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Case Study "Assisted Implementation” Approach Family Tradition Ltd., Ghana Processing and packaging of smoked fish Background Gifty Dorkenu had been raised in a fishing village and learned the trade of smoking fish as a young girl as part of a family business. After completing a middle school education, Gifty began smoking fish as part of her own micro enterprise at the age of 29. As years passed, Gifty noticed that she and her family were not any further ahead in generating additional profits for her business. With her husband unable to find a job, it was critical that Gifty earn an income to properly care for her three children. However, she was finding it very difficult to “get ahead” since the selling price for the smoked fish was dictated by the market, which was not keeping up with the continual escalation in the cost of raw materials. Gifty had attended several business training sessions in the past that she felt were informative; however, she found difficulty in applying the concepts she had learned to her small fish smoking business. Motivated to make a change that would help grow her business, Gifty began working with Women in Progress to put into practice the concepts she had learned about product differentiation, pricing strategies, and targeted marketing in a recent marketing seminar she attended. Product Analysis Utilizing the “assisted implementation” approach, a Women in Progress volunteer worked with Gifty on a one-on-one basis to really understand the business, analyze the challenges being faced, and identify opportunities for growth. The volunteer then helped Gifty to investigate ways her product could be differentiated in the market place so that she could set her own market price in order to improve profit margins. One product opportunity that was identified was producing smoked fish powder. Many Ghanaians purchase smoked fish and grind it into powder to make “shito”. Shito is widely used to make various soups and sauces and is commonly packed in lunches for children attending school. Research The Women in Progress volunteer assisted Gifty in devising a marketing plan for smoked fish powder. The first step in the plan was to research the level of market demand for selling smoked fish powder directly to the end consumer. They created market surveys for both end consumers and retailers. They carried out the surveys in 8 towns in Ghana in 6 different regions—accounting for potential markets that may exist 500 miles away from the tropics in more arid and desert regions. The research showed that consumers were interested in purchasing the smoked fish powder and were willing to pay a premium price to have it ground and packaged. They also gave feedback as to the amount of powder they would purchase (based on family size). Potential consumers also chose from various brand names for the product and “Family Tradition” received the most votes. Likewise, retailers showed much interest in carrying the product. They thought the demand for packaged smoked fish powder existed, but were mostly concerned about the shelf life of the product. Implementation In order to get the new business off the ground, Women in Progress helped Gifty write a proposal and obtain a small grant in order to build a small processing facility and purchase a grinding machine, sealing machine and sachets for packaging. The volunteer was there to assist in setting up the new business, registering the product with the Ghanaian standards board and conduct further tests as to the shelf life of the product. To further assist in implementing the marketing plan, the volunteer worked with Gifty to identify initial stores that would carry the product. Ongoing Support After the initial intensive engagement with the volunteer, Women in Progress continued to provide ongoing support to Family Tradition as needed. In the following years, Gifty expanded the Family Tradition product line by adding smoked shrimp powder and also began to package other dried food items in order to generate income in the low fishing season. She has been able to construct a second processing facility and employs four women during the peak fishing season. She is well-known in the Ghana’s Central Region and people travel a long way to buy the product directly from Gifty in the village. Gifty was also recently recognized as Ghana’s best fish processor. Next Steps Women in Progress recently assigned another Women in Progress volunteer to Family Tradition. Gifty is seeking assistance in obtaining an affordable loan where she can double the production of the smoked fish powder in the high fishing season. The volunteer team will assist her in writing a proposal to obtain a loan or grant. Now that the business has matured, Gifty is interested in analyzing whether it makes sense for her to smoke the fish directly as part of her business, or rather shift the focus to only grinding, packaging and sales. They will assess the level of possible production and profitability of both scenarios. If it makes financial sense to purchase already-smoked fish, she can pursue partnering with women in a nearby village to smoke the fish so that Family Tradition would then package it. Summary The “assisted implementation” approach has been critical to the success of Family Tradition. As the expert in her business and industry, Gifty had a good vision of where she wanted her business to be in five years, but only needed a helping hand in getting there. |
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