Food Truck to Ethiopia
· Define what kind of food
· Coffee is a big deal
· https://theculturetrip.com/africa/articles/can-coffee-tourism-save-these-countries-coffee-species-from-extinction/
· Largely vegetarian
· Gluten Free / vegan friendly
· Maybe Breakfast food
· https://ethiopianfood.wordpress.com/2014/05/01/a-short-qurs-on-ethiopian-breakfast/
· Maybe our company can have an app so that people can order and pay on the app before picking up their food - this way we have more to cover under “technology environment”
· By around 9 or so each morning, the Fojol Bros.’ Twitter page announces Benethiopia’s location. They begin serving between 11:30 and noon, and they serve until they run out of food, usually by 2. A line begins to form soon after the truck arrives at its daily destination, and by noon it’s a dozen people long and stays that way until there’s nothing left to sell, at which time they tweet once more that they’re closed for the day. https://ethiopianfood.wordpress.com/2011/07/21/ethiopian-food-on-wheels/
Table of Contents
1. Introduction
a. Nestled in the center of the country,Ethiopia‘s capital city, Addis Ababa, is quickly evolving and growing. Addis captures much of the diversity unique to the country, with over80 distinctive languages and numerous dialects belonging to a variety of religious communities and peoples. The city takes pride in its diversity, which is perhaps best represented by the city’s food culture and lively restaurant scene
b.
2. About Company-Laura
Located in the bustling area of Addis Abada, Sishu is one of Ethiopia’s most popular and trendiest restaurants. While Sishu serves a variety of sandwiches, the restaurant has become known for the burgers. With homemade sweet buns, delectably seasoned ground meat, tangy homemade sauces, and crisp French fries, both locals and tourists palates go wild when tasting the food at Sishu. Drawn mostly from word of mouth, crowds flock to Sishu throughout the day.
Initially established by American expat Mathews Teshome and local Selamawit Deneke, the twosome was able to create a space with delicious food based on both American and Ethiopian cultures. Sourcing as many ingredients locally as possible, the restaurant focuses on food quality and taste. Since the demand for burger places in Addis is extremely high, customers would likely forgive a miss in quality. However, the two partners are very focused on constantly improving and keeping service standards high.
To maintain high service standards, the restaurant hires more staff than the minimum requirement and slowly training new employees to avoid mistakes. Moreover, new employees come by referrals, and are often a mix of Ethiopians and expats, so that cultural barriers and differences can be navigated through the different perspectives. Additionally, Sishu keeps productive high and employees happy by paying them double what they would make elsewhere maximizing its limited resources with the formation of revenue .
Food Truck to Ethiopia· Define what kind of food· Coffee is a .docx
1. Food Truck to Ethiopia
· Define what kind of food
· Coffee is a big deal
· https://theculturetrip.com/africa/articles/can-coffee-tourism-
save-these-countries-coffee-species-from-extinction/
· Largely vegetarian
· Gluten Free / vegan friendly
· Maybe Breakfast food
· https://ethiopianfood.wordpress.com/2014/05/01/a-short-qurs-
on-ethiopian-breakfast/
· Maybe our company can have an app so that people can order
and pay on the app before picking up their food - this way we
have more to cover under “technology environment”
· By around 9 or so each morning, the Fojol Bros.’ Twitter page
announces Benethiopia’s location. They begin serving between
11:30 and noon, and they serve until they run out of food,
usually by 2. A line begins to form soon after the truck arrives
at its daily destination, and by noon it’s a dozen people long
and stays that way until there’s nothing left to sell, at which
time they tweet once more that they’re closed for the day.
https://ethiopianfood.wordpress.com/2011/07/21/ethiopian-
food-on-wheels/
Table of Contents
1. Introduction
a. Nestled in the center of the country,Ethiopia‘s capital city,
Addis Ababa, is quickly evolving and growing. Addis captures
much of the diversity unique to the country, with over80
distinctive languages and numerous dialects belonging to a
variety of religious communities and peoples. The city takes
pride in its diversity, which is perhaps best represented by the
2. city’s food culture and lively restaurant scene
b.
2. About Company-Laura
Located in the bustling area of Addis Abada, Sishu is one of
Ethiopia’s most popular and trendiest restaurants. While Sishu
serves a variety of sandwiches, the restaurant has become
known for the burgers. With homemade sweet buns, delectably
seasoned ground meat, tangy homemade sauces, and crisp
French fries, both locals and tourists palates go wild when
tasting the food at Sishu. Drawn mostly from word of mouth,
crowds flock to Sishu throughout the day.
Initially established by American expat Mathews Teshome and
local Selamawit Deneke, the twosome was able to create a space
with delicious food based on both American and Ethiopian
cultures. Sourcing as many ingredients locally as possible, the
restaurant focuses on food quality and taste. Since the demand
for burger places in Addis is extremely high, customers would
likely forgive a miss in quality. However, the two partners are
very focused on constantly improving and keeping service
standards high.
To maintain high service standards, the restaurant hires more
staff than the minimum requirement and slowly training new
employees to avoid mistakes. Moreover, new employees come
by referrals, and are often a mix of Ethiopians and expats, so
that cultural barriers and differences can be navigated through
the different perspectives. Additionally, Sishu keeps productive
high and employees happy by paying them double what they
would make elsewhere maximizing its limited resources with
the formation of revenue sharing.
Aiming to be one of the biggest companies in Ethiopia within
10 years, Sishu is currently in the mist of launching an
expansion plan with take-out branches to sell burgers at more
affordable prices to a larger population segment. To aid in Sishu
expansion, our company will come in and form a joint venture
with the company to open Sishu food trucks. In accordance with
Sishu’s plans for expansion, we will offer ready to eat,
3. affordable, and limited options on the food truck menu. Because
of the restaurants reputation and positive name association,
partnering with Sishu will be a smart way to branch into the
food truck market in Ethiopia helping both us and Sishu with
the restaurants plans for expansion.
3. Why the Ethiopia? -Taylor
a. Ethiopia, for starters, is Africa’s largest growing economy.
The rise of Ethiopia’s GDP and GDP growth has been largely
attributed to its large increase in industrial activity including
billions of local and foreign investments, infrastructure, and
manufacturing. This flood of funding and infrastructure has led
to an increase in jobs and exports, creating the fast growing hub
of Africa that it currently is. The investment pools are so large,
in fact, that Ethiopia is coined the ‘New China,’ and unlike
other African countries, Ethiopia has a stable administration
that sees manufacturing as a central part of its growth strategy.
Further, the increase of jobs has led to a higher valued currency
and, in basic terms, more coin in people's pockets. This rise of
gdp per capita has allowed for a higher budget for consumers.
However, because it is still a third world economy, with a
relatively high unemployment still an important factor
businesses must have low prices. We chose Ethiopia for this
factor. The increase in spending is very targetable at financially
achievable numbers. That's why a Food Truck would be ideal in
this location because the demand for cheap good cuisine that is
quick and close (the truck would have a set route for the right
target consumers).
b. https://www.weforum.org/agenda/2018/05/ethiopia-africa-
fastest-growing-economy/
4. Estimated Size of Market - Taylor
a. The estimated size of the market targets the working middle
class segment of Ethiopia. Unfortunately the estimated size of
this class isnt documented nor is it possible to find exact
numbers or even estimates at that point. The only size of the
Market that we can estimate is the entire population itself.
4. b. need to research more on this)
5. Segmenting and Targeting Consumers -Shao
a. Segmenting:
i. Geographic :
1. Country: Ethiopia
2. Region: Addis Ababa (Capital) Dire Dawa(Autonomous
Region)
3. Population density: Central business district (CBD), urban,
ii. Demographic
1. Age: all ages
2. Gender:Male, Female and other
3. Group: Students, workers, travelers and people in different
industries
b. Targeting Consumers:
i. Our main customers will come from schools, hospitals, office
areas, shopping malls and people around popular attractions.
Situational Analysis
6. Economic Environment - Laura
It is widely know that Ethiopia is currently one of the fastest
growing economies in the World. With a strong strategic
location, the country has strategic dominance when connecting
to European and Middle Eastern markets.
Moreover, Ethiopia is land locked and has been using
neighboring Djbouti’s port for the previous two decades, but
now due to recent peace with Eritreea, Ethiopia will be able to
access Eritean ports making international trade more accessible.
With slightly over 100 million people, Ethiopia is the second
most populated country in Africa with the region’s fastest
growing economy.
While the economy is growing, Ethiopia is also one of the
poorest with an average per-capita income of around $783
aiming to reach lower-middle-income status by 2025.
In the last 10 years, Ethiopia encountered strong growth average
10.3%, compared to a 5.4% regional average. Currently, the
countries GDP growth is around 7.7%. Most of this growth
comes from construction with lower contributions coming from
5. manufacturing and agriculture.
The recent higher economic growth created positive trends in
the reduction of poverty in rural and urban areas with
population living in poverty decreasing from 30% in 2011 to
24% in 2016. Currently, poverty levels continue declining.
To continue the reduction of poverty, a Growth and
Transformation plan is in place to continuing expanding
psychical infrastructure by means of public investments with
the goal of transforming the country into a hub for
manufacturing. Moreover, the plan is targeting an average GDP
growth of 11% per year, and the industrial sector is planned to
grow about 20% on average, which will create more jobs.
In all, the largest economic challenges in Ethiopia are
increasing the speed of poverty reduction and maintaining its
positive economic growth, which both require sizeable
advancement in job creation as well as enhanced government
administration. While the government is devoting a high percent
of budget to investments and pro-poor programs, Ethiopia is
still faces many challenges.
“Overview.” World Bank,
www.worldbank.org/en/country/ethiopia/overview.
7. Cultural Environment -Laura
a. Ethiopian cuisine is served without cutlery, as the custom is
to eat with one’s hands.
https://theculturetrip.com/africa/ethiopia/articles/africaethiopiaa
rticlesaddis-ababa-s-top-10-restaurants-ethiopia-s-culinary-
gems/
b. Cultural Environment
c. Communication style
i. Speak in soft tones, loud voices are seen as aggressive
ii. Honour and shame are very important. Going out of their way
to make sure they are not embarrassing another.
d. Business style
i. Meeting start with extended social pleasantries since
relationships are very important.
ii. Meetings rarely have an end time
6. iii. Performing favors indicate friendship. Since they generally
only do business with those that they consider friends they
rarely say no. However, this does not indicate that they will
actually do what they’ve agreed to.
e. Food
i. Beef, chicken, and lamb is generally only eaten on special
occasions.
ii. During Christian fasting periods, no animal products can be
eaten and no food or drink can be consumed from midnight until
3pm.
f. Etiquette
g. Religion
h. Commisceo Global Consulting Ltd. Afghanistan - Language,
Culture, Customs and Etiquette. www.commisceo-global.com. 1
Jan. 2019 https://commisceo-global.com/resources/country-
guides/afghanistan-guide
8. Political and Legal Environment -Val
a. In Ethiopia, the rapidly increasing and largely the young
population have further contributed to an increasing labor force.
As a result, employment creation and poverty reductions remain
one of the enduring development objectives (EEA, 2009). In
response to such problems, the Ethiopian government has
undertaken several reforms. The major reforms include the
2002/3-2004/05 Sustainable Development and Poverty
Reduction Program, the 2005/6-2009/10 Plan for Accelerated
and Sustained Development to End Poverty, and the five years-
2010/11-2014/15 Growth and Transformation Plan (MoFED,
2002; 2006; 2010). These documents reiterated the importance
of microenterprise development as a means of reducing
unemployment and poverty.
i. https://www.thereporterethiopia.com/article/alternative-
serving-snack-and-drink-streets
ii. 2002/3-2004/05 Sustainable Development and Poverty
Reduction Program
iii. 2005/6-2009/10 Plan for Accelerated and Sustained
Development to End Poverty
7. b. The Informal Sector
i. 2.4.1.3.Government rules and regulations The cause of
increment of informal sector is tax burden, as anybody knows
neoclassical economic model if marginal tax increase,
substitution effect that people choices leisure than work as same
as people substitute informal sector by reducing working time
from formal sector (Belev, 2013). The legalist school is also
notion that the informal sector considered as the reaction of
micro-entrepreneurs (Soto, 1989).
ii. Alebachew, Amsale. “Street Vending and Local Authorities
in Addis Ababa City: Challenges and The Way Forward.”
Research Gate, June 2017,
www.researchgate.net/publication/232273779_Street_Vending_
At_Meenagna_Ethiopia_Challenges_and_Prospects.
c. Addis Ababa City Administration gave plots of land to 7500
street vendors with a view to integrating informal
businesspeople operating on the streets to the main stream
small-scale legal businesses. According to Addis Ababa Deputy
Mayor Takele Umma, 35,000 street vendors are registered with
the administration including the 7500 vendors who are given
plots of land. The Deputy Mayor said “We are settling street
vendors in identified plots of land which are suitable for
business and will work hard to also settle the remaining
vendors.” Abdulfetah Yusuf, Head of Addis Ababa City Trade
Bureau, said informal trade had been one of the challenges of
the city. He said it contributed to robbery, disorder and unfair
i. “Ethiopia: City Administration Gives Street Vendors Plots of
Land.” 2Merkato: The Biggest Ethiopian Business Portal, 6
Nov. 2018,www.2merkato.com/news/alerts/5527-ethiopia-city-
administration-gives-street-vendors-plots-of-land.
ii. Brown, Alison, and Peter Mackie. “Politics and Street
Trading in Africa: Developing a Comparative Frame.” Articulo
- Journal of Urban Research, Journal of Urban Research, 1 Jan.
2018, journals.openedition.org/articulo/3612#tocto2n3.
d. The street vendors have to present an identification card from
a kebele and have capital below 10,000 Br. A registration fee of
8. 70 Br is also mandatory. The vendors then receive a taxpayer
identification number (TIN) and a badge to wear at all times
while working in the marketplaces.
e. Gashu, Tariku. “Ethiopia: More Street Vendors Receive Spots
in the Marketplaces.” AllAfrica.com, 5 May 2018,
allafrica.com/stories/201805080950.html.
9. Technology Environment - Shao
a. Faced with huge food safety issues and the associated
challenges of foodborne disease outbreaks
b. The government offers a wide range of undergraduate and
postgraduate courses in food science and technology at
universities across the country to promote industrialization.
c. Ethiopia's food economy industrialization may promote
changes in dietary patterns
d. Increased levels of unhealthy diets that lead to the prevalence
of foodborne acute and chronic diseases
https://worldfoodscience.com/article/state-food-science-and-
technology-ethiopia
10. Competitive Environment -Val
a. Street Vendors
b. Street Markets
c. Coffee Tours
d. Found a couple on Trip Advisor/Yelp
Marketing Plan
11. Market Entry Strategy
a. Joint Venture-
https://www.selamtamagazine.com/stories/visionary-burger
i. We, as an American Food Truck company can have a joint
venture with a restaurant in Ethiopia so that we provide the food
truck, go through the legalities, and establish health policies,
and the Ethiopian restaurant can provide the food, cooks, and
workers and run it almost independently - we would get
commission and provide new equipment as necessary
1. We can have a few food trucks with different restaurants /
different cities
9. b. Licensing/Franchising
i. We could assume we have an established food truck business
in the U.S. and franchise it to Ethiopia, but might need to go
into our U.S. food truck business history in the paper and how
we plan to find franchisors in Ethiopia
c. Ownership
i. We can fully own every aspect of it and hire workers from
there to run it, taking into consideration that we do not want to
worsen their unemployment by “us” working there but rather
hire from there
12. Product Decisions
a. Product Design: Adaptation
i. Food Truck design: adapts to the culture but with a modern
look to draw attention and customers, and also draw tourists
looking for something familiar
ii. Menu: same thing, local and foreign food fusion made by
local chefs, maybe we could do local options since it would be
the most popular with a “special of the week” i.e. tacos, general
tso chicken, veggie burgers
1. Vegan, veggie, and gluten free options for adaptation
iii. Environmentally friendly containers, silverware, etc
iv. Maybe a poster with health policies since it’s such a big
issue
v. Seasonal coffee and maybe get involved in coffee tours
vi. Employ locals to consider their high unemployment
b. Production Decisions
i. Suppliers: how can we ensure continuity of supply?
1. Current big food/equipment suppliers?
2. Problems with existing suppliers?
3. Volumes required?
4. Frequency of shipment, best day and arrival time on market?
5. Transport arrangements, e.g. whose responsibility is it to
arrange transport?
6. Storage arrangements, if any?
7. Potential and techniques for developing sales?
13. Pricing Decisions
10. a. Adaptation/simple pricing: depending on on the market entry
strategy we choose:
i. Joint Venture: Prices of the joining restaurant
ii. Licensing Franchising: We do initial research/advisors for
pricing, then if the franchisor sees a need to change prices
based on inflation/food shortages, we can meet with them and
come to decisions for ideal prices
iii. Ownership: we would need a local advisor or someone to
inform us on market price fluctuations so that we can adapt to
them in a timely manner
14. Distribution Decisions
a. Similar to pricing decisions
b. Also maybe do some research on popular food market
areas/cities, areas/cities that do not have many street vendors
but one could be established, and areas that are just not an
option due to high poverty/low population
c. Need to consider location of supplier and government
regulations for street vendors
d. Need to consider how we get the physical food trucks to
ethiopia
15. Promotion Decisions
a. If joint venture, restaurant would promote as their mobile
location
b. Maybe we can distribute the leftover perishables to a group
in need (need to do research i.e. children in poverty, maybe
older community doesn’t get retirement benefits and end up in
need, don’t know about their homeless population, etc.)
i. Don’t have to advertise it, but word would get around
c. Budget for advertisement
i. Not sure the value of the coin but we might not be making a
lot and still have to pay for physical food truck and the shipping
costs of it from here to ethiopia or the cost of
manufacturing/buying it in ethiopia, wages, supply, potential
permissions from the government, etc
d. Message selection
i. Have to make sure it’s inline with adaptation
11. e. Get involved in local events
i. Market food festivals
ii. Food/coffee tours
iii. Find more
f. Give out coupons for first time commers
16. Conclusion
References
Appendix
Project Description
PROJECT (Group Effort) Students will prepare a marketing
plan to introduce a domestic product or service or idea into a
foreign market.
Papers should be approximately 15-20 double-spaced pages of
text, exclusive of exhibits and/or illustrations. (These may be
interspersed with the text or included as appendices but should
not be counted in the text.)
Groups will be formed by the instructor on Wednesday of Week
1, following the gathering of pertinent information from all
students. You will find the information I need in the syllabus
below or in the Course Overview section of BBLearn. Groups
will be able to collaborate online using tools available in
Blackboard LEARN (a group discussion area, Bb Collaborate,
etc.) or using other external tools that all members within the
group select and agree upon.
Organization of the paper is left to the students. Two
requirements are (1) that there is some mechanism for breaking
the discussion into coherent sections (headings of some sort)
and (2) that references are cited appropriately in footnotes or in
a listing at the end of the written paper (endnotes are preferred
by this professor). This includes proper citation of valid,
reliable websites. Plagiarism will result in action consistent
with University policy on academic dishonesty.
12. It is expected that the groups will incorporate material from
class and the text into the written project. It is also expected
that students will include information gleaned from other
classes they have taken, integrating relevant strategies, skills,
and tactics.
Neatness, grammar, spelling, presentation style, and
organization will be important factors in grade determination.
Additionally, effective prose will be rewarded in its own right;
poor communication will hurt your grade.
DESCRIPTION:
To gain experience in organizing a complete
international/global marketing program, each group will
identify some subset of consumer or industrial wants or needs in
a foreign market that are not currently being met or are not
being met satisfactorily. Applying knowledge gained from
class, students will research the chosen wants and needs and
propose recommendations in the form of a new product or
service or idea, or an improvement over an existing product or
service or idea. Students will present this new idea in a
preliminary marketing plan. Students should incorporate
terminology and concepts from this class as well as quantitative
and analytical techniques gleaned from other courses and
personal experience.
The first part of the project is the situation analysis. It
allows you to understand the economic, cultural, political/legal,
competitive, technological, and financial environments in which
your product or service exists. Students should provide specific
data on environments that are relevant to your particular
project. You must clearly identify the want or need your
proposed product or service fulfills and for whom. This
includes a specific estimate of the size of the market.
13. Not all of the following topics may apply to the product or
service or idea you choose, and conversely this is not an
exhaustive list. Discuss those that are pertinent:
1. How do buyers currently go about buying existing
products to satisfy the basic need? This is the who, what,
where, when, why and how of the purchase decision.
2. Can the market be meaningfully segmented? Who are
you targeting? Why?
3. Nature of the competition. Who is already out there?
Why will your firm's offering be better? How will your firm
compete? Include differentiation and positioning issues.
4. Environmental climate (not just the weather, the other
relevant environments!).Which environments have the greatest
impact on your product?
5. What else will you need to know to plan?
The second part of the project uses the situation
analysis to develop a marketing plan for the proposed product
or service. Now that you are thoroughly familiar with the
situation, you can more readily determine how to approach
satisfying the want or need. You may be creative in deciding
the size of your firm -- does it already exist or are you starting
from scratch? The answer to this and related questions will
determine how realistic the project is. If you define yourselves
initially as part of a national or global firm, then the
competition you can take on is obviously different than if you
define yourselves as a student with a start-up company. No
"right" or "wrong" answers are involved; either approach (or
any intermediate one) should provide an appropriate learning
14. experience.
Topics to address in this section include:
1. Market Entry Strategy
2. Product decisions -- features, positioning, brand and your
obtainable market share. Cite sources of estimates given, and
clearly state any assumptions that may have been made.
3. Pricing decisions -- strategies employed, etc. You will
not have detailed cost information, so you do not need to go
down to the level of a specific price. Remember, this is a
preliminary plan.
4. Distribution decisions -- intensity of distribution, use of
multiple channels, types of wholesalers and retailers, and
others.
5. Promotion decisions -- message, media, mix of promotion
types, and others.
Students should tie the data presented in the situation analysis
to the recommendations provided. Your rationale should be
thoroughly discussed and supported. Projects will be graded on
the depth of analysis in reaching the decision presented.