INTERNATIONAL CONSULTING FIRM SOLICITATION

Capacity Building in Clusters Development, Market Analysis and Segmentation Study

COLLABORATIVE ACTION FOR THE EXPORT OF HANDICRAFT PRODUCTS

(ACEA) PROJECT

Period of Performance:   From December 13th to February 25th 2021  

Expected Level of Effort:  45 working days

Place of Performance: Remote and Tunis, Tunisia. 

Program Background:

ACEA Tunisia (Action Collaborative pour les Exportations Artisanales, or “Collaborative Action for the Export of Handicraft Products”) is a 6-year project funded by the U.S. Department of State and implemented by FHI 360. Its goal is to help artisans, especially those who are socially or geographically marginalized, to commercialize their products, and hence promote greater social and economic equity. Where possible, the project places a special emphasis on assisting artisans to export.

This project is helping to empower artisans and local communities by guiding and advising them using a cluster approach. Members of the Cluster (beneficiaries) meet in workshops and work in groups to learn and share various skills, in conjunction with relevant support entities and technical experts. To date, ACEA has launched cluster development activities in two sectors in Tunisia: The Wiki PAM cluster in Northwest Tunisia, for essential oils and related natural products and Olive wood kitchenware and tableware cluster (in Sfax and Sidi Bouzid). Recently, ACEA has identified a third handicraft sector, Margoums and Kilims Carpets of the region of Dkhilet Toujane in the governorate of Gabes.

The typical Carpets and rugs of Toujane region are famous for their unique design of ancient Amazigh culture. Although the sector exhibits an opportunity to regional economy, the local products remain under-valued.   

As this sector remains poorly investigated, ACEA is seeking a consulting firm to conduct an in-depth market analysis and design and implement a capacity building program in clustering approach. 

Objectives of Consultancy:

The international consulting firm will conduct an international market analysis and a detailed market segmentation strategy for Carpet’s value chains in Tunisia. The goal is to scan the current carpet market, at the local and international level, and to gather as much data as possible in order to have an overview of the Tunisian carpet handicraft sector positioning at the global scale, as well as to provide a list of recommendations for upgrading efforts needed to achieve export growth in the targeted segment. This entails:

1. defining the relevant product categories, 
2. describing the global value chain, 
3. identifying the most attractive market segments
4. conducting a detailed competitive analysis of the selected cluster
5. providing recommendations.

Besides the market segmentation study, the Contractor will support FHI360 in building project staff (up to 10 persons) capacities in Clustering methodologies which includes a high-level review of project methodology and a 3-day training in clustering for project staff that would include :

1. Origin and objectives of the approach, how to ensure success of a cluster
2. Cluster’s role in rural development, cooperatives development and handicraft sector
3. Internal benchmarking experiences
4. Tools for building, organizing, managing, and internationalizing clusters 
5. How to recruit members and build long-term sustainable business and financial models for cluster initiatives

Detailed Tasks and Deliverables

Tasks:

1. In-depth international market analysis. Aimed to review and assess demand for production and competitiveness in the international handmade carpet market. The international consulting firm will work to characterize the industry in which the cluster is globally competing. This will include an analysis of channels and end markets in handicrafts. General competitive analysis, trying to include most information possible to understand the degree of attractiveness of industries of main market segments identified:

• Global supply:

• Global production
• Main producing countries (names, production capacity, etc.) and evolution.
• Export rate of main countries
• Ranking of the country in compared to the global panorama
• Main international players: who are the main companies at a global level? Short description about them (activity, turnover, employees, recent evolution)
• All the information necessary to understand the industry globally

• Global demand:

• The global markets: what countries are consuming the most? Why?
• Evolution of the demand (of the main markets)
• What are the main distribution channels?
• What are the main distributors as companies?
• What kind of products /services are sold today?

• Main trends
• MARKET TRENDS: Trend and evolution of the consumption during the last years: what criteria impact the demand/purchase, how the consumption is evolving, predicted consumption for the future, etc.
• Impact on the INDUSTRY (how does the industry change to respond to the trends):
• How is the sector evolving?
• Main factors that might affect the future of the sector, if the demand is increasing or not, etc.
• Characterize the industry (business) in which the cluster is globally competing (turnover, business growth, major markets and attractiveness, major global players, identifying local sophisticated demand, regional and global list “competitors” existing, etc. …)
• Make recommendations regarding the suggested positioning of Tunisian handmade Margoum and Kilims Carpets

Alongside the carpet’s trends and identification of competitors, the international consulting firm will also investigate the cultural, traditional trends and events related to the handmade carpet market. 

The international consulting firm shall provide recommendations regarding the suggested positioning of Tunisian Handicraft Carpets.  

1. Detailed market segmentation study: This part is necessary to better identify purchasers’ needs in order to conceive business strategy for the targeted sector. 

• The international consulting firm will conduct an international benchmarking study and analysis of international cases is expected. 
• All gathered Data will be examined to identify feasible strategic options for the cluster.
• The international consulting firm will provide recommendations for upgrading pathways to improve and develop Tunisian artisans.
• The study will also include an analysis overall technology and consumer trends, benchmarking of international competitors, purchasing criteria in the most attractive segments for Tunisian producers, and strategic options, Key Success Factors and recommendations for upgrading efforts needed to achieve export growth in the targeted segments. 

All along, the international consulting firm shall provide recommendations for linkages between inclusive tourism and handicrafts at a global scale. 

After submission of the draft final report, ACEA will provide comments and feedback, after which a final report will be submitted in Word with a summary in PowerPoint, both in French and English.

1. Capacity building in clustering methodology: The international consulting firm will support building project staff (up to 10 persons) capacity in Clustering methodologies. This task will start with an assessment of project activities and a high-level review of the whole project methodology. A 3-day training (in French language) will be then provided for project staff with the support of project senior technical advisor. 

DELIVERABLES:

The international consulting firm shall be responsible for preparing and submitting the deliverables to the Technical Monitor. ACEA will work with the international consulting firm to finalize format and structure for key deliverables during the consultancy, and the Technical Monitor and other relevant staff will review the international consulting firm ’s proposed drafts and provide feedback accordingly.

Location:

This work will be primarily remote, due to Covid restrictions, but will require some meetings in Tunis. FHI 360 will require an Expense Authorization form to be submitted and approved prior to travel and will reimburse allowable travel expenses.

Selection criteria:

This consultancy is open for international firms. Applicants should demonstrate ability to engage the following profiles: 

Senior Expert / Trainer :

• Postgraduate degree in economics, business, statistics, public policy or related field.
• A minimum of seven years demonstrated experience working with economic development, survey and data analysis, project monitoring, market research or related activity. 
• Demonstrated knowledge and experience of the handicraft industry, circular and rural economy.
• Familiarity with value chain analysis or cluster development desirable.
• Strong analytical skills and written and oral communication skills.
• Demonstrated experience in providing value chains/clusters development trainings
• Knowledge of English required, French highly desirable.

Consultant:

• Postgraduate degree in economics, marketing, statistics, data analysis, or related field.
• A minimum of five years demonstrated experience working with economic development, survey monitoring and data analysis, project monitoring, market research or related activity. 
• Familiarity with value chain analysis or cluster development desirable.
• Familiarity with surveys and data analysis
• Strong analytical skills and written and oral communication skills.
• Knowledge of English required; French highly desirable.

Criteria/Qualification for Evaluation:

Applicants will be evaluated and ranked by an evaluation committee according to the conditions described in the evaluation criteria below, with a total overall maximum point value of 100. International consulting firms will first be evaluated and scored from a technical standpoint.  International consulting firms that are considered to be technically qualified shall then be evaluated in terms of cost reasonableness of their daily rate. The contract shall be issued to the international consulting firm with the highest combined technical and cost score.

Level of Effort and Remuneration

The Consultancy will consist of a maximum of 45 working/billing days (1 day = 8 hours) between December 13th, 2021 and February 25th , 2022.

The international consulting firm will be paid the agreed daily fee rate for every day worked, up to but not to exceed 45 days, with reimbursement for related, budgeted expenses (e.g. travel and lodging on field trips outside of Tunis).  The international consulting firm will submit a record of LOE on a monthly basis for processing and payment.