Consultancy to Conduct Market Viability Research for Franchising Early Childhood Development

ChildFund International works throughout Asia, Africa, and the Americas to connect children with the people, resources, and institutions they need to grow up healthy, educated, skilled and safe, wherever they are. Delivered through over 250 local implementing partner organizations, our programs address the underlying conditions that prevent any child or youth from achieving their full potential. We place a special emphasis on child protection throughout our approach because violence, exploitation, abuse, and neglect can reverse developmental gains in an instant. Last year, we reached 13.6 million children and family members in 24 countries.

In Kenya, ChildFund’s programs are implemented through 12 Local Partners. The organization reaches approximately 1.3 million children, families, and community members in 26 out of the 47 counties in Kenya. Program priority areas focus on Child Protection, Household Economic Strengthening, Early Childhood Development, Education, WASH (Water, Sanitation and Hygiene), Emergency Response, Health and Nutrition.

ChildFund 2030 Strategy

In June, ChildFund approved a new 10-year global strategy – “Growing Connections”. The 2030 strategy emerges out of the vision of a world where every child realizes their rights and achieves their potential. The “Growing Connections” Strategy has set an audacious 2030 goal to reach ~100 million deprived, excluded, and vulnerable children and family members annually to help children grow up healthy, educated, skilled and safe. In response to a world that is changing rapidly, ChildFund will scale its impact to reach more children by using new methods and evolving our role in international development.

To achieve the Reach and Impact envisioned in the strategy, ChildFund will use new methods that are reflective of a changing environment (Optimizing our model) to build on our core strengths. It will use new ways of reaching children, more diverse partnerships at different levels, and further diversification of funding streams. The strategy also proposes an evolving role for the organization aimed at solidifying its relevance mainly through: (1) Its INGOs role as an intermediary of resources, skills and knowledge, (2) the role of being a connector that brings local experience to global scale, (3) achieving scale through reimagining its traditional role and (4) further enhancing our voice for children through focused advocacy.

The Growing Connection strategy will be implemented in three distinct but mutually inclusive phases. Phase 1 aims to build a Roadmap to Scale and is designed as a pre-scaling phase of structured experimentation (for an estimated 2 years). The Franchising Network for Early Childhood Development (ECD) is one of the pathways that will be further explored. Already some initial analysis for the design and development of the Franchising Network has been completed. Now there is need to undertake a detailed market viability and feasibility study that would, among other things, determine the next steps towards ensuring high social and market impact of the model.

Objective of the Consultancy

Based on the 2030 global strategy, ChildFund International is designing an alternative program delivery model utilizing market-based approaches (social franchising) to deliver high-quality and competitively priced early childhood development services to end-users. The model envisages delivery of ECD services via a network of social entrepreneurs and/or existing public/private sector providers. The value proposition of the proposed concept is a two-tier business model that targets customers at the base of the pyramid as well as more affluent customers with the intention to utilize excess revenue to subsidize customers who are unable to afford the service. ChildFund International will have a dual mandate in implementing this model namely:

• Mobilize catalytic funding to leverage further capital required to pilot model; and
• Providing franchisees with management oversight, quality assurance, and technical assistance

Purpose of Assignment

• Assess the feasibility of the proposed model by undertaking a market scan to gauge the operating environment, test the critical assumptions made in the desktop model (i.e. stress test the financial model by collecting market data), competitor analysis, legal and regulatory framework for such a venture to be operationalized.
• To carry out a market viability/feasibility study in urban and peri-urban areas in Kenya selected by ChildFund for products and services that are going to be provided by the proposed ECD social enterprise.
• Build on the experience of Kidogo and Tiny Totos as leverage to support our value proposition.
• Assess the legal and operational framework and advise on required processes for actualizing the ECD franchising model in Kenya.
• Develop a business plan for franchising ECD.

Scope of Work

Key Tasks

The scope of the consultancy shall entail but is not limited to the following key tasks:

• Propose the methodology and develop the research tools.
• Develop an appropriate sampling frame for the study based on the indications by ChildFund.
• Test the existing demand for the quantity and quality of ECD Services in potential market sectors in selected urban and peri-urban areas.
• Analyze the purchasing power of end users (caregivers of infants and young children) and suggest appropriate costing for daycare services in urban and peri-urban settings.
• Identify market players who provide ECD services in the identified existing markets and analyze their interest in joining a franchising network.
• Propose the most feasible and promising marketing strategy or strategies for the ECD franchise.
• Design a partnership framework to guide the uptake of the ECD franchising by Kidogo, Tiny Toto and any other interested ECD player in the market.
• Stress test the desk business model and update/revised it as appropriate with the results ftrom the field study.
• Develop a business plan for franchising ECD
• Facilitate validation workshops with ChildFund staff and stakeholders (caregivers, potential partners/existing providers, and social investors) on the study findings and recommendations.
• Submit a detailed study report with clear recommendations and a business plan.

Key Deliverables

Upon the completion of the key tasks, the consultant will deliver the following:

• An inception report detailing out the study methodology, sampling, data collection tools and work plan.
• A detailed study report in soft and hard copy.
• A reviewed and updated business plan and financial model for the pilot phase of the ECD Franchising Network.
• Report on the process including stakeholder consultations and workshop(s).

Duration

This assignment is expected to be carried out within a period of 4 months starting September 2021 to January 2021.

Qualifications for the Consultancy

The successful firm/organization or individual will have the following competencies:

• Expertise in undertaking market feasibility studies, preferably in the early education/childcare sector, and franchising (social and/or commercial).
• A successful track record of carrying out similar assignments (references should be provided that ChildFund can contact to confirm this track record).
• Experience in providing market-oriented innovative product development for both not-for-profit and for profit entities.
• Proven abilities in documenting and sharing survey findings in concise, user-friendly formats that can be shared externally.
• The team leader and at least one members of the consultancy team in the case of a firm or the individual must possess postgraduate university degree in a relevant area of specification.

Note: The consultant must be available during the entire assignment period.

Application Procedure:

Interested firms/ individuals should submit expression of interest (EOI) comprising these sections:

1. Capability Statement – State the firm / organization or individual’s experience delivering similar services in similar organizational and geographic settings. Detail the skills and experiences of the firm / organization’s key managers / staff related to the responsibilities of the consultancy. The consultant’s CVs should be provided as an attachment.
2. Technical Proposal – Provide an interpretation of the assignment, detail the proposed methodology and work plan/timeline for the proposed activities based on these Terms of Reference.
3. Financial proposal – Include all proposed costs, including staff, travel and accommodation, equipment and supplies, preparations, training, data collection, data entry and cleaning, data analysis, report writing, and any other costs foreseen.