Sunday, January 26, 2020
Business Plan For Livestock Fodder Company Marketing Essay
Business Plan For Livestock Fodder Company Marketing Essay The idea of the project was derived from market analysis, its demand and supply of camel fodder in Saudi Arabia. The problems which occurred in late 2007 in camel breed were main initiator of idea to develop and place new camel fodder in Saudi Arabia market. Due to contamination of fodder in 2007 which resulted in outrageous more than 2000 camel deaths the investigation was undertaken and the fodder was found to be stored in bad conditions and due to price efficiency, poor quality ingredients of camel fodder were used. We are aware of substances which were found in contaminated fodder. Designing the new product will consider following factors: Purpose of camel breeding (racing camels, beauty contests, general breed) possible nutrition differentiation Camel nutrition requirements Vitamins added value Storage solutions Packing solutions (vacuum packing) Contamination awareness Camel fodder preferences Price sensitivity Product competitiveness Product shape Quality sensitiveness Due to low labour and semi-products costs, production in Poland will give the competitive advantage based on price. Relatively high supply of ingredients in Poland which are essential to produce the fodder will be also advantageous. Our propositions of character of this project as follows: Establishing new brand which will cater for all kind of camel breeders. Opening site which will cover everything from production through packing and dispatch. Establishing supply chain and finding possible sub contractors. Subcontracting all operations to other companies in Poland. This will be less cost consuming and much faster in executing. Branding the product. Objectives Establishing fully working production line of Livestock fodder, prepared for transport Setting up good distribution channels and supply chain which will lead to cost effective and save transportation to Saudi Arabia We would like to sustain reliable service to our customers In three years from the start we would like to meet 0,377% of total livestock feed demand of Saudi Arabia Which will account on average sales 3459,4 Tones Per month This figure can be achieved when productivity of production line will be set at 70 % In first year of operating, we would like to achieve 60% of all sales contracted for few years ahead Mission Royal Camel seeks to produce the lowest acceptable price and by providing the highest quality product and competitive features as vacuum packaging which affects on much longer storage possibilities. We value our relationships with future customers and hope to communicate our appreciation to them through our outstanding, guaranteed product quality, personal service, and on-time delivery. Our commitment to our customers and the country of Saudi Arabia will be reflected through honest and responsible business. Keys to Success Due to low labour and semi-products costs, production in Poland will give the competitive advantage based on price. Relatively high supply of ingredients in Poland which are essential to produce the fodder will be also advantageous. Reliable and Motivated Hardworking Stuff Reasonably big financial backup will be also key to success as it will secure operational flexibility Well Developed Business network in Saudi Arabia will lead to fast and effective product introduction in the market Long term business relationship with suppliers and clients After establishing company in the market, possible product modification according to customer requirements. Developing good marketing strategy, finding new channels of communication with customers. Potential barriers Critical Paths and areas of Slack Products The Royal Camel company intention is to produce a fodder which is made from hay. Product Description Competitive Comparison Distinction of product in competitive market. The product distinction will be based on price and packaging solutions. Customer in the moment of decision will chose product of a better quality. Our packaging will be main factor which will persuade customer of a great quality of the product. The other reason for customer to choose our product will be price. The mix of price and quality will give competitive advantage we are looking for. Comparing to other products, our will not be as complicated notional wise. It is going to be cheaper and available to all customers. Sales Literature As a part of marketing campaign, we are planning to prepare product brochures which will be presenting our company, supply chain and describing our products. Those brochures will be sent out to core players on the Saudi Arabian Market, to nutrition and big Camel Farms to inform them about new solution. On the other hand, we will be trying to enter on the Saudi Arabian Market by articles in agricultural magazines and local press. We would like also to have also strong support of authorities in Saudi Arabia because at the moment the situation on the livestock feed market is very close to monopolistic practices which are illegal and brings also lack of market balance and safety.  Technology The technology will be based mainly on one Spanish company which is in the market for over 30 years in the market of industrial machinery. The production line will include the newest technology developed for this kind of product. (See Appendix 1) Dryer Bales grinders Fiber cooling line Milling line Pelleting line Control panels Dryers Project Organisation 8.1 Personell Plan 8.1.1 Management team People responsible for financial planning and all organizational issues 8.1.2 Supervisors People responsible for labours productivity during shifts 8.1.3 Secretary Person responsible for appointments, researches, data gathering, communication and other office duties 8.1.4 Technicians People responsible for proper line operation 8.1.5 Security Whole object security 8.1.6 Labours People responsible for production 8.1.7 Project Consultants Group of external specialists responsible for consultacy 8.2 Personell Plan- Finantial Summary According to Polish Standard pay rates, we have chosen satisfactory (but not very high) amounts. Nevertheless, we expect 10% rise every year as a performance bonus PROJECT CONSULTANTS ARE NOT TAKEN UNDER CONCIDERATION AS THEY ARE GOING TO BE HIRED ONLY FOR PROJECT IMPLEMENTATION PROCESS Personnel Plan Year 1 Year 2 Year 3 Management team à ¢Ã¢â‚¬Å¡Ã‚ ¬33 600 à ¢Ã¢â‚¬Å¡Ã‚ ¬36 960 à ¢Ã¢â‚¬Å¡Ã‚ ¬40 656 Supervisors à ¢Ã¢â‚¬Å¡Ã‚ ¬10 200 à ¢Ã¢â‚¬Å¡Ã‚ ¬11 220 à ¢Ã¢â‚¬Å¡Ã‚ ¬12 342 Secretary à ¢Ã¢â‚¬Å¡Ã‚ ¬6 600 à ¢Ã¢â‚¬Å¡Ã‚ ¬7 260 à ¢Ã¢â‚¬Å¡Ã‚ ¬7 986 Technicians à ¢Ã¢â‚¬Å¡Ã‚ ¬8 400 à ¢Ã¢â‚¬Å¡Ã‚ ¬9 240 à ¢Ã¢â‚¬Å¡Ã‚ ¬10 164 Security à ¢Ã¢â‚¬Å¡Ã‚ ¬24 000 à ¢Ã¢â‚¬Å¡Ã‚ ¬26 400 à ¢Ã¢â‚¬Å¡Ã‚ ¬29 040 Labours à ¢Ã¢â‚¬Å¡Ã‚ ¬24 000 à ¢Ã¢â‚¬Å¡Ã‚ ¬26 400 à ¢Ã¢â‚¬Å¡Ã‚ ¬29 040 Total People 11 11 11 Total Payroll à ¢Ã¢â‚¬Å¡Ã‚ ¬106 800 à ¢Ã¢â‚¬Å¡Ã‚ ¬117 480 à ¢Ã¢â‚¬Å¡Ã‚ ¬129 228 Company Locations and Facilities The Location the Royal Camel Production Line is going to be based in Poland in small city called Pyzdry. (52 ° 10 N / 17 ° 41 E). We will need around: 3200 m2The reason why that particular city has been chosen is because of high amount of grass around the whole area. We were looking for compromise between the land price and richness of the green resources surrounding production line. Moreover we were trying to find places with networking. On the other hand, the choice of Poland because of cheap labour and high amount of ingredients available. Facilities We expect following Facilities on the production site: 9.1 Production line: Packaging section Shredding section Dryers Cooling section Grinding Section Pelleting Section Pellet cooling section Structures and platforms Control Panel Electricity dispenser 9.2 Offices and canteens Canteen with kitchen Toilets Managers office Secretarys office Conference office Technician office. 9.3 Car Park for labours and gests Legal and contractual issues Risk Assesment SWOT ANALISYS 12.1 Strengths 12.1.1 The Price Value Correlation The main Strength and advantage of Royal Camel fodder will be based on desired correlation between high quality of the product and low production cost. The price-Value Correlation will be achieved by two advantageous factors: The low production cost will be achieved by low labour and semi-products costs, so production in Poland will give the competitive advantage based on price. Relatively high supply of ingredients in Poland which are essential to produce a reach and high quality fodder 12.1.2 Possibilities of longer Storage Due to contamination of fodder in 2007 which resulted in outrageous more than 2000 camel deaths the investigation was undertaken and the fodder was found to be stored in bad conditions and due to price efficiency, poor quality ingredients of camel fodder were used. The final Products of royal Camel will be pellets and bales. Both of them, just after Pelleting and baling process will be packed in vacuum way. This will affect with longer storage possibilities due to lack of air which impacts on reducing the anaerobic and aerobic bacterias evolution. 12.1.3 High Qualified workforce People responsible for production process will be high skilled and motivated due to innovatory motivation management strategy so we plan that no mistakes and failures will occur within production process. 12.1.4 Best Quality Machines Another very important advantage of business will be cooperation with World class specialists in area of production lines. The Spanish Company will cover whole production line design and engineering. Moreover, they will take care about first two weeks of production period to arrange all improvements in process and train people. 12.1.5 Multipurpose solution The last important Advantage of This production line offer is fact that while planning whole investment, we took under consideration other investments of Saudi Arabian Investors in Poland, so if there was a lack of Horse Fodder For some reasons we will be able to fill the demand extemporaneously at camel fodder expense. 12.2 Weaknesses 12.2.1 Price Limitations The main weakness of Royal Camel base product will be fact that its recipe is limited because of its low price. It means that product will be reach but it wont be a Premium product. However this Problem can be easily overcame by implementing strategy which will allow stretching the brand and preparing the production line of expensive premium product. 12.3 Opportunities The idea of the business opportunity was derived from market analysis, its demand and supply of camel fodder in Saudi Arabia. The problems which occurred in late 2007 in camel breed were main initiator of idea to develop and place new camel fodder in Saudi Arabia market. Due to contamination of fodder in 2007 which resulted in outrageous more than 2000 camel deaths the investigation was undertaken and the fodder was found to be stored in bad conditions and due to price efficiency, poor quality ingredients of camel fodder were used. We are aware of substances which were found in contaminated fodder. Designing the new product will consider following factors: Purpose of camel breeding (racing camels, beauty contests, general breed) possible nutrition differentiation Camel nutrition requirements Vitamins added value Storage solutions Packing solutions (vacuum packing) Contamination awareness Camel fodder preferences Price sensitivity Product competitiveness Product shape Quality sensitiveness As an international company we would like to share the market with competitors based on Saudi Arabia market and Producers from other countries. 12.4 Threths 12.4.1 To strong competition of ARASCO and sssssssss There are two core competitors on the Saudi Arabian Market. Both of them are well established companies which together hold over 60% of the market. Nevertheless Royal Camel will be able to cover 0,377% of the Arabian Livestock Market 12.4.2 Seasonal Fluctuations of Demand It is obvious that demand can change and fluctuate. Nevertheless, we would like to contract orders onwards with customers Seasonal Fluctuations of ingredients Price Occurrence The harvest period is between July and August so contracting will be done whole year onwards, nevertheless because of natural disasters like floods, dry weather, wind, the wheat prices can change but according to last years experience, the changes should not be higher than +, 10% 12.4.3 Technical Machines used in our project will be the best and most reliable on the market, nevertheless, breakdowns are possible and we have to be aware that drops in production fluency are possible. Control of the implementation of the plan Startup Expenses Description Legal issues As a Legal Issues, we understand Lawyers expenses, opening new partnership, advisory etc. Insurance The insurance of the company is very important in case of fire, floods and all other unpredicted threats Building costs of factory The issue of building costs is counted with material (steel) and cost of assembly Building Cost of office In case of savings, we have chosen the cheapest solutions (office containers) this solution mixes low costs with high functionality. Instead of building new offices, we will buy ready mobile premises which can be assembled into office Projects All projects of architects: Factory project, Offices projects land development spatial development Web Design quality sample test Before sales, we will have to send around 20 samples of fodder and check its full specifications Assembly of the Production line The service of assembling, creating and starting up the whole production line by the Spanish Company Production Line Machines: Shredding:                    Drying                            Cooling                        Grinding                        Pelleting                         Pellets cooling              Structures and platforms Packing Land:                              Car park land                  Startup Expenses Summary Requirements Legal Issues à ¢Ã¢â‚¬Å¡Ã‚ ¬28 000 Insurance à ¢Ã¢â‚¬Å¡Ã‚ ¬3000 Building costs of factory (steel construction) à ¢Ã¢â‚¬Å¡Ã‚ ¬2 200 000 Building Cost of office à ¢Ã¢â‚¬Å¡Ã‚ ¬19 000 Projects à ¢Ã¢â‚¬Å¡Ã‚ ¬4 300 Web Design à ¢Ã¢â‚¬Å¡Ã‚ ¬1 000 quality sample test à ¢Ã¢â‚¬Å¡Ã‚ ¬700 Assembly of the Production line à ¢Ã¢â‚¬Å¡Ã‚ ¬232 000 building car park à ¢Ã¢â‚¬Å¡Ã‚ ¬10 000 Total Start-up Expenses à ¢Ã¢â‚¬Å¡Ã‚ ¬2 495 000
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