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HOW TO INCREASE JUMIA

COTE D’IVOIRE SALES


IN ORDER
TO BE
PROFITABLE?

SEKA GEROD CHIA STRIVANE

MASTER IN MANAGEMENT & INTERNATIONAL MARKETING

ESIC INTERNATIONAL BUSINESS UNIVERSITY (MADRID)

2016

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DECLARATION

This final report in Master's degree is carried out in order to validate the academic year of
2016/2017 at the Business School of Madrid (Esic) with an aim of MIM (International
Management and Marketing) diploma acquisition.

Student accept, where applicable the confidentiality clause. The use of conclusion and
recommendations made in this master report are without prejudice. Their value does not
imply the responsibility of the stakeholders (neither the author nor the person responsible for
monitoring the project).

Finally, I certify that I have carried out this project at the end of the study, based on the
relevant sources mentioned in the bibliography used. Some images have been put to reinforce
the credibility or justify some says.

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DEDICATION

I dedicate this project to my family especially to my mother and father for their love advices

And confidence on me, to my tutor Mr. Mario Weitz for its help and advices

And support while I was undertaking this project.

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RECOGNITION

I thank the Lord for giving me the strength and support that enabled me to carry out this
report.

I would also like to thank my classmate (MIM2) ESIC's 2016 for sharing their knowledges,

For allowing me to learn in a pleasant environment. Finally,

I thank all the professors who taught us during

This academic year thanks to

Whom this project was

Made possible.

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OUTLINE
DECLARATION ................................................................................................................................... 2
DEDICATION ....................................................................................................................................... 3
RECOGNITION.................................................................................................................................... 4
DEFINITION OF KEYS TERMS ....................................................................................................... 6
ABSTRAT .............................................................................................................................................. 7
EXECUTIVE SUMMURY ................................................................................................................... 8
CHAPTER ONE .................................................................................................................................... 9
APPROACH ........................................................................................................................................ 10
JUMIA COTE D’IVOIRE .................................................................................................................. 11
E-COMMERCE INDUSTRY ANALYSIS IVORY COAST .......................................................... 13
CHAPTER TWO................................................................................................................................. 14
OBJECTIF OF STUDY .................................................................................................................. 14
GENERAL OBJECTIF .................................................................................................................. 15
JUMIA CONSUMER TREND ANALYSIS ..................................................................................... 15
Consumer per age........................................................................................................................ 15
Geographic division..................................................................................................................... 16
Conclusion of JUMIA consumer’s trend....................................................................................... 17
CHAPTER THREE ............................................................................................................................ 18
OBJECTIVES AND STRATEGIC PLAN.................................................................................... 18
FIRST OBJECTIVE ....................................................................................................................... 18
SECOND OBJECTIVE .................................................................................................................. 19
THIRD OBJECTIVE...................................................................................................................... 19
FOURTH OBJECTIVE.................................................................................................................. 19
FIFTH OBJECTIVE ...................................................................................................................... 20
SIXTH OBJECTIVE ...................................................................................................................... 20
INTERNAL ANALYSIS................................................................................................................. 22
SWOT ANALYSIS OF JUMIA CI .................................................................................................. 22
The analysis of the strengths and weakness will allow us to have a clear view of the functioning
of CI jumia business. ..................................................................................................................... 22
MC KINSEY OF JUMIA CI........................................................................................................... 23
EXTERNAL ANALYSIS............................................................................................................ 25
COMPETITORS ANALYSIS .......................................................................................................... 25
PORTER’S 5 STRENGTHS ........................................................................................................... 27

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CHAPTER FOURFTH ....................................................................................................................... 28
MARKETING STRATEGIES ....................................................................................................... 28
SEGMENTATION ......................................................................................................................... 28
TARGETING ................................................................................................................................. 28
POSITIONING .............................................................................................................................. 28
MIX MARKETING ........................................................................................................................ 29
PRODUCT .................................................................................................................................... 29
PRICE............................................................................................................................................ 30
PLACE ........................................................................................................................................... 31
PROMOTION ................................................................................................................................ 31
CHAPTER FIFTH .............................................................................................................................. 32
ACTION PLAN ............................................................................................................................... 32
TIMEFRAME................................................................................................................................. 32
FINANCIAL INFORMATION ....................................................................................................... 33
CONTINGENCY PLAN..................................................................................................................... 38
BIBLIOGRAPHY ............................................................................................................................... 39

DEFINITION OF KEYS TERMS

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ONLINE MARKET PLACE: A marketplace connects Sellers and Buyers through the Internet
and thereby fosters efficiency in an otherwise inefficient market Marketplace is an
ecommerce platform that enables Individuals as well as Business to either list their items for
sale or set up online store fronts on the marketplace platform and leverage the platform and its
services (search, viewing product information, buying, payment, order management etc).
What sets a Marketplace apart from B2B ecommerce sites is that fact that a marketplace is an
aggregation of sellers and their inventory. From a buyer's perspective, he/she gets to choose
from multiple sellers and therefore can pick & choose / bargain hunt as required Because of
the larger number of sellers in a marketplace, the consumer gets the benefit of greater choice
in inventory and also because of the inherent competition between sellers selling similar
products, the buyer also gets the benefit of lower prices and better customer service
The seller primarily needs to focus on sourcing, listing his inventory, managing orders and
fulfillment and customer support. The marketplace platform takes care of the Technology
infrastructure, payment processing, managing fraud & risk. (https://www.quora.com/What-is-
an-internet-marketplace-What-is-the-definition)

E-Commerce: At its core, e-commerce refers to the purchase and sale of goods and/or services
via electronic channels such as the internet. E-commerce was first introduced in the 1960s via
an electronic data interchange (EDI) on value-added networks (VANs). The medium grew
with the increased availability of internet access and the advent of popular online sellers in the
1990s and early 2000s. Amazon began operating as a book-shipping business in Jeff
Bezos' garage in 1995. EBay, which enables consumers to sell to each other online,
introduced online auctions in 1995 and exploded with the 1997 Beanie Babies
frenzy.(http://www.businessnewsdaily.com/4872-what-is-e-commerce.html)

ABSTRAT

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Nowadays social media applications like Twitter, Facebook, and LinkedIn are channels that
companies use to ensure their visibility because more people use them and they are much
frequented. These new means of communication allow companies to communicate directly
with their consumers, to improve their experience with the aim of influencing their behavior
and purchasing process positively. Our study report covered the use of online marketing tools
to increase the sale of JUMIA Côte d'Ivoire in order to be profitable.

Indeed, the subject focuses on all the online marketing actions that the company jumia Cote
d'Ivoire can undertake to be profitable. The study will focus on JUMIA customers purchasing
behavior in Côte d'Ivoire, show purchasing trends by explaining internal and external factors.

In order to do this analysis properly we are based on a market research that had been carried
out by JUMIA on its consumers. We made conclusions based on the results of the market
research and then proposed solutions. Then we also realized an action plan with specific
actions to be carried out in order to achieve our goal of helping jumia to be profitable

EXECUTIVE SUMMURY

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Jumia’s website reflects the main objective of its founders, Tunde Kehinde and Raphael
Afaedor, two Nigerians who have studied at prestigious universities such as Harvard and have
worked in reputable companies such as Goldman Sachs and Monster Technologies. Their
goal is to: give to their customers a fantastic experience by buying quickly without stress.

The headquarters of the parent company JUMIA.COM is based in LAGOS but the company
have many subsidiaries in more than 20 countries as Morocco, Ivory Coast, Uganda, Ghana,
and Angola in which it is present in Africa because of it regional expansion. Indeed the main
mission of JUMIA is to improve and facilitate Africans daily life by creating a world
connected through the internet.

The subsidiary of JUMIA in Ivory Coast is under the name (JUMIA COTE D'IVOIRE) which
is an on-line platform sale the most visited in Ivory Coast and the leader. It offers multiple
choice of products to its customers (fashions, appliances, electronics, and other products like
concert tickets).

Concerning its Short term objective Jumia Cote d'Ivoire wants to extend its business
throughout Ivory Coast, to allow customers who are in remote cities to take advantage of its
services, to achieve this objective it started creating hubs in some cities.

Jumia Cote d'Ivoire wants to be the reference number 1 e-commerce company in Ivory Coast,
keeping its leading position by opening a service adapted to the needs of its customers. With
the growing trend of e-commerce, jumia.ci has to find constantly innovative solutions to
maintain its competitive edge.

This report is a marketing plan of the company JUMIA.CI, Our goal in writing this report is
to do the external and internal analysis of the company with the aim of detecting dysfunctions
or weaknesses using the strategic swot analysis tool, after this step we will fix our Objectives
on which we want to work, after finding the appropriate strategies to be used for each
objective set, drawing up the action plan, the budget and Plan B.

CHAPTER ONE

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APPROACH

The African population is estimated at 1.1 billion this figure represents about 15% of the
world population, and predictions say that by 2025 it will increase to 1.5 billion, which will
make about 18% of the world population (Population Reference Bureau, 2013). Estimates of
electronic commerce on the African continent indicated low penetration in participation
digital international trade. According to the famous eMarketer site web in 2013 the
international trade on African platforms in B2c accounted for only 2.2% of the total global
sales. This observation is very tragic because despite the growth of its population, e-
commerce is still stagnating in Africa.

However it remains an opportunity as this potential (Africa and its consumers) is untouched.
Also the advent of Internet which is an essential tool of e-commerce is booming,
Telecommunication companies are in a vicious circle as regards the improvement of Internet
networks. They are in search of a solution enabling them to dominate the market and to be the
best, Now Africa has gone from 3G to 4G thanks to the huge competitions that regulates the
market. We noticed that internet advent push some companies using the traditional
distributions networks to opt for online one in order to reach the new target (connected
consumers).

This proves that the most telecommunication companies improve the quality of Internet
network in the different regions, the number of Internet subscribers will increase and the
African e-commerce platforms will be increasingly visited. In 2014 the report of McKinsey &
Company indicated that by the year 2025 e-commerce will account for 10% of the retail sales
of the entire African economy which will result in an annual revenue of US $ 75 trillion in
annual revenue. All of these informations shows that there is untapped potential in Africa,
which mostly encourages foreign investors to work with local companies to develop African
digital commerce.

Today, 2017 E-commerce has become a must in Africa, many African digital companies have
recognized its great potential by continuously developing new strategies to develop it and get
it adopted by local consumers. Also aware of its delay concerning the advent of the digital
compared to the western continent, Africa and its entrepreneurs are in a dynamism of
perpetual research of numerical innovation. Indeed, companies are developing new ways and

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digital solutions that can satisfy and get local consumers attention in order to get down their
low confidence of this new system online purchase which seems new and unknown to them.

However, many African countries are in phase with e-commerce whose economy is supported
by this activity (picture1). Indeed, the rise of increasing digital literacy, the growing adoption
of mobile phones, the expansion of the Internet, and the investment of companies in local e-
commerce platforms have helped to amplify the advent of purchases Online in some African
countries such as Nigeria which is considered as the leader of regional electronic commerce,
Ivory Coast, Senegal, Morocco ect.

There are, however, several barriers for companies operating in this field. Take the example
of JUMIA (Leader of e-commerce in Africa). The company is active in several African
countries, including Ivory Coast.

Even if In Ivory Coast the company is the leader at the local level, it still encounters
difficulties in deploying and exploiting all its potential in the various Ivorian regions.

(Picture 1)

http://www.mckinsey.com/industries/high-tech/our-insights/lions-go-digital-the-internets-transformative-potential-in-africa

JUMIA COTE D’IVOIRE

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JUMIA is an African e-commerce Platform and a Marketplace where sellers and buyers meet
to satisfy their common needs, the company was founded in 2012 in Nigeria tanks to the
collaboration of investors (MTN GROUP, ROCKET INTERNET, MILLICOM, ORANGE,
AXA, GOLDMAN SACHS).The company is Following a little bite the business model of
Amazon which is the conquest of new market, the company mother Jumia extended its business
throughout the Africa, its why it is called the leader of e-commerce African.

JUMIA COTE D’IVOIRE is located in Ivory Coast, its business turn around two main points
that are: selling products directly to customers and the marketplace. The peculiarity of JUMIA
COTE D'IVOIRE is to offer products of good quality, authentic at unbeatable prices. Company
uses many strategy promotions to attract customers.

Company have many competitive advantage that ensure its leader position in Ivory Coast that
are:

The efficiency of its services

Reliable and secure payment

Attractive and easy to use website

Perfect customer service

Diversity of product offered

The platform offers several online services that are:

Jumia market (marketplace), it allows sellers to open their own shop on jumia and sell and
manage it the one we are working on.

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Jumia travel, this service allows guests to book hotels with ease and speed. Jumia travel offers
different destinations with competitive prices.

Jumia food, allow customers to book food online,

Jumia Deals, its Classified ads website in Madagascar

Jumia house, its customers to purchase, sale and rental of private property online ect.

E-COMMERCE INDUSTRY ANALYSIS IVORY COAST

According to the World Bank, the Ivorian tertiary sector is growing continuously and
represented 62.5% of the Ivorian economy in 2014. At the heart of this sector, ecommerce has
become an essential channel for physical exchanges, the advent of 3G in Ivory Coast,
increased the number of Internet users. The internet users has exploded with a particular
interest for the social networks that are much frequented.

In Ivory Coast the infrastructures allowing the telecommunications companies to operate are
available and relatively in good condition, to complement this asset the explosive growth of
the Internet solidifies the development of e-commerce. In fact, over the last three years, the
number of computers connected to the Internet Ivory Coast has increased considerably, in
2015 that 37.45% of the Ivorian population had access to the Internet, which represents a
significant increase Compared to the 5% estimate in 2013 according to the Ministry of
Telecommunications.

In recent years, the ICT sector has grown strongly in the Ivorian market by realizing a
turnover of 1,000 billion FCFA in 2014, the sector contributed 7% to 8% of the national GDP
This expansion is on one hand was due to telecommunications companies such as Orange and
MTN and on the other hand to e-commerce companies benefiting from more than 7 million
Internet subscribers in the first quarter of 2015 according to the telecommunications
regulatory agency (ARTCI).

This growth has attracted foreign companies such as Kaymu, Carmudi jumia, specializing in
e-commerce, who have settled in the Ivory Coast and are experiencing a breakthrough in the
market, notably by launching mobile applications in order to facilitate Access to services such

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as e-shopping. Among the online sales Website in Ivory Coast, Jumia is the leader. The
peculiarity of these e-commerce sites is the ability to pay on delivery. In two years, in terms
of the turnover Jumia was multiplied by five.

Also this growth allowed the banking system to adapt their offers, in fact the banks have also
implemented banking services by telephone and using the Internet network or by simple
(message) in addition to the ATM services.

In 2014, according to the results delivered by the group leader, it is about a microwave per
minute that is sold on the platform. In 18 months, the site has increased from 300 orders / day
to more than 3000 orders / day.

CHAPTER TWO

OBJECTIF OF STUDY

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GENERAL OBJECTIF

Our objective is to analyze the behavior of jumia Cote d’Ivoire consumers in order to know
the different factors that drives them to buy or not on JUMIA.CI in order to improve what
need to be and make the company profitable by increasing its sales. The various elements that
they take into account as well as their brakes and motivations (market study realized by the
society jumia.Ci with its consumers).

JUMIA CONSUMER TREND ANALYSIS

Consumer per age

Based on this image, we understand that the most active age group in terms of purchasing on
the jumia.ci site is between (25-34) years that made 34% followed closely by (35-44 years)
which counts For (27%) and finally for those of (18-24) years who made (22%). Overall, the
most active are young people (students, trainees, workers) who are looking for a stable
fianacial situation, or are already stable.

Purcahse based on gender

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As it is found that the transactions made by men in terms of online shopping at the site is high
compared to that of women. This finding disapproves the saying that the feminine gender is
much more inclined to shopping than the masculine gender. However how can company
galvanize women, increase their implications in online shopping?

Geographic division

Abidjan is the economic capital of Cote d'Ivoire is the most important in terms of online
transaction on the JUMIA.CI website, this is normal as all infrastructures and large companies
are located in this city as well as 70% Of the urban population. In the other cities, we believe
that the company needs to develop expansion strategies, to increase its sales, because the fact
that all the company's activity is 74% concentrated on Abidjan remains An enormous risk, the
capital is open to all the competitors, citizens are on the lookout for competitive price
therefore for example if a company more competitive than Jumia.ci succeeds by imposing
itself the company will undergo a huge financial failure.

This is why we believe it can take advantage of its leadership position to increase its market
share in other cities (sub-regions).

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Conclusion of JUMIA consumer’s trend

Based on this study we can say that customers people that shop online on jumia are
predominantly young male dominated and located in the economic capital which is an urban
area. What should jumia do to increase sales? The resolution of this problem is quite simple,
we believe that firstly the company must:

- Establishing advanced logistics at competitive prices, most of the time the factor that
discourages customers in cities away from capital is the cost of transport, often more
expensive than the product itself. If the company puts in place a service that will ensure to
deliver to these customers without the costs being exorbitant we think that it will be able to
increase its sales in its areas.

-Set up collection points, which will also be information points in these cities for the purpose
of being physically represented, create the effect of brand awareness.

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CHAPTER THREE

OBJECTIVES AND STRATEGIC PLAN

The goal of my project is to find a strategy for JUMIA.CI to increase its sales, to get into the
details of this goal which is generalist, we will based on the information collected on jumia
consumers purchase trends. We found, after analyzing the consumer of jumia that 74% all the
activity of the company was concentrated on Abidjan (economic capital of the Ivory Coast).
The opportunity offered to jumia translates into this question:

How should the company increase its sales in other cities outside Abidjan?

FIRST OBJECTIVE

Increase jumia’s sub-region sales

jumia can increase its sales in the sub-regions by creating physical shops in its regions, which
will serve as point of collection and information request, this shop will allow jumia Cote
d'Ivoire to have exchanges in a Directly way with its customers in order to be close to them,
to collect information that it will be necessary as data’s.

Indeed thanks to a market study conducted by the company medianet.com on Facebook


figures in Ivory Coast, we have noted that the tops 5 of the different regions of Abidjan in
terms of Facebook using were:

Abidjan in first place with more than 3,300,000 Facebook users, alone, it holds almost all
Facebook users of the country, with a percentage of 94.28%.

The Bandama region comes second with over 55,000 users, or 1.66%, but if we compare it to
other districts by eliminating Abidjan, it holds 27.5% of Facebook users.

The region of bas-Sassandra has 53,000 users, it remains neighboring bandama with a user
percentage of Facebook 1.60%

Lacs and savannes region together have 58,000 Facebook users with a cumulative percentage
of 1.74%.

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http://blog.medianet.com.tn/blog/chiffres-cles-sur-facebook-pour-la-cote-divoire-pour-2017

We are interested in the users of different regions of Facebook Ivory Coast because according
to the data collected on the site https://www.similarweb.com/website/jumia.ci

87, 34% of the traffic of the website www.jumia.ci come from Facebook. With the data we
have collected on these different regions we can develop a campaign on Facebook to increase
(brand awareness) with (Facebook ads) by selecting the different regions, which leads us to
our second objective.

SECOND OBJECTIVE

Brand awareness creation through Facebook ads to sub-regions.

THIRD OBJECTIVE

Increase the sales of feminine items.

Based on the consumer trend research of jumia we noticed potential buyers were men, but the number
of female goods offered by the website is higher than men, then we think about proposing a strategy to
raise the level of sales of the feminine goods.

FOURTH OBJECTIVE

Creation of fast corners store


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As Amazon did to reduce delivery time which is one of the weaknesses of jumia.ci, although
of course who says corners store says payment to delivery, the strategy we Going offers will
be available only for customers who will pay their purchase online via (MTN mobile money)
but not wishing to pay the delivery fee. This customer will be able to go to take its package in
a deadline of 1 day after submitting and paying online in a fast corners store to pass this
deadline he would have to pay a daily maintenance fee.

FIFTH OBJECTIVE

Setting up of a loyalty link to first experience

By the way, we want the first purchases made by jumia's customers to be a show of
experience that will be linked to their loyalty to the brand. To do this we think about system
of miles (as in the aviation sector) creates a fidelity card system with miles to not only keep
customers from its first purchase but push them to repeat the purchase action in the Profit of
more miles that will serve him or her to purchase a product or to transform it into a coupon.

SIXTH OBJECTIVE

Increase the number of vendors using the marketplace

We think that the fact of increasing the number of vendors using the marketplace will
influence sales and in the same time increase company revenue.

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GOALS & STRATEGY TACTICS
OBJECTIVES
Increase sale in physical stores Looking for the well-known public place in ecah
sub-regions renting regions and rent a store then customised with
company logo;
Hire local sale agent trained;
Go to meet local population; explain to them how
to use jumia.ci, attract them with the loyalty card
and promotion code of first purchase.
Increase brand Facebook and Display ads on facebook;
awarness and e- outdoor ads Filter, by region, age, interest, and set the budget
commrce trust in targeting the of facebook action. Concerning outdoors ads just
sub-regions differents put them in public, wellknownand most visited
regions place (shopping center, main street)
consumers
Increase women Creat special Event woman day in last week of every 3 month
purchase women sale (paid period); promote women stuffs, make a raffle
events with reward ( promotion code to spend on the
websit) to increase the sale ( use emailing, phone
message.

Improve delivery Fast corner Be in agreement with some super markets to avoid
service store creation to build a physical store just for package
collection, it will be a win win collaboration with
the supermarket because jumia will generate traffic
in their store, the only of jumia in these action will
be: hire a sale agent to keep the package
Consumer Loyalty link to Online loyalty card creation: allows to customer to
loyalty strategy rewards accumulate loyalty points on a virtual discount
card to exchange against benefits on a next order.
Increase sellor Decrease Increase people that use th emarket place to sale (
number renumeration facebook content creation, share content on
on sale tax differens ivory Coast facebook page specialised on
sale to attract vendors,

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CHAPTER THREE

INTERNAL ANALYSIS

SWOT ANALYSIS OF JUMIA CI

The analysis of the strengths and weakness will allow us to have a clear view of the
functioning of CI jumia business.

STRENGTHS WEAKNESSES

Highly visible and known 5 No physical presence 1


Leader in Africa

Good delivering service 3 74% concentrated in Abidjan 2


Consumer centric

Big investors 5 Wrong invoices 2

Attractive website 4 Delivering service 3


Wide range of product

TOTAL 17/20 TOTAL 8/20

OPPORTUNITIES THREATS

increase sales through 4 Ivoirians Poor knowledge about 3


pickup point creation e-commerce

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Capacity to increase sellers 4 Lack of internet users 3
numbers

Capability to continue 4 No huge barriers to entry for 3


expansion and reach competitors
untapped regions

TOTAL 12/15 TOTAL 9/15


TOTAL S + O 29/35 TOTAL W+T 17/35

Based on the results of swot analysis, we see that the total strength and opportunity is greater
than weakness and threats, it means that the company has a potential to exploit, it can
continue to expand its business from The Ivorian territory if it seizes the right opportunity.

MC KINSEY OF JUMIA CI

Competitive position

FACTOR WEIGHT EVALUATION WEIGHTED


EVALUATION

1 Company size 0,4 * 95 38


3 Consumer 0,2 * 80 16
loyalty
2 Leverage on 0,2 * 95 28,5
distribution
4 Flexibility 0,2 * 80 16
TOTAL 1/1 Weight *by (evaluation) gives weighted evaluation
TOTAL 98,5

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Industry attractiveness
FACTORS WEIGTH EVALUATION WEIGTH
EVALUATION
1 Market size 0,3 * 90 27
3 Entry Barriers 0,2 * 80 16

2 Average 0,3 * 90 27
profitable
4 Price level 0,2 * 80 16
TOTAL 1/1 Weight *by (evaluation) gives weighted evaluation

TOTAL 86

Details
INDUSTRY ATTRACTIVENESS

LOW MEDUIM HIGH


86
98,5
HIGH
COMPETITION POSITION

MEDUIM
LOW

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Notice: Jumia must maintain its current position as a leader in the Ivorian market and also
seek to make its assets profitable. A bite as an amazon, the company has a problem of
profitability because even if it remains the leader and explodes its sales, the company does not
manage to be profitable enough. So maintaining its leadership position will enable it to
acquire more customers first and then expand its activities throughout the Ivory Coast areas in
order to be profitable. Also proposing an action to increase sales of jumia has a sense given
that the company fails to be profitable.

EXTERNAL ANALYSIS

COMPETITORS ANALYSIS

Company and rang Marketplace Online product service reputation Market share
assumption
sales
1 JUMIA.CI Yes Yes Diversified Delivering Leader in 60%
the
Big brands client
market,
Assistance
Quality well-
known

2 NO Yes Diversified, Delivering average 10%


AFRIMARKET.CI allow people at
Client
abroad to order
assistance
3 Vendito (Jumia) YES YES Deals delivering well- 10%
known
Yaato.CI NO YES Supermarket delivering Know 8%
deals
4 KAYMU YES YES DIVERSIFIED Yes Know 6%
(market.jumia.ci)

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As we can see most of the players in e-commerce in Ivory Coast are more or less known, the
difference between them remains their business model. As we can see only JUMIA offers An online
sales site with a market place, it allows the website to collect revenues from transactions between
buyers and sellers of its platform.

Also I think that the success of this company in Africa remains the diversification of the products it
offers also the most important criteria that mainly drives young people to buy its products is the
product brands. As you know Famous brand Copy is big problem for real brand to set a business in
African country, the same issue is faced by fashion company in Ivory Coast because fake market of
big Brand as (Adidas, Nike, Michael kors, guess, swatch) is huge and big issue is the price because it
sold at very low price than the real one. Jumia policy to make the difference is to give a guarantee of
its product even if the quality is at 100% sure, and offering great brands with competitive price to
incite Customers to buy on its website.

NB: the competitor of jumia afrimarket has a strategy that allowing the Ivoirians outside the territory
Ivorian wishing to buy articles for their parents living in Ivory coast to realize their wish without
stress. Because the website has set up a big delivery system, a logistics that allows him to deliver in
almost all the regions of the country. This concept is very interesting it will be in our
recommendations with more explanations in order to help jumia to increase its sales.

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PORTER’S 5 STRENGTHS

Using the porter’s diagram we want to focus on the different power relationships that exist
between the different actors in e-commerce industry in Ivory Coast.

The former actors (Jumia kaymu etc. ..) are aware of the threats that can be the spaces and
group of sale on Facebook for that they double more effort (promotion, communication) in
the services that they offer with the aim To keep their position.

Since the sector is not closed, there is no great barrier to the avenue of new entrants. Also new
entrants try either to be specialize in a niche market (such as Wasiri specialized in clothing) or
to put forward a competitive advantage that may depend on the company's strategy but most
of the time (the effectiveness of the Service delivery and promotions are the most used)

Competition is not very tough because of lack of investment also the most online sale
company known is JUMIA because of its leader position and many events participation.
However Competition plays the role of regulator on the market, when customer is not
satisfied with a supplier he can change, be reimbursed or even order another from another
supplier.

Ivoirians are more demanding about quality of the goods and do not hesitate to make returns
or to change supplier. Also companies regularly innovate on their offers to build customer
loyalty.

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CHAPTER FOURFTH

MARKETING STRATEGIES

SEGMENTATION

Based on the objectives we have set for increasing sales of jumia, we believe that geographic
segmentation is the most suitable for our objective. Indeed our strategy is to increase sales and
make the company known in the sub-regions. By segmenting in this way we are sure that the
different tactics we have proposed will help us reach our objective.

TARGETING

Target 1: In this special operation (conquest of jumia of the sub-regions) we target the entire
population, mass marketing, we target anyone who can connect to Facebook to internet via his
telephone or computer.

Target 2: for the objective of increasing the sale of women goods with the event (woman day)
we obviously target women of Ivory Coast than can connect to the internet and place an order
via the platform www.jumia.ci

POSITIONING

The positioning of jumia in the head of the African is the leader or the African Amazon
because the company offers a multitude of products at unbeatable prices. We intend to
maintain the same positioning with consumers in the sub-regions.

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MIX MARKETING

PRODUCT

The company jumia offers a platform (Marketplace) selling which offers several types of
products of international like (H & M, Zappos, Apple, LVMH, Blueberry, GAP, Diesel,
Levi's ect ...). The platform is attractive and easy to use. The products for sale are classified
by categories (electronics, kitchen accessories, beauty and body care) and by gender (man and
woman), it offers a complete catalog of quality products at affordable prices. The Jumia
platform is very visited (more of 200,000) visitors per week, over (800,000) unique visitors
per month, 4000000 page views and 9300,000 fans on Facebook. The platform uses two
payment systems in Côte d'Ivoire, payment on delivery and payment through money transfer
using the telephone operators MTN and Orange Cote d'Ivoire, this service is called «mobile
money “. One of the platform's capabilities as Marketplace is to allow sellers (both
individuals and professionals) to open their stores and publish their items and benefit from the
services of Jumia Cote d'Ivoire as delivery. The platform of jumia is the best in terms of e-
commerce in Côte d'Ivoire, it is also the reference number 1 in terms of online shopping. To
place an order online users should simply create an account t and place the order. The choice
of delivery is optional but the majority of users prefers the delivery offered by jumia.

https://artvisual.net/blog/konga-y-jumia-comercio-electronico-que-transforma-el-continente-
africano/,Konga and Jumia: electronic commerce that transforms the African continent

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PRICE

Jumia offers products at competitive prices, it is ahead of all e-commerce sites in Ivory Coast
and even in Africa. For example when you look to buy a product you go on jumia after
delivery you have the choice to return the product if a defect is reported and the return costs
are often taken care of by the jumia itself.

You can also find the same items at different prices (this is possible because sellers using the
Marketplace are free to fix their sales prices) this process makes the platform dynamic
because the customer can have different price choices of the same product. Jumia uses the
promotional strategy to sell its stocks. While its promotions jumia items prices are mostly
cheaper than market prices, so preferential buyers bought at jumia at reduced cost, benefit
from a home delivery with also the possibility of paying at home after verifying the quality of
the product. As smartphones become affordable and internet connection costs are reduced, the
Ivorian population is interested in buying in websites, the major element that attracts them to
these sites remains the quality factor, price and flexibility of payment. This situation is a
bargain for Jumia as it offers products at good value for money.

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PLACE

The brand image to jumia throughout Africa and in Ivory Coast allows it to have a strong
presence throughout the Ivory Coast through communication, advertising signs and effect
word of mouth. Also The Company is located in Abidjan Economical capital of Ivory Coast
precisely to plateau which allows him to manage all the deliveries of its stock. The company
is trying to have a representative base in each sub-region in order to facilitate deliveries but
this expansion strategy has not implemented yet.

PROMOTION

As regards the promotion Jumia broadcasts television commercials, the company uses digital
ADS, that is to say advertising mainly based on the Web, also billboards advertising and
small advertising methods.

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CHAPTER FIFTH

ACTION PLAN

TIMEFRAME

A timeframe is a set period of time in which certain events planned by the company occur. .
Based on our objective which is to increase Jumia Cote d'Ivoire turnover by 5% we have set
up an action plan on different channels to reach more people.

Channels Jan Feb Mar Apr Ma Jun Jul Aug Sept Oct Nov Dec
y

Physical store renting (nothing is linked with these chanels)


increase brand awarness with facebook and outdoor ads

Facebook
Outdoor ad
Increase women purchase (emailing+ phone SMS)
Email

Phone SMS
Instagram
Improve delivering service(nothing is linked with these chanels)
Consumer online loyalty card creation

Increase marketplace users ( facebook content sharing)


Facebook

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FINANCIAL INFORMATION

A company’s financial statements provide various financial information that investors and
creditors use to evaluate a company’s financial performance. Financial statements are also
important to a company’s managers because by publishing financial statements, managers can
communicate with interested outside parties about its accomplishment running the company.
Different financial statements focus on different areas of financial performances
(http://smallbusiness.chron.com/importance-companys-financial-statements-21332.html)

Here we will draw up all the financial information related to the different actions that we will
carry out, so we will reckon the costs as well as the expenses carried out.

ACTIONS

Our first action that is the increasing of store in the sub-regions we will:

Hire sales agent 2500$ per month

Rent every month 900$

Others fixed costs: 285$ per month

Transport will cost 150$ every month

Increase brand awareness with Facebook and outdoor ads generate sale in sub-regions

3000$ monthly in June and July, 6000$ to august from November and 5000 in December.

Facebook action cost 3000$/4 month

Outdoor action cost 10000$/2 month

Increase women purchase (emailing+ phone SMS)

Emailing cost 5000 every 3 month


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SMS cost 1000 every 3 months

Instagram cost 0$

Sale generated in Women event was 4000$ every month in each month the event occur.

Improve delivering service

Sale agent salary 495$ per month

Consumer online loyalty card creation

Online loyalty card platform costs: 2931 $ (year cost)

Sales generated by this action 1000$ from January to December

Increase marketplace users

Commission earn from each sales 3500$ each month to January from December

Company's opening bank balance on 1 January is $50000

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OPERATING PLAN

An operating plan is a short-term, highly detailedof how company implement the action plan
formulated by management to achieve its tactical objectives.

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Strategic priority: sale increasing by 5%
Expected outcome Operating objective Performance indicators Excetutive lead

Physical store renting in Increase total of visitors in the Sales agents


differents sub-regions in order store
to keep in touch with local
population
increase brand awarness with Make people aware about Look in sale through Sales agents,
facebook and outdoor ads the brand region comercial
Increase women purchase increase women items sale Sales increasing during Marketing staff
(emailing+ phone SMS) the action
Improve delivering service fast delivering customer feedbacks Sale agent

Consumer online loyalty card miles collection after a number of clients that Sale agent
creation purchase used they card to place
order
Increase marketplace users decrease vendor tax number of People Sale agent
registered as vendors

CONCLUSION OF THE ACTION PLAN

All the actions carried out aim to help jumia to be profitable, the financial data showed us that with $
50,000 investment Jumia can carry out all the actions and remain profitable throughout the year
(January to December) . We certainly did not use the actual data of the company because not being
listed on the stock exchange the actual information on these financial data were not made public. Our
work is therefore based on an estimate of more or less 70% reliable. So we can say that if the company
wants to expand its distribution network in the sub-regions it therefore applied the strategy.

. Regarding the action plan on increasing sales of women's products Jumia must also apply our
strategy because as reported in the market research that we use as a source of information, the majority
of jumia customers are men. To conclude, we believe that we have used sources of real information
and also proposes an action plan whose feasibility is 100%. Therefore, we believe that no barrier can

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hinder the feasibility and implementation of our actions because, as we said earlier, jumia is the leader
in Côte d'Ivoire, consumers appreciate the brand for its authenticity and the quality of its products, all
its assets will facilitate the implementation of the actions plan to the company.

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CONTINGENCY PLAN

In case all the proposed actions do not allow us to reach our goal or fail. the second action plan that we
can propose to the company is:

Reduce fixed costs

- reduce delivery costs by subcontracting with local delivery agencies, and tipping the fixed costs of
deliverymen to variable costs, it means that each delivery driver will be pay base on its total of
delivering.

- Reduced wage costs that are fixed, use more freelancers, per hour than fixed contract employees.

We have focused on reducing the cost of the company only and not on the marketing actions because
if a company cannot capitalize on marketing actions the best of the things it can do is to reduce the
variable coats. Here we offer fixed cost reductions as this is feasible and will allow jumia to have less
charge. Also even if its sales do not increase that costs are less it will be profitable.

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BIBLIOGRAPHY

Trevor L YOUNG, SUCCESSFUL PROJECT MANAGEMNT, Third Edition, The Sunday Times

Philip Kolter, MORTAL SINS IN MARKETING, Master Class, Maxima (french version)

http://www.lactuwebdedith.com/2015/11/cote-divoire-le-commerce-en-pleine.html

http://blog.medianet.com.tn/blog/chiffres-cles-sur-facebook-pour-la-cote-divoire-pour-2017

https://market.jumia.ci/tendances-ecommerce-cote-d-ivoire-2016/

https://www.rocket-
internet.com/sites/default/files/investors/Rocket%20Internet%20Annual%20Report%202015.pdf

http://1esecommerce.blogspot.kr/p/etude-de-cas.html

https://www.fratmat.info/index.php/economie/e-commerce-en-cote-d-ivoire-pourquoi-les-start-up-ne-
decollent-pas

https:/ /www.african-alliance.org/en/

https://www.socialbakers.com/statistics/facebook/pages/detail/551510601579096-jumia-online-
shopping-fashion-electronics-and-more?country=ivory-coast

https://www.bloomberg.com/news/articles/2017-04-04/rocket-internet-s-africa-retail-unit-strikes-gold-
in-ivory-coast

https://www.marketresearch.com/MarketLine-v3883/Johnny-Rockets-Group-Strategy-SWOT-
10894276/

https://www.textmaster.com/blog/jumia-african-amazon/

https://appablog.wordpress.com/2015/07/15/jumia-cote-divoire-2-years-of-existence/

https://www.rocketinternet.com/sites/default/files/investors/Rocket%20Internet_Annual%20Report%2
02016_English_9.pdf

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