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BUSINESS PLAN

FOR

RAMADHAN HARDWARE (CEMENT STORE)


CONTENTS

Executive Summary........................................................................................................................................................... 2

INTRODUCTION TO RETAIL........................................................................................................................................... 3

BASIC INFORMATION....................................................................................................................................................... 3

Mission :............................................................................................................................................................................. 4

Vision:................................................................................................................................................................................. 4

Industry.................................................................................................................................................................................. 5

Business Description........................................................................................................................................................ 6

Intended Market................................................................................................................................................................. 8

MARKET ANALYSIS............................................................................................................................................................ 9

Business location............................................................................................................................................................. 10

Human Resource.............................................................................................................................................................. 13

Competition....................................................................................................................................................................... 14

Pricing :............................................................................................................................................................................ 17

Promotion....................................................................................................................................................................... 17

Communication Mix........................................................................................................................................................ 18

Financial Analysis............................................................................................................................................................ 20
EXECUTIVE SUMMARY

This report consists of the business plan for the opening of a new retail(building materials) store.
The motive of the opening of the retail(building materials) store is the knowledge behind it. Retail is
one of the very growing sectors in Kenyan economy. An economy store catches the customer even
we need to serve the best in the best manner we automatically get the success in a retail business.
For starting up a retail(building materials) store a huge cost will be required for the operation
facilities and purchase of items.

INTRODUCTION TO RETAIL

The most promising and booming industry of future is retailing. AT Kearney, a well-known
international management consultancy, recently identified Kenya as the the most attractive retail
destination globally from among thirty emergent markets (2007). According to a Knight Frank
survey, Kenya ranks fifth amongst the 30 emerging retail markets in the developing countries.

BASIC INFORMATION

NAME OF BUSINESS:BAKARI OWUORI RAMADHAN

PHYSICAL ADDRESS: MUMIAS TOWN BEHIND BARCLAYS PLAZA OPPOSITE LWALI GUEST
HSE.
POSTAL ADDRESS: P.O. BOX 1001 MUMIAS 50102 KENYA
CONTACT PERSON: SELF
TELEPHONE: N/A
CELLULAR: +254708321912
EMAIL: bakari.ramadhan@ymail.com
WEBSITE: n/a
MISSION :

Mission and Vision

Caring is in our instinct and customer satisfaction is our habit. To provide quality products of
wide range and variety under one roof at reasonable cost.

VISION:

To open Dailize in all major parts of kakamega. To be retail shop leader in Kakamega by 2015.

INDUSTRY

This is product based industry.

1. CEMENT
I would like to be a stockiest of Bamburi Portland cement in kakamega county. Competitors midland in
kakamega town however in southern parts covering matungu , mumias, butere,and khwisero
constituencies of the county does not have a stockiest of the cement
Capital required is Kenya shs.3millions
BUSINESS DESCRIPTION

The concept of our business is to provide quality BUILDING MATERIALS products of all known
brands, staples of wide range and variety building material products under one roof at reasonable
price with exciting offers and value added services to the customers.

There to be considered when wanting to start our own business. We will consider running retail
business in partnership. It will be limited partnership. We will be signing a legal partnership
agreement in the best way to go about it. Business Formation are so many things

INTENDED MARKET

All lower middle class, middle class, upper Environment the class, lower upper class segment of
society, will be our potential customer. In todays society people want to get variety of products
under one roof, so that they dont need to go to ten different shops for the required things. Dailize
provide wide variety and range of daily products under one roof at reasonable price and value
added services.

MARKET ANALYSIS

retail(building materials) store in kakamega. This area is densely populated. PER CAPITA
INCOME :- It is one of the very important factor which one needs to analyze, this provided us with
information that we need to target middle class and lower upper class.

AGE MIX :- It is also one of the factors that which age gender are maximum in population so we can
get up with the stock in the same manner. BUYING BEHAVIOUR :- This factor helps us to forecast
the total sales of the store & the stocks we need.

BUSINESS LOCATION

We are looking to open a new retail(building materials) store in Kakamega. A space of 1000 square
feet at main road, Sodala. Reason for opening the retail(building materials) store in this location
are : Densely populated area with high average of nuclear families. No retail outlet, departmental
store present in this area or any nearby area up to 1.5 kms. The decided location has a good foot
count. Space for parking available.

Business Layout 25 / 40(1000 square ft)

Cement

Customer desk

Entrance

Buiding materials

Offers display

Counter

BUILDING MATERIALS

Counter

Store Layout

Special Offers

Cement

Pain

Steel bars

BUILDING MATERIALS Products


Cement

Cash Counter

HUMAN RESOURCE

For our store there should be One store manager One assistant manager Staff Supervisor 2
Staff 5 Guard - 2

COMPETITION

Competitors midland in kakamega town however in southern parts covering matungu , mumias,
butere,and khwisero constituencies of the county does not have a stockiest of the cement
My in price with other store in the market, but I will not meet discount store prices. I will shop
competitors regularly and make sure that I am never more than 15% higher than the lowest price in
the market.

Competitive Advantage store will be competitive

PRODUCT MIX

Marketing

BUILDING MATERIALS Products of different known brands like bamburi etc) of wide range (from
economical price to premium price) and variety.

Pricing :

The pricing strategy will be mixture of Pricing below competition, Psychological pricing, multiple
pricing and discount pricing.

PROMOTION :
The mix of public relations, advertising, educational programs and other tools the company will
employ to drive demand for its products or services. For promotion and advertisement the best way
is the print media and the electronic media and time to time some promotional activities such as
sale festival, win prizes over billing size, free items on every purchase made of 500, 1000.

COMMUNICATION MIX

Medium Catalogs/pa mphlets Direct mails Display Internet Local newspapers Word of Mouth Flyers
Reach Individual Individual Cost Moderate Low Market Mass Personal

Local Low In-store Exceptionall Moderate Mass/special y broad interest Broad Moderate mass

Individual Local

Low Low
Personal Custom

BEST SERVICE:
Applicable to BUILDING MATERIALS Products.

In this we will focus on customer intimacy based on personalized relationship and individual
responsiveness that saves customer shopping time and anxiety. Include the specialized products to
meet the needs of individual customers. Lowest Price : Applicable to building materias . Leads to
price saving and efficient shopping experience. This will be achieved by elimination of operational
waste and cost.

Added Value StrategieFinancial Analysis

Financial analysis of this plan has been done on the

basis of other retail(building materials) store operating in kakamega town . As we are not in
manufacturing or production industry, it will not be feasible to calculate the Breakeven point due to
product mix, rather it can be said on the basis of market potential and projected budget that the
investment will be recovered within two years and around 20% profits will be made of total
investment. The projected budget statement.