Final Report - B & D Merchandising: Nigeria, Mali & Benin

IB Consulting Project – Fall 2015Bachelors in Business Administration, International Business Majors

Leah Shahin - leah.shahin@temple.edu Jacline Nguyen - jacline.nguyen@temple.edu

Kridge Dsouza - tuf03104@temple.eduYaowen Hu - tue74333@temple.edu

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.