Market Research

Market Research Terms of Reference   Background With the support of the EU Madad Trust Fund and DANIDA/ Ministry of Foreign Affairs of Denmark, and under the Regional Resilience and Livelihoods Programme for Syrian refugees and host communities, the LEADERS Consortium (composed of ACTED, Danish Refugee Council, CARE, Oxfam, Makzoumi Foundation and Save the Children) aims to contribute to the economic self-reliance, resilience and social stability of displacement-affected populations in Jordan and Lebanon as prioritized by the Regional Refugee and Resilience Plan (3RP). The Programme aims to work towards enhancing economic stability of all displaced and displacement affected populations. The intervention targets 250,000 individuals in Jordan and Lebanon, including: Economically vulnerable individuals and households (with a particular focus on women and youth); Existing and scalable private sector enterprises (MSMEs), and private sector associations Marginalized Syrian refugees Municipalities/Cadastres in the most displacement-affected areas hosting refugees Specific objectives include: -       Improved access to sustainable livelihoods opportunities benefitting vulnerable households and individuals, particularly youth and women -       Improved economic enabling environment and service delivery in communities hosting refugees   Scope of work     During the first phase of the implementation, the Technical Management Unit of the Consortium has pre-selected economic sectors in which the project will intervene. In addition, a skill gap analysis was undertaken and has highlighted skill gaps and skill needs as perceived by the private sector.   The market research should utilize an articulated and coherent methodology that captures in-depth findings on the structure and enterprises profiles of pre-selected[1] economic sub-sectors. The research will focus on 2 main subsectors common to the 3 areas of intervention, and additional 2 potential promising subsectors in each area. The  methodology should ensure a deep understanding of the local markets, including the production and trade potential of the MSMEs in the target sectors and areas and barriers for growth. The research will perform a cost analysis that will include the identification of the business sustainability factors for each of the pre-selected subsectors and potential areas of intervention. In doing that, the research will propose different models of adaptation for the micro-small enterprises. . The market research will also clearly indicate the type of market competition[2]characterizing the pre-selected economic sectors and the businesses typology present in the taret areas. The study will clearly indicate which sub-sectors and business typology show potential for growth, are more likely to be competitive and access both local and export markets. The research should propose a ‘ranking’ of sectors and sub-sectors, in order of priority, that will constitute an effective pointer for the strategies of the women and youth enterprises. For each of the recommended business typologies (per sub-sector and per area), the corresponding market segment should be indicated and described, as well as the suitable marketing strategy and distribution channels specified. Within the preferred sectors and sub-sectors, detailed, realistic and context-specific suggestions should be made as for the services, products and product lines that the different MSMEs need. On that basis, the market research will be focused on:   -       The identificiation of sub-sectors, within the pre-identified sectors, with growth potential and high job absortion opportunities, especially for women and youth; -       The description of the business environment – including the current legal and regulatory framework, as well as the realities of implementation - in each targeted locations and each pre-selected sectors (mapping of the most recent investments by the private sector in the targeted areas and MSME profiling including HR policies,  working conditions, Corporate Social Responsibility etc.); -       The identification of the barriers and opportunities for the development and growth for MSMEs; -       The identification of scalable business models in the target locations and target sectors; and -       The identification and recomendation of support opportunities for MSMEs in the target locations and sectors that will provide an enabling environment to MSMEs where vulnerable host communities, particularly women and youth will benefit.   The results of the research will give: -       A clear profile of the types of enterprises present in the target areas, given the sectors pre-identified by the consortium. For each of the enterprise type it will clearly define: the dynamics and linkages among them; the hiring and HR patterns; the marketing dynamics, supply & demand, who are the clients and potential clients; the needs and constraints of growth including on a legal and regulatory level; and the potential services and type of investment that are recommended to allow a sustaible growth.   The findings will also provide an overview of the experience and technical profile desired by private sector companies typology, employment policies, men/women ratios (including incentives in place for youth employment schemes), salary scales, barriers to engage with job seekers with the right skill set and others as identified during the course of the research. The analysis will also identify current patterns of engagement of Lebanese and non-Lebanese workforce. Gender and youth considerations. In alignment with the targeting approach adopted under the Programme, the methodology and undertaking of the research by the selected consultant will adopt a gender-lens and youth-focus, taking into consideration factors relevant to understanding the incentive structure around men’s and women’s engagement in the labor market, the division of skills and the constraints for women and men to meet those required skills, and the untapped opportunities for the young labor force. The findings and recommendations will feed into the intervention partners’ determination of the required actions under the business development component, including financial and non-financial support for already existing MSMEs and for start-ups with high growth potential. These recommendations[3] may include capacity building, mentorship services, liaison services with MFIs/Banks, distribution of seed-funding grants etc. Findings will also assist in the honing of the objectives of the Advocacy Strategy and provide additional direction on the legal and policy calls necessary to create an enabling environment for MSMEs. The reccomendations and the results will also be linked to the employment component of the proposal and the job matching and apprenticeships activities.   Geographic focus   Based on the project target areas, the geographic focus of the research will comprise: (a) Tripoli city in the Tripoli district; and (b) Mount Lebanon - four cadasters (indicatively in Jdaidet El-Matn, Baouchriyeh, Dekouaneh and Bourj Hammoud) in Metn district and (c) Bekaa, Zahle and Baalbeck.   The research will encompass: -       Desk review of secondary data; -       Primary data collection (qualitative) in the above mentioned geographic focus areas; -       Analysis and validation; -       Consolidated research report. Consortium members will be requested to share relevant documents, information and contacts to facilitate the research. In addition, key stakeholders such as Chambers of Commerce, Local Economic Development Agencies, Universities, INGOs/IO working with private sectors and business development, Municipalities, and Unions etc. will be strongly engaged throughout the research.   Deliverables -          In-depth analysis of the selected sectors from the supply and demand point of view, and the final recommendations of viable market strategies to develop MSEs; -          Mapping and profiling of the enterprises present in the target areas given the selected sectors; -          Analytical report detailing the: Business support services (financial and non-financial) required to nurture growth at enterprises level (per each enterprise profile); Skills gaps to be fulfilled at the level of the MSMEs to strengthen human capital of current employees (per enterprise profile and sector); Barriers (related to skills, legal framework, cultural practices, access to services and assets etc.) for the private sector to grow; Recomendations and roadmap for business support and job matching/aprenterships. An assessment of Business Development Services (BDS) provider in the areas of intervention[4].   Research outputs -     Methodological approach and tools – to be submitted for approval. -     Action plan for the consultancy with timeline – to be submitted for approval. -     Briefing meetings (with the Consortium Technical Management Unit, TMU) to present preliminary findings. -     Preliminary findings report. -     Draft research report – to be submitted to the Consortium TMU. -     Final research report consolidating feedback and comments provided by the TMU Consortium. -     Final presentation of report and findings.   The Technical Management Unit of the Consortium will provide the necessary inputs, background documents, and continuously validating the research through its undertaking. Timeframe The consultancy will last approximately 50 days. Date of initiation: as soon as possible.   Expression of Interest (EOI) Interested consultants must submit their bids, in two sections (i) Technical Proposal and (ii) Financial proposal. Bids should be received by the deadline, 13 december 2016 5.00pm (Lebanon Time) to the address mentioned below. Technical proposals should include a preliminary work plan, timeline and methodology. Financial proposals should include a preliminary general budget including consultancy fees. A CV and experience letter of the individuals must be attached with a minimum of 2 references. Oxfam Lebanon Program reserves the right to reject any and all bids, including the Bidding processes, or not to award the contract at any time, without thereby incurring and liability to the affected Bidders. Please submit the EOI and other documents (as mentioned above) by 13 december 2016 5.00pm  Lebanon time to lebanonjobs@oxfam.org.uk, mentioning ‘Market analysis_LEADERS Consortium’ in the Subject line.   [1] During the inception phase f the projects, the Consoritu members have pre-select economic sectors (food services/industries;  construction - electricity +plumbing; promising/niche sectors) against diversified set of criteria . [2] For instance, certain markets are typically dominated by ‘perfect’ competition where businesses compete primarily by price and have to ‘take’ the price set by the overall market demand and supply. Primary production then only makes sense for those large producers who can exploit considerable economies of scale and compete by means of the lowest price. On the other hand, other sectors like crafts are dominated by and ‘imperfect competition’ and markets where competition is by innovation, quality and diversification, and the small - or even micro - scale of operation is not a disadvantage (because there are no big economies of scale to be exploited). In this type of market, the individual firm has more chances of ‘setting’ the price, and precisely the one that will capture a good share of the market while still allowing for an ample profit margin.   [3] Recommendations should have a monitoring tool with identified related risks and opportunities [4] This assessment will be based on a rapid assessement undertaken by the consortium members.