SMKT Full Strategic Plan Final

Organisation name
Jumia
Organisation information
Type of Organisation
Jumia is a for profit public limited ecommerce startup. Jumia started its operation in 2013 and is
headquartered in Lagos, Nigeria.
The platform consists of a marketplace, which connects sellers with consumers through a logistics
service, which enables the shipment and delivery of packages from sellers to consumers; and a
payment service, to facilitate transactions.
Size of Organisation
Jumia has a staff strength of more than 3,000 employees. Jumia revenue breakdown by business
segment is as follows: 11.5% from Fulfilment, 62.5% from Sales of goods, 12.0% from Commissions,
12.3% from Other revenue and 1.7% from other. Jumia’s market value is $1.8b as at June 2019.
Range of Product
Jumia is a one-stop online shop including but not limited to fashion, electronics, food, travel and
more.
Main Competition
Konga.
Specific Background
Overview of Customer base
Jumia’s customer base is 4million spread across Nigeria, and has partnered with more than 81,000
local companies and individuals. 79% of customers access the platform on their mobile phone.
Level of Maturity for NPD
Jumia has well managed and defined processes in its operations to serve the growing customer base.
The number of products available on the platform skyrocketed from 50,000 in 2013 to over 3million
in 2017.
Jumia has created solutions such as pickup centres to enhance deliveries to customers as a response
to the macro environmental challenge of poor transport systems and poor town planning.
One other pressing challenge, a micro environmental one, currently facing the business is cash
payment on delivery, 71% of customers use this. As technological innovations keep improving and
building momentum this will prove unsustainable for keeping the business relevant and meeting
business objectives. According to Thompson et al (2013), competitive advantage is achieved by firms
that can satisfy customer needs better than rivals. Bringing a solution to this will give Jumia a
competitive advantage in the market and creates the opportunity for a new product development.
Strategic Audit
The following models and frameworks audits where Jumia is at currently and an understanding of
performance with a new product development in view. The Internal and External (Micro and Macro)
environment will be accessed to achieve this.
Internal Analysis of Jumia
The Mckinsey 7-S Model is used below for the internal analysis of Jumia to give an understanding of
the resources, capabilities and core competences that enable the business from day to day.
1 2 3 4 5
Strategy X Jumia adheres to cost leadership business strategy.
Jumia has been able to sustain this strategy thanks to
economies of scale and wholesale deals from
manufacturers.
Structure X The structure at Jumia is a functional one due to large

number of employees.
Style Revenue goals are set by top management thereby

providing quick
Systems X Employee recruitment and selection system, team

development and orientation system, transaction
processing systems, customer relationship
management system, business intelligence system,
knowledge management system are used with the
aim of increasing competitive advantage for the
business.
Shared values X Jumia has a set code of business conduct and ethics
that serve as a moral compass for the business and
staff.
Staff X Jumia recruits and trains sales persons to carry out

sale operations. In areas like customer service there
are inadequate hands to process the flow of requests
Skills X Employees are somewhat trained in required skills to

keep up with business trends. There are still
shortcomings communication around customer
service.
External Analysis of Jumia (Micro and Macro)
Micro Analysis
Below is Jumia’s external micro environment analysis using Porters Five Forces model
Bargaining Power of Customers Threat of New Entrants (High)
(High)
There are low barriers to entering
There is abundance of information the ecommerce market, the
facilitating comparison and product technology required to start can
knowledge and also low switching easily be reached.
costs
Competitive Rivalry (High)
Undifferentiated products are

sold by different players and
there is the usual priced-based
competition
Bargaining Power of Suppliers Threat of Substitute Products
(Medium) (Medium)
Multiple suppliers can be listed and Customers always have an option of

thus leaves limited individual making purchases from physical
bargaining power for the suppliers stores
Macro Analysis
External analysis of Jumia using the PESTEL
Political Economic Socio Cultural

 The information  The current economic  Many doubt the security of
communications technology recession in the country. their accounts while making
(ICT) infrastructure that  Unfriendly foreign exchange payment online.
underpins online retailing can policies
be heavily influenced by state  Unfavourable taxation
policy and investment.
Technological Ecological Legal

 The growth of Internet usage  E-commerce will exert its There is the NITDA Draft
in Nigeria continues to influence in various areas of Guideline on Data Protection and
increase, recording over 90% living, like dwelling, working, the Nigerian Cyber Crime Act,
growth from 2000 to 2008 culture, consumption etc 2015 contains rules and
and up to 2016. regulations creating a level
playing field to make it even for
players and create competitive
neutrality in the sector
Summary
Using SWOT/TOWS analysis
Swot analysis
Strengths Weakness
 Strong financial backbone  Low control over sellers

 Brand reputation  Distrust: It’s mostly Cash-on-delivery
 Supply chain logistic and effective  Delivery period can be quite slow often
distribution taking up to 3-4 days
Opportunities Threats
 Growing population  Poor physical infrastructure in the country

 Adding value added services  Cyber attacks
 Content Localization  Substitute markets
SWOT/TOWS Analysis
Strenghts (S) Weakness (W)

Internal S1 Supply chain logistic and W1 Distrust: Cash-on-delivery
effective distribution
Factors
External
Factors
Opportunities (O) S-O Strategies W-O Strategies

O1 Content localization S1-O1 Contents on the site can W1-O1 Presenting products
be tailored for native native languages will improve
languages, thereby increasing trust in Jumia
their customer base.
Threats (T) S-T Strategies W-T Strategies

T1 Substitute markets S1-T1 Improved delivery time W1-T1 Including special
and additional pick-up centres discounts and improved return
policy
Objectives
Mission
Using the internet to connect people.
Vision
The most beloved and trusted shopping destination for Africans.
Objectives to drive competitiveness
1. Launch best pricing for products to have cheapest prices as compared to competitors both
offline and online to increase customers and market share by 70%.
2. Introduce ‘shop on credit’ for high-end costly electronic gadgets exclusive to loyal customers
to increase customer retention customer retention by 50%
3. Create a wallet platform to increase revenue by 40%
4. Customized reviews and ratings to improve purchase and increase revenue by 20%
Strategic Options
Using one of the competitive strategies in the Value Disciplines model, Jumia will achieve
operational excellence as follows
 Offering niche products at a competitive price consistently

 Customer royalty rewards since 18% of profits is by the loyal customer base
 Improved same day delivery and creating more pick-up centres
 Products must have appropriate titles and exact pictures (several views) of product
 Prompt processing of customer refunds, charge backs and card payment reversals
Tactics
Email Marketing
Constantly intimating customers with relevant transactional purchase emails, different kinds of
upsells, and review solicitation. These messages get Jumia customers accustomed to the site and all
of its services, which leads them to continue purchasing.
Customer Loyalty
Jumia can offer exclusive offers and promos for its loyal customers.
Controls and Measurement
Below are recommendations for controlling and measuring the successful implementation of Jumia’s
marketing plan

SMKT Full Strategic Plan Final

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Organisation name

Level of Maturity for NPD

Internal Analysis of Jumia

Structure X The structure at Jumia is a functional one due to large

Style Revenue goals are set by top management thereby

Systems X Employee recruitment and selection system, team

Staff X Jumia recruits and trains sales persons to carry out

Skills X Employees are somewhat trained in required skills to

Undifferentiated products are

Multiple suppliers can be listed and Customers always have an option of

External analysis of Jumia using the PESTEL

Political Economic Socio Cultural

Technological Ecological Legal

 Strong financial backbone  Low control over sellers

 Growing population  Poor physical infrastructure in the country

Strenghts (S) Weakness (W)

Opportunities (O) S-O Strategies W-O Strategies

Threats (T) S-T Strategies W-T Strategies

Using the internet to connect people.

Objectives to drive competitiveness

 Offering niche products at a competitive price consistently

Controls and Measurement

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