PROPOSAL FOR THE MILK COLLECTION AND

DISTRIBUTION TO NEW KENYA COOPERATIVE

CREAMERIES ELDORET (NKCC)
By
MWANGAZA LIVE WOMEN GROUP
Reg. No. UGSSREG!"!#$!"%&
PRESEMTED TO THE USAIN GISHU CDF OFFICE FOR
THE APPLICATION OF UWEZO FUND
'ANUARY !"%$
CHAPTER ONE( E)ECUTIVE SUMMARY
%." B*+,g-o./0 I/1o-2*34o/
M5*/g*6* L47e Wo2e/ G-o.8 (MLWG) is a self help group started in 2013 March, a
brain child of the women members who felt the need to seek helping hand from friends in
empowering their activities to improve their economic status. t was born as a result of
challenges the members faced such as access to basic education, lack of source of
income, povert! eradication, illiterac! among women members, and the need to pull
resources together among others.
Mwanga"a #ive $omen is now registered as a self help group under Reg. No.
UG/SS/REG/20264/2013 in M*y !"%&. %he following table 1.1 summarises details of
members including their &ames, 'ddress, %elephone, (ate of birth, )ducation and
*ecent +ob functions of the Mwanga"a #ive $omen ,roup.
T*9:e %.%( L4;3 o1 Me29e-;
N*2e Te:. DOB E0.+*34o/ 'o9 F./+34o/;
1. &ell! 'tieno -n!ango 0.1/000131 1123 (iploma 4usiness56hairlad!
2. #illian Migali"a 0.013332/3 1110 (iploma 4usiness57ecretar!
3. 8ane 9adii #uvaha 0.02103322 11.3 :rimar! 4usiness5%reasurer
0. '"ibeta ;ina!wa 0.122113/0 1130 :rimar! 4usiness5Member
/. 'lbert Muhen!u 0.00.01101 112/ (iploma 4usiness5Member
3. *ispa 9wamboka 0.2/.0.033 1120 (egree %eacher54usiness
.. )"ekia 'dego 0.00.01101 113. 7econdar! 4usiness5Member
2. 'lfred 9ipkosgei 0.20013200 1120 (iploma (efense54usiness
1. 8ac<ueline #wile 0.133/3130 1122 (iploma 4usiness5Member
10. saac #upen"i 0.211..01. 1123 (iploma 4usiness5Member
11. 9e!a 'dala *obai 0.1/000131 11.2 7econdar! 4usiness5Member
12. 6aro &afula &aba!ukha 0.1001/3.0 1122 (iploma 4usiness5Member
13. 6atherine Mukasio Mairo 0.1.102011 1121 (iploma 4usiness5Member
10. 6hristopher -koth 0.20/00.0. 11./ (egree ,roup (evelopment :lanner
%he entrepreneurial e=periences owned b! members cut across various business sectors.
%here are catering, poultr! farming, cereal merchandise, second hand cloth selling,
beverage processing, farming, dair! milk farming, retail shop, vegetable and fruit selling
e=periences, which is a background profile suitable to establish and sustainabl! manage
an enterprise to improve the lives of the members. Members have been contributing
through normal savings and merr! go rounds towards business start ups and e=pansions,
member5communit! economic empowerment, facilitation of >;5'(7 awareness
campaigns and illiterac! fights. MLWG operates a 4ank account with 6ooperative 4ank,
a move that has enabled the members to access small credits, which has not been enough
to establish an enterprise that can have a greater economic impact.
STATEMENT OF PURPOSE
%he purpose of writing this business plan is that it is important to have a blue print of the
plans !ou intend to achieve. ' business plan actuall! gives the entrepreneur the direction
to follow so as to achieve the initial goals of the business ensuring profitabilit! to the
business. %his business plan is therefore intended to be used to get financial support from
?$)@- Aund arm of the 6onstituenc! (evelopment Aund (6(A). %he purpose of the
business plan is to outline the activities taken b! the business, product marketing, capital
re<uirements, capital sourcing and personnel re<uirements and sourcing for the business.
4! writing this business plan M#$, will be having a written down stepBb!Bstep strategic
plan for the smooth running of the business. ?asin ,ishu and &andi areas are milk
producing, the business will ensure that the milk produced b! the farmers in the area get a
read! market and the milk bought at the right price, to ensure profitabilit! of both the
business and the farmers in the area.
%.% E<e+.347e S.22*-y
M5*/g*6* L47e Wo2e/ G-o.8 (MLWG) is a recentl! formed 7elf >elp ,roup to
engage in business start up and e=pansion, povert! eradication b! empowering members
economicall!, campaign awareness on >;5'(7 and other pandemics, reduce illiterac!
b! sponsoring disadvantaged children to access basic education primaril! serving the
communit! development sector. n view of the foregoing Mwanga"a #ive $omen ,roup
has put together a competent team and this business plan in order to respond to the
demand. %he t!pe of work t!picall! undertaken will compriseC Mwanga"a #ive $omen
,roup, :oultr! 9eeping, 7econd >and 6loth (Mitumba) 7elling, 6ereals 7elling,
beverage processing, farming, dair! milk farming, retail shop, vegetable and fruit selling
to economicall! empower its members to better their livelihood.
%he business plan targets to process initiall! 1000 litres of milk per da! and to increase to
1200 litres per da! and 1000 litres per da! within !ear two and three respectivel!. ,ood
<ualit! milk will be sourced from individual farmers and also from farmer groups and
also own milk at ksh.2/ per litre. nitial capital re<uired will be 9shs. 1,200,000 while the
pro+ected profit b! the end of 2013 will be 2,03.,000.
%he business will benefit 20 people directl! and /00 people indirectl!. %he 20 people will
be emplo!ed directl! b! the business as staff of the organi"ation. %he other /00 people
will be emplo!ed as staff of the respective dair! farms the! will be working in. 'lso
others will get emplo!ment in other complementar! business for e=ample animal feeds
producing companies, that will see improved market due to increase in demand of animal
feeds for the dair! animals.
%.% P-o0.+3; */0 Se-74+e;
%he promoters have identified a niche in the communit! development programmes in
areas that have not been e=hausted currentl!, particularl! the dair! sector. $ith a wealth
of e=perience from within the sector, the promoters were encouraged to begin this pro+ect
b! pilot test through members where small credits were accessed and some members
were encouraged to ac<uire Milk 6ow, toda! the market demand surpasses the suppl!
hence the desire to go large scale in this establishment.
:roducts such as these are currentl! supplied b! the larger business persons leaving the
small producers who cannot afford to access large markets such as taking their milk
products to markets such as 4rookside, 966 or 4u"eki milk plants. 's such, these small
but important products represent a small portion of their turnoverD the! are seen as a
EnuisanceF in the relative scale of their overall operations and therefore, <ualit! and
timeous deliveries suffer. %he accessibilit! to these small producers milk products b!
Mwanga"a #ive $omen ,roup in an efficient manner, <ualit! controlled and delivered to
the large plants like 966 at the appropriate times would greatl! benefit the members the
small scale milk producers and the national econom!.
%he ,roup will have two primar! revenues streamsC distribution of unprocessed milk to
processing plants and the training of small scale milk producers to maintain their
operational status. %he first revenue stream is e=tremel! important to the businessFs
bottom line as the distribution services rendered b! the ,roup are in continued demand
despite deleterious changes in the general econom!. 'dditionall!, this revenue stream has
ver! high margins and will ensure the profitabilit! of the business on a monthl! basis.
%he second revenue center for the business will be the training services distribution of
milk distribution supplies, gasses, and related items that will be purchased primaril! b!
local contractors (and also individuals that do their own milk distribution). %he ,roup
anticipates gross margins of /0G on all milk distribution sales b! the business. %he third
section of the business plan will further describe the services offered b! Mwanga"a #ive
$omen ,roup.
%.! T=e F4/*/+4/g
Mwanga"a #ive $omen ,roup is seeking to raise 9shs. 1,200,000 from ?we"o Aund as
loan refundable after two !ears (20 months). %he interest rate and loan agreement are to
be further discussed during negotiation or will be taken as preset b! the law. t is intended
to seek financial assistance from the 6onstituenc! (evelopment Aund in the form of
6apital ,rants for e<uipment as scheduled herein which will assist in the operational setB
up re<uired and provide +obs to meet with the ob+ectives of this business plan.
%.& M4;;4o/ S3*3e2e/3
Mwanga"a #ive $omen ,roupF mission statement is to facilitate and enhance economic
development and growth for women and the communit! at large b! enabling access to
sources of finance to establish income generating enterprises and sustainabl! manage
them.
%.$ M*/*ge2e/3 Te*2
%he ultimate success of Mwanga"a #ive $omen ,roup will be dependent upon
managementFs abilit! to develop an innovative product line and to costBeffectivel! deliver
the line to a large and receptive market. Mwanga"a #ive $omen ,roupFs founding
promoters and the ,roup advisors and planner comprise high calibre professional whose
e=perience will create immense s!nerg! for the ,roupFs success. %hese personnel have
more than / !ears of e=perience in the dair! industr! and the general merchandise
enterprises. %hrough their e=pertise, the proposed plan will be operated towards
profitabilit! within its first !ear of operations.
)ach of the support technical team has contributed substantiall! to the group in the form
of sweat e<uit! and capital. Management believes that it is addressing a market destined
to grow substantiall! with a wellBconceived line of products. t is confident that both
market share and revenue pro+ections will, at a minimum, be achieved in the pro+ected
time frame.
%.> S*:e; Fo-e+*;3;
Madam 6aroline e=pects a strong rate of growth at the start of operations. 4elow are the
e=pected financials over the ne=t three !ears.
T*9:e %.%( P-o1o2* P-o143 */0 Lo;; (Ye*-:y)
Ye*- % (9shs) ! (9shs) & (9shs)
7ales 11,220,000 10,2/0,000 13,332,000
-perating 6osts %%?@!@?""" %&?>#&?""" %$?>@>?"""
)4%' ($@?""") #@&?""" !?"&A?"""
%a=es, nterest and (epreciation 130220 332000 /12230
&et :rofit5loss (B>?!B") &#"?@#" %?$$$?%$"
T*9:e %.!( S*:e;? O8e-*34/g Co;3; */0 P-o143 Fo-e+*;3
%.# E<8*/;4o/ P:*/
%he members e=pect that the business will aggressivel! e=pand during the first three
!ears of operation. %he! intend to implement marketing campaigns that will effectivel!
target large processing plants, baker!, institutions and individuals within the target
market.
%.A T=e M*-,e3
Mwanga"a #ive $omen ,roup will operate in a specialised niche market within the dair!
sector.
%.B M*-,e3 T-e/0
Most forecasters put the current growth of 1/G per annum in the dair! sector as set to
last for at least four to five !ears.
%.B.% S46e */0 8o3e/34*:
)=tensive primar! desk research indicates a total market for dair! products into the dair!
sector. %he niche identified is appro=imatel! 9shs / million, for the suppl! of milk.
%.B.! Co28e3434o/
%he niche market which Mwanga"a #ive $omen ,roup has chosen is for the collection
and distribution of milk and milk products as well as training of small scale dair!
farmers. %his niche is valued at 9shs / Million in the area and there are onl! two ma+or
competitors and man! other small scale distributors. %he combined turnover of the above
is appro=imatel! 9shs 2 Million the remaining work is carried out b! the ma+or milk
collectors.
%.B.& C.;3o2e-;
%his niche market, for small high volume units as described above, is increasing in si"e
as more and more of the ma+or milk collectors to subcontract their Esmall workF to a
E+obbingF shop geared to handle this t!pe of service. %his, together with work promised
directl! from milk processors, augers well for the future and points to an increasing need
for the services offered b! Mwanga"a #ive $omen ,roup.
CHAPTER TWO( THE GROUP REGISTRATION
!." G-o.8 */0 F4/*/+4/g S.22*-y
!.% Reg4;3e-e0 N*2e */0 Co-8o-*3e S3-.+3.-e
M$'&,'@' #;) $-M)& ,*-?:. %he ,roup is registered as a self help group in
)ldoret $est (istrict 9ap!emit #ocation %urbo (ivision Reg. No.
UG/SS/REG/20264/2013 in M*y !"%&.
Management believes that the initial funding of 9shs.1.2 million will be ade<uate to
carr! the ,roup through initial profitabilit!. t is anticipated that receivables and
inventor! financing from ?we"o Aund sources will be available beginning in the second
<uarter of !ear two. %he ,roup anticipates being able to sustain a gross margin in the
00G range, which e=ceeds the industr! average of 33B33G. 4eginning in its third !ear,
Mwanga"a #ive $omen ,roup will save a bottom line net income of appro=imatel! 1G
to 11G of sales. Management has taken what it believes to be a reasonable approach in
formulating its pro forma financials no additional financing is shown until !ear two and
lease financing is not proposed as an option.
!.! ReC.4-e0 F./0;
't this time, Mwanga"a #ive $omen ,roup re<uires 9shs. 1,200,000 of debt funds.
4elow is a breakdown of how these funds will be usedC
P-e;+-4834o/ Ye*- I Ye*- II Ye*- III
S*:e; %%?BB"?""" %$?!>#?""" %#?#&!?"""
O8e-*34/g Co;3
#oan nstallment 100,000 100,000 B
Milk %anks 130,000 32,000 32,000
Milk 7elector /0,000 B B
(irect Material 1,000,000 10,200,000 12,300,000
(irect #abour 200,000 200,000 330,000
%ransport 1,000,000 1,000,000 1,000,000
#icense 10,000 10,000 10,000
>ealth 6ertificate .,000 .,000 .,000
-ffice 02,000 02,000 02,000
Maintenance 20,000 22,000 20,000
Miscellaneous 30,000 .0,000 20,000
To3*: O8e-*34/g Co;3; (%%?@!@?""") (%&?>#&?""") (%$?>@>?""")
EBIT ($@?""") #@&?""" !?"&A?"""
%a=, nterest and (epreciation 130220 332000 /12230
Ne3 P-o143Lo;; (B>?!B") &#"?@#" %?$$$?%$"
!.& E<43 S3-*3egy
f the business is ver! successful, members ma! seek to sell the business to a third part!
for a significant earnings multiple. Most likel!, the ,roup will hire a <ualified business
broker to sell the business on behalf of the Mwanga"a #ive $omen ,roup. 4ased on
historical numbers, the business could fetch a sales premium of up to 0 times earnings.
!.# A;;.2834o/; U/0e-:y4/g F4/*/+4*: P-oDe+34o/;(
Members contribute 9shs..0, 000 cash to Mwanga"a #ive $omen ,roup in month
one (accomplished).
(epreciation is calculated on all fi=ed and capital assets assuming fiveB!ear lives
and reducing balance computation.
*eceivables are 30 da!s in duration (industr! standard is 30 da!s).
:a!ables are 30 da!s (industr! standard is /0B30 da!s), do not begin until month
thirteen, and e<ual onl! /0G of inventor! costs during the period (trade support is
e=pected much sooner).
nventories turn an average of seven times per !ear (on top of a fi=ed base of
9shs.00,000).
7alaries through month 12 are appro=imatel! /0G to ./G of industr! standard
(higher at lower personnel levels in the ,roup).
nterest is earned at 2G per annumD nterest is paid at 12G per annum.
6ash purchases are the sum of the previous periodFs pa!able, /0G of inventor!
purchases for the period, and current period capital ac<uisitions.
CHAPTER THREE( PRODUCTS AND SERVICES
&." P-o0.+3; */0 Se-74+e;
&otwithstanding the disappointing performance over the short term, Mwanga"a #ive
$omen ,roup management remains convinced that the commodit!Bpriced nature of the
dair! industr! makes achieving fle=ibilit! while containing costs the ke! issue in the
management of such companies. 6oupling that with growing trade protectionism, foreign
instabilit!, currenc! e=posure, and other business risks endemic to foreign production
leads to the conclusion that metal work assembl! of products will become increasingl!
more important in the future. %hus, the growth curve has not flattened, but merel! been
pushed out on the time a=is b! two to three !ears.
&.% D4;3-49.34o/ o1 M4:, Se-74+e;
%he first revenue center for the business will be milk distribution services that will be
performed within the ,roupFs retail location and on site. 't the onset of operations,
Management intends to have two staff collectors that will provide services for the group.
%he ,roup will bill these high margin services on a dail! basis and products used in
con+unction with these services. Mwanga"a #ive $omen ,roup will onl! hire milk
collectors and distributors that have obtained their licensure for handling milk and have
had at least two !ears e=perience as milk collectors and distributors.
&.! S*:e; o1 M4:, P-o0.+3;
%he business will provide <ualit! milk selected form the highest standard milk suppliers.
&.& P-o0.+3; */0 P-e24;e;(
' medium term goal of the ,roup is (/ !rs.) to bu! larger more modern premises in the
town. %he e=isting workshop re<uires some capital improvement in terms of additional
lighting, office and canteen accommodation. ,iven the ,roupFs ambition to own their
own premises in the medium term, it is intended that this additional accommodation be
provided b! means of Hport cabinI t!pe temporar! buildings.
%hreeBphase electrical power is available within the workshop and is ade<uate for the
needs of the proposed plant and e<uipment installation. ' small secure and fireBproofed
store will be re<uired for the safe storage of paint products and thinners. %he capital
e=penditure re<uirement is included in the financial pro+ections appended.
&.&.% He*:3= E S*1e3yE28:oy2e/3 */0 T*< Leg4;:*34o/
%he members are ver! aware of the provisions of the >ealth, 7afet! and $elfare at $ork
'ct, and of the ha"ards present in a handling of milk and distribution. %he members will
be preparing a 7afet! 7tatement which will be implemented and will ensure safe working
practices and environment for all staff.
%he various provisions under )mplo!ment legislation, $orking %ime (irective etc. are
known to the promoters and will be adhered to b! the ,roup. )ach emplo!ee will be
given a contract of emplo!ment upon recruitment and proper books and ta= returns will
be maintained.
CHAPTER FOUR( STRATEGIC AND MARKETING ANALYSIS
$." S3-*3eg4+ */0 M*-,e3 A/*:y;4;
's competitive pressures from domestic sources continue to rise, members are being
forced to closel! scrutini"e their product cost. ndustr! managers are now compelled to
increase productivit!, maintain or improve <ualit!, and reduce labour costs. -therwise,
the! will suffer the same conse<uences 9en!an milk suppliers did in the 1130Fs and
11.0Fs that is, slowl! wither awa! as a result of foreign competition.
$.% E+o/o24+ O.3:oo,
's domestic labour costs continue to increase and the logistics of other regional
production become ever more burdensome, the demand for milk product solutions to
these problems becomes more and more evident. Mwanga"a #ive $omen ,roup believes
it can realisticall! capture 3G of the domestic market, or 9shs./0 million b! its fifth !ear
of operations.
?nderl!ing the phenomenal growth anticipated for the metal works product industr! is an
e<ual or faster growth in competition among milk suppliers of a wide range of products
re<uiring a fle=ible process as products change. %hese distributors must find wa!s to
achieve fle=ibilit! while containing costs. Mwanga"a #ive $omen ,roupFs products
address this issue b! incorporating reprogrammabilit! which reduces the need for
additional capital e<uipment and worker retraining. %o the e=tent the distribution process
is labor intensive, as labor costs rise, Mwanga"a #ive $omen ,roupFs products can also
reduce the average hourl! cost of assembl!
$.! I/0.;3-y A/*:y;4;
$ithin the 9en!a, there are appro=imatel! 3,000 companies that speciali"e in milk
suppl! services (in a contractual capacit!). )ach !ear, these businesses collectivel!
generate more than 9shs.0 billion dollars per !ear while emplo!ing 3/,000 people.
'ggregate pa!rolls in each of the last five !ears have e=ceeded 9shs.1.2 billion. 'mong
companies that distribute milk and milk products and supplies, there are /,000 businesses
that cater to the needs of milk processors among all industries. )ach !ear, these
distributors generate 9shs.11 billion of gross receipts while providing pa!rolls of 9shs.3
billion. %his industr! emplo!s appro=imatel! 30,000 people. 4oth industries are mature,
and the! are e=pected to grow at a rate similar to that of the general econom! and
housing markets.
$.& C.;3o2e- P-o14:e
M#$, will reside near the milk suppliers for ease of accessibilit! and enhancing fresh
milk suppl!. 't the same time, the group intends to own a vehicle that will alwa!s help in
the movement around in the collection of milk in cases where the clients are far awa!
from the office location.
$.$ Co28e34347e A/*:y;4;
6urrentl!, there is a wide spectrum of roughl! 30 companies addressing the milk
distribution market. 's Mwanga"a #ive $omen ,roupFs strateg! is to address the light
manufacturing and electronics markets, this plan does not address milk distribution
focusing on other markets. n addition, Mwanga"a #ive $omen ,roup management is
convinced that those companies addressing the milk supplies do not represent a
competitive threat to the ,roup.
Mwanga"a #ive $omen ,roup management has developed e=haustive files on its
publicl! traded competition, but has had difficult! in gathering details relating to nonB
traded companies. 6onversations with end users of competing products, product
brochures, industr! publications, and trade associations have been the primar! source for
intelligence on the latter group of companies. Mwanga"a #ive $omen ,roup
management believes that none of its competitors en+o! a broad enough installed base to
establish insurmountable lo!alt!. Mwanga"a #ive $omen ,roup has determined that
purchasing decisions are currentl! based, in descending order, on the following factorsC
:roduct reliabilit!
)ase of operation
:erformance specifications
:rice
Mwanga"a #ive $omen ,roup is convinced that the noted purchase factors will
ultimatel! determine which suppliers en+o! the most success within the market
$.> T=e SWOT A/*:y;4;
$.>.% S3-e/g3=;
%he promoters have a long track record within the building industr! and have been
encouraged b! the level of support which the! have received. 7ince reputation within the
industr! is e=tremel! important this will contribute greatl! to securing new customers, in
line with this planned pro+ect. %he ,roup en+o!s a favourable location situated on the site
of one of the largest industrial sites close to the cit! centre, and the motorwa!.
$.>.! We*,/e;;e;
Ainancial resources are limited, but this 4usiness :lan details the re<uirements and
sources from which it is anticipated funding, in addition to the membersF input, will be
forthcoming. 's a result of which the ,roup will be ade<uatel! funded to meet the
re<uirement of the ob+ectives as detailed elsewhere in this submission.
$.>.& O88o-3./434e;
$hile the immediate plan to achieve targets as identified is confined to the region for the
first two !ears of operation it is intended to e=pand into other counties after our
establishment in the marketplace and this will position us to cater for the whole market
valued at 9shs. / million nationall!. n the medium term it is intended to e=pand market
opportunities into the long term into &orth rift.
$.>.$ T=-e*3;
%he single greatest threat to the ,roup is that of opportunit! loss in terms of the e=tent of
business being lost due to our current nonBtrading. %his results in orders being lost to
smaller competitors who are being afforded the business, thereb! becoming larger and
greater competition.
CHAPTER FIVE( MARKETING PLAN
>." M*-,e34/g P:*/
%he domestic market for milk supplies spreads across five ma+or and distinct industries.
%his is the market which M#$, will be addressing. n order to achieve the 7ales %arget
as per the enclosed pro+ections the following strateg! has been devisedC
O9De+347e;
%o achieve a profitabilit! of / G return on sales b! !ear 1.
%o achieve a 2 G share of the identified market b! the end of !ear 2.
%o achieve a profitabilit! of 1/ G return on sales b! !ear 2.
%o secure 7- 1000 accreditation in the short term.
Medium %erm B to bu! its own premises in the area.
>.% M*-,e34/g O9De+347e;
)stablish relationships with milk plants throughout the targeted market.
mplement a local campaign with the ,roupFs targeted market via the use of
fl!ers, local newspaper advertisements, and word of mouth advertising.
>.! M*-,e34/g S3-*3eg4e;
M#$, intends on using a number of marketing strategies that will allow it to easil!
access the target market. %hese strategies include traditional print advertisements and ads
placed on search engines on the nternet. 4elow is a description of how the business
intends to market its services5products to its target market. Mwanga"a #ive $omen
,roup will also use an internet based strateg!. %his is ver! important as man! people
seeking local services of milk distribution, now the nternet to conduct their preliminar!
searches.
%he ,roup will also develop its own online website, which will showcase the inventor!,
services offered, information about the owner, and relevant contact information. 't the
onset of operations, develop several ongoing purchase order that will not onl! outsource
milk distribution services to the business, but will also purchase milk supplies for use in
con+unction with their own pro+ects.
>.& M*-,e34/g P:*/
>.%&.% P-4+4/g
6urrentl! products are being supplied into the industr! at 9shs.2/ per litre, b! the
e=isting large suppliers. %he Mwanga"a #ive $omen ,roup setBup for <ualit! batch
production, can collect and distribute for 9shs. 33 selling price and with the use of
modern scheduling techni<ues, ensuring timel! deliveries, can make its desired
contribution and profit targets.
>.&.! P-o0.+3
%he specialist steel products are manufactured from steel sections readil! available from
several sources locall!. %he si"es, specifications and configuration of these components
var! widel! from customer to customer and depends ver! much on the t!pe of <ualit! of
milk supplied. >owever, the methods of distribution are similar to all and the workshop
and skilled workforce are set up to cater for this purpose.
>.&.& P:*+e
7elling is carried out on a direct basis with bu!ers within the organisations of our
customers. %his function will be carried out b! our 7ales and Marketing (irector who
will spend a large proportion of his time engaged in visits to customers promoting the
,roup.
Mwanga"a #ive $omen ,roup intends to maintain an e=tensive marketing campaign that
will ensure ma=imum visibilit! for the business in its targeted market. 4elow is an
overview of the marketing strategies and ob+ectives of the business. %he products, as
described above, will be manufactured in our own workshop, to the individual design of
our customers.
(eliveries post production will be made b! contracted transport in two wa!sC
1) %o collect from the farmers
2) (irectl! to processing plants.
>.&.$ P-o2o34o/
'n initial #aunch of the ,roup is planned to take place in which all the ma+or suppliers
will be invited. %his launch will directl! target our customers ver! specificall! and will
immediatel! put Mwanga"a #ive $omen ,roup in the market. %hereafter it is intended to
carr! on the sales function as described above.
Mwanga"a #ive $omen ,roupFs marketing strateg! encompasses an earl! stage focus on
1/ to 30 ma+or distributors. )ach target customer is known for its innovative
management, relativel! high labour costs, and eroding market share over recent !ears to
foreign competitors.
:roduct design will follow a stated ob+ective of addressing <ualit! (as manifested in
accurac!, simplicit!, speed, and reliabilit!), innovation, service (second to none b!
Mwanga"a #ive $omen ,roup field service engineers, not outside contractors), and
price. Mwanga"a #ive $omen ,roup management firml! believes that providing <ualit!
products is itFs first and foremost task in achieving its targeted market share.
>.$ S*:e; P:*/
M$'&,'@' #;) $-M)& ,*-?: will use onl! inBhouse sales personnel with
impeccable credentials and e=tensive product training. )mphasis will be continuousl!
focused on the needs of the customer. 'll sales in the first !ear will be made b! home
office based personnel.
CHAPTER SI)( ORGANIZATIONAL STRUCTURE
#." O-g*/46*34o/*: P:*/ */0 Pe-;o//e: S.22*-y
Mwanga"a #ive $omen ,roup is a self help group with all the shares owned in e<ual
measure b! the members. %he combined e=pertise has allowed for a EnaturalF division of
responsibilities as detailed hereunderC
C=*4-8e-;o/
10 Jears 4usiness Management e=perience
$ork assignment
>ealth and 7afet!, %raining, Kualit! 6ontrol
*esource allocation
:eople management
G-o.8 Se+-e3*-y
A024/4;3-*34o/ */0 Co/3-o:
'ssistant Manager
6ertified (iploma in 'ccounting and Ainance
(ip. n :ersonnel Management
M*/*g4/g D4-e+3o-
S*:e;? M*-,e34/g
20!ears e=perience in building industr! (:ro+ect Management)
(iploma in )nvironmental 7ervices
7elf emplo!ed for 1. !ears
'pprentices will be recruited and will be re<uired to participate in onBtheB+ob training and
to take part in the national apprentice training schemes and e=aminations as run b!
6:'9. t is intended to offer permanent positions to suitable apprentices on completion
of their training.
#.% Co-8o-*3e O-g*/46*34o/
CHAPTER SEVEN( FINANCIAL PLAN
A." F4/*/+4*: P:*/
Aull sets of financial pro+ections for the first two5three !ears of operation are contained in
the 'ppendices.
A.%.% S*:e;
%he sales as pro+ected for the first !ear, based on direct primar! research of our potential
customers, are set atC
Jear 1C /G of target market.
Jear 2C 10G of target market
%he pro+ected sales are modest given the e=tent of the potential market of L/.3 million
and our research indicates that these figures are achievable.
A.%.! E<8e/;e;
Aull schedule of e=penses is contained in the appended pro+ections. %he e=penses as
calculated are realistic and based on current prices.
A.% U/0e-:y4/g A;;.2834o/;
M M$'&,'@' #;) $-M)& ,*-?: will have an annual revenue growth
rate of 13G per !ear.
M %he members will seek to ac<uire 9shs.1,200,000 of debt funds to develop the
business.
M %he loan will have a 2 !ear term with a 12G interest rate.
A.! Se/;434743y A/*:y;4;
%he ,roupFs revenues are moderatel! sensitive to the general econom!. (uring times of
economic prosperit!, new houses (and renovations) will be developed re<uiring a larger
amount of milk distribution services and supplies. (uring deleterious economic climates,
the businessFs top line income ma! be reduced as these services will not have the same
level of demand. >owever, the ,roup will generate a continuous stream of revenue from
contractors that re<uire milk distribution services5products. 's such, the business will be
able to remain profitable in an! economic climate.