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ID NO: 1910






Table of Contents
1.0 Executive Summary 1-2
2.0 Business Description 2
2.1 Background of Concept 2
2.2 Target Market 2
2.3 Product 2-3
2.4 Demand 3
2.5 Financial Status 3
2.6 Management Team 3-4
2.7 Location 4
3.0 Competitive Analysis 4-6
4.0 Market Analysis 7
4.1 Customer Demographic Survey 7
4.2 Market Segment 7
4.3 The Market Need 7
4.5. Competition in the Market 8
4.6 Barriers to Entry 8-9
5.0 Marketing Plan 9-11
5.1 Corporate Objectives 11
5.2 Marketing Objectives 12
5.3 Marketing Strategies 12-13
6.0 Evaluation and Control 13-14
6.1 Sales Forecast 14
6.2 Market Share 14-15
6.2 Customer Need 15
6.3 Cost Benefit Analysis 15
6.4 Efficiency Ratio 15
6.5 Customer Satisfaction 15
7.0 Management Team 15
8.0 Financial Analysis 16-17

Sahmid Cashews Ltd. Is proposing a cashew nut processing factory that will be processing raw
cashew nuts into various seasonings such as salt roasted, sugar roasted and natural roasted, and
sell to the local and super markets in the Port Loko Township and Sierra Leone as a whole in the
The company is going to be located at Kabatha Junction, Maforki Chiefdom Port Loko District.
MISSION: To meet consumers increasing demand for a more sustainable cashew kernels
product and to add value to cashew producers.
VISSION: Sahmid Cashews Ltd. Strive to stimulate and support long-term economic growth and
increase cash flows on cashew producers in the Maforki chiefdom and Port Loko district as a
The company believes that the opportunity to do business at Kabatha junction is greatly
influenced by the cost advantage to be derived from the chiefdom geographical localization and
the Potential for expanding production to the entire district. That is the availability of land,
labour, low cost of production etc. also the little barriers to entry allow for immediate business
opportunity. There is also potential to offer additional products.
The company is going to be viable due to the fact that it has the potential to increase the income
of poor producers during harvesting and processing; the availability of market (local and super
market); the availability of institutional support from government (MAFFS). NGOs, financial
institutions and the presence of investors and experts.
With currently high demand and frequent shortages of cashew products, the company will
provide a cheaper product and assure round year availability.
Local producers will also save costs by delivering their nuts to the nearby processing unit.
Similarly more local land owners will be able to cultivate the cashew nuts with the company
ready to buy their product.
This will stimulate the local economy and reduce the rate of hunger and malnourishment and
also add value to customers and increase Maforki Chiefdom cash flows.
The company strategy is to start small and get bigger.
As the only mechanized cashew nuts processing factory in the district, Sahmid Cashews Ltd.
Competitive advantage is based on the product itself, the company location and the advanced
processing equipment that will be installed in the factory.

The company financial risk is associated with a high investment cost, lack of skilled labour, poor
harvesting season which will result from uncontrollable bush fire, heavy down fall of rain and
other human resource problems.
Samuel Abu Conteh will be the owner and CEO of the company. The company will also need a
good factory manager that will be in direct contact with the operations and manage sales.
The company estimates an initial capital of LE 550,000,000 which accounts for the factory
construction, equipments, the necessary facilities construction, training sessions, and rise to LE
50,000,000 to buy the necessary quantity of raw cashew nuts amounting to a total of LE
The company concept came into existence as a result of a holiday trip I made to my father
cashew garden in 2013. I discover that there are a lot of cashew garden in the section including
my father garden. During the harvesting season, that is February to June, there is a massive
wastage of the raw cashew nuts and only few are being process (roasted) locally and sold at the
Kabatha junction and Malekuray junction. Thus I decided to expand my father garden and
proposed to install a modern cashew processing factory in order to add value my father garden
and other cashew producers in the Maforki Chiefdom.
The company target market can be broken down primarily into local and super market. The super
market is the main focus of the company. The plan does cover, however, local markets and this is
a key opportunity for sierra Leoneans, given that majority of cashews is produced in small plots.
Cashew nuts are commercialized in shell (raw), semi-processed (shell and peeled) and finalized
(salted, sugar and natural roasted).
The product will pass through the following process:
1. Steaming: steaming is develop in the boiler up to 100/125 Psi and released in the cashew
cooker for about 25-30 minutes. This expands the shell and softens the nuts due to
penetration of the steam in the shell.
2. Shelling: the nuts are de-shelled by hand, and leg operated cutters. The nut is kept
between two set of blades to fit the contour of the blade by pressing the pedal the blade

pierces the cashew nut. After de-shelling, the kernels are separated from the shell and
gives for drying.
3. Drying of unpeeled kernels: the kernels are dried in the tray dryers to removing the
tanning and moister content inside the kernel. The kernels should be dried at 70oc to 6-7
4. Peeling of dried cashew kernels: the process of removing red/brown skin (testa) present
on the kernel by hand or by automatic peeling machine.
5. Gradation of cashew kernels: the peeled cashew kernels are graded on the basis of size,
shape and colour.
6. Filling and packing: before packing, the graded kernels should be dried again for 1 hour
at 70oc, so as to remove the little amount of moisture gain during peeling and grading
process. The kernels are filled in tins and plastics with the help of vibratory filling
machine. The filled tins and plastics are vacumised and gas is infused (co2/nitrogen) with
vita packing machine. The gas infused tins and plastics and hand-soldered using hand
free solder.
There is a local demand derived from cashew kernel products. The local and super markets are
under-supplied. The company will provide a cheaper product and assure round year availability.
Since more local land owners will be able to cultivate the cashew nuts, thus the company will be
ready to buy their products.
This will stimulate the local economy and reduce the rate of hunger and malnourishment, add
value to customers and increase the cash flows in the maforki chiefdom.
Sahmid Cashews Ltd. Estimates an initial capital of LE 550,000,000 which accounts for the
construction of the factory, ordering of factory equipments, training sessions and the necessary
facilities construction and rise LE 600,000,000 to buy the necessary ray materials. The owner
will contribute LE 100,000,000 and requesting an additional LE 450,000,000 in form of a bank
loan and LE 50,000,000 from family and relatives.
Samuel Abu Conteh will be the owner and CEO. He is a person that has a huge experience in the
cashew industry. Because of his extensive involvement in the community, he is in a position to

significantly increase the chance of success. He is well known and respected by members of the
community. Samuel Abu Conteh also has several influential and information contacts that will
support him in this business venture. The company will also need a factory manager who will be
in direct contact with the operations and manage sales.
Sahmid Cashews Ltd. Will be located at Kabatha junction, Malal section, Maforki chiefdom,
Port Loko District, North-West part of Sierra Leone.
The company cashew farm is located at Malal village 1kg from the factory site. The company is
located in a cashew growing area.
The Maforki chiefdom is occupied by competitive cashew nut processors. The majority of the
existing cashew processors is comprised prominently of traditional cashew kernels processors.
The cashew kernel processors that might be consider primary or major competitor for my target
market is the Cashew Commodity Farmers Processing Unit situated at Malekuray junction Port
Loko town.
This processing unit is being established by the cashew commodity farmers with support from
Coopi(corporation de Internationale) and the ministry of agriculture forestry and food security
The purpose of this unit is for the processing of raw cashew nuts into roasted kernels and sell to
the local market. The processing unit was formally opened on the 25th may, 2016 by P.C
Adekalie Maylah III.
When the unit shall start full operation come February 1017, the owners proposed to buy dry
cashew nuts from farmers and process the dried nuts by using processing methods that a a little
bit improved than the traditional way of processing the nuts.
They will be using local stove (coal pot) with charcoal in it, and place a pot that is half full with
palm nut oil. After the palm nut oil is warm for about 30 minutes, they would place a bore hole
kettle filled with cashew nuts into the already warmed pot and allow the cashew nuts to steam for
30 minutes. After steaming, the steamed nuts are spread on the floor for 10-30 minutes before
they are peel and package for sale.

Since the unit is yet in full operation, its profitability margin and customer base cannot be
determined. According to the operation manager, they intend to sell in cash basis and supply
their agents in credit basis.
The unit strength is base on the following:
It being supported by Coopi and MAFFS.
It is the first to be established in the district.
It is owned and managed by the cashew produces association.
Despite its strengths, the unit has several weaknesses of which are:
Lack of trained and qualified employees.
It does not have the capacity to operate throughout the year.
It is donor dependant.
Lack of advanced processing equipments.
Sahmid Cashews Ltd. Competitive advantage is based on the product itself, the company
location and the advances processing equipments that will be installed in the factory.
The product will be certified by appropriate authorities i.e. the Standard Bureau and the ministry
of health and sanitation. The product will consists of various seasons (salted, sugared and natural
roasted). The packaging system will also be of a great advantage.
All stages in the production process will be mechanized. The company location which will allow
the company to offer competitive prices in the higher quality segment.
Sahmid Cashews Ltd. Strength result from the following:
Exceptional trained and qualified staff.
Prime location with easy access to the cashew gardens and the target market.
The used of mechanized processing methods.
The company have about 1000 acre of cashews plantations in its possession.
Minimum inputs for production, post-harvest handling
Minimum inputs for processing.
Employment for women particularly in processing, 64%.

Sahmid Cashews Ltd. Weakness will result from the following:
Recruiting trained and qualified staff.
Weak market penetration and position in the market.
High cost of local capital.
Tight margin will allow little wiggle room for error.
The difficulties of peeling off the testa from the kernel.
Absence of standards particularly among producers.
Poor post-harvest handling.


Poor post harvest handling of raw nuts By increasing awareness and education, the
including picking immature nuts, improper handling and subsequent quality and price of the
drying, combining old and new season crops. raw nuts will increase.

Sahmid Cashews Ltd. Does not obtain The company will work through channels to
financial and/or other support required to secure high priority for the implementation of
implement the plan. the plan.
Reaction by competitors towards the The company will continue to conduct product
companys strategies. and market research throughout the year.
Diversification will also be another option.
Harvesting reduced due to crop disease and Provide extensive services to help produces
uncontrollable bush fire. prevent and deal with diseases and fire.
Producers would not sell the raw nuts due to Implement marketing strategies so that the
higher prices from smugglers or exporters. company can sell well and thus afford to pay or
buy well
Organic certification not obtained due to The company will work closely with certifying
channel drift or other factors. agencies on careful selection of initial areas.

The cashew market large and uncontrollable. The industry comprises of local processors
engaging in producing fried cashew nuts to consumers.
Sahmid Cashew Ltd. Products will appeal to customers of the following profile:
Male and female
Income of all levels.
Employed and employed.
Cultural, ethnicity and religions of all types.
Ages from 6-65 years.
There are approximately 21,000 potential customers with in this profile.
Sahmid Cashews Ltd. Customers can be segmented into two groups.
The first group is those customers that are familiar with cashew products and desire a
progressive and inviting quality where they can walk nearby their homes and get a quality
products. This segment account for 40% of the target customers.
The second group is those customers that are not familiar with the cashew products, and they are
just waiting for the right opportunity to be part of the products customers.
The extremege wide range of ages and othe demographic profile is due to the fact that the
product appeal to a variety of people.
Roasted cashew products are limited in Sierra Leone. But there is a high demand for cashew
products from all part of the country. The demand for processed cashew products out strips
products. The product is consumed by almost every household, but due to the high price it is
beyond the reach of low rung population. There is a local demand derieved from cashew kernel
products. The local and super markets are under-supplied. The customer need high quality
cashew products with healthy properties in a more convenience way. Indulgence and product
diversity is also a major customer need. The company will provide a quality and cheaper
products and assure round year availability.

The target market is the local market within Port Loko Township and the company proposes to
extend its products to the super markets across the country within 36 months of operation.
Port Loko District has a total population of 614,063 according to the 2015 population and
housing census, of which the township population is estimated to be 21,000 inhabitants.
80% (16800) of this population within the township will mostly afford to buy and consumed the
But due to the size of the firm, the company will only catered for 10,000 (60%) customers of the
target market. The company estimated distribution channels within the target market is shown in
the table below:
Public Retail 50%
Business Retail 20%
Whole sale 30%
TOTAL 100%


The companys main competitors in the target market segment within the same location are the
local processors and Cashew Commodity Farmers processing unit. These competitors target a
similar segment to Sahmid Cashews Ltd.
However the company will offer substantial computing product to its customers which these
competitors are not providing for the moment.
To start a new business especially in this line of business is prone to some barriers of which will
be discussed below:
Competition Around: there is a strong competition in this line of business within the target
market. To overcome this barrier, the company will compute on attribute other than price. i.e the
quality of the product.

Capital Cost: another entry barrier will be the capital cost associated with acquiring processing
machines, delivery and equipments. To overcome this barrier, the company may decide to rent
use these equipments until it get up to full speed.
Product Differentiation: due to the fact that the competitors have brand identification and
customer loyalties, this forces entrants to spend heavily to overcome these loyalties. The
company will overcome this barrier by bringing different products to the target market, and its
benefits will be clearly communicated to the target customers.
General Regulations: requirement for licenses and permits may also raise the investment needed
to enter into the companys target market, thus creating an antitrust barrier to entry.
To overcome this barrier, the company will have to register with the office of the Administrator
and Registrar General in the Ministry of Trade, The Port Loko District Council to get a general
business license, the National Revenue Authority (NRA) in order to obtain a Tax Identification
Number and NASSIT for social security number.
In order to meet standards, the company will also registered and obtain a CERTIFICATE FROM
THE Sierra Leone Standard Bureau to assess, and confirm that the companys products
conforms to the applicable standards and to ensure that the company demonstrate its technical
competence in line with national and international best practice.
The company marketing plan will be analyzed into two folds, the external and internal analysis.
In the external analysis, the company plan will be based on the PESTEL Tool and the SWOT
analysis for the internal analysis.
In analyzing using the PESTEL tool, the company will look at the following:
Political: Sierra Leone is a republic, with a government modeled along constitutional democracy.
The country is divided into four administrative regions with fourteen political districts. Since
2002 the country has worked hard to establish stability, both politically and economically. Sierra
Leone is Africas most improved country for governance over the past two years of the MO
Ibrahim African Governance Index.
Sierra Leone is also the second most improved country in the world over the past decade interms
of standard of governance, political stability and the ability of citizen to hold government to
account, according to a recent study by world bank.

Economic Factor: At present, the economy is largely driven by agriculture, construction and
mining. Agricultural production is the most important contributor to GDP, accounting for 45% in
2016. Blessed with plentiful resources base and strong mineral potentials including known
deposits of routile, diamonds, gold and iron ore, Sierra Leone mining sector remains under
explored and under developed.
Social Factors: The country has a strong and proud heritage of religious tolerance, and its people
are now among the most religiously harmonious in the world. The Gallup Index to reflect the %
increase, examine 27 multi-faith countries and found Sierra Leone the most integrated, with two
thirds of the population classified as such.
Technological Factors: The country energy sectors received a hugh boast in late 2009 with the
commission of phase 1 of the Bumbuna dam. The government has recognized the importance of
roads to the countrys economic and social well-being. Accordingly, the country is undertaking
the most ambitious road-building programme in its history. In the area of telecommunication, the
overall mobile penetration rate has increased dramatically over the past 7 years from below 5%
to about 48% in 2016. With the completion of the fiber optic cable project, the country will be
experiencing one of the fastest and lowest internet and tariff rate in the sub region
Environmental Factors: The country has a tropical climate, the inter-tropical belt of cloud rain
migrates northwards and southwards with the apparent movement of the overhead sun but
lagging behind some four to six weeks from October to March, during the period of low sun, the
weather is generally dry with many fine sunny days. There are principally two seasons: The rainy
season from May to October, and the dry season for the other months of the year.
Legal Factors: The legal system is based on English Common Law and customary laws
indigenous to local tribes; universal suffering is 18 years of age.
The judicial arm consists of the Supreme Court, court of appeals, high court and magistrate
court. Of recent, the government through the Ministry of Justice has established a commercial
court to fast tract business cases.
In the internal analysis, the company will be focusing on the SWOT Analysis. These are
discussed below:
Strength: The strength of the company is based on the following:
The proposed company all ready has over 50 acres of cashew trees plantation.
Availability of land for the facilities

Experience of the owner and CEO over the line of business.
The company being the only mechanized cashew processor in Sierra Leone.
Weakness: The company weakness is based on the following:
Difficulties in accessing finance to start the business.
Recruiting and retaining quality staff.
Tight margins will allow little wiggle room for error.
Opportunity: The company opportunities are based on the following:
There is a raft of new incentive announced by government in this line of business.
Open access for business to foreign investors.
Low cost advantage derived from business location.
Little barriers to entry allows for immediate business opportunities.
Offer additional cashew products.
Threats: The Company will be facing the following threats:
Customers that believe that the cashew processed at home are healthier than those
processed in the factory.
Building/maintaining sales volume.
Raising operation costs.
The company Vision is to continue to expand and surely have a socio-economic impact on small
cashew producers at Maforki Chiefdom, Port Loko District.
The company Mission is to meet consumers increasing demand for a more sustainable cashew
kernels product and to add value to cashew producers.
Do to the fact that the company is a private entity, and hence a profit making entity. The
company corporate objectives are as follows:
To be the premier cashew processing factory in Sierra Leone.
To provide quality product at reasonable prices with exemplary products.
The company aims to breakeven within 36 months of operation.
The company hopes to achieve 60% of market share in the first 36 months.
These are as follows:
The company hopes to sell its products to over 5000 customers in 24 months time.

The company hopes to establish about 50 distribution outlets in the second year of
The company hopes to supply to 10 major supermarkets across the country.
The company aim to employ about 50 permanent staff after five years in operation.
Based on the line of business, the company will focus on 4ps out of the 7ps. That is, price,
product, people and promotion.
Pricing: the company will be able to offer home style products for a reasonable price. The
average check price is expected to be between le 2,000 to le 20,000. Because of the companys
expertise with vendors and its excellent credit facilities, the company can negotiate better credit
terms than say someone brand new starting a factory.
Also the company will keep it prices in check by meticulous monitoring of its controllable
expenses-keeping close eye on its prime cost report and inventory. By initial employing family
members who will work for lower and reduced wages, for e.g. the company can further reduced
it controllable expenses.
Product: the company upon commencement of operation, will sell a wide range of cashew
products, such as sugar roasted, salt roasted, pepper roasted, natural roasted etc. the company
will be providing quality products. What will set the company from competition is its
commitment to meet Standard Bureau standards and by providing all of these products in a
healthy environment. The company will be able to offer home style products with healthy
properties and product diversity.
People: The Company will aggressively seek to build a strong data base for its customers.
Customers will have an opportunity to be included I the data base so they can participate in the
companys promotion and advertising such as trade fairs.
The data base will be gathered and maintained on a system yet to be disclosed. The company will
be putting strategies in place to retain loyal customers.
Promotion: the company advertising strategy is a simple one. Satisfied customers are the
companys marketing tool. When a customer buys and consumed the companys product, he/she
will broadcast the companys name and quality of the product to the public. Research has shown
that words of mouth is the best advertising tool for this type of business.

The company will however, have signage on the major centers of the township as well as signage
over entrance. The company also plans to join the Sierra Leone Chambers of Commerce and
utilizing their networking services for the company grand openings. The company will also stay
current with industry trends and have a webpage, face book and twitter site.
Finally the company will also run specials throughout the week. It will also offer discount to new
customer who have been referred.
The company advertising budget will be based on approximately 5% of its sales which will be le
10,000,000 during the first year. Detailed of advertising budget is shown below:



Signage 3,000
Events 3,000
Webpage 2,000
Specials/outreach 2,000
TOTAL 10,000


Sahmid Cashews Ltd. management will practice sound management procedures in order to
control costs, insure quality of product and provide friendly customer service. The following
systems will be used by management:
Weekly Inventory: Management will conduct a weekly inventory to determine valuation for use
in the preparation of weekly profit and loss reports.
Daily Inventory Tracking: Daily inventory will be taken on specific items. Movement will be
compared to sales data to ensure designated products have been properly accounted for.
Safety Reviews: Periodic safety assessments will be performed to ensure that employees and
customers are not exposed to dangerous or harmful conditions or actions.
Operations Checklists: The factory will be managed with the use of various checklists.
Consistent use of checklists will help to maintain quality control while ensuring that established

procedures are followed. Checklists will be used by various personnel for customer service,
purchasing, receiving and storage, preparation, cleaning, shift changes, opening and closings.
Order Guide: The Company will use an item specific order guide to track order history and
maintain designated levels of product in inventory.
Sales Forecast
The company is expecting a conservative 20% increase in sales revenue annually over the next 3
years. The growth is adjusted for inflation.
The table below shows expected sales forecast for the next 3 years. With the addition of other
incomes, sales will increase in year 2 and year3.
Annual Sales Forecast
YEAR Year 1 Year 2 Year 3
(le 000) (le 000) (le 000)
Sales 200,000 240,000 288,000
Other income 50,000 70,000 80,000
Total 250,000 310,000 368,000

Quarterly Sales Forecast

1ST 30,000 12
2ND 40,000 16
3RD 60,000 24
4TH 70,000 28
Other income 50,000 20
TOTAL 250,000 100

Market Share
The company intends to capture 10,000 customers in the local market and super markets.
The company intends to capture in the first year 2,500 customers in the local market (15%
market share) 3,500 customers in the second year (21% market share) and will start selling to
super markets and restaurants in the third year achieving 4,000 customers (24% market share).
The remaining 6,800 customers (40% market share) for competitors.

The table below shows the expected market share for the next three years>
Market Share
YEAR SAHMID CASHEW No. of customers Market share (%)
1 2,500 15
2 3,500 21
3 4,000 24
Total 10,000 60
Competitors 6,800 40
Grand Total 16,800 100

The customers need high quality products with healthy properties, indulgence and product
Based on the sales forecast, the company hopes to acquire 70% Return on Investment in 3 years
All departments and units will be assessed on a weekly basis. The CEO will ensure connectivity
among all departments and units. The factory manager will identify areas that need improvement
and also organize in-service training for all personnel in a regular basis. Incentive will be given
to staff that are doing exceptionally well.
Customers satisfaction as one of the company marketing strategies, thus they will serve as the
kings and queens of the company. The company will maintain customer satisfaction by listening
and improving on their needs.
They will be provided with high quality products with healthy properties, convenience,
indulgence and ensure them product diversity. The company products will make customers to
come again and again. The customer satisfaction is highly guaranteed.

The company expects to hire 20 employees at start which includes top management level staff
such as factory manager and other supporting staff. Vacancies will be announced and the CEO
will personally select each candidate. The CEO will adopt an effective interview process
designed to staff for the factory with highly qualified people for each position. Each applicant
will be rated and evaluated according to a predefined set of standards designed for each position.
Background checks will be utilized for designated positions. Recruiting efforts will always
center on referrals.


Finance Officer GENERAL FACTORY MANAGER Sales Agents

Cooling Drying Peeling and Classification Packaging Storing

Supervisor supervisor Supervisor supervisor Supervisor

Sahmid Cashews Ltd.
Financial Projections before the Start of Operation as At 1st January, 2017.
(Le 000) (Le 000)
Non Current Assets:
Land 40,000
Building 150,000
Machinery 140,000
Motor van 70,000
Furniture and Fittings 40,000
Current Assets:
Inventories 100,000
Cash at Bank 80,000 180,000
Liabilities/Capital 600,000

Sahmid Cashews Ltd
Statement of Comprehensive Income for the Year Ended 31st December 2018
(Le 000) (Le 000) (Le 000)
Sales 200,000
Other Income 50,000
Net revenue 250,000
Less Operating Expenses:
Wages and Salaries 150,000
Transport and Communication 30,000
Advertising 10,000
Insurance 5,000
Name and Logo Graphic Design 2,000
Licenses/Permits 3,000
Professional Services 20,000
Pre-opening expenses 10,000
Repairs and Maintenance 15,000
Heating and Lighting 20,000
Miscellaneous 20,000
Building 7,500
Machinery 7,000
Motor van 3,500
Furniture and fittings 2,000 20,000 (315,000)
Net Loss (65,000)

Sahmid Cashews Ltd
Statement of Financial Position as at 31st December 2018
Cost Accumulated depreciation NBV
(Le 000) (Le 000) (Le 000)
Non Current Assets:
Land 40,000 - 40,000
Building 150,000 (7,500) 142,000
Machinery 140,000 (7,000) 133,000
Motor van 70,000 (3,500) 66,500
Furniture and fittings 40,000 (2,000) 38,000
440,000 (20,000) 420,000
Current Assets:
Inventories 100,000
Cash at Bank 80,000 180,000
Total Assets 600,000
Account payables 10,000
Bank Loan 20,000
Capital 600,000
Less Net Loss (65,000)
Less Drawings (75,000)
Net Worth 600,000