CHAPTER ONE

1.0BUSINESS DESCRIPTION

Poultry farming is one of the most lucrative businesses in Uganda and the world at large.

The increasing demand for chicken (call it chicken meat) and eggs resulting from the growing
population and townships across the country provides an opportunity for new and existing
farmers to cash in on this enterprise.

Apart from earning from your poultry business, eggs and chicken can provide proteins to your
family members. The enterprise can also be resourceful in providing manure to your other
agribusiness enterprises.

Those with limited land in towns, they can sell the manure which also lucrative.
1.7.1 BUSINESS OBJECTIVE

 Contract all potential customers in Lugazi Town and its environs.

 Produce the best quality broilers and layers for customers.

 Attain customer satisfaction through timely deliveries of chicken products.

 Set standards for employee effectiveness and efficiency.

1.7.2 BUSINESS GOALS

 The company aims to be a market leader by setting the standards as a pioneer in the area.

 To increase market share by opening up into other markets.

 To create a good public reputation by maintaining premium quality and reliable services.

1.8 THE ENTRY AND GROWTH STRATEGY

1.8.1 THE ENTRY STRATEGY

Since this is a new business in a new market the firm intends to penetrate and gain
acceptance in the target market through:

 Personal selling thus approaching the major target customers at personal level and
negotiating.

 Advertising through the media that is the radio, television and newspaper.

 Running promotions through giving discounts for a specific period to attract potential
customers.

 Producing quality products at competitive prices.

1.8.2 THE GROWTH STRATEGY

The business intends to grow and to do this the owners will undertake the following measures:

 Invest more in the business by opening up branches in Lugazi town, Nyenga and Njeru.

 Diversify production of other chicken products, and educate people on the importance of
each one of them.

CHAPTER TWO

2.0THE MARKETING PLAN

MARKETING PLAN

2.4.1 Market Research

The proposed business will be in the farming Industry which is fast growing. This fast growth

has been attributed to the increased need for chicks and feeds at affordable price in the market

coupled with the trendy nature of the target market.

2.4.2 The Key Characteristic of the Industry

The technology mostly used in the industry is labor intensive rather than capital intensive. The

technology employs simple machinery at some point when need arises. The proposed business

plans to initially employ only 3 members of staff. A feasibility study I conducted revealed that

for one to enter into the industry, the entrepreneur will require at least basic capital of

UGshs.3,500,000 for a small size Salon business. The industry experiences peak times during the

Months of April, August and December. There is usually a business boom during these periods

due to increased demand such as schools, Christmas Holidays, Easter Holidays that accompany

these months. Weather is also a contributing factor in the industry. Since during hot season the

vegetables are not available hence many people opt 4 chicken.

A basic research done before starting the business included the following:

 The proprietor visiting a number of existing chicken firms.

 Identifying the chicken firms within the vicinity and sought to find out their locations.

 Visiting farmers in various chicken rearing firms around the town to find out what clients

wanted and what challenges they faced in delivering services.

 Seeking to know the variety of goods and services available in the market.

 SWOT Analysis
 Strengths Weaknesses

 Convenient Location  Staff turnover

 Well resourced in equipment.  Reliance of some skilled staff

 Inviting and tasteful ambience  Being on third floor of building

 Reputed for good stylists.  Lack of a proper pricing regime.

 Extended hours of service.

Opportunities Threats

 Open new branches at other  Others with same level of ability will

areas. open the same service, since this

 Join with other party at business model is easy to replicate.

franchisee form business.  The manager’s ability is what will

 Start cross breeding and determine growth.

importation of  Poaching of staff by other firms.

High quality chicks.

2.1 POTENTIAL CUSTOMERS

The target market for the firm’s services includes the following:

 Business enterprises including supermarkets, individual buyers, schools and institutions,

hotels.

 Both the small scale and the large scale agricultural farmers in need of manure.
  Hospitals and travelers.

There are many potential customers for the company’s products in Lugazi district. These
customers are already being served by other competitors of the firm who are companies from
other towns and the market coverage by the competitors is 70% and the rest is covered by the
small scale subsistence farmers. The firm intends to capture these clients by offering quality
products at competitive prices and these will change the market coverage of uniform providers.

The proposed chicken rearing business will have several advantages over the main competitors.
The main advantage will be reliability due to ease of contact between the customers and the
company. The other advantage is that the company will be catering for transportation of products
to the customers premises.

2.2 MARKET SHARE

As the population in Lugazi and Jinja continues to grow every day, the market size for the
chicken has also been growing proportionately. The chicken rearing business has grown over the
years with many firms opening shops in urban areas. Many hotels, schools, churches, hospitals
are being opened every day thus providing a wider market for the business. This clearly shows
there is great potential for growth in this community.
Approximate total number of firms in the industry………. 10 000 approx.

Approximate total number of firms within the Lugazi District ……18 approx.

 Market trends
 Target market

The apparent change in attitude by the Ugandan population has led to an increased growth in

chicken industry by an approximately 20% in 2 years with promise of more growth to come.

Improved economic activities also means more Ugandans can afford to pay for the goods and

services on offer. The industry is projected to expand by approximately 10% in the coming

year. With a promising economic revamping, the prospects are high as the country gets back

to business as usual

Target market

The business will target clients who will want chicken and chicken products for various

occasions. These will mainly be hotels, schools, hospitals, offices, homes among others. The

business will not discriminate on age, religion, education or even the ethnic group. The clients

will also be considering convenience. This is supported by the virtues that, majority of potential

clients are have high profile businesses in town and therefore would prefer to pay relatively high,

but get quality, efficiency and convenient goods and services. In addition, we will be expecting

more clients at the end month than any other time since majority of our potential clients prefer

treating themselves least once a month, especially when they have enough money. This is also

supported by the fact that, our services will be bought on cash bases, and especially during the
initial years of operation. Approximately 10,000 people are expected to require my goods and

services annually.

2.3The Competitors

At the moment, there are 3 major competitors in Lugazi town council. The the competitors share

the market as follows:

A). Ntaate chicken rearing firm – 24%

b). L.L.G enterprises – 15%

c). Bwavu mpologoma farmers -30%

Comparing the sizes with the competitors the business will enter the market as a medium sized

business. The initial investment will be Ug sh. 52,500,000. This will create room for expansion.

In terms of quality, the firm will endeavor to offer the best. We rate our competitors using the

likers descriptive scale as follows:

Best Ntaate L.L.G Bwavu

chicken mpologoma
Performance 5 3 4 3
Quality 5 4 3 5
Efficiency 5 3 3 5
Reputation 5 5 2 4
After sales 5 4 4 5

Service

Key

Very Low – 1, Low - 2 , Moderate – 3, High – 4, Very – 5.

2.1.1 How best chicken products compare with the competition

Our concern is not only on what we offer but how we offer it. The following approaches will

make us exceptional from the competition:

 Reasonably affordable prices

 Provide exceptional service to clients that levels ad impressions.

 A relaxed atmosphere at our facility atmosphere by creatively using the interior

decor.

 Proper management of internal finances and cash flow to enable upward turnover

growth to effectively manage our growth strategies.

 The highly experienced staff with good communication skills will ensure that the

clients are retained.

 A modern technology facilitated by purchases of well modified operating equipment

as opposed to old technology found in other salons.

2.12 Best chicken’s competitive advantage

The nature of the business is very competitive and the fact that the products and services are

common in all chicken rearing firms has heavily relied on the following well competitively

analyzed advantages to remain competitive.

 Loyalty of clients: They are used to the farmers who attends them and

therefore they are repeat clients. In this way they introduce others. 70% of

the clients are loyalty while only 30% make up one time visits.

 Skill of the stylists: The business depends on knowledge and skills carries

the day.

 Location: The firm is located in a central area and within reach of most

people needing the services.

 Ambience: The firm is spacious and with an inviting interior.

 Equipment: The firm is well equipped with state of art equipment allowing

precision in service delivery.

 Client service: Service is personalized and follow up made to clients visiting

for the first time. Feedback is handled promptly.

 Cleanliness: The firm is very clean and neatly arranged.

 Extended working hours from 6am – 9pm

2.4 Pricing strategy

Best chicken will calculate its price based on resources used to attend the client. These resources

will largely comprise of both time and the tangible resources. However, before we set the price,

we will consider the price of the competitors, since we will make the price to be competitive to

attract more clients. We will be selling our services to our clients on cash basis. However, after

the first year of operation, we will be in a position to identify those clients who will be loyal to

our business and will consider giving them discount on what we charge them. We will also

consider giving after sales service to our loyalties. The price, however, will be made fixed to all

clients and will be displayed at the reception area for accountability.

2.5 Promotion and Advertising Strategies

Advertising Strategy - BEST CHICKEN will make use of different methods of

advertising. These methods will mainly be the printing media where the cost and

frequency of usage is as tabulated below:

Frequency Cost per Annum Ug shs

Flyers 4 175000
Brochures 3 315000
Business cards 2 210000
Website links Bi-annually 175000
SMS adverts Monthly 105000
Discounts Monthly 420000
Total 1400000

Through the flyers, business cards and the brochures, the image of our services will be portrayed.

The advert will create a picture in our clients mind that, our services are of high quality, unique

and low priced. The brochure will also illustrate an excerpt of a chicken that is available at our

place. The business will be advertising after every four months, while the flyers will be after
every three month. This arrangement will enable us to be advertising the business throughout the

year without duplicating the advertising costs. We will be in a position to judge on the

effectiveness of the advert through the number we receive in a particular month after relating it

with the method of advertising used. Beside increased sales volume, we will evaluate the number

of clients returning to us for more services as well as rate of enquires for our services.
2.18 Marketing Budget

The business has projected a budget to further create awareness and intensify marketing to

rightfully assert their position in the competition. They have deliberately made a provision for

Ug shs.87500 for advertising every month. They also have a projected budget for 3 years in

Sales, Marketing and Advertising as Ug shs.13860000, 15246000 & 16770600 for year 1, 2 & 3

respectively.

2.19 Recommendations

After visiting the firm and getting details of how they simply price their service purely on the

basis of how the competition is offering, we came up with the pricing strategy which we have

recommended to them and they are using. We also recommended the recording of the actual

costs as well as advertising and promotions as follows;

 Pricing strategy: There is need to compute the pricing based on actual costs rather than

using competitors prices and simply adding a mark up.

 Actual costs should include costs of the chicken buying price

 Advertising and promotions: The proprietor should consider a website of her own,

marketing weddings and ceremonial days with discounts for large number of clients.
2.5 DISTRIBUTION STRATEGY

The company will have some casuals under the leadership of the marketing executive to carry
out the distribution of its products to the clients. The company will carry on the cost of
distributing the products to clients as a means of attracting more customers and building
customer loyalty. The company will ensure delivery of products before the agreed date of
delivery in order to win the customers trust.
CHAPTER THREE

3.0 ORGANISATIONAL PLAN/MANAGEMENT PLAN

3.1 THE ORGANISATION CHART

The organizational chart below shows the hierarchy of authority within the firm. Although
the Managing Director is at the top he has equal authority to the functional heads because of
the ownership structure of the firm

3.2 THE MANAGEMENT TEAM

3.3 OTHER PERSONNEL

3.4 TRAINING DEVELOPMENT

3.5 REMUNARATION EVALUTION AND PROMOTION

3.6 THE SUPPORT SERVICE

CHAPTER FOUR
4.0THE OPERATIONAL PLAN/PRODUCTION PLAN
The company’s premises will be rented for Ug shs. 1400000 per month. The premise owner
requires a 6 months deposit before entering the premises. If the mortgage terms are available the
business is planning to acquire the premise on mortgage terms. The premise has been partitioned
into 4 rooms which include:

 Managers’ office

 Cashiers office

 Public relations office

 Production area
The operational facilities will include the following:

ITEMS SUPPLIER COST(pe UNITS INSTALLAT TOTAL COSTS

S r unit) REQUIR ION COSTS
ED
Chicken Local 175000 12 50000 2150000
racks carpenter
Layers Ken chic 350000 3 - 1050000
Marsh agencies.
Broilers UGA chic 420000 5 - 2100000
marsh agencies
Watering BIYINZIKA 70000 10 - 700000
cans
Sweeping B.B 17500 20 - 350000
Brooms Supermarket
Floor J,S 7000 10 - 70000
Mopes Supermarket

Basins Supermarket 3000 20 - 60000

A Agro vet 50000 1 - 50000

spraying shop
can
TOTAL