Mercy Wangui 35584
Mercy Wangui 35584
Mercy Wangui 35584
DECLARATION
I declare that this work is my original work I complied and has not been represented by anybody
else or any other institution in Kenya, which is recognized by Kenya National Examination
Council.
Signature……………………………. Date
………………………………
i
NAME: MERCY WANGUI
ii
ACKNOWLEDGMENT
First, I acknowledge and give thanks to the almighty God for giving me the gift of life and
helping me until now. I also acknowledge my family for being supportive to me in everything I
need. Lastly, I sincere thank my supervisor MADAM SALOME of Thika Technical for his
professional guidance and tireless effort to assist me during my course of study.
iii
Table of Contents
DECLARATION..............................................................................................................................................ii
ACKNOWLEDGMENT...................................................................................................................................iii
EXECUTIVE SUMMARY...............................................................................................................................vii
1.0 BUSINESS DESCRIPTION...................................................................................................................vii
2.0 MARKETING PLAN............................................................................................................................vii
3.0 ORGANIZATIONAL AND MARKETING PLAN......................................................................................vii
4.0 PRODUCTION PLAN..........................................................................................................................vii
5.0 FINANCIAL PLAN..............................................................................................................................viii
CHAPTER ONE..............................................................................................................................................1
1.0 BUSINESS DESCRIPTION.....................................................................................................................1
1.1 BACKGROUND OF THE OWNER.........................................................................................................1
1.2 BUSINESS NAME................................................................................................................................1
1.3 BUSINESS LOCATION AND ADDRESS..................................................................................................1
1.4 FORM OF OWNERSHIP.......................................................................................................................3
1.5 TYPE OF BUSINESS.............................................................................................................................3
1.6 PRODUCT AND SERVICE.....................................................................................................................3
1.7 JUSTIFICATION OF OPPORTUNITY......................................................................................................4
1.8 INDUSTRY..........................................................................................................................................4
1.9 BUSINESS GOALS AND OBJECTIVES....................................................................................................4
1.9.1 Short term goals.........................................................................................................................4
1.9.2 Long term goals..........................................................................................................................4
1.9.3 Objectives...................................................................................................................................4
1.10 ENTRY AND GROWTH STRATEGY.....................................................................................................4
1.10.1 ENTRY PLAN..............................................................................................................................4
1.10.2 GROWTH PLAN.........................................................................................................................5
CHAPTER TWO.............................................................................................................................................6
2.0 MARKETING PLAN..............................................................................................................................6
2.1 CUSTOMERS.......................................................................................................................................6
2.2 MARKET SIZE......................................................................................................................................6
2.3 COMPETITION....................................................................................................................................7
iv
2.3.1 STRENGTH AND WEAKNESS........................................................................................................7
2.4 METHOD OF PROMOTION AND ADVERTISEMENT.............................................................................8
2.5 PRICING STRATEGY............................................................................................................................8
2.6 SALES TACTICS...................................................................................................................................8
CHAPTER THREE..........................................................................................................................................9
3.0 ORGANISATION AND MANAGEMENT PLAN.......................................................................................9
3.1 MANAGEMENT..................................................................................................................................9
3.2 DUTIES AND RESPONSIBILITIES..........................................................................................................9
3.3 OTHER PERSONNEL..........................................................................................................................11
3.4 RECRUITMENT.................................................................................................................................12
3.5 TRAINING.........................................................................................................................................12
3.6 PROMOTIONS..................................................................................................................................12
3.7 REMUNERATION AND INCENTIVES..................................................................................................12
3.5 LICENSES PERMIT AND BY LAWS......................................................................................................13
3.5.1 LICENSES...................................................................................................................................13
3.5.2 PERMIT.....................................................................................................................................13
3.5.3 BY LAWS....................................................................................................................................13
3.6 SUPPORT SERVICES..........................................................................................................................13
3.6.1 BANKING SERVICES...................................................................................................................13
3.6.2 INSURANCE SERVICES...............................................................................................................13
3.6.3 CONSULTATION SERVICES.........................................................................................................14
3.6.4 LEGAL SERVICES........................................................................................................................14
CHAPTER FOUR..........................................................................................................................................15
4.0 PRODUCTION AND OPERATIONAL PLAN..........................................................................................15
4.1 PRODUCTION FACILITIES AND CAPACITY.........................................................................................15
4.2 PRODUCTION STRATEGY..................................................................................................................17
4.3 PRODUCTION PROCESS....................................................................................................................17
4.4 PROBLEMS AFFECTING PRODUCTION..............................................................................................17
4.4.1 HEALTH REGULATION...............................................................................................................17
4.4.2 SAFETY......................................................................................................................................17
4.5 OPERATIONAL COST/ INITIAL CAPITAL.............................................................................................18
CHAPTER FIVE............................................................................................................................................19
5.0 FINANCIAL PLAN..............................................................................................................................19
v
5.1 PRE- OPERATION COST..................................................................................................................19
5.2 PRO-FORMA BALANCE SHEET..........................................................................................................20
5.3 WORKING CAPITAL..........................................................................................................................21
5.4 CASH FLOW PROJECTION.................................................................................................................22
5.5 PRO-FORMA INCOME STATEMENT..................................................................................................23
5.6 BREAK EVEN ANALYIS......................................................................................................................24
5.7 DESIRED FINANCING........................................................................................................................25
5.8 PROPOSED CAPITALIZATION............................................................................................................25
APPENDIX..................................................................................................................................................26
vi
EXECUTIVE SUMMARY
1.0 BUSINESS DESCRIPTION
The name of the business will be NUTRIHEALTH YOGHURT DEALERS.
The business will be owned and managed by Sharon Awuori who is currently a student at
Thika Technical Institute pursing certificate in Business management.
The form of the business will be sole proprietorship, which I will independently own the
business.
The business will offer different variety of goods (yoghurt based on flavors) and offers sale
services especially wholesalers and retail who purchase in large quantities.
The business will put in place competitive advantages to help do others competitors like
offering deliveries to customers.
Promotion will be based on performance difference and merit acquired on day by day
activities and be promoted after a training period and when one gains sufficient experience in
a particular field.
vii
Equipment like refrigerator, packaging containers, raw materials like milk and flavoring
product.
Upon settlement, expansion will be planned by acquiring another space and setting up
production equipment.
The production process will be value addition of milk into yoghurt. Milk is our primary raw
material. Fresh milk is put in fermentation tank adopts internal recycling mode and
dissymmetric regulation, stirrer, fast cooling down temperature in the meantime minimize
yoghurt viscosity for quality control.
viii
CHAPTER ONE
1.0 BUSINESS DESCRIPTION
1
Nairobi - Mombasa highway
NUTRIHEALTH YOGHURT
DEALERS
2
1.4 FORM OF OWNERSHIP
Mercy will independently own the business. Nutrihealth yoghurt will be a sole
proprietorship form of a business.
The yoghurt will be packed in reusable plastic containers of different sizes, to give customers a
variety of sizes to choose from based on their purchasing power.
Yoghurt in containers varying from 250ml 500ml 1, 3, 4 and 5 liters. Nutrihealth yoghurt will
help nourish the brain and relax the muscles and quench your thirst.
3
1.7 JUSTIFICATION OF OPPORTUNITY
I choose the opportunity in order to fill the business gap in that area and to supply yoghurt in
different places and ensures that the objectives of the business are met.
1.8 INDUSTRY
Nutrihealth yoghurt dealers will belong to the food and processing industry. Nutrihealth yoghurt
can also be a daily processing industry. The food industry is growing with modern invention like
refrigerator, value additional and infrastructure in general.
1.9.3 Objectives
Nutrihealth yoghurt will put more effort to achieve set short-term goals. The goals like
profit maximization in volume of sales and reduction of production cost.
4
Nutrihealth yoghurt will exploit weaknesses of other competitors to help ascertain market of our
product. Pricing will be done in reference to quantity of yoghurt one wishes to buy. The business
will offer free sample to new customers to help attract and retain customers.
5
CHAPTER TWO
2.0 MARKETING PLAN
2.1 CUSTOMERS
The targeted customers will be resident of Taita Taveta County. Customers will vary with
their different grouping, retailers, household, individuals, wholesalers, and institutions like
colleges and hospitals. Majority of the customers will be small-scale retailers and
institutional like colleges and hospitals. Nutrihealth yoghurt will advertise its product by
mass media and use of sales representatives. The business will offer different variety of
goods (yoghurt based on flavors) and after sales services especially wholesalers and retails
who purchase in large quantities. Nutrihealth yoghurt will employ various method of sales
like over the counter for individual customers, consultative selling for long-term beneficial
sales relationship, non-manipulative selling and online selling.
A B C TOTAL
SALES 20,000 40,000 40,0000 100,000
MARKET 20% 40% 40% 100%
SHARE
A B C D TOTAL
SALES 20,000 40,000 40,000 30,000 120,000
MARKET 17% 33% 33% 17% 100
SHARE
6
2.3 COMPETITION
The business will always need to look at what it is doing, consider factors that will led to its
success. Factors like after sales service, promotion and offers given to customers. The
business will listen to its customers and hence determine gaps to be filled in terms of supply.
Look at the business other potential competitor in term of assets, sales volume and market
share different. The business will analyze their weakness and plan to capitalize on them.
High cost.
Less promotion.
7
2.4 METHOD OF PROMOTION AND ADVERTISEMENT
Nutrihealth yoghurt dealers will use various method to promote its product. Promotion will
be done via television where an advert of our product will be aired. The business will also
use billboards with a label pictures of our product. The product will air for 2 minutes every
hour in a day. When the business is up and running, the promotion campaign will give free
sample when introducing the product in a new area. Advertisement and promotion will be
5% of production cost. Promotion will be measured in increase in volume of sale.
8
CHAPTER THREE
3.0 ORGANISATION AND MANAGEMENT PLAN
3.1 MANAGEMENT
The business will comprise of the following as its management team, a director, production
manager, marketing manager, finance officer, sales personnel and other personnel.
DIRECTOR
QUALIFICATIONS
PRODUCTION MANAGER
QUALIFICATION
9
MARKETING MANAGER
QUALIFICATION
FINANCE OFFICER
QUALIFICATION
SALES PERSONNEL
QUALIFICATION
10
DUTIES AND RESPONSIBILITIES
Managing director
Marketing Manager
Other Personnel
Sales Person
11
3.4 RECRUITMENT
The management team for Nutrihealth yoghurt dealers will comprise of a director, production
manager, marketing manager and sales person. Their recruitment into the business will be done
via interview, which give a wider option to choose. The director will not be interviewed since
she is the owner of the business. The management team through recruitment agencies and word
of mouth will recruit other personnel.
3.5 TRAINING
The business management team comprise of trained professional thus no much training needed.
However, subordinate staff will require training. Introduction training will be done on new
employees while on, job training will be undertaken when regular activities takes place.
3.6 PROMOTIONS
With time growth and expansion, promotion of employees will have to be done. Promotion will
be based on performance difference and merits acquired on day to today activities. Employees
can also be promoted after training period and when one gains sufficient experience in particular
field.
12
3.5 LICENSES PERMIT AND BY LAWS
3.5.1 LICENSES
The business will acquire trading license in order to start trading. The license will be secured
from the city council office of sh. 1500. The purpose of the trading license is certify that goods
produced meet all the required specification and causes no harm up on human consumption.
3.5.2 PERMIT
The business will require recognized permit document from the Kenya Dairy Board. It will also
require Health Act Permit and mark of quality of KEBS.
3.5.3 BY LAWS
The business will need to comply with by law set by the County government officials. These by
law includes waste of garbage treatment control. There is a need to comply with by law to avoid
the business from getting into conflict with the lawgivers.
13
3.6.3 CONSULTATION SERVICES
The business will consult business evaluator agencies. These is to help on future expansion and
expected growth. The director will do consultation.
14
CHAPTER FOUR
4.0 PRODUCTION AND OPERATIONAL PLAN
4.1 PRODUCTION FACILITIES AND CAPACITY
The business will rent open large room for production services. Equipment like refrigerator,
packaging container, raw materials like milk and flavoring products like vanilla, strawberry and
chocolate. Level of production will be substituted to amount of raw material when producing.
The refrigerator will cost around sh.50000, packaging container for about sh. 10000, and raw
materials (milk) sh. 10000 and flavoring product sh. 5000. Upon settlement, expansion will be
planned by acquiring another space and setting up production equipment.
15
OFFICE 1
OFFICE 2
OFFICE 3
PRODUCTION AREA
STORE
16
4.2 PRODUCTION STRATEGY
The production process will be valued additional milk into yoghurt. Milk is our primary raw
material. Fresh milk is put in fermentation tank, the tank adopts internal recycling mode and
dissymmetric regulation, stirrer, fast cooling down temperature, in the meantime minimize
yoghurt viscosity for quality control. For direct production workers skills like viscosity and
temperature regulation are of much necessity. Milk, which is largely required will be purchased
from daily farmers at retail price sh.25000.Stock control will be done by ensuring no production
until desired sales are achieved.
4.4.2 SAFETY
During production, it is of great importance to ensure the workers safety. Workers and visitors
on the production unit will have to wear protective cloths like mask, boots and gloves for their
own personal safety.
17
4.5 OPERATIONAL COST/ INITIAL CAPITAL
This capital will be used at the start of the business. The following are the items required to start
the business.
18
CHAPTER FIVE
5.0 FINANCIAL PLAN
The business will need financial plan in order to, maintain and control expenses, realize
the steady growth on income, maintain owner equity and ensure continuous production.
The financial plan will help provide direction of the business goals and dreams. It will
help in inflation management and help control business expenditure.
ITEM COST
Utility bill 100,000
Rent deposit 30,000
Electricity 15,000
Pickup van 150,000
Refrigerator 50,000
Office tool 20,000
Packaging equipment 10,000
Raw materials 10,000
Trading license and permit 15,000
Advertisement and information for opening 2,500
TOTAL 352,5OO
19
5.2 PRO-FORMA BALANCE SHEET
This is a document showing the financial position of the business after the trading period,
maybe a month or a year.
20
5.3 WORKING CAPITAL
WA=CA-CL
=145,000-45,000= 10,000
WA = Sh. 100,000
21
5.4 CASH FLOW PROJECTION
RECEIPTS JAN FEB MARC APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC
H
SALES 30,000 125,0000 249,000 427,000 711,500 906,500 1,246,00 1,382,500 1,591,000 1,857,000 2,185,000 2,479500
DEBTORS 20,000 45,000 30,000 50,000 60,000 80,000 70,000 40,000 60,000 90,000 70,000 80,000
DISCOUNT 5,000 40,000 10,000 120,000 30,000 49,000 60,000 38,500 750,000 70,000 80,000 58,000
RECEIVED
55,000 210,000 289,000 597,000 801,500 1,035,000 1,267,500 1,461,000 1,701,000 2,017,000 2,335,000 2,617,500
PAYMENT 30,000 50,000 70,000 60,000 60,000 60,000 80,000 80,000 80,000 90,000 100,000 100,000
SALARIES
AND
WAGES
CREDITORS 30,000 20,000 48,000 50,000 40,000 30,000 25,000 20,000 30,000 55,000 40,000 35,000
DISCOUNT 10,000 5,000 20,000 4,500 5,000 121,000 10,000 30,000 46,000 230,000 4,500 10,000
ALLOWED
70,000 75,000 138,000 114,500 105,000 211,000 115,000 130,000 156,000 168,000 144,500 145,500
BALANCED 125,000 285,000 427,000 711,000 906,500 1,246,000 1,382,500 1,591,000 1,857,000 2,185,000 2,479,500 2,763,000
22
5.5 PRO-FORMA INCOME STATEMENT
23
5.6 BREAK EVEN ANALYIS
Cost/Distribution Margin
= 936,806.00
= ksh 1,602,607.00
24
5.7 DESIRED FINANCING
DESCRIPTION AMOUNT
Pre-Operational cost 352,000
TOTAL 452,000
DESCRIPTION AMOUNT
Personal saving 150,000
TOTAL 500,000
25
APPENDIX
NUTRIHEALTH YOGHURT
DEALERS
26