A study on producing and exporting Sidrat Soap Hanin Mohammed Lebanese international university February 9th, 2020 Table of content 1.0 2.0 3.0 4.0 5.0 6.0 Abstract Introduction Vision statement Mission statement and core value Strategic goals Product summary 6.1 Product identification 6.2 Product features 6.3 Why did I choose it? 7.0 Creating a value chain 7.1 Procurement of raw materials 7.2 Wheelhouse and layout strategy 7.3 Production line 7.4 Product design strategy 7.5 Pricing strategy 7.6 Outbound strategy 7.7 Market analyze summary 7.8 SWOT analysis of our product and local one 7.9 Marketing and sales plan 8.0 What is a strategy to enter a foreign market? 9.0 What country did I choose and why? 10.0 SWOT analysis of our product and foreign one 11.0 Marketing plan used in foreign market 12.0 Conclusion Abstract This study talks briefly about resources and natural plant of Yemen and how can we exploit them by starting a business of making new, creative national product which we need to have a long term vision, mission and core value for our product, it states the goals we want to achieve, what product we are going to produce and why? How can we create a good value chain for our processes? Which identifies the procurement of the raw materials, warehouse and layout strategy, the production line, product design strategy and pricing strategy, what it is included in the outbound strategy? How can we analyze the market and SWOT of the product? What marketing plan we used to promote the product locally? What strategy we have to follow to enter new market? What is this new market and why? Finally it provides SWOT analysis of foreign product and ways for marketing our product in foreign market. Introduction Yemen is a country with huge wealth resources, Because of its natural resources that would made it a richest country, But unfortunately we don't have any idea about its importance and we are not properly exploited. Yemen is famous in agriculture with a large number of unique plants and trees that cannot be limited or counted but here I will mention only two types of these plants, which I will use them in making my own natural product, these plant are the Yemeni Fel plant (Jasmine flower), which is grown in the province of Lahj and Hudidah, that is characterized by its beautiful and Fragrant smell. Also the Sidr plant, which is found in the countryside of Hadramout, and it is specialized by the natural characteristics and great benefits to treat skin problems. Vision statement Yemeni culture smells worldwide. Mission statement and core value We at Sidrat Natural Soap strive to make the best, safe and Cosmetic product for our friends, family, customers and ourselves. Sidrat was created to deliver what's the best comes from Yemeni nature in your hands. We're excited about our creation and want to share it with everyone. We pledge to conduct our business in an environmentally aware manner emphasizing reuse and recycling, the use of natural base ingredients, and the application of appropriate technology. Strategic goals Spread Yemeni culture and its natural resources for the world. Gain customers trust and satisfaction through reliable products. Profit is secondary. Product summary 1) Product identification: _ A natural body soap that contains a Sidr plant with fragrance Jasmine oil. _ It's a new and not existed in the market. 2) Product ingredients: o o o o o o Glycerin Sidr powder Olive oil Rose water Fragrance Jasmine oil Sodium hydroxide 3) Product features : _ 100% natural . _treats all skin problems. _Its smell is constant for whole day. 4) Why did I choose this product? There are some reasons behind choosing it, First of all, Soap considered as a major product found in every house and used by all categories of people and through this pr oduct I want the world to know about Yemen's unique natural resources and spread our Yemeni culture abroad through the smell of Yemeni Fel( Yemeni Jasmin flowers) My goal is also to provide benefit to various age groups through Sidr plant, which I w ill review some of its benefits as follows: Works to lighten the skin color. Tightens skin. Moisturizes and smoothest. Treats skin problems such as pimples and others. Removes black spots from the body. Treats wounds. Treat Fungi. Treats skin diseases such as scabies or measles. These plants have a wide attention from Yemenis, where the majority of Yemeni women are using them in a quasi-daily period, As they make a high sales rate at the local market. Creating a value chain 1. Procurement of the raw materials I'll choose two sources and services providers to get the Jasmin flower which are ( Lahg and Hudida). And the same for Sidr plant I'll buy it from (Hadramut and Shabuh). So we can avoid any surprise problem or natural disaster. 2. Warehouse and layout strategy Making the inventory and stores beside the factory itself to reduce the operational cost. 3. Production line We are going to start using semi automatic system for production because: _ we are at the beginning of our business which will start offering limited amounts of the product. _ Human operators still need to use their brains They still “pull the trigger”. It means they have an understanding of the steps to follow, and they can think of better ways of organizing their work. _ Lower wages of labor force in Yemen. 4. Product design strategy First, Selecting a brand name which is (Sedrat) Because it is related to the main ingredient of the product. Packaging for the product 5. Pricing strategy Deciding the price according to these elements for a fair price: - Cost price: The cost of producing the product. Retail price: How much do the customers pay for my product? Wholesale price: How much do shops pay for my product? 6. Outbound strategy Since we're in a local market and going to serve our product locally, So we're going to handle a distribution process by ourselves instead of someone else, So we can reduce the cost of other distributors. 7. Market analysis summary 1_ Selecting a target group, Which we'll start to sell the product in Aden city, Because those people are more attached and more loving for Jasmine flower which considers one of their culture and for sidr plant which they used to use it spritely as a powder. - Than after months we'll send our product to Taiz, Sanaa and Hadramut. 2_ SWOT analysis of Sidrate and local soap ( Naseem plus ) Brand name Strengths -Natural 100%. combines the beauty, cleanliness and constant smell. -Availability of national raw materials. -Availability of different service providers. -Strong marketing ideas. -Known product and popular brand name. -Availability of different variety of the product. -Lower price than competitors. -Highly visible website. Weaknesses -Unknown brand name. -Holds chemicals. -Lack of different service providers. -Lack of new marketing ideas. -Lack of ingredients from local sources. -Limited variety of the product comparing with others. Opportunities -increase awareness of natural product. -High desire and love of people for Yemeni Jasmine flower in local market. -Lower quality of Local products. Unavailability of 100% natural soap. -People's movement for lower prices product. Threats -Increasing of people health awareness for natural products. -Lower purchase power of some levels of people. -Increasing in strong brand name products. -Website development for online ordering. -Changes in regulations. -sources are seasonal and -Increasing of local shortage of the production. competition. -Higher prices than competitors. -Risks of limited service providers. 8. Marketing and sales plan Here are some ways for promoting our product locally : Hand out samples and offer it free for customers. Keep samples as a gift in some most popular products. Advertising in a social media. After 3-5 years i think it's a time to export Sidrat to outside Yemen. Strategy to enter new market is a direct exporting. What is the country i chose and why? Djibouti is my target country. Why did I choose it? -many Yemeni people are living there. - Sharing the same culture with Djibouti people. - they love products with fragrance smell. - Suitable purchase power. - less availability of the competitive products. SWOT analysis of Sidrat and Foreign product ( DOP ) Brand name Strengths -Competitive prices. -Big deals with local agent in -Strong and known rand name. -Many Varity of the products. Weaknesses Djibouti. -Lower labor force. -Availability of national resources. -100% natural product. -Has people loyalty. -Continues improvement. -New brand name. -Lack of Varity of product. - shipping cost. -High wages of wages. -High product price. -Unavailability of national sources. -Chemicals product. - Loyalty for their brand name. -People resident to change. Opportunities -More Yemeni people are there. -Sharing similar culture with Djibouti. -Djiboutian interest of strong and nice odors. -Trade agreements between Yemen and Djibouti. Threats -Barriers to enter. -Increasing of people health awareness for natural products. -Low rate of population. -Changes in regulations. -Resident to change. -Increasing of local competition. -Rapid and uncertain changes. -Risks of limited service providers. Marketing plan -Big deals with local agent there. -Lower prices than competitive products. - offering samples for free in the Cashier of each market . - Post to Google My Business. -Offer Customers an Exclusive Preview. -Social Media Contests. In conclusion Remember that being a business man or woman is not difficult or hard to be, But it is too hard to success in. Success requires a faith on your abilities, On your power to c hange everything around you whatever are the Circumstances. Although Yemen is suf fering from difficult Circumstance, But we are its only army to push it forward. We d on't have to wait, Time is moving and life's subway will not wait. 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