ShambaChama_Tanzania_BrandManagement_FinalPaper

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Feven Abadi, Luke Hansford, Lexie Hartnett Pooja Shetty, Sarah Tamburelli, Faye Wellman

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Crafting logistic-based solutions for Tanzanian farms to bridge gaps in a rapidly growing global economy. TEAM || Feven Abadi, Luke Hansford, Lexie Hartnett, Pooja Shetty, Sarah Tambourelli, Faye Wellman

Transcript of ShambaChama_Tanzania_BrandManagement_FinalPaper

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Feven Abadi, Luke Hansford, Lexie Hartnett

Pooja Shetty, Sarah Tamburelli, Faye Wellman

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Market Needs

Tanzania represents one of the fastest growing economies in Sub Saharan Africa as well

as one of its fastest growing populations (Euromonitor, 2014). It has a population of over 49

million people as of the year 2011 (IndexMundi, n.d), of whom more than 80% are employed by

the agricultural sector. (Tanzania Invest, 2014). Agriculture is the biggest industry in Tanzania

and accounts for half the nation’s income while representing at least 85% of the country’s

exports (IndexMundi, 2014).

Since 1985, the country’s overall agricultural GDP has grown at an average annual rate

of 3.3 percent while the country’s main food crops have been growing at 3.5 percent annually

and its export crops at 5.4 percent annually (Tanzania Invest 2014). The government has

recognized the significance of the agricultural sector in Tanzania and has started various

initiatives to ensure that agriculture continues to lead economic growth. Tanzania has abundant

land and water resources as well as motivated agriculturists; hence, it is not surprising that for

the past few years it has witnessed bumper harvests with its cereal crops. Maize especially seems

to be doing well, with farmers producing 6 million tons this season alone (Businessweek, 2014).

This trend of bumper harvests is now beginning to create problems for agriculturists in

Tanzania as there are no adequate storage facilities available in which to store the surpluses. The

government, through the National Food Reserve Agency (NFRA), can afford to buy only

300,000 tons of maize. This means that more than 1 million tons of maize will be destroyed due

to lack of storage facilities (Business Week, 2014).This is a major issue because wasted crops

constitute a huge loss for a nation as underdeveloped as Tanzania.

Tanzania’s most pressing need is to ensure that its crops are not wasted and, in turn, that

its agriculturalists are not disincentivized from maximum production. As the self –food

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sufficiency rate this season is 125 % (BusinessWeek, 2014), it is also necessary to look at other

markets and encourage private agents/institutions to buy the surplus maize. As the storage

facilities in Tanzania are highly inadequate, Tanzania needs a solution wherein its crops can be

stored, transported to new markets, and monetized. Enter Shamba Chama.

Details of the Named Solution-Form, Contents, Ingredients

Shamba Chama is a logistics-based solution for smallholder maize farmers in Tanzania.

Shamba Chama will utilize a fleet of bright, branded crop transport & storage vehicles and brand

ambassador vans. These vehicles will pick up excess maize crops from Tanzanian farmers and

will bring them to neighboring countries such as Kenya, Sudan, and the Democratic republic of

Congo to be sold. Each of the smallholder farms will receive a percentage of the crop sales and

the remaining profits will go toward Shamba Chama’s own revenue and localized community

development projects. These projects will be an integral part of the Shamba Chama brand and

will focus on providing quality medical care, drinking water access, and educational resources.

Shamba Chama will work by first creating a highly accurate database of the locations of

the farms and their owner’s contact information. Shamba Chama ambassadors will then

correspond via text message with the farms in order to schedule the most effective and efficient

collection and transport route. The transport vehicles will then schedule and implement sales

negotiations with agricultural producers in other near-by countries. This system will work

efficiently because the routes will be carefully designed using algorithms and feedback metrics.

Most Tanzanians generally do not possess smartphones and lack internet access. Once the data is

collected from the farms, however, only the Shamba Chama company will need the technology

necessary to sustain operations.

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Shamba Chama is a community-centered brand providing a community based solution.

Shamba Chama combines what the farmers already have (food surplus) with something they are

lacking (communication and collaboration) in order to maximize the utility of their labor.

Shamba Chama will uncover the opportunity to cultivate profit by assisting the smallholder

farmers who have difficulty negotiating fair crop prices without government assistance. The

Chamba Chama solution offers competitive prices for excess maize crops given that the

government is no longer able to purchase all of the mounting surplus.

Timely and Timeless Characteristics

The Shamba Chama solution is timely because of the current maize surplus in Tanzania.

Our solution adapts to the contemporary technological situation in Tanzania (basic mobile

phones) while also using today’s latest technological capabilities. The future business and the

future of the world hinges upon the management and leveraging of data, and Shamba Chama

does just that. Furthermore, Shamba Chama fits in today’s Tanzania by addressing the country’s

largest industry head on in a way that allows the target consumers to easily engage with the

brand.

The Shamba Chama brand is a timeless solution because it speaks to the essential human

need to be connected. By bringing people together and fostering a sense of community between

farmers and even countries, Shamba Chama addresses the human condition, or more specifically

the social human condition. Our brand will prove to be an enduring solution as it also addresses

the timeless and useful desire for ‘convenience.’ Convenience has been, and will always be, an

integral part of progress and a keystone for efficiency. Finally, Shamba Chama provides the

crucial and timeless benefit of security, or rather, peace of mind. Membership with Shamba

Chama will allow for a small sense of much needed security and mental peace for Tanzanians.

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Target Audiences, Differentiation & Positioning

Shamba Chama will be marketed towards Tanzanian maize farmers, the hardworking and

dedicated individuals who spend hours upon hours laboring over their fields. Maize is the single

most important food crop in Tanzania, covering 45% of farmable land within the country (Lyimo

et al., 2014). These farmers have undergone a major transition in recent years and have adopted

new ways of tending to their crops. A battle of subsidies and foreign agricultural aid programs

has shifted these farmers’ fields to produce more crops of a higher quality (Tomlinson, 2007).

Tanzanian farmers are proud of what they have been able to learn, and of the fact that they can

provide better lives for their families.

As maize yield has steadily increased since over the past few years, a need for increased

storage capabilities has arisen, something new to a country that does not often experience a

surplus of anything but poverty. Shamba Chama differentiates itself by acting as a unique crop

collection service; a way for Tanzanian maize farmers to rationalize greater crop production.

Shamba Chama pays farmers for their excess crops that are then exported to neighboring

countries after local and national needs are satisfied. What also makes Shamba Chama unique is

its supportive role in the community. Shamba Chama gives back to the Tanzanian communities

by way of donation to healthcare, education, and clean water initiatives. Shamba Chama fosters a

sense of pride in the minds of maize farmers, who now can produce enough maize to support

their family and also strengthen and improve their communities as a whole.

Building the Marketing Plan

We want to build Shamba Chama as a community-focused brand first and foremost.

Tanzania is a collectivist society and has a relatively undeveloped economy - as such, a strategy

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that fosters inclusion in the brand community and promotes symbiotic relationships will

inevitably prove successful. The community of smallholder farms, as a whole, have a need: they

have surplus crops and no way to monetize them. Shamba Chama is the solution to this need.

Instead of hiring no one and letting their crops go to waste, smallholder farmers will hire Shamba

Chama to do the job.

The target audience, as mentioned above, consists of all smallholder maize farmers who

find themselves the unfortunate possessors of surplus crops. Shamba Chama will attempt to

manifest itself in the minds of these farmers similar to how social media networks do so. The

Shamba Chama community will be built in such a way that farmers who are not part of the

community feel left out and will be compelled to join for fear of being left behind.

Message Development: Advertising, PR, Direct Marketing & Media Plans

As Shamba Chama is a completely novel brand to Tanzanian farmers, our tactics will aim

to raise brand awareness and educate Tanzanian farmers about the beneficial services provided

by the company. These tactics will also be critical to building the brand community in the minds

of the farmers. Our tactics will contain the following messages: Shamba Chama is a community

of people, it is an empowering brand that gives back to the community, and it is precise and

efficient. After each message will be included a prompt to text or call the company to get

involved.

As far as advertising is concerned, two initial strategies will be utilized to get a foot in the

door: TV and radio. Shamba Chama will advertise through the state-owned TV station and

through the multiple privately owned TV stations. It will also advertise through the state-owned

national radio station as well as through the 40 privately owned radio stations (CIA World

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Factbook.) Granted, not all Tanzanian farmers will have access to these media, however the ones

that do will be a good starting point.

Tanzania has a fairly well-developed transportation infrastructure. This makes out-of-

home billboard advertising an attractive option for Shamba Chama. It is likely that Farmers

traveling on roadways are heading to their local farm depot or hardware store for farm-related

supplies. These stores represent another potential contact point. Shamba Chama will set up

kiosks in these stores to help drive the association between smart farming and Shamba Chama.

Perhaps the most important tactic to be utilized by Shamba Chama is its fleet of branded

trucks and vans (see Appendix 1.1). These vehicles represent the company’s operational

competence and as such will be adorned with imagery relevant to the company, including but not

limited to: the company’s name and logo, images of fresh maize harvests, and of course smiling

farmers to represent the Shamba Chama community. These vehicles will effectively serves as a

form of out-of-home advertising; everyone who sees them on the road will be exposed to the

brand.

As for public relations, Shamba Chama will make it clear in its advertising that it is

dedicated to giving back and addressing the needs of local communities. It will, according, put

its money where its proverbial mouth is. This will be achieved by way of Shamba Chama’s

“FifteenBack” program. 15% of Shamba Chama’s profits will be dedicated to improving

communities’ education, healthcare, and clean water supply. This will lend a human touch to the

company.

Distribution Plans Product and Place Harmony

The domestic transport system in Tanzania relies on moving goods by road, using major

trunk roads, minor roads, and rural roads (Kewku, 2006). To meet the market needs, we will

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allow both production and consumption to be spatially distributed across across nine geographic

areas across Tanzania (see Appendix 1.2 ). Mwanza and Kigorma are coastal cities bordering

Lake Victoria and Lake Tanganyika, respectively, as sources of seafood. The areas of Tabora,

Mpanda, Mbeya, Kitadu, are rural regions which produce only staple foods that are essentially

non-tradeable and exportable as crops. The capital city of Dodoma and the second commercial

capital, Dar es Salaam, are assumed to abstain from agricultural production and serve as

production centers for manufacturing and other services. Dar es Salaam serves as the entry point

for all international trade in Tanzania.

Using our distribution model, goods and services move across Tanzania as follows:

imports move from the Dar es Salaam port and are dispersed throughout our distribution model.

Exports move from the farm to the capital to the port, while the rest of the domestically produced

goods and services may be consumed elsewhere. Mwanza and Kigorma will serve as points of

providing fresh seafood to neighboring Mpanda and Tabora, while Dar es Salaam will provide

fresh seafood to secondary cities. This model allows farmers to sell their products and influences

the prices that rural households pay for goods purchased from other parts of the country. This

model also allows for dynamic growth externalities through the possibility of agglomeration

economies in secondary cities.

BTL & Internet Strategies to Enhance Brand Positioning:

As a brand that aims to enrich communities through communication and collaboration,

Shamba Chama’s Below-the-Line strategies are vital to building and maintaining the brand’s

authenticity. Considering only 11.5% of Tanzanians have access to the internet (Tanzania Usage

and Marketing Report, 2015) experiential marketing tactics are the best way to reach community

members and farming population. In addition to experiential marketing in Tanzania, fundraising

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efforts will be used in Shamba Chama’s homeland, the U.S.. Fundraising efforts will support

Shamba Chama programs that empower Tanzanian farmers and therefore, Shamba Chama as a

company. Building off Shamba Chamba’s “FifteenBack” program, Below-the-Line tactics focus

on improving education, healthcare, and clean water supply.

Shamba Chama’s Below-the-Line tool kit includes:

1. Shamba Chama Food Trucks: Shamba Chama food trucks will be found at Tanzanian

cultural festivals and the streets of Tanzania. These trucks will not only act as moving billboards

but offer free, fresh food to the Tanzanian people. Food trucks will act as a gateway for

communication between Shamba Chama representatives and community members. While

indulging in much needed and well deserved meals, Shamba Chama representatives will have the

opportunity to educate and recruit Tanzanian farmers, learn about their community and

individual needs, and collect contact information. At festivals, Shamba Chama will raffle off

coveted farm equipment which empowers farmers and increases produce production. Ultimately,

the food trucks would become a branded entity for Shamba Chama and one of their most

authentic, useful, and effective communication strategies.

Shamaba Chama food trucks will also be in the U.S. however their role in society will be

slightly different. Following in the footsteps of Project (RED), Shamba Chama will partner with

local restaurants and chefs in metropolitan cities to provide culinary experiences with a cause.

All profits made from the food truck fundraising efforts will be used to provide farmers with

MoneyMakers, a hip pump that extracts water from the ground and helps water plants.

MoneyMakers cost $70 and can increase a farmer’s income from $150 a year to $850 a year.

Through Shamba Chama’s strategic partnership with MoneyMaker’s holding NGO, KickStart,

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we will continuously use donated funds to help empower farmers with tools that aid in

sustainable, independent farming.

2. Social Entrepreneurship Mentor Program: By partnering with Reach For Change

Tanzania- a non-profit organization that aims to enhance children’s lives by educating them

about social entrepreneurship. Shamba Chama will offer mentoring to farmers led by graduates

from Reach For Change’s Incubator program . Through this unique mentorship program Shamba

Chama will not only provide farmers with tools for farming efficiency, but empower them with

the knowledge of entrepreneurship. They will ultimately change the current view of farming- a

dirty, back-breaking chore- to an authentic, sustainable, and profitable way of life.

3. Branded Content: Shamba Chama Documentary: Inspired by Chris Temple and Zach

Ingrasci’s “Living on One” documentary on Guatemala, Shamba Chama would create a film that

highlights the economic challenges of Tanzanian farmers. Additionally, the documentary would

urge people to donate at the end of the film by directing them to the Shamba Chama website.

Proceeds will be invested in the Shamba Chama mentorship program and providing farmers with

proper farming equipment, specifically MoneyMakers.

4. Walk for Water: Annual FitBit Flash Campaign: In correlation with Shamba Chama’s goal

to provide clean drinking water to Tanzanians, a strategic partnership with FitBit and LifeStraw

will be formed to create a compelling and interactive fundraising campaign which will provide

Tanzanians with clean water. The average Tanzanian walks three hours to reach a clean water

source. This timeframe allows us to estimate they travel about 9 miles daily to collect drinking

water. Considering this reality, for one week annually, FitBit customers will donate via the miles

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they walk while wearing their FitBit device. For the first 9 miles walked a LifeStraw will be

provided to a Tanzanian in-need. Once the consumer reaches 18 miles, a LifeStraw Family will

be donated. Fundraisers will be encouraged to share their social enhancements via social media

creating buzz for Shamba Chama, FitBit, and LifeStraw, and creating awareness about the

scarcity of clean drinking water in Tanzania.

Brand Extensions

Once Shamba Chama is established in the Tanzanian market, the next move will be to

extend its services to other crops such as cassava, millets and sweet potatoes, which are also

growing in abundance. After the brand is well ingrained into agricultural sector the next

extension to the brand will be to provide the same service to other industries that have the need

of transportation & storage facilities. As freshwater fisheries represent another growing sector in

Tanzania, we think Shamba Chama could benefit from the implementation of a branded service

just for them; in the long run, it will be beneficial to both the freshwater fishing industry as well

as to Shamba chama.

Additionally, Shamba Chama could move on to different countries in the African

continent with the same business model. Eventually Shamba Chama could transition into a

Transportation and freight brand whereby they would be the one-stop solution for all

transportation needs.

Managing Brands Over Time

As the Tanzanian economy prospers and its technological infrastructure advances,

Shamba Chama must identify additional and/or new usage opportunities. This will include

utilizing social media and internet strategies to communicate with consumers and farmers.

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Additionally, expansion will play a pivotal role in Shamba Chama’s long-term success. By

expanding to surrounding countries and increasing brand breadth, Shamba Chama will reach vast

consumer segments through increased distribution and brand awareness. They will eventually

want to evaluate their marketing program and “determine which elements are making a strong

contribution to brand equity” (Keller, 2013). Following this process Shamba Chama must fine

tune their marketing program by making changes that contribute to maintaining or strengthening

brand equity. Lastly, Shamba Chama could expand brand awareness and further develop their

BTL education strategy by developing higher education programs in the realm of agriculture and

sustainability. As Tanzania shifts from an agriculture-based economy to a knowledge-based

economy, this will be vital in maintaining relevance and catering to community needs.

Managing Geographic Expansion

With the success of our initial brand introduction outlined through our domestic

distribution model, Shamba Chama plans to expand its reach to neighboring countries. Our

domestic distribution operates in three prime locations that will aid in our international

expansion (see Appendix 1.2). Mwanza, a port on Lake Victoria, is shared with the neighboring

countries Uganda and Kenya. Kigoma, a small port on Lake Tanganyika, is also bordering the

Democratic Republic of Congo, Burundi, and Zambia. The Tanzania Railways Corporation

operates cargo ships on both bodies of water giving us access to international trade with Uganda

and Kenya (African Development Group, 2013). The Tanzania-Zambia Railway goes from Dar

es Salaam into Zambia, hitting two of our distribution centers: Kitadu and Mbeya. There is also a

train that operates from Nairobi and Mombasa in Kenya into Tanzania, reaching Dar es Salaam

and providing access to the rest of Tanzania. In our international expansion to these neighboring

countries, we want to take full advantage of the rail transportation systems as a means of

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exporting. We will also utilize Dar es Salaam as a point to operate cargo ships, although it is

risky because of piracy. The agricultural framework of Shamba Chama assumes that there will

be changes in markets and will easily adapt depending on seasonal crop offerings.

Customer Responsibility Marketing

Shamba Chama will launch a “FifteenBack” Program, which is set up to give back 15%

of all proceeds directly towards Tanzanian communities. FifteenBack gives evenly to support

improvements in healthcare, education, and clean water, as these are areas of much needed

attention throughout Tanzania. Shamba Chama will partner with other charities in below the line

efforts to raise money, awareness, and improve Tanzanian lives in simple, effective ways. This

will tap into Tanzania’s high collectivity, encouraging farmers to work together in order to

support the funds reinvesting in community development. This should generate positive buzz and

word-of-mouth communication from local farmers, to others within Tanzanian communities;

creating a deeper loyalty towards Shamba Chama.

Works Cited

Africa: Tanzania. (n.d.). Retrieved April 27, 2015, from

https://www.cia.gov/library/publications/the-world-factbook/geos/tz.html

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Keller, K. L. (2013). Strategic Brand Management: Building, Measuring,

and Managing Brands. Upper Saddle River, N.J : Prentice Hall.

Kweka, J. (2006). Trade policy and transport costs in Tanzania (No. 06/10).

Lyimo, S., Mduruma, Z., & De Groote H. (2014). The use of improved maize varieties in

Tanzania. African Journal of Agricultural Research, 9(7) 643-657. doi:

10.5897/AJAR11.065

Markets of the Future. (2014, June 10). Retrieved April 30, 2015.

Tanzania- Agriculture Sector. (2014, January 1). Retrieved April 29, 2015, from

http://www.tanzaniainvest.com/agriculture

Tanzania- Economy Profile. (2014). Retrieved April 30, 2015, from

http://www.indexmundi.com/facts/tanzania/rural-population

Tanzania Farmers stuck with unsold Maize. (2014, October 14). Retrieved April 27, 2015,

from http://www.busiweek.com/index1.php?Ctp=2&pI=1967&pLv=3&srI=89&spI=525

Tanzania Internet Usage and Marketing Report. (2015, January 1). Retrieved January 1, 2015,

from http://www.internetworldstats.com/af/tz.htm

Tanzania- Rural Population. (n.d.). Retrieved April 30, 2015, from

http://www.indexmundi.com/facts/tanzania/rural-population

Tanzania Transport Sector. (2013, September 1). Retrieved April 29, 2015, from

http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operations/

Tanzania_-_Transport_Sector_Review.pdf

Tomlinson, C. (2007, December 15). Crop subsidies: a world of difference for African

farmers. The Seattle Times. Retrieved from

http://www.seattletimes.com/nation-world/crop-subsidies-a-world-of-difference-for-

african-farmers/

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Appendix

1.1

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1.2

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