Muger Cement (Ethiopia) Plc

Addis Ababa
 Subject: Request for distributorship of cement

Business Overview

Yotatef Construction materials Wholesale Trading plcis planning to engage in many

more Business with a great potential of young graduated Teams, highly skilled
profile and good working discipline in the region Oromia and throughout
Ethiopia. All the teams’ birth at Muger&Inchini village. As per our government
job creation and development strategy Yotatef Construction materials Wholesale
Trading plc looking forward to be cement distributor of Muger
cement ,oromia ,Ethiopia with many more mutual benefits. We are planning to
do social responsibility, job creation; local farm awareness, jobless youth
training and all the people must take responsibility about the factory security
and Daily production process to be smooth and free from any potential risk
especially external entity.Through it all, we have great channel for huge
quantities of cement for retailors,government and private mega projects as well
as household consumption using our warehouse will get approval from oromia
regional office then we can do our contribution for the company product
availability throughout the region. Our Business Development experience in
the sector is a great asset in understanding the cement market and helps to
boost the portfolio.

Cement is one product that is key in the construction industry; as a matter of

fact, this is the reason why cement distribution business is a thriving business
enterprise in Ethiopia. Businesses that are involved in the distribution of
cement basically get their supply of cement from cement manufacturers like
Muger Cement factory then supply to construction sites, retailers and building
contractors.

The cement distribution line of business is indeed a thriving line of business

and pretty much active in Ethiopia, This line of business is responsible for the
employment loads of people directly and indirectly all around Supporting job
creation in the Village weather educated youth and Local Farms.

Any aspiring entrepreneur who is considering starting a cement distribution

business whether on a small scale or large scale should ensure that he or she
conducts thorough market survey and feasibility studies so our company as to
get it right. The truth is that this type of business does pretty well when it is
strategically positioned. Places where there are loads of construction works
going on is ideal for this type of business.

Over and above, the cement distribution business is a profitable business

venture and it is open for any aspiring entrepreneur to come in and establish
his or her business; you can choose to start on a small scale with just a shop
in a street corner or if you have the capital and business exposure, then you
can choose to start on a large scale distributing cement all across construction
sites in Ethiopia.

Executive Summary

Yotatef Construction materials Wholesale Trading plc is standard cement and

building materials distribution business that will be based in Muger–Oromia
region, Ethiopia. We are registered by Trade licensed Authority

Although we intend starting out from a warehouse in inchini,holeta servicing

construction sites in an around Ambo and Oromia and nearby cities, but that
will not in any way stop us from maximizing our potential in the cement
distribution line of business. We hope to grow the business beyond Oromia
Region –other cities in East, West, south, north and throughout the Ethiopia.

Our business goal as a cement distribution company is to become the number

one choice for construction companies in Ethiopia.  As a business, we are
willing to go the extra mile to invest in building a standard cement distribution
company that won’t in any way go against the law of Ethiopia and also to hire
efficient, create more jobs and dedicated employees. We have been able to
secure permits from all relevant departments both at the local government,
state and national level.

Yotatef Construction materials Wholesale Trading plc is set to redefine how standard
cement distribution businesses should be run,

The demand for cement is not going to plummet any time soon because there
will always be construction of new facilities, roads and even renovation works
in and around the region – Ethiopia, which is why we have put plans in place
to continue to explore all available markets around the communities where we
intend retailing our cement.

In the nearest future, we will ensure that we create a wide range of distribution
channels all across Oromiaand throughout Ethiopia market. With that, we
know we will be able to maximize profits in our business.

Our strongest selling point at Yotatef Construction materials Wholesale Trading plcis
our unique distribution channels. There is hardly any customer that will
purchase our cement who would not want to come back and make more
purchases.

Yotatef Construction materials Wholesale Trading plcwill at all time demonstrate her
commitment to sustainability, both individually and as a firm, by actively
participating in our communities and integrating sustainable business
practices wherever possible. We will ensure that we hold ourselves accountable
to the highest standards by meeting our customers’ needs precisely and
completely.

Our plan is to position Yotatef Construction materials Wholesale Trading plcto

become the leading brand in the cement distribution line of business. This
might look too tall a dream but we are optimistic that this will surely come to
pass because we have done our research and feasibility studies and we are
confident that in Oromia region which has loads of construction works going
on is the right place to launch this type of business before spreading to other
cities in Ethiopia.

Our product and services

We are very much aware of the importance of having very good products and
services. At Yotatef Construction materials Wholesale Trading plc, we distribute
cement from Muger cement production companies all across oromia and the
other region market.

Our intention of starting Yotatef Construction materials Wholesale Trading plc is to

make profits from the cement distribution line of business and we will do all
that is permitted by the law in Ethiopia to achieve our business aims and
ambition.

Our Vision Statement

Our vision as a cement distribution business is to become the leading company

in this line of business in oromia and another region across Ethiopia.

Our Mission Statement

Our mission is to build a highly profitable and thriving cement distribution

company whose distribution channels spreads all across construction sites in
major cities in Ethiopia and nearby countries like Djibouti, Sudan. We want to
build a business that will be one of the biggest cement and building materials
distributor in Ethiopia.

Our Business Structure

Ordinarily, we would have established a cement distribution business with few

employees, but as part of our plans to build a top flight cement distribution
business in Oromia, we have perfected plans to get it right from the onset
which is why we are going the extra mile to ensure that we have competent
employees to occupy all the available positions in our company.
The picture of the kind of cement distribution business we intend building and
the business goals we want to achieve is what informed the amount we are
ready to spend to ensure that we build a standard business and robust
distribution network.

In view of that, we have decided to hire qualified and competent hands to

occupy the following positions at Yotatef Construction materials Wholesale Trading
plc;

 Chief Executive Officer

 Warehouse Manager
 Human Resources and Admin Manager
 Merchandize Manager
 Sales and Marketing Manager
 Information Technologist
 Accountants / Cashiers
 Customer Services Executive
 Drivers / Distributors

Roles and Responsibilities

Chief Executive Officer – CEO:

Increases management’s effectiveness by recruiting, selecting, orienting,

training, coaching, counseling, and disciplining managers; communicating
values, strategies, and objectives; assigning accountabilities; planning,
monitoring, and appraising job results; developing incentives; developing a
climate for offering information and opinions; providing educational
opportunities.

Creates, communicates, and implements the organization’s vision, mission,

and overall direction – i.e. leading the development and implementation of the
overall organization’s strategy.
 Responsible for fixing prices and signing business deals
 Accountable for providing direction for the business
 Creating, communicating, and implementing the organization’s vision,
mission, and Responsible for signing checks and documents on behalf of the
company
 Evaluates the success of the organization

Admin and HR Manager

 Responsible for overseeing the smooth running of HR and administrative

tasks for the organization
 Defines job positions for recruitment and managing interviewing process
 Carries out induction for new team members
 Responsible for training, evaluation and assessment of employees
 Responsible for arranging travel, meetings and appointments
 Oversees the smooth running of the daily office activities.

Warehouse Manager:

 Responsible for organizing the safe and efficient receipt, storage and
dispatch of warehoused goods (cements and building materials)
 Responsible for liaising with customers, suppliers and transport companies
 In charge of planning, coordinating and monitoring the receipt, orderly
assembly and dispatch of cement and building materials.
 In charge of coordinating the use of automated and computerized systems
where necessary.
 Responsible for producing regular reports and statistics on a daily, weekly
and monthly basis.
 Ensure that the warehouse facility is in tip top shape and goods are
properly arranged and easy to locate
 Supervise the workforce in the warehouse floor.

Merchandize Manager
 Manages vendor relations, market visits, and the ongoing education and
development of the organizations’ buying teams.
 Responsible for the purchase of cements and building materials for the
organizations.
 Responsible for planning sales, monitoring inventory, selecting the
merchandise, and writing and pricing orders to vendors.
 Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

 Manages external research and coordinate all the internal sources of

information to retain the organizations’ best customers and attract new
ones
 Models demographic information and analyze the volumes of transactional
data generated by customer purchases
 Identifies, prioritizes, and reaches out to new partners, and business
opportunities at all
 Identifies development opportunities; follows up on development leads and
contacts; participates in the structuring and financing of projects; assures
the completion of development projects.
 Responsible for supervising implementation, advocate for the customer’s
needs, and communicate with clients
 Develops, executes and evaluates new plans for expanding sales
 Documents all customer contact and information
 Represents the company in strategic meetings
 Helps to increase sales and growth for the company

Information Technologist

 Manages the organization’s website

 Handles ecommerce aspect of the business
 Responsible for installing and maintenance of computer software and
hardware for the organization
 Manages logistics and supply chain software, Web servers, e-commerce
software and POS (points of sale) systems
 Manages the organization’s CCTV
 Handles any other technological and IT related duties.

Accountant/Cashier:

 Responsible for preparing financial reports, budgets, and financial

statements for the organization
 Provides managements with financial analyses, development budgets, and
accounting reports; analyzes financial feasibility for the most complex
proposed projects; conducts market research to forecast trends and
business conditions.
 Responsible for financial forecasting and risks analysis.
 Performs cash management, general ledger accounting, and financial
reporting
 Responsible for developing and managing financial systems and policies
 Answerable to administering payrolls
 Ensures compliance with taxation legislation
 Handles all financial transactions for the organization
 Serves as internal auditor for the organization

Client Service Executive

 Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone)
provides the client with a personalized customer service experience of the
highest level
 Through interaction with customers on the phone, uses every opportunity to
build client’s interest in the company’s products and services
 Manages administrative duties assigned by the human resources and admin
manager in an effective and timely manner
 Consistently stays abreast of any new information on the organizations’
products, promotional campaigns etc. to ensure accurate and helpful
information is supplied to customers when they make enquiries

Distribution Truck Drivers

Assist in loading and unloading cement and building materials

Keeps a record of vehicle inspections and make sure the truck is equipped with
safety equipment

Assists the transport and logistics manager in planning their route according
to a distribution schedule.

Local-delivery drivers may be required to sell products or services to stores and

businesses on their route, obtain signatures from recipients and collect cash.

Inspect vehicles for mechanical items and safety issues and perform
preventative maintenance

Complies with truck driving rules and regulations (size, weight, route
designations, parking, break periods etc.) as well as with company policies and
procedures

Collects and verifies delivery instructions

Reports defects, accidents or violations

SWOT Analysis

Due to our drive for excellence when it comes to running a standard cement
distribution business, we were able to engage some of the finest business
consultants in Addis Ababa to look through our business concept and together
we were able to critically examine the business and access ourselves to be sure
we have what it takes to run a standard cement distribution business that can
compete favorably in the cement distribution line of business.
In view of that, we were able to take stock of our strengths, our weakness, our
opportunities and also the threats that we are likely going to be exposed to in
ethiopia, Oromia and also in other cities that we intend distributing our
cements and building materials.

Here is a preview of what we got from the critically conducted SWOT Analysis
Yotatef Construction materials Wholesale Trading plc

Strength:

Our strength lies in the fact that we have a robust distribution network that is
spread all across Ethiopia. We have good business relationship with major
construction and Mega projects companies in Ethiopia, and that has positioned
us to meet the demand for cement in Ethiopia even if the demand tripled over
night.

Another factor that counts to our advantage is the background of our Chief
Executive Officer; he has a robust experience in the industry and also a pretty
good academic qualification to match the experience acquired which has placed
him amongst top flight businessmen in the region. We are not ignoring the fact
that our team of highly qualified workers will also serve as strength for our
organization.

Weakness:

We do not take for granted the facts that we have weaknesses. In fact, the
reality that we are setting up a cement distribution business in a city with
other cement retailing businesses might likely pose a challenge for us in
breaking into the already existing market in Ethiopia with other brand of
cement. In essence our chosen location might be our weakness.

Opportunities:

The opportunities available to us are unlimited. There are a lot of construction

projects going on every day and all what we are going to do to push our cement
to them is already perfected. Oromia and other similar towns in Ethiopiais just
ideal for the cement distribution business because there are loads of
construction projects in these locations.

Threat:

The threat that is likely going to confront us is the fact that we are competing
with already established cement distribution businesses in Oromia and also
there are other entrepreneurs who are likely going to launch similar businesses
within the location of our business. Of course, they will compete with us in
winning over the available market.

Another threat that we are likely going to face is unfavorable government

policies and economic downturn. Usually economic downturn affects the
construction cum real estate industry which in turn will affect the purchase of
cement or other building materials.

MARKET ANALYSIS

Market Trends

It is common trend in the cement distribution business to find cement

distribution companies positioning their business in locations and
communities where construction projects are ongoing. If you make the mistake
of positioning this type of business in highbrow areas or already developed
areas, you are going to struggle to make headway in the business.

Lastly, in the bid to stay afloat and continue to make profits from this
business, most people that distribute cements and building materials tends to
look beyond the market in their immediate community. This is why you will
find standard cement distribution companies engage in the distribution of
cement to different states of regions.

Our Target Market

When it comes to retailing, or distributing cements and other building
materials, there is indeed a wide range of available customers. In essence, our
target market can’t be restricted to just a group of people, but to all players in
the construction industry.

In view of that, we have conducted our market research and we have ideas of
what our target market would be expecting from us.

Our Competitive Advantage

The fact that anybody with a business cum retailing skills and the required
startup capital can decide to start cement distribution business means that the
business is open to all and sundry hence it is expected that there will be much
competition in the industry. There is hardly any community that you won’t find
one or more people retailing cement especially on a small scale level.

As a standard cement distribution company, we know that gaining a

competitive edge requires a detailed analysis of the demographics of the
surrounding area and the nature of existing competitors. And even if you are
successful at first, new competitors could enter your market at any time to
steal your regular customers. Hence we will not hesitate to adopt successful
and workable strategies from our competitors.

Another competitive advantage that we have is the vast experience of our

management team, we have people on board who understand how to grow a
business from the scratch to becoming a national phenomenon. Our large and
robust distribution network and of course our excellent customer service
culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will
be among the best within our category in the industry, meaning that they will
be more than willing to build the business with us and help deliver our set
goals and achieve all our aims and objectives. We will also give good working
conditions and commissions to freelance sales agents that we will recruit from
time to time.

SALES AND MARKETING STRATEGY

Sources of Income

Yotatef Construction materials Wholesale Trading plc is established with the aim of
maximizing profits in the cement distribution line of business both in Oromia
and throughout key cities in Ethiopia and we are going to go all the way to
ensure that we do all it takes to sell our cement to a wide range of customers
who are engage in construction and building projects.

Sales Forecast

One thing is certain when it comes to a cement distribution business, if your

shop is centrally positioned and easily accessible, then you will always attract
customers cum sales and that will sure translate to increase in revenue
generation for the business.

We are well positioned to take on the available market in Oromia Region and
every other state in Ethiopia where our cement and building materials will be
sold and we are quite optimistic that we will meet our set target of generating
enough profits from our first six months of operation and grow the business
and our clientele base.

We have been able to critically examine the cement distribution line of

business, we have analyzed our chances in the industry and we have been able
to come up with the following sales forecast. The sales projections are based on
information gathered on the field and some assumptions that are peculiar to
startups in Oromia.

Below are the sales projections for Yotatef Construction materials Wholesale Trading
plc
First Fiscal Year: 10,000,000 Million Birr

Second Fiscal Year: 25,000,000 Million Birr

Third Fiscal Year: 42,000,000 Million Birr

N.B: This projection was done based on what is obtainable in the industry and
with the assumption that there won’t be any major economic meltdown and
there won’t be any major competitor offering same products as we do within
the same location. Please note that the above projection might be lower and at
the same time it might be higher.

Marketing Strategy and Sales Strategy

Before choosing a location to launch Yotatef Construction materials Wholesale

Trading plc, we conducted a thorough market survey and feasibility studies in
order for us to be able to penetrate the available market in Oromia Region and
other cities where we intend positioning our business. We have detailed
information and data that we were able to utilize to structure our business to
attract the number of customers we want to attract per time.

We hired experts who have good understanding of the cement distribution line
of business to help us develop marketing strategies that will help us achieve
our business goal of winning a larger percentage of the available market in
Oromia Region and Ethiopia at large.

In summary, Yotatef Construction materials Wholesale Trading plc will adopt the
following sales and marketing approach to sell our products;

Introduce our cement distribution business by sending introductory letters to

construction companies, building contractors, merchants and other
stakeholders both in Oromia and other states in Ethiopia.

Advertise our products in community based newspapers, local TV and radio

stations
Leverage on the internet to promote our cement distribution business

Engage in direct marketing and sales

Encourage the use of Word of mouth marketing (referrals)

Publicity and Advertising Strategy

Regardless of the fact that our cement distribution business can favorably
compete with other leading cement distribution businesses in Ethiopia as a
whole, we will still go ahead to intensify publicity for all our products and
brand.

Yotatef Construction materials Wholesale Trading plchas a long-term plan of opening

outlets in various locations all around Oromia region and other key cities in the
region which is why we will deliberately build our brand to be well accepted in
Oromia.

As a matter of fact, our publicity and advertising strategy is not solely for
selling our products but to also effectively communicate our brand. Here are
the platforms we intend leveraging on to promote and advertise Yotatef
Construction materials Wholesale Trading plc;

Place adverts on both print (community based newspapers and magazines) and
electronic media platforms

Sponsor relevant community programs

Leverage on the internet and social media platforms like Instagram, Facebook,
twitter, et al to promote our brand

Install our billboards on strategic locations all around major communities in

Oromia region

Ensure that all our staff members wear our customized clothes, and all our
official cars and distribution trucks are customized and well branded
We are keen to work with your esteemed company. We understand the Muger
cement up on entrance to the market scenes darg regime dominated the
Ethiopian market and being able to work with such a leading corporate is of
our great interest. We do have a credit facility worth more than 3 Million Birr
with our partner banks. The existing customer bases are definitely an asset in
going forward with our business.

This is to officially request your esteemed corporate to delegate us as

distributors and help us create opportunity to boost its market dominance as
well as maintain its lead. If we are granted the opportunity, we are ready to
procure in cash equivalent quantities worth more than a million at a time. In
addition, having significant corporate customers, we will be able to offload OPC
more than PPC products much better, thereby maximizing the profitability of
your company as well.

Being able to be part of the manufacture conglomerate is a huge privilege and

we cannot wait to hear your positive response. We are both excited and are in
fact well aware of the scale of the work ahead and we are looking forward to it.
Hence, once again, we would like to forward our deepest gratitude in advance.

Sincerely,