Chapter one

Business description

The proposed name of the business will be kency building blocks suppliers. The owner preffered the
name since it describes something looking better than the existing. The owners is inspired by the name
to outdo what is offered by other enterprises of the same kind meaning he has to ensure quality
products and best services to prove the capabilities. The owner of the business will be kenfry murimi
njeru aged 25 years. He was born in tharakanithi county maaru sub county, went to school in kisrani
primary school, later joined chogoria boys high school and he is currently pursuing a diploma in
mechanical engineering at Kabete national polytechnic.

Before joining college he worked with his brothers lorry which majorly supplied building materials
locally. The demand was always higher than it could be met. That is where the idea of suppliying blocks
was initiated. During the period of local running with the truck he acquired skills enabling him to run and
manage the business.

The amount of capital to be invested will be 500,000 and will be raised from the following sources

Source Amount (ksh)

Bank loan 300,000
Family and friends 200,000
Personal savings 300,000
total 800,000

1.2 business location and address

The proposed business will be situated in meru town, meru county. This will be along meru- Nairobi
highway opposite kanini kega building next to commercial bank. The choosen ground site will be easily
accessible by the customer and has less competition since it is the only business enterprise of its kind
along the highway.

The area is well secured since the other business enterprise exist. Since security is granted, it makes the
area suitable ground to establish the enterprise.
Kency building block supplier location by sketch

KCB
SITE NATIONAL OIL

TO NANYUKI

To mutindwa
KANINI
KEGA
BUILDING

Address

KENCY BUILDING BLOCKS SUPPLIERS

P.O BOX 52- 60401

MERU

TEL: 0798285438

email: [email protected]

1.3 form of ownership

The kency building blocks suppliers will be a sole proprietorship type of business which will require a
total of ksh 800,000 to start. The owner chose this form of ownership as its easy to start, require few
legal formalities and decision making is easy, therefore no need of partnership through consultations.
The plan behind venturing to this business involves saving some money which will enable it to start well
equipped site, the plans to furnish the site that is going to be used and commence the business on 20 th
march 2022 at 6.00 am.

The business will veture in both retail and wholesale. It will maximize on executing cdf tenders through
supplying building blocks to schools like mutindwa secondary, meru primary school, meru national
polytechnic and other institutions surrounding. The business will aim at construction sites developing
market and homes.

The business will also be offering long and short distance transportation of blocks at relatively low costs
and thus will be targeting already existing customers from meru, nkubu township, mutindwa and
kamakis town.

1.4 products and services

The products sold by kency building blocks suppliers will be building blocks. The blocks will be of
different sizes and shapes. The size will range from size of 40 by 20 cm. for rectangle shapes, diameter
40 cm for ovallike shapes and round shapes. Star like shapes will also be sold. These blocks will be of
rough texture and of high quality.

For packing techniques, loaders will be deployed for the work and the blocks will be packed according to
their shapes and sizes.

The products will be sold at reasonable prices and readily available for customers. Due to existence of
different designs and shapes, the products is unique hence breaking the monotony of rectangular
shapes sold by other competitors.

1.5justification of the business opportunity

Population growth triggers increase in construction desugns which has made this kind of business not to
satisfy the rising demands.

Growth of towns and urban centres is a key factor which has attracted investors in the region. Schools
and institutions of higher learning have merged rapidly hence expanding towns and urban centres. This
has made the fewer existing business not to meet demands hence market availability. Improved
infrastructure in transport sector will make delivery of items easier. Also there is good transportation
system which will ease movement of customers making the business enterprise easily available.

This business enterprise will affect the community positively since it will offer employment to the people
around. Also local resources like water will be utilized and the people will benefit. The transport services
offered will ensure good service delivery by taking the product close to people hence making services
convenient.

1.6 the industry

The industry that the business fall in is building and construction. Use of blocks begun on the early days
and development has resulted in making of quality blocks. In the county houses were simply made of
loam and clay soil while others preffered the use of wood. Urbanization has led to these houses being
improved and hence more people prefer use of blocks. In this business intensive labour and capital is
applicable.

The business aims at starting with 10 employees which is the minimum number required in the industry.
The industry is growing at a high rate as a result of population increase hence increase demand.

Modern technology is employed in this industry for records and data keeping.
This industry faces a lot of competition but the workshop dealing with the sales of blocks are minimal
due to high initial capital requirements hence less competition.

1.7 goals of the business

The business goals are as outlined below but they are based on their progressive nature

1.7.1 short term goals

 To attain 15% profit within four months

 Mastering the strengths and threats of the competitors in order to take proper measures in
stabilizing the business within three months
 To develop long lasting market strategies within the first month
 Start paying bank loans from the 6th month af the commencement of the business

1.7.2 long term goals

 To emerge the best in selling and delivering quality construction materials and services after 5
years
 To build and own a business premises to conduct the busness from there within two years.
 To open other branches country wide yearly.
 Increase in the number of inputs within the first two years
 Increase the number of workers as the business expands.
 To find access to international markets starting with neighboring countries.

The long and the short term goals of the business will be reviewed regularly on yaerly basis and monthly
basis respectively depending on the achievements.

1.8 the entry and growth opportunity or strategies

The business will observe and uphold good and quality management to ensure customer satisfaction on
quality products sold to them. This will eliminate the competition in terms of searching for quality
products by offering the best. The pricing of the products will be arrived at by considering both parties
that is, the business and the customers. Since other competitors may sell at high prices, I will capitalize
on selling the products at an affordable price which will be relatively lower.

Planned promotions will be introduced in order to win customers and retain their consistency. A good
healthy relationship between the workers and the customers will be achieved through proper
communication channels and standardized services. The business will use the upcoming technologies
like use of modern computers for faster service delivery and good record keeping unlike the other
competitors.

1.9 growth strategy

The enterprise will apply strategies that will cause tremendous growth through the following:

 Employing skilled personnel

 Good and quality service
 Subsidized prices to retain its customer
 Giving incentives and promotions to customers
Chapter two

Marketing plan

2.1 customers

The business will serve customers in meru town and the county at large. The potential will be the
business people, government through cdf tenders and individual with a population of 50,000 people
who will have access to the business. Publicity of the business to customers will be achieved by
advertisement through fliers, posters, signboards, radios and tv stations.

The following categories wll receive the services provided:

2.1.1 brick supply services

i. Business people-these will be individuals whose purchase pattern will vary depending on their
demands.
ii. Private institution- I will ensure their consistency in purchase due to maintenance in the
institutions that take place at different times annualy.
iii. Government bodies- the purchase will happen through cdf to public institutions at least twice in
a year.

2.2 market share

Kency building blocks supplier will have the biggest market share compared to the one earned by other
companies. This market share will be a guarantee as a results of strategies employed in increasing the
market share. The strategies include, innovation,lowering of prices strengthening customer relations,
increased quality and advertising. These strategies will help the supplier recognize where he fits in the
overall market. As a results the market share will be easily managed and growth will be a major target.

The following chart shows the market share of kency building blocks suppliers compared to that of the
competitors.
 Sales

6%
kency building blocks suppliers
17% g.k hardware limited
mt kenya building materials
limited
50% kenfest hardware limited

28%

2.2.0 impact of market share

i. Increase of suppliers economy of sale

ii. Increased sales
iii. Increased customer base
iv. Will lead to dominating the industry
v. Increased bargaining power

2.3 competition

2.3.1 key competitors

i. G.k hardware limited- the competitors is located along meru industrial park 700 metres from
kency building blocks suppliers limited. The competitor generally sells construction materials
including building blocks
ii. Mt Kenya building materials limited- the enterprise is situated along meru- Nairobi highway
opposite shell filling station, 500 metres from us. The competitor sells construction materials
although at a lower volume compared to g.k hardware limited.
iii. Kentest hardware limited- the competitor is situated along mutindwa road one kilometre away
from kency building blocks suppliers. He generally sels construction materials at low volume rate
compared to the rest of the competitors

Since all these competitors have weaknesses on transport services, I will capitalize on offering the
service at affordable price to fill the gap of transport and delivery.

2.4 methods of promotion and advertising

The product and service provided will be made known to potential customers through advertisement.
The mode of advertisement will be through media, use of fliers whereby customers will be reached out
one on one, through posters and billboards which will highlight the products and services provided and
the business location.

Due to innovativeness employed in product design, the product will be unique and of high quality
compared to these of the competitor.

The product will be advertised on weekly basis by media practitioners of meru fm radio station and
television at a cost of 500ksh per week.

2.4.1 promotion offer samples

Promotion campaigns will be conducted on monthly basis targeting all customers. They will be taught on
product quality as they are encouraged to use the products.

A public address system and transport medium will be hired at a cost of 500ksh to conduct the
promotion activity.

2.5 pricing strategy

The pricing strategy will be achieved by doing research on pricing in the industry through getting
logistics of blocks price from competitors. Once this is achieved the data on prices and profit margin will
be compared.

Having gathered the information on their pricing strategies, I will set the price list that is relatively lower
targeting a big number of customers.

2.5.1 factors influencing price settings

i. Actual prices compared to competitors price. This is whereby my products price will be
relatively
ii. The credit terms in kency building blocks suppliers will be better as consistent customers who
will buy in large volumes will be offered credit in value of the blocks purchased
iii. After sale service whereby the customers will be awarded a number a number of blocks at no
cost depending on the volumes they purchase.
iv. Transport offered by the enterprise will be relatively cheap and affordable compared to other
local means of transport.

2.5.2 a sample pricelist

Unit Item Price block Cost ksh

1 Rectangular shape 30 30
blocks
2 Round shape blocks 32 32

3 Star like blocks 35 35

4 Oval like blocks 32 32

2.6 sales tactics

Methods employed in reaching out potential customers will be direct and indirect selling. In direct
selling, the customers will be reached out to personally and description of the products and services
offered will be made known to them. This will employ use of fliers which will have a well laid out
products and services offered.

For indirect selling, the sales force will reach out to individuals who sell building materials but in small
volumes. After explaining to them the prices, credit, after sale services and transport services offered,
they will be trusted as agents in the business.

The distributors will be selected as per their cash flow statements and the market share, they have in
their geographical area. They will be motivated through cheap transport and delivery costs, credit and
after sale services offered.

The geographical areas to be served across meru region are meru town, nkubu, mutindwa and kamakis
town.

2.7 distribution strategy

2.7.1 direct to customer

The enterprise will utilize this channel of distribution directly to customers who will be purchasing
directly from the site of the enterprise. Means of transport for both small volume and large volumes of
products bought will be offered to customers at a relatively lower cost.

2.7.2 through agents

These will be the distributors of the enterprise products to customers in remote area to the agents,
transport service will be more cheap since they play a major role in dominating the market on behalf of
the enterprise.

2.7.3 transport estimate cost per month

The volume of products worth 20,000 ksh will be transported at a cost of 5,000 ksh around the towns
mentioned. The business target at least seven customers and agents on daily basis who will hit the
target of goods worth 20,000 ksh. This will make the total transport cost per month be 1,050,000

2.7.4 anticipate distribution problems

i. Mechanical problems of vehicles used to transport. This will be solved by good maintenance of
vehicles
ii. Poor transport network due to weather roads. Good transport networks will be established to
cub the problem
iii. Insecurity. This challenge will be sorted by offering best security service.
Chapter three

3.0 organization plan

3.1 organizational structure

The organization structure is formed and well defined to ensure smooth running of the business and
facilitate good delegation of duties among the staff.

Kency building blocks suppliers will ensure smooth running of the business with the structure formed
below

manager

employees

salesmen

drivers

Security officer

3.1.1 director

This will be the owner of the business who is qualified academically. He will make decisions on how the
company will run and define all duties of employees

Duties and responsibilities

i. Will provide the required capital to start the business

ii. Will delegate duties to other junior employees
 iii. He will be making decisions on the business
iv. Will set values and goals of the company
v. Will be incharge of good approval

3.1.2 manager

The enterprise will require a manager who will be competent and well acquainted with operations in the
enterprise

Qualifications

i. Must have a diploma in sales and marketing and any other management courses
ii. Be a Kenyan citizen
iii. Must have at least 2 years experience in the positions

Duties and responsibilities

i. Assign duties to subordinate staff

ii. Will be involved in decision making
iii. Will be issuing market schedules
iv. Will be conducting meetings as the secretary

3.2 employees

Qualifications

i. Should have a certidicate in sales and marketing

ii. Be a Kenyan citizen from meru
iii. Should speak English and meru language
iv. Have a work experience at least 6 months

Duties and responsilities

i. Reporting work in time

ii. Hitting and surpassing sale target
iii. Prospecting customers
iv. Follow safety measures in their work

3.3 drivers

Qualifications

i. Have a valid smart license

ii. Be over 20 years
iii. Have work experience one year

Duties and responsibilities

i. Reporting work on time

ii. Checking vehicles conditions every day
iii. Transporting goods according to the planned schedules
 iv. Reporting vehicle conditions

3.4 security officers

Qualifications

i. Must be 28 years
ii. Must be trained through g4s security training
iii. Must have a work experience of at least 2 years

Duties and responsibilities

i. Protecting other employees from any external invasions

ii. Accountable for any loss of properties in the enterprise
iii. Checking customers delivery notes as they exist
iv. Checking customer vehicles

3.5 recruitment, training afecrere33e43.5 recruitment, training

Recruitment

Recruitment of employees will be advertised by use of posters around the town and the business
enterprise.

Those interested and meet the requirements will submit their curriculum vitae through the companies
email address. Interviews will be conducted and the best personnel will be selected out of the
interviewees.

Training

Inductions and training of the newly selected employees will be conducted for four days. This will make
them to be well acquainted with their responsibilities to be assigned, safety measures and the
companies operational procedures. The training will be conducted by the director and manager.

Promotion

The employees will be promoted depending on their efforts and commitments in work. As the workload
increase due to rise in demand, their will arise better opportunities for them and they will be assigned
new responsibilities as their former responsibilities be assigned to new employees.