Consultant Solicitation – Mod 1

Strategic Segmentation of the Global Value Chain

of Essential Oils and Natural Extracts

Due Date for Applications: February 16, 2018 (to )

Due Date for Questions: February 9, 2018 (to ); Responses will be posted February 12, 2018

Expected Period of Performance: February 25, 2018 – March 10, 2018

Expected Level of Effort: 20 days

Place of Performance:Remote

  1. Context

FHI 360 is launching a new project funded by the Department of State’s “Creating Greater Economic Wealth through the Handicraft Value Chain in Tunisia” program. The project,“Collaborative Action for Handicraft Exports (ACEA),”aims to developing production capacities and quality, and increase exports of extracted essential oils and related value-added products by artisans (mainly women) in the northwestern area of Tunisia from local Aromatic and Medicinal Plants (AMP). Through this project, FHI 360 will create employment opportunities by providing technical expertise to Tunisian artisans to enhance their participation in international markets and increase product exports.

For the needs of this project, a strategic segmentation of the global natural extracts market is needed to establish a good positioning of the Tunisian North West production in essential oils. For this purpose, FHI 360 seeks a consultant or team of consultants to develop a strategic segmentation of the global value chain of essential oils and other natural extracts. This strategic segmentation will focus on natural extracts produced in the Northwest area of Tunisia byrural women in the framework of GDAs (cooperatives) and artisan groups.

  1. Tasks and Deliverables
  1. Draft Strategic Segmentation Report

Based on the approved methodology contained in the technical offer, the consultant will prepare a draft Strategic Segmentation of the global essential oil value chain. This strategic report will: 1) identify the global value chain (GVC) governance structures including key international players and explain the reason of the lack of Tunisian product positioning on it, 2) Channels, market trends and key success factors for participation in those GVCs, 3) Main interesting segments for the identified AMP and their extracts, and 4) Standards to consider integrating these segments (the product itself, its packaging, its image, etc.). Based on this analysis, the report will recommend the products with the highest potential, as well as the suggested positioning of the Tunisian aromatic and medicinal plants.

It is anticipated that upon award of the contract, the consultant(s) and FHI 360 will jointly engage in an initial selection froma short list of plants (rosemary, myrtle, thyme, lentisque, eucalyptus and cedar) and at most three target regions (North America, Europe, Japan/Asia, or Middle East/Africa) for the most detailed treatment in the segmentation exercise. FHI 360 will entertain a regional one-week benchmarking trip to engage with value chain players, on which a member of the client team may wish to accompany the consultant(s). Details of this trip should be included in the proposed methodology.

A trip to Tunisia is not needed, as the ACEA team will be available to perform additional analysis, hold local focus groups or strategy definition workshops, and the like, in synchronicity with the consultant(s).

The Strategic Segmentation analysis of the targeted industry should include at least the following:

  • The evolution of the global attractiveness of the Strategic Segment in which most of the local industry is competing presently, using the 5 Forces Framework to explain the evolution of margins in the last 10 years and expected evolution in the next 10 years. The analysis should be supported by quantitative and qualitative data (especially about the evolution of market concentrations and barriers to entry)
  • Identification and analysis, as above, for three other Strategic Segments (at least), that represent combinations of new products/services and new user groups. A preliminary ranking of the studied Segments in function of the attractiveness to the client country
  • Identification and quantification of the purchase criteria for the most attractive segment, detailing the sources of the analysis, that should include, at least, three international buyers personally interviewed.
  • Justification of which one of the Segments will offer more opportunities to compete for Small and Medium Enterprises, and cooperatives, especially those based in the interior regions of Tunisia.
  • Recommended Value Chain Activities necessary to serve that Segment, including reference to the Minimum Efficient Scale (MES) and investment required for each activity and the maximum delivery times between each activity. This will bein close collaboration with the ACEA team in Tunisia.
  • Identifying the status of those activities in the interior regions of Tunisia. Stating what would be needed, and quantifying the investment, to bring the client value chain up to their competitor’s standards. Include regulatory reforms if needed. This will be in close collaboration with the ACEA team in Tunisia.

Deliverable: Draft strategic segmentation (in English) of the essential oils value chain

Deadline: Three weeks after the contract start date

  1. Final Strategic Segmentation Report

Based on FHI 360’s comments on the draft report, the consultant will prepare and submit the final report with a detailed strategic segmentation of the essential oils and natural extracts value chain.

Deliverables: Final Strategic Segmentation Report (English) and a Powerpoint summary

Deadline: One weekafter official reception of FHI 360’s comments on the Draft Strategic Report

  1. Level of Effort and Remuneration

The Consultancy will consist of a maximum of 20 working/billing days (1 day = 8 hours) between February 25, 2018 and March 10, 2018.

The Consultant(s) will be paid the agreed daily fee rate for every day worked, up to but not to exceed 20 days, with reimbursement for related, budgeted expenses. If a consultant team is proposed, the 20 days should be divided accordingly.

  1. Location

The Consultant(s) will work remotely for the duration of this assignment. Per the consultant’s proposal, a one-week benchmarking trip may take place to engage with value chain players, on which a member of the client team may wish to accompany the consultant(s). FHI 360 will cover all travel expenses.

  1. Required Skills and Qualifications
  • Extensive international experience with strategic market segmentation analysis. References in the essential oils and/or natural extracts value chain would be an asset.
  • Experience in North Africa, Tunisia, and especially the Northwest of Tunisia is desirable.
  • Excellent English and good command of the French language (main available documents are in French).
  1. Submission Requirements

Notes: 1) For a better understanding of the AMP value chain in Tunisia, please review the attached reports. 2) If you plan to submit an application, please inform us at and give a point of contact, so we can send questions received from prospective applicants and responses. The Q&A will also be available on FHI 360’s website.

Consultants may submit applications individually or as teams. Interested candidates should submit the following to :

  • Technical Proposal
  • An updated resume/CV
  • 3 relevant references (per consultant) who can independently verify past work
  • Methodology: proposed approach to undertake the Strategic Segmentation, based on the reports and data attached to this solicitation. Offer should identify any additional information required from FHI 360 to carry out this work and, if desired, include the details of a regional (based on consultant location) one-week benchmarking trip to engage with value chain players.
  • Financial Proposal
  • A full financial proposal that includes at least a completed FHI 360 Biographical Data Form with current daily rate and salary history, and proposed daily rate in USD for completion of the work defined above. A link to the Biographical Data form can be found here:
  1. Evaluation Criteria

Consultants will be evaluated and ranked by committee according to the conditions described in the evaluation criteria below, with a total overall maximum point value of 100. Consultants will first be evaluated and scored from a technical standpoint. Consultants considered to be technically qualified (55 to 80 points) shall then be evaluated in terms of cost reasonableness of their daily rate. The contract shall be issued to the consultant with the highest combined technical and cost score.

Criterion / Weight
Methodology / 40%
Skills and Qualifications / 30%
Fluency in English / 10%
Reasonableness of Price / 20%
TOTAL / 100%
  1. Disclaimers and FHI 360 Protection Clauses

Consultants are responsible for review of the terms and conditions listed below and provided here: Consultant must provide full, accurate and complete information as required by this solicitation and its attachments

Please DO NOT begin work until a contract has been signed between FHI 360 and the consultant.

  • FHI 360 may cancel the solicitation and not award.
  • FHI 360 may reject any or all responses received.
  • Issuance of the solicitation does not constitute an award commitment by FHI 360.
  • FHI 360 reserves the right to disqualify any offer based on offeror failure to follow solicitation instructions.
  • FHI 360 will not compensate offers for response to solicitation.
  • FHI 360 reserves the right to issue award based on initial evaluation of offers without further discussion.
  • FHI 360 may choose to award only part of the activities in the solicitation, or issue multiple awards based on the solicitation activities.
  • FHI 360 reserves the right to waive minor proposal deficiencies that can be corrected prior to award determination to promote competition.
  • FHI 360 will be contacting offers to confirm contact person, address and that bid was submitted for this solicitation.
  1. Attachments
  1. ACEA Project Overview
  2. APIA Report on PAMs (2015)