EXECUTIVE SUMMARTY

Maendeleo poultry firm is located in Narok town. It is a startup business which aims at
providing poultry products to the clients within Narok. It also aims at rendering quality products
and services to the customers. Our goal is to maintain a friendly, fair and creative environment
which respects the diversity of ideas and handwork.
Also we intend to offer affordable prices to meet the demand of our clients. We have
knowledgeable employees who are friendly and customer oriented.
Since our business is located in a distinct commerce center which is sounded various business
such as hotels, institutions among others, we intend to supply chicks and eggs to our clients.
Maendeleo business firm also aims at adopting different market strategies to beat the
competitors. The strategies include; door to door delivery, enhancing open door policy
communication among others. SWOT analysis will be used to analyze market segments. The
business will also adopt marketing strategies such as promotion, price, production and place
strategy.
In production, we will buy chicks which will take 4-6 months to grow to maturity and some trays
of eggs to ensure continuity. Since the business is starting from scratch, we will buy some
materials to set up the poultry house. We also need tools and equipment such as incubator, egg
handlers water troughs among others. Basic requirements for the maintenance of poultry such
as feeds and drugs is also vital in the operation of our enterprise. Technical personnel such as
cleaners are also required in the operation of our enterprise.
The enterprise will be managed by, a manager, a supervisor, an accountant and some sale
personnel on behalf of the owners. Management will set policies and procedures that will
ensure smooth running of the business.
The financial management will ensure proper keeping of financial records. It will also enhance
sound management of enterprise’s capital, accountability and transparency. The fund to
manage and run the enterprise will be obtained from savings, grants and loans.

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1.0 Business description.

Address of the firm.

The firm address is as follows;
P.O Box 123-20500
NAROK.
Email:maendeleopoultry@gail.com
Tel:+254714130287
Maendeleo poultry firm is a partnership business owned by five members who have joined
hands to establish an enterprise.
Halima Adan- a teacher at Narok high school
Doreen Odhiambo- county secretary (Narok county)
Daniel Kakai – lecturer at Masai mara university.
Robert Kinyanjui – an entrepreneur in Narok town.
Susan Jillo- teacher at Maasai mara Model school.
The businessis located opposite seasons along Narok-mahi-mahiu road. The members after a
lengthy market research found that there is a gap in the supply of poultry products in narok
town and its surroundings. This triggered us to grab this opportunity by entering into the
venture.
We are starting the business from a scratch and hope to develop it to viability. We will be
dealing in the supply of eggs, chicks and broilers to hotels, boarding schools and supermarkets
within Narok town.
Our goal is to offer quality services to our clients as well as making sound profit. We intend to
be customer oriented business which will value the welfare of our customers through giving
incentives and rewards. Our long term goal is to ensure expansion and growth of the
enterprise.
What makes our business to stand out from other businesses within the town is, the customer
oriented nature of our business such as giving discounts and bonus, door to door services and
ensuring quality services to our customers.

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We are planning to open the enterprise in the first month of January 2019. By the end of 2019
December we hope to have expanded our business and supply to all other towns near Narok.

We will ensure to meet deadlines of our starting points by hiring qualified personnel such
manager, supervisor, accountant and sales personnel.

2.0 MARKETING PLAN

The marketing plan contains the business strategy, the business wishes to adopt, the name of the
business, its mission and the objectives. It also contains the market analysis and the market
segment the business intends to serve. It highlights the competition from the competitions and
how the business intends to meet the competition. Lastly, it contains the way the business intends
to penetrate the industry and the sales forecast of the first financial year.

2.1 BUSINESS STRATEGY

The business name is Maendeleo poultry firm and is involved in supplying poultry products.
The business is set in Narok town. Our mission Providing premium quality services and
products. The business objectives include:

1. Reaching out to new customers

2. Increasing sales by 30% after the first financial year.
3. Giving assurance to the workers and management.
4. All the business practices should ensure the welfare of the birds their health, protection
and their quality

2.2 MARKET ANALYSIS

Narok town consists of approximately 40,000 people. Being a distinct commerce center in the
county it is surrounded by various businesses. It comprises of various hotels since it’s a stopover
for both tourist heading to Maasai Mara and other passengers heading to Nairobi, Kisii and its
environs.

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2.3 MARKET SEGMENTATION

With this there is a desire to set up a poultry firm that supplies eggs and chicken to both the
hotels and wholesalers in the region. This is the main target market of the business though the
business will serve other markets. The markets include:

 Chick buyers
 Personal merchandisers buying eggs in bulk.
 Hotels
 Retail shops

2.4 ANALYSIS OF THE COMPETITION

The competition the business is likely to face includes:

 People who are involved in selling products that the business supplies.
 Stiff competition of new entrants in the business.
 The changing tastes and preferences of consumers in that they may prefer other products
to the poultry products.

2.5 STRATEGIES FOR MEETING COMPETITION

The Maendeleo poultry firm aims at adopting the following strategies to meet the competition
brought forth by their competitors:

 Door to door delivery.

 Establishing direct relations with their customers.
 Joining an internet marketing association to expand their scope. There will also be
communication flow between the business and the customers this will enable the business
to get feedback of their products.
 Product modification in that they are unique in the market.
 There will be frequent training of employees to ensure that they are skilled and in turn
provide quality products and services.

In analyzing the business the business will use the SWOT analysis to identify their:

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 2.5.1 Strengths.

The strengths of the business include:

 Being away from Nairobi there will be need for local businesses to be supplied locally.
 The advanced equipment the business has acquired will ensure that their products are of
good quality.
 The prices are consumer friendly hence the customers will have the purchasing power

2.5.2 Weaknesses.

Every business is not capable of meeting its goals. The weaknesses we may have include:

 Stiff competition from the new entrants into the industry

 Low sales when customers prefer other products.

2.5.3 Opportunities.

The opportunities the business is likely to adopt or advance in future are:

3 Employing skilled laborers hence improving quality.

4 Adopt new technological advances in terms of equipment.

2.5.4 Threats.

These are the problems the business is likely to face in its day to day operations. They include:

 Stiff competition both internally and externally. Internally, from the substitutes to
chicken products while externally from other poultry suppliers either in the country or
externally.
 Diseases that may affect the chicken hence reducing their productivity.
 Low prices from competitors which may lure customers.

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 2.6 MARKETING STRATEGY

The marketing strategy the business will adopt is based on the 4’s.

2.6.1 Product strategy.

Maendeleo poultry will package their products in the following ways:

 The chicken will be wrapped with aluminum foil with a sticker on top. The sticker will
have white and red colors and the name of the business indicated on the sticker. Each
pack will contain one chicken.
 The eggs will be packed in trays with each containing thirty eggs.
 The chicks.

2.6.2 Pricing strategy.

The business intends to use psychological approach in its pricing. Since consumers are now
informed in decision making and being the major source of income for the business the business
will prefer fixing the prices in that there are no chances of bargaining. The prices will be as
follows:

NUMBER ITEM UNIT COST

1 BROILERS 1 799

2 EGGS 1 TRAY 349

3 CHICKS 1 119

The business intends to meet the needs of all its target market. It will therefore seek to use the
penetration strategy which will ensure that the products will be readily be available at fair prices
to its customers.

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 2.6.3 Place strategy.
Maendeleo poultry intends to use different distribution channels to reach its customers. The
methods include:
 Direct selling.
 In the second year the business will set up different chain stores within the county
to reach different markets.
 Selling over the internet.
 Selling through wholesalers.

2.6.4 Promotion strategy.

The business intends to adopt the following strategies
to reach its customers and its potential customers:
 Advertising – through online platforms to reach out to more customers.
 Bonus – for every fifteen trays of eggs one buys they will get half a tray free and
for every ten chicken bought a hundred shillings will be reduced from what
 thecustomer is expected to pay.

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 MONTH 2.6.5 Sales forecast
BROILERS CHICKS EGGS

JANUARY 0 0 10
FEBRUARY 0 10 15
MARCH 0 12 0
APRIL 00 10 0
MAY 00 20 0
JUNE 16 24 15
JULY 18 24 19
AUGUST 48 30 29
SEPTEMBER 30 20 21
OCTOBER 28 18 17
NOVEMBER 50 30 25
DECEMBER 100 40 35
TOTAL 335 238 238

The sales are likely to increase during festivities and when schools are closed. This is because
during holidays and when schools are closed people are in a celebratory mood and go to hotels
for vacations hence the orders from the hotels are will request for more. The sales of eggs and
chicks also increase because of the increased number of people at homes. The sales also seem to
increase while approaching the festivities since people are preparing themselves to celebrate the
festivities.

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3.0 PRODUCTION/ OPERATION PLAN

3.1 PRODUCTION STAGE.

Buying of chicks- the chicks will take 4-6 months to grow to maturity. We will need to buy 20 trays of
eggs to ensure continuity of the enterprise before the chicks mature and 100 chicks. 50 chicks will be
broilers while the 50 will be layers.

5 Trays will be for incubation as the rest will be selling to earn some profit to meet the maintenance
cost. We will be buying each chick at shillings 100 and each tray of eggs at 299.

3.2 Pre-operation cost

S/NO ITEM COST

1 Transport
a Material transport (poultry Ksh 2300
house )
b Transport for site visit Ksh 2700
2 Market research Ksh 3000
3 Construction fee Ksh 4000
4 Printing and photocopying Ksh 500
(Business plan and other
documents)
TOTAL Ksh 12500

3.3 Production requirement

Materials required for setting up the poultry house (to measure 2.5 m high, 2 m wide and 2.8 m long)
are;

S/NO MATERIALS SOURCE QUANTITY UNIT COST TOTAL

1 Iron sheets Pamini 8 650 (8*650)= 5200
Hardware
2 Nails Pamini 1kg (3 inches) 200 (1*200)=200
hardware
3 Timbers Pamini 6 pieces 250 (6*250)= 1500
hardware
4 Fencing posts Narok Timbers 19 150 (19*150)=
2850
5 Chicken wire Pamini 1 roll 1200 (1*1200)=
hardware 1200
6 Door hinges Pamini 4 150 (4*150)= 600
Hardware
7 Door frame Narok Timbers 2 500 (2*500)= 1000

TOTAL KSH 12550

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OTHER REQUIREMENTS

S/NO ITEM COST

1 Insurance KSH 3200
2 Regulatory Expenses i.e. KSH 2600
Licensing
3 Electricity 500
TOTAL KSH 6300

3.4 TOOLS AND EQUIPMENTS

S/NO MATERIALS SOURCE QUANTITY UNIT COST TOTAL

1 Incubator Tuskys super 1 (medium) 12000 (1*12000)=
market 12000
2 Egg Handlers Tuskys super 5 350 (5*350)= 1750
market
3 Water troughs Tuskys super 10 110 (10*110)=
market 1100
4 feeders Tuskys super 10 110 (10*110)=
market 1100
5 Bulbs Tuskys super 3 100 (3*100)= 300
market
TOTAL KSH 16250

3.5 BASIC REQUIREMENTS FOR MAINTENANCE OF THE POULTRY

S/NO MATERIALS SOURCE QUANTITY UNIT COST TOTAL

1 Feeds Narok animal
feeds
a Growers 10kg 130 (10*130)=
1300
b finishers 5kg 110 (5*110)= 550
c Layers mash 5kg 130 (5*130)= 650
d Broilers mash 5kg 130 (5*130) =650
2 Drugs Osutua vet.
a Vaccines 250g 150 (1*150)= 150
b Copper (ii) 200g 200 (1*200)= 200
sulphate
c Dewormers 500g 600 (1*600)= 600
d Prophylatics 250g 150 (1*150)= 150
e pesticides 300g 200 (1*200) = 200
TOTAL KSH 4450

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3.6 TECHNICAL PERSONNELS REQUIRED IN PRODUCTION

S/NO PERSONNELS NUMBER SALARY/WAGES TOTAL

1 Cleaners 1 7000 (1*7000)= 7000
2 Security 1 7000 (1*7000)= 7000
3 Store keeper 1 7000 (1*7000)= 7000
TOTAL KSH 21000

3.7 SEASONAL CHANGES

There are some periods of the year when the business expect a high sales out and sometimes low sales
out. The table below shows the analysis of the seasonal changes.

S/NO MONTHS BROILORS CHICKS TRAYS OF

EGGS
1 January 0 0 10
2 February 0 10 15
3 March 0 12 0
4 April 0 20 0
5 May 0 18 0
6 June 16 24 15
7 July 18 24 19
8 August 48 30 29
9 September 30 20 21
10 October 28 18 17
11 November 50 30 25
12 December 100 40 35

During the low sales period, the enterprise intends to reduce the production of eggs.

It also intends to give more offers throughout the season to attract more customers and to avoid dead
stocks.

3.8 LEGAL REQUIREMENTS

We should adhere to legal requirements such licensing, high hygienic condition for our poultry and strict
our business to the line of poultry only, to avoid ultra-vires.

We intend to offer quality serves to our clients.

3.9 SUPPORT SERVICES

The income from the business sales should be saved in the business account that we intend to open
with Equity Bank, Narok Branch.

We will also acquire insurance cover for our chicks for the purposes of safety in case of unpredicted
incidents. We will hire a security officer who will ensure the security of our chicks.

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4.0 Management plan

The management will inolve the following people who will ensure the smooth running of the enterprise:

1. Christopher Odhiambo- manager.

2. Kioko kithembwa – supervisor
3. Guyo Godana – accountant
4. Irine Nyiva- sales person

Organization organogram

MANAGER

SUPERVISOR

ACCOUNTANT
SALES
PERSON

4.1 Management control system

We will develop the following policies to ensure a smooth running of the business activities;

 Communication policies – we will encourage open communication channels to ease

communication flow which will ensure the enterprise viability.
 Customer welfare policies- this will help the enterprise to retain existing customers and attract
more potential customers.
 Workers welfare polices- this policy will help to retain and motivate our staff.
 Production control policies- this policy will help the enterprise to verify the number of sales thy
enterprise makes in a month to enhance accountability and transparency.
 Budgetary control policies- this policy will help in auditing books of accounts after a given period
of time to check liquidity and profitability of the enterprise. It will also assist in hiring skilled
personnel who will keep the books of account and manage cash flows.
 Public relations policies- the policy will enhance a good reputation for the enterprise with the
surrounding community.

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  Debt policies- the total debts per month should not exceed ksh 5000, to avoid collapse of the
enterprise.

5.0 Financial plan

5.1 pre-operation costs.

This involves the costs which are incurred before the actual operations start. They include;
S/NO ITEM/EXPENSE COST INCURRED
1 Transport i.e material Ksh 5000
transport (poultry house)
and site visits
2 Market research Ksh 3000
3 Construction fee(poultry Ksh 4000
houses)
4 Photocopying and printing 500
(business plan and other
documents)
TOTAL Ksh 12500

5. 2 operation expenses

This involves costs which are incurred during the production process.

S/NO ITEM COSTS

1 Technical personnel involved in Ksh 21000
production
2 Stock buying; Ksh 15980
 Eggs
 Chicks
3 Feeds and drugs Ksh 4450
4 Electricity Ksh 500
5 Insurance Ksh 3200
6 Poultry House Ksh 12550
7 Regulatory expenses- i.e Ksh 2600
licensing.
TOTAL KSH 60280

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5.3 Schedule for personnel

This involves the costs incurred in hiring management.

S/NO STAFF CATEGORY NUMBER PAY AMOUNT

1 Manager 1 Ksh 20000 KSH 20000
2 Supervisor 1 Ksh 17000 KSH 17000
3 Accountant 1 Ksh 15000 KSH 15000
4 Sales person 1 11000 KSH 11000
TOTAL KSH 63000

5.4 fixed assets required.

This involves the costs incurred in buying tools and equipment.

S/NO TOOL/EQUIPMENT QUANTITY SOURCE UNIT COST TOTAL

1 Incubator 1 [medium] Tuskys 12000 KSH 12000
supermarket
2 Egg handlers 5 Tuskys 350 KSH 1750
supermarket
3 Water troughs 10 Tuskys 110 KSH 1100
supermarket
4 Feeders 10 Tuskys 110 KSH 1100
supermarket
5 Bulbs 3 Tuskys 100 300
supermarket
TOTAL 16250

5.5 source of capital

S/NO ITEM AMOUNT

1 Savings KSH 450000
2 Grants- NGOs KSH 275875+350100
 solidarity kenya = 625975
 farm concern
3 Loans- uwezo fund KSH 150500
TOTAL KSH 1226475

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 5.6 projected financial statement
5.6.1 cash inflow
S/NO ITEM JAN. FEB. MAR APRI MAY JUN. JUL. AUG. SEPT. OCT. NOV. DEC
.
1 sales 10 10 12 10 20 16 18 48 30 28 50 100
trays chicks chi chic chic broil broil broil broil broil broi broiler
of = cks ks= ks= ers, ers , ers, ers, ers, lers s , 40
eggs 1190. = 119 238 24 16 30 20 18 , 30 chicks
= 5 14 0 0 chick chick chic chic chic chic and 35
(10* trays= 28 s and s, ks ks ks ks trays=
349) 1745 19 and and and and and ksh
= ksh Total= trays 15 29 21 17 25 96875
3490 2935 = trays tray tray tray tray
ash = ash s s= s= s=
2227 2152 =ksh ksh3 ksh ksh
1 1 520 367 304 522
51 9 47 45
2 Grant 2758 - - - - 3501 - - - - - -
s 75 00
3 Saving 4500 - - - - - - - - - - -
s 00
4 Debts - - - - - 2600 1300 200 100 120 350 4300
0 0 0 0
5 Loans - - - - - 1505 - - - - - -
00
TOTA 3243 2935 14 119 238 5254 2282 540 346 316 535 10117
L 65 28 0 0 71 1 51 79 47 45 5

GRAND TOTAL = KSH 1,492,556

5.6.2 cash outflow

S/NO ITEM AMOUNT

1 Pre-operation costs 12500
2 Poultry house 12550
3 Salaries and Wages 63000 + 21000
(technical personnel and = 84000*12 months
schedule for personnel) = 1008000
4 Fixed assets required 16250
5 Basic requirement for 4450*12 months
maintenance of poultry = 53400

6 Insurance 3200*1 year

7 Electricity 500* 12 months
= 6000
8 Regulatory expenses 2600*1 year
9 Stocks 15980

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 TOTAL 1130480

GRAND TOTAL= 1130480

Therefore, Net cash flow = cash inflow which = 1492556-1130480 which is cash
outflow.

Net cash flow = 362076

5.7 Profit and loss account (income statement)

Income statement of Maendeleo poultry firm for period ending 31st December 2019 mid night.

5.7.1 INCOME

S/N ITEM JAN FEB MA AP MA JUN JUL AUG SEPT OCT NOV DEC
O R R Y
1 Sales 3490 293 142 119 238 2227 215 520 336 304 522 96875
5 8 0 0 1 21 51 79 47 45
2 Savin 4500 - - - - - - - - - - -
gs 00
3 Grant 2758 3501
s 75 00
4 loan 1505
00
5 Debt 2600 130 200 100 120 350 4300
s 0 0 0 0 0
TOT 7293 293 142 119 238 5231 228 540 344 316 557 968759
AL 65 5 8 0 0 1 21 51 47 47 45 705

GRAND TOTAL =KSH 1508456

5.7.2 EXPENSES

S/NO ITEM AMOUNT

1 Pre-operation cost 12500
2 Poultry house 12550
3 Salaries and wages 1008000
4 Fixed assets 16250
5 Basic requirement for poultry 53400
6 Insurance 3200
7 Electricity 6000

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 8 Regulatory expense 2600
9 Buying stock 15980
TOTAL 1130480

Therefore; income-expenses= profit

1508456-1130480= KSH 377976

5.8 Balance Sheet

Maendeleo poultry firm’s balance sheet as at 1st December 2019

Fixed assets Capital

1. Poultry house KSH 12550
2. Piece of Land KSH 250,032
3. Others KSH 16250
Current assests
1. Buying stock KSH 15980
2. Debtors KSH 15900
3. Savings KSH 450,000
4. Cash in hand KSH 1210,600
GRAND TOTAL =KSH 1,971,312
1. 450000+ sales (290512)= KSH
740,512
Long term liabilities
1. Uwezo loan KSH 150,500
Short term liabilities
1. Pre-operational cost KSH 12500
2. Salaries and wages KSH 1008000
3. Maintenance cost KSH 53400
4. Insurance KSH 3200
5. Electricity KSH 6000
6. Regulatory expenses KSH 2600
GRAND TOTAL = KSH 1,971,312

6.0 Critical risks.

1. Frequent diseases out break- the chicks might suffer from disease such as
coccidiosis, fowl cholera, fowl phox etc.
2. Stiff competition from the existing similar enterprises.
3. Low sales dues to different consumer test and preferences.
4. Cannibalism and pecking- some hens might have egg eating behavior which will
bring loss to the firm.

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