Business Plan For Franchising - Ethio Telecome. - Updateddocx

Business Proposal for Aziza Seido Import & Export to Distribute Telecom Services & Products
Aziza Seido Import & Export
Business Proposal
for
Distributing of Telecom Services & Products

(Granting of a full Franchising Partnership from Ethio telecom)
in
Selected regions of Ethiopia
Addis Ababa
December, 2021
Full Franchising Partnership Request Proposal Page i

Table of Contents
Executive Summary.......................................................................................................................1
1. Introduction and Background...............................................................................................7
1.1. General..................................................................................................................................7
2. Background of the Company.................................................................................................8
2.1. Company Description and Ownership..................................................................................8
2.1.2. Past Performance............................................................................................................9
2.2. Company mission, vision and values statements................................................................10
2.2.1. Vision of the company.................................................................................................10
2.2.2. Mission statement of the company...............................................................................10
2.2.3. Core values of the company.........................................................................................10
2.2.4. Business goals of the company....................................................................................10
2.2.5. Keys to Success............................................................................................................11
3. Business operation of the company.....................................................................................12
3.1. Major Business activities of the company..........................................................................12
3.1.1. Existed Main product lines...........................................................................................12
3.2. Future Products................................................................................................................12
3.2. Location and facility...........................................................................................................13
3.3. Operation.............................................................................................................................13
3.3. Product Support...................................................................................................................13
4. Marketing Analysis and Strategy.......................................................................................14
4.1. Marketing Analysis.............................................................................................................14
4.1.1. General.........................................................................................................................14
4.1.2. Ethio telecom services and products – Situation analysis............................................14
4.1.3. Demand of telecom services.........................................................................................16
4.1.4. Target Market Segmentation........................................................................................17
4.1.5. Competition and Buying Patterns.................................................................................18
4.1.6. Market Concluding Remark.........................................................................................19
4.2. Marketing Strategy and sales plan......................................................................................19
4.2.1. Marketing Mix Assessment and Recommendation – Marketing Strategy...................19
4.2.2. Sales Forecast.................................................................................................................3
4.2.3. Marketing Plan...............................................................................................................1
4.2.4. Marketing Strategy implementation...............................................................................1
Full Franchising Partnership Request Proposal Page ii

4.2.5. Competitive Edge...........................................................................................................2

5. Risk Management Plan..........................................................................................................3
5.1. Risk Management Plan.........................................................................................................3
5.2. SWOT analysis.....................................................................................................................3
I. Strength.................................................................................................................................3
6.2. Conclusion.........................................................................................................................4
6. Management Summary..........................................................................................................5
6.1. General..................................................................................................................................5
6.3. Organizational Structure.......................................................................................................5
6.2 Personnel Plan........................................................................................................................6
Full Franchising Partnership Request Proposal Page iii

Executive Summary
I. Company Description and Ownership
Aziza Seido Import & Export is an established and registered Company in Ethiopia and began its
operations on September 18, 2007 with Birr 5,000,000 capital investment, with principal offices
located in Addis Ababa, Bole Sub city, Wereda room no.180. The company has been engaged in
various sectors of business and has a combined around 14 years of experience in import and export
and other business services.
Our company is among first company to introduce Bajaj Motor cycle and three wheelers in country.
We were operating in 32 strategic towns with our own outlet and dealer’s branches.
The primary object clause and Nature of business of the company is importing and exporting of
different items, roasting and distributing premium arabica coffee in Ethiopia and neighboring
countries, serving big supermarkets, and Hotels and distribution of Ethio telecom products and service.
Moreover the company planned to expand the existed business and undertaken this project study to
check the market, technical and financial feasibility of this project. Our partnership with Ethio
telecome started since 2012, with our sister company ‘Seido international trading” we were the main
distributor of voucher card and sim card in eastern hararge.
The purpose of this business plan is to establish a franchising partnership with ethio telecom to resell
all ethio telecom product & services as per ethio telecom’s standard.
According to the market study and the economic performance of the country coupled with the growth
of industries, will make it favorable for investors to participate in the reselling of telecom services
business. Hence, it is prudent that there will be ample opportunities with regard to the reselling of the
below mentioned products and services market in selected 7 regions of the country.
Due to high demand of ethio telecom product and services is everywhere in the country, the
entrepreneur strong-willed to to create a business to business (B2B) relationship which is franchising
partnership, and work jointly with with ethio telecom to resell all ethio telecom product & services to
its clients come into this field and will be successful.
The objective of this business is
Full Franchising Partnership Request Proposal Page 1

 To create a business to business (B2B) full franchising relationship and work jointly with ethio
telecom on providing telecom products and services to its clients
 To obtain an authorization letter from Ethio telecom to distribute its products to the specified
target markets
 To achieve the sales growth by 20% in year 2. Aggressive gains in market share and
increased sales and become the leading distributor in the target markets.
 To add the variety of products and product lines according to the target market demand
particularly telecom services in Year 2, to increase the net profit by reducing costs and
meeting sales goals.
 To alleviate capability by continuous training and emerge to knowledge based designed,
developed products. Thus ,enhance technology transfer
 To give employment opportunity
 To close the gap in specific telecom product supply chain that always causes product/service
scarcity. This will make specific telecom products available to the target market at all times.
II. Business Activities
Business lines description

Currently, Aziza is actively involved in importing, exporting and distributing and other business
services.
Generally, the main product line of the company presented as follows:

 Import, distributing and after sales service of Bajaj Motor cycle and three wheelers
 Export of roasted coffee
 Roasting and distributing of premium arabica coffee
 supermarkets
 Hotels
 Other general commodities
 Telecom services - lines description

Future Products
Aziza plans to increase its current products and services while adding new telecom products and
services like telebirr services, bills, airtime top-up, SIM replacements, and reconnection etc. available
on the market by creating a partnership with telecom companies predominantly Ethio telecom.
III. Marketing analysis and strategy

Marketing Analysis
The digital economy space in Ethiopia is clearly entering a “liftoff phase” thanks to a mix of both
macro and ecosystem drivers (fast growth, rapid urbanization, growing internet penetration, improving
networks, and better data affordability), improved public policies, and rising numbers of private
entrants and funders.
Ethio telecom provides high quality, innovative and affordable telecom products and services to
enhance the development of the country and seriously working to build reputable known brand. The
followings are considered as the most demanded telecom products and services in Ethiopia.
 Mobile voice prepaid

 Post paid
 land line, fixed line and fixed DSL
 Data WIFI
 Package sales - Bundle
 Mobile device - Small device and Bigger device
 Bill payment
 Telebirr
 SIM Card
The demand for telecom services mainly emanated from the economic growth, growth in population
and growth of industries and the demand is obviously enormous. From what was discussed in the
preceding section, it is not difficult to conclude that the demand for telecom services will grow in the
future in the whole country as well as the target 7 regions and the market characteristic shows that
there is steady demand for the products/services.

Target Market Segmentation

Products and services offered by ethio telecom/Aziza cannot be attractive to all people in equal terms,
because differences in needs and wants among people. Therefore we selected the following are our
target market in the selected regions
 Young people
 Restaurants and Hotels
 Shops
 Transport companies
 Entertainment centers
 Fund raisers
Marketing Strategy
 Moreover, Aziza plans to increase its current products and services while adding new telecom
products and services like telebirr services, bills, airtime top-up, SIM replacements, and
reconnection etc. available on the market by creating a partnership with telecom companies
predominantly Ethio telecom.
 The selling price of the Aziza’s products will be based on the ethio telecom guideline and the
same than those of local competitors.
 Sales incentives like free delivery service, advisory services etc
 Regular visits to customers and target markets
 Retailers friendship – good public relations with retailers, this will make them form a clique of
retailers that they can always count on.
 Special awareness contact marketing will be carried out by a dedicated staff within the first two
months of the start-up of the business.
 Brand: The reason Aziza decided to work with Ethio telecom is due to strong and unique
brand of the products of the telecom industry.
 Supplier’s networks: Our network of suppliers has its own existing network of customers
and in some cases it may suit a supplier to promote Aziza to this network.
 Public Relations: Because of the communication and social skills of the shareholders &
because of the events & business activities undertaken there, Aziza will be quite newsworthy.

Sales Forecast
We are operating in six regions, Addiss Ababa (NAAZ, SAAZ,EAAZ) , diredawa(ER), Djimma
(SWR), Hawassa (SR), Ambo (CWR), welso, Adama (SER). Each region has separate team, one
supervisor and six sales employees.
In terms number, there are around 559 Total number of active agents in Addis Ababa which is
currently number of agents are around 414 and Newly registered agents to be active in next week
estimated 145.
However, Aziza planned to have more than 1,000 new agents in next month and to sell a Birr
3,000,000 Value of products each month at the beginning. However, Based on the marketing analysis
and experience, the company intended to increase its sales volume and revenue in the coming months
using different strategies.
Aziza is well positioned to take on the available market in the target market regions and is quite
optimistic that will meet the set target of generating enough profits in the coming years of operation
and grow the business. It has been able to critically examine the industry, it is analyzed the chances
in the industry and it has been able to come up with planned to increase the sales volume of its
items and revenue by 30% in upcoming months and the number of agents increased by 10%.
The total annual revenue generated by the business company at initial operation (6 months) is
estimated at Birr 6,151,000.00. Accordingly, considering the projected demand and competition the
project is planned to increase the sales volume by 10% in the subsequent half year and years.
Moreover, the company will generate a profit throughout its operation life. The gross profit of the 6
months will grow from Birr 526,000.00 to 847,128.26 during the life of the project under
consideration.
IV. Management Summary

There will be a general manager that oversees the performance of the company and the day to day
activities of the company and based on the nature of the process involves a number of operations and
staffs; the Company has three functional departments subdivided into sections.

The company's management philosophy is based on responsibility and mutual respect. Aziza is
essentially a vibrant team of young, smart and well-trained professionals experienced in the areas of
customer care, marketing and management. All staffs eager to make the mark in the Ethiopian
business landscape by delivering high quality products and best service beyond its client’s
expectations.
Currently the company has 25 employees in total out of which 15 are females and remaining are
males.
Moreover we have additional individuals to maintain a day-to-day operations and the company
planned to hire additional two sales workers for each office and one manger. In addition to this, it is
intended to hire additional sales for outdoor sales.

1. Introduction and Background

1.1. General
Aziza Seido Import and Export company has carried out proper assessment /scanning of the internal,
business environment in which it operates in its business and likes to promote itself into a higher
developmental interaction resulting from the fast growth rate in the country, hence presents the
following a concise business Plan to submit to Ethio telecom.
The business plan is furnished with written description of the business lines of the Company, coupled
with the marketing techniques of each respective department, the markets potential & clients for the
traded & potentially tradable items.
The primary object clause and Nature of business of the company is importing and exporting of
different items, roasting and distributing premium arabica coffee in Ethiopia and neighboring
countries, serving big supermarkets, and Hotels and distribution of Ethio telecom products and service.
Moreover the company planned to expand the existed business and undertaken this project study to
check the market, technical and financial feasibility of this project.
The purpose of this business plan is to establish a franchising partnership with ethio telecom to resell
all ethio telecom product & services as per ethio telecom’s standard.
According to the market study and the economic performance of the country coupled with the growth
of industries, will make it favorable for investors to participate in the reselling of telecom services
business. Hence, it is prudent that there will be ample opportunities with regard to the reselling of the
below mentioned products and services market in selected 7 regions of the country.
This clearly reveals that there is immense untapped fruit bearing business opportunity for companies
like our company Business engaged in selling of ethio telecom product and services, new services,
telebirr services, bills, airtime top-up, SIM replacements, reconnection…etc business.
Due to high demand of ethio telecom product and services is everywhere in the country, the
entrepreneur strong-willed to to create a business to business (B2B) relationship which is franchising
partnership, and work jointly with with ethio telecom to resell all ethio telecom product & services to
its clients come into this field and will be successful.

2. Background of the Company

2.1. Company Description and Ownership
Aziza Seido is an established and registered Company in Ethiopia and began its operations on
September 18, 2007 with Birr 5,000,000 capital investment, with principal offices located in Addis
Ababa, Bole Sub city, Wereda room no.180. The company has been engaged in various sectors of
business and has a combined around 14 years of experience in import and export and other business
services.
The Company has approximately 200 m2 building facility includes office, stores as well as ample
parking and is equipped with office facilities In addition to this, the company has owned three vehicles
for smooth operating of the business.
Our company is among first company to introduce Bajaj Motor cycle and three wheelers in country.
We were operating in 32 strategic towns with our own outlet and dealer’s branches.
In 2012 we start coffee Roasting Company called Raha Coffee Roasting, and engaged in roasting and
distributing premium arabica coffee in Ethiopia and neighboring countries. The company is currently
serving big supermarkets, and Hotels in Addis Ababa. The company is backed with management team
that have combined direct experience of 50 years in sourcing and exporting green arabica coffee from
Ethiopia.
Our partnership with Ethio telecome started since 2012, with our sister company ‘Seido international
trading” we were the main distributor of voucher card and sim card in eastern hararge.
Since then the partnership continues and in 2019 we start with EVD sales, and six-month back our
company got a chance to be among those who joined tele birr mobile money.
(SWR), Hawassa (SR), Ambo (CWR), welso, Adama (SER)
Generally, the company’s management comprised of a seasoned group of locals and expatriates many
with a great deal of experience with over a decade of hands-on practical experiences.

The General Manager, Mrs. Aziza Seido, has well experienced in different business activities for the
long period of time. During this time, the promoter got a vast knowledge and skill on import, export
and distributing of ethio telecom services field. With this reliable experience, the promoter is known
how to manage and lead any organization to profit and they also know to how to handle different
challenges in the working environment. Moreover, the promoters have a very good reputation with
customers, dealers, banks and different financial organizations.
Beside to this the company has developed a strong business exposure and relationship with local and
foreign businesses and suppliers.
2.1.2. Past Performance
Currently, We are actively operating in six regions, Addiss Ababa (NAAZ, SAAZ,EAAZ) ,
diredawa(ER), Djimma (SWR), Hawassa (SR), Ambo (CWR), welso, Adama (SER) to sale EVD
services
In terms of financial performance, the company’s sales revenue was slow in the beginning time.
However by providing selective trainings to sales team and establishing stringent fellow up with each
agent the sales revenue becomes higher and now our transaction has grown by 30% more.
 Initial transaction the first 3 months was Birr 1 Million

 But this month our transaction reached Birr 1 Million
 Our plan is to make it double in the next month.

2.2. Company mission, vision and values statements

2.2.1. Vision of the company
To be a nationally competitive telecom services provider in the country .
Therefore the company's strategy is to create a limited geographical niche for itself where there are no
potential competitors and is to continue to expand its service to other areas. The company's coverage
area is constantly increasing, as the areas are becoming aware of the company's presence.
Consequently, we will keep Standard Outlet with good branding where Etio telecome office is not
available.
2.2.2. Mission statement of the company
To best serve customers & stake holders in an effort to increase shareholders equity by exceeding their
expectation, be an active participant in the ethio telecom strategic plan by consistent supplying &
distribution of telecom services and products in the country.
2.2.3. Core values of the company

The company shall strictly adhere to the values & norms which the management group nurtures & all
employees live up to it.
 Quality products & service provision to customers
 Always available to serve clients
 Continual improvement
 Striving to do the best and give services for the benefit of clients
 Employees are most indispensable assets
 Ethics & Integrity shall be recognized as milestone of the Company
2.2.4. Business goals of the company

 To create a business to business (B2B) full franchising relationship and work jointly with ethio
telecom on providing telecom products and services to its clients
 To obtain an authorization letter from Ethio telecom to distribute its products to the specified
target markets

 To achieve the sales growth by 20% in year 2. Aggressive gains in market share and
increased sales and become the leading distributor in the target markets.
 To add the variety of products and product lines according to the target market demand
particularly telecom services in Year 2, to increase the net profit by reducing costs and
meeting sales goals.
 To generate sufficient cash flow to finance the activities of the company, and the future
growth and development of the company.
 To deliver orders on time to the esteemed customers of the company and to avail items to the
target market at a very affordable price.
 To alleviate capability by continuous training and emerge to knowledge based designed,
developed products. Thus ,enhance technology transfer
 To give employment opportunity
 To close the gap in specific telecom product supply chain that always causes product/service
scarcity. This will make specific telecom products available to the target market at all times.
2.2.5. Keys to Success
The key success factors for a business in the retailing industry are as mentioned below:
 Accurate production planning, cost controlling, and accurate budgeting are needed to ensure the
financial health of the business.
 The temptation to concentrate only on growth, while neglecting profitability, must be avoided.
 Offering a comprehensive line of innovative, top quality products.
 Creating close relationships with key decision makers in government and non government
organizations, enterprises and universities.
 Having an organization with a unique spirit that makes people eager to do business with us.
Once people join us, they can't imagine working anywhere else.

3. Business operation of the company

3.1. Major Business activities of the company
3.1.1. Existed Main product lines
services.
 General - lines description
In the export business, Aziza is used to export agricultural products such as coffee and sesame seeds to
Middle East, China, India, and Europe for the past several years. By being reliable exporting partner,
Aziza has built its image as a reputed company. Further, Aziza Trading is representing overseas com-
panies in Ethiopian market, especially in big tenders, for supply of Bajaj Motor cycle and three
wheelers ….etc.
Generally, the main product line of the company presented as follows:

 Import, distributing and after sales service of Bajaj Motor cycle and three wheelers
 Export of roasted coffee
 Roasting and distributing of premium arabica coffee
 supermarkets
 Hotels
 Other general commodities
 Telecom services - lines description
Aziza has obtained the authorization from Ethio telecom to be a distributor of voucher card and sim
card for leica in eastern hararge in Ethiopia since 2012. Aziza takes pride in having brought several
telecom products and service to this area.
3.2. Future Products

As the most progressive company in the industry, Aziza plans to offer a greater number of products
and services in the future so as to create another dimension of competitive advantage. So that our
customers will feel secure, we will subscribe to the security services offered by the telecom providing
center of which we are a part.

Aziza plans to increase its current products and services while adding new telecom products and
services like telebirr services, bills, airtime top-up, SIM replacements, and reconnection etc. available
on the market by creating a partnership with telecom companies predominantly Ethio telecom.
3.2. Location and facility
The Company has approximately 200 m2 building facility includes office, stores as well as ample
parking and is equipped with office facilities In addition to this, the company has owned three vehicles
for smooth operating of the business.
The company’s office is equipped with computers, printers & LAN connectivity and availed of 20M²
separate space/room for shop operations
3.3. Operation
Aziza Company will be opened 6 days a week to provide telecom services to its customers in all
branches and outlets (considering of ethio telecom shop working hours) with hours as follows:
 Monday to Thursday 8:00 am – 12:30 pm and 2:00 pm to 8:00 pm
 Friday 8:00 am – 11:30 pm and 2:00 pm to 8:00 pm
 Saturday 8:00 am – 2:30 pm
3.3. Product Support
Aziza is also listed on the bidder list for several companies and organizations and receive bid packages
by mail, fax, and email which is checked daily. The company is currently on the FDRE Public
Procurement & Property Administration Agency mailing list and is working with the governmental
and non-governmental organizations and related enterprises for the past years.

4. Marketing Analysis and Strategy

4.1. Marketing Analysis
4.1.1. General
Ethiopia is an emerging country showing continuous high economic growth during the last years
Ethiopia and placing the country in a remarkable growth track. And the growth is expected to be
continuing dynamically.
The digital economy space in Ethiopia is clearly entering a “liftoff phase” thanks to a mix of both
macro and ecosystem drivers (fast growth, rapid urbanization, growing internet penetration, improving
networks, and better data affordability), improved public policies, and rising numbers of private
entrants and funders.
Widespread digitization across the economy’s key sectors can yield benefits of macroeconomic
significance by removing long-standing payment problems, by reducing high transaction and trading
/intermediation costs, by activating previously unused or underutilized labor/other resources, by
boosting sales volumes/channels for both small and large businesses alike, and by raising foreign
exchange earnings potential.
4.1.2. Ethio telecom services and products – Situation analysis

Digital payment systems especially mobile payments are becoming very important part of a modern
life. More than ever before people need financial services at their finger tips embedded in their life not
as a separate service that people go to some place to get it. In Ethiopia financial service are very far
from this dream. We are still in the old way of using financial services at the bank. Our society is cash
and bank dependent for almost all financial services.
Today with the advancement of technology the world has become very connected and well suited for
day to day life of people. Mobile payments and social media have impacted many countries to a
greater extent. They have made life easier, communication instant and convenient.
In the area of digital payment especially mobile payments, in Ethiopia there were no convenient and
accessible solution available hence our society is very dependent on cash-based payments for day to

day life and business. Our country is left behind and our citizens missing many opportunities that
could have been possible with mobile payment system.
1. Main products and services
Ethio telecom provides high quality, innovative and affordable telecom products and services to
enhance the development of the country and seriously working to build reputable known brand. The
followings are considered as the most demanded telecom products and services in Ethiopia.
 Mobile voice prepaid – is one that you pay for upfront when you purchase a SIM card
or a recharge.
 Mobile voice Post paid – is you will pay when you receive a bill at the end of the month
based on your usage.
 land line, fixed line and fixed DSL – Cable internet that works over phone lines
 Data WIFI – wireless technology used to connect devices to the internet
 Package sales - Bundle – package internet, voice and SMS services
 Mobile device - Small device and Bigger device
 Bill payment –
 SIM card - new and replace
The demand for aforementioned telecom products and services is considered as it will grow in the
2. Telebirr
Telebirr is a unified super app that has both mobile payment, and communication functionalities. The
functionalities include but are not limited to the following list.
 Convenient mobile payment: - the society needs a convenient mobile payment system that
replaces cash and enables cashless transactions just with mobile device.
 Interoperability: - the customers need to pay any beneficiary from their mobile app
irrespective if the beneficiary’s bank account. This should work the same weather both payer
and beneficiary have same bank or different.
 Smooth bill payment: - Bill payers want to pay without going to a bank and without having
necessarily Commercial Bank of Ethiopia account. They want smooth bill payment from their
wallet.

 Smooth fund raising: - Fund raisers want to have one wallet account for fund raising and
people from who use any bank account can pay whatever amount they need from wherever
they are without going to any bank.
 Payment gateway: - Small and medium enterprises, self-employed people as well as big
enterprises who want to sell services or products need a smooth payment gateway where they
can collect payment for their sales.
 Note print: - Our government wants to reduce note prints that are injected to the economy as
old notes became out of use due to wear and tear. Embracing mobile payments reduce or
replace the use of cash hence printing notes will reduce accordingly.
 Homegrown app: - Our society needs a homegrown app for payment usage that understands
and incorporates the local context like Ethiopian languages, Ethiopian calendar, Ethiopian
culture etc.
3. Distribution of products and services
Starting a telecom products distribution business can be really rewarding work. After all, it is solving
an immediate issue for the customer and are working on something that truly care about.
With businesses and processes changing daily, there will always be demand for new features, products
and services for the business. Additionally, there are several different business models and pricing
tiers you can implement that will allow you to reach all types of customers.
Telecom Products Distribution Businesses have the ability to choose the clients they work with and the
businesses income stream tends to be predictable based on the number of customers you have signed
up. This makes financial planning and outlooks much more seamless. The demand for telecom
products distribution business is increasing year over year and the business is known to be relatively
recession proof.
4.1.3. Demand of telecom services
The demand for telecom services mainly emanated from the economic growth, growth in population
and growth of industries and the demand is obviously enormous. From what was discussed in the
preceding section, it is not difficult to conclude that the demand for telecom services will grow in the

4.1.4. Target Market Segmentation
There is a set of macro and micro environmental factors that affect marketing decisions of Aziza
marketing management in direct and indirect manners. Macro-environmental factors impacting Aziza
company marketing decisions are identified through the process of environmental scanning and they
include political, economic, social, cultural, technological and legal factors. Micro-environmental
factors, on the other hand, relate to the impact of internal and external organizational stakeholders and
the extent of competition in supermarket industry in general.
Products and services offered by ethio telecom/Aziza and other businesses cannot be attractive to all
people in equal terms, because differences in needs and wants among people. Therefore businesses do
engage in market segmentation and targeting practices.
The Ethiopian market is huge in terms of total population size and in terms of untapped market which
is not yet exploited. Our target market is especially young people who are tech savvy and want to
communicate, socialize and pay online with their mobile devices. Currently majority of the Ethiopian
population is young. These young segments of our population are very adaptive to new technologies
that makes life simpler. They are the main users of our social media and payment service app.
Merchants are also our target market specially for our mobile payment service. These groups includes
businesses of all kinds such as restaurants, shops, hotels, transport companies, entertainment centers
etc., who want to collect their payment from sales of services and goods digitally. Merchants suffer
from cash-based transactions such as counterfeit notes, robbery and loss of money, and inconvenience
of holding large amount of cash on daily basis. As a country of 110 million people Ethiopia has
millions of merchants who are a huge market for our payment and social media app.
Last but not least fund raisers, who want to raise money for different social causes (nonprofit causes)
are other segment of our customers. Fund raisers include organization or individuals who raise money
to support disabled or aged people or who have other similar objectives.

The table below presents target customer segment for ethio telecom/Aziza’s products and services:
Table 1: Segmentation, Targeting and Positioning for Aziza
Segmentation bases Target customer segment

Addiss Ababa (NAAZ, SAAZ,EAAZ) , diredawa(ER),
Region Djimma (SWR), Hawassa (SR), Ambo (CWR), welso,
Adama (SER)
Geographic Density Urban and Rural
Age All age categories
Gender Males and females
Income Low ,middle and high income category
Occupation Students, employees, professionals
Education High school, technical, Bachelors,
Working class, skilled working class, lower middle class,
Social status
middle class
Demographic Family size Single individuals, nuclear and extended families
Psychographi Lifestyle Traditionalists, contended conformers
c Personality Easy-going, determined
Occasions Regular
Benefits sought Cost advantage, variety
User status Active user
Behavioral Attitude Skeptical, positive
The table above illustrates target customer segment for a specific products under studied.
Geographically, we will focus on market located in the 6 regions mentioned above.
4.1.5. Competition and Buying Patterns
The telecom products and services market is currently served consistently. However the customer base
of our company’s products is very diverse in the target market. The growth will only come entirely
from overall market growth and from taking market share away from our competitors.
However most of distributors that are involved in the target markets (6 regions) have less extensive
distribution networks. Hence, there will not be a stiff competition rather there is an ample opportunity
for new entrants is regional cities.

4.1.6. Market Concluding Remark
According to the market study and the economic performance of the country coupled with the living
standard of the people will make it favorable for investors to participate in the distribution of products
and services. Hence, it is prudent that there will be ample opportunities with regard to the Ethio
telecom products and services instrument market.
4.2. Marketing Strategy and sales plan

4.2.1. Marketing Mix Assessment and Recommendation – Marketing Strategy
Marketing is an essential role of every business organization and marketing activities must be
performed for the survival of every business organization. Although many factors affect an
organization’s marketing strategy, all marketing decision-making can be classified into four strategy
elements, sometimes referred to as the marketing mix or the four P’s: Product, price, place
(distribution) and promotion. While these four factors are important individually, their real
significance lies in the mix, the unique way they are combined into a careful plan or strategy. The
combination of these four factors is the foundation of any marketing plan.
3.5.1. Product
services. Moreover, Aziza plans to increase its current products and services while adding new
telecom products and services like telebirr services, bills, airtime top-up, SIM replacements, and
reconnection etc. available on the market by creating a partnership with telecom companies
predominantly Ethio telecom.
Specifically the products and service mix for the envisaged project are
1. Mobile voice prepaid 6. Mobile device - Small device and

2. Post paid Bigger device
3. Land line, fixed line and fixed DSL  Bill payment .
4. Data WIFI 7. Tele birr
5. Package sales - Bundle 8. SIM Card

2.5.2. Pricing
The selling price of the Aziza’s products will be based on the ethio telecom guideline and the same
than those of local competitors.
The known fact about branded products business is that it has a stable retail price which applies
generally to all marketers by the supplier companies. It is not foreseeable that a single wholesaler will
be able to manipulate the price of the commodity. In such a price taker market, marketers make other
marketing efforts to promote sales instead of price cut.
2.5.3. Distribution
Distribution strategies are concerned with the channels a firm may employ to make its goods and
services available to customers. Channels are organized structures of buyers and sellers that bridge the
gap of time and space between the distributor and the customer.
The primary aim of the business is by becoming a distribution agent for Ethio telecom for the specific
items and offered to the retailing shops. The owner intends to carry out multiple strategic marketing
activities that will promote the distribution business which will generate high turnover for the
business.
2.5.4. Advertising and Promotion
Promotion strategies are concerned with the planning, implementation, and control of persuasive
communication with customers. Hence Aziza intended to advertise all its products through all
possible means of promotions and its agents located in the different parts of the country.
To be specific, Aziza will take the following measure to promote sales:
 Sales incentives like free delivery service, advisory services etc

 Regular visits to customers and target markets
 Retailers friendship – good public relations with retailers, this will make them form a clique of
retailers that they can always count on.
Moreover, Special awareness contact marketing will be carried out by a dedicated staff within the
first two months of the start-up of the business.

2.5.5. People
The company shall be given importance to their employees and Aziza will be motivating its
employees by recognizing and giving rewards for the achievements of its employees and for their
suggestions and improvements. In addition to this, Aziza shall develop, trained and empower
employees in order to take the initiative and to decide what is right. Hence treating employees’ will
help the company to grow more in the distribution industry.
4.2.2. Sales Forecast

(SWR), Hawassa (SR), Ambo (CWR), welso, Adama (SER). Each region has separate team, one
supervisor and six sales employees.
In terms number, there are around 559 Total number of active agents in Addis Ababa which is
currently number of agents are around 414 and Newly registered agents to be active in next week
estimated 145.
However, Aziza planned to have more than 1,000 new agents in next month and to sell a Birr
3,000,000 Value of products each month at the beginning. However, Based on the marketing analysis
and experience, the company intended to increase its sales volume and revenue in the coming months
using different strategies.
Hence the following table shows the Sales Forecast for Aziza’s specified items for six consecutive
months.
 Selling program of Tele Birr
Table 4.1: Selling program of Tele Birr in coming months
Years
Sales Forecast in
Birr Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Number of agents 615 676.39 744.03 818.43 908.46 1,008.39
Tele Birr 2,000,000.00 2,600,000.00 3,380,000.00 4,394,000.00 5,712,200.00 7,425,860.00

Aziza is well positioned to take on the available market in the target market regions and is quite
optimistic that will meet the set target of generating enough profits in the coming years of operation
and grow the business. It has been able to critically examine the industry, it is analyzed the chances
in the industry and it has been able to come up with planned to increase the sales volume of its
items and revenue by 30% in upcoming months and the number of agents increased by 10%.
 Revenue
The total annual revenue generated by the business company at initial operation (6 months) is
estimated at Birr 6,151,000.00. Accordingly, considering the projected demand and competition the
project is planned to increase the sales volume by 10% in the subsequent half year and years. (See
Table 4.2)

Table 4.2: Revenue in birr and Selling program of telecom products and services in coming months
Sales and profit Months
Forecast in Birr Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
commission Sales Sales amount in Sales amount Sales amount in Sales amount in Sales amount in Sales amount
S/n Telecom services
/Profit Quantity birr in birr birr birr birr in birr
Mobile voice
1 15% 1000 50,000.00 55,000.00 60,500.00 66,550.00 73,205.00 80,525.50
prepaid - pcs
2 Post paid - birr 15 500 500,000.00 550,000.00 605,000.00 665,500.00 732,050.00 805,255.00
land line, fixed line
3 140 250 125,000.00 137,500.00 151,250.00 166,375.00 183,012.50 201,313.75
and fixed DSL - Pcs
4 Data WIFI - % 5% 100 50,000.00 55,000.00 60,500.00 66,550.00 73,205.00 80,525.50
Package sales -
5 15 500 50,000.00 55,000.00 60,500.00 66,550.00 73,205.00 80,525.50
Bundle - Pcs
Mobile device -
6 Small device and 10% 1000 4,000,000.00 4,400,000.00 4,840,000.00 5,324,000.00 5,856,400.00 6,442,040.00
Bigger device - %
7 Bill payment - Birr 9 5000 500,000.00 550,000.00 605,000.00 665,500.00 732,050.00 805,255.00
8 tele birr - LS 5% 1.00 300,000.00 330,000.00 363,000.00 399,300.00 439,230.00 483,153.00
9 SIM card - Birr 6 1,000.00 50,000.00 55,000.00 60,500.00 66,550.00 73,205.00 80,525.50
total 6,151,000.00 6,187,500.00 6,806,250.00 7,486,875.00 8,235,562.50 9,059,118.75
Sales revenue in 6 months 43,926,306.25

 Gross profit
The most important assumption in the Projected Profit and Loss statement is the gross margin. In
summary, the company will develop its customer base and reputation and the growth will pick up
more rapidly towards the second and third phases of the business. The following table explains our
services and determines gross margin.
Based on the table below, the company will generate a profit throughout its operation life. the gross
profit of the 6 months will grow from Birr 526,000.00 to 847,128.26 during the life of the project
under consideration.

Table 4.3: Gross profit in birr in coming months
Sales and profit Months

Forecast in Birr Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Sales Gross Gross
commissio Gross profit Gross profit in Gross profit Gross profit in
S/n Telecom services Quantit profit in profit in
n/Profit in Birr Birr in Birr Birr
y Birr Birr
Mobile voice prepaid 12,078.83
1
- pcs
15% 1000 7,500.00 8,250.00 9,075.00 9,982.50 10,980.75
12,078.83
2 Post paid - birr 15 500 7,500.00 8,250.00 9,075.00 9,982.50 10,980.75
land line, fixed line 56,367.85
3
and fixed DSL - Pcs
140 250 35,000.00 38,500.00 42,350.00 46,585.00 51,243.50
4,026.28
4 Data WIFI - % 5% 100 2,500.00 2,750.00 3,025.00 3,327.50 3,660.25
Package sales - 12,078.83
5
Bundle - Pcs
15 500 7,500.00 8,250.00 9,075.00 9,982.50 10,980.75
Mobile device - 644,204.00
6 Small device and 10% 1000 400,000.00 440,000.00 484,000.00 532,400.00 585,640.00
Bigger device - %
72,472.95
7 Bill payment - Birr 9 5000 45,000.00 49,500.00 54,450.00 59,895.00 65,884.50
24,157.65
8 tele birr - LS 5% 1.00 15,000.00 16,500.00 18,150.00 19,965.00 21,961.50
1,000.0 9,663.06
9 SIM card - Birr 6 6,000.00 6,600.00 7,260.00 7,986.00 8,784.60
0
total 526,000.00 578,600.00 636,460.00 700,106.00 770,116.60 847,128.26
Gross Profit in 6 months 4,058,410.86

4.2.3. Marketing Plan
We have planned to have a product launch ceremony where important people will be invited for the
official product launch event. These people will include government officials, bank managers, and
different business people. This event will be the first official launch and promotion of the product to
important people.
Following the product launch event, we will conduct a series of marketing campaigns in social media,
on mainstream media and Print, door to door in merchant’s business office, have workshops on
university campuses. These different campaigns will target different customer segments at different
places.
Door to door campaign hill help us pitch people in a one to one session. These include the working
people who usually spend their time at offices. We will show the app their help them download it and
start using it by elaborating its benefits and outcomes.
Door to door events for merchants will be given special attention because if there is no payment
receivers there will not be payers. Hence, we will pitch, train and help merchants start accepting
payment using Telebirr platform.
University campus events will help us the students and show them how they can use the app to buy
things online.
4.2.4. Marketing Strategy implementation
Aziza’s Marketing Strategy will focus on the following key areas:
Brand: The reason Aziza decided to work with Ethio telecom is due to strong and unique brand of
the products of the telecom industry. The brand will communicate the ethical purpose of the business
and appeal to our target market.
Supplier’s networks: Our network of suppliers has its own existing network of customers and in
some cases it may suit a supplier to promote Aziza to this network.

Public Relations: Because of the communication and social skills of the shareholders and because
of the events and business activities undertaken there, Aziza will be quite newsworthy.
4.2.5. Competitive Edge

The part of the business that will attract the customers is not only the products, but also the experience
that consumers will gain when they see aesthetically the products. By keeping the wide variety of
available products, and ordering the quality of several items, the promoter hopes to stand out among
the few smaller competitors.
Through our combined 14 years of sales and marketing experience on distribution industry, we have
built industry relationships and networks that we will leverage to build our business. The main
competitive edge over the other competitors could be summarized as under:-
 Strategy: Our ability to build a comprehensive long-range marketing strategy business strategy
 Financing. The company is currently working to obtain financing that will enable it to carry
out its operations.
 Relationship: Our relationships with decision makers.
 Distribution: Our ability to secure distribution relationships with a unique combination

of leading agents by creating a very effective channel of distribution that will make us
indispensable.
 Expansion: Aziza is currently provided a property for expansion and display, sale, and to
increase its product line..
 Training: The company intended to prepare training session for agents, customers coupled with
staffs.
 Hire more employees. The company plans to employ additional expatriate people who could be
responsible for sales, maintenance, and delivery. This will enable the existed staffs to focus on
the core of the business.
 Increase advertising: The company is currently working to expand its advertising campaigns.

 Establish more alliances. Aziza planned to contact with telecom companies specifically,
Ethio telecom, which will enable the company to acquire a franchising partnership agreement
certificate to distribute selective products and service items directly.

5. Risk Management Plan

5.1. Risk Management Plan
One of the best tools for risk management plan is a SWOT analysis. Before making the decision to
involve or expand in the market of telecom services and products, one should carefully analyze the
associated risk factors. A SWOT analysis can help in analyzing these factors, which play an important
role in making the decision. Hence the SWOT analysis for the Aziza Seido Import & Export is
presented below.
5.2. SWOT analysis

I. Strength
The company has the following strengths:
 Long term and good relationship with ethio telecom

 Actively Operating in six regions and have a number of agents
 Introducing and Successful marketing and management strategic plan to the firm
 using multi-channel strategy with the help of existing distribution networks
 Ability to deliver orders on time with the help of its own delivery trucks
 Excellent sales staff and experienced management with strong knowledge of existing products
and have a skilled agents.
 Good internal communications and Quick decision making ability
 Long term and good relationship with customers
 Knowledge of industries served in the distributing sectors
 high sales growth rate
II. Weakness
The company has the following weakness:
 Over-dependence of products on the ethio telecom
 Lack numbers of delivery in terms of large number of products
 Things have slowed down and change could occur and work may slow down in 2022

 Currently struggling to meet deadlines - too much work

III. Opportunity
The company has the following opportunities:

 Escalating demand based on rapidly growing economy and growing population.
 Growing telecom sector

 High demand for product and is a growing market.
 Loyal customers
 Wide range of target market
IV. Threat
The company has faced the following threats:

 Delayed of distributing caused by a large number of product or other reasons.
 Price fluctuations and macroeconomic instability.
 Sales could grow slower than expected. The business is structured as a variable cost business
so the investment does not have to outpace the revenue stream.
6.2. Conclusion
The distribution channels play an important role in the provision of products of any company in any
market. The timely provision of products in the local markets can help the clients to get their required
products. The staff of the company should be smart and vigilant, which can have capability to meet the
requirements of the clients. The distribution channel should have latest models of vehicle, which can
run round the clock to meet their business demands
Generally based on the SWOT analysis there are many opportunities created in the country. there is an
Escalating demand based on rapidly growing economy and growing population, Growing telecome
service sector and High demand for product. In addition to this the company has Loyal customers and
Wide range of target market.

6. Management Summary
6.1. General
Aziza Seido Import & Export is an established and registered Company in Ethiopia and has been
engaged in various sectors of business and has a combined around 14 years of experience in import,
export and distributing business.
The company's management philosophy is based on responsibility and mutual respect. Aziza maintains
an environment and structure that encourages productivity and respect for customers and fellow
employees. Aziza's management style reflects his personality. All employees of the company are
motivated by a personal stake in the company's success. The company is not hierarchical, and all
employees work together cooperatively to reach the company's goals.
6.3. Organizational Structure
As shown in the proposed organization structure, there is a general manager that oversees the
performance of the company and the day to day activities of the company.
Moreover, the Company has three functional departments subdivided into sections. The departments
are Technical, Finance & Administrative, Marketing and Procurement. This arrangement is made
because the nature of the process involves a number of operations and staffs. Each service, department
and section is headed by qualified and experienced professionals.
General Manager
Legal advisor Executive Secretary
Finance & administration

Marketing department Procurement department
department
Cost and General

Sales Promotion Local purchaser
accountant section

Personnel & General
Marketing Officer Foreign Purchaser
service section
6.2 Personnel Plan
Aziza's management is highly experienced and qualified. The personnel table assumes slow growth in
employees, and moderate pay raises. Salaries are quite low across the board. The company will
institute an aggressive bonus plan, linked to exceptional company performance. The bonus
plan, coupled with the opportunity to work for a company that has such tremendous growth potential,
should help attract and retain key personnel. .
Aziza is essentially a vibrant team of young, smart and well-trained professionals experienced in the
areas of customer care, marketing and management. All staffs eager to make the mark in the
Ethiopian business landscape by delivering high quality products and best service beyond its client’s
expectations.
Currently the company has 25 employees in total out of which 15 are females and remaining are
males.
The general manager of the company with their qualification and experience presented as follows.
I. Aziza Seido - General Manager of the company. His educational background includes a
B.Sc. in ______________. She is well experienced in different business activities for the
long period of time and she got a vast knowledge and skill on import, export and
distributing of ethio telecom services field.
II. __________________: B.Sc/BA. Degree in ______________ and ___ year’s relevant
experiences in different positions.
III. ___________: B.Sc/BA Degree in ___________- and 10 years relevant experiences.
IV. __________________: B.Sc Degree in Computer Science and Diploma in Human
Resources Management and 10 years relevant experiences.
V. ________________: BA degree in Procurement and 9 years relevant experiences.
Moreover we have additional individuals to maintain a day-to-day operations and the company
planned to hire additional two sales workers for each office and one manger. In addition to this, it is
intended to hire additional sales for outdoor sales.

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Business Proposal for Aziza Seido Import & Export to Distribute Telecom Services & Products

Aziza Seido Import & Export

Distributing of Telecom Services & Products

Selected regions of Ethiopia

Full Franchising Partnership Request Proposal Page i

Full Franchising Partnership Request Proposal Page ii

4.2.5. Competitive Edge...........................................................................................................2

Full Franchising Partnership Request Proposal Page iii

Full Franchising Partnership Request Proposal Page 1

II. Business Activities

Business lines description

Generally, the main product line of the company presented as follows:

Full Franchising Partnership Request Proposal Page 2

III. Marketing analysis and strategy

 Mobile voice prepaid

Full Franchising Partnership Request Proposal Page 3

Target Market Segmentation

Full Franchising Partnership Request Proposal Page 4

IV. Management Summary

Full Franchising Partnership Request Proposal Page 5

Full Franchising Partnership Request Proposal Page 6

1. Introduction and Background

Full Franchising Partnership Request Proposal Page 7

2. Background of the Company

Full Franchising Partnership Request Proposal Page 8

2.1.2. Past Performance

 Initial transaction the first 3 months was Birr 1 Million

Full Franchising Partnership Request Proposal Page 9

2.2. Company mission, vision and values statements

To be a nationally competitive telecom services provider in the country .

2.2.2. Mission statement of the company

2.2.3. Core values of the company

2.2.4. Business goals of the company

Full Franchising Partnership Request Proposal Page 10

2.2.5. Keys to Success

Full Franchising Partnership Request Proposal Page 11

3. Business operation of the company

 General - lines description

Generally, the main product line of the company presented as follows:

3.2. Future Products

Full Franchising Partnership Request Proposal Page 12

3.2. Location and facility

3.3. Product Support

Full Franchising Partnership Request Proposal Page 13

4. Marketing Analysis and Strategy

4.1.2. Ethio telecom services and products – Situation analysis

Full Franchising Partnership Request Proposal Page 14

Full Franchising Partnership Request Proposal Page 15

4.1.3. Demand of telecom services

Full Franchising Partnership Request Proposal Page 16

4.1.4. Target Market Segmentation

Full Franchising Partnership Request Proposal Page 17

Table 1: Segmentation, Targeting and Positioning for Aziza

Segmentation bases Target customer segment

4.1.5. Competition and Buying Patterns

Full Franchising Partnership Request Proposal Page 18

4.1.6. Market Concluding Remark

4.2. Marketing Strategy and sales plan

1. Mobile voice prepaid 6. Mobile device - Small device and

Full Franchising Partnership Request Proposal Page 19

 Sales incentives like free delivery service, advisory services etc

Full Franchising Partnership Request Proposal Page 20

4.2.2. Sales Forecast