use the newspapers represent 45%. In addition, we have
radio, which represent 35% these was what people are following.
Figure 25: how to contact the consumer

After seeing what people are following in order to be in touch with them customers use cell
phone, which represent 61% followed by, email which represent 53.5%. Then as we saw
people frequently, use internet and this represent 42%and television 17%.

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CHAPTER 3 : Marketing Mix

Studying Marketing Mix involve putting the right product in the right place, at the right
price, at the right time.
1) Product or Services
the product is defined as anything that can be offered to a market for attention, acquisition,
use, or consumption and that might satisfy a want or need, while the service is defined as a
form of product that consists of activities, benefits, or satisfactions offered for sale that are
essentially intangible and do not result in the ownership of anything. Determining the product
and service is very important to study in any kind of business.
1.1Features
It is the function of a product, which gratifies a particular customer need, and its hence to be
seen as the benefit of owing the item. In business, it is one of the most distinguish
characteristic of a services or a product that help boost the appealing of potential buyers.
1.2) Benefits
A value is the difference between a prospective customers evaluation of the benefits and
costs of one product when compared with others. A benefit is the little difference that a
company has over its competitors when perceiving the value of its products. Having a benefit
is the aim of every business and especially in an industry where the competition is very rude.
The main benefit is that both sides are profitable; we are providing the lowest
priceconsidering the market and we are locating our shops in the nearest place to permit the
customer to access our products easily.
1.3) Product life cycle
A product life cycle is the process of managing the entire lifecycle of a product from
inception, through engineering design and manufacture, to service and disposal of
manufactured products. We are in the growing life stage because we are the first company
that will take legal steps to enhance this area of business in Djibouti. Like already mentioned,
people that do substitute product are already in the market but they are informal.
And according to the survey, our potential customers choose to have diversification, a better
quality and affordable prices on our products.
2) Price

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2.1) Method of pricing

The amount a customer pays for the product is very important as it determines the companys
profit and survival. When setting it, the marketers should be aware of the customers
perceived value for the product. Considering the three basic methods, which are :
the market skimming
the market penetration
the market neutral
The reference value and the differential value must be taken into account. We are using the
market-based pricing method because we want to be the low-cost provider without under
pricing our products so that the benefit or the quality do not be underestimated or classified in
the bad quality products category. We are adopting this method so we can penetrate or enter
the market and secure the growing sales get a high market share.
2.2) Prices of Product or Services
Adjusting the price has a profound impact on the marketing strategy but also it will affect the
demand and the sales. We determined the prices according to the outputs and time used to
produce a specific product. We made all our accessories and we took time in order to have
great outputs. Based on that, we determined the lowest possible price taking into
consideration the market prices and the efforts made by the team members.
3) Place
3.1) Distribution Channel
This refers to providing the product at a place, which is convenient for customers to access.
Various strategies such as exclusive distribution and franchising can be used to complement
the other component of marketing mix. There are three levels of channels to reach customers
such as:
the zero level
the one level
the two level channels
Considering this, the zero level channel process, is consisting of the direct distribution of
products that fit the best our business or in another words, we are face-to-face selling. We are
also providing social network page and website in order to show our products. We have
several customers and we are thinking about selling to them from home. The in-house sales
is the most efficient cost and the most suitable to our business as a start-up according to our
survey analysis.
3.2) Location
A location is a physical space whereby you will be able to sell your product. It is very
important to have a location in a business especially the nearest place to your target market or

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segment. Our place will be located in the town since most of the customers are living in
Boulaos the place will be in section 2 boulevard 19 avenue 24. We are trying to be in the
nearest place to our customers so they can reach us easily. The place that best fits the
customers is somewhere in the section 2.

4) Promotion
4.1) Business Logo

A is our logo, and it describe the first letter of a handicraft Artisanat in French, since all
the businesses that deal with craft doesnt have a logo that reflect and design Djiboutian
culture, thats why we made a mix between the letter and the traditional design.

4.2) Unique selling proposition

Our unique selling proposition is in french RISS-ARTISANAT au service de vos

dsires
This shows to our customers that we are available every time to serve them, au service de
vos dsires means that we take into consideration what they want and their feedback. This is
very important because no one from our competitors is doing that.
4.3) Business card
We use business card as promotion in order to let people get our address and be connected
with us. This may help our project to increase the awareness of our company towards our
Djiboutian market.

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4.4) Web site Link

http://riss-artisanat.blog4ever.com/recherche?q=accessoires&id=815454
4.5) Page on social network link and overview

4.6) Advertising
We are using the visual mode of advertisement especially the flyers and the brochures to
communicate with people but also a website that contains most of our products. So that
everyone feel comfortable with the way that suits him. Moreover, by this we are attracting
customers and creating an interest by customizing the product. Building a desire towards our
customers is essential because we should be very differentiated from the competitors in order
to penetrate easily the market. Bringing action should match when we create customer loyalty.
4.7) Promotions
The word-of-mouth enabled us to advertise widely to our neighbors and friends. Knowing
that it is not what we say that matter, because everyone can say, but how we say it. Moreover,
mostly the satisfied customers will give recommendations. Since 80% of business will come
from 20% of your customers and unhappy customers will spread quickly. The mass media
is also very important. In a world, that everyone likes to be connected and be a know-it-all the
social networks remains the only way to let the society aware of our products.
4.8) Personal selling
A process composed of eight steps has been found beneficial in sales.
The first one is the prospection which consist in figuring out the prospects and leads or
potential clients, the sales person must determine those who have the need for those
kinds of products, how much are they going to offer in exchange of the products and
being contacted by the sales person.
Then we have the preapproach is useful for presentation. This consists in customer
research and goal planning for the approach that is the fourth step.
The approach step consists in meeting the customer in order to get its attention.
The need in assessment is the following step that consists in evaluating the need of the
customer and interests of the buyer.

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 Then come the presentation, which is grabbing the attention, the interest, the desire
and the action through the products demonstration and by showing the benefits and the
features.
The meeting objectives is the next step, which ample, is the anticipation of the sales
person in the buyers price decision for example, dismiss of the any commitment or
maybe refusing because of an unknown factor.
Then come the gaining commitment, which is offering different sales closes such as
special offer or alternative one. At the last but not least, comes the following-up,
which consists in creating a relationship with the customer and building loyalty. This
last step enables company to enhance relationship with its customers.
4.9) Public relations
The Public relation is practically managing the spread of information between individuals or
an organization or between an organization and its public by using topic of public interest. Its
basically creating coverage for clients for free. Its "a management function, which tabulates
public attitudes, defines the policies, procedures and interests of an organization... followed
by executing a program of action to earn public understanding and acceptance according to
Ivy Lee.
4.10) Activity 9 (Marketing research and marketing mix)
Aim
of
the
advertisement
Flyers: Advertise the
brand, the mission,
the objective, the
description/profile of
the firm and the how
and why the company
operates.

Target group

Advertisement type

Educated
or
uneducated local that
are interested by
handicraft products.

Internet: it enables
the
company
to
convey information
about products and
services across the
globe quickly. With
a
more
interconnected world a
website is more than
useful to exhibit and
make people aware of
the existence of your
company.

Expatriates also are

very
demanding
concerning
the
memory
when
visiting a country
and
especially
African countries.

For the people that 300*10=3000.

we met in the
downtown we used
the word-of-mouth
and show them some
photos
of
our
products. We also
provided
flyers/brochures.
For the people that 100fr/30minutes.
prefer visualizing we
created a website that
contains
photos,
prices
and
our
addresses.
So
Everyone can feel
comfortable
when
gathering information
about our products.

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Cost

4.11) Promotional budget (activity 11- marketing research and marketing mix)
What
are
the
objectives of your
promotions for your
business?
Awareness of the
products
and
services.

Describe the degree

of the competitors
advertising
including cost.
Discounts in special
occasion
(like:
Ramadan and Ed,
Christmas,
in
September
when
schools are starting
again).
Recognition of the Customization.
brand name.
Recognition of our
company in Djibouti.
Enhance the image
of our culture.
Attract customers.

What strategies will

you use to match or
exceed
your
competitors?
Offering one free
product
when
bought stuff that
exceed 6000 fr.

Cost ?

Customization.

Good and friendly

employees

Word-of-mouth with
the people that we
know.
Website
on
facebook

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Gaining loyalty and

attraction from the
customer.

CHAPTER4: BUSINESS MODEL

A business model is a system that focus on the value and how to generate revenue in another
word it is a system that regroup value proposition, customer segment, product, cost structure,
it is a work made by these entire component in order to produce profit. A business model is
specialy concentrate on value creation and descripts how the company makes money; we are
going to study in detail those components in order to have a model of our business.
1) Mission statement
A mission statement is what each company should have in order to deliver a clear image to its
customer and make them aware of the mission that the company follows.
Mission is what will help a company to determine three important questions which are:
Whom we serve ?
Why do we exist ?
What do we produce ?
In order to answer those questions, an entrepreneur should already know its customer, the
product or service that will be provided to the customer, know in which business he is in,
manipulate the technological trends and differentiate its self from his competitor.

Our mission statement is: Promoting Djiboutian handmade product

2) Vision statement
The vision is important to have inside a company it helps the worker of the corporate to
determine a clear image of what they will do in the future.

Our vision statement is : make the handicraft product of Djibouti more unified and
connected to the rest of the world

3) Customer segment
All companies should have a segment of customer in order to achieve their goal. This is
actually how a company should start at exploring customer segment, as we know a company
cannot survive without customer because they are the core of the enterprise. For our project,
we are targeting the niche market as the analysis determined our customer target are those
aged between 18-30 year and that live in Boulaos (figure 3 and figure 6). They have similar
demographic and value proposition.

4) Value proposition
In order to have more customers, we have to offer them a good value proposition. In another
word we have to know what should be added to our product, for that we used a survey to
answer to the question What do we have to offer as a value proposition to the customer?

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The result shows us that customer want to have a better quality, an affordable price, a better
customer service, a personalized design and a diversification of our product. (Figure 9).
5) Distribution channel
As already, explain in the place part, our business is going to use direct distribution without
any intermediaries. Nevertheless, in order to increase our channel in the future we might use
other distribution such as distributing our product to supermarket, selling online that will
enhance the performance, attract the client, and expand our product to gain a high market
share.
6) Customer Relationships
A customer relationship is the relationship we are going to build with our customer in order to
retain them. Since the the Customer is the King, we should consider the customer
relationship as an important part of the work. We want to establish a co-creation
relationship with our customer, we want them to be part of our company because we exist
for them so we have to take in consideration their desire and take in account their advice,
what they want to add to our product, what they are willing to buy from us, this kind of
relationship is strong because its show the importance of the customer.
7) Revenue Stream
Revenue stream is the way a company is going to generate revenue. Our customer are going
to buy our product for the quality we will provide, the price that will be affordable, the design
that will be personalized. The method we used to determine these hypotheses is asset selling
because we are going to sell our product directly to the customer and this can generate a profit
at a predetermined price.
8) Key resources
First of all, key resources it is an important factor to ensure that your business has the need it
resources that help the production, marketing and services.
There are three types of key resources:
Financial resource: for our case we use shareholders capital in order to invest on our
handicraft project each of us come up with enough capital to purchase the necessary
material to make our product.
Human resource: this part concern having the right people who are skilled and have
experience on tradition product fabrication. So we are going to hire few workers who
already have enough knowledge about the fabrication of the product since we are
investing also physically in the project we are considered as the makers.

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 Physical resource: as a tangible resource we use a small shop to make the product
cord, pearl , laptop, bottle, painter, leather, tissue and so to have a final product like
accessories , shoes, decoration stuff
9) Key activities
Is one of the most important sections in our business model. It helps our project to understand
in which category we are. There are 3 types of key activities
Production
Problem solving
Platform/network
For our case we are in the category of problem solving since we are solving a problem that
exist in Djibouti, special the informal women whose making the handicraft product are those
who we are trying to help by promoting their work and introducing it to the world.
10) Key partnership:
Companies create alliances to optimize their business models, reduce risk, or acquire
resource. It provides a way to leverage the unique skills and expertise of each partner and
should look out competitors.
There are manly four types of partnerships that can be formed:

Strategic alliance between non competitors

Strategic alliance between competitors
Joint venture to develop a new business
Buyer-supplier relationships to assure reliable product

In our case we made a strategic alliance between competitor with the ONTD and Mask East
Africa they are our direct competitors and we made an agreement with them by writing a
letter of partnerships and each of them agreed with relation.

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11) Cost structure

It is an important section to have a low cost structure because is a strong competitive
advantage which help our project to gain a market share .
Cost structure is differentiated in four types:

Cost driven
Cost premium
Fixed costs
Variable costs

It is important to identify underlying cost drivers and the relationship between different costs
and the behavior in terms of size growth, volatility in the market. for that we minimized our
cost as much as possible in aim of creating the lowest possible cost structure using low price
and delivering high value proposition.
The method that we used to determine these hypotheses is the cost driven method. Overall the
total amount of our business is around 15000 DF including all the fixed cost that we used:

Business card
The survey papers
Flyers
Research and development

The materials used to come up with the final product are:

Pearls
Tissues
Cords
Bottles
Leathers

Conclusion
This mini business plan that we studied helped us to determined what we should do in a first
step in order to conduct or lead a business, studying the market mix, market analysis and
establish a business plan helped us to identify what we should take in consideration in order to
have a great business plan .

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BUSINESS MODEL CONVAS:

Customer segment:

Customer relationship:

Revenue stream:

Key Resources:

Key Activities:

Key Partnerships:

Cost Structure:

Value proposition:

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Distribution channel:

References
The lecture of the cours
Read more: http://www.businessdictionary.com/definition/idea.html#ixzz42ucNHLzv
Confidential To Export Promotion Council for Handicrafts 2005 Frost & Sullivan
THE GLOBAL MARKET FOR HANDICRAFTS

States Agency for International Development or the United States Governementalates Agency for

International Developmen

East Africa and the Indian Ocean

www.profit-proinvest-eu.org Country Profile: Djibouti

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