Vegetable Oil Mill Abubakar Maryam Manga

ABUBAKAR MARYAM MANGA – VEGETABLE OIL MILLING BUSINESS PLAN (TEL: 08069199991)
ABUBAK
AR
MARYA
M
MANGA
OIL MILLING
Business
Plan
TEL: 08069199991
2020.
1
TABLE OF CONTENTS
Contents
TABLE OF CONTENTS...................................................................................................................................2
BUSINESS OVERVIEW...................................................................................................................................3
EXECUTIVE SUMMARY.................................................................................................................................5
OUR PRODUCTS AND SERVICES...............................................................................................................7
OUR VISION STATEMENT.........................................................................................................................8
OUR MISSION STATEMENT......................................................................................................................8
OUR BUSINESS STRUCTURE.....................................................................................................................8
ROLES AND RESPONSIBILITIES...................................................................................................................10
SWOT ANALYSIS.........................................................................................................................................14
MARKET ANALYSIS.....................................................................................................................................17
MARKET TRENDS...................................................................................................................................17
OUR TARGET MARKET...........................................................................................................................18
OUR COMPETITIVE ADVANTAGE...............................................................................................................19
SALES AND MARKETING STRATEGY...........................................................................................................21
SOURCES OF INCOME............................................................................................................................21
SALES FORECAST....................................................................................................................................22
FINANCIAL MODEL (WITH 5 YEARS FEASIBILITY).......................................................................................24
LOAN AMOUNT REQUESTED.....................................................................................................................26
LOAN AMORTIZATION...............................................................................................................................28
MARKETING STRATEGY AND SALES STRATEGY......................................................................................30
PUBLICITY AND ADVERTISING STRATEGY..................................................................................................32
OUR PRICING STRATEGY........................................................................................................................33
PAYMENT OPTIONS...............................................................................................................................33
GENERATING FUNDING / STARTUP CAPITAL FOR ABUBAKAR MARYAM MANGA OIL MILL BUSINESS......34
SUSTAINABILITY AND EXPANSION STRATEGY............................................................................................35
2
BUSINESS OVERVIEW
Groundnut is one of the most valuable legume crops of Nigeria and other
tropical countries with 25 percent protein and more than 40% oil. Nigeria is a
major producer of groundnuts accounting for 25 percent of world exports. In
2004 the country had 3500 hectares cultivated and production of 2,750 tonnes
according to NBS data 2013. Groundnut accounted for 70% of total Nigeria export
prior to petroleum oil boom (World Geography of Peanut, 2013). Groundnut is
widely consumed in Nigeria as roasted or boiled nuts in the Western and
Southern parts of the country.
Groundnut has contributed immensely to the development of the Nigerian
economy in general and employment generation among the rural groundnut
farmers and processors in particular. Also, they are important in the confectionary
trade among the rural traders and the stable oil from groundnut is preferred by
the deep-frying industries since it has a smoke
Groundnut oil production is usually done when oil is removed from the
groundnut seed. The manufacturing process can either be done on a small or
medium scale depending on the cost of the project and desired output.
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Groundnut oil is not only used for cooking or as a shortening but also as a base for
confectioneries or to make peanut butter.
Raw materials that are required or producing groundnut oil is the
groundnut seed. The seed produces about 50% of oil and 55% of the meal.
Producing edible cooking groundnut oil is grouped into two groups, mechanical
pressing and solvent extraction.
Groundnuts are oilseeds with high oil content that require mechanical
pressing before being extracted. The production process for groundnut can be
grouped into three stages such as preparation, pressing and crude oil refining.
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EXECUTIVE SUMMARY
Abubakar Maryam Manga Oil Mill is a leading and standard groundnut oil
producing Business here in Sokoto that intends to produce cooking groundnut oil
to domestic and commercial customers not only here in Nigeria but also all over
the world. We will also engage in offering other services in addition to our core
service to our various customers.
Our intention of starting our own groundnut oil producing Business is so as
to be able to sell highly refined and quality groundnut oil that is cholesterol free
to our various customers not only here in Sokoto or Nigeria but all over the world
as well. Our intention is not only to establish our business for profit making but to
also compete favorably with our competitors but nationally and internationally.
Because of the best practices standard, we have set for ourselves, we have
ensured that we procured the best pressing and refining machineries that will
allow us to be able to produce quality and refined groundnut oil. Our packaging
methods are also up to standard as we carry out all our activities with hygiene in
mind so that we are able to set a standard for our customers.
Getting the best distribution networks are very important for this kind of
business and so we have secured the best channels that will see our groundnut
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oils get to the end users. We will continue to seek for the best means at ensuring
that our products get to our consumers at the right time.
We will ensure that we source for our raw materials from reliable vendors
and suppliers, who use organic means to grow the crops, so as we will be able to
give our customers the organic refined groundnut oil that is part of our corporate
identity.
We intend to incorporate good work ethics as our corporate goal and also
be renowned for our transparency standards. In order to ensure that we adhere
to our corporate culture, we will recruit the best professionals possible that not
only understand the industry we are in but also understand our Business policies
and are dedicated to ensuring that we are able to achieve our goals and
objectives.
We will ensure that we get our employees to undergo continuous training
that will not only enhance their skills but make them increase productivity for our
organization. We will also ensure that our employees are well paid and undergo
performance appraisals that will make them put in their best.
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OUR PRODUCTS AND SERVICES
Abubakar Maryam Manga Oil Mill intends to produce and supply highly
refined groundnut oil to its various customers here in Nigeria as well as all over
the world.
Our aim as a business is to ensure that we not only generate revenue but
maximize profit as well and to this end, we intend to create multiple sources of
income so as to be able to have a solid bottom line. The ways we will source for
extra means of revenue will be according to our ambition and the laws of Nigeria.
Therefore, the products and services we intend to offer at Abubakar Maryam
Manga Oil Mill are;
 Sale of processed groundnut oil for domestic and commercial purposes
 Sale of byproduct – groundnut cake
 Sale of groundnut sludge
 Franchise
 Consultancy and Advisory Services
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OUR VISION STATEMENT
Our vision is to ensure that we produce highly refined and quality
groundnut oil that is cholesterol free for our various customers and also be
amongst the top three groundnut oil producers globally.
OUR MISSION STATEMENT
In order to ensure that we achieve our vision, we intend to ensure that we
get the best equipment and also hire the best employees so that we will be able
to achieve our goal of producing highly refined and quality groundnut oil.
OUR BUSINESS STRUCTURE
Building a business structure that will be just right for our groundnut oil
business is very important to us, which is why we are making sure that we put in
all efforts to recruit the right hands that will help us achieve our goals and
objectives.
It is important that our management team understand and identify with
our core vision and objectives and as such is able to effectively communicate
these policies and goals to the lower end staff and ensure that it is effectively
implemented.
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Due to the fact that we intend to offer additional services to our core
service, we will hire more employees than the conventional groundnut oil
producing Business. This is so that the different tasks will be effectively handled
without pushing too many responsibilities in the hands of a few employees.
Below is the business structure we intend to build for Abubakar Maryam Manga
Oil Mill;
 Chief Executive Officer
 Plant Manager
 Purchasing Manager
 Human Resources and Admin Manager
 Accountants
 Marketing Executives
 Truck Drivers
 Customer Care Executives
 Maintenance Team
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 Security Guard
ROLES AND RESPONSIBILITIES
Chief Executive Officer
 Creates strategies and policies for the overall direction of the organization
 Responsible for negotiating with high level clients on behalf of the
organization
 Ensures that policies created are effectively implemented
Plant Manager
 Monitors production processes and ensures that it aligns with both
Business and industry standard
 Develops and implements budgets for production
 Seeks ways to reduce costs without reducing quality
Purchasing Manager
 Sources for reliable vendors and suppliers of raw materials
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 Drafts purchasing contracts and ensures that it is to the benefit of the
organization
 Drafts and implements purchasing strategies on behalf of the organization
Human Resources and Admin Manager
 Responsible for recruiting, giving orientation as well as ensuring that
customers get attuned to the Business policies
 Responsible for employee welfare and incentive packages as well as
carrying out performance appraisals on behalf of the Business
 Ensures that the administrative functions of the organization are carried on
smoothly
Accountants
 Responsible for creating ensuring the implementation of financial
statements, records and budget on behalf of the organization
 Prepares tax records and ensures that they are submitted to the right
authorities
 Responsible for cash inflow and outflow and petty cash

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Marketing Executives
 Drafts effective marketing strategies and modifies them continuously in
order to generate revenue for the organization
 Engages in direct marketing with customers on behalf of the organization
 Manages existing customer relationship in order to help increase customer
loyalty and retention on behalf of the organization
Truck Drivers
 Responsible for delivering products to customers at accurate destinations
 Carry out maintenance on the vehicle when necessary and report major
faults to the management
 Keep traffic laws and regulations and also a logbook
Customer Care Executives
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 Responsible for taking orders, answering enquiries and providing accurate
information to clients
 Ensures that customers’ complaints are readily resolved on behalf of the
Business
 Keeps an updated customer database on behalf of the Business
Maintenance Team
 In charge of maintaining all the equipment and machineries used by the
organization
 Arranges for new parts and replacements for the machineries
 Reports major machinery and equipment faults to the management
Security Guard
 Patrols the facility and its perimeter during work and after work hours to
ensure that there is no trespasser
 Monitors incoming and outgoing people and visitor and responsible for
surveillance equipment
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 Remains updated on security tips and ensures that Business staff is aware
of security tips as well
SWOT ANALYSIS
Due to the fact that we intend to run a standard cooking groundnut oil
producing Business, we are striving to ensure that we put up processes; plan and
structures that will allow us attain this excellence. This is clearly why we have
engaged the services of a reputable business consultant here in Sokoto, to look
through our business concept and determine if the business we are going into is
worthwhile and also if we are going to not only thrive in this business, but also
compete favorably against our competitors.
In view of our request, the business consultant used four attributes
(strengths, weaknesses, opportunities and threats) in order to determine how we
are likely to survive and grow as a business. Therefore, the SWOT analysis that
was conducted on behalf of Abubakar Maryam Manga Oil Mill is as follows;
Strengths
Our strength lies in the fact that we offer our customers’ high-quality
processed groundnut oil which is cholesterol free. This means that customers who
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use other substitutes because they feel those are better for their diet will stick to
our own brand of groundnut oil instead. We are in a location that is not only
strategic but also convenient for our customers and employees to access.
Our facility is one that is conducive enough for our employees, while also
being of high standard hygienically to produce our cooking groundnut oil. Those
which we have chosen to work for our Business is very competent and
experienced especially as regards this industry.
They are also dedicated and committed to our corporate goals and
philosophy.
Weaknesses
The groundnut oil processing industry is a saturated one and so would
require us to adapt strategies that would allow us to stand out against our
competitors. Also, because we are just starting up, we do not yet have the
necessary finances and staff strengths as our already established competitors.
Opportunities
There are several opportunities that abound for us in this industry as
cooking groundnut oil is widely consumed by a whole lot of people. We are

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however seeking innovative ways to attract the health-conscious customers who
have shifted to alternative sources because they feel that groundnut oil isn’t
hygienic enough in helping to achieve their fitness goals. Our advisory and
consultancy services will serve to open up more opportunities for us in this
industry.
Threats
Facing threats as a business faces are to be expected if the business is a
serious one. The threats that we are likely to face as a business will arise from
unfavorable government policies, stiff competition from competitors, as well as
customers’ shift to close substitutes on personal preference grounds. We have
laid down strategies in place that will enable us handle whatever threats we are
likely to face.
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MARKET ANALYSIS
MARKET TRENDS
Cooking groundnut oil, which is referred to as vegetable oil by some, is one
of the oil products in high demand; as a large number of people use it for
consumption as well as for commercial purpose. While there are substitutes for
groundnut oil, the fact that this oil is cheaper makes it why more people use this
oil.
Groundnuts are nuts that can be found at all time and is regarded as highly
nutritional, which is why it is amongst the top nuts recommended by doctors for
women that are not only pregnant but for those that are also health conscious or
going on a diet. Any entrepreneur going into this business will therefore make
good money from it.
Starting this business would require ensuring that technical details are
being put into place. However, there are few groundnut oils processing
businesses here in Nigeria, which makes it very ideal for us to go into this kind of
business and make a tidy profit from it. It is also necessary to ensure that
professionals are being employed to handle all the technical details.

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OUR TARGET MARKET
Cooking groundnut oil is used by a whole lot of people and so this means
that there is a lot of demand for this product, and therefore we cannot
necessarily limit the target market without making a thorough market research.
Our location here in Sokoto is one that is strategic and will allow us to map out
effective plans in order to serve our numerous clients.
The market research we have conducted from reliable facts and statistics
will allow us better understand the characteristics of our target market and the
right strategies that we would draft to be able to cater to this market. Therefore,
from our research, the following groups of people are those that we will be selling
our products and offering our services to;
 Soap Manufacturers
 Confectionaries
 Cosmetic industries
 Food industries
 Grocery Stores and Supermarkets
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OUR COMPETITIVE ADVANTAGE
Our intention of starting a cooking groundnut oil production Business is so
as to be able to give our various customers not only here in Nigeria but all over
the world, quality cooking groundnut oil that is cholesterol free. To be able to
achieve this, we have drafted strategies that will allow us have a competitive
advantage over that of our competitors.
Our first competitive advantage is in the quality of groundnut oil we are
giving our customers all over the world. Because this is oil that is to be consumed,
we have taken great care in ensuring that from the raw materials down to the
processing all go through a high standard of quality checks. We take great pride in
ensuring that our customers can trust our cooking groundnut oil.
We have engaged the services of the best professionals who not only know
this industry thoroughly but also understand how best to make a business
become the world standard we have intended for it. Our employees also
understand our corporate philosophies and goals and are willing and dedicated to
ensuring that we achieve it.
We have put in place processes and plans that will ensure that our
employees receive trainings as at when due. These trainings will allow them to
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have enhanced skills that will also improve their productivity for the Business. We
will also ensure that our employees are well paid and have better welfare
packages than that of their counterparts in similar startups such as ours.
Finally, we will ensure that we put our customers first by not only meeting
but exceeding their expectations. We will ensure that we take good care of our
loyal customers and offer them incentives. We will ensure that we keep an
updated customer database so as to keep in touch with our customers and allow
them be aware of our products and other services that we might be offering.
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SALES AND MARKETING STRATEGY
SOURCES OF INCOME
Abubakar Maryam Manga Oil Mill will be a leading and standard groundnut
oil producing business that has been established with the aim of generating
revenue and maximizing profit not only here in Sokoto, all over Nigeria as well as
globally as well.
We intend to make profits from sales of different products and offering of
services to our various customers. Abubakar Maryam Manga Oil Mill will generate
revenue from the following products and services;
 Sale of processed groundnut oil for domestic and commercial purposes
 Sale of byproduct – groundnut cake
 Sale of groundnut sludge
 Franchise
 Consultancy and Advisory Services
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SALES FORECAST
Groundnut oil is a cooking oil that is being consumed daily by most people
and used for domestic and commercial purposes and therefore will always be in
demand.
Our location here at Sokoto is one that is very strategic and has us very
optimistic of being able to not only generate the needed revenue within one year
but also one that will allow us maximize our profit, as the forecast has shown that
this is highly achievable.
We carried out several researches whilst conducting our sales forecast and
used several assumptions and information from similar start-ups such as ours not
only here in Sokoto but also all over Nigeria so as to be able to get accurate data
to arrive at the below stated projections.
The stated profit before Tax projections for Abubakar Maryam Manga Oil Mill
based on accurate assumptions and data are as follows;
First Fiscal Year-: N4,828,400
Second Fiscal Year-: N15,229,280
Third Fiscal Year-: N18,775,136

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N.B: The above sales projections were done based on certain assumptions and
what was obtainable in the industry at the stated period. The assumptions were
that there won’t be any stringent government policies, no arrival of a competitor
offering same services as we were and also that the economy remains stable.
Should there be any change in the above assumptions, our sales projections for
the stated period will be affected.
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FINANCIAL MODEL (WITH 5 YEARS FEASIBILITY)
PARTICULARS 1st Year 2nd Year 3rd Year 4th Year 5th Year Total (N)
Production in 5 Ltr
gallons (production rate 214318.08
28,800 34,560 41,472 49,766 59,720
of 180 gallons per day)

-
Number of gallons for
packaging to be
28,800 34,560 41,472 49,766 59,720 214,318
purchased per annum

REVENUE
Cash Flow from selling ₦96,768,000.0 ₦139,345,920. ₦167,215,10

annual production ₦80,640,000.00 0 ₦116,121,600.00 00 4.00 ₦600,090,624.00
₦ ₦ ₦ ₦ ₦ ₦
- - - - - -
₦96,768,000.0 ₦139,345,920. ₦167,215,10
TOTAL REVENUE ₦80,640,000.00 0 ₦116,121,600.00 00 4.00 ₦600,090,624.00

DIRECT PRODUCTION
EXPENSES
24
Cost of obtaining and ₦

processing raw material ₦ ₦ 107,495,424.
@ N1500 /gallon ₦ 51,840,000.00 62,208,000.00 ₦ 74,649,600.00 89,579,520.00 00 ₦ 385,772,544.00
Cost of obtaining empty ₦
gallons and printing ₦ ₦ 35,831,808.0
label @ N500/ gallon ₦ 17,280,000.00 20,736,000.00 ₦ 24,883,200.00 29,859,840.00 0 ₦ 128,590,848.00
₦ 0.00
- - - - - 0
₦82,944,000.0 ₦119,439,360. ₦143,327,23
TOTAL ₦69,120,000.00 0 ₦99,532,800.00 00 2.00 ₦514,363,392.00

OPERATIONAL/
RECURRENT EXPENSES
Factory ₦ ₦ ₦ ₦ ₦ ₦
Lease/renovation 350,000.00 300,000.00 300,000.00 300,000.00 300,000.00 1,550,000.00
7 Staff Salary
(20,000/head/month ₦ ₦ ₦ ₦ ₦ ₦
for the first 6 months) 840,000.00 840,000.00 840,000.00 840,000.00 840,000.00 4,200,000.00
Record
Keeping/Stationary/Co ₦ ₦ ₦ ₦ ₦ ₦
mputer/Advert 80,000.00 80,000.00 80,000.00 80,000.00 80,000.00 400,000.00
₦ ₦ ₦ ₦ ₦ ₦
Security 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00 1,200,000.00
Spiral 0.7 TPH Oil Press ₦
Machine 3,284,300.00
500kg Per Day Oil ₦
Refining Machine 3,312,000.00
₦
Filling Machine 368,000.00
25
₦ ₦ ₦ ₦ ₦ ₦
Power generator 15kva 700,000.00 240,000.00 240,000.00 240,000.00 240,000.00 1,660,000.00
Running Cost (purchase
of raw materials,
maintenance, setup, ₦ ₦ ₦ ₦ ₦ ₦
utilities etc) 800,000.00 800,000.00 800,000.00 800,000.00 800,000.00 4,000,000.00
₦ ₦ ₦ ₦ ₦ ₦
TOTAL 9,974,300.00 2,500,000.00 2,500,000.00 2,500,000.00 2,500,000.00 19,974,300.00

EXPENDITURE/ ₦85,444,000.0 ₦121,939,360. ₦145,827,23

PRODUCTION COST ₦79,094,300.00 0 ₦102,032,800.00 00 2.00 ₦534,337,692.00
₦11,324,000.0 ₦17,406,560.0 ₦21,387,872.
NET PROFITS ₦1,545,700.00 0 ₦14,088,800.00 0 00 ₦65,752,932.00
LOAN AMOUNT REQUESTED
Given the financial analysis outlined in the financial model illustrated above, the cell
highlighted in green indicated the total amount that is required to fully setup the milling plant for
Abubakar Maryam Manga Oil Mill and it has been calculated to a total sum of N9,974,300 (NINE
MILLION, NINE HUNDRED AND SEVENTY FOUR THOUSAND, THREE HUNDRED).

26
27
LOAN AMORTIZATION
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Monthly Monthly Monthly Monthly Monthly
ITEMS Deposit= Deposit= Deposit= Deposit= Deposit=
MONTHLY
DEPOSIT ₦ ₦ ₦ ₦ ₦
AMOUNT> 174,550.25 183,277.76 192,441.65 202,063.73 212,166.92
OPENING DEBT
(5% LOAN
CHARGES ₦ ₦ ₦ ₦ ₦
INCLUSIVE) 10,473,015.00 8,797,332.60 6,927,899.42 4,849,529.60 2,546,003.04
₦ ₦ ₦ ₦ ₦
JANUARY 10,298,464.75 8,614,054.84 6,735,457.77 4,647,465.86 2,333,836.12
₦ ₦ ₦ ₦ ₦
FEBRUARY 10,123,914.50 8,430,777.08 6,543,016.12 4,445,402.13 2,121,669.20
₦ ₦ ₦ ₦ ₦
MARCH 9,949,364.25 8,247,499.31 6,350,574.47 4,243,338.40 2,121,669.20
₦ ₦ ₦ ₦ ₦
APRIL 9,774,814.00 8,064,221.55 6,158,132.82 4,041,274.66 1,909,502.28
MAY ₦ ₦ ₦ ₦ ₦
28
9,600,263.75 7,880,943.79 5,965,691.17 3,839,210.93 1,697,335.36

₦ ₦ ₦ ₦ ₦
JUNE 9,425,713.50 7,697,666.03 5,773,249.52 3,637,147.20 1,485,168.44
₦ ₦ ₦ ₦ ₦
JULY 9,251,163.25 7,514,388.26 5,580,807.87 3,435,083.46 1,273,001.52
₦ ₦ ₦ ₦ ₦
AUGUST 9,076,613.00 7,331,110.50 5,388,366.22 3,233,019.73 1,060,834.60
₦ ₦ ₦ ₦ ₦
SEPTEMBER 8,902,062.75 7,147,832.74 5,195,924.57 3,030,956.00 848,667.68
₦ ₦ ₦ ₦ ₦
OCTOBER 8,727,512.50 6,964,554.98 5,003,482.92 2,828,892.26 636,500.76
₦ ₦ ₦ ₦ ₦
NOVEMBER 8,552,962.25 6,781,277.21 4,811,041.27 2,626,828.53 424,333.84
₦ ₦ ₦ ₦ ₦
DECEMBER 8,378,412.00 6,597,999.45 4,618,599.62 2,424,764.80 212,166.92
₦ ₦ ₦ ₦ ₦
CLOSING DEBT 8,378,412.00 6,597,999.45 4,618,599.62 2,424,764.80 0.00
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MARKETING STRATEGY AND SALES STRATEGY
Due to how delicate marketing is, we intend to hire reputable marketing
experts who understand the nature of our business and the industry we are
operating in to help create effective marketing strategies that we will use to be
able to compete favorably against our competitors all over Nigeria.
We will not be limiting our marketing efforts to merely just the
conventional means. We will be making use of unconventional means via
technology to also market and sell our cooking groundnut oil to our target
market. Our marketing team will be well versed in handling all our online affairs
so as to attract more potential customers to our business from other states and
even countries.
We will also empower our marketing team to conduct more market
researches in order to be able to determine new target markets for our business.
Our marketing team will also monitor marketing strategies and remove or modify
those that are thought to be ineffective. We will in fact provide them with all that
is necessary to be able to achieve our corporate sales goals and objectives.
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Therefore the marketing and sales strategies that we intend to adopt for
Abubakar Maryam Manga Oil Mill are;
 Ensure that we introduce our groundnut oil Business officially to
wholesalers and distributors as well as other industry stakeholders
 Throw a grand opening party so as to create awareness about our business
to our target market
 Advertise our cooking groundnut oil business in newspapers (local and
national) as well as on radio and television stations
 Ensure that we engage in direct marketing and sales to our various
customers
 Use our social media platforms such as Facebook, Twitter, LinkedIn and
Google Plus to market our cooking groundnut oil business
 Ensure that our groundnut oil business is listed in local directories (Yellow
Pages) and on online directories as well
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PUBLICITY AND ADVERTISING STRATEGY
In a bid to ensure that we create effective publicity strategies, we intend to
engage the services of a brand consultant who understands the business and the
industry we are in. the brand consultant has been empowered to use
conventional and unconventional means to ensure that we get the awareness we
need for our business not only here in Sokoto but also all over Nigeria.
Below are the platforms we intend to use in creating awareness as well as
advertising Abubakar Maryam Manga Oil Mill;
 Create an official website and use this to create awareness about our
groundnut oil producing Business
 Place adverts in local and national newspapers and on radio and television
stations here in Sokoto State and nationally as well
 Participate in and sponsor relevant community programs here in Sokoto
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 Use our social media platforms such as Facebook, Twitter, LinkedIn and
Google Plus to promote our groundnut oil producing Business
 Place attractive and distinctive bill boards in strategic locations all around
Sokoto State and outside its environs
 Write articles and post on different relevant blogs and websites
OUR PRICING STRATEGY
We intend to set the right price that will just be right for our business and
fair to our customers, we will offer a discount in the first two months of our
operations in order to attract customers to our business. After taking a thorough
look at this strategy, we are convinced that we will not be running at a loss even
though our profit margins might be low for these periods.
PAYMENT OPTIONS
Any smart entrepreneur knows that it is very important for customers to
have convenient means by which they pay for products and services. Therefore,
knowing this, we intend to offer various payment platforms so as to be able to
cater to our various clients and their different preferences.
The different payment options that we therefore intend to make available are;
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 Payment via cash
 Payment via checks
 Payment via bank draft
 Payment via online payment portal
It should be noted that the above payment options were carefully chosen by
us to make payments not only easier for our clients but also to ensure that we are
able to run our business without hitches.
GENERATING FUNDING / STARTUP CAPITAL FOR
ABUBAKAR MARYAM MANGA OIL MILL BUSINESS
We intend to grow this business into one that is of international standard
intends to approach external investors while seeking other means of sourcing for
capital.
Below, therefore are the sources where we intend to generate our start-up
capital from;
 Generate part capital from sale of stocks of personal property
 Source for loan from commercial bank

34
 Generate capital from external private investors
SUSTAINABILITY AND EXPANSION STRATEGY
The way a business is structured determines how long the business will
remain in existence. We are willing to go the extra mile to ensure that we hire
competent professionals who understand the way our kind of business is run and
how best to ensure that our kind of business becomes one that is a force to be
reckoned with nationally and internationally.
The professionals we intend to hire will be one that also understand our
ideology as a business and will remain committed to this ideology and ensure that
it is well communicated to all stakeholders. We will also ensure that we have laid
down processes that will allow for the environment to be conducive work-wise
for our employees.
We will pay our employees well and provide them better welfare and
incentive packages better than their counterparts in similar start-ups such as our
35
across the country. We will also ensure that our employees undergo training so
that they will have better skills that will not only see them enhanced in the
industry but will also ensure better productivity for our business as well.
As much as we intend to generate as much revenue as we can, we will
make sure that we retain at last 30% of our earnings back into our business. This
is to ensure that we do not have to go externally to seek for funds all the time.
Also, putting back our earnings into our business will allow us to be able to not
only grow and sustain the business but also expand it as well.
36

Vegetable Oil Mill Abubakar Maryam Manga

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Vegetable Oil Mill Abubakar Maryam Manga

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ABUBAKAR MARYAM MANGA – VEGETABLE OIL MILLING BUSINESS PLAN (TEL: 08069199991)

major producer of groundnuts accounting for 25 percent of world exports. In

prior to petroleum oil boom (World Geography of Peanut, 2013). Groundnut is

widely consumed in Nigeria as roasted or boiled nuts in the Western and

Southern parts of the country.

Groundnut has contributed immensely to the development of the Nigerian

economy in general and employment generation among the rural groundnut

the deep-frying industries since it has a smoke

groundnut seed. The manufacturing process can either be done on a small or

confectioneries or to make peanut butter.

Raw materials that are required or producing groundnut oil is the

pressing and solvent extraction.

service to our various customers.

Our intention of starting our own groundnut oil producing Business is so as

mind so that we are able to set a standard for our customers.

that our products get to our consumers at the right time.

be renowned for our transparency standards. In order to ensure that we adhere

We will ensure that we get our employees to undergo continuous training

performance appraisals that will make them put in their best.

OUR PRODUCTS AND SERVICES

Therefore, the products and services we intend to offer at Abubakar Maryam

Manga Oil Mill are;

 Sale of processed groundnut oil for domestic and commercial purposes

 Sale of byproduct – groundnut cake

 Sale of groundnut sludge

 Consultancy and Advisory Services

OUR VISION STATEMENT

Our vision is to ensure that we produce highly refined and quality

amongst the top three groundnut oil producers globally.

OUR MISSION STATEMENT

In order to ensure that we achieve our vision, we intend to ensure that we

OUR BUSINESS STRUCTURE

It is important that our management team understand and identify with

without pushing too many responsibilities in the hands of a few employees.

 Chief Executive Officer

 Human Resources and Admin Manager

 Customer Care Executives

ROLES AND RESPONSIBILITIES

Chief Executive Officer

 Responsible for negotiating with high level clients on behalf of the

 Ensures that policies created are effectively implemented

 Monitors production processes and ensures that it aligns with both

Business and industry standard

 Develops and implements budgets for production

 Seeks ways to reduce costs without reducing quality

 Sources for reliable vendors and suppliers of raw materials

 Drafts purchasing contracts and ensures that it is to the benefit of the

 Drafts and implements purchasing strategies on behalf of the organization

Human Resources and Admin Manager

 Responsible for recruiting, giving orientation as well as ensuring that

customers get attuned to the Business policies

 Responsible for employee welfare and incentive packages as well as

carrying out performance appraisals on behalf of the Business

 Ensures that the administrative functions of the organization are carried on

 Responsible for creating ensuring the implementation of financial

statements, records and budget on behalf of the organization

 Responsible for cash inflow and outflow and petty cash

 Drafts effective marketing strategies and modifies them continuously in

order to generate revenue for the organization

 Engages in direct marketing with customers on behalf of the organization

 Manages existing customer relationship in order to help increase customer

loyalty and retention on behalf of the organization

 Responsible for delivering products to customers at accurate destinations