Business plan for The Smoke House
The Smoke House is a new product initiative by Mackba Farms Limited. The company has started production on a very small scale and will begin expanded production in January 2012. The Smoke House product is frozen smoked chicken which the company self-retails to ensure maximum quality. The company intends to make the product available to the target market by using mobile retail units. The potential market for The Smoke House product is large as 87% of respondents to a survey said they like chicken and eat it at least once a week. This coupled with the population of Accra provides a very large market for the brand to profit from. The Smoke House's competitors are other producers of smoked chicken, producers of frozen foods and restaurants as well as fresh food to be cooked which acts as a substitute. The Smoke House plans to out-compete its competitors by making its convenience in the sense of availability and ease of preparation. The brand will also outcompete competitors by being known for quality and ensuring the freshness of its frozen product. The Smoke House will run a very lean operation with 4 employees and a board of directors made up of the equity holders. The company's marketing strategy in the first few years will be targeted at increasing product awareness although many people like chicken, 43% of respondents have never tried smoked chicken, especially in the 15 -22 age bracket where 77% of respondents have never tried smoked chicken. Considering the size of the potential market and the marketing strategy the company will put in place and the company's projected output of an average of 100 birds a week in the first year, revenue for the 1st year is projected to be GHC 77,250.00 with profit of GHC40. The revenue is expected to grow by 50% each year putting net operating income at 7 GHC5,762.63 in year 2, GHC24,214.24 in year 3 and GHC52,052.26 in year 4. The company is projected value of the company is GHC290,547.21.
Applied project submitted to the Department of Business Administration, Ashesi University College, in partial fulfillment of Bachelor of Science degree in Business Administration, May 2012
Ghana, smoked chicken, marketing strategy