Zam2 Cool

Mohamed Adam Abdurahim

Managing Director
ADNARA KENYA LIMITED
P. O. BOX 2752 - 80100
MOMBASA
KENYA

ADNARA KENYA LTD

Business Plan

Prepared: August 2015

Contents
Business Plan template.......................................................................................1

Using this template.............................................................................................2

Business Plan Summary......................................................................................4

The Business................................................................................................4
The Market...................................................................................................4
The Future...................................................................................................4
The Finances................................................................................................5

The Business.......................................................................................................5
Business details............................................................................................5
Registration details........................................................................................5
Business premises.........................................................................................5
Organisation chart.........................................................................................5
Management & ownership..............................................................................6
Key personnel...............................................................................................6
Products/services..........................................................................................8
Innovation...................................................................................................8
Insurance....................................................................................................8
Risk management.........................................................................................9
Legal considerations......................................................................................9
Operations...................................................................................................9
Sustainability plan.......................................................................................11

The Market........................................................................................................12
Market research..........................................................................................12
Market targets............................................................................................12
Environmental/industry analysis....................................................................12
Your customers...........................................................................................12
S.W.O.T. analysis........................................................................................13
Your competitors.........................................................................................14
Advertising & sales......................................................................................15

The Future........................................................................................................17
Vision statement.........................................................................................17
Mission statement.......................................................................................17
Goals/objectives..........................................................................................17
Action plan.................................................................................................17

The Finances.....................................................................................................18
Key objectives & financial review...................................................................18
Assumptions...............................................................................................18
Start-up costs for [YEAR].............................................................................19
Balance sheet forecast.................................................................................20
Profit and loss forecast.................................................................................21
Expected cash flow......................................................................................22
Break-even analysis.....................................................................................23

Supporting documentation................................................................................24
Business Plan Summary
The registered name of the business is ADNARA KENYA LIMITED, registered under the
laws of Kenya. The business is located in a godown of 1800 sq feet in Mombasa, Kenya.
The godown is fully sub-divided by blocks and cement to create production room, stores
and an office. Adnara Kenya Limited is owned by 2 directors, each with 50% share
holding. Currently the business asset value of Kshs. 5,000,000 being a full plant of
Reverse Osmosis water purifying machine, Plastic bottles making machine and factory set
up and fittings.

The primary function of the business is to produce and sell purified drinking water in
plastic bottles packaged into cartons of 500ml, 1000ml, 1500ml and 4000ml. The trading
brand of the business is Zam2 Cool. Immediate target market for the business is retail
shops in Mombasa town and its environs. Further potential markets for bottled water in
Mombasa and its environs are Ship Chandlers, local eating places, established hotels,
restaurants cafes and coffee houses. Neighbouring counties such as Kwale, Kilifi, Lamu
and Taita Taveta also provide potential markets for bottled drinking water.

The main objective of the business is to produce high quality water and sell at a low
price. Recently concluded market research established that there is weekly demand for
over 11,000 cartons of purified drinking water from retail shops only. The research
further indicated that preferred supplier of bottled water by retail shops should supply
high quality water at low price and guarantee continuous and reliable supply at all times.
From the market research findings, the business aims at aligning itself favourably to be
the most preferred supplier in the retail shops market. The weekly sales target is set to
9,000 cartons within a span of 10 months.

Bottled water industry in Mombasa currently has a total of 6 companies. From the 6
companies, 3 are serious operators, all targeting high end market and price their
products higherly. The other 3 companies target mainly retail shops and local eating
places with low priced products but all characterized with low quality. This offers the
business a great opportunity to penetrate into the retail shops market faster and with
100% success. To increase chances of attaining the set targets, the business shall
employ 2 Sales Persons, both with over 2 years experience and truck record of selling up
to 1000 cartons of water a week. Further business development support shall be
provided through strategic marketing campaign to enhance visibility and strengthen the
company’s brand within the target market.

The business targets to register annual net profit of over Kshs. 13,000,000 in its first
year of operations, over Kshs. 17,000,000 in its second year and over Kshs. 20,000,000
in its third. Total assets value of the business after three years of operations is forecasted
at over Kshs. 34,600,000. To attain these targets successfully, the business requires
capital injection of Kshs. 11,531,120 to purchase necessary machinery, tools and ideal
stock level of raw materials. All the required capital injection is expected to be solicitated
in a form of a bank loan, payable in 30 months equal installments of Kshs. 500,000.

Longterm future plan of the business is to expand and reach out the entire market in
coastal region.
The Business
Business name: ADNARA KENYA LIMITED

Business structure: LIMITED LIABILITY COMPANY

ABN: REGISTERED IN KENYA, REGISTRATION NUMBER:

YEAR 2009

Business location: MOMBASA, KENYA

Date established: 2012

Business owner(s): MOHAMED ADAM ABDURAHIM

SWAFIYA NASSIR ALI (WIFE)

Relevant owner experience: 12 YEARS OF SENIOR MANAGEMENT AND 15 YEARS IN

BUSINESS DEVELOPMENT, MBA – MARKETING DEGREE (2002)

Products/services: BOTTLED PURIFIED DRINKING WATER

The Market
Target market:

Retail shops in Mombasa, Kwale and Kilifi County for starter, later on expand to Tana
River, Taita Taveta and Lamu Counties. Other than the big brands like Keringet and
Dasani which are expensive, all other locally manufactured brands are of lower quality
tastewise because their water purification plants are not complete. Out of need to reduce
capital, most local water companies invested in only parts of water purifying plant. We
have invested in a full Reverse Osmosis water purifying plant, hence producing high
quality water and retailing at the same price as the other locally produced brands. This
gives us an adge over the competition.

Marketing strategy:

Divide the target market into 12 sub-markets, each with a minimum of 150 retail shops.
From market research findings, a standard retail shop sells an average of 5 cartons of
water in a week. We shall have 2 sales and delivery trucks of 7 tonnes capacity each,
Each truck will have a driver, sales person and a loader and shall be allocated 6 of the
sub-markets to sell a minimum of 600 cartons every day (except Sundays). That will
make total daily sales of 1200 cartons (except Sundays).

Employ best sales persons in the region and pay them much better than any other
company. Then peg 50% of their pay on sales as commissions to motivate them sell and
achieve the set targets. Given that our brand is already known in the market as the best
locally produced brand, this will be a great help to the sales persons.

The Future
Vision statement:

To be the preferred brand across coastal region

Goals/objectives:

Short Term Objectives: To produce and sell 600 cartons of 500 ml, 1000 ml and 1500
ml bottled water daily – First Month

To produce and sell 800 cartons of 500 ml, 1000 ml and 1500 ml bottled water daily –
Second Month

To produce and sell 900 cartons of 500 ml, 1000 ml and 1500 ml bottled water daily –
Third Month

To produce and sell 1100 cartons of 500 ml, 1000 ml and 1500 ml bottled water daily –
Fourth Month

Mid Term Objectives: Add 4000 ml bottles in our product line. Increase daily
production and sales to 1500 cartons – Tenth Month

Long Term Objectives: Produce and sell 3000 cartons of water daily, except Sundays –
In three Years time.

The Finances
The company has the following assets in hand right now:-

DESCRIPTION QTY UNIT VALUE TOTAL VALUE

1 Semi-Auto Blowing Machine 1 2,500,000.00 2,500,000.00

2 Full RO Purifying Plant 1 1,500,000.00 1,500,000.00

3 Fully done Factory 1 1,000,000.00 1,000,000.00

TOTAL VALUE: KSHS. 5,000.000.00

Assets that need to be purchased at start up of the business

DESCRIPTION QTY UNIT VALUE TOTAL VALUE

1 Canter – 7 tonnes 2 1,500,000.00 3,000,000.00

2 3 Phase Generator – 6 Kva 1 500,000.00 500,000.00

3 Carton Maker Machine 1 1,500,000.00 1,500,000.00

TOTAL VALUE: KSHS. 5,000,000.00

Business Details

Products: 500 ml Cartons of purified water

1000 ml Cartons of purified water
1500 ml Cartons of purified water
4000 ml Cartons of purified water

Registration details

Business name: ADNARA KENYA LIMITED

Trading name: Zam2 Cool

Date registered: 2011

Location(s) registered: Nairobi, Kenya.

Business structure: Limited Liability Company

REGISTRAION NO:

VAT: Registered with Kenya Revenue Authority for VAT remittance

VAT NO:

Domain names: adnarakenya.co.ke and zam2cool.co.ke

Licences & permits Required: Single Business Permit

Kenya Bureau of Standards Permit
Government Chemists Permit
County Health Permit

Business premises
Business location: The Factory and Offices are built in a hired godown along Muranga
Road right at the heart of Mombasa Island. The godown is 1800 sq feet partitioned to
create production room, stores and office.

Buy/lease: Lease of 5 years starting from 1st September 2015 is ready for signing.
Organisation chart

MANAGING
DIRECTOR
Mohamed Adam

ADMIN & HR PRODUCTION & FINANCE &

MANAGER QUALITY SALES
ASSURANCE MANAGER
Warda Abubakar
MANAGER Iman Ali
Joseph Mwalimu

DRIVERS & LOADERS SALES TEAM

PRODUCTION TEAM

Management & ownership

Names of owners: MOHAMED ADAM ABDURAHIM
SWAFIYA NASSIR ALI (WIFE)

Details of management & ownership: MOHAMED ADAM ABDURAHIM will run the
business as Managing Director. MOHAMED has MBA – Marketing degree from Kenyatta
University, with over 12 years experience in Operations Management with special focus in
Business Development.

SWAFIYA NASSIR ALI is a graduate of economics from Kenyatta University with over 10
years experience in Accounts.

Experience: MOHAMED has run serious organizations as General Manager with over 70
staff under him. He started his carrer in Mombasa and worked in the coastal region for
over 8 years as Regional Manager of one of the leading Telecommunication company. He
then moved to Nairobi and worked as General Manager of Callkey (EA) Ltd and currently
the same position for Alldean Networks Ltd. MOHAMED’s experience in senior
management and business development is over 12 years.

SWAFIYA worked as an accountant of an NGO for over 10 years. She is currently

teaching at a local Secondary School.
Key personnel
Key Staff

Job Title Name Expected staff Skills or strengths

turnover

Finance & Sales Mr Iman 2-5 years Holds B-Comm Marketing degree
Manager Ali and MBA – Finance. With over 5
years experience in Finance
Management and Business
Development

Sales Executive Mr Yassin 2-5 years Graduate with 5 years experience

Ibrahim in the industry. Currrently working
with “Natures Ltd” one of the
leading companies in coastal
region. Right now selling 500
cartons every day.

Sales Executive Mr Chris 2-5 years Graduate with 3 years experience

Mwakazi in the industry. Currently working
for Hemalaya Waters in Mombasa
and sells 500 cartons daily.

Production Head Mr Joseph 2-5 years Over 10 years experience in the

and Quality Mwalimu industry as head of production and
Control quality control

Admin Manager Ms Warda 2-5 years Over 5 years experience in

Abubakar administration.

Other Required Staff

Job Title Quantity Expected Skills necessary Date required

staff
turnover

Drivers 2 2-3 years Certified driving license Immediately

class B

Loaders 2 2-3 years At least 2 years Immidiately

experience in the same
capacity

Production 20 2-3 years At least 2 years Immediately

Team experience in the same
capacity

Office 1 2-3 years At least 2 years Immediately

Help/Loade experience in the same
r capacity
Recruitment options

All the key members of staff have already been contacted and have expressed
willingness to come onboard. Other staff shall be acquired through the key staff or
passing word across.

Training programs

There is no immediate requirement for training. In house refresher training shall be

conducted by Mohamed as and when need arise.

Skill retention strategies

Permanent Employment shall be offered to all key members of staff. Documented Job
Description shall be given to each to clearly outline duties and responsibilities plus Key
Performance Indicator. Staff medical insurance scheme shall be offered after a full year
of successful operations.

Products
Product Description Unit Price

500 ml cartons 24 bottles of 500 ml in a carton Kshs. 260.00

1000 ml cartons 12 bottles of 1000 ml in a carton Kshs. 260.00

1500 ml cartons 12 bottles of 1500 ml in a carton Kshs. 260.00

4000 ml cartons 4 bottles of 4000 ml in a carton Kshs. 260.00

Market position: The products offer high quality, similar to the major brands such as
Keringet/Darsan and priced similarly to the locally produced brands.

Unique selling position: High quality water at low price. Continous and reliable supply.

Anticipated demand: From research findings, a retail shop purchases an average of 5

cartons of water every week. The target market is divided into 12 sub-markets, each
with a minimum of 150 retail shops. This makes a demand of 9,000 cartons (150 x 5)12
every week. Further demand is anticipated in the neighbouring counties; Kilifi, Kwale,
Taita Taveta, Lamu & Tana River.

Pricing strategy: From research findings, the most preferred pricing by most retail
shops is Kshs. 260 per carton. We shall adopt the price of Kshs. 260 per carton as both
market penetration and growth strategy.

Value to customer: Our brand is viewed as “high quality” water in most parts of the
coastal region. The negative part is being “unreliable” in terms of supply due to various
challenges we had before. We need to focus in undoing the negativity by ensuring
reliable and continuous supply going forward. In two to three months, we should be able
to clean our name and paint favourable picture in the market.

Growth potential: Our immediate target market offers growth of up to 70% within a
period of 1 year. The extended market of the entire coastal region offers growth potential
of up to 300%. We target 70% growth in the first year of operations and 30% growth in
consecutive years.
Innovation
Research & development (R&D)/innovation activities

We plan to redesign our bottles to new and attractive look that not only captures
customers attention, but also provides convenience and prestige. Already ideas are in
mind but thorough market research shall be conducted to include customer’s views
before implementation.

We also intend to come up with innovative ways of enhancing our channel of

distributioin, sales promotion and brand visibility. These shall be achieved through
continuous brainstorming within the team and objectively analysing feedbacks from
customers.

Intellectual property strategy

We intend to register “Zam2 Cool” as our brand and trading name.

Insurance
Product liability: We intend to take Product liability to cover us against any legal action
taken out as a result of injury, damage or death from your product. This shall be done
before beginning our operations.

Business assets: Before beginning operations, we intend to insure our business assets
against fire, burglary, theft or damage. The assets include all machinery, vehicles,
furniture, computers and accessories.

Staff Medical Scheme: We plan to provide medical insurance scheme to all our key and
permanent employees after one full year of operations. We believe by then we will have
good enough cash flow to implement and sustain the same.

Risk management

Risk Likelihood Impact Strategy

Long rains and cold Likely during the Penetrate into the semi
weather condition months of April, Medium arid areas of coastal
May, June & July regions e.g Garsen, Hola,
Bura etc
Risk Likelihood Impact Strategy

Turnover of our key staff Unlikely High Keep CVs of other

experience and successful
experts within the
industry. Also take on
board young professionals
fresh from colleges to
empower and nurture
tallent

Shortage of Supply of raw Highly Likely High Partner with at least three
materials from certain different suppliers for
suppliers. every items supply

Power outages Highly Likely High Purchase and install

standby generator to
automatically take over the
load should there be power
outages

Legal considerations
Maintaining clean and healthy environment at the production hall is mandatory. This has
already been taken cared to ensure no loose ends are left. All staff in the production shall
have white kitchen like uniforms with caps. Washing of hands and feet with medicated
detergent is a must before entering production hall.

Operations
Production process

Water Processing shall be automatic through the Reverse Osmosis Plant. Filling and
Labeling shall be done manually in accordance with health and KBS standards. Final
packaging Shall be automated. The plan is to also automate filling and labling in 3 years
time.

Suppliers

SUPPLIER NAME ITEMS TO SUPPLY PHYSICAL LOCATION

Natures Ltd Preforms, Bottles, Polythene Mombasa

Fineline Industries Preforms, Bottles, Polythen NAIROBI

Startpac Mombasa Ltd Lables Mombasa

Plant & equipment

Equipment Purchase date Purchase Running
price in Kshs cost

Printer/Scanner/Router for Internet Immediately Minimum

50,000.00

6 Heat Guns Immediately Minimum

90,000.00

2 Laptops Immidiately Nil

70,000.00

1 Server with Tally accounting Already bought 50,000.00 Nil

package

Machinary in Stock
Item Unit price Quantity Total cost

Semi Automatic Pet Blowing Machine 2,500,000 1 2,500,000

Reverse Osmosis Plant 1,500,000 1 1,500,000

Machinary Required
Item Unit price Quantity Total cost

Carton Making Machine 1,500,000 1 1,500,000

Trucks – 7 tonners 1,500,000 2 3,000,000

Standby Generator – 6 Kva 500,000 1 500,000

Technology (Software): Tally as an accounting package is required to manage stocks

(raw materials and finished products), accounts and finances. Cost price is Kshs. 200,000

Trading Periods: Pick trading periods are between August and March. Low trading
periods shall be during cold and raining season – April to July. 12 sub-markets are
created, each with a minimum of 150 retail shops. Research findings indicate that each
retail shop sells an average of 5 cartons every week. With 150 retail shops per sub-
market, a demand of 750 cartons is guaranteed. Our mid-term target is 750 cartons from
each sub-market. Probability of hitting the set target is 100%. During low trading period,
new markets shall be opened in semi-arid areas of coastal region, e.g Tana River.
Research and experience show that during low trading period, sales drop by about 40%.
This shall be compensated with sales in semi-arid regions.

Communication channels: Our customers are expected to communicate with us

through mobile phones, which we shall have. In addition, we shall have box number and
e-mail addresses for ease of communication with suppliers and customers.

Payment types accepted: Payment shall strickly be cash on delivery.

Credit policy: No credit terms.

Warranties & refunds: Our water shall have 12 months life from day of manufacture
till expiry date.

Quality control: We have invested in a PH meter as part of our production process to

control quality of output. This shall be checked on daily basis to ensure all our output
water is of high quality. In addition, we shall do overhaul servicing of the water
processing plant once in every quarter as required by the supplier to ensure our filters
are in acceptable standards at all times.

Sustainability plan
Environmental/resource impacts

Waste water from the Reverse Osmosis Plant can impact the environment if not managed
properly.

Community impact & engagement

Noise from running machines can impact the community.

Risks/constraints

No risks/contraints expected.

Strategies

We have created underground piping system to connect the plant waste water output
with the local drainage system such that all waste water flows swiftly into the
underground drainage system.

The factory is strategically located in an industrial area with very minimum or no human
habitat. This is to ensure that any noise from the machines does not impact the
community.

Action plan

Sustainability milestone Target Target date

Underground piping to connect waste water to 100% reduction done

the local drainage system

Factory located in industrial area to manage 90% reduction done

noise pollution

Purchase fully housed standby generator with 70% reduction Sept. 2015
silencer.
The Market
Market research
Comprehensive market research was done in July 2015 to establish that Mombasa
County has in excess of 4,000 retail shops and over 2,000 eating places in a form of
kiosks, cafes, hotels and restaurants. From practical experience, it was observed that a
retail shop purchase an average of 5 cartons of water every week. This means there is
market for over 20,000 cartons every week from retail shops only. Further demand for
the same comes from eating places.

Further market is in the neighbouring counties such as Kwale, Kilifi, Taita Taveta, Lamu &
Tana River. We plan to venture into these markets after 6 months of operations.

It was further established that there are 12 shipchandlers companies supplying bottled
water to ships at an average of 2000 cartons every week. We plan to tap into this market
after we have built solid financial muscle because terms for this market are strickly 60
days credit.

Market targets
Our immediate target market is Mombasa and its Environs. In our first three months of
operations, we target to produce and sell 900 cartons of water daily making weekly
target of 5,400 cartons and monthly target of 23,400.

From the fourth month we shall increase our production and sales targets to 1100
cartons dairly, making weekly target of 6600 and monthly target of 28,600.

In ten months time, we shall produce and sell 1500 cartons everyday, making weekly
target of 9000 and monthly target of 39,000.

Below are the details of our immediate target market:-

Environmental/industry analysis
There are 6 local bottle water producing companies in Mombasa County. Three are
serious players while the other three are shoudy. From the three serious companies, two
focus mainly in supplying to big hotels and lodges. The retail shops market is left mainly
to the shoudy companies.

Customers
Customer demographics

The overall customer base for water business in Mombasa and its environs include, retail
shops, wholesale shops, local eating places, established cafes, restaurants and coffee
houses, clubs and casinos, tourist hotels, ship chanders companies and local water
venders.

Key customers

Our key target customers are retail shops and local eating places. The recent research
established that there are over 2,000 retail shops and over 1,000 local eating places in
Mombasa and its environs. The research also founded that each retail shop purchases
and average of 5 customers of water every week. We have divided the market into 12
sub-markets, each with a minimum of 150 retail shops. That provides a weekly demand
of over 11,000 cartons from the market. Each of our trucks will target one of the sub-
market every day to sell 750 cartons, 6 days a week (Monday to Saturday). That makes
a total sales of (750 x 2 trucks) x 6 days of the week = 9,000 cartons a week. Local
eating places will provide us extra selling points to not only fill up gaps in attaining daily
sales targets but also cultivate relationship necesary for future expansion.

Customer management

Our two sales persons will build a data base of all our customers which shall contain
names of the shops, contact person (owner & shop attendant), telephone numbers and
number of cartons sold. Part of the responsibility of our admin person is to regularly call
the customers to get their feedbacks and recommendations on how to service them
better. In addition, the admin person will also ask for orders from those whose last
purchase was over a week ago.
 ADNARA KENYA LIMITED BUSINESS PLAN - 2015

S.W.O.T. analysis

Strengths Weaknesses

1. Complete modern RO machine that produces high quality 1. Luck of 4000 ml product to complete our product like and lock
water. the competition from our market share. We intend to introduce
2. Our own inhouse bottle producing machine that wil not only the the product after 6 months of successful operations.
guarantee supply but also at a reduced price. 2. Luck of filling and labling machine to automate this part of
3. Our own carton making machine that will make clean and production and hence triple the speed of the entire production
solid cartons and at a fast rate. process. We intend to purchase these machines after 3 years of
operations.
4. Two best sales persons in the industry.
3. Capital to not only kick start the business but also purchase
5. Mohamed’s vast knowledge and experience in business critital assets such as standby generator, carton maker machine
management and business development. and two sales & delivery trucks. We intend to solicitate bank
6. Brand that is already known in the market associated with loan.
good quality of water.

Opportunities Threats

1. A big market that keept on growing. 1. Price war from the comnpetition. We shall remain focus in
2. Semi arid part of the market that provides us with a cussion maintaining quality of our water and reliability in supply and
to still maintain our sales targets during low trading season. delivery of our products.

3. Tourism Industry that is picking up and hence create a boast
to the overall economy of our target market and by
extension give consumers more purchasing power.
4. Expansion to other neighbouring counties such as Kilifi,
Kwale, Lamu and Tana River.
5. Selling bottles to other companies at a profit.
6. Venture into dispenser market and leverage on the corporate
network that Mohamed has to build up sales.
2. Raining and cold season between April and July every year that
create low trading period. As from February we shall widen our
target market to reach out to the neighbouring counties and
hence increase the chances of maintain our sales targets.
3. Accidents both in the factory and our trucks on the road, theft
and fire. We shall insure all our factory machines and fittings,
trucks, furnitures and computers. We have already fitted fire
extinguishers at all strategic places within the factory and the
same shall be done to the trucks.

Page 16
 ADNARA KENYA LIMITED BUSINESS PLAN - 2015

Competitor Analysis
Competitor details

Competitor Established Size Market Value to Strengths Weaknesses

date share (%) customers

Natures 2002 Over 30 About 35% convenience, Financial strength, Fleet Expensive brand, focus
staff quality, popular of sales and delivery in high end market like
4000 brand vehicles, Own bottle tourist hotels etc
cartons daily making machine

Pearl 1985 Over 20 About 25% Quality and Experience, Big Expensive brand, focus
staff Popular brand automated factory, in high market only
3000 financial strength, own
cartons daily bottle making machine

Rehana 2010 Over 10 About 10% Low price, Being a Somali hence Low quality, focus
staff 1000 Somalis buy from strong in Somali market mainly in selling to
cartons daily Somalis fellow somalis

Savannah 2014 Less than 10 Less than Low price, Being a Somali hence Low quality, focus
Less than 10% Somalis buy from strong in Somali market mainly in selling to
700 cartons Somalis fellow somalis
daily

Warda 2012 About 5 staff Less than Low price Offer credit terms Low quality, has huge
Less than 5% debtors list
500 cartons
daily

Page 17
 ADNARA KENYA LIMITED BUSINESS PLAN - 2015

Advertising & sales

Advertising & promotional strategy – First 12 months

Planned promotion /advertising type Expected business improvement Cost Kshs. Months

Reduce our price per carton by Kshs.10 as We should be able to realize our daily sales target of 900 234,000.00 1st three
re-entry growth strategy cartons by our third month of operation monthly months

Print stickers with our brand logo, written Enhance brand visibility 50,000.00 7th month of
“Zam2 Cool water sold here” and stick operation
them outside all our customers premises
(retail shops)

Print T-shirts and caps as give aways to Enhance customer loyalty 100,000.00 10th month of
our loyal customers operation

Sales & marketing objectives

We shall have 2 sales teams, each with an experience Sales Executive, Driver & Loader. Each team will have a 7 tonner truck to carry
their daily stock/target. Below find details of our daily and monthly sales targets:-

Page 18
 ADNARA KENYA LIMITED BUSINESS PLAN - 2015

Unique selling position

“High Quality Water at a Low Price” summarizes our uniques selling preposition. Our target market, which is retail shops mainly purchase
low quality water due to their low price. We shall offer this market with high quality water at a low price and assure them reliable and
continuous supply. This will give us an edge over the competition.

Sales & distribution channels

Channel type Products/services Percentage of Advantages Disadvantages

sales (%)

Direct sales to shops 500 ml cartons 100% of our daily Sales truck and management is Fuel intensive
with a truck 1000 ml cartons sales targets of up done from one central point, Require a number of big trucks
to 1500 cartons which is the main office.
1500 ml cartons Truck maintenance cost
We shall get feedback directly
4000 ml cartons from customers
Maximum revenues

Wholesalers and 500 ml cartons Additional weekly Reach out to markets toutside Sell at a whole sale price,
Distributors 1000 ml cartons sales of 1000 Mombasa county e.g Kilifi, hence reduces revenues
cartons Kwale, Lamu, Taita Taveta & Most wholesalers & distributors
1500 ml cartons Tana River. require credit terms which
4000 ml cartons creates extra hassle of debt
collection

Direct delivery to 18000 ml of tubes for Additional weekly Separate and additional revenue Require additional investment
offices and homes dispansers sales of 1000 stream. Crediit terms hence requires
tubes Contractual business financial mascles

Direct sales to 1500 ml cartons Additional weekly Separate and additional revenue Credit terms of up to 60 days
Shipchanders sales of 1000 stream. hence require financial mascles
cartons Contractual business

Page 19
 ADNARA KENYA LIMITED BUSINESS PLAN - 2015

Action Plan

Milestone Date of expected Person responsible

completion

Carry market research in Mombasa County to establish the demand for 31st July 2015 Mohamed and 8 hired reseach
bottled water in Mombasa County and activities of the current major players assitants

Prepare a comprehensive Business Plan 10th August 2015 Mohamed

Solicitate for a Bank Load as Capital Injection to the business 15th August 2015 Mohamed

Begin preparation – Have machines serviced, purchase and install standby 1st September 2015 Mohamed
generator & carton maker machine, purchase 2 trucks for sales, recruite staff

Begin Operations – Production 26th September 2015 Production Team

Begin Sales 28th September 2015 Entire Team

Page 20
 ADNARA KENYA LIMITED BUSINESS PLAN - 2015

The Finances
Key objectives & financial review
Financial objectives

Monthly Sales Targets: 39,000 cartons

Monthly Revenue Targets: Kshs. 10,140,000

Monthly Net Profit Targets: Kshs. 1,800,000

Business Start up Cost: Kshs. 11,531,120

Finance required

Business Start up Loan Required: Kshs. 11,531,120

Source of Loan: Bank

Monthly Loan Payment Plan: Kshs. 500,000

Loan Payment Period: Kshs. 30 months

Assumptions
The financial tables on the subsequent pages are based on the assumptions listed below:

 Bank Loan will be given by the beginning of September – 2015.

 Business Operations begin as from 1st October 2015

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 ADNARA KENYA LIMITED BUSINESS PLAN - 2015

Start-up costs

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 ADNARA KENYA LIMITED BUSINESS PLAN - 2015

Balance sheet forecast

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ADNARA KENYA LIMITED BUSINESS PLAN - 2015

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ADNARA KENYA LIMITED BUSINESS PLAN - 2015

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 [Business Name] Business Plan [YEAR]

Supporting documentation
Attached is my supporting documentation in relation to this business plan. The attached
documents include:

 Financial Statements and details (breakdowns)

 Business Registration Certificate

 VAT Registration

 CV of the Senior Director and Managing Director of the Business

 Photographs of the existing machines and the Factory set up

 Market Research Questionaire

 Summary of Market Research Findings and Conclusions derived

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