LOC (LAND OF CHICKENS)

Contents
EXECUTIVE SUMMARY........................................................................................................................................ 2

INTRODUCTION.................................................................................................................................................. 3

REASONS FOR THIS BUSINESS.............................................................................................................................. 3

PRODUCTS AND SERVICES................................................................................................................................... 4

TARGET MARKET................................................................................................................................................. 4

MARKETING PLAN............................................................................................................................................... 4

KEYS TO SUCCESS................................................................................................................................................ 5

OPERATIONAL PLAN............................................................................................................................................ 6

POINT OF DIFFERENTIATION............................................................................................................................... 6

MANAGEMENT AND ORGANIZATION.................................................................................................................. 6

PERSONAL FINANCIAL STATEMENTS.................................................................................................................... 6

STARTUP EXPENSES AND CAPITALIZATION.......................................................................................................... 6

FINANCIAL PLAN................................................................................................................................................. 7
INTRODUCTION

In the chicken industry there are two main sectors:

1) Layers 2)Broilers
Chickens raised to produce eggs are usually called LAYERS while chickens raised and bred to
be slaughtered (killing of animal) for meat are often called BROILERS.
The business we want to start is of broilers. We will open up a poultry farm with the name of
LOC known as Land of Chickens.

REASONS FOR THIS BUSINESS

There are a many factors that make poultry farming business a profitable one but we will be
highlighting only three major factors:

 Food is one of the basic needs of man. Regardless of the economic situation, human beings
must feed and since domestic birds are consumable; that makes poultry farming feasible.
 Our country PAKISTAN for instance has a population of over 179.2 million and growing;
bear it in mind that a huge population means a huge demand for food (egg and meat).
 The demand for eggs and chicken meat from consumer pulls up with every passing day
especially in winter. The time required for raising broiler birds is lesser than that for big
animals and the fact that low protein diet is good for health increases the demand and supply
gap. The broiler meat is the cheapest source of animal protein available in the country. 
 Poultry and eggs business proved to be one of the most profitable or high return business in
Pakistan. It could give seven times profit on investments. Take chicks which cost 35 rupees
per chick. Grow them for less than around two months until it become one and half kilogram
chicken. This size chicken is selling in around 220 to 255 rupees in Pakistan. One can easily
analyze this stunning return of profit.
 Further, there not many large or organized poultry business companies in Pakistan. Demand
is very high. Infect chicken is always short. Chicken business people are earning billions of
rupees daily. People are unhappy about this high price of chicken these price. Businessmen
and companies can easily make market by offering lower prices.

PRODUCTS AND SERVICES

The product will be of course chickens and our business model will be B2B i.e, Business to
Business. We will make contracts with the business partners.
TARGET MARKET

One of the major customers for poultry farms are the major fast-food companies, although some
of them have their own chicken farms to supply their needs.

MARKETING PLAN

The tip of successful business is

Putting the right product in the right place, at the right price, at the right time.

The marketing Mix includes 4Ps.

The 4Ps are:

 Product (or Service).

 Place.
 Price.
 Promotion.

PRODUCT

There is a lot of demand of fast-food in Pakistan. With the increase in demand, the increase in
the ingredients also increase. Major source of revenue of Fast Food companies come from selling
chicken dishes, burgers, pizzas etc. The LOC will provide healthy chickens to Fast Food
companies.

PLACE

The farm will be made on Sheikhupura Road, Feroze Wala, Lahore. The customer can come and
visit anytime and sign a contract. The place will be ofcourse clean and well guarded from any
disease esp. bird flu.

PRICING

The Market price will be LOC price and it is my concern that the price should be affordable for
everyone at every time.
PROMOTION

We will make ourselves known to potential customers and consumers. Advertise LOC by simply
letting other people know that we have eggs or meat that they need. Often selling by word-of-
mouth is a lot cheaper and still the most popular means of advertising than paying for an
advertisement in the local newspaper that may get read by only a few people. We will promote
by using Public relations and making contacts and visiting different fast food chains in Pakistan.

KEYS TO SUCCESS

Keys to success for LOC will include:

1. Providing the highest quality product with personal customer service.

2. Competitive pricing.

OPERATIONAL PLAN

We plan to open the farm in 2016. The business plan is ready, we now require funds to pursue
the dream of providing healthy chicken.

POINT OF DIFFERENTIATION

 To ensure healthier chickens and more production levels, LOC will strategically imply
modern science techniques for breeding and feeding of its birds. 
 The high quality standard that we will apply in all areas of production from state of art
environment controlling sheds and feed mills to other health related medicines will show
our higher health standards. How we will use our energy is what changes our way of living
LOC aims to step in to other avenues of food processing from live bird to fresh chilled and
frozen product market. 
MANAGEMENT AND ORGANIZATION

The labors hired will be responsible for carrying out the duties and instructed to let the
management know immediately about any problem they might see and new ideas will be
welcomed to make farm better.

PERSONAL FINANCIAL STATEMENTS

As the businesshas yet to be started so there are no financial statements yet. The expense
estimated is around 50,000+.

STARTUP EXPENSES AND CAPITALIZATION

 Floor space required per chicken

3- 4 sq ft required for general purpose chicken.
 Types of chicken sheds are used these days, most popular ones are the cage sheds while
some people also use floor cages
 The shed area required for 10,000 birds
30,000 sq ft house is needed for 10,000 chickens, if you prefer cage type shed then the built-
up area will be 4000 sq ft to 7500 sq ft depending on the type of cage you use in your poultry
farm. Average space needed for a bird in cage type shed is from 4 - .75 sq ft.
 Precautionary Measures: Chickens are just like children and other animals. To ensure
continuous production of chicken and eggs, chickens should be regularly checked by
veterinarians to ensure their health. Sick chickens will negatively affect your production, so it
is important to have adequate medical coverage for poultry animals.
 Capitalization required would be 1-1.5 lakh
FINANCIAL PLAN

Setting up a poultry farm requires a lot of money, as poultry farming requires an expanse of land
a hectare or more wide. We would also have to procure a large herd of chickens that are more
than hundreds in number in order to generate the proper returns in income. Fortunately, we can
avail yourself of loans that are offered to those that are starting or even those that are already in
the business.

The loans can be used to cover these aspects of the business:

* Start-up costs for the farm
* Construction expenses
* Animal feeds
* Operational expenses that need to be paid urgently.
It is also easy to apply for these loans, as there are lenders that can be found online aside from
the local loan providers in your area. The terms and conditions of these loans can also be
customized.