Assignment One Strategic Marketing Plan PDF

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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 f...

Description

Michel Kalemba, MBA-667 Strategic Marketing One, University of Nicosia January 2017

Assignment One:

Strategic Marketing Plan

Submitted by: Student Michel Kalemba

January, 2017 Student Number: R1407D225396

Lecturers: - Sam Sar pong - Chr i st odoul osTr akoshi s

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

One-year strategic marketing plan for Muanasaka Brothers Poultry Farm 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. V.

I.

References.................................................................................................................................................... 12 Appendices.......................................................................................................................................................13

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.

II.

Strategic focus and plan

You will find here the three strategic aspects that guide the marketing plan: the mission, goals and core competence and sustainable competitive advantage of MB.

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.

ii. Financial goals -

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

Policies that empower action At MB we will consider people as the most important asset. Our workforce will reflect the diversity of our consumers regardless of their personality, lifestyle, thought processes, work experience, ethnicity, race, color, religion, gender, gender identity, sexual orientation, marital status, age, national origin, disability or other differences. We take a strong commitment to increasing female participation in the workforce and grow the number of female leaders. We are committed to providing individuals with disabilities with equal opportunity and treatment. We are committed to recognizing individuals within MB who actively support diversity and inclusion in the workforce by a recognition award. 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.

III.

Situation analysis

Internal analysis The internal analysis is very important as it allows to scan all internal factors that may impact our business.

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

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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.

External environmental analysis Two most used tools will be helpful for external analysis: Porter’s five forces model and PESTEL tool.

Porter’s five forces model Simple but powerful, this tool help to understand where power lies in a business situation. This is useful, because it helps to understand both the strength of your current competitive position, and the strength of a position you're considering moving into. The analysis of the five forces for MB is as follows (2): 1. Bargaining Power of suppliers

There is no local supplier of chicks in the whole Kananga city. For the beginning, MB will be importing chicks and eggs from Lubumbashi, Katanga Province, south Democratic Republic of Congo. The challenge will be to ensure on time and good quality of chicks and eggs delivery to get winning the trust of the customer. 2. Competitive Rivalry

There are no local poultry farm in Kananga. Frozen Chicken and egg products are imported, and sold at cheaper price. However, they can neither satisfy the demand nor the quality. So there is a lot of chance for growing poultry Farm Company. 3. Threat of new entrants

The greater the chance for growing a Poultry Company, the greater the threat of new entrants in the industry. 4. Threat of substitute product

It is not obvious that customer will only prefer chickens and eggs in their food. There are a lot of substitutes for the products of the company. Some people may prefer vegetables, fish, goat or any others for many reasons (health, religion, economic …). The purchase power which is low for 70 % of the population, may also limit the access to farm products. 5. Bargaining power of customers

The customers are one of main factors in the external environment. A large proportion of about 80% of consumers has low income / low purchasing power (GDP / capita US $ 499) (3). They will often try to negotiate the price,

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.

Figure 1 Porter's Five Forces Diagram Source: Peter Royle, 2003, Value-Based Marketing

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: Year

2013

2012

2011

2010

2009

2008

2007

2006

%

46.10

49.10

51.4

50.1

60.9

53.2

47.2

48.2

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

Overall Starting a Business Dealing with

DB 2017 Rank

DB 2016 Rankinfo_outline

184

184

96

85

114

129

Change in Rank 0

11

DB 2017 DTF (% points) info_outline

DB 2016 DTF (% points) info_outline

37.57

37.53

85.49

85.49

65.89

62.43

Change in DTF (% points) info_outline

0.04 -

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 Rank

DB 2016 Rankinfo_outline

Change in Rank

Construction Permits

DB 2017 DTF (% points) info_outline

DB 2016 DTF (% points) info_outline

15

Getting Electricity

175

180

Registering Property

156

141

Getting Credit

139

134

Protecting Minority Investors

162

162

Paying Taxes

177

176

Trading across Borders

188

188

Enforcing Contracts

171

170

Resolving Insolvency

169

169

5 15 5 -

1

-

1

-

Change in DTF (% points) info_outline 3.46

33.59

33.37

46.60

49.93

30.00

30.00

-

36.67

36.67

-

40.12

40.12

-

1.26

1.26

-

36.06

36.06

-

0.00

0.00

-

0.22 3.33

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