The name of the business will be FEGEOSTOM. It will be a manufacturing business that will produce bar and liquid soap. The business will open ground with liquid soap before going into the production of bar soap.
The business is located in Ojota, Lagos state. A lot of factors influence our decision to make this location the base of operation for our soap making business. Some of which is proximity to markets (raw materials and sales), proximity to labour, central location for distribution and a good location for our factory.
So far, the business name has been registered with the Corporate Affairs Commission of Nigeria. We have opened a corporate bank account and have set up an online payment platform and point of sales machines. The business has been insured and tax Payers Id is in progress. The branding by the Graphics Company is in progress and we are continuously recruiting employees. A lot has been set in motion for the success of this business and we seek for you to join us in this path of success.
Vision
To be a standard soap manufacturing company for both local and international markets.
Mission
- To establish a world-class soap making business
- To build up to be the best soap making business in the world through research with science and technology
- Build a household brand name.
- Ensure our customers’ needs are met accurately.
Our products
This is a business that will not only make us profit but will also give our customers value for their money. We also offer the following products:
Liquid soap
Multipurpose liquid soap
Body wash
Hand wash
Dish wash
Car wash
Bar soap
Multipurpose
Clothe wash
Toilet/Body wash
Baby soap
All these varieties have different fragrances to suit our customers’ needs and preferences.
SWOT Analysis for Soap Making Business Plan in Nigeria
This is a summary of the SWOT analysis carried out by our professional business analyst
Strength: One of the strengths of the business will be the vast varieties of products offered to the public. Another one will be the experience of the management team to grow the soap business. Excellent products coupled with great customer service with a large distribution network is a strong point for this business
Weakness: Financing is the major drawback to this business as the state of the art machines needed for the production is capital intensive. We are trying to make this a strength by sourcing for funds.
Opportunity: soap production and sales have a ready-made market which includes households, offices, canteen, laundries, hotels, and industries. With this great opportunity, we will position ourselves to take the utmost advantage of this market.
Threat: one of the threats we might face is the reduction of purchasing power due to the economic downturn. Another threat is the brands we might need to compete with and outshine.
Market Analysis for Soap Making Business Plan in Nigeria
One of the businesses in Nigeria with a low barrier of entry is the soap business. There are numerous types of soap, each with its peculiar use. Naturally, when we talk about soap, two states (or types) come to mind namely: bar (solid) soap and liquid soap. Rarely do we include detergent (powder form).
There are a few brands out there that have already make grounds and earn a market share for themselves. These brands have proven healthy and reliable over the years. In fact, some of the brands have colonized the name of the product that when you think about say dish wash soap, the name comes to mind.
We have to gain our fair of the market share by giving several great products with nice creative packaging for a fair price. The general market is enormous but we will start and climb our way up the ladder to serve all. Our first point of penetration is the market in our immediate environment.
Our target Market
We would be supplying our products to:
Household markets
Restaurants
Government offices
Hotels
Hospitals
Sports centers
Laundry houses
Schools
Corporate offices
Religious centers
Our competitive edge
- The first is the competency of our employees. At Fegeostom, we only hire dedicated professionals and shows in the quality of products we give to our customers. Our employees are not only customer-centric but also have immense knowledge in science and technology to efficiently produce the best soap fit for a specific use.
- Another is the state of the art equipment and machines that will be used in the production and distribution of the soap.
Marketing Strategy
To successfully penetrate the market and grow our market, we will sell our soaps using these strategies:
Opening party to create awareness
Introductory letters to our potential customers
Media advertisements
Street advertisement
Internet adverts placement (target ad)
Promotion of our brand
Giving Freebies to freelancers and our customers
Direct marketing and sales
Customers’ Referrals
Business Structure
This business was set up with the sole aim of producing the best soap in Nigeria and the world. We ensure the state-of-the-art equipment and materials are used in the production. Not only would we have the best soap making machines, but we also hire the best of the best hands in soap making. With this in view, these positions are professionally filled with qualified, hardworking and customer-centric individuals:
CEO
Plant manager
Human resources manager
Sales and marketing executives
Front desk associate and accountants
Operators for the soap making and packaging machines
Customer services executives
Distributors
Logistics officers
Financial Analysis for soap making Business plan in Nigeria
We estimated a total of #900,000 for the infrastructure and machines for the soap business and a total of #450000 for the first production. A sum of #700,000 has been realized to set this business in motion while sourcing for more funds.
We intend to make a ten per cent profit or, at least, break even in the first year. This is because we sell with an opening price which is lower than the average price in the market. We calculated a thirty per cent profit in the second year and steady growth of five to ten per cent per annum. This is a projection based on the current market trends and an ideal market.
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