CHAPTER THREE

3.0 MARKETING PLAN

The business intends to deal with construction tools and green groceries. The market comprises
of all those who will need the business service thus they will be able to buy them. The market
research carried out by the entrepreneur shows that it will cater for those mainly in Eldama
Ravine town but will also cater for those in outskirts.

3.1 Customers

The business will have potential customer technology will be classified to their classes:-

- Individuals customers
- Institution customers
- Commercial customers

3.1.1 Individual Customers

This will attribute to those customers in Eldama Ravine town who will be purchasing goods.
They will be buying green groceries for individual use. The bargaining agreement will be
considered since they will be buying product in lower prices

3.1.2 Institutional customers

In Eldama Ravine there are many schools both private and public schools such as new light;
Holy wood; Ebenezer while public secondary schools around area

3.1.3 Commercial customers.

The entrepreneur intends to make arrangement with other small traders who are located in Eldma
Ravine.

3.2 Market size

The approximated number of customers living in Eldama Ravine is 75000 while the total
population is 85000 of which the actual population that will need the entrepreneur product is
15,000 people while other will be served by other competitors who are:-
The current business status.

Current business Population served Percentage ratio

mavuno green groceries 20,000 26.7%
Wagitao Green groceries 16,000 21.3%
Annex green groceries 22,000 29.3%
Sunrise green groceries 17,000 22.7%
Total population 75,000 100%
3.3 Competition
3.3.1 Description of potential competition

The business will encounter competition from other green groceries:

They include:-

Chuma Green groceries

Sunrise green groceries
Annex green groceries
Bamburi green groceries
3.4 Methods of promoting and advertising
Advertising strategy.

It is extremely important for a business to create awareness of its existence potential and already
existing customers through various ways. In such a manner that it will portray a good image and
in form people more about the business as the green groceries in which it is dealing with. The
entrepreneur has learnt that in order to promote the business product and services she will be
required to use various tactics so as to win more customers.

Promotion strategy

The business will use 8% of its profit to ensure that there is an effective promotion of green
groceries in the business. This will be done regularly more so when the level of customer s
decreases. This will be in place so as to check the awareness of people with the business. The
entrepreneur will evaluate the effective of promotion through the analysis of sales at a given
period of three months it will help to show whether the sales of green groceries have either
increased or decreased. The promotion method increases the sales in the business then the
business will use it to be promoting its green groceries.

3.5 Pricing Strategy

The business will determine the best pricing policy to be followed by first determining the cost
of goods and then by considering the prevailing commercial trade. The technology is changing
very fast. The entrepreneur also will consider the level of competition in order to determine the
best pricing policy to be adapted. This will be based on this consideration so as to gauge the
business with others.

a. Government policies – Government may increase taxes on the business product as thus
making the entrepreneur to raise the price, however if the government lowers the taxes which
they keep on charging the entrepreneur will also lower the price of the commodities.
b. Transport facilities. If the transportation means becomes more expensive than the price of the
green groceries are expected to rise.

3.6 Sale tactics

The main tactics which the entrepreneur will use to make more sales is to locate the business in a
place where it can be accessed by customers and it’s visible. This will motivate the customers
since they will not be having difficulties in trying to look for the business green groceries.

Offering transport: The business will also be offering transportation facilities to the customers
who wish their goods to be transported. This tactics will enable the customers who will not be
able, willing to buy bulk goods due to transportation problems which their goods are to be
transported.

3.7 Distribution Strategy

Mode of transport- goods will be transported by roads. This is because it is the means which is
available and not costly. Goods will be transported by Lories or pickups for mode of
transportation along Eldama Ravine – Nairobi- Kutus road which passes through the town. This
will fasten the transportation of goods.