EGG POWDER BUSINESS PLAN

FOR KANGAYE ENTERPRISES

SUBMITTED TO THE NEXT ECONOMY PROGRAMME

BY
ABIGAIL KUCHETI
CEO KANGAYE ENTERPRISES

FEBRUARY 28, 2017

KANGAYE ENTERPRISES
BEHIND BUILDING MATERIALS JOS, PLATEAU STATE
 TABLE OF CONTENTS
SECTION 1
1.0INTRODUCTION
1.2COMPANY OWNERSHIP
1.3BUSINESS LOCATION AND ADDRESS
1.4NATURE OF BUSINESS
1.5MISSION STATEMENT AND PURPOSE

SECTION 2
2.0MANAGEMENT TEAM
2.1 RESPONSIBILITIES AND OTHERS
2.2 COST OF LABOR

SECTION 3
3.0 MARKETING STRATEGY
3.1MARKET SEGMENTATION
3.2TARGET MARKET SEGMENT STRATEGY
3.3COMPETITION
3.4BUSINESS COMPETITIVE EDGE
3.5SEGMENT MARKETING STRATEGY
3.6PRICING AND PROMOTION STRATEGY
3.7SALES STRATEGY

SECTION 4
4.0PRODUCTION PLAN
4.1 PRODUCTION PROCESS
4.2 MACHINERY
4.3 RAW MATERIALS

SECTION 5
5.0FINANCIAL PLAN

SECTION 6
6.0INTERNAL ENVIRONMENTAL ANALYSIS
6.1 EXTERNAL ENVIRONMENTAL ANALYSIS

KANGAYE ENTERPRISES
SECTION 1
1.1 INTRODUCTION
The egg is the most nutritious natural product. Eggs are rich in protein, vitamins and minerals.
During last three decades the poultry industry in the country has made remarkable progress and
grown into an organized and highly productive industry. Dried egg powder can be stored and
transported at room temperature. It is quiet stable and has long shelf life. The manufacturing of
egg powder is an important segment of egg consumption. There is enough scope of an egg
production plant, with a suitable capacity. Whole egg powder is consumed in hotels, restaurant
etc. It is also used in bakeries and cake mix manufacture. Dried albumen is used in cake mix
manufacture, marinque powder manufacture and in candy making.
The company is an egg production firm that provides for a large market range. It is based in Jos,
Plateaus State. The founder has noticed the health benefit of eggs and is creating a business to
meet the increased demand for eggs. The person who have come to start this business is Mrs.
Abigail Kucheti.
Not only is the founder interested in meeting the demands of the customer, i also plan to create
utmost satisfaction for these customers. The founder also want to use this business as a means
of creating employment within the community it is based in and to contribute to the economy of
the country. We plan on provide products with quality and maintain this supply efficiently. This
is a sole proprietorship business that plans on distributing egg powder, beans flour and fonio
(acha) and its by-product to restaurants, households, food centers, hotels, schools, clubs, bakery
and catering businesses and supermarkets. We also plan on doing this at very affordable prices.
This business plan is meant to articulate the vision and future of our enterprise, and to appeal for
startup funding and also for investors and external stakeholders to get involved in the course of
the business and help with its expansion in the next three years of successful running as it is a
capital intensive business. We also hope that it will serve as a guideline for the firm’s employees
to move towards the goal of the company.
Not only do we offer products, but we offer services as well. We plan on providing home delivery
services to customers who order a certain amount of products. This offer will mostly be used by
the section of our target market that uses eggs in large quantities like schools and bakeries.
10,000 eggs would be optimum for the initial operation of the business. Fifty percent gross
margin is expected within 6 months of its operations withholding the chances of any accidental
or unexpected incidence and we hope to obtain the breakeven point within 1 year or 6 months.
We have considered the risks, financial, health and technology wisely.

KANGAYE ENTERPRISES
1.2 Company Ownership
KANGAYE ENTERPRISES is the name of the business and is owned by Mrs. Abigail Kucheti. It is a
sole proprietorship business that and intend to make it a partnership as it expands. Also liable
for any business debts or claims.
1.3 Business Location and Address
At this point in the business the suitable location is behind building materials in Jos, Plateau
State. We are trading from this spot because is it a great place to reach our target market. We
think the population base is large enough for our business and it has a stable economic base that
promotes a healthy environment for the poultry. Also we think it is a spot that could tap a healthy
workforce. We also considered pedestrian traffic and we think a large percentage of them are
potential customers. We plan on having a good parking space and sufficient security in our
working site to create a safe environment for the customers. We plan on renting the building at
first, and then buy it after we gain enough profit.
1.4 Nature of Business

This enterprise is designed to produce egg powder and fresh eggs and other subsidiary food
products which include; Bens flour, Fonio couscous, Fonio flour etc.

1.5 Mission Statement and Purpose

 To establish the ultimate and nationwide egg production firm that can solve problem of
customers meet the need of the society and bring about sustainable development of
creating employment opportunities.
 To provide customers with quality, fresh, and valuable products.
 To respect all employees and enable everyone to have a say in company affairs. Quality
and service are our number one priority.
 To provide investors with opportunities to receive a nice return on investment and high-
quality growth in the course of expansion.
 To contribute to the community through physical and social programs.

KANGAYE ENTERPRISES
SECTION 2

2.0 MANAGEMENT TEAM

Management team is a team of individuals at highest level of organization management who

have the day- to- day responsibilities of managing an industry, company or cooperation. These
company management teams are individuals who are responsible for day- to- day running of the
firm.

The key management team are as follows;

i. Manager (CEO)
ii. Machine Operator
iii. Finance/account manager
iv. Executive marketing and sales manager
v. Production manager
vi. Part timer workers/cleaners.

2.1 Responsibilities and Others

Manager/CEO: The manager is responsible for planning, organizing and managing the activities
of the firm.

Duties;

 Planning finance and production to maintain farm process against budgets and
parameters.
 Planning activities for trainee staff, mentoring and monitoring them.

Machine Operator: the machine operator is responsible for the smooth running of the
production line.

Finance/Accounting Manager: the account manager; manage the key account head office. He
develops and implements sales and marketing plans and meet sales target, handle negotiation
at higher level with head office. The account manager identifies and develops business

KANGAYE ENTERPRISES
opportunities in existing channel patents, increase sales in a manner consistent with company
policy and goals.

Executive Marketing and Sales Manager: the marketing and sales managers manage and assign
territory of product line to maximize sales revenue and meet cooperate objectives, review sales
progress and develop specific plans activities to ensure revenue growth.

Some duties of the sales manager include

 He is in charge of calling customers.

 Maintenance and extension of sales territory.
 Increasing sales line, image, and building and developing product knowledge.

Production manager; the production manager is responsible for managing the production,
operating to ensure that the achievement of production target within the specialized quality,
environmental standard and budget.

 It is his duty to manage the production team.

 Adherence to plan.
 Adherence to site and business protocols.

Part-time workers/cleaners; part-time workers are workers who work time to time not regularly.
They also take part in cleaning to ensure that the farm is clean and to prevent and check farm
products from contacting diseases.

Skills and Experience of the Management Team

The management team will be individuals of high skills due to undergoing training on how to
handle the business, to ensure the progress of the business by minimizing cost and maximizing
profit. The will be also individuals, who have experience because they may have been engaged
in the business several time before they have experience of how to run the business and prevent
the farm from uncontrollable factor which may do harm and affect the progress of the business.

KANGAYE ENTERPRISES
2.2 Cost Labor

LABOR ANNUAL COST (N)

Machine Operator 160,000
Finance/account Manager 200,000
Executive Marketing & Sales Manager 200,000
Production Manager 200,000
Part-time Workers 200,000
TOTAL SALARY 960,000

KANGAYE ENTERPRISES
SECTION 3

3.0 MARKETING STRATEGY

3.1 Market segmentation

Although in the Nigerian populace, there are a few taboos, religious or cultural practices that will
prevent the consumption of egg produce, during the market segmentation, we found out that
nearly everybody eats eggs, so we are targeting the whole market, individuals, homes and firms
that use eggs in large quantities. Specifically there is a high demand for egg for home
consumption during festivals like Christmas, Eid-al-fitr, New Year, Easter etc.
3.2 Target market segment strategy
Individuals are a small sector in the market segmentation. They are a pretty large group but they
buy a relatively small amount of eggs.
The part of the market that we hope to supply large amount of eggs to are the industries that
need eggs. We have strategically placed our site close to these industries. They are bakeries,
restaurants, boarding schools, home delivery food centers, retail shops and supermarkets.
Another part of our target market that will order our products in medium quantities are the
homes that will require our home delivery as we have a set amount of eggs they need to order
for. Homes generally utilize eggs in the preparation of edibles like chicken burger, chicken pie,
egg soup etc.
We have considered the needs of each section of the target markets and we plan on meeting
these needs effectively.
3.3 Competition
Competition is not so keen in the markets, however it still exists. The reasons are;

 Eggs are not branded products; hence what usually matters is effective positioning and
timing.
 Egg market is not crowded; it’s a seller’s market.
 Most egg are sold through informal channels. Competition is usually found within local
products and imported ones.

However, this is an increasing business in terms of number of people who are doing it. This is
because Nigeria still importing chicken product like eggs from other country. Our competitors
include those who sell fresh eggs only. Although those competitors are available, a large number
of Nigerians still lacking essential food components, which are proteins. According to data from
CBN and FAO, only 2Kg of beef is available to an average Nigerian per year, and only 4Kg of eggs
is available to each Nigerian in a period of one year. There are poultry farmers; however, many

KANGAYE ENTERPRISES
of them are backyard farmers, small scale and they production is too low to satisfy the demand
of customers. The demand is high for live birds and eggs either for consumption or for gift in the
time of Christmas, New Year, Easter, id-el-fitri etc. restaurants, hotels, and supermarkets in
Nigeria. The products of poultry are also needed in fast food business which engages in the sale
of products like chicken, eggs bronze, etc. After having a look and analyzing this scenario we
decided to come in this industry to solve problem of malnutrition in our population. Therefore,
to achieve a breakthrough in our business we will be using our motto “customer is the king.” This
means that everything we will be doing is basically to satisfy the needs of our customers.
3.4 Business competitive edge
Our strength over its competitors is firstly based on the fact that we are entering this business to
make much money. We are entering this industry to solve the present problem that our
population is facing. We are here to provide quality affordable egg powder which is almost not
possible to find in stores in Plateau. We saw that some of our competitors are seasonal they only
produce fresh eggs. We know the importance of time and know that people have many and
varying activities; knowing all that we will be delivering our products to the customer’s door.
Through our motto “customer is the king” we will have an ever fast delivery. The other factor
that will help us to have success over our competitors is to motivate our employees and helping
them to improve their way of living, this will help our employees to be focused on their work and
provider better services to their customers. We expected our business to grow and start working
at national level and this will be achieved through hardworking of management team and
efficiency and effective use of materials and time is the key to be successful over our competitors.
3.5 Segment marketing strategy
KANGAYE ENTERPRISES will strive for the production of products with the highest quality and we
plan on employing the following strategies. Our location puts us in proximity of a major hotel,
restaurant, schools with campuses and home deliver food centers we will be supplying to. We
would also make contracts with hawkers in markets to sell our powder eggs. We would also make
contracts with retail shops for constant supply of eggs at intervals.
3.6 Pricing and Promotion strategy
The price of the egg powder depending on the size. As the prices ranges from N50 to N 6,000.
These prices would also vary depending on the existing market price of fresh eggs. As we
compete with other companies, we will promote our products through advertisements with the
aid of streamers and pamphlets. We can also make our business known through
recommendations and connections with well-known businessmen in the locality. We will also
make our products and service known in the newspapers as the business grows.

KANGAYE ENTERPRISES
3.7 Sales strategy

 Better product management practices

 Regular quality check
 “consumer is king” policy
 Keeping up with new technology for production efficiency.

KANGAYE ENTERPRISES
SECTION 4

4.0 PRODUCTION PLAN

The company plans to start its production with 10,000 egg daily as this will enable us to meet the
demand of our different customers.

4.1 Production Process

Manufacturing of egg powder starts with breaking of eggs and removing of the egg shells. After
shell removal then the filtration then to the storage tank where it is transferred into the pressure
tube where it dried and blended to powder for packaging.

4.2 Machinery

The main plant and machinery are:

 Egg breaker
 Centrifuge
 Storage Tanks
 Feed tube
 High Pressure
 High Pressure drier
 Power generating set

The total cost of plant and machinery is N 4,500,000

4.3 Raw Materials

The raw materials for the product is purely fresh eggs.

KANGAYE ENTERPRISES
SECTION 5

5.0 FINANCIAL PLAN

In every project found. We have to pass through the financed process. This have to do with the
business expansion, whether the personal income used or term loans from banks. In our
business, the financing structure and ways of doing it is like the path below.
1) Equity contribution: this cover the land we are using for the poultry, and also the facilities in
the building. The total income will be store rooms, office and constructions as well as the
furnishing part.
2) Funding of assets worth 4.5 million Naira will be required and N 2.5 million as working capital
for start-up operations through THE NEXT ECONOMY PROGRAMME
Below is the projected financial for expansion:

Projected Income statement

INCOME YEAR 1(N) YEAR 2 (N) YEAR 3 (N)
Sales 15,221,604 15,521,604 17,981,604
EXPENSES/COST
Eggs 5,400,000 5,400,000 5,400,000
Packaging & Others 1,650,000 1,650,000 1,650,000
Labor 960,000 912,000 900,000
Advertisement 10,000 10,000 10,000
Other expenses 100,000 200,000 120,000
Admin Expenses 131,250 225,000 225,000
TOTAL EXPENSES 8,251,250 8,397,000 8,305,000
Net Profit before tax 6,970,354 7,124,604 9,676,604
Taxes 697,035 712,460 967,660
Depreciation 19,950 32,252 38,358
NET PROFIT 6,253,369 6,379,892 8,670,586
The value of depreciation is 3%, 5% and 7% respectively of assets amount.

KANGAYE ENTERPRISES
BALANCE SHEET PROJECTION
Assets: Year 1 (N) Year 2 (N) Year (N)
Equipment 655,000 622,748 584,390
Cash 7,992,904 3,714,852 6,259,746
TOTAL ASSETS 8,647,904 4,337,600 6,844,136
Liabilities:
Equity 200,000 200,000 200,000
Payables 1,006,250 1,725,000 1,725,000
Tax 697,035 712,460 967,660
Net worth 6,744,619 1,700,140 3,951,476
TOTAL LIABILITIES 8,647,904 4,337,600 6,844,136

At the end of the third year the company is expected to hold assets of about N 17,800,000 worth
of assets.

KANGAYE ENTERPRISES
SECTION 6

6.0 INTERNAL ENVIRONMENTAL ANALYSIS

SWOT ANALYSIS
SWOT stands for strength, weakness, opportunities and threats and we have made an analysis in
each case.
Strength

 Produce high quality powder eggs enriched with protein

 Relatively good infrastructure systems
 Good marketing system
 Eggs is not seasonal products and can be eaten any time of the year
 In this area, the business hasn’t been over-exploited

Weakness

 Capital intensive. Starting the business requires a large capital funding.

 Outbreak of poultry disease can reduce supply.

Opportunities

 Expansion into large scale production of by products

 Export to neighboring towns
 Will ensure food security

Threats

 More competition
 Avian diseases
 High cost production
 Threat of import.

6.1 EXTERNAL ENVIRONMENTAL ANALYSIS

Socio-cultural – Eating habits of our consumers will definitely affect our business. Also, the
success of restaurants and other firms that order our products will indirectly affect our business.
Technological - A good technical infrastructure would lead to better production and hence lower
costs. Technology will also mean more effective business marketing.
Economic – economic trends such as demand and supply will determine the sustenance and
profitability of the business. Also inflation rates will affect the way we pay our employees and
the price of the product.

KANGAYE ENTERPRISES
Political – this will include government policies concerning inspection by the ministry of health
and organizations like NAFDAC.

KANGAYE ENTERPRISES