Professional Documents
Culture Documents
Submitted by:
Student Michel Kalemba
January, 2017
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
Contents
I. Executive Summary............................................................................................................................................3
II. Strategic focus and plan......................................................................................................................................3
Mission................................................................................................................................................................... 3
Goals....................................................................................................................................................................... 4
III. Situation analysis............................................................................................................................................5
Internal analysis......................................................................................................................................................5
External environmental analysis.............................................................................................................................6
Marketing mix..........................................................................................................................................................10
Financial data and projections..................................................................................................................................10
One (Five)-Year projections..................................................................................................................................10
Implementation plan.............................................................................................................................................11
Evaluation and control..............................................................................................................................................11
IV. References....................................................................................................................................................12
V. Appendices.......................................................................................................................................................13
I. Executive Summary
Muanasaka Brothers (MB in short) is a new venture that is being created by four brothers and located in Kananga
city, Democratic Republic of Congo. The company has a budget of US$150000 for immediate purchase of land,
building and other assets necessary to open a small poultry farm. It is the only farm in the area to provide the local
community with organically raised chickens and eggs.
During the year 1 startup phase, MB will require a period of time to raise and cultivate the products the company
intends to market for sale. As long as the company will accumulate sufficient product to sell, MB will establish a
customer base at local point of sale.
Muanasaka Brothers aims to become a leader in the market and the DR Congo number one chicken and egg
products supplier. The company Headquarter will be settled in Kananga, Kasai Province, while shops that sell the
products will be spread all over the country.
According to medical advices, chicken is a good source of protein and is much healthier to eat than red meat which
is high in cholesterol. Due to its high value and low price, it’s mostly consumed during festive periods and special
occasions.
Poultry farming business is highly profitable if it is properly run under acceptable methods and conditions
conducive for the birds. Kananga city is known for its high rate insecure of ow rate of supply in
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
For the time being, most of chicken and egg products in local market in Kananga come from a huge number of
import. There is no local producers. The future competitors can easily enter the business because of its low cost
and its industry structure is very easy and MB will go into fight in order to take the first place in the market.
There is many factors that may positively or negatively impact on business, either internally or externally. These
factors will be examined and analyzed in details to ensure we get a deep understanding of our business, an optimal
use of available resources for a successful business.
Mission
The mission of Muanasaka Brothers is to establish an organic farming business capable of providing the local
community with healthy and good-quality poultry products that customers will benefit from at reasonable price,
creating motivating jobs and satisfaction for the shareholders.
Goals
i. Non-financial goals
Customer Objectives
- To expand sales to 10% of the existing potential customers by December 2017.
- To increase customer retention by 10 percent by December 2017.
- To develop and use a regularly updated customer database.
- To introduce the existing products into a new market by opening at least one new point of sales by December
2017.
- To introduce at least one new product to the existing markets by December 2017.
- To improve our service approach for new and existing customers by December 2017.
- To increase positive customer feedback by 80 percent.
Operational
- To have all product meet standard of excellence guidelines.
- To increase efficiency through use of wireless or virtual technology.
- To improve internal communications.
- To develop and implement a promotional plan to drive increased business.
- To improve distributor and supplier relationships by December 2017.
- To go for ISO 9001 implementation to increase the quality of the products by December 2017
People
- To develop the leadership abilities and potential of our employees.
- To align incentives and staff rewards with employee performance.
- To develop a framework for continuous learning and best practices.
- To increase by 10 percent its share of poultry farm products sales for all the Province by opening at least one
new sales point by December 2017.
- To Increase revenue by 10% monthly by December 2017.
- To decrease expenses by 5% each month by December 2017.
- To increase net profit by 10%.
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
We are committed to set a zero-tolerance policy toward any type of harassment or discrimination based on gender,
race, color, ethnicity, religion, sex, sexual orientation, age, national origin, disability or any other protected
category under applicable law.
SWOT analysis
SWOT which stands for Strengths, Weaknesses, Opportunities and Threats is the often used method to internally analyze
a company (1).
The information provided by the SWOT tool is helpful to optimally understand the internal strengths (that are resources
and capabilities) the company has, and the external opportunities the firm can take advantage of to counter its internal
weaknesses (lack) and external threats in today’s competitive market.
For MB, the SWOT analysis is as follows:
1. Strengths
- MB will be the first poultry farm in the whole Kananga
- Use of new technology
- Trained and motivated staffs
- Good quality and diversified products at reasonable price to attract and retain customers.
- Integration of ecological and environmental approach in the management of raw materials and waste or
garbage
- Good communication with customers, workers and shareholders.
2. Weaknesses
- First experience in a new market
- New product, unknown brand
- Low budget
- Starting from scratch
- Possible lack of communication between stakeholders
3. Opportunities
- Absence of poultry farms in the area
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
- A growing demand for poultry farm products due to population growth, growth of nutritional and
environmental standards’ awareness amongst the population
- Unfulfilled customer need in quality and quantity
- The opening of the Angolan border with the Province of Kasai.
- The recent reforms of laws related to business climate improvement.
- The adhesion to OHADA (Organization for the Harmonization of Business Law in Africa)
4. Threats
- Unforeseen disease or contamination against the livestock
- Large range of product substitutes in the market
- Political uncertainty and acts of violence and pillage during public demonstrations
- Absence of local suppliers for commodities
- Absence of basic public goods (e.g. poor condition of road) and rely on informal employment
- Limited access to bank facilities and credit in the country
- Economic factors: Low purchasing power of the population, inflation, unemployment.
- Competition from poultry product importers/Producers
- Unpredictable rise in the price of commodity for poultry feed.
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
sometimes even want to exclude from dietary staple they consider costly. We will need to maintain an efficient
communication network with customers.
Beside the Porter’s five forces model, the PESTEL analysis is important as well.
PESTLE analysis
PESTEL is an acronym for Political, Economic, Social, Technological, Legal and Environmental. It is useful to
analyze the external macro-environment that affect the firm (4).
1. Political environment
The main political issue in Democratic Republic of Congo remains the uncertainty and the instability of political
situation.
The electoral cycle that was to begin in 2015 and lead to the presidential election by the end of 2016 has not been
organized. This is causing a socio-political crisis that takes proportions increasingly worrying and risks plunging
the country into chaos (5). A political dialogue has just been held, at the end of which a political agreement
scheduling the election in December 2017 has been signed between the ruling majority and the opposition and civil
society. MB will take into account not only the threats but also the opportunities this unstable situation could offer.
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
2. Economic environment
Democratic Republic of Congo try to combine elements of the capitalism and those of command social economy.
Many economic decisions are made in the market by the government. For some goods, “Prices are controlled and
regulated by the government” [6]. But individuals also play a role in the allocation and distribution of resources and
means of production. That is to say MB will be operating in a bit mixed economic system [7]. Limited access to
bank (hight interest rates between 15 and 24 % (8), short deadlines …), absence of institutional support or
facilitation for private-sector development, lack of basic public goods (e.g. poor conditions of road) and rely on
informal employment.
.
More additional economic data are:
GDP (purchasing power parity): $62.87 billion (2015 est.) (9)
Kananga town accounts 1219413 people with GDP / capita US $ 499
Inflation rate: 5.52(July 2016), 1.35 (April 2013), 511.21 (December 2000) (10)
Unemployment rate: 46.10% in 2013
The below table chows the progressive unemployment rate between 2006 and 2013:
3. Technological environment
The benefits of technology in business is not any more to demonstrate. At MB, we should take advantage of
technology to ensure the growth of productivity, quality of products and services, continuous training of our staff
and others. Kananga is known for not having sufficient supply of energy. This lack of energy slows down the
progress in technology, ranking the city of Kananga among the last in development through the country. But the
running electrification projects based on solar energy and the ongoing construction of the Hydraulic-power dam
currently offer good medium-term development prospects. Meanwhile, an initial investment in energy (solar)
would be vital for empowerment and significant way to get the benefit of the technology.
4. Social environment
High poverty rate. Poverty rate decrease from 71% in 2005 to 63% in 2012, and remains high in the DRC. World
bank ranked the country 176 out of 187 countries on the Human Development in 2015, and its per capita income,
which stood at $380 in 2014 (Atlas method), is among the lowest in the world (11).
The population is composed of more than 60 percent of young people, with low revenues, many institutions of
higher and university education are emerging gradually, the unemployment rate is high and the people mainly rely
on food crop and informal small trade activities.
5. Legal
According to Doing Business, several laws have been adopted in recent years to improve the business climate in the
DRC, although much remains to be done in matters of business regulation (12).
Topics DB 2017 DB 2016 Change in DB 2017 DTF (% DB 2016 DTF (% Change in DTF (%
Rank Rankinfo_outline Rank points) info_outline points) info_outline points) info_outline
Starting a
96 85 85.49 85.49 -
Business 11
Dealing with 114 129 65.89 62.43
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
Topics DB 2017 DB 2016 Change in DB 2017 DTF (% DB 2016 DTF (% Change in DTF (%
Rank Rankinfo_outline Rank points) info_outline points) info_outline points) info_outline
Construction
15 3.46
Permits
Getting
175 180 33.59 33.37
Electricity 5 0.22
Registering
156 141 46.60 49.93
Property 15 3.33
Trading across
188 188 - 1.26 1.26 -
Borders
Enforcing
171 170 36.06 36.06 -
Contracts 1
Resolving
169 169 - 0.00 0.00 -
Insolvency
=Doing Business reform making it easier to do business. =Change making it more difficult to do business.
6. Environmental
Kananga is a city located in the center of the DR Congo where it rains heavily seven months out of 12 in the year,
some rivers flow through the city, and a rich vegetation in diversity. Intensive agricultural and farming activities, or
tourism are not developed. There is neither industrial activities.
CUSTOMER ANALYSIS
Our main customers are households and in this region, household’s medium size is 6 people. We also target other
group of like young people.
The households are classified into 3 categories namely poor 60 %, medium 30 % and rich 10 % (mostly found in
cities).
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
On the geographical basis, at the beginning there will be a single point of sale located in the popular district of the
city. Then, additional outlets will be opened in the outlying districts as well as across the province and the whole
country. Each retail outlet will be specialized and restricted to the distribution of the requested range for the zone.
A processing chain will allow to diversify the products in a varied range of tastes according to preference according
to the age groups of the population. There will be products dedicated exclusively to children, young people, all the
household, etc.
Our products will also target the level of income, whether low, middle or high class.
Marketing mix
MB opt for aggressive marketing strategy and will be combining all factors that can be controlled to influence
consumers to purchase its products
c. Product strategy
Our products are: live chicken, fresh chicken eggs, chicken eggs in vinegar, stuffed chicken eggs, chicken skewers,
chicken wings, chicken nuggets, etc. In packages with attractive colours.
d. Price strategy
Our prices will be set slightly lower than the competitors’ prices. We then count with a limited profit, providing
also price discount on a bulk amount of product and offer promotional price and discount on some types of festival.
This could significantly increase our market share.
e. Promotion strategy
Promotion channels for MB products are Radio, TV-advertising, hoardings, sales promotions, sales organizations
and Doctors etc.
f. Distribution Strategy
We opt for Selective distribution which involves to using a limited number of outlets in a geographical area to sell
our products.
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
P&L M A M J J A S O N D J F Total
Sales 0 0 0 0 0 10000 12000 15000 17000 17000 17000 17000 105000
Cost of Sales 0 0 0 0 0 2500 2500 3000 4000 4000 4000 4000 24000
Gross Profit 81000
Less Expenses
Depreciation 40000
Expenses 60000
100000
Net Profit / (Loss) -19000
For the first year of operation, sales are made over seven months with a progressive trend and losses are estimated
at $ 19,000. But starting in the second year, the business will become profitable.
Implementation plan
Activity
M A M J J A S O N D J F
01 01 01 01 01 01 01 01 01 01 01 01
Acquiring authorizations
Marketing activities
Purchase of chicks
Purchase of food
Medical care
Selling products
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
Premise control
Check and monitor systematically and continuously whether the planning premise on which strategy is based is still
valid
That include monitoring of environmental factors like regulation, technology, inflation, interest rates on the one
hand and the industrial factors like suppliers, competitors, barriers to entry, product substitutes on the other hand.
First of all, we will agree on which factors are to be considered keys premises.
A monitoring system for all the keys premises must be put in place and implemented on the basis of updated
information for all the company functional areas.
a. Implementation control
Implementation control will be designed to assess whether the overall strategy should be changed in light of the
result associated with the incremental actions that implement the overall strategy.
By monitoring strategic thrusts or by milestone reviews.
b. Strategic surveillance
Strategic surveillance will be designed to monitor a broad range of events inside and outside the firm that are likely
to affect the course of its strategy.
c. Special alert control
Contingency plan along with a crisis team for initial response must be in place in order to address unpredictable
crisis situations that may have an effect on company’s strategy. Furthermore, staff members must be trained on
initial responses to address some crisis’ situation that may affect the firm.
IV. References
(1) https://www.mindtools.com/pages/article/newTMC_05.htm
(2) https://www.mindtools.com/pages/article/newTMC_08.htm
(3)https://www.populationdata.net/pays/republique-democratique-du-congo/
(4) http://www.netmba.com/strategy/pest/
(5) http://mediacongo.net/article-actualite-21493.html
(6) http://www.heritage.org/index/country/democraticrepubliccongo
(7) TYPES OF ECONOMIC SYSTEMS, http://www.shmoop.com/economic-systems/types.html
(8) http://www.onewovision.com/actu-rdc/Fixation-des-taux-d-interets-debiteurs-des-banques-J-C-
Masangu-exclut-toute-divergence-avec-le-gouvernement-et-reprecise,004b4472125352246003001
(9)http://www.indexmundi.com/democratic_republic_of_the_congo/gdp_(purchasing_power_parity).html
(10) http://www.tradingeconomics.com/congo/inflation-cpi
(11) http://www.worldbank.org/en/country/drc/overview
(12)http://www.doingbusiness.org/data/exploreeconomies/congo-dem-rep/
(13)http://onstrategyhq.com/resources/examples-of-strategic-objectives/
(14) http://www.quickmba.com/strategy/generic.shtml
(15) http://smallbusiness.chron.com/examples-grand-strategies-businesses-14377.html
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
(16)http://www.lavoixdupaysan.org/lejournal/courrier.php?
subaction=showfull&id=1310563365&archive=&start_from=&ucat=3&
(17) http://www.businessnewsdaily.com/4679-corporate-social-responsibility.html
(18) http://www.kaowarsom.be/documents/Conferences/DHAESE.pdf
V. Appendices
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.
Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017
Communication 1000
Water 1000
2000
Staff Training 5000
5000
Maintenance 2000
2000
Remuneration
1 Human Resources Associate $/month 12 650 7800
1 Admin/Finance Associate $/month 12 650 7800
1 Marketing $/month 12 650 7800
1 Aviculture(Agro-veterinary) $/month 12 650 7800
1 Sales Clerk $/month 12 450 5400
1 Driver $/month 12 300 3600
4 Guards $/month 48 200 9600
10 Laborers Package 1000
50800
Exploitation charges 70650
Unforeseen 5% of exploitation charges 1 1 3533
TOTAL 150000
Report submitted to the University of Nicosia in partial fulfillment of the requirements of the MBA-667 Strategic Marketing.