YOGHURT SUPPLY BUSINESS PLAN

PRESENTER: DAISY JEPNGETICH

INDEX: 26534205303
COURSE: DIPLOMA IN SECRETARIAL STUDIES
COURSE CODE: 2901
ADMISSION: 6828
PAPER NO: 107

TABLE OF CONTENTS
EXECUTIVE SUMMARY...........................................................................................................4
MISSION........................................................................................................................................5
VISION...........................................................................................................................................5
OVERALL GOAL.........................................................................................................................5
Specific Objectives......................................................................................................................5
ORGANIZATIONAL DESCRIPTION.......................................................................................6
THE PRODUCT............................................................................................................................7
OPERATIONAL PLAN................................................................................................................8
Production....................................................................................................................................8
MARKET INFORMATION.........................................................................................................9
Distribution................................................................................................................................10
Industry and Market Trends.......................................................................................................10
Profile of Competitors...............................................................................................................11
MARKETING PLAN..................................................................................................................11
SWOT Analysis.............................................................................................................................12
FINANCIAL PLAN.....................................................................................................................13
FINANCIAL PROJECTIONS...................................................................................................15
General Assumptions.................................................................................................................15
ACTIVITIES................................................................................................................................17
IMPLEMENTION OF ACTIVITIES........................................................................................18
PERSONNEL............................................................................................................................18
MANAGEMENT......................................................................................................................18
MONITORING AND EVALUATION......................................................................................18
EXPECTED RESULTS...............................................................................................................19

LIST OF TABLES

Table 1 Seasonal calendar for tomato production.......................Error: Reference source not found
Table 2 SWOT Analysis.................................................................................................................11
Table 3 BUDGET FOR GREENHOUSE......................................................................................13
Table 4 COST CALCULATIONS.............................................. Error: Reference source not found
Table 5 TIMELINE FOR IMPLEMENTION OF ACTIVITIES FOR 2016.........Error: Reference
source not found

DECLARATION
I declare that this business plan is my original work and has not been presented in any other
institution. No part of this project may be reproduced without prior permission of the authors
and/or Nehema Institute.
Signature: _______

Date___________________

Declaration by the Supervisor

This business plan has been submitted for examination with our approval as University
Supervisors. It represents the work carried out by the candidate under our supervision.
Mr. ****

Signature: ______________ Date________________

Department of ******

DEDICATION
I dedicate this business plan to my family members and friends for the support and
encouragement they offered us.

ACKNOWLEDGEMENT
This business plan is not only a result of my own efforts, but an outcome of all the zealous
people involved in supporting our work. First and foremost, I would like to give thanks to the
Almighty God for his spiritual nourishment which enabled me to go through this course to
completion. Secondly, my appreciation goes to my supervisor ***** for the valuable time he
gave us and for guiding us throughout the period I was writing the business plan. I would also
wish to express my sincere gratitude to my friends and colleagues for their unwavering guidance
in pursuant of this work.

EXECUTIVE SUMMARY
The primary objective of this business plan is to attract investments and to analyze the economic
efficiency of starting a yoghurt supply business that goes by the name of Daisy Yoghurt, to sell
products and gain profit. This will be realized by establishing a yoghurt supply business which
will offer customers a wide variety of flavors and toppings. Through selective marketing, the
business will create a loyal customer base that will see Daisy Yogurt as a high-class, yet
affordable Yogurt supply business with a quality product offering.
However, there are significant challenges to financial sustainability, which greatly impacts
operational capacity and success. If funded, it will create a great impact in the lives of Eldoret
residents. In the first place, the project will create employment for at least 5 youngsters currently
not employed in any productive venture. This employment will give them an alternative way to
generate income, In spite of these goals, it lacks the financial resources necessary to realize this.
The organization seeks Ksh200, 000 to establish a Yoghurt supply business.

MISSION
To meet the highest standards of excellence with superb service and product offerings in a
friendly, sparkling, and soothing atmosphere.
VISION
To relentlessly seek out and proactively respond to the changing needs of our customers.
Specific Objectives
1. To supply the finest quality natural yogurt product with a commitment to incorporating
the freshest and richest ingredients into a world class product.
2. To meet the highest standards of excellence with superb service and product offerings in
a friendly, sparkling, and soothing atmosphere.
3. To relentlessly seek out and proactively respond to the changing needs of our customers.

ORGANIZATIONAL DESCRIPTION
The organizations guiding principle is transparency, accountability and support which are
reinforced by prayer and finance. The Yoghurt supply business is a three-fold strategy, in that it
seeks to create a viable income generation, giving it an alternate way to support its daily
activities and to improve the welfare of the members. Once the project is funded, there will be a
continuous supply of fresh and natural yoghurt to Eldoret residents. Second, the project seeks to
create employment opportunities to some of the youth so that they cater for themselves and to
some extent their dependents. With respect to multiplier effect, the project will be a model for
future income generation projects within the community and in other localities.

THE PRODUCT
Daisy Yoghurt will purchase the highest quality yoghurt from a local provider that is made of
local fruits, free of additives and artificial preservatives. It will sell and market both regular
yogurts as well as low fat yogurt products. There will be no need for adding sugar, as the fruits
contain natural sugars. Customers can choose their own flavors of yogurt. They can enjoy their
desserts in a relaxing atmosphere or, take it home, or to their office.

OPERATIONAL PLAN

Daisy Yogurt will not manufacture its own yogurt products but rather will source from a local
provider. Thus its product processes will consist of storing, opening, using a yogurt machine,
displaying products, serving and the supply of the yoghurt. Inventories will be ordered and
received bi-weekly in order to avoid inventory build-up and to supply fresh products.
Daisy Yoghurt will hire part time employees who will engage in both the production and supply
of the Yoghurt. This is because in the first year, the business will not offer full benefits to the
employees. With the injection of capital, the business will purchase all the necessary equipment
and rent out a store. No other immediate financing needs are expected. The business will begin to
turn a net profit in the first year of operation and expect to increase profits in years two and three.
DISTRIBUTION
The distribution on Daisy Yogurts products will take place entirely from the single location that
is selected for the operations site. The site will be at a popular mall located centrally in Eldoret
that is close to major highways, near a major residential area, and adjacent to existing businesses.

MARKET INFORMATION
Daisy Yogurt will focus its initial marketing campaign on developing strong word of mouth
advertising through a variety of initial marketing activities designed to create marketing buzz:
Customer Loyalty Program: Daisy Yogurt will provide customer loyalty cards to every patron
that will be stamped each time a purchase is made. This program will create the means by which
Daisy Yogurt can gain regular customers. There will also be a location on the customer loyalty
card where the customer can fill out his or her email address and phone no.
Additional Incentives: Daisy Yogurt will ask customers to fill out their birthday details on a
membership form so they can receive 25% - 50 % discounts on their birthdays from the shop. In
addition, text messages/emails can be sent to random customers offering them discounts on
special days like buy one get one free or similar incentives.
Profile of Competitors
Daisy Yogurt will be a small operation with a single location, it will be competing against many
large international and national franchises as well as localized ice cream shops within Eldoret.
However, most of the competition will be in the form of ice cream shops and not yogurt shops as
there is no single yogurt operator in Eldoret town.

MARKETING PLAN
To be successful in marketing, the following strategies will be used:
1. Target Market Strategy: The firm will target residents of Eldoret.
2. Positioning Strategy: The firm will position its product in high traffic areas of the sale
area, as well as on high traffic sites via sponsored ads.

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3. Product Strategy: The firm will begin with the supply of the highest quality yoghurt from
a local provider that is made of local fruits, free of additives and artificial preservatives.
4. Pricing Strategy: It is a primary focus of the firm to supply Yoghurt that is affordable to
all walks of life. Pricing will remain the same for future product lines.
5. Supply Chain Strategy The firm will be the sole vendor of their direct product.
6. Promotion strategy: The product will be promoted by labelling the crates, distribution of
promotional leaflets/brochures, participating in agricultural shows, and the community
radio station.

SWOT Analysis
The SWOT analysis allows the organization to consider their strengths, weaknesses,
opportunities, and threats in respect to their internal and external environments.

Table 1 SWOT Analysis

Strength
s

Weaknesses

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Inadequate infrastructure
compromises organizational
effectiveness
Limited resource

Well known, well established local

provider that has a strong local and
regional presence.

Brand recognition in almost every

market.

Demand for natural yoghurt

Opportunities

Threats

Increase of the demand for high

natural yoghurt
Investment in new technologies to
increase productivity

Equity financing available

Increasingly health conscious

Failure of marketing attempts

Lack of core funding leading to financial

instability

FINANCIAL PLAN
Finances accruing to this business will be entered into the proper books of accounts when
received. A special Account in the name of the business will be opened to cater for only the funds
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of the business. To ensure effective control, management and monitoring of funds, no single
signatory will be allowed to access business funds, and the signatories of this account will be
three. Under the consent of the three and approval of the committee funds will be withdrawn
from the bank and utilized for the intended purpose.

Table 2 BUDGET FOR DAISY YOGHURT

SNO.

START UP
Requirements
Start-up expenses
Yoghurt/Equipment and Fixtures
Architecture/Decoration/Modelling
Legal
Rent for one year (to be paid upfront)
Packaging and stationery
Sub-Total Start-up Expenses

AMOUNT (KSH)
74,000
60,000
8000
48,000
20,000
200,000

FINANCIAL PROJECTIONS
In the initial stage, the project will be sustained by funds. However, in the long run the project
will finance itself. Part of the funds will be used to execute the organization while another
percentage will be re-invested in the Yoghurt business to expand the project, hence increasing
sales and profits. Through the capacity building workshops, the project staff will be empowered
with some skills in the supply of Yoghurt and have appropriate knowledge.

IMPLEMENTION OF ACTIVITIES
PERSONNEL

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Organization members have the capacity to run the Yoghurt business effectively. In the first
place, they have knowledge on how to effectively supply Yoghurt and are willing to engage in
more training so that they gain more skills and knowledge.
MANAGEMENT
Daisy Yoghurt business will be run exclusively by Daisy Jepngetich who will be the owner.
However, it will set up a separate individuals who will be responsible for the day to day
coordination and implementation of the activities. Daisy will also be responsible for planning,
supervising, monitoring and reviewing all activities. This will enhance the opportunities for the
realization of the broad goals and objectives of the business.
MONITORING AND EVALUATION
General Monitoring and evaluation will be an ongoing activity each and every day. Monitoring
will be routinely done through meetings monthly reports. These reports shall indicate the
constraints and challenges in the implementations and necessary adjustments that had been
taken. Progress evaluation will be done through use of monthly quarterly reports and work plans
indicating planned and accomplished activities, functional accountability for project resources
including equipment, facilities, assets and activities. Progress monitoring and evaluation will
help the firm to assess the extent to which implementation is meeting the set objectives.

EXPECTED RESULTS
1. In the first year, the project will supply exclusively highest quality yoghurt from a local
provider that is made of local fruits, free of additives and artificial preservatives.
2. At the end of the first year, the project will be able to meet the demand of fresh and
natural yoghurt from Eldoret residents.
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3. Profits realized from this will be reinvested into the business, as a part of ensuring its
sustainability and assisting organization in running of its daily activities.
4. The expansion of the Yoghurt business will create employment for at least 5 youth who
are currently not employed in meaningful activities. This employment will give them an
alternative way to generate income, decreasing their dependency.
5. It will also be a model for future income generation projects within the community.

FORWARD STRATEGY & FUTURE OUTLOOK

Daisy yogurt will focus on growing its single location to profitability and use it to establish brand
recognition throughout Eldoret town by measures revenue targets year after year. These
measured growth targets ensure that the quality of service and yogurt never drops while still
supporting the local community and increasing revenues and profits.
After 6 months of operation, given that the first store has achieved its revenue targets, plans to
establish a 2nd

outlet in another location, either in Eldoret, will be considered. The principals

hope to establish a total of at least 3 major locations in Eldoret within the first 3 years of
operations and then consideration will be given to expanding to other towns in Kenya.
Current research reveals that the industry market will continue expanding over the next three to
five years. And this type of industry growth combined with the local and regional populations
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projected growth and expansion indicate that Daisy Yogurt will not only be successful but that it
will be able to establish itself prior to any serious competitive threat that can enter the market
and undermine its sales growth strategy.

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