4.1.1 Market characteristics and customer profile.

The company will specifically be located in Kericho near Kisii medical campus where supply of

goods will be readily available. Customers will be welcomed and allowed to use any mode of

pay like use of till numbers.

Customers of my business are doctors and nurses from various hospitals. They shall be looking

for quality products and quick assistance from the company.

4.1.2 Existing and potential customers.

The company has various markets worldwide thus can be distributed to America, China and

Rwanda. There are also markets within our locations i.e. District Hospital , referral and chemist

within the company. We have a training college called Huduma hospital where we also supply

the anesthesia

4.1.3 Market segments and selected target markets

When it comes to selling products, there are available customers including pharmacies, hospitals

and medical facilities.

4.1.4 Market size

The neighboring referral hospital is well available to fare the ready products and distributing to

their branches hospitals will be sold and also optimize to meet the set target to generate enough

profit.

4.1.5 Competitors.

Our main competitor is Verizon hospital company in Kericho.

Their strength

They have existed for long.

They have many customers.

They have many anesthesia outlets.

Their weakness

High pricing

They are Slow in service provision

Low quality produce

Threats

Loss of customers due to entry in market.

Closing of some of their outlets

4.1.6 Geographical coverage

The company covers approximately six hectares. It is built in a six by four figure where there is

packing of trucks and staff cars. It has enough space to carry out the production.

4.1.7 Market share and estimated sales

Our company has competitors this including the large and the small size producing similar

products. This will show that our company will be able to have a market and will be able to sell

products.
4.2 Marketing strategy

4.2.1 Product positioning.

Our product will be of high quality and sold at a fair price than other companies. Our product

will also be distributed fast so as to save time. Discounts will be offered to referral hospitals and

Kenta Medical training colleges.

4.2.2 Price.

Our products are priced according to their quantity. For example, 2 millimeter bottle ksh 25, 4

millimeter bottle ksh 50. It is considered a fair price to customers thus increasing sales leads to

more profit.

4.2.3 Sales and distribution channels

Distribution and transportation of our products will be done through channel hence I will

appoint an agent to sell the products on behalf of all of us .The products will be packed well in

cartons for easy transportation.

4.2.4 Promotion.

We shall use various methods of promotion and advertisement of the products including the use

of newspapers and magazines to give more information concerning the business. It will also be

advertised using television such a s citizen hence could be easily viewed by many people.

Workers will be promoted according to their best of activity. The more customers an employee

will get, will have to be promoted.

4.2.5 Marketing Budget

A market budget is included in to keep the market.

Costs include

Item Cost
Building 100000
Trucks 2500
Advertisement 30000
Equipment 320000
Promotion 10000
Total 462500

CHAPTER FIVE: FINANCIAL PLAN

Pre-operating expenses.

Pre-operational costs

Chemical powder 100,000

Labor cost 1,345,200
Insurance 50,000
Equipment and machines 108,950
Promotions 20,000
Generator 12,000
Water bills 30,000
Electricity bills 75,000
License 10,000
Total cost 1,845,150

Projected income statement

Particulars 1st year 2nd year 3rd year 4th year

Sales 13,860,000 14,000,000 14,150,000 14,400.000
Chemical 100,000 110,000 120,000 140,000

powder
Labor 1345200 1345200 1345200 1345200
Machine and 212,950 50,000 30,000 _
equipment
Total cost
Gross output

Expenses.

Insurance 50,000 50,000 50,000 50,000

Electricity 75,000 75,000 75,000 75,000
Promotion 20,000 20,000 20,000 20,000
Generator 12,000 - - -
Water bills 30,000 30,000 30,000 30,000
Maintenance cost 10,000 10,000 10,000
License 10,000 10,000 10,000 10,000
Total expenses 197,000 195,000 192,000 192,000
Net profit 11,824,850 12,119,000 12,282,000 12,542,000