Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Introduction

Eno-Obong Breweries is a medium-scale brewery that is located in the growing industrial centre of Eket,Akwa IbomNigeria. This is a relatively new business in its start-up phase having been incorporated recently. We are on the brink of penetrating a lucrative market in a rapidly-growing economy. The current trend towards an increase in the number of entrepreneurs and competition amongst existing companies presents an opportunity for Eno-obong Breweries to penetrate the market. Our products will be positioned very carefully. They will be of extremely high quality to ensure customer satisfaction, supported by impeccable service to our customers. Our primary goal will be to establish and strengthen our license to trade, which will be bestowed by the communities in which we function. As Eno-obong Breweries prospers and grows, these communities will continue to benefit from both the value created by Eno-obong Breweries and its behavior as a corporate citizen.

Initial plans are to produce three main lines of products primarily focusing on X, Y, and Z beer (which comes in different flavors: B, P, C and S). These products will be sold in different sized containers ranging from the 250 ml ginger beer to the 500 ml traditional beer. These products shall be extensively distributed to remote, yet extremely viable areas where the market is appreciative of readily available, good quality brew.

To prosper there is need for Eno-obong to be flexible and responsive, to delight customers by providing them with what they want, when they want it and before the competition. From product concept to goods dispatch we intend to ensure that every policy and procedure, system and process must have the objective of improving the flexibility and response of the whole company. There is a need for interaction between all functional areas, particularly between marketing and manufacturing, if the organization is to realize its full potential, with manufacturing being employed as a strategic weapon.

Our marketing strategy will be based mainly on ensuring customers know what need the product(s) is able to fulfill, and making the right product and information available to the right target customer. Hence we intend to implement a market penetration strategy that will ensure that we are well known and respected in our respective industry. We will ensure that our products’ prices take into consideration people’s budgets, and that these people appreciate the product(s) and know that it exists, including where to find it. However these prices will also take into consideration the cost of production and distribution so as to ensure that we remain viable and operational. The marketing effort will convey the sense of quality and satisfaction in every picture, every promotion, and every publication. Our promotional strategy will involve integrating advertising, events, personal selling, public relations and direct marketing. In the long term Internet marketing shall also be undertaken, details of which are provided in the marketing section of the following plan.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Our target markets will primarily constitute the corporate and working class who appreciate good quality traditional beer. The working class will range from the miners, who constitute a large portion of the market, to administrative personnel appreciative of good quality traditional beer. The corporate or managerial segment will constitute those managers, who though aware of their image and reputation, want to put aside their ties and jackets after hours and/or on weekends to drink good traditional beer, easily accessible in the urban areas. The common bond will be the appreciation of a good-quality traditional brew able to fulfill their thirst. Eno-obong is primarily targeting a market share of 6% to attain sales of approximately N1.5 million in our initial year. Eno-obong Breweries will pride itself on its production ability, competitive prices, its high standards of quality and its adaptability to changes in the market and in the method

Well-done brochures, company profiles and business cards often has a triggering effect on clients contemplating on ordering our products. Hence this will undoubtedly generate increased sales of our products.

Our objectives will revolve around the following guiding principles:

1. Provision of a great work environment, treating each other with respect and dignity.
2. Apply high-quality standards of excellence to all business processes.
3. Develop enthusiastically-satisfied customers all of the time.
4. Contribute positively to our communities and our environment.
5. To continuously formalize and measure cross-functional working communication so as to ensure that the various departments work harmoniously towards attainment of company objectives.
6. To instill a culture of continuous improvement in beating standards of customer satisfaction and efficiency.
7. Fully commit to supporting growth and development in the economy.

Ultimately we intend to create a stable business platform that will create prosperity for all those involved in the business venture at all levels, and to uplift unemployed Nigerians who are prepared to participate in this venture.

Keys to Success

The keys to Eno-obong Breweries success will undoubtedly be effective market segmentation through identification of several niche markets and implementation strategies. Along these lines the company intends to implement advertising, personal selling and direct marketing strategies aimed at the target markets. Our advertising marketing strategies will rotate around.

Hence our key success factors will include the following:

Excellence in Fulfilling the Promise: We intend to produce and provide products of uncompromised quality to our customers. This is so as to meet the needs and standards of our customers.

Effective and Efficient Distribution Network: The importance of such cannot be overemphasized in our line of business. We intend to establish an excellent distribution network that will enable us to rapidly respond to customers’ orders, and be available in remote areas our competitor has not yet exploited.

Assembly Technology: To ensure quality brewed beverages it is essential to utilize the latest and most efficient assembly technology. Keeping abreast with technological developments will ensure we gain, and maintain, a competitive advantage utilizing the latest production techniques.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Loyalty and Dedication: The loyalty and dedication of our employees shall be essential to the prosperity of the organization. We recognize that corporate commitment to success should lead to the survival and prosperity of the products, and ultimately the organization as a whole.

Marketing Know-how: In an increasingly competitive market there is need to aggressively market our business so as to be continuously at the top of our prospective and current client’s minds.

Adherence to Stringent Values and Principles: Eno-obong needs to acknowledge the fact that the financial and strategic management of the business will ultimately determine its prosperity and success. Hence we intend to adhere to stringent values and principles that will enable such to be achieved.

Mission

Eno-obong Breweries intends to create a pleasant, enjoyable and sociable environment through the provision of refreshing high-quality brews. Hence we intend to assist in the creation of a welcoming and relaxed ambiance reflective of people enjoying themselves. We are sensitive to the taste, look and feel of good beer, as well as affordable prices depending on the market. We intend to provide the best possible value to our customers who care about quality products at affordable prices, and we want every dollar spent on our products to be well spent. Hence our value proposition is to sell the benefit of refreshness and enjoyment to our various consumers at reasonable prices.

Internally we intend to create and nurture a healthy, creative, respectful and enjoyable office and plant environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce. In addition follow-up will be mandatory so as to ensure customer satisfaction and make any improvements as recommended by the customers in future. We seek a fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly compensate owners and investors for the money and risk.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Company Summary

Eno-obong Breweries is a relatively new company providing high quality alcoholic and non-alcoholic beverages in the local market. Eno-obong Breweries intends to focus on the brewing process and the brewery itself. The brewery will house four stainless steel vessels whose shiny finish will be highlighted by the flood lights on the ceiling. Interested stakeholders will be able to observe the brewing process during the day and will be offered guided educational tours of the brewing facility.

It will focus initially on providing and satisfying two kinds of markets:

1. Corporate Class:This will constitute all those people in middle and top managerial positions who appreciate good quality traditional beer.
2. Working Class:This will range from the miners who constitute a large portion of the market to administrative personnel appreciative of good quality traditional beer.

As it grows it will take on people and expand into related markets. It will also look for additional leverage by establishing relationships and representations with appropriate strategic allies.

Start-up Summary

Total start-up capital and expenses (including legal costs, logo design, stationery and related expenses) came to approximately N41,700. Start-up assets required and utilized included brewing plant and machinery, pick-ups, office furniture, personal computers and other office equipment. This figure comes to N840,000.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

 

START-UP FUNDING
Start-up Expenses to Fund	N41,700
Start-up Assets to Fund	N840,000
TOTAL FUNDING REQUIRED	N881,700
Assets
Non-cash Assets from Start-up	N760,000
Cash Requirements from Start-up	N80,000
Additional Cash Raised	N0
Cash Balance on Starting Date	N80,000
TOTAL ASSETS	N840,000
Liabilities and Capital
Liabilities
Current Borrowing	N20,000
Long-term Liabilities	N0
Accounts Payable (Outstanding Bills)	N0
Other Current Liabilities (interest-free)	N0
TOTAL LIABILITIES	N20,000
Capital
Planned Investment
Investor 1	N650,000
Investor 2	N76,700
Investor 3	N35,000
Investor 4	N100,000
Additional Investment Requirement	N0
TOTAL PLANNED INVESTMENT	N861,700
Loss at Start-up (Start-up Expenses)	(N41,700)
TOTAL CAPITAL	N820,000
TOTAL CAPITAL AND LIABILITIES	N840,000
Total Funding	N881,700

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

START-UP
Requirements
Start-up Expenses
Legal	N1,000
Stationery etc.	N2,000
Brochures	N2,000
Insurance	N700
Rent	N6,000
Research and Development	N20,000
Expensed Equipment	N10,000
TOTAL START-UP EXPENSES	N41,700
Start-up Assets
Cash Required	N80,000
Start-up Inventory	N10,000
Other Current Assets	N0
Long-term Assets	N750,000
TOTAL ASSETS	N840,000
Total Requirements	N881,700

Company Ownership

Eno-obong Breweries is a Private Limited company incorporated at the Registrar of Companies through the foresight and vision of Mr. X and Mr. Y. Its fiscal year is the calendar year. Though it has only been in existence for seven months it realizes the potential market and opportunity for growth given implementation of the appropriate strategies, aided by the necessary finances.

Company Locations and Facilities

At present the company plants and offices are located in the growing industrial center of SelebiPhikwe, Kasane and Palaype with intentions of establishing an additional plant in Maun or Francistown, largely depending on the dictates of the market and the obtaining of a lease. Our current facilities provide offices, plants and machinery, office equipment and so on.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Company Values

Eno-obong Breweries is committed towards an open governance system whereby its activities are managed and undertaken ethically, transparently, and in the interests of all concerned stakeholders.

This shall be undertaken through implementation of the following company values:

1. We intend to conduct our business ethically and transparently, respecting all applicable laws.
2. We intend to be a responsible corporate citizen fulfilling our obligations as an integral member of society. Hence our business decisions shall give appropriate weight and consideration to social and environmental impacts.
3. We intend to provide products of uncompromising quality to meet the needs of our customers.
4. We intend to seek mutually beneficial and enduring relationships in all the commitments that we make, ensuring that they are straightforward and honest. Hence our communication shall be open and accurate, internally and externally.
5. We intend to optimize the creation of wealth to provide fair reward and recognition for the contributions of our stakeholders.
6. Ultimately we intend to uphold all the above company values, promoting our employees and respective third parties engaged by us to do likewise.

Through promotion and implementation of the above stated company values we believe that we will be able to attain our corporate and stakeholders’ goals and objectives for the benefit of all concerned, in particular the communitiesProducts

Eno-obong Breweries produces and markets several products. There are three main products currently in its production line. These are:

1. X Beer
2. Y Beer
3. Z Beer (Note: Z comes in different flavors):
   1. B
   2. P
   3. C
   4. S

All products are periodically taken for testing to the National Food Laboratory for quality checks so as to ensure that they conform to required quality standards.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

 Product Description

Eno-obong Breweries produces products of high quality and impeccable taste. The company currently produces three main lines of products, namely X beer, Y beer and Z beer. All three have unique properties that will enable them to excel on the market. We will also be watching for technological developments in South Africa and overseas, allowing us to be first on the market and produce high-quality products through cost effective means. In addition the company will select suitable products for production under license.

Our current product listing is as follows:

1. X Beer, Although similar in appearance to the only other product available in the market, our beer has the superior flavour and texture, smooth, with no rough solids. This stems from (discussion removed for confidentiality).
2. Y Beer. This refreshing drink has the unique feature that it can be enjoyed both as an alcoholic or non-alcoholic drink, depending on the fermentation period after production. If consumed fresh, that is, within the first week of production, it contains only traces of alcohol, typically even less than that found in medication (discussion removed for confidentiality).
3. Z Beer, This traditional food product is widely consumed as a substitute for regular meals and energy booster, whenever available. Up to now it has only been available in two sources, namely home prepared or more commonly bought from a shop having a fridge to keep the product refrigerated.

Competitive Comparison

Identifying competition in terms of companies that fill the same needs that we do, our competitors are few in our main product lines, though dominant in the market. Hence there will be a need to strongly differentiate ourselves from these other businesses. However on a broader scale our competition comes in several forms:

1. The most significant competition is that of XX Breweries, which the market leader is arguably. Having been on the market for a relatively long period of time added to the fact that they are backed by Y Breweries’ financial, technological and human resources acumen.
2. Other manufacturers of traditional brews including homes and local bars will also constitute our competitors. They often have access to the local and remote areas and knowledge of these areas. However the product is not constantly of high standard, which we shall fully exploit.
3. On a larger scale manufacturers of other beverages including soft drinks and coffees also constitute competition, but of a generic nature, as people have to choose between them as refreshments. These products being marketed in supermarkets are often advertised on an extensive basis.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Macro-environment

Over the last few months abnormal weather has affected many parts of Southern Africa, including Nigeria, during the key summer season. It has been extraordinarily severe with heavy rainfall, flooding and there definitely promises to be low temperatures, particularly in the winter season. This is likely to have an adverse effect on our initial financial performance, though marginal as consumption levels may decrease slightly.

Technology

Eno-obong Breweries will strive to maintain the latest and most efficient assembly technology so as to ensure quality-brewed beverages, and maintain low production costs ultimately benefiting the consumer. Keeping abreast with technological developments will ensure we gain and maintain a competitive advantage utilizing the latest production techniques.

Future Products

In putting the company together we have attempted to offer enough products to allow us to always be in demand by our customers and clients. The most important factor in developing future products is market need. Our understanding of the needs of our target market segments shall be one of our competitive advantages. It is critical to our effort to develop the right new products. We also intend to have what we call a “core product engine” that will be the foundation of future products

Fulfillment

1. The key fulfillment and delivery will be provided by the principals and values of the business. The real core value will be the provision of a thirst quenching refreshing brew, provided by a combination of quality ingredients, good production techniques, hard work, and education (in that order). Hence we intend to ensure that the products we produce are always of high quality and standards, and available to the relevant target market.
2. We will turn to reliable farmers, suppliers and distributors who will assist in ensuring that the products are delivered timely and are of the highest quality. We will also rely on these stakeholders for relevant information on the market situation (trends, consumer tastes, feelings and comments amongst other things).

Strengths

1. Strategic market segmentation and implementation strategies.
2. Diversified market segments: ensuring the lack of dependency on one particular market.
3. Combination of skills in directorship. The directors intend to jointly develop business strategy and long-term plans, having wide experience in product and business know-how.
4. Establishment and maintenance of strong capital base.
5. An aggressive and focused marketing campaign with clear goals and strategies.

 Weaknesses

1. Lack of a reputation in comparison to our competitors.
2. The introduction of new organizational practices and personnel who have not previously worked together presents a challenge to the company.
3. A limited financial base compared to the major players in the industry.
4. Lack of clear-cut channels of distribution.
5. Establishment on the Internet will produce technological challenges.

 Opportunities

1. Specific niche: Appreciation for high-quality brew, enjoyment, and refreshment (and integration therein).
2. The new generation of individuals and families has a far greater appreciation of attractive packaging (image conscious).
3. Current drive by government and specialized institutions such as the Nigeria Export Development and Investment Authority towards export of locally manufactured products.
4. Internet marketing and sales–though still in its infancy.
5. Increasing number of foreign firms, especially from South Africa looking at penetrating the market.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Threats

The present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including:

1. Established mass-market companies’ development of new lines and vertically integrating so as to be totally in control of supplies and products being sold on the respective markets.
2. New marketing strategies and tactics by established products and companies.
3. Existing competition.

Market Analysis

Today we are experiencing rapid growth in the economy of unsurpassed nature. This has been brought about by (amongst other things) the relaxation of foreign exchange policies and macroeconomic policies geared towards attracting foreign investors into the country. The fiscal and monetary policies of the government geared towards maintaining growth with social justice have largely contributed towards this, evidenced by our economy averaging a growth rate of 7% since 1990–very high by international standards.

 Market Segmentation

Eno-obong Breweries will be focusing on the corporate and working class who appreciate good quality traditional beer. The working class will range from the miners who constitute a large portion of the market, to administrative personnel appreciative of good quality traditional beer. The corporate or managerial segment will constitute those managers who though aware of their image and reputation, want to put aside their ties and jackets after hours and/or on weekends to drink good traditional beer, easily accessible in the urban areas.

Our most important group of potential customers are those in the rural areas who often converge after hours to socialize and update one another on local news. These are potential customers who want to have an enjoyable time whilst drinking a good refreshing beverage. They do not want to waste their time making their own brew, but appreciate a good quality brew at a reasonable price.

We also intend to appeal to the foreign and local tourists who would be looking at experiencing traditional foods and drinks, a change from the usual beverages they often have.

Industry Analysis

Industry analysis information is presented in the following subtopics.

5.3.1 Competition and Buying Patterns

The key element in purchase decisions made at the Eno-obong Breweries customer level is the availability of an affordable, thirst-quenching product of good quality. The most important factor in this market is the distribution network. This is particularly so considering the good distribution network that XX Breweries Limited has in place enabling them to produce products that are constantly in demand throughout the country.

Main Competitors

Being in a predominantly monopolistic market structure, competition in the brewery manufacturing market as a whole is not that intense (in terms of numbers) at the current time due to the dominance of XX Breweries Limited, which has been on the market for a relatively long period of time. Cognisance should also be taken of home brewers who represent competition on our intended market. However upon closer research we identified several niches in the market that we may exploit, not wanting to confront XX Breweries one-on-one.

One of XX Breweries’ main products is S traditional beer, which will be one of our main competitor products. S is currently mass marketed in the whole of Nigeria and is popular amongst the rural and town folk. It is also present in the regional countries, including Zimbabwe, Zambia and Mozambique, with current intentions of going beyond these borders. This is mainly because it is in its maturity stage and these efforts of going international are meant to extend its product life. However a frailty of S is that the product does not maintain freshness for a long period, which is debilitating when its intentions are export. Hence Eno-obong intends to take advantage of this weakness.

Establishment	Location	Employment Size
XX Breweries	Gaborone	100+ Employees
XX Breweries	Lobatse	50-99 Employees
XX Breweries	Francistown	100+ Employees
XX Breweries	Gaborone	100+ Employees

XX Breweries in Nigeria

Recent financial results from T Brewery Holdings indicate that the organization as a whole has continued to perform exceptionally well on the back of a buoyant Nigeria economy. Turnover grew by 42% whilst operating profit is up 60% from N21.5 million to N34.5 million. For the 12 months to 31 March 2000, volume growth exceeded non-mining GDP growth by more than 2%, resulting in turnover growth of 12%. According to the audited results, higher volumes and turnover coupled with greater productivity and stringent cost controls translated into excellent earnings growth. With this in mind we strongly believe that there is an extremely lucrative market we may exploit.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Strategy and Implementation Summary

Our marketing strategy emphasizes focus. This will be the key. We are a relatively new company and hence must focus on certain kinds of products with certain kinds of consumers. Initially Eno-obong Breweries will focus on the local market and in the remote and previously inaccessible areas where there is a large market for our products. Hence the form of growth that shall be initially pursued will be that of organic growth mainly due to limited resources and the need to instill confidence in our products. The target customers will include key decision-makers in the retail and supermarket chains who often order or recommend on behalf of the whole organization, the aim being to obtain an initial order and fully satisfy the customer from then on.

1. We are currently building image and awareness through consistency and distinctiveness in our product provision.
2. We intend to focus on delivering quality products that in turn produce good referrals, which can then generate revenue. We intend to always have a relatively heavy personal selling component to our marketing strategy as previously discussed. Hence we intend to always be active in personal relationships with clients and strategic allies keeping abreast of their needs and wants.
3. We are focusing advertising on several key media.

We intend to achieve growth by creating a more enthusiastic customer culture than that of our competitors. All criteria from price competitiveness to staff attitudes are to be initially measured six-monthly, and then on a more regular basis as time goes on. The results will go down to depot level and be compared with the overall target. This form of consistent measurement of strategic goals will ensure that the organization remains focused on its goals and objectives, making any necessary adjustments where need be.

Value Proposition

Our value proposition is offering our customers refreshness and enjoyment at reasonable prices ensuring peace of both body and mind. Hence we intend to:

1. Market the benefit, not the product.
2. Ensure customer satisfaction.
3. Develop long relationships.
4. Market the company.

6.2 Competitive Edge

Our competitive edge will be our dominance of access to previously remote areas, customer orientation and traditional high-quality brew through stringent quality control. Although XX Breweries dominates the local market, it does not penetrate the remote areas as much as we intend to. Though we shall be serving different market segments we intend to focus on (discussion removed for confidentiality).

6.3 Sales Strategy

We intend to focus on improving our implementation, by working on key objectives and better coordination of marketing efforts. For the short term at least, the selling process will depend on personal selling and advertising to lure and inform potential clients about the products we offer and the benefits of consuming our products. Our marketing does not intend to affect the perception of need as much as knowledge and awareness of the product categories.

Sales Forecast

The sales forecast monthly summary is included below. The annual sales projections are included later in the plan. It should be noted that as we become established and known on the market we project sales to increase at a faster rate than the initial year.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

SALES FORECAST
	YEAR 1	YEAR 2	YEAR 3
Sales
X Beer	N659,712	N725,683	N812,765
Y Beer	N527,769	N580,546	N650,211
Z Beer	N278,545	N306,400	N343,167
TOTAL SALES	N1,466,026	N1,612,629	N1,806,144
Direct Cost of Sales	Year 1	Year 2	Year 3
X Beer	N369,439	N406,383	N455,149
Y Beer	N295,551	N325,106	N364,118
Z Beer	N155,985	N171,584	N192,174
Subtotal Direct Cost of Sales	N820,975	N903,072	N1,011,441

Marketing Strategy

One core element of our marketing strategy will be that of differentiation from our competitors. In terms of promotion, we intend to sell our company as a differentiated strategic ally, not just our products. In price, we intend to offer extremely reasonable prices in comparison to the competition and we need to be able to sustain that. Market penetration through lower prices shall be undertaken where need be, while premium pricing will be the case of the upper-end of the market.

 Service Provision

The service aspect of Eno-obong Breweries marketing mix shall constitute an important element in delivering total quality. This is due to the high degree of exposure our competitors already have. As such we intend our customer service to be key to the retention of customers. We shall follow-up with our clients on a regular basis so as to ensure they are satisfied with our products and delivery times. This is mainly because we intend our customers not to be one-time buyers but regular order seekers. The establishment of a rapport and understanding between our customers and ourselves is going to be an ongoing processes.

Mini Business Plan for Medium-Scale Brewery Akwa Ibom Nigeria

Pricing Strategy

Initially our prices will not be under our control but dictated by the market conditions prevailing at the particular time. This is particularly so in the case of products which are also produced by our competitors, as they are often representing a scale for consumers. However we realize that we must charge appropriately for the quality and work we shall be providing, in addition to the distribution of the products. Hence we intend the price will accommodate the mark ups prevailing in the industry, as well as our own costs. To be competitive in the market we intend to offer discounts to customers making bulk orders, which are in competition with the industry. This will also assist in the establishment of customer loyalty.

Promotion Strategy

Our promotion strategy will be based primarily on informing potential customers of our existence and making the right information available to our target customer. Since we shall be targeting different segments, the promotional tools and messages may vary slightly to match the intended market. However in all cases the marketing will convey the sense of quality, refreshness and health in every picture, every promotion and every publication. Promotional campaigns will seek to promote the ‘sharing aspect’ of the beer, customers drinking these products in groups.

Our promotional activities shall be focused towards driving the organization’s overall strategy relentlessly, developing internal consistency and prepare it to confront any radical changes that may arise. In such a market we cannot afford to appear in, or produce, second-rate material that make our products look less than they are. We intend to leverage our presence using quality brochures and other sales literature, including promotional material such as pens, complimentary slips and stickers. Due to the fact that our products are in the introductory phase on the market, promotional expenses are high in order to generate customer attention and knowledge of our products existence. We intend to spread the word about our business through the following:

Advertising

In view of the fact that we are entering a market largely dominated by XX Breweries Limited which has an approximate market share of approximately 95% (as previously discussed) we intend to undertake extensive advertising of our products in addition to our brand name–company name.

Events

These are increasingly becoming important as more firms establish in the country and hence the need to be known. The organization aims to participate in trade shows and quality taste tests

Public Relations

Recognizing that we are relatively new on the market there will be a need to organize an event, of grandeur nature, introducing ourselves onto the market. At this we intend to invite potential customers, senior officials, including the Minister of Industry and Commerce, and other stakeholders so as to penetrate the market. In collaboration with this we also intend to place news stories and features in magazines and newspapers to keep stakeholders updated on the latest developments and to increase awareness.

Personal Selling

This shall be undertaken in the form of sales calls whereby a sales person will go out to potential customers and distributors informing them what products we are able to offer them. In addition the sales person will listen to client’s needs at close hand, so as to ensure that the product is delivered timely and that it is the right product as demanded by the surrounding community.

Direct Marketing

This will be used, but only to a limited extent, in the form of telemarketing and informing potential customers and obtaining referrals where possible. In the case of telemarketing it will involve our targeting potential customers/distributors of our products and informing them of our existence and the products we offer. We may then arrange for an appointment with the respective decision-maker/order-maker, with the intention being to lure them into ordering one or more of our product lines.

Internet Marketing

The increasing growth of the Internet as an information source provides an opportunity that we may exploit. This is particularly so in view of the increasing investment and global trade amongst countries, as both large and small organizations look at obtaining the best deal possible.

Distribution Strategy

We believe that through our obsession for improvement, and commitment to a leadership position in our respective markets, we can overcome the traditionally binding constraints of resource base, firm size and narrow conceptualization of our business domain. This shall be undertaken through coordination and logical integration of our distribution operations. We aim to reduce cycle time for key processes, eliminate rework and waste, and optimize our human resources utilization. To attain low lead-times we intend to (discussion removed for confidentiality).

Trade Channels:

1. Wholesale Distribution Channels (discussion removed for confidentiality).
2. Retail Distribution Channels (discussion removed for confidentiality).

We intend to ensure that our breweries are located close to our major distribution centers not only to minimize costs but also to enable our products to be easily available, in the best condition, in the different markets nationwide.

 Product Marketing

Our product marketing will emphasize the benefits of consuming our products, including refreshment and enjoyment of top-quality brews. We intend to sell the opportunity to enjoy oneself amongst friends, family and/or colleagues. This will come out in our advertising, delivery and collateral such as sales literature and business cards.

Product Packaging

Our product packaging shall be of utmost importance, as it will definitely influence our potential customers on whether to try out our products or not. As such we shall ensure that it is not only attractive to consumers but also hygienic. As time progresses we intend to have packaging that enables the container to be used for other purposes after beer consumption, for example keeping water and being able to be deposited to retailers, the former of which we have identified as already being done. In the medium to long term we intend our product packaging to also be recyclable and hence more environmentally friendly–a continuous improvement process.

Production Summary

Our production system shall strive to attain service excellence in addition to manufacturing safe, quality products. This shall be undertaken through the engagement of modern production techniques using up-to-date assembly technology. This will also result in low production costs being attained by the company. We also intend to ensure that the suppliers we engage are committed and reliable so as not to let down the final consumer in terms of the quality of the product and time of delivery.

 Storage

It shall be the policy of the company to ensure that all raw materials are stored in a secure, clean and pest free manner. Stock takes and reconciliations shall be undertaken on a regular basis, initially done at least once a week. The stock principle of First In First Out (FIFO) shall be implemented. Whenever stock is taken out it shall be recorded on a separate stock or bin card, with reconciliations of raw materials issued to the brewery, issued to production, losses, opening and closing stock taken. Should any deviations arise these must be explained.

 By-Products

Eno-obong Breweries intends to utilize every resource it has to the fullest possible extent. We realize that there shall be a lot of by-products that will be produced from our production of the main product lines. However not wanting to pollute the environment, and our community at large, we plan to utilize by-products whenever possible. This will ensure that our resources are fully utilized.

Management Summary

Eno-obong Breweries shall evaluate the jobs it provides, paying competitive remuneration packages against market benchmarks to employees for their agreed and set out tasks. Consonant with its efforts to create added value by employees, Eno-obong Breweries seeks to negotiate the provision of incentive pay delivery mechanisms against achievement of agreed targets relating to accomplishment in the areas of productivity enhancement, savings and other specific successes, that is, the implementation of an effective performance management system.

Hence our human resources strategy will revolve around:

1. Communicating openly and transparently; addressing strong and trusted:
   1. Internal communication.
   2. External communication.
   3. Stakeholder inclusivity.
2. Responding and promoting human rights issues, such as equity in the workplace and in community relations.
3. Adoption of a good remuneration policy aimed at developing our people through employee benefits, training and group initiatives.
4. Maintaining preventative health and safety structures for employees and support for surrounding communities.

8.1 Management Team

The management team, mainly comprising of the shareholders, has wide expertise and broad knowledge of the products and markets, which if well planned for, will enable the business to realize its goals and objectives. Daily management will consist of Mr. B in the role of technical and operations, and Mr. G in dealing with government, corporate bodies, and public relations.

Management style will reflect the participation of the shareholders. The company intends to respect its community and treat all employees well. We will develop and nurture the company as community. We do not intend to be overly hierarchical. Management’s ongoing initiatives to drive sales, market share and productivity will provide additional impetus.

Training

In-house training shall be continuous with regular external training being undertaken particularly following any new developments in the market. This is so as to ensure that we are continuously able to anticipate our markets needs–a proactive approach, which is so essential if we are to gain and maintain a competitive advantage. Courses on brewing will be undertaken primarily in South Africa, preferably with the established and reputable firms, such as YY Breweries. This will ensure that our personnel are exposed to the latest production techniques and are able to set their standards, or benchmark, using these organizations standards. Internal training will not only include product and technical aspects, but also expand to give much greater knowledge of customers, market trends, products, new technology aids, time management amongst other such variables.

Feedback and Control

1. We intend to use employee satisfaction surveys to shape the business, making sure that the employee understands the goals of the firm, is customer focused, proud of their work and work as a team. This will encourage employees to become entrepreneurial and customer responsible, in addition to unifying staff in customer focus and values.
2. Important notices and developments will be continuously communicated to employers so as to keep them abreast of developments and promoting a sense of belonging and oneness in the organization.
3. We will encourage our employees to put forward any suggestions they might have regarding the improvement of any of the company’s functions–an open door philosophy. Such a culture will enhance innovativeness and creativity in turn leading to job satisfaction and enrichment.

Financial Plan

We want to finance growth mainly through cash flow and equity. We recognize that this means we will have to grow more slowly than we might like. The most important factor in our case is collection days, particularly with the bulk order customers. We can’t push our customers hard on collection days, because they are extremely sensitive and will normally judge us on our terms. Hence they tend to have a certain degree of financial authority. Therefore we need to develop a permanent system of receivables financing systems, using a well-coordinated accounting department. In turn we intend to ensure that our investors are compatible with our growth plan, management style and vision. Compatibility in this regard means:

1. Fundamental respect for giving our customers value, and for maintaining a healthy and congenial workplace.
2. Respect for realistic forecasts, and conservative cash flow and financial management.
3. Cash flow as first priority, growth second, profits third.
4. Willingness to follow the company and contribute valuable input to strategy and implementation decisions.

9.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendix. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Some of the more important underlying assumptions are:

1. We assume a strong economy, without major recession.
2. We assume, of course, that there are no unforeseen changes in economic policy to make our products immediately obsolete.

 

GENERAL ASSUMPTIONS
	YEAR 1	YEAR 2	YEAR 3
Plan Month	1	2	3
Current Interest Rate	10.00%	10.00%	10.00%
Long-term Interest Rate	10.00%	10.00%	10.00%
Tax Rate	25.42%	25.00%	25.42%
Other	0	0	0

Projected Profit and Loss

Our projected profit and loss is shown on the following table, with sales increasing from more than N1,466,000 the first year to more than N1,612,000 the second, and approximately N1,806,000 in the third year. Profits are calculated to be around N152,000 before tax the first year during the start-up phase of this business. This will be representative of a net profit margin of approximately 7%, which though may not seem that impressive is relatively good for a start-up firm in our line of business. As with the break-even, we are projecting very conservatively regarding cost of sales and gross margin. Our cost of sales should be much lower, and gross margin higher, than in this projection.

Expense Forecast

Initial marketing expenses are relatively high as we seek to become known on the market. This will be brought about by the development of sales literature, advertising expenses, and function expenses (including lunches and dinners with interested stakeholders). As our market share increases and capital is generated, further marketing programs and the expansion of those in existence at the time will be undertaken, to ensure market development. Once these programs will start generating revenue for the business, which we shall in turn reinvest

Controls

The local brewing market has been growing steadily over the last few years due to increases in people’s disposable income and opening of the economy. With this in mind we intend our marketing programs to expand accordingly. The introduction of quality catalogues and sales literature will enable Eno-obong Breweries to market to potential customers. We project sales to increase accordingly, though slightly slower as we establish a reputation for ourselves. With time, a presence on the Internet and participation in regional trade shows will be key milestones to expanding sales and marketing potentials through the utilization of new channels and identification of potential customers.

Throughout the year we intend to undertake regular evaluations of our marketing programs so as to ensure that we are in-line with our intended objectives. In summary we intend to undertake the following:

1. Tracking and follow-up: We intend to have the discipline, as an organization, to track results of the business plan and make sure that we implement.
2. Market segment focus: We intend to have the discipline to maintain the market segment focus.
3. Saying no: Though difficult initially, we intend to be able to say no to special deals that take us away from the target focus and are unprofitable.

Contingency Planning

1. We intend to watch our results very carefully. We may need to drop production of certain products if we cannot get the margin up or material becomes difficult to obtain. We might be able to avoid the straight competition with the major companies by focusing more on the previously mentioned products.
2. Another possibility is the introduction of a new company(s) in our niche. Hence the need to undertake aggressive marketing and networking.
3. An established beverage manufacturer may begin targeting to our target market niche. Hence the need for commitment in our work and striving of total quality in our organization.
4. Though Nigeria overall is rather secure on the labor front in terms of strikes we intend to have in place a mechanism that will ensure that were this to occur the negative effects would be minimized. However further research and analysis into the above is still being undertaken.