Business Plan For Livestock Fodder Company Marketing Essay

Business Plan For Livestock Fodder Company foodstuff EssayThe idea of the project was derived from market analysis, its demand and supply of camel nourishment in Saudi-Arabian Arabia. The problems which occurred in late 2007 in camel breed were main inciter of idea to develop and place new camel give in Saudi Arabia market. due(p) to contamination of fodder in 2007 which resulted in outrageous more than 2000 camel deaths the investigating was undertaken and the fodder was found to be stored in notional conditions and due to price efficiency, lamentable quality ingredients of camel fodder were used.We atomic number 18 aware of substances which were found in begrime fodder. Designing the new product departing consider fol down in the mouthing factorsPurpose of camel elevation (racing camels, beauty con testings, general breed) possible nutrition differentiationCamel nutrition requirementsVitamins added determineStorage solutionsPacking solutions (vacuum packing)Contamin ation awarenessCamel fodder preferencesPrice sensitivity result matchednessProduct shapeQuality sensitivenessDue to low labour and semi-products costs, production in Poland provide give the competitive gain based on price. comparatively high supply of ingredients in Poland which are crucial to produce the fodder will be also advantageous.Our propositions of character of this project as followsEstablishing new brand which will cater for all agreeable of camel breeders. theory site which will cover eachthing from production by dint of packing and dispatch. Establishing supply chain and finding possible sub contractors.Sub assure all operations to other companies in Poland. This will be less cost consuming and much faster in executing. Branding the product.ObjectivesEstablishing fully working production line of Livestock fodder, active for transportSetting up good distribution channel and supply chain which will lead to cost effective and savetransportation to Saudi ArabiaWe would like to sustain reliable service to our customersIn three years from the start we would like to meet 0,377% of total livestock feed demand of Saudi Arabia Which will account on averagesales 3459,4 Tones Per monthThis figure can be achieved when productivity of production line will be hatfulat 70 %In first year of operating, we would like to achieve 60%of all sales contracted for few years ahead electric chargeRoyalCamelseeks toproduce the lowestacceptable price and by providing the highest quality product and competitive featuresas vacuum packaging which affects on much womb-to-tomb 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 job.Keys to SuccessDue to low labour and semi-products costs, productio n 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 moderately big financial backup will be also key to success as it will secure operational flexibilityWell certain Business ne twainrk in Saudi Arabia will lead to fast and effective product introductionin themarketLong term business relationship with suppliers and clientsAfter establishing participation in the market, possible product modification according to customer requirements.Developing good marketing outline, finding new channels of communication with customers.Potential barriersCritical Paths and areas of SlackProductsThe Royal Camelcompany intention is to producea fodder which is made from hay.Product DescriptionCompetitive analogyDistinctionof product in competitive market. The product distinction will be based on price and packaging solutions. Custome r in the fleck of decision will chose product of a better quality. Our packaging will be main factor which will persuade customer of a commodious quality of the product. The other reason for customer to choose our productwill beprice.The mix of price and quality will give competitive advantage we are face for. Comparing to other products, our will not be as complicated notional wise. It is going to be flashyer and available to all customers. gross sales LiteratureAs 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 Farmsto 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 likealso to havealso arduous support of authorities in Saudi Arabia because at the mome nt the situation on thelivestock feed market is very close to monopolistic practices which are illegal andbrings alsolack of market balance and safety. TechnologyThe technology will be based mainlyon 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)DryerBales grindersFiber cooling lineMilling linePelleting lineControl panelsDryersProject Organisation8.1 Personell Plan8.1.1 Management team mickle responsible for financial planning and all organizational issues8.1.2 SupervisorsPeople responsible forlabours productivity during shifts8.1.3 SecretaryPerson responsible for appointments, researches, data gathering, communication and other built in bed duties8.1.4 TechniciansPeople responsible for proper line operation8.1.5 credentialWhole object security8.1.6 LaboursPeople responsible for production8.1.7 Project ConsultantsGroup of outdoor(a) specialists responsible for consultacy8.2 Personell Plan- Finantial SummaryAccording to Polish Standard pay rates, we have chosen satisfactory (but not very high) amounts.Nevertheless, we expect 10% rise every year as a performance bonusPROJECT CONSULTANTS ARE NOT TAKEN UNDER CONCIDERATION AS THEY ARE GOING TO BE chartered ONLY FOR PROJECT IMPLEMENTATION PROCESSPersonnel PlanYear 1Year 2Year 3Management team33 60036 96040 656Supervisors10 20011 22012 342Secretary6 6007 2607 986Technicians8 4009 24010 164Security24 00026 40029 040Labours24 00026 40029 040Total People111111Total payroll department106 800117 480129 228Company Locations and FacilitiesThe 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 ofcheap labour and high amount of ingredients available. FacilitiesWe expect following Facilities on the production site9.1 Production linePackaging naval divisionShredding sectionDryersCooling sectionGrinding SectionPelleting SectionPellet cooling sectionStructures and platformsControl PanelElectricity dispenser9.2 Offices and canteensCanteen with kitchenToiletsManagers partingSecretarys officeConference officeTechnician office.9.3 cable car Park for labours and gests sub judice and contractual issuesRisk AssesmentSWOT ANALISYS12.1 Strengths12.1.1 The Price Value CorrelationThe main Strength and advantage of Royal Camel fodder will be based on desired correlation between high quality of the productand low production cost.The price-Value Correlation will be achieved by two advantageous factorsThe low production costwill 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 qualityfodder12.1.2 Possibilities of longer StorageDue 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 aerobicbacterias evolution.12.1.3 mellow Qualified workforcePeople responsible for production process will be high skilled and motivated due to innovatory motivation management strategy so we plan that no mistake s and failures will occur within production process.12.1.4 Best Quality MachinesAnother 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 andengineering.Moreover, they will take care about first two weeks of production period toarrange all improvements in process and train people.12.1.5 Multipurpose solutionThe work 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 therewas a lack of Horse Fodder For some reasons we will be able to fill the demand extemporaneously at camel fodder expense.12.2 Weaknesses12.2.1 Price LimitationsThe 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 OpportunitiesThe 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 factorsPurpose of camel breeding (racing camels, beauty contests, general breed) possible nutrition differentiationCamel nutrition requirementsVitamins added valueStorage solutio nsPacking solutions (vacuum packing)Contamination awarenessCamel fodder preferencesPrice sensitivityProduct competitivenessProduct shapeQuality sensitivenessAs an international company we would like toshare the market with competitors based on Saudi Arabia market and Producers from other countries.12.4 Threths12.4.1 To strong competition of ARASCO and sssssssssThere are two core competitors on the Saudi Arabian Market.Both of them are well established companies which unneurotichold over 60% of the market.Nevertheless Royal Camel will be able to cover0,377%of the Arabian Livestock Market12.4.2 Seasonal Fluctuations of DemandIt is unadorned that demand can change and fluctuate. Nevertheless, we would like to contractorders onwards with customersSeasonal Fluctuations of ingredientsPrice OccurrenceThe 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 c hange but according to demise years experience, the changes should not be higher than +, 10%12.4.3 TechnicalMachines used in our project will be the best and most reliableon 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 planStartup Expenses DescriptionLegal issuesAs a Legal Issues, we understand Lawyers expenses, opening new partnership, advisory etc.InsuranceThe insurance of the company is very importantin consequence of fire, floods and all other unpredictedthreatsBuilding costs of factoryThe issue of building costs is counted with material (steel) and cost of assemblyBuilding Cost of officeIn 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 wandering premises which can be assembled into officeProjectsAll projects of architectsFactory projec t,Offices projectsland developmentspatial developmentWeb Designquality sample testBefore sales, we will have to send around 20 samples of fodder and check its full specificationsAssembly of the Production lineThe service of assembling, creating and starting up the whole production line by the Spanish CompanyProduction Line MachinesShredding Drying Cooling Grinding PelletingPellets cooling Structures and platformsPackingLandCar commonalty landStartup Expenses SummaryRequirementsLegal Issues28 000Insurance3000Building costs of factory (steel construction)2 200 000Building Cost of office19 000Projects4 300Web Design1 000quality sample test700Assembly of the Production line232 000building car park10 000Total Start-up Expenses2 495 000