KIWANUKA FRUITY JUICE CO

BUSINESS PLAN

OWNERS
Kiwanuka Fruity Juice Co
Drafted by Kiwanuka Ben
Email: benkiwanuka17@yahoo.com
Mobile:+256772960395

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Table of Content
1.0 Executive Summary ............................................................................................................................................ 3
1.1 The business and its management .............................................................................................................. 3
1.2 Company long Terms Objectives ............................................................................................................... 4
1.3 Company near Terms Objectives ............................................................................................................... 4
1.4 Company summary......................................................................................................................................... 4
2.0 Company Products (Goods /Services) ........................................................................................................... 5
3.0 Market Analysis summary. ............................................................................................................................... 6
3.1 Market trends ................................................................................................................................................... 7
3.2 Profile of Competitors ................................................................................................................................... 7
3.3 Competitive Advantage ................................................................................................................................. 8
3.4Marketing strategy ........................................................................................................................................... 8
4.0 Sales strategy ........................................................................................................................................................ 9
4.1Sales forecast ..................................................................................................................................................... 9
6.0 Management and staffing ............................................................................................................................... 11
7.0 Manufacturing/Production Strategies ......................................................................................................... 12
8.0 Company strategic Alliances ......................................................................................................................... 14
9.0 Forecast and financial data ............................................................................................................................. 14
Conclusion ................................................................................................................................................................. 16

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1.0 Executive Summary

1.1 The business and its management

Kiwanuka Fruity Juice Company (U) is a small scale company dedicated to the production of soft
drink products. Since it is a manufacturing or production line type of small and medium sized
enterprise(SME), the raw materials can be improved on during processing by addition of different
flavors so that to improve on the taste and quality of the final products. Also additives and
preservatives will be added in the mix to ensure prolonged shelf life of our products.
There will be no need for adding sugar, as the fruits contain natural sugars. Fruits available during
That particular season will be harvested. A portion would be used, the remainder either dried or
frozen in a deep freezer for out-of-season use.

It will start as a sole proprietor business and has hopes of expanding and developing into a limited
liability company.
The SME is to be strategically located to cab a better target market, accessibility to transport,
water and other services, in this regard therefore, the business will be located in Nakwero Wakiso
District, along Gayaza road, on a large piece of land making it possible for future expansion of the
company.
Kiwanuka Fruit Juice Co. (U) Ltd intends to seek for financial assistance to facilitate expansion
plans and enable her implement her plans of high scale productivity.
The company has a skilled management team of staff with experience in core areas and a common
goal of making a business a success.
Legal form of ownership:
The company will start as a sole proprietorship, later goes into partnership explicitly producing soft
beverages manufacturing juice in different formats for specific target market. This will commence
effect January 2016. Kiwanuka Fruity Juice Company is a newly planned company being
structured to be one of the best beverage producing companies around Kampala in the nearby
generation.

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Mission
The mission of the company is “to make partnerships with shareholders to expand and improve the
quality of the product through addition to the business.

Vision
Our vision is “To be the leading producers of quality soft drinks in the region”

1.2 Company long Terms Objectives

 To become the greatest producers of soft drinks in Uganda and East Africa
 To become a large scale producer at multi- border scale
 To diverge from a partnership into a company within seven years period
 To migrate from a labor intensive approach to a high capital intensive business in a Five
year period
 To increase sales from 40% in one year to 90% in the next seven years

1.3 Company near Terms Objectives

 To increase sales to 40% in the next five years

 To expand production and sales into exports in the next five years
 To increase the labor personnel to over 300 employees in the next five years
 To become capital intensive in the next five years
 To increase a market area to 70% in the next five years
 To enhance the product branding, packaging, production and research in the next five years.

1.4 Company summary

The company plans to operate on a shareholders basis structure and approach. This will involve a
number of shareholders who will contribute their capital shares towards the formation of the
business (SME). The shareholders make up the board of committees, board of management
and entire management of the business.

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The main shareholders take 30% shares per a shareholder with a planned cash investment of
7,000,000 Uganda Shillings to date. Kiwanuka Fruity Juice Company will also operate on a
promotional approach where products will be promoted by the company committee members to the
market.

2.0 Company Products (Goods /Services)

Kiwanuka Fruity Juice Co.(U) Ltd is to produce beverage products (Soft drinks) to target all age
brackets within Kampala and Uganda at large for the first five years.
The product contains a branded name entitled “Kiwa Fruity” with a light pink attractive color to
seek customer attention.

The “Kiwa Fruity” product is to be packaged in both small designed plastic bottles and packages
polythene bags. On the packaging, the product also contains branding of the address, contacts,
ingredients, date of manufacture, the expiry date, the lot number and the product philosophy tag
which states “Sweetness is our Quench.”

Kiwanuka Fruity Juice Co. also plans to produce large sums of product brochures to supply to
customers as a form of promotion and increase of sales in the first production period. The brochure
contains details of the products, types, category of the product, location of the business, address
and the contact details. This product brochure is attractively designed to capture a big customer
market.

Competitive advantage: Kiwanuka Fruity Juice Co. is to design two types of packages which
include the plastic bottles for the adult age bracket and small polythene to cab the younger
customers. Other companies have produced soft drinks with one package type. In addition, the
pricing of the products has been branded or scanned on to each produced finished juice. The
quantity of the product is relatively enough to quench ones thirst and provide satisfaction for the
customers based on the quality control measures.

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The product pricing and guarantee: “Kiwa Fruity” for both packages for any flavors goes for one
thousand Ugandan shillings (1,000shs) which is relatively affordable by a big population and not
on a far range from other competitive products. The product does not contain any warrantees since
it is a consumable item.
In terms of future prospects and product development, the product will be able to cab a wider range
of the market and customer base hence increasing sales. In the next five years the product will have
been enhanced in terms of packaging and branding. The quantity and price will relatively be
changed within the planned time frame based on competitors and economic changes.

The suppliers of the raw materials will be local farmers who will be in position to supply the
company with all different fruits ranging from pineapples, oranges, mangoes, passions, paw paws
and other related fruits. Other suppliers will include plastic suppliers for the plastic packaging,
graphic designers for the branding and simple machinery supplied from Ssembule Mills.

3.0 Market Analysis summary.

Based on the market research carried out by the marketing team of the company, the justification
obtained shows that the projections of the company made in this business plan are worthwhile; this
stands to be a better idea, better product, and better business to out compete the market.

The market research carried out about the product, customers, competitors, the market and pricing
shows that the business is a viable market and can beat all the competition in the market for the
sales.
The company plans to perform a better market segmentation to cab a wider customer base. The
most important aspect in the segmentation is the target market, the emphasis will be placed around
Kampala city and the outcasts as plans to widen the market are being drafted.
Segmenting by age brackets, the polythene packaged product will be highly distributed in the out
casts of the city because of the large number of infants and teens as the plastic bottle will be based
mainly around the city. Based on status and class, the segmentation is carried out to attract the
working class personals, the students and other customers capable of buying the product.
The product also subjugates a big market size of 40% under the soft drinks and beverages
production and distributing companies and contains a 90% chance of growing the market space to
80% in the next three years.
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In addition, Kiwanuka Fruity Juice Co. Ltd plans to accomplish the following marketing
objectives
 To promote the products around Kampala in different approaches
 To employ sales personnel to promote the product
 To analyze the competitors by benchmarking and observations.
 To distribute brochures around companies and universities
 To partner with promotion companies like TV stations, radio stations and telecom
companies
 To form marketing co-operations

3.1 Market trends

There have been a number of changes in the beverage markets in the past years; some of the trends
include production at different prices. The pricing of soft drinks around Kampala has been altering
in the previous trends due to change in the economy such as dollar changes, inflation and impacts
of political environment in Uganda.

In order for Kiwanuka Fruity Juice Co. to meet the future demands, the company plans to produce
at a relatively high price for the customers and provide relatively high quality and quantity. The
price and quantity will be adjustable to meet any future changes and diversions in technology,
Government regulations, economy and the industry.

3.2 Profile of Competitors

Kiwanuka Fruity Juice Co Partakes opposition from other soft drink companies on small and large
scale companies. Competing products in this industry include locally manufactured juice like
Munanansi, passion fruit manufactures; canteen fruit takeaways, coca cola, Riham Cola Company,
fizzy soft drinks, and Lavita soft drink producers.
The competitors are advantages in this industry because they have delayed in the business for a
long time. This in return has enabled the competitors to obtain a large customers base in the region
and are adoptive to any economic change in the industry. Besides the longer they have served in
the industry the more the customers fade away due to limited changes made, hence disadvantaged

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3.3 Competitive Advantage

In this section, I describe the assessment of why potential customers will choose to buy and
consume my product in place of those profiled above. The advantages may include:
 The two different formats of packaging (plastic and polyether)
 The relatively low price of 1,000 ug shs from the competitors selling at 1,200ug shs and
above for 300ml
 The distribution, selling, advertising, promoting will be done through digital systems such
as information systems, web sites, mobile applications and digital media
 The product provides better value to the customer in terms of efficiency and ROI based on
the cost/ benefit ratio compared to other competitors.
 The product is much compatible with the existing systems of distribution, packaging and
pricing hence ability to adjust

3.4Marketing strategy
The marketing strategy will be based on generating awareness and a visibility of Kiwanuka Fruity
Juice Company (U) Ltd and their ability to produce the highest percentage of products for the
regional market.

The second form of numerous trade shows for the industry in various parts of the country.
The second form of communication will be the use of advertisements. The main avenues for
advertisements will be in newspapers and industry trade magazines. These are a well-read source
of information that buyers and sellers refer to for many different transactions.
Stickers will be printed and distributed at supermarkets, cars and authorized public places.
The Company will also carry out door to door promotion in which we shall supply small
Quantities of each product to retail shops and supermarkets to test our product with a view that
they will subsequently place the orders

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4.0 Sales strategy

Kiwanuka Fruity Juice Co. plans to sell its products to the different segmented market in the
following ways:
Sales strategy efforts will focus on identifying qualified leads and turning them into paying
customers. The main sales the company will undertake are the reinforcement of the fact that the
company’s products will have high quality inherent in them. In addition to having one time buyers,
Kiwanuka Fruit Company (U) Ltd intends to attain loyal customers and longtime contracts.
Another method will be direct selling- where the company sales directly selling to the customers
without using any agents or distributors. This will help the company to cut costs of production and
increasing the sales.

4.1Sales forecast
The sales forecast indicates that growth will be slow but steady. Growth will be slow because of
the time and effort needed to develop the customers. There are few risks that could have a negative
impact on sales. The first is customer awareness.
The sales team plans to divide itself into a number of groups to sell and distribute products. This
will be advantageous mostly in terms of market segmentation and promotional strategies.

The company also proposes to use a digital format to distribute the products; this will be based on a
website. The advantage of using this method is to condense labor and the related costs hence
increasing sales and returns of revenue.

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5.0 SWOT Analysis
Kiwanuka Fruit Juice co.(U) Ltd.’s vision of being the leading producer of quality product and
services is central to its business strategy. The business will use the SWOT analysis to reach its
stated objectives. This is a strategic planning tool which will help the business to focus on the key
issues.SWOT is the first stage of planning and looks at the Strength, Weaknesses, Opportunities
and Threats which will be involved in the business venture.
The Strength and Weaknesses are internal aspects. This means they will be with the business
control while the Opportunities and Threats are external factors which the organization may not
have control over them.
Kiwanuka Fruit Juice Co.(U) Ltd will acknowledge its weaknesses in order to improve and manage
them. This will help in setting objectives and developing strategies. The organization will use its
strength to take advantage of the opportunities which will arise.

Summary
Opportunities
 A growing demand for its products
 The business will be executing regular audits and investigations to identify opportunities
for improvement in efficiency and effectiveness
 The organization will ensure regular training and workshops for the staff that will empower
them and sustain their knowledge
 The ability to implement service delivery agreements with its clients
Strengths
 High quality offering which will exceed outr competitors offerings of pruicwe, quality
and services
Weaknesses
 A limited marketing budget to develop its product awareness.
 Insufficient funds to run the organization
 Market forces-More competitors entering the virgin market of the firm.
 Economic forces-Economic recessions which shows down customer spending and
disposable incomes
 Poor and unpredictable weather which will lower field yields.

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6.0 Management and staffing
Kiwanuka Fruity Juice Co (U) Ltd is a small scale partnership business that operates under the
Board of Directors, management team and casual laborers. The company is headed by a Managing
Director who heads the board of Trustees and Committee board. The director has the mandate to
appoint the other subordinates in the organization.
Managing Director
The managing Director ensures that the firm is on the right path in terms of meeting its goals,
objectives and the mission and helps to identify profitable ventures. This he does base on
consultations and assistance from the management team.
Production Advisor: the advisor is responsible for observing loopholes and giving the fair view on
a regular basis that may cause change. The advisor will be working hand in hand with sale and
marketing personnel.

Finance Manager: this is in charge of managing the company fiancés, records, cash inflows and
outflows. Also carries out cost – benefit analyses, prepares the organization financial statements
and ensures there is a system that fosters financial accountability and responsibility.

Staffing
The company operates with all departments necessary for a production of business; the company
has sections such as sales department, accounting department, marketing department, human
resource, business production department, operational department.
In the next three years the business plans to expand to other departments such as IT department,
branch managers.
All these employees and labor should contain the necessary skills and experience and critically
sieved by the human resource manager and board of directors

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7.0 Manufacturing/Production Strategies
Kiwanuka Fruity Juice Co. carries out production at a minimal level; the production involves juice
processing to form better quality juice for ready market. The production process is managed by the
production manager at the company premises.

Production of the products involves receiving supplies from the different farmers; the raw
materials received at the production stores mainly include the fruits from local farmers around
Uganda, food color to change the juice color, sugar from Kakira Sugar Company to create the test
and finally the equipment’s used for juice processing.

Manufacturing process: The manufacturing process begins from procuring of the raw materials
from the suppliers. The fruits are delivered into the production store in the unit, due to the
perishability of the fruits; refrigerators are used to store the fruits. The process follows up by
sorting and cleaning of the fruits based on the products to be extracted. The sorted fruits are placed
in a blending machine, which crushes the fruits and forwards to the sieve to remove the dirt and
residue. The residue is wiped out from the blending machine and used for further processing or
waste disposal.

The final product is obtained and placed in big cans of distilled water to purify them and a mixture
of color is made.
Facility: The Company will need heavy supply of electricity (power) with well-equipped back up
to run the blending machines. One of the most important facilities needed it the blending machine
which extracts and squeezes the fruits into liquid form or juice. The other equipment needed is the
sieve which cleanse and sorts the juice from the dirt/residue.

Generators and digital investors are needed to maintain the power supplied at the premises. The
other facility highly needed at the premise is the storage facilities such as the refrigerators that
contain and cool the fruits in safe custody.

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Output Limitation: the biggest limitations of outputs in this regard include the following
 Limited storage space
 Lack of storage facility
 Limited preservatives
 Limited skilled manpower
 Changes on seasons for the raw materials
 Equipment breakdown
The possible solutions to the limitations of output will include expansion of the storage rooms and
facilities; this will involve purchasing offsite storage rooms. Regular servicing of the machinery
and equipment to reduce of their breakdowns

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8.0 Company strategic Alliances
Kiwanuka Fruity Juice Company plans to expand with in the shortest time; the company will
achieve this through merging measures.
The ultimate reason as to why the company will merge with another company is to promote growth
and keep in the business- business survival. The business merging process for Kiwanuka Fruity
Juice Company will involve the following steps
 Plan
 Spelling out the objectives clearly
 Spelling out the resultant gains
 Evaluating the other company management
 Determining the value and appropriateness of existing resources
 Work towards establishing a climate of mutual trust so as to minimize management threat
or turbulence.

9.0 Forecast and financial data

The financial data and forecast will reflect Kiwanuka Fruity Juice Company future life goals,
future wealth transfer plans and future expense levels. Extrapolated asset values will determine
whether the client has sufficient funds to meet future needs. Financial plans shall be made to
ensure a smooth transition through Kiwanuka Fruity Juice Company’s financial phases, such as
decreasing spending or chasing asset allocations. The forecasted statement of comprehensive
income of Kiwanuka Fruity Juice Company for the three years

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Fig 1: forecasted statement of comprehensive income of Kiwanuka Fruity Juice Company for the
three years

The financial plan consists of a 12 month profit and loss projection, a four year profit and loss
projection (optional), a cash flow projection, a projected balance sheet, and a break even
calculation. Together they constitute a reasonable estimate of the company financial future.
More important, the process of thinking through the financial plan will improve your insight
into the inner financial workings of the company

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Table 1: Summary of the revenues for three years

SUMMARY DATA: REVENUE

ITEM YEAR ONE YEAR TWO YEAR THREE

Other Companies 40,000,000 42,000,000 45,000,000
Plastic package Juice 32,000,000 34,000,000 38,000,000
Polythene package 35,000,000 36,000,000 39,000,000
Juice
Mango Juice 31,000,000 32,000,000 39,000,000
Total Sales 138,000,000` 134,000,000 116,000,000
Table 2: Summary of the costs/expenses for three years
SUMMARY DATA: COSTS/EXPENSES

ITEM YEAR ONE YEAR TWO YEAR THREE

Salaries 15,000,000 18,000,000 20,000,000
Blending equipment’s 10,000,000 10,000,000 10,000,000
Maintenance costs 3,000,000 3,000,000 3,000,000
Production Costs 7,000,000 12,000,000 15,000,000
Rent and rates 3,000,000 3,000,000 4,000,000
Communication 1,000,000 1,000,000 1,000,000
Transport Costs 3,000,000 3,000,000 3,000,000
Administration 3,000,000 3,000,000 3,000,000
Expenses
Depreciation 3,000,000 3,000,000 3,000,000
Total Expenses 47,000,000 56,000,000 62,000,000

Table 3: Summary of the Balance Sheet of Kiwanuka Fruity Juice Company

ITEM YEAR ONE YEAR TWO YEAR THREE

Non-Current Assets 90,000,000 75,000,000 61,000,000
Current Assets 14,000,000 12,000,000 11,000,000
Current Liabilities 70,000,000 61,000,000 64,000,000
Net Current Assets 36,000,000 84,000,000 18,000,000

Conclusion
The proposed business idea as indicated in the foregone assessment is viable and its
implementation will help us finance our operations and address the aspect of financial
sustainability as articulated in the plan

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