9/10/2019

Baby World Enterprises

A business proposal

Contact Information:
Lincoln Maupah
+263 785318860
 Company name: Baby World Enterprises

Address: 1156 Magamba rd

Chipadze

Bindura.Zimbabwe

Email: www.babyworld.ent.zw

Prepared by : Maupa Lincoln

Contents

List of Tables..............................................................................................................................2

Executive Summary...................................................................................................................3

Mission Statement......................................................................................................................4

Vision Statement........................................................................................................................4

Statement of problem (Opportunity)..........................................................................................5

Objectives...................................................................................................................................6

Business Work Structure............................................................................................................7

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Roles and Responsibilities.........................................................................................................7

Market Target Details................................................................................................................8

Method / Activities.....................................................................................................................9

Marketing Strategy.................................................................................................................9

Payment Options..................................................................................................................10

Resources.................................................................................................................................11

Schedule/Timeline....................................................................................................................12

Risk Measurement and Management.......................................................................................13

Budget......................................................................................................................................14

Budget per Item........................................................................................................................15

Import Tax................................................................................................................................18

Checklist/Milestone..................................................................................................................19

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 List of Tables

Table 1: Age distribution in Bindura

Table 2: Business Budget

Table 3: ZIMRA Import Tax Flat Rates

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 Executive Summary

Babies are charming beings and the products they need are just as cute. This business, Baby
World Enterprises, specializes in clothing retailing that sell a wide range of infant and
children’s wear, such as dresses, jackets, jumpsuits, sleepwear amongst others, and also baby
toys and food staff and toiletries. The recent years has seen Bindura's growing urban
population, increased child births and an increase in consumerism. Such trends had a positive
impact on the baby products industry, yet Bindura has no shop or store that specialises in
baby products selling and distribution. This became the motivation behind the establishment
of Baby World Enterprises which seeks to be the first and best ever in the town of Bindura,
with the possibility to expand its business to other towns and provinces. This document
serves to propose how the business intends to be run, resources needed, structure of the
business, SWOT Analysis, and a progress checklist amongst other sections.

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 Mission Statement

Our mission is to offer distinctive baby-oriented fashion and products to our target customers.

Vision Statement

Our vision is to provide customers with a magnanimous inventory of baby products such as
clothing and toys, also accessories for all of their infant and baby’s needs.

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 Statement of problem (Opportunity)

As a growing town in Zimbabwe, with its consumer statistics on the rise and urban

population increasing, Bindura still has no shop that specifically sells baby (0-9years)

products. Business is booming for providers in the baby care products and services industry.

In th context of the Zimbabwean economy, the cost of raising a child from infancy to age 1 is

more than $225,00. That shows a good business opportunity in the baby products

investments.

The marketplace has responded to industry demand in Zimbabwe by offering a diverse

spectrum of baby-focused products and services. Yet the baby product business only looms in

Harare. What about the new growing town of Bindura? As two-income families have become

the norm in Bindura, there are more opportunities than ever to sell products and services that

make life easier for busy parents.

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 Objectives

This business seeks to achieve the following objectives:

 To provide the best quality baby products in Bindura at an affordable price

 To effectively sell product at such a pace that will allow the expansion of the Business

and opening of new branches.

 To create employment to the youth in Bindura town and periphery.

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 Business Work Structure

 Store Manager

 Sales and Marketing Manager

 Cashiers

 Cleaner/Security Guard

Roles and Responsibilities

Store Manager

 In charge of managing the daily activities in the shop

 Ensures that the store facility is in tip top shape and conducive enough to welcome
customers

 Controls the sales floor inventory

 Ensures that goods and products are properly arranged

 Supervises the entire sales staff and workforce

Sales and Marketing Manager

 Takes care of external research and coordinate all the internal sources of information
to retain the organizations’ best customers and attract new ones

 Models demographic information and analyse the volumes of transactional data

generated by customer purchases

Cashier

 Receives payments on behalf of the shop during purchase

 Issues receipt to customers

 Handles all financial transaction on behalf of the shop

Cleaner/Security Guard

 In charge of cleaning the store facility at all times

 Ensures that all customer parcel are inspected and checked upon exit to avoid theft

 Any other duty as assigned by the shop manager

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 Market Target Details

The market target is Bindura Urban. Bindura is a town that is located in the province
of Mashonaland Central in Zimbabwe. It is situated in the Mazowe Valley about 88 km
North-East of Harare. The target population is specifically the infants, toddlers and children
under the age of nine (9).

The children clothes and products is a billion dollar niche in the African clothing industry.
With a notable change in population dynamics in Bindura in particular and Mashonaland
Central in general, it is important to note that this means greener pastures for the baby
product business in the region. Through offering diversity in baby toys, food and clothing
products, we believe that this will create a small market alcove for businesses to sell baby
clothing and products in Bindura. We have also noted our target market and the best way to
reach them. Listed below in the population statistics of the region:

Table 1: Age distribution in Bindura

Age Quantity

0-9 years 11,310 ***

10-19 years 9,452

20-29 years 9,745

30-39 years 7,194

40-49 years 3,418

50+ years 2,848

Total Urban Population 43,967

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 Method / Activities

Marketing Strategy

i. Big Sale on the grand opening

On the opening day, there shall be a well-planned grand opening. This will announce the
store's presence in the business community. Like any retail grand openings, this grand
opening shall feature special guests from Bindura, festive decorations, purchase incentives
and giveaways, and will heavily advertised to create a sense of anticipation. The main idea is
to make the shop known to as many customers as possible.

ii. Distribute flyers and brochures.

Flyers and brochures explaining the aims, objectives of the business will be distributed in
Bindura. This may also be accompanied by catalogues showing the prices for the products in
stock. The marketing team will be responsible for this. Some marketers shall run their flyer
and brochure hand distribution campaigns including door to door methods. Some members of
the team will be giving verbal messages and responding to customer queries in public places
such as in shopping centres.

iii. Mass marketing campaign with a possibility of a door to door operation.

Not everyone travels to the shops. However, baby products are needed by everyone. To reach
a wider customer base, we shall carry out a door to door campaign in which we will display
and explain how our products will work.

iv. Social Media Catalogue

Most people are on now escaping to social media and internet transactions. To reach those
customers, we will unleash our social media business in which people can get catalogues,
answers to question etc from our marketing tech team.

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 Payment Options

With the shortage of cash in the region and the country at large, the business offers a variety
of payment options we provide will serves as a factor that brings the business closer to the
heart of the people. The options include:

 Payment by via bank transfer

 Payment via check

 Payment via mobile money

 Payment with cash

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 Resources

i. Transport and Delivery

Transport that will move the products from the supplier to the shop location is needed.
The transport mode will have to be a cross boarder trader or a registered import/export
company.

ii. Labour

People who are going to be carrying out the operations of the day are needed in order
to make the progress of the store possible. More on the labourers will be explained
under the sub-heading Structure.

iii. Rentals and Maintenance

The shop owner does not own the shop premises so rent shall be resource that should
be considered with great importance. To make the business more appealing to the
customers, refurbishing and constant upgrade and renovations will be needed. This
includes choosing the wall paper, carpet, lighting and decor that will convey the
atmosphere fit for a baby store.

iv. Baby Products

These are central in running the business. Without the baby products to sell, there is
no baby shop business to talk about. More details on the products and the pricing will
be given under the sub-heading Budget

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 Schedule/Timeline

Upon commencement, the business expects to sell off its stock in three (3) months. This
allows the stores to bring in new stock according to climatic seasons and satisfy the needs of
all babies in Bindura and Mashonaland Central.

The Operating times of the shop seeks to be from 7:30hrs to 15:00hrs. The shop will open up
to 12:00 noon on Saturday and not open on Sunday, giving the workers a day of rest. The
shop will not open again of public holiday for patriotic reasons.

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 Risk Measurement and Management

The SWOT Analysis for our business was conducted during a pilot survey and the results are
as follows:

Strength

 The shop is the first and one of a kind in Bindura. It offers exported products at an
affordable price.

 The owner and manager have a good understanding of and a good network in the
market of baby products

Weakness

 The shop has no premises and product brand of its own.

 Importing products is expensive and this can delay the growth of the business.

Opportunities

 The development and growth of the clothing and baby product manufacturing in
Southern Africa and South Africa (which are the suppliers) makes it possible to
expand the business nationwide.

 The business can develop its own brand of clothing and food staff

 Increased mortality rate in Bindura and Zimbabwe, means the opportunity to sell
more products and means a possible growth of consumerism in the region.

Threat

 The unstable economic stand in the country is a threat to the operations and growth of
the business.

 Despite rising consumer spending on baby products and services in Zimbabwe, the
process of launching a successful, baby-focused business won't be easy because it is a
“blue ocean”.

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 Budget

Overall Budget

Table 2: Business Budget

Category Capital Needed

Baby Products $6113

Transport and Import Duty $800

Renovations and Designing $1500

Labour $1250 per month

Shop Registration $250

Insurance $150 per month

Total $10 063

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 Budget per Item

Food Products

(**Please note that the products are bought in Rands but sold US Dollar**)

Product Name Buying Price x30 Selling Price x1 x30

x1

Purity (Six Pack)

a. 80 ml R9 R270 $1.00 $30

b. 120ml R11 R330 $1.20 $36

c. 200ml R15 R450 $2.20 $66

d. 250ml R22 R660 $3.25 $97.50

Purity Soft Porridge

a. 350g R18 R540 $2.30 $69

b. 400g R22 R660 $3.00 $90

Teething Biscuits R30 R900 $3.50 $105

Cerelac (250g) R30 R900 $2.85 $85.50

Purity Fruit Juice 200ml R10 R300 $1.00 $30

Purity Cereal 200g R30 R900 $2.75 $82.50

Chocolates R12 R360 $1.00 $30

Mashmallows R15 R450 $1.50 $45

TOTAL R6720 TOTAL 763.50

Toys

Product Name Buying Price x20 Selling Price x1 x20

x1

Plastic Bicycle R150 R3000 $20.00 $400

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 Bicycles R450 R9000 $40.00 $800

Baby Walkers R300 R6000 $35.00 $700

Play and sort basket R65 R1300 $9.00 $180

Lego Creativity Box R80 R1600 $10.50 $210

Barbie Dolls R20 R400 $3.00 $60

Coffee Set R90 R1800 $11.00 $220

Toy Laptop R150 R3000 $20.00 $400

Total 28100 Total $3220

Toiletries

Product Name Buying Price x1 x20 Selling Price x1 x20

Milk Containers R35 R700 $3.00 $60

Cotton Wool Pads R35 R700 $3.20 $64

Cotton Balls R35 R700 $3.20 $64

Carriage Bags R90 R1800 $10.00 $200

Cotton Ear Buds R6 R120 $1.00 $20

Baby Wipers R40 R800 $4.20 $84

Nappies Clips R20 R400 $2.50 $50

Plastic Lunch Boxes R10 R200 $1.20 $24

Huggies x100 R330 R6600 $35.00 $700

Pampers x100 R150 R3000 $22.00 $420

Water proofs R30 R600 $3.50 $70

Baby Powder R25 R500 $3.25 $65

Baby Soap R12 R240 $1.10 $22

Bathing Soap R10 R200 $1.00 $20

Towels R8 R160 $1.50 $30

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 R15 R300 $2.00 $40

R25 R500 $3.50 $70

R50 R1000 $7.00 $140

Tooth Brush R8 R160 $1.00 $20

Tooth Paste R8 R160 $1.00 $20

Washing Powder R25 R500 $3.00 $60

R38 R760 $3.80 $76

TOTAL R20100 TOTAL $2319

Clothing

Product Name Buying Price x20 Selling Price x1 x20

x1

Babies leggie and t-shirts R20 R400 $3.00 $60

Toddler Jackets R50 R1000 $6.50 $130

Wool Hats R12 R240 $1.50 $30

Socks R8 R160 $1.00 $20

Caps R15 R300 $1.50 $30

Vest tops R20 R400 $3.00 $60

Sport Sandal R70 R1400 $9.00 $180

Leather Sport Sandals R120 R2400 $15.00 $300

High Cut Shoes R100 R2000 $12.00 $240

Denim Soft-sole Shoes R60 R1200 $7.50 $150

Baby Body Suit R60 R1200 $7.20 $144

Toddler legging R30 R600 $3.50 $70

Printed Hoodie Top R30 R600 $4.00 $80

Toddler Golf t-shirt R50 R1000 $6.00 $120

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 Sleepsuit R60 R1200 $7.00 $140

Joggers R60 R1200 $7.50 $150

Celebrity T-shirt R40 R800 $5.00 $100

Belted Shorts R60 R1200 $7.00 $140

Crinkle Jogger Jeans R70 R1400 $8.50 $170

Sweat Top R40 R800 $5.00 $100

Girls Short (1-10 years) R70 R1400 $7.50 $150

Boys Short (1-10 years) R50 R1000 $6.20 $124

Girls Playsuits (1-10 years) R70 R1400 $8.50 $170

Boys T-shirts (1-10 years) R37 R740 $4.00 $80

Girls T-shirts (1-10 years) R50 R1000 $6.50 $130

Total R24550 Total $3068

Total needed to buy all baby products = R79 470 (around $6113).

Expected total after selling the products = $9370.50 (around R121 816.50)

NB// According to calculations of the business taken from the survey price check and
business profitability check, the baby products business in Bindura is more likely to be very
profitable.

Import Tax

Table 3: ZIMRA Import Tax Flat Rates

Flat Rate Description of goods Rate of duty

FR (d) Beverages of all kinds 110%

FR (e) Aerated beverages 70%

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FR (g) Books 5%

FR (i) Clothing 40% + $5.00 per kg

FR (i) Footwear 40% + $5.00 per pair

FR (i) Other personal effects 40%

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 Checklist/Milestone

 Business Name Availability Check: Completed

 Opening of Corporate Bank Accounts: Completed

 Opening Online Payment Platforms: Completed

 Application for business license and permit: In Progress

 Purchase of Insurance for the Business: In Progress

 Conducting Feasibility Studies: Completed

 Leasing, renovating and equipping our facility: Pending

 Generating part of the start – up capital from the founder: Pending

 Applications for Loan from our Bankers: In Progress

 Writing of Business Plan: Completed

 Drafting of Employee’s Handbook: Completed

 Drafting of Contract Documents: In Progress

 Design of The Company’s Logo: Completed

 Graphic Designing of Packaging Marketing / Promotional Materials: In Progress

 Recruitment of employees: Pending

 Creating Official Website for the Company: In Progress

 Creating Awareness for the business (Business PR): In Progress

 Establishing business relationship with banks, financial lending institutions and key
players in the industry: In Progress

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