Senior Capstone - Consulting Project: Export Plans for Nigeria, Mali & Benin
-
Upload
leah-k-shahin -
Category
Business
-
view
303 -
download
0
Transcript of Senior Capstone - Consulting Project: Export Plans for Nigeria, Mali & Benin
Final Report - B & D Merchandising: Nigeria, Mali & Benin
IB Consulting Project – Fall 2015Bachelors in Business Administration, International Business Majors
Leah Shahin - [email protected] Jacline Nguyen - [email protected]
Kridge Dsouza - [email protected] Hu - [email protected]
Sequence of November 12, 2015 Meeting● Welcome
● Update on market studies
● Recommendations
● Export and marketing plan for Nigeria
● Export and marketing plan for Mali
● Export and marketing plan for Benin
● Recap of deliverables
● Conclusions
Update on Market Studies
● The CIA World Factbook has updated their data and the number of documents necessary to import has altered for each country
● Our outcomes remain the same
http://www.amazon.com/The-CIA-World-Factbook-2016/dp/1634503287
Schedule B Code for Mobile Phones Exported from the U.S.
The Schedule B code will help to classify exported products for customs
https://uscensus.prod.3ceonline.com/
RecommendationsWe are recommending exporting refurbished iPhone 4s’ in
Nigeria
● Less expensive than most smartphones
● They offer the applications that the younger generations are interested in
● Total Landed Cost per iPhone 4s is less expensive than Benin and Mali due to the additional costs incurred by transporting the phones from Nigeria
● Income per capita is larger and spending patterns show willingness to purchase
Export Plan: Nigeria Indicator Lagos Sub-Saharan
AfricaOECD high income
Time to import: Border compliance (days)
12.42 6.66 0.37
Cost to import: Border compliance (USD)
$1,077 $643 $123
Time to import: Documentary compliance (days)
7.21 5.12 0.16
Cost to import: Documentary compliance (USD)
$564 $351 $25
Documents Required for Import: Bill of lading, Cargo release order, Combined Certificate of Value and Origin (CCVO), Commercial invoice, e-Form “M” (valid for foreign exchange), Exit Gate, Letter of Credit, Manufacturer's certificate of production or SONCAP, Packing list, Payment receipt of custom fees and duties, Pre-Arrival Assessment Report (PAAR), Product Certificate 1 (Unregistered Status), Single Goods Declaration (SGD), Terminal handling receipts (Doing Business in Nigeria, 2016)
Destination : Lagos
Area : Apapa
Port : Port of Lagos
Type : Sea
Direct Export Strategy
http://www.doingbusiness.org/data/exploreeconomies/nigeria#trading-across-borders
Total Landed Cost Refurbished
New
Expenses Total Shipment (14 units)
Per Unit Total Shipment (10 units)
Per Unit
Shipment Value 14 units x $140 = $1,960
$140.00 10 units x $200 = $2,000
$200.00
International Shipping (Freight Calculator)
$549.00 $39.20 $384.00 $38.40
International Insurance (1.5%)
1.5% * $1,960=$29.40
$2.10 1.5% * $2,000=$30
$3
Customs (5%) 5% * $1,960=$98
$7.00 5% * $2,000=$100
$10
Sales Tax (5%) 5% * $1,960=$98
$7.00 5% * $2,000=$100
$10
Total Landed Costs $2,734.40 $195.31 $2,614.00 $261.40
Marketing Plan: Nigeria
http://samwilkin.com/wordpress/2014/04/28/technology-the-bad-governance-solution-or-why-nigerians-love-their-smartphones/
Marketing Plan: Nigeria• Market Segmentation (Age): 15 – 65
• Product: iPhone 4S (Refurbished or New)
• Price: Refurbished : $195.31 + 20% profit = $235.00
Brand New: $261.40 + 20% profit = $314.00
• Place: Distributors (Micro-Station Limited, Park ‘N’ Shop, iCell)
• Promotion: Nigerians Price Sensitive & Love Deals
Offer deals with mobile phones
Advertise different deals offered
http://www.thingsnew.ng/2014/11/13/micro-station-opens-sango-ota-retail-outlet/
https://geolocation.ws/v/P/16105788/20081115-park-n-shop-port-harcourt/en
Export Plan: MaliIndicator Bamako Sub-Saharan Africa OECD high income
Time to import: Border compliance (days)
3.58 6.66 0.37
Cost to import: Border compliance (USD)
$298 $643 $123
Time to import: Documentary compliance (days)
3.20 5.12 0.16
Cost to import Documentary compliance (USD)
$375 $351 $25
Direct Export Strategy
Documents Required for Importing: BIVAC attestation, commercial invoice, customs import declaration, import intention, insurance certificate, packing list, transit document (T1), TRIE (Doing Business in Mali, 2016)
http://www.doingbusiness.org/data/exploreeconomies/mali?topic=trading-across-borders
Destination: Bamako
Area: Apapa
Port: Lagos
Type: Sea
Total Landed CostExpense Total per shipment (14
units)Per Unit
Shipping Value ($1,960) 14 units x $140 = $1,960 $140 (price in USA)International Shipping (Freight Calculator)
$549.00 $39.21
International Insurance (1.5% 1.5% x $1,960 = $29.40 $2.10Customs (35%) 35% x $1,960 = 686.00 $49VAT Tax (15%), Statistical Tax (1%), Community Solidarity Levy (1%)
(15% x $1,960) + (1% x $1,960) + (1% x $1,960) = $333.20
$23.80
Total Landed Cost $3,557.60 $254.11
*There will be additional costs for transporting the phones from Nigeria to Mali
Marketing Plan: Mali • Market Segmentation (Age): 10 to 65
• Product: iPhone 4s (refurbished)
• Price: $254.11 + 20% profit = $305.00
• Place: Distributors (La Fourmi, Supermarket Le Miniprix)
• Promotion: through postings on the distributor’s website, in-store advertisements
http://www.ebay.com/bhp/iphone-4
http://www.pbase.com/image/78102708
Export Plan: Benin
Document Required for Importing: Bill of Lading, Certificate of Origin, Commercial Invoice, Electronic Cargo Tracking Note (BESC), Import Declaration, Import License, Single Pay Slip (BFU) (Doing Business in Benin, 2015).
Destination : Cotonou
Port: Lagos
Area: Apapa
Type: Sea
http://www.doingbusiness.org/data/exploreeconomies/benin
Indicator Benin Sub-Sahara Africa OECD high income
Time to Import: Border compliance (days)
3 6.67 0.37
Cost to Import: Border compliance (USD)
$579 $643 $123
Time to Import: Documentary compliance (days)
2.46 5.12 0.16
Cost to Import: Documentary compliance (USD)
$529 $351 $25
Direct Export Strategy
Total Landed CostExpense Total per Shipment (14 units) Per Unit
Shipment Value ($1,960) 14 units x $140 = $1,960 $140.00
International Shipping (Freight Calculator) $549.00 $39.21
International Insurance (1.5%) 1.5% * $1,960=$29.40
$2.10
Customs, Duties & Taxes (27.19%) 27.19% * $1,960=$532.92
$38.06
Sales or VAT Tax (18%) 18% * $1,960=$352.80
$25.20
Total Landed Cost $3,424.12 $244.57
*There will be additional costs for transporting phones from Nigeria to Benin
Marketing Plan: Benin• Market Segmentation (Age): 15 to 65
• Product: iPhone 4s (refurbished)
• Price:$244.57 + 20% profit = $294.00
• Place: Distributor (GloWorld)
• Promotion: through postings on the distributor’s websites, in-store advertisements
http://www.ebay.com/bhp/iphone-4
http://mobileworldmag.com/glo-nigeria-set-to-empower-nigerians-with-mobile-money-service-glo-xchange/
Recap of DeliverablesThe letter of engagement states that the International Business Student Research Team will:
Select the top three most marketable countries to export to (✔)
Identify the risks and opportunities of doing business in each country (✔)
Analyze the electronics market in each country (✔)
Create export and marketing plans for Nigeria, Mali, and Benin (✔)
ConclusionB & D Merchandising should export refurbished iPhone 4s’ to Nigeria before entering the Mali or Benin smartphone
market• Nigerian smartphone market is more prominent
• Total Landed Costs per smartphone are higher in Mali and Benin due to additional costs from transporting the product from Nigeria
• Profits will be greater
Works Cited"Doing Business in Benin." Doing Business in Benin - World Bank Group. World Bank Group, 2015. Web. 25 Oct. 2015.
"Doing Business in Mali." Doing Business in Mali - World Bank Group. World Bank Group, 2015. Web. 22 Oct. 2015.
"Doing Business in Nigeria." Doing Business in Nigeria - World Bank Group. World Bank Group, 2015. Web. 22 Oct. 2015.