PART I: International Marketing

Cultural Analysis

Executive Summary

Rwanda is the country of export that I have selected. Rwanda is among the youngest states in terms of economic as well as social development. More than 50 percent of the population has no access to mobile phones which is a major force that is required for the economy to progress due to effective communication. The Republic of Rwanda is a landlocked state that is located in the east-central of Africa. The country is still attempting to make recoveries after suffering from ethnic discarded that terminated in a huge genocide that was sponsored by the government in the middle 1990s. The country has in particular struggled with its reputation regarding ethnic tension that is directly linked with the traditional discriminating or unequal relation amid the minority Tutsi and Hutus who are the majority in the state. Currently, the state is struggling in the attempt of rebuilding its economy and creating better relations among the ethnic groups mainly by promoting business activities with coffee as well as well as tea growing and is currently amidst the main exporters globally. The remarkable achievements have been praised in particular by the World Bank stating that through this operations the state has been able to deal with inequality issues while promoting economic growth. The country’s population is about 11.2 million individuals in an area of about 26,338 kilometers square. The main languages are French, English, Swahili, and Kinyarwanda with the primary religions being grounded on traditional beliefs and Christianity. Despite the fact that business has begun to develop the state is ranked among the poorest state globally thus the socio-economic classes in the state are far from being successive.

Introduction

T-Mobile U.S is a mobile phones company that is headquartered in Washington, Bellevue as a German telecommunication corporation subsidiary with its establishment dating back in 1994. The corporation plans on exporting its wireless, digital and easy to use phones so that it can facilitate the communication needs of individuals in Rwanda. Most of the Rwandese are not able to acquire mobile phones based on the high prices that are associated with the product in the market. Therefore the company will penetrate the market using affordable prices and availability to all. In addition, the company will ensure that the phones spare parts are easily available to increase consumer’s satisfaction. The population does not only suffer from poverty that makes it challenging to afford mobile phones but the populace suffers from poor networking. Therefore this creates the need for mobile phones with high networking power while still regulating the cost to create better communication solutions (Carney, 2016). This product will permit Rwandese to stay connected as the possessing longer battery life and make it easier to handle business which will additionally impact sectors such as health and education by allowing them to access more information in regard to their surrounding and globally.

With little or zero access to quality care, the potential of contracting illnesses such as HIV and tuberculosis are quite high. The living status in the society has proven to be quite difficult particularly in the interior areas where income sources are normally based on the governmental benefits. Most of the people in Rwanda mainly rely on agriculture in order to acquire survival but farming tends to be vulnerable due to the lack of proper farming practices, poor logistics as well as communication. The education system is one that cannot be praised given that most individuals are forced to exit school before completing primary education. This, therefore, implies that the highest percentage of both young and old individuals is uneducated which has, in turn, slowed technological adoption such as the use of mobile in business deals and easing communication (Straus & Waldorf, 2011).

Brief Discussion of the Country’s Relevant History

By the year 1994, the general population in Rwanda was approximately 7 million and this comprised of three ethnic communities which are the Twa, Hutu as well as the Tutsi. Before the colonial period, Tutsi was occupying the highest social system while that of Hutu was lower. Social mobility was highly possible since one would be assimilated to the other group after owning a large cattle number or another form of wealth (Straus & Waldorf, 2011). Ethnic conflict however started since German which is that state’s colonial power lost the country’s possession in the WWI where Belgium took over. This resulted in the loss of most privileges that had been owned by the Tutsi resulting in increased resistance. Even after acquiring its independence in 1962 ethnic violence and conflict intensified forcing most individuals to seek refuge in the neighboring nations (Carney, 2016).

A Civil War began despite efforts from a different organization attempting to create peace through encouraging of power sharing. The agreements were delayed by the individuals in power and this resulted in increased rights violation. The death of the country’s president that occurred on 6th of April 1994 in an airplane crash after an attack stirred several weeks of systematic and intense massacres. In the mass killing, approximately 800,000 individual from the Tutsi ethnic group and a moderate number from the Hutu community were killed by the dominating Hutu administration within a span of a hundred days (Carney, 2016). More than 200, 000 women were raped. This resulted in the rise of a poor state one that individuals died due to exposure to unsafe water, food as well as poor living status (Carney, 2016). The country has been engaging in efforts on trying to restore its glory but still remains among the poorest socio-economically.

Geographical Setting

1. Location

The republic of Rwanda is a landlocked state that is located in the east-central of Africa. The country’s population is about 11.2 million individuals in an area of about 26,338 kilometers square. The country is based on just several equatorial degrees and does not have a seaport. It is surrounded by states such as Tanzania, Uganda, Congo and Burundi (World-meters. (2017).

1. Climate

The state’s countryside are comprised with rolling hills and grasslands that are characterized by a temperate climate. Despite the fact that Rwanda is situated in approximately two degrees equatorial south the high elevation in Rwanda creates a temperate temperature. The country is characterized by for main perceptible seasons which are the long dry season which ranges from long dry to short dry to the long dry and to the short rainy season. The average temperature during day time is about 24 degree Celsius and the highest being 30 degrees Celsius.

1. Topography

Rwanda is amidst the country’s that are universally known as lands of thousand hills.  It is a hills landscape that is covered with green, gardens and agricultural tea as well as coffee plantation.

Iv. Social Institutions

1. Family
2. The Nuclear Family

The nuclear families within Rwanda are comprised of between three to 5 members per every family mainly since the birth rate is not that high in particular. Most of the families on average have between two and three children.

2. The Extended Family

Per every extensive family in the state, the populace is between forty and forty-five people within the sum of only three generation in each. The population of older individuals is averagely between 54 and 57 years.

3. Dynamics of the Family
4. Parental Roles

In every family based on the societal norms in Rwanda the father is considered to be the families heal and he is primarily responsible for making different decisions. This is because the society is a patriarchal one. For the poor communities having children outside marriages does not place the father with the responsibility of the child’s upbringing. In addition, the rate of separations or divorce is low in a relative manner. Women are responsible for the needs of the house and those of children by ensuring that all the domestic duties are accomplished.

1. Marriage and Courtship

Marriage is more different in the state when compared to the western setting since in some settings on the grounds of tradition polygamy is widely practiced. However, the law was already replaced by permitting monogamous families but this has not be achieved in the whole state. Based on law all the partners are generally entitled to the ownership of properties or even sharing in case any sort of separation.

4. Female/Male Roles (Changing or Static?)

Gender roles in the country seem to be static as they are mainly based on tradition and modernization is taking place slowly. The male is normally involved in guiding the family. Making a decision, providing as he is responsible for working so that the whole family can be fed. On the other hand, females are responsible for taking care of the general household and bringing children up and teaching them all the required norms within the society.

1. Education
2. The Role of Education in Society

The occurrence of the civil war in the state and the mass killing left the economy in the worst situation. The education system was also not spared because it was left in a situation that can be regarded as critical. Despite the fact that the country is engaging in different reforms to recover from this negative surrounding a comprehensive system transformation has not been acquired. In 2012 the country began to focus on a 12-year basic education which is divided equally amid primary as well as secondary education. The country operates under a 6-3-34 educational system where six years are spent in primary three in junior secondary three in upper secondary while four years are at the university level (Straus & Waldorf, 2011). Education is free up to the secondary level. However for most acquiring a higher education is usually challenging due to poverty. Low socio-economic status in the country impacts the learning system in a great way. The objective of the government offering free education is to create relevance and quality education but the schools, in turn, offer more than just learning because they are forced to provide food and cater for the needs of orphans and the most vulnerable. Most of this schools operate with inadequate resources and inadequate skills since most of the teachers in the primary school have not passed the secondary level (World-meters, 2017).

1. Primary Education

The six years of primary education is usually free and a necessity in getting to the junior secondary level.  Despite the efforts made by the current administration in improving the education system learning is of low quality given that the teachers lack the necessary skills and knowledge. In addition, the ratio of teachers to students is not balanced as one teacher is forced to handle hundreds of students. It is not surprising that these teachers teach more than three subjects per given population and in covering the challenges of this shortage they are forced to work about two or three shifts. The rate of primary education is below 50 percent because most of them leave before the third year to cater for more pressing necessities such as food.

1. Secondary Education

In Rwanda secondary schools are characterized by two differing levels where with a division of three years each. The first division is referred to as junior secondary the second being the advanced one. English and French are mandatory languages in all the learning levels while Swahili is optional. Equally to the primary schools this level is also characterized by teacher’s shortage, underdeveloped teaching knowledge, and skills as well as low rate of completion.

1. Higher Education

Given that most of the Rwandese fail to pass the prime and the secondary level the total populace that attends and completes higher education is categorically low while being compared to other states in its economic status. Rwanda accommodates both privately owned as well as public schools but the government is working on retaining students in school.

2. Literacy rates

On the grounds of statistics acquired in 2012, it was established that 68 percent of the general populace in Rwanda from the ages of 15 and beyond are literate while 32 percent depicts the uneducated population (Carney, 2016). This, therefore, shows that the literacy level of the country is growing at a desirable rate in the recent. This implies that the population that has no understanding of reading, writing and understanding global changes is particularly low but the gap needs to be covered because it is still high. In addition, education quality varies since girls tend to be educated less as compared to boys on the grounds of cultural reasons. Most of these girls are forced to leave school before 15 years so that they can get married and provide for their families.

1. Political system
2. Political structure

Rwanda operates under a multi-party system where the president becomes the state’s head. The parliament is made of two chambers which are the deputies’ chamber and the Senate. Its parliament has the highest women population on the global context since 24 seats out of the total 80 are primarily reserved for females. This is usually the approach on the grounds of how the genocide affected women (Briggs & Booth, 2010). The president has the responsibility of selecting the vice president and the respective ministers. Based on the passed referendum as per 2017 the president is permitted to serve two consecutive terms with each being accounted for 5 years (Briggs & Booth, 2010).

2. Political parties

Rwanda is a multi-party nation but has one dominating party which is referred to as Rwandan Front party which after the genocide has continuously won majority seats within the parliamentary section. Other parties with significant influence include Imberakuri Social Party, liberal and centric democratic parties. RPF is the dominating and the ruling party in the state. The party is headed by President Paul Kagame and it has been involved in the country’s governorship since the end of the armed crisis that resulted in genocide back in the year 1994 (International Monetary Fund & Rwanda, 2011). The party is more focused on generating social and economic development by creating a democratic surrounding.

3. Stability of government

The state’s government is particularly stable despite the roaming tension after the president advocated for an additional ruling term and the presidential term was added thus permitting him to vie again which he won with less competition. However, the relations in the country are stable since a majority of the citizens supported the referendum but some hold that some political leaders are greedy and want to remain in power for an extensive period.

4. Special taxes

For the not residents persons they are supposed to make payments for each income that they acquire in the state which includes employment income at the general suppression tax rate of 15 percent.

5. Role of local government

The local governed is responsible for ensuring that a favorable surrounding that citizens can coexist in peace and contribute to the quest of solving social issues. This incorporates monitoring ventures made within the state. However, the purpose of the local government is mainly affected due to the lack of necessary resources, necessary services, and effective information provision. The local governments are not present on all the areas since most are involved in monitoring major cities as well as towns where more economic and social initiatives are accommodated.

1. Legal system
2. Organization of the judiciary system

The judiciary in Rwanda is particularly an independent branch that operates separately from the executive and the legislature branches. It is mainly comprised of the appeal courts, high courts, magistrate courts, and one Supreme Court.

2. Code, common, socialist, or Islamic-law country?

The legal law that exists in Rwanda has grounded on the German as well as the Belgium civic codes including the customary law.

3. Participation in patents, trademarks, and other conventions

Rwanda patent protection is accessible via a state’s filing as the state is a member of ARIPO, PCT, and international convention. An application filing mainly necessitates the authority of the attorney general, specification copy authored in French as well as a certified priority application copy that has a confirmed translation.

1. Social organizations
2. Group behavior

In the country, groups are regarded to be of great significance as compared to an individual which is mainly linked to their communal agricultural cultures. If one is not linked to a given group them they are considered to be of no use.

2. Social classes

As indicated by a survey the general rate of an individual that lives under poverty in the country has decreased by at least 5.8 percent from the previous status in 2011 which was 44.9 percent up to 39.1 percent in the year 2014 (Adekunle, 2007). The economy in Rwanda as per the current is experiencing a domination of the servicing sector due to the increased significance that has been acquiring in reference to agriculture during the recent several years.

2. Clubs, other organizations

Boys, as well as girls, are free to associate with each other in groups rather than individually. Most of the acquired friends are those that are within the communities of given families while most individuals associate with those from similar gender. Friendship matters much and is considered as a form of responsibility.

3. Race, ethnicity, and subcultures

Rwanda is characterized by a number of ethnic communities and the largest group is that of Hutus that comprises of more than 85 out of a hundred of the entire population while the Tutsi are 14 per hundred and the Twa just one percent.

1. Business customs and practices

Similarly to other states greeting prior to engaging in any conversation is one of the important aspects of a business. There is a more customary norm where individuals have to be acknowledged formerly. Based on their practices punctuality is of great significance and individuals engage in informal talks prior to getting to business deals. Deals are mainly made in French as the language is the state’s official language and considerable thoughts are made prior to deciding.

1. Religion and Aesthetics
2. Religion and other belief systems
3. Orthodox doctrines and structures

It is believed that Rwandese are mainly engaged in indigenous beliefs and traditions as well as Christianity.  More than half the population of the country is mainly linked to Christianity while a significant number is claimed to be committed to traditional beliefs.

2. Relationship with the people

Christianity holds the greatest influence within Rwanda. The theory and norms of this religion believe in togetherness, love and being kind. This is why the state is mainly focusing on creating peaceful existence amid individuals and growth to promote better survival.

4. Which religions are prominent?

Christianity is the predominant religion which encourages high tolerance of self and others. In this context, individuals are encouraged to act right based on the Christian beliefs without subjecting any form of suffering to others.

5. Membership of each religion

Even those that practices traditional customs and are not involved in Christianity are expected to learn and understand the acceptable values as well as principles. This is to ensure that togetherness as the main norm is encouraged. Nevertheless, some individual’s holds diverse beliefs from either where some tend to exist independently.

6. Any powerful or influential cults?

There are no powerful cults since the dominating ones are Christianity and indigenous customs and practices.

1. Aesthetics
2. Visual Arts

Artistic work is mainly utilized in an expression of traditional, historical and religious beliefs. For the Rwandese art is an important part of their culture but it is unfortunate that the ethnic conflict led to the destruction of some of the most significant cultural establishment such as buildings and museums.

2. Music

Music is one of an essential aspect of Rwandan culture as well as indigenous beliefs which mainly plays part in during traditions. Music is utilized in religious expression, a representation of the state’s heritage as well as culture. In addition, it is used in the expression of feelings such as sadness and love.

3. Drama, ballet, and other performing arts

All the musical aspects play a significant responsibility to most of the ceremonies in the society as they are perceived as significant. Traditional dances are not widely practiced in the praises of customs rather there are utilized as signs of respecting religion.

4. Folklore and relevant symbols

Folk music and narratives which normally involves the retelling of certain stories is particularly driven by its colonial authority. The state’s culture is occupied by stories, myths, and proverbs that are passed to each generation. Symbolism is utilized in the representation of important aspects such as patriotism and togetherness.

1. Living conditions
2. Diet and nutrition
3. Meat and vegetable consumption rates

In most of the urban locations such as in the cities and towns white and red meat are essential parts of diets as they are regarded to be special. The general consumption of maize, bananas, cassava, and millets tends to be much higher. Most families in the rural sectors are entitled to two meals while those in the urban tends to consume three daily.

2. Typical meals

The staple food in Rwanda includes cassava, sweet potatoes, beans, and plantains.  Porridge is usually derived from millet, maize, and sorghum.

3. Malnutrition rates

Since most of the families rely on farming for survival most of them particularly those from the rural areas are subjected to malnutrition due to the lack of proper dieting. This is usually the case due to the lack of energy, protein and necessary nutrition’s which is a result of poor dieting.

4. Foods available

The most available foods include sweet potatoes, cassava, beans, millet, maize as well as sorghum. These foods are acquired from the farmers directly.

1. Housing
2. Types of housing available

The traditional rural houses are made of made which are mainly huts. The huts are characterized by thatched roofs. However, currently most of the houses are made of cement blocks and metal roofs as modernization is occurring is a rather slow rate with the designs changing from being circular to rectangular.

2. Do most people own or rent?

Most individuals rent houses particularly in the urban locations while a large population in the rural areas lives in their own homesteads.

3. Do most people live in one-family dwellings or with other families?
4. Clothing
5. National dress

The trendy and fancy dressing has been adopted highly particularly by the young generation but traditional remains where individuals are expected to be dressed decently. This means that short clothes such as skirts and tops are not encouraged.

2. Types of clothing worn at work

The official dressing is highly encouraged in the formal working organizations while casual wear is adopted in the informal sector.

1. Recreation, sports, and other leisure activities
2. Types available and in demand

In Rwanda, the most available sports are volleyball, basketball, athletics, and football. The most popular sport in this sector is Football.

1. Social security

Social security within the state is complementary, compulsory and non-contributory.  This ensures that the poor families are provided with basic welfare provision while the compulsory includes offering education insurances and social protection.

1. Healthcare

Diseases such as tuberculosis, HIV, and malaria remains to be the leading death causes. Most individuals are faced with the challenges of healthcare access and those that acquires it is not of good quality. It is estimated than below 5 percent of the population has access to care while the highest population lives far from health sectors.

VII. Language

1. Official language(s)

The official languages include English, Kinyarwanda, and French.

1. Spoken versus written language(s)

Most of the spoken languages are Kinyarwanda and French while the writing is more of French as compared to English.

1. Dialects

There are two dialects within Rwanda which are Kinyarwanda and Kirundi which is mainly comprised of a group of Bantu mainly a language that is utilized in Central Africa.      References

Adekunle, J. O. (2007). Culture and customs of Rwanda. Westport, Conn. [u.a.: Greenwood Press.

Briggs, P., & Booth, J. (2010). Rwanda. Chalfont St. Peter: Bradt Travel Guides.

Campioni, M., & Noack, P. (2012). Rwanda fast forward: Social, economic, military and reconciliation prospects.

Carney, J. J. (2016). Rwanda before the genocide: Catholic politics and ethnic discourse in the late colonial era. Place of publication not identified: Oxford University Press.

International Monetary Fund. & Rwanda. (2011). Rwanda: Poverty reduction strategy paper: progress report. Washington, D.C: International Monetary Fund.

Straus, S., & Waldorf, L. (2011). Remaking Rwanda: State building and human rights after mass violence. Madison, Wis: The University of Wisconsin Press.

World-meters. (2017). Rwanda Population. Retrieved from http://www.worldometers.info/world-population/rwanda-population/

 

Appendices

Appendix 1: National Flag

Appendix 2: Appendix 2: Map of Rwanda

 

 

PART II: Economic Analysis

Executive Summary

Rwanda’s economy has experienced a significant growth since 1994 when the civil war ended. However, its economy has remained to be underdeveloped as it is ranked among the poorest states globally with a GDP of 8.096 USD as per 2015. However the country is experiencing a growth of about 6 -8 percent increase each year. In developing its economy the country mainly relies on agricultural investment. In addition its foreign investors are not usually taxed and by doing so the government is purposed at attracting a higher investment so that the economic status can evolve.  Road transport is the most developed infrastructure and regardless of the high literacy and poverty rate the government is attempting to grow its telecommunication sector. Agriculture is the highest contributor as it has employed more individuals and contributes up to 40 percent of the state’s GDP.

Introduction

In penetrating the market successfully T-Mobile is required to understand the economic status of the state so that it can create a competitive position. Due to the ethnic conflict the economy has remained low and individuals are struggling to regain it. This means that the corporation will apply more efforts in rand marketing and creating awareness which will facilitate products adoption. Given the nature of the market affordability is important with the application of relevant knowledge (Santander, 2017).

1. Population
2. Total
3. Growth rates

The annual populace growth rate as per 2015 stood at 2.3 percent.

2. Number of live births

The population of the state is equal to O.16 percent on the global scale. With a population of 12, 137, 676 people and is ranked 76 in regard to population globally (Santander, 2017). 

3. Birthrates

The birthrate is indicated to be 3.90 for every woman. Every day 1086 children are born (Santander, 2017).

1. Distribution of population
2. Age

The median age totals to 19 years. For the male the median is 18.7 years while that for females it is 19.2 years based on the estimation made in 2016. Half of this populace tends to be younger while the other half is older (Santander, 2017).

2. Sex

Currently the ration of male to females stands at 0.965 where per every 965 males they are one thousand females (RDB, 2017). The population is particularly lower when compared to the global sex ration. The population of men is depicted by 49.1 percent while that of females is 50.9 percent which represent 5, 967606 and 6184 368 respectively (RDB, 2017).

3. Geographic areas

In 2015 the general population in the rural areas within Rwanda was estimated to be 71.9 percent while 29.1 are located in the urban areas. This therefore shows that the less population is located in the urban sector (RDB, 2017).

4. Migration rates and patterns

In every a thousand individuals the migration rate is indicated to be about 68.8 percent which makes it apparently high.

5. Ethnic group

The prime ethnic groups in the country are Twa, Hutus and Tutsi. The Hutus occupies about 85 percent, Tutsi 14 percent and Twa 1 percent (RDB, 2017).

III. Economic statistics and activity

1. Gross national product (GNP or GDP)
2. Total

The general GDP of Rwanda as per 2015 was 8.096 USD which increased by 6 percent in 2016. Rwanda is a state that holds the lowest corruption among all the African state and it is ranked 44 on the global scale due to transparency (RDB, 2017).

2. Rate of growth

The annual GDP change per 2015 was 6.9 percent. The growth rate from the year 2000 up to 2106 is averaged to be approximately 43.33 percent. The state is among the fastest growing economies in Africa generally based on its consistent in development (Mutabazi, 2017).

1. Personal income per capita

The GDP per capita in the latest 2015 record was 689.69 in American dollars which is generally equivalent to the global average five percent (Mutabazi, 2017).

1. Average family income

The annual income per every family in 2015 was $ 400 (Mutabazi, 2017). However this amount represents the male gender while that of the female is depicted by half the earning.

1. Distribution of wealth
2. Income classes

There are several members of the elite population who are currently existing in rather wealthy life but the highest population is existing in poverty. The wealthy society enjoys the highest income and live mainly in the cities. Based on the growing entrepreneurial investment there is a growing middle class population.

2. Proportion of the population in each class

The population of the middle class mainly represent 34 percent with more than 50 percent of the poor individuals living in the rural areas as compared to the less than 40 percent in the urban setting (Mutabazi, 2017).

3. Is the distribution distorted?

Income distribution in the country is distorted since it tends to benefit the elite group. Despite the fact that the generation of income that is being acquired from agriculture is quite beneficial the income is unequal.

1. Minerals and resources

The mining within Rwanda is constitute of several mineral such as tantalum, tin as well as Tungsten. Some of the resources include Nickel, Gold, Colton and petroleum which are some of the highest source of income export earnings (Trading economics, 2017).

1. Surface transportation
2. Modes

Road transport is the most developed form of transport in Rwanda. These systems are connected to the best links that offers much connection to major ports and the neighboring and trading states.

2. Availability

Road being the most developed is readily available to the commercial and personal consumes needs both in the rural as well as the urban setting. All the paved roads are grounded amid Kigali which is the capital city and all the major towns and cities.

3. Usage rates

More than two third of the transporting routes are mainly allocated to cargo transport while the remainder is utilized by passengers. More than 80 billion passengers utilized road transport in 2015 with a total of over 80 thousand vehicles while more than 20,000 vehicles were utilized for commercial purposes (Trading economics, 2017).

4. Ports

The main ports in Rwanda are Gisenyi, Kibuye and Cyangugu (Trading economics, 2017). They are the one that accommodates the highest cargo shipment on annual basis and they connect the state to major trading countries such as Congo.

1. Communication systems
2. Types

Communication is mainly achieved through mobile networking. The government is pushing and trying develop the telecommunication system so that communication can be effective. The mobile are connected to 2G and 3G network and the use of landlines is rare based on the effects of the violence. The internet is present also but it only exists in exclusive packets. 

2. Availability

Mobile communication and networking is readily available for those in the urban setting but remains a challenge for the individuals in the rural areas. With the assistance of different organizations the government hopes on creating more opportunities for the adoption of mobile use and availability of internet which will mainly facilitate communication.

3. Usage rates

The average mainlines communication users are about 6.9 million people and it is ranked 40^th in reference to the use of cellular mobiles with only 30 million users as per 2010 ranking. The telecommunication system despite being of good quality is not utilized by more individuals due to mobile expensive prices (Trading economics, 2017).

1. Working conditions
2. Employer–employee relations

Due to the high illiteracy rate most of the relations amid the employers and the staffs tends to be informal. In addition the relation does not necessarily require the signing of working contract. Half of the working employees are the ones that have engaged in formal agreements. This contracts have specified details regarding the working duration, employee benefits and wages.  The informal approach has mainly been influenced by low awareness of the basic privileges by employees.

2. Employee participation

Due to the informal working setting employees are rarely involved in decision making. Employees are usually represented by unions in acquiring what they want while they are permitted by law to engage in peaceful demonstrations but not for all the governmental and private fields.

3. Salaries and benefits

Most of the individuals working in the informal sector are entitled to little or zero social benefits. For those that are under the professional sector the employers normally contribute to their housing and health coverage among other benefits. Without having social benefits this implies that the acquired income is usually utilized in the basic provisions and thus employees are left with almost nothing for saving.

1. Principal industries
2. What proportion of the GNP does each industry contribute?

From each Sector in Rwanda the GNP contribution is as follows: agriculture 48 percent, servicing 48 percent and industries at 8 percent.

2. Ratio of private to publicly owned industries
3. Foreign investment
4. Opportunities?

The primary sector that is dominated by foreign investment is the telecommunication field with an estimation of over 110 million dollars in 2013 (Santander, 2017). The government has made reductions in taxes so that foreign investors can be attracted. This is a great opportunity that can transform Rwanda to be among the leading economies.

2. Which industries?

The dominating industry for foreign investments are tourism, telecommunication, fishing and agricultural business. The nature and the presence of unexploited mineral resources offers opportunities for attracting more foreign investors.

1. International trade statistics
2. Major exports
3. Dollar value

In 2015 the country exported and acquired a value of 740 million dollars while that of import represented approximately 1.91 billion dollars. The export has since increased by 15 percent (Santander, 2017).

1. Trends

The most exported Rwandan commodities are coffee, tea, Iron Ore, Colton, Tin and animal hides (Santander, 2017). Cofee export is worth more than 66million dollars while than of petroleum generates about 81 million dollars every yaer.

2. Major imports
3. Dollar value

The value of import represented approximately 1.91 billion dollars which is higher as compared to export (Santander, 2017).

1. Trends

The most imported commodities to Rwanda are food commodities, steel, cement, petroleum products, construction gods and equipment.

3. Balance-of-payments situation
4. Surplus or deficit?

The payment balance is a deficit one given that its import outweighs the export thus creating an imbalance. In that exports are worth 740 million dollars while import represented approximately 1.91 billion dollars (Santander, 2017).

1. Recent trends

Rwanda has in frequent cases suffered from payment deficit which forces the state to acquire money from foreign states thus increasing the debt rate.  The payment balance is mainly reliant on the servicing and the agricultural sectors success annually. However, the success of the agriculture industry depends highly on uncontrollable conditions like weather. This therefore result in the development of unstable economy.

4. Exchange rates
5. Single or multiple exchange rates?

The exchange rate is a multi-one. A hundred US dollars are equal to 82765.01 RWF which is the country’s currency (RDB, 2017).

1. Current rate of exchange

A hundred US dollars are equal to 82765.01 RWF which is the country’s currency.  While one RWF is equal to 0.12 dollar (RDB, 2017).

1. Trends

Similarly to other states the Rwandan exchange rate has been involved in fluctuations in the recent era but the last two years have experienced some sort of stability.

1. Trade restrictions
2. Embargoes

In relation to trade the country operates under free market that are restricted to minimal restrictions and this means that the sale of commodities is usually heightened. This is because consumers have a higher power of bargains which makes it favorable.

2. Quotas

In Rwanda trade is regulated by a preferences generalized system which permits free quotas and duty access to a number of commodities. This is usually the case for most of the basic commodities that are required by the consumers.

3. Import taxes

The taxation of import is dependent on the commodities. Rwanda tariffs and duties application are within those of the EAC which are common. Customs duties are usually levied amid 0 up to 100 percent with the average rate of 25 percent (RDB, 2017). The value tax subject to imports is 18 percent that is placed on CIF value and any duty that is applicable.

4. Tariffs

Rwanda holds an average rate of all tariffs being 25 percent in exclusion of VAT which is 18 percent (RDB, 2017).

5. Licensing

Rwanda acquires a significant revenue from Licensing which includes copyrights, trademarks, patents, designs and industrial processes and agreements.

6. Customs duties

As per 2015 the customary duty in Rwanda was 8 percent.

1. Extent of economic activity not included in cash income activities
2. Countertrades
3. Products generally offered for countertrading

Agricultural produce are the ones that are given for countertrading in Rwanda.

1. Types of countertrades requested

The countertrades that have been requested involves making direct trading with the east African states communities.  Under this proposed deal the country can acquire commodes that they necessitates from the different state to create a balance in the country.

2. Foreign aid received

The acquired foreign aid is anticipated to cover at least 30 percent of the state’s budget while the remainder is to be allocated from several domestic operations. In the past five years the acquired foreign money is utilized in catering for the public spending and its general dependability of foreign assistance has depreciated to more than a third of the general financial plan.

1. Labor force
2. Size

The size of the force labor back in 2014 was 5,694, 092 persons (RDB, 2017). However the force tends to vary in differing seasons since workers in sectors like agriculture are forced to exit and back.

2. Unemployment rates

The degree of unemployment in 2016 February was 13.2% the rate is depreciating over the years as compared to the beginning of the century (Mutabazi, 2017).

1. Inflation rates

The average rate of inflation is approximated to be 6.25 percent amid 1997 and the year 2017 which was particularly high in 1998 with a record of 28.10% (RDB, 2017).

1. Developments in science and technology
2. Current technology available

The internet and computers are highly available but are primarily utilized in educational setting and by the elite class. This means that for the average and poor Rwandese such pleasures are not available. The health, serving and the industrial sector are the leading in technological adoption. The government has continuously focused on the growth of technology inn health services in monitoring and evaluating progress of such illnesses like HIV and malaria.

1. Percentage of GNP invested in research and development

More than 1 percent of the country’s GDP was subjected to development and research operations in 2015.

1. Technological skills of the labor force and general population

It is only a low percentage that holds proper technology skills which is mainly driven by the high illiteracy, poor education and the lack of training.

1. Channels of distribution

This section reports data on all channel middlemen available within the market.

Later, you will select a specific channel as part of your distribution strategy.

1. Retailers
2. Number of retailers

The distinction amid wholesalers and retailers is hard to establish in Rwanda. This is because most of the wholesalers offers retailing services where goods are distributed to the minor retailers who are involved in supply within the state.

2. Typical size of retail outlets

The general size of both retailing and wholesaling outlets is large relatively when compared to that of other sates in its economic state. The outlets deals with more than 3000 products and services  which includes supplying as well as wholesaling of building products such as cement.

3. Customary markup for various classes of goods

The markup of goods varies based on region and the type of goods. The markup rate in Rwanda is known to be about 1.200.

4. Methods of operation

The primary operative methods utilized in Rwanda are wholesaling and retail with the use of both cash as well as credit in overcoming competition.

5. Scale of operation

For both the retailers and the respective wholesalers in the market the operation scale is large.

6. Role of chain stores, department stores, and specialty shops

Specialty stores have gained much popularity within the market within the retail field since the business operates by emphasizing goods specialty to a given group. The stores are responsible for the provision of customized goods.

1. Wholesale middlemen
2. Number and size

The size is large generally.

2. Customary markup for various classes of goods

The wholesale sector utilizes standard markup of products

3. Method of operation
4. Import/export agents

Most of the agents are located in the cities where they operate under the warehouses.

1. Warehousing

Warehousing is utilized in the storage of general commodities wholesome have special designs in accommodating specific goods.

1. Penetration of urban and rural markets

The penetration usually encompasses the use of affordability since the preferences for both the rural and the modern settings varies.

1. Media
2. Availability of media
3. Costs
4. Television

Advertising using television is not expensive and on average a minute advert will normally cost about 200 dollars.

2. Radio

Radio advertisements are funded by the government by about 60 percent but its revenue additionally relies of this sources. Community owned radios are not permitted to make commercial adverts.

3. Print

Print advertisement appears to be the most expensive since a single page may cost more than 300 dollars.

4. Internet

The internet is inexpensive but is highly available to a selected group which makes it to be ineffective.

5. Other media
6. Coverage of various media

The general media coverage creates millions of dollars to the state. Television and radio are the highest contributor as it generates more than 40 percent. The general coverage of these Medias account to more than half the population with free airing.

1. Percentage of population reached by each medium

By 2015 more than 30 percent of the populace owned televisions while more than 60 percent owned radios. The users of print media account for one million as compared to the general population.

References

Mutabazi, S. (2017). Rwanda Steady Rise of Africa’s Middle Class Is Critical. Retrieved from http://allafrica.com/stories/201408210710.html

RDB. (2017). Infrastructure. Retrieved from http://www.rdb.rw/rdb/infrastructure.html

Santander, B. (2017). Rwanda Foreign Investment. Retrieved from https://en.portal.santandertrade.com/establish-overseas/rwanda/investing-3

Trading economics. (2017). Rwanda’s GDP per capita. Retrieved from https://tradingeconomics.com/rwanda/gdp-per-capita

 

Appendices

Appendix 1: GDP per capita

Appendix 2: Rwanda GDP Growth

 

Part III: Market Audit and Competitive Market Analysis

            Executive Summary

            T-Mobile has a great potential of fitting into the Rwandan market which is characterized by low competition. Despite the fact that the corporation will be offering affordable and quality commodities it should be ready to overcome competition based on resistance since most individuals prefers to embrace goods that are generated locally. The phones will be made available both to the urban as well as the rural setting. However, given that the high populace is located in the rural setting it is apparent that the company will focus its operations there. The goods will be offered through retail sales to create both accessibility and availability. Radio will be the primary advertisement means so that a wide large of consumers can be accessed. The company will be engaging in competition with some international brands which are doing well in the market but through a differentiated approach.

1. Introduction

            Rwanda is ranked among the youngest economies globally as after the war it was focused to start again. Most individuals are not therefore able to acquire quality phones that have high signals in communication. In addition the lack of proper education and the illiteracy state hinders most of them from understanding in general the significance of communication (Index Mundi, 2016). Most of them in the rural setting are forced to walk longer distances in search of networks or to deliver information. T-Mobile is the real solution in this case because it will seek to ensure that communication is enhanced. The company’s phones will have the potential for accessing social media sites which will create the means for acquiring information and bridge the existing gap. The corporation is seeking to create its positive impact in the specific industry through the provision of safe and convenient communication. This venture will positively grow the economy and transform individual’s lives.

1. The product
2. Evaluate the product as an innovation as it is perceived by the intended market
3. Relative advantage

            Customized cell-phones are beneficial due to their low prices, convenience, flexibility and usage ease.  T-Mobile phones are the affordable communication means which will ease the daily operations. In addition the phones are resources friendly since they can last with charge for up to a week which means that for those without electricity it will be a friendly venture.

2. Compatibility

            The income of individuals in Rwanda is particularly low given that the economy is still in its development stages. This therefore means that the directed budget for the secondary expenses is also low. T-Mobile offers compatibility because it necessitates low maintenance and purchasing budget as compared to what is being offered by other companies. This will ensure that the Rwandese benefit from convenient and quick communication.

3. Complexity

In using the products less skills are required since the items will be customized to fit into the experience of the consumers. This are simplified that even those without basic knowledge will have the capability to operate.

4. Trialability

The goods can be evaluated in a limited time which will include a minimum of two different trials where one will be focused on the urban populace while the other will be objected to create awareness within the rural setting.

5. Observability

The phones are compatible with the economic situation in Rwanda which will be utilized for a number of purposes. These include emergencies, business communication, interactions and for leisure while using the internet.

1. Major problems and resistances to product acceptance based on the Preceding evaluation

Despite the fact that the company will be venturing using low cost the populace is bound to resist.  The investment may be categorized as unnecessary because several other communication products have been adopted. These issues will be overcome through proper marketing while introducing the products in the market. Mostly more resistance may be acquired given that most will consider it to be a foreign investment that does not benefit the state.

III. The market

1. Describe the market(s) in which the product is to be sold
2. Geographical region(s)

            T-Mobile products will mainly be sold to the urban as well as the rural setting. The focus in the urban location will be in large towns and cities. Given that the country’s road transport is well developed this be useful in easing exports. Thus this will require creating awareness on the low prices, ease use, availability and low maintained in all the regions.

2. Forms of transportation and communication available in that (those) Region

            Most of the communicating products are highly available in the urban setting while the rural areas are more limited to such products. This is influenced by the conditions of the areas where retails stores are not available and those that are present offers specialized goods with high prices. Information access is mainly acquired through radio and television since the internet phones are priced highly and this hinders their adoption. Most of these phones cannot access adequate communicating signals and most of the residents can barely purchase the actual phones.

3. Consumer buying habits
4. Product-use patterns

            Most of the products are acquired on the grounds of social pressure. However the buying tendency is low because most of the buyers are conscious about the prices. Most of the products remains in the store without any purchase.

1. Product feature preferences

            What most individuals assess while buying products are prices, quality and availability. Quality is mostly preferred but most are not willing to pay higher based on their income situation. Trendy is an addition buying force where more than 50 percent of the population will make purchases due to being fashionable (Weisskopf & Schlumberger, 2014).

1. Shopping habits

            The East and central African regions tends to be particularly loyal to certain commodities but most are always willing to make trail of fresh products.  Most will spend much time in search of goods with low prices so it is essential to align the products with the appropriate prices.

4. Distribution of the product
5. Typical retail outlets

The product will be typically sold in normal retail shops in the urban setting and the rural locations of the retails for the goods is not Customized.

1. Product sales by other middlemen

Second hand phones are sold by middlemen via classified advertising through direct sales.

5. Advertising and promotion
6. Advertising media usually used to reach your target market(s)

            The primary advertising means is the use of radio for the general target population given that most individuals own a radio and the kind of commination can additionally reach those in the rural settings. Given that most individuals hold zero or little reading skills print advertising might not be useful (Rwanda, 2016). Word direct conversations are also useful which may create a positive reputation.  Work of mouth is therefore a recommended marketing strategy which will also create awareness.

1. Sales promotions customarily used

            Customarily and sales production strategies are not common since the products can be enjoyed using the prices offered on retail basis.

6. Pricing strategy
7. Customary markups

            Most corporations engages in donations of basic products to the poor individuals. The establishment of most companies is to operate within reasonable costs and values. Through affordability consumers are able to acquire the products while the company acquires its profit.

1. Types of discounts available

Given that phones are offered at minimal prices discounting is never an option since it might results to losses.

1. Compare and contrast your product and the competition’s product(s)
2. Competitors’ product(s)

            T-Mobile phones will mainly be provided at reduced prices in all the location within the state. In addition the company’s products are customized to meet the illiteracy and skills needs of the consumers. This therefore implies that unlike the products offered by the competitors these goods will be friendly to user. In addition the phones will have higher abilities of acquiring signal especially in the rural areas. The better life is extensive which leads to being cost efficient.

1. Brand name

            Samsung is the leading seller of phones in Rwanda. However based on the brand name the company offers products that are highly prices which hinders the capability of most individuals from buying.

1. Features

            Samsung mainly offers quality and advanced products. These phones are however characterized by high prices. The phones are fit for the telecommunication in the state but the barrier is the prices and the unfriendliness to user due to be more advanced.

1. Package

            The packaging is normally different depending on the model and trend. Typically they are characterized with different colors and sizes to suit what the consumer’s needs.

2. Competitors’ prices

            The competitors pricing is grounded on user benefits and market pricing. This is because the products are advanced and given that the consumers are to enjoy a number of benefits the pricing is usually high.

3. Competitors’ promotion and advertising methods

            In particular the competitors utilizes radio and television advertising. This is on the grounds that it has the potential of reaching an extensive number of individuals. Promotions are usually held annually where goods are offered at discounted prices.

4. Competitors’ distribution channels

            The company utilizes both retail and wholesale as the main distribution modes. These outlets are preferred due to the ease of accessibility and also in ensuring that products are available when required.

1. Market size
2. Estimated industry sales for the planning year

            Based on the current data it was established that in 2015 the company sold a total of 30,000 phones (Pottier, 2002). The company is currently the leading one since it ventured in the country a few years back. There is the potential of experiencing growth within the market because the competition will grow and individual will learn about the fresh ventures.

2. Estimated sales for your company for the planning year

            T-Mobile believes that it will sale 5000 phones in the first operation year while in the quest of promoting better communication (Trade Government, 2017). The competition will mainly be focused on both the urban as well as the rural setting. This is because the company seeks to create awareness on the shortest period and grow extensively.

1. Government participation in the marketplace
2. Agencies that can help you

            USAID is one of the leading agencies that the company can depend on as it is objected on lowering poverty by eliminating obstacles and creating more opportunities for investment. The agency can be essential in the creation of opportunities within the domestic market.

2. Regulations you must follow

            Foreign investors are required to acquire licensing from the commerce ministry. Moreover all the import products are subject to taxes and phones are not an exemption but no additional charges will be necessary.

 

 

            References

Ensign, M. M., & Bertrand, W. E. (2010). Rwanda: History and hope. Lanham: University Press of America, Inc.

Heshmati, A. (2016). Economic Integration. Springer International Publishing.

Heshmati, A. (2017). Studies on economic development and growth in selected African countries. Singapore: Springer Nature.

Kimanuka, O. (2009). Sub-Saharan Africa's development challenges: A case study of Rwanda's post-genocide experience. New York: Palgrave Macmillan.

West, D., Ford, J. B., & Ibrahim, E. (2015). Strategic marketing: Creating competitive advantage. Oxford: Oxford University Press.

 

Appendices

Appendix 1: Market Analysis

 

Appendix 2: Market Analysis

 

PART IV: Preliminary Marketing Plan

            Executive Summary

            T-Mobile’s target is broad because the products can be utilized by anyone as they cover all the age brackets. However, the company will mainly focus on the ages between 15 and above. Since the corporation anticipate to make 5000 products sales within the first year the annual sales should account to 500,000 dollars. The company owns high capital and this therefore makes it easier to venture the market that is characterized by a number of uncertainties. So that the company can acquired a competitive position the company can start by researching on the suitable pricing approaches. Minimal modification of the goods will be necessary based on the economic status of the country. The objective is to ensure that the products are adopted easily and widely. The company will seek to work on minimal cost ranging from staffing and transportation. This will therefore facilitate the objective of reaching a wide consumer range.

1. The marketing plan
2. Marketing objectives
3. Target market(s)

            The general target market of the companies are the middle aged persons and the youths who are always willing to make fresh purchases based on fashion trend and the need for innovation. The group is appropriate when it comes to mobile phones usage.

2. Sales forecast years 1-5

            The forecast for the first up to the fifth year will be 6.7 million dollars as the sales will increase with an increase in wariness as well as marketing. The company has confidence that its efforts will pay.

3. Profit forecast years 1-5

            The forecast for the five years profit will be about 2 million dollars (Ensign, & Bertrand, 2010). After a few operation years the company intends on creating more market for its products.

4. Market penetration and coverage

            The marketing saturation is targeted amid the middle aged persons and youths who need to adopt to trend and technological products.

1. SWOT Analysis
2. Strengths

            Some of the internal strengths held by the company includes human resources, positive reputation, physical resources and low completion as an external force.

2. Weaknesses

The project might necessitates more staffs and additional resources due to the complexity and this may result in high costs.

3. Opportunities

The company holds the opportunity of improving the state’s economy by creating more jobs which will in turn build a positive name for the corporation and high sales.

4. Threats

Opposition of change by locals is the main threat. In addition time delay based on the transportation mode and the issues of acquiring stores based on the setting of some areas may be additional issues.

1. Product adaptation or modification
2. Core component

            T-Mobile will be offering economic friendly products that will seeks to offer more value to the cost conscious persons and those with low operating skills. The design will seek to fit the general needs of the individuals within the setting with some tuition features that will offer more value to its consumers.

2. Packaging component

            Trademarks for all the goods will be featured visibly along with the logos, colors and features that will create familiarity with these products. The trade-name has been simplified to EC0-Mobile. The products will not be customized as they do not possess any irrelevant labels. However customization and adding more simplified features will be a necessity.  Pricing will be affordable so that it may reflect the general income for the consumer’s income levels.

3. Support services component

Simplified manual both written and audio will be provided to all the buyers. These instructions will be authored in French and English. Based on the low level of understanding the instructions will be accompanied by visuals to make the easier.

1. Promotion mix
2. Advertising
3. Objectives

            Advertising will mainly be objected at creating awareness in all the areas. Given that more than 70 percent of the populace exists in the rural areas there is a need to accessing them (West, Ford & Ibrahim, 2015). So that the investment can be worth the messages will be promoted through advertisements.

1. Media mix

            The primary advertisement media will be radio since it is available to most individuals in all the settings. In addition they create more opportunities for broad casting in different languages. T-Mobile will request the public to embrace the products based on the benefits that they will acquire print media and television advertisements will also be incorporated to suit the lives of urban places.

1. Message

All the advertising messages in general will be designed to be able to promote awareness of the company’s goods while showing the effects that the products will bring. Given that the products are ease to be operated and highly affordable this will create favorable relations.

1. Costs

            T-Mobile has allocated at least 300,000 dollars that will be funding marketing campaigns and advertisement. The funds will be distributed in portions where the first portion will be for radio advertisement alone and the rest will be serving other advertisement channels like prints and television.

2. Sales promotions
3. Objectives

Sales promotion will mainly be objected at attracting new consumers who are interested in both affordability and quality.

1. b. Coupons

During the holiday dates coupons will be made available where the consumers will acquire products at discounted prices.

3. Personal selling

            The company will not be focusing on personal sales due to the cost involved but it will focus on retail sales.

4. Other promotional methods

Sales campaigns will be held so that the company can promote mobile phones acceptance and adoption.  This events will seek to create better relations amid the consumers and the corporation.

1. Distribution: From origin to destination
2. Port selection
3. Origin port

            The origin port will be Gisenyi where the phones will be delivered in containers to Kibuye and Cyangugu. This will create direct distribution to retailers who will distribute to the retailers until the consumers accesses the products.

1. Destination port

Kibuye and Cyangugu will be the destination ports which will create opportunities for export.

2. Mode selection: Advantages/disadvantages of each mode
3. Railroads

            Given that most of the railroad were destroyed in the war period the infrastructure is still under construction and may not be effective. However this kind of transportation can be used in reaching more people.

1. Air carriers

            Air ways is fast on delivery but expensive where the cost may affect the products prices and therefore not necessary.

1. Ocean carriers

            Ocean transportation is cost efficient and reliable despite the fact that they need more time. Due to the unpredictable natural forces this mode may not be beneficial.

1. Motor carriers

            In short distances road transport is highly necessary but the road system is good in Rwanda which makes it convenient in some regions.

3. Packing
4. Marking and labeling regulations

            Labeling will be emphasized during transportation to ensure safety of the products. This will be done in English.

1. Containerization

Conternarisation will be adopted in minimization of transport cost as well as creating flexibility, safety, reliability and convenience.

1. Costs

The involved costs will be involved.

4. Documentation required
5. a. Bill of lading

The lading bill will incorporate the shipping details, weight of shipment, number of goods and destination. This can be used in acknowledging goods delivery.

1. Dock receipt

A receipt dock is utilized as the receipt of conformation in reference to goods being received

1. Commercial invoice

Commercial invoices are required to establishing goods value to international transport. The invoice identifies the weight, shipment total, goods description, and value, charges of insurance, date and sales terms.

1. Pro forma invoice

The document offers a description of goods quantity and type which includes weight, charges of transport and value. This is a seller’s estimate to the consumers before delivery is done.

1. Shipper’s export declaration

For commodities that are over 2,500 dollars in value this document is needed.

1. Statement of origin

            This is similar to the origin certificate that is necessary in some states for certain or all goods. This requires the exporter to make verification regarding the need for the consumer of freight forwarder’s knowledge regarding it.

5. Insurance claims

Based on contingency measures a number of insurance coverage’s will be made. This will be used in covering both lost as well as damaged commodities. In addition pictures of the products prior to shipping must be taken and records documentation stored properly.

6. Freight forwarder

            Freight forwarder will be required in moving goods amid the consumers and different transportation services. This helps in creating better communication, maintaining safety of the products. Offering advice of the suitable transport mode and keeping documents for export.

1. Channels of distribution (micro analysis).
2. Retailers
3. Type and number of retail stores

Retail stores occupies a large segment within the market with over 3000 stores.

1. Retail markups for products in each type of retail store

Retailing markup is standardized for all products.

1. Methods of operation for each type (cash/credit)

Credit and cash are the acceptable payment modes in both wholesale as well as retail.

1. Scale of operation for each type (small/large)

The operations scales for all is usually small and middle sized based on the operation cost.

2. Wholesale middlemen
3. Type and number of wholesale middlemen

The number of wholesalers is large generally.

1. Markup for class of products by each type

For products markup they utilizes standard markup of products

1. Methods of operation for each type (cash/credit)

Credit and cash are the acceptable payment modes in both wholesale as well as retail.

1. Scale of operation (small/large)

            The operations scales for all is usually large and middle sized based on the operation cost as well as the wide range of commodities.

3. Import/export agents

            Africa Trading Company is the selected import as well as export agent and they will be assisting in products transportation. The company is a leading logistic company in Africa that will assist T-Mobile in acquiring a competitive edge.

4. Warehousing

            The prime warehousing will be done in Kigali. This is to facilitate goods access and to make transportation to the different locations. The wholesalers will locate their own warehousing and storages individually.

1. Price determination
2. Cost of the shipment of goods

            In every cubic note the shipment will cost 10 dollars and deliveries made in Kigali. All the costs will thus be included in the general cost of transportation.

2. Transportation costs

            The general cost of transportation will be minimal since the items will be packed and this might require one container.

3. Handling expenses
4. Pier charges

Staff fee will be 15 dollars

Handling charge 75 dollars

CFC release 75 dollars and pier charge being 5 dollars.

1. Wharfage fees

Every vessel will be charged on the grounds of the loads in the container for a about 4 dollars.

1. Loading and unloading charges

Loading and unloading fees will vary but will be indicated on the appendix section.

4. Insurance costs

            The insurance is bound to cost at least 5000 dollars which is expensive but necessary based on the goods vulnerability.

5. Customs duties

Customs duties in Rwanda are in average about 5 percent.

6. Import taxes and value-added tax

            No additional charges will be necessitated after paying customary. VAT will be 18 percent of the revenue.

7. Wholesale and retail markups and discounts

            In particular periods strategic discounts are usually applied in retails stores annually without affecting the sales. Based on the fact that the company does not focus on creating high margin markups are discouraged by the corporation. Affordability is what matters.

8. Company’s gross margins

            The units of sales will be 5000 items, the cost per every unit being about 80 dollars leading to 540, 000 as the forecast sales, expenses will be able 1,000,000 and the profit leading to a profit forecast of 460,000 dollars.

9. Retail price

The minimal retailing price is 80 dollars.

1. Terms of sale
2. EX works, FOB, FAS, C&F, CIF

            Ex work can be regarded as a term of trade that mainly requires the delivery of goods by the seller while the cost of transportation and other additional cost is grounded on the buyers (Heshmati, 2017). On the other hand FOB is a board indication that the sale procedure has been accomplished (Heshmati, 2016). FAS necessitates the seller to make goods delivery alongside a designated naming of the respective buyer (Heshmati, 2017). C and F represents freight and cist send this implies that the seller is to make payment of the shipping cost while the buyer is generally to pay for insurance. CIF represented freight cost that has been insured. This means that the buyer is to bear the shipping cost as well as insurance to the shipment designation (Kimanuka, 2009).

1. Methods of payment
2. Cash in advance

Cash advance as a payment mode will be accepted

2. Open accounts

Open account will also be accepted in payment

3. Consignment sales

Consignment will be made for products delivery.

4. Sight, time, or date drafts

All the transactions will be recorded

5. Letters of credit

Credit letters will be accepted as a payment mode.

1. Pro forma financial statements and budgets
2. Marketing budget
3. Selling expense

The sales expenses will be incurred by the retailers and wholesalers.

1. Advertising/promotion expense

Advertising and promotions costs will be incurred by the company.

3. Distribution expense

            The wholesalers will be reliable in distributing goods to the retailers who will be forced to bear this cost of distribution. Any distribution cost will not be charged on the corporation.

4. Product cost

            The product will mainly be determined by the producing company where the price of each should be lower than 80 dollars.

5. Other costs

            The company needs to design its website so that the consumers can access information regarding any products and the associated cost. This will cost about 300 dollars.

1. Pro forma annual profit and loss statement (first year through fifth year)

Years	Year 1	Year 2	Year 3	Year 4	Year 5
Items Sold	5000	5500	8000	10000	14500
Cost Per Item	100	100	100	100	100
Sales Forecast	$500,000	$550000	$800000	$1000000	$1450000
Expenses	$1,000000	$500000	$550000	$600000	$650000
Profit Forecast	$500000	$500000	$120,000	$400000	$800000

 

III. Resource requirements

1. Finances

            The general budget for the company is 1,000,000 dollars. About 50000 will thus be distributed in the manufacturing, distribution to the retails and 300000 will mainly cater for the marketing and promotion and the remainder will be allocated to unanticipated expenses.

1. Personnel

            Properly trained staffs will be employed with adequate, knowledge skills as well as knowledge regarding products and the mission of the corporation. All the outlets will be managed by managed professional.

1. Production capacity

            For the foreign investment the company has about 5000 units. As the brand name increase the market share and the profit for the corporation will grow to 10,000 items and above by the fifth year.

 

 

            References

Ensign, M. M., & Bertrand, W. E. (2010). Rwanda: History and hope. Lanham: University Press of America, Inc.

Heshmati, A. (2016). Economic Integration. Springer International Publishing.

Heshmati, A. (2017). Studies on economic development and growth in selected African countries. Singapore: Springer Nature.

Kimanuka, O. (2009). Sub-Saharan Africa's development challenges: A case study of Rwanda's post-genocide experience. New York: Palgrave Macmillan.

West, D., Ford, J. B., & Ibrahim, E. (2015). Strategic marketing: Creating competitive advantage. Oxford: Oxford University Press.

 

Appendices

Appendix 1: Market Analysis

Appendix 2: Market Analysis