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26 Sep 2023

Baseline Market Assessmnet on Financial Sustainability Through Textile Manufacturing & Personalization Business For Krcs by Thread & Ink Printing at Kenya Red Cross Society

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Job Description

Kenya Red Cross is one of the many International Red Cross and Red Crescent Movement societies around the world. The Kenya organisation was established in 1965, The Kenya Red Cross supports and runs a number of projects whilst raising awareness to the Kenyan public about the current issues or problems which may affect them.

Purpose

The primary purpose is to conduct a market research study on market availability, market penetration, and scaling of a garment manufacturing and personalization business for KRCS. The baseline evaluation will seek to provide relevant data and analysis against the Project indicators and understand the market status.

Background Information

  • Thread & Ink Printing and Embroidery (TIPE) is running a 5-year National Society Investment Alliance (NSIA) pilot program funded by the International Federation of Red Cross and Red Crescent Societies (IFRC) Switzerland aimed at strengthening Kenya Red Cross Society (KRCS) financial sustainability and economic growth.
  • The objective of TIPE is to contribute to sustainability of growing regional branches and job creation for the constituents of KRCS North Rift Region. The program will also contribute to the diversification of the economy. The National Society Investment Alliance (NSIA) is a pooled funding mechanism, run jointly by the IFRC and the International Committee of the Red Cross (ICRC). It provides flexible, multi-year funding to support the long-term development of Red Cross and Red Crescent Societies.
  • Thread & Ink Printing and Embroidery (TIPE) is an entity engaged in mass production of ready-made garments, embroidery, screen printing, DTF and heat transfer as the specialized branding services company. Thread & Ink Printing and Embroidery is established as an entity fully owned and operated by Kenya Red Cross Society North Rift Region. TIPE provides high quality fabric to the residents of Eldoret and its environs where they select from a variety of sizes and quality to the liking of our customers.

Project Objectives

TIPE main objective is to Establish an Effective Production and Collaboration Process in the Textile Industry.

Its specific objectives are;

  • To create a profitable and sustainable branding and embroidery business,
  • To expand to a fully operational facility by the end of the year 2023,
  • To increase sales to local businesses, teams, groups, and organizations through more aggressive marketing,

Key Project Stakeholders

  • The Project will be implemented in close coordination with the market actors, the regional governance committees and the Organizational County branches.
  • At donor level, the key stakeholders include the International Federation of Red Cross and Red Cresent as well as the International Committee of Red Cross.

Assessment Purpose & Scope

Purpose

  • The purpose of the evaluation will be to analyze the commercial viability of the products in the market including supply chain and value addition. Further, the study will recommend strategic entry points in order to fully utilize the opportunities available in the markets for our products. The study should also record lessons learned and recommendations by other market actors.

The specific objectives of the study will be:

  • Identifying categories of products that will be produced, sustainability criteria for each category of product, relevant certification instruments, and equipment needed for production.
  • Competitive landscape analysis using Porter’s 5 forces (Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of new substitutes, and Competitive rivalry) – identification of direct and indirect competitors, understanding of the competitor strengths and weaknesses and identifying potential points of opportunity (list of buyers’ leads) or barriers to entry and growth.
  • Evaluation of the textile and personalization services market to formulate key awareness messages and awareness campaigns that will resonate with consumers and maximize the awareness-raising effort.
  • Research and identify potential local and domestic market opportunities for products and determine ways in which to best penetrate selected markets.
  • Conduct a detailed strategy assessment of key markets
  • Are there additional indicators to assess that will add value to project processes?

Key questions

The evaluation is expected to answer the following questions:

Market Mapping, Positioning and Potential Analysis:

  • What is the current market size and growth rate?
  • Who are the main buyers, and what drives their consumption patterns?
  • What are the major trends and issues shaping the market?
  • How is the market segmented, and what are the key channels for marketing and distribution?
  • What are the gaps in product offerings and marketing capacity?
  • How does supply meet demand in terms of quality and volume?
  • What are the expected market trends and values?
  • What challenges and constraints do market players face, and how can they be addressed?
  • What is the sustainable market potential for new products?
  • Are their opportunities for value addition and supply chain efficiencies?
  • What policies and support systems are required for successful market entry and sustainability?
  • Where are the strategic opportunities for TIPE’s enhanced market participation?
  • How can TIPE position itself effectively in the market?

Market Share, demand and Requirements:

  • What is the current market share for selected products and services?
  • Can historical data and forecasts provide insights into supply evolution?
  • What are the volumes of orders, and who are the key purchasers?
  • What are the regulatory and quality standards, and what are the barriers to entry?
  • How are prices, delivery terms, and payment conditions structured?
  • What are the strengths, weaknesses, opportunities, and threats for the identified products and market opportunities?

Success Stories and Partnerships:

  • Are there relevant success stories or case studies to learn from?
  • What partnership opportunities exist, and how can they be leveraged?
  • How do similar programs in other regions or countries compare in terms of value, demand, utility, and cost?
  • How do branding, advertisements, and selling techniques influence purchasing decisions in this market?

Policy and Information Needs:

  • Are there specific policy issues or levies to consider?
  • What information is crucial for effective market engagement?

Survey Methodology

  • The consulting firm/individual will propose the most suitable study design, sampling frame, sampling methods, and approach, sample size, data collection, and analysis approaches that is suitable for this assignment. The approaches need to be justified and well explained in the inception report. The Consultant is expected to present an articulated and coherent methodology for the requested market research which will allow for very practical references to the above-mentioned sectors and which will show a deep understanding of the target market.

The Consultant will use the following literature for reference and to inform the survey process further:

  • Project proposal and log frame
  • Documents, policies, and frameworks by partners, county and national government

Project Indicators

Priority Area

Expected results and activities

Indicator

  • Expected Result: Establish an Effective Production and Collaboration Process in the Textile Industry.
  • Percentage of branches Supported by the seed funding whose IGA are existing and profitable beyond 1 year
  • Average production cycle time (from raw material intake to finished product) compared to the baseline.
  • Percentage reduction in production downtime due to maintenance or technical issues.
  • Production cost per unit compared to previous costs or industry benchmarks.

Area 1: Production Collaboration

Outcome 1: Enhanced Business Partnerships and Improved Governance

  • Percentage increase in the number of business opportunities or joint ventures initiated through the signed MOUs.
  • Number of instances where the RPT policy was followed, and potential conflicts of interest were appropriately managed.
  • Level of compliance identified during audit process as a result of adherence and effectiveness of the RPT policy.

Outcome 2: Strengthened Effectiveness and quality control for the Textile business

  • Customer satisfaction index based on product quality surveys.
  • Inventory turnover ratio compared to industry standards.
  • Percentage reduction in excess raw material inventory and associated carrying costs.
  • Supplier evaluation score based on factors like quality, reliability, and responsiveness.
  • Defect rate percentage in finished products compared to the target defect rate.
  • Percentage increase in the proportion of value-added products (e.g., specialty fabrics, designer collections) in the production mix.

Area 2: Operationalizing the facility fully

Output 2.1 An improved fully Operational Facility by the End of the Year 2023 established

  • Average lead time for sourcing materials and delivering finished products.
  • Number of new product lines introduced within the textile production portfolio.
  • Percentage of employees trained in quality control procedures and techniques.
  • Percentage of products passing quality control inspections and meeting specified quality standards
  • Number of strategic partnerships established with suppliers to ensure a stable supply chain.
  • Percentage of production capacity Quarterly

Area 3: Diversification of Revenue streams

Outcome 3: Contribute to enhancing KRCS is an organization fit for purpose through provision of support to strengthen branch development capacity

  • % of branches Supported by the seed funding whose IGA are existing and profitable beyond 1 year
  • % Percentage of branches that have requested and received Funds from the revolving fund platform

Output 3.3: Creation of a sustainable Financial Support platform for branches within the National society

  • % Contribution of the textile business proceeds to the revolving fund

Area 4: Project Management

  • Outcome 4: Effective and Successful management of the enterprise by ensuring Strict Financial Controls and personnel continuous support
  • Average response time for communication and decision-making between production teams and management.
  • Employee satisfaction score based on surveys or feedback mechanisms.
  • Employee retention rate within the production department.
  • Level of satisfaction on the stakeholder management process
  • % achievement against risk mitigation measures as enlisted in the business risk register

Quality & Ethical Standards

The consultant shall take all reasonable steps to ensure that the evaluation is designed and conducted to respect and protect the rights and welfare of the people and communities involved and to ensure that the assessment is technically accurate and reliable, is conducted in a transparent and impartial manner, and contributes to organizational learning and accountability. Therefore, the evaluation team shall be required to adhere to the assessment standards and applicable practices as recommended by International Federation of Red Cross and Red Crescent Societies.

  • Utility: Assessments must be useful and used.
  • Feasibility: Assessments must be realistic, diplomatic, and managed in a sensible, cost-effective manner.
  • Ethics & Legality: Assessments must be conducted in an ethical and legal manner, with regard for the welfare of those involved in and affected by the assessment.
  • Impartiality & Independence; Assessments should be impartial, providing a comprehensive and unbiased assessment that considers the views of all stakeholders.
  • Transparency: assessment activities should reflect an attitude of openness and transparency.
  • Accuracy: Assessments should be technically accurate, providing sufficient information about the data collection, analysis, and interpretation methods so that its worth or merit can be determined.
  • Participation: Stakeholders should be consulted and meaningfully involved in the assessment process when feasible and appropriate.
  • Collaboration: Collaboration between key operating partners in the assessment process improves the legitimacy and utility of the assessment.

It is also expected that the assessment will respect the seven Fundamental Principles of the Red Cross and Red Crescent: 1) humanity, 2) impartiality, 3) neutrality, 4) independence, 5) voluntary service, 6) unity, and 7) universality.

Qualifications and Experience for Consultants

The lead consultant must possess the following qualifications:

  • At least a Master’s degree, in business administration, corporate sustainability, marketing or similar.
  • Excellent oral and written communication skills in English, and/or Swahili language fluency is a strong plus. The ability to prepare well written, analytical reports (as well as edit and proofread) is essential.
  • It is needed to have prior experience working with NGO’s, NPO’s and NFPO’s.
  • Proven experience and expertise in commercial and market research for textile manufacturing, embroidery, screen printing, sublimation and engraving industries and a deep understanding of the market globally.
  • Have participated in similar assignment and supported developing business plan
  • Expertise in quantitative and qualitative data analysis with an ability to synthesize information in narrative and non-narrative formats.
  • A strong network of stakeholders that can support with market-based research and industry insights/data.
  • No conflict of interest with TIPE, KRCS, NSIA and IFRC.
  • Demonstrated understanding and ability to organize and maintain research data and produce structured datasets.
  • Strong interpersonal skills and ability to work with poise and professionalism in client-facing engagements and with appropriate sensitivity when conducting interviews or evaluations.
  • Team player with strong organizational skills and demonstrated ability to handle multiple tasks simultaneously with minimal supervision and with strong self-direction and the ability and willingness to proactively identify and propose solutions.
  • Available during the study period

 Evaluation Management Team

  • The evaluation management team shall consist of KRCS MEA&L Unit representatives, KRCS program Manager/Regional Manager and HQ Representatives. They shall ensure that the deliverables agreed upon and approved in the inception report are achieved on time. KRCS MEA&L representative will be the chair of the team.

Role of KRCS (project and M&E team)

  • Lead the recruitment and evaluation process.
  • Coordinate the evaluation implementation process.
  • Review of assessment products including the inception report tools, and reports.
  • KRCS will organize logistics for the assessment team.
  • Avail all necessary documents for desk review.
  • KRCS will be the link between the community, stakeholders and the consultant and will organise all the data collection activities (identifying respondents and setting up appointments)
  • Will be the custodian of all data generated from the assessment.
  • Organize dissemination forums as necessary.
  • Participate in the TOR development.
  • Review and give feedback on all evaluation products.
  • Fund the activity budget.
  • Final approval of the report

Application Requirements

Application materials shall include:

  • A written response to this TOR in terms of a proposal detailing the technical understanding of the task, proposed methodologies of the evaluation, expected activities and deliverables, proposed work plans with schedule, and financial bids. See Annex 1
  • Detailed CVs of all professionals (s) who will work on the evaluation. If there is more than one contractor on the proposed evaluation team, please attach a table describing the level of effort (in number of days) of each team member in each of the evaluation activities. See Annex 3
  • Professional references: Please provide at least three reference letters from your previous clients and full contact details of the referees (working and active email & phone number).
  • Attach 2 sample reports of relevant previously completed assignments.

Please also note that the people whose names appear in the team composition template MUST be the ones to undertake the evaluation. As such, they MUST be the ones to appear in person if the proposal moves to the interview stage.



Method of Application

Submit your technical and financial proposal clearly marked Technical Proposal-Name of consultant and Financial Proposal-Name of consultant ,CV, copies of relevant documents and Application to  [email protected]
Use Tender No. PRF14357 as the subject of the email

Closing Date : 4 October. 2023





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