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Jangu Holdings Ltd is set to markets, procure, transport, store, distribute and sell commercially viable, high quality and high value JESA Farm dairy products. The company will be operating effective and efficient milk storage centers to DDA national standards of hygiene and safety.

Jangu Holdings Ltd performs a vital JESA milk products marketing role, operating at the interface between the JESA Farm Dairy and the customers. Jangu Holdings Ltd is incorporated and fully registered under The Laws of the Republic of Uganda. The company was issued with certificate of incorporation on November 21st, 2018.

The main objective of Jangu Holdings Ltd is to ensure quality and uncontaminated dairy products gets to the consumers. A clear operation plan on how goods are good to be delivered to consumers will be put in place.

Community need

Milk products and milk provides important nutrients. However, milk when not kept under good hygienic conditions can harbor dangerous microorganism that poses health danger to the consumers. Everyone in the Uganda wishes to consume milk kept under hygienic conditions. According to research conducted by Veterinary Medicine International, in western part of Uganda there is Prevalence of Antimicrobial Resistance and Mastitis cases of Bacterial Contaminants of Milk. The safety, and quality of milk needs to be improved. Jangu Holdings Ltd intends to solve the problem of Ugandans buying contaminated milk from the streets by supplying quality milk to them.

We intend to have milk refrigerators meeting the quality standard in all our outlets. Refrigeration plays a significant role in ensuring the milk to be bought by the consumers is healthy and safe. Our refrigerators will operate at a temperature of less than 4 degrees so as to minimize degradation of milk components and also reduce any chance of bacterial contamination. All the consumers buying from our outlets are assured of quality products free from harmful bacteria.

The company has partnered with JESA Farm Dairy to ensure a steady supply of milk into the market. Our partnership also ensure the production of milk from the farm to the consumer is done under hygienic conditions.

JESA Farm Dairy is a company that processes dairy products. It was founded in 1994, it takes pride in its quality services offered to the consumers, it is also one of the reasons why it has been able to stay in business for long. They produce a number of dairy products, our partnership with them will see more products supplied to the marketing. The company have a good reputation that has built over the years.

We are requesting a loan of 120 million UGX payable in 2 years at an annual rate of 22%.

Our estimates monthly revenue per month for the first six months is 82 million UGX. After factoring in salaries of 5 employees of 2.4 million UGX, fuel 3.74 million UGX, Bulenga Depot rent 0.5 million UGX, Fort potal Depot Rent 0.2 million UGX, UGX, 60,000 UGX refrigeration cost and miscellaneous expenditures of 1 million UGX we are left with 70.1 million. Enough money to repay the loan. 

The company intends to put up two JES milk distribution outlets, one being at Bulenga Kampala central part of Kampala while the second being at Fortal Portal, Western part of Uganda. Each depot is estimated to cost 10million UGX to put in place. It includes acquiring office furniture, buying fridges, computers, printers and internet connection. Also, Jangu Holdings Company will have to pay a security deposit of 70 million UGX to JESA farm. However, directors have  already raised 40 million UGX to be used in paying for security, so only a balance of 30 million UGX  will be deducted from the loan to add up to the required 70 million UGX for the security. The company will also use 72 million UGX shilling to purchase refrigerated distribution truck.

Solution

Jangu Holdings Ltd intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in the targeted market through advertisements using a team of marketers that will go door to door educating people about JESA products using JESA marketing materials like flyers and t-shirts.

JESA branding materials will be obtained from JESA Farm Dairy and availed to local retailers which will increase product visibility in the market.

The marketing team will also be collecting views from consumers and potential clients on best ways we can improve our service delivery. These will ensure we quickly gain competitive advantage in the market. Furthermore, we ensure all our depots never run short of supplies.

The JESA Farm Dairy’s products will be distributed to Agent Outlets, Supermarkets, and Large retail outlets like wholesaler shops, Education Institutions and retail shops in the targeted towns.

The targeted western route will be starting from Bulenga, Bujuuko, Mityana, Mubende, Kyenjojo, Fort Portal, Bundibugyo, Hima, Kasese, Bwera, Ishaka, Kabwohe, Ibanda, Mbarara, Ntungamo, Kabale, Kisoro among others.

We will be develop the profile of our customers as the days goes by. Understanding our customers will help us make key decisions related to marketing plans and products. Our strategy will be the one which makes us different from our competitors. It will be very important for us to understand why customers buy from us and possibility that might make them otherwise buy from our rivals. Social platform will be another important tool which we will use to market our delivery services. All our marketing strategies will be reviewed periodically until we establish that one strategy that work best where we can channel more resources towards it.

The directors of Jangu Holdings Ltd are qualified professionals, they have the abilities and capacity to ensure smooth running of the company operations. The company will also hire competent personnel who will carry out the assigned duties without any close supervision.

The computers bought by the company will be used in keeping all the necessary records, these will ensure accountability. The employee to be in charge of finance will be an individual of high integrity so as to minimize cases of money misuse. Audit of all our expenditures and earning will be done monthly as opposed to annually.

Trained staff will run the outlets with proper stock taking skills and accountability being key in the daily operations. The staff will also be equipped with customer service skills to ensure clients are satisfied at all times and proper client feedback handling communication media will be put in place to maximize their satisfaction.

The management of the company will entail;

Plan: a written plan will be put in place of things that need to be accomplished within a specific time. They will comprise of financial plan, marketing plan, sales plan and objectives to be achieved. All the plans will be reviewed more often to see if everything is going as intended. Where there is anything to be adjusted it will be done on timely basis.

Delegating employees duties: All the employees will be allowed to work freely, there will be no micro managing. Everyone will get enough space that he or she needs to work. Each will have a clear mandate which he or she must deliver. Employees will each be trained on what they are required of them to do.

Partnership

Monitoring operations: All the undertakings of the company will be closely monitored, all the deliveries done. How the refrigeration service is conducted. The stock available for customers, at what point do more supplies is needed to be delivered. Running short of stock will negatively impact business, so it must be avoided at all costs.

Management within the company will be in no doubt done by professionals.

The business of milk distribution in Uganda has few players. The competition is still minimal, one can easily gain market share by offering quality products and through proper marketing. Our door to door marketing will enable us gain market share quick enough. We will also offer our products to consumers at a fair price. Price is always the driving force that is the main reason as to why we will offer competitive price. For new entrants into the market like us quality is paramount so as to win the trust of consumers. We will offer quality services to our clients.

Reliability is another key factor to gaining trust of the customers. All our products will be delivered to the desired destinations on time. We will always be there for our customers.

To compete effectively with our major competitors we will apply the following;

Niche down: Our target consumers will be the basic consumers such as the students and people from the village. Market of basic consumers always result in quick sales and more revenue.

Hold competitive angle: We will capitalize on our strengths. We will try to always listen to complaints, inquiries and complements of our consumers. We will also try to provide best prices to them.

Quality products and services: All our goods and services will be of high quality. We will select products with good packaging also that are eye catching.

Good customer relation: We will establish relationship with all our clients. Always there to listen to them. Delivering good on services on time.

The product line will comprise of the following JESA Farm Dairy products; 

  • Plain Yoghurt
  • Fruit Yoghurt
  • Drinking Yoghurt
  • Smooth Yoghurt
  • UHT Milk
  • Flavored Milk
  • Fresh Milk
  • Tropical Delite Dairy Blend
  • Butter
  • Cream

Other products will be added onto the list depending on how customers respond in the market.

We expect the demand will increase with time, given Ugandan’s high consumption of milk products. We therefore expect that with continued timely efficient distribution and achieved customer satisfaction the company will grow very fast. We see our self a very big company within the next 3 years. Milk is without one of the leading consumed product in Uganda.

We also expect to see cases of illness related to contaminated milk reduce in  our area of operations, since the customers will now have access to quality products kept under hygienic conditions.

We plan to expand the business to other areas in the near future, so that those in other parts of the country can also gain access to quality milk products thus improving their health. The number of employment opportunity created by our business will keep increasing as we expand the business.

We expect a strong rate of growth especially during the dry season and the festive seasons.

The following table shows the projected sales forecast for the first 6 months;

Product Name

Units (Boxes) Per Week

Per Month

First 6 Months

Plain Yoghurt

250

1,000

6,000

Fruit Yoghurt

50

200

1,200

Drinking Yoghurt

100

400

2,400

Smooth Yoghurt

50

200

1,200

UHT Milk

400

1,600

9,600

Flavoured Milk

50

200

1,200

Fresh Milk (in Litres)

500

2,000

12,000

Tropical Delite Dairy Blend

30

120

720

Butter and Cream

N/A

N/A

N/A

Table 1: Expected product sales during the first 6 months of distribution.

Here is the projection for the second year of operations

Product Name

Units (Boxes) first 6 months

Second 6 months

Year 2

Plain Yoghurt

6,000

12,000

18,000

Fruit Yoghurt

1,200

2,400

3,600

Drinking Yoghurt

2,400

4,800

7,200

Smooth Yoghurt

1,200

2,400

3,600

UHT Milk

9,600

19,200

28,800

Flavoured Milk

1,200

2,400

3,600

Fresh Milk (in Litres)

12,000

24,000

36,000

Tropical Delite Dairy Blend

720

1,440

2,160

Butter and Cream

N/A

N/A

N/A

We are projecting an increase in revenue within the first six months of operation.

Product Name

Units (Boxes) Per Week

Buying price per Box

Selling price per box

Profits

Per week

Plain Yoghurt

250

8million

13million

5 million

Fruit Yoghurt

50

1.6million

2.6million

1million

Drinking Yoghurt

100

3.2 million

5.2million

2 million

Smooth Yoghurt

50

1.6 million

2.6 million

1 million

UHT Milk

400

10.4 million

19.2 million

8.8 million

Flavoured Milk

50

1.6 million

2.6million

1million

Fresh Milk (in Litres)

500

1.3million

2.4million

1.1 million

Tropical Delite Dairy Blend

30

 0.96 million

1.56 million

0.6million

Butter and Cream

N/A

Total  profit per week

20.5 million

Total profit per month

82 million

Product Name

Units (Boxes) Per Week

Buying price per Box

Selling price per box

Profits

Per week

Plain Yoghurt

6000

192million

312million

120 million

Fruit Yoghurt

1200

38.4million

62.4million

24million

Drinking Yoghurt

2400

3.2 million

124.8

million

48 million

Smooth Yoghurt

1200

38.4million

62.4 million

48 million

UHT Milk

9600

10.4 million

460.8 million

211.2 million

Flavoured Milk

1200

38.4million

62.4million

48million

Fresh Milk (in Litres)

12000

35.1million

64.8million

26.4 million

Tropical Delite Dairy Blend

720

 23.04 million

37.44 million

14.4million

Butter and Cream

N/A

Total  profit per week

492 million

Total profit per month

1.968 billion

Milk being one of the basic needs. Milk market has a huge untapped potential, with formal form of distribution of milk accounting only for 9 percent, (Saunders & Lewis2012).

References

Coley, S. M., & Scheinberg, C. A. (2009). Proposal writing (pp. 36-37). Thousand Oaks, Calif.: Sage Publications.

Cooper, D. R., Schindler, P. S., & Sun, J. (2016). Business research methods (Vol. 9). New York: McGraw-Hill Irwin.

Saunders, M. N., & Lewis, P. (2012). Doing research in business & management: An essential guide to planning your project. Pearson.

Collins, O. F., & Moore, D. G. (2014). The enterprising man(Vol. 1). Michigan State Univ Pr.

Hall, J., & Hofer, C. W. (2013). Venture capitalists' decision criteria in new venture evaluation. Journal of business venturing, 8(1), 25-42.

Perry, T., Ballanco, M., Garber, C., Homsany, K., Kroeten, M., & Rowe, G. (2012). U.S. Patent Application No. 09/746,611

Lipton, M., & Lorsch, J. W. (2010). A modest proposal for improved corporate governance. The business lawyer, 59-77.

Veleva, V., & Ellenbecker, M. (2011). A proposal for measuring business sustainability. Greener Management International, 31(3), 101-120.

Chan, Y. K., Raveendranathan, P., Zahari, R., & Lam, P. F. (2014). Business proposal for the cultivation of papaya (cv. Eksotika Malaysia). Business Proposal Series, (8).

Flowerdew, L. (2010). Devising and implementing a business proposal module: Constraints and compromises. English for Specific Purposes, 29(2), 108-120.

Nalepa, G. J. (2017, September). Proposal of business process and rules modeling with the XTT method. In Symbolic and Numeric Algorithms for Scientific Computing, 2007. SYNASC. International Symposium on (pp. 500-506). IEEE.

Chalmeta, R., & Palomero, S. (2011). Methodological proposal for business sustainability management by means of the Balanced Scorecard. Journal of the operational research society, 62(7), 1344-1356.

Marvin III, E. A., Hodor, B. M., & Monti, J. M. (2014). U.S. Patent No. 7,415,437. Washington, DC: U.S. Patent and Trademark Office.

Enterprise, B. Participation form included with the bid/proposal. This commitment.

Miner, J. T., & Miner, L. E. (2013). Proposal Planning & Amp; Writing. ABC-CLIO.

Bonnel, W. E., & Smith, K. V. (2013). Proposal writing for nursing capstones and clinical projects. Springer Publishing Company.

Kiritz, N. J. (2012). Program Planning & Proposal Writing. Grantsmanship Center.

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