Bottle Water Business Proposal
Bottle Water Business Proposal
PRODUCTION
Executive summary
Sim Bottle Water Production Firm is a licensed and standard bottled water
production company that will be located in an industrial area in Gwale Local
Government Area of Kano State, Nigeria. We have been able to secure a long term
lease for a facility in a strategic location with an option of a long term renewal on
an agreed terms and conditions that is favorable to us.
The facility has government approval for the kind of business we want to run and it
is easily accessible and we are deliberate about that to facilitate easy movement of
raw materials (plastics and bottles et al) and finished products (bottled waters).
We are in the bottled water production business to engage in purifying and bottling
water, purifying and bottling carbonated water, labeling bottled water products,
promoting bottled water brands, production bottled still water, production of
bottled flavored water, production of bottled sparkling water and manufacturing ice
et al.
We are also in business to make profits at the same to give our customers value for
their money; we want to give people and businesses who patronize our bottled
water the opportunity to be part of the success story of Sim Bottle Water
Production Firm.
We are aware that there are several big scale and small scale bottled water
production companies scattered all around the Kano and Nigeria in general whose
products can be found in every nooks and of the country.
This is why we spent time and resources to conduct our feasibility studies and
market survey so as to enable us locate the business in an area that will support the
growth of the business and also for us to be able offer much more than our
competitors will be offering.
We ensured that our facility is easy to locate and we have mapped out plans to
develop a wide distribution network for wholesalers all around Gwale Industrial
Area.
Much more than producing healthy, portable and well packaged bottled water, our
customer care is going to be second to none. We know that our customers are the
reason why we are in business which is why we will go the extra mile to get them
satisfied when they visit purchase any of our bottled water and also to become our
loyal customers and ambassadors.
Sim Bottle Water Production Firm will ensure that all our customers (wholesale
distributors) are given first class treatment whenever they visit our Depot / Plant.
We have a CRM software that will enable us manage a one on one relationship
with our customers (wholesale distributors) no matter how large the numbers of
our customer base may grow to. We will ensure that we get our customers involved
when making some business decisions that will directly or indirectly affect them.
SECTION ONE
Water they say is life. Water no doubt is an essential part of human life, existence
and sustenance on earth. Research shows that about 71% of the earth surface is
covered with water and similarly 50-65% if the total human mass is also made up
of water. Also the brain is mostly made up of water, bringing us to the conclusion
that we cannot survive without water.
There is hardly anything we can do independent of water, water plays a pivotal role
in the existence of all human life on earth, so investing in water business as one of
the most consumed commodity is paramount.
Water is the most consumed natural resources but research also shows that 1 out of
10 people in the world lack access to clean and portable water. So investing in the
production of clean and portable water on the go for any average Nigerian is the
purpose coming up with this lofty business idea.
Sachet or bottled water as the case maybe is one commodity that is consumed in all
parts of the world and of course those that are in the business of producing sachet
or bottled water, are known to generate sales year in year out if the business is well
managed. As a matter of fact, economic downturn hardly affects the consumption
of sachet or bottled water because water is as important as the air we breathe.
Production companies in the sachet and bottled water industry basically purify and
bottle water into plastic and glass bottles for consumption. The bottled and sachet
water are properly packaged (sealed or capped) and labeled accordingly before
being sold to the general public.
Despite the fact that there are big corporations who are into the production of
bottled water, the fact remains that starting a small – scale sachet water production
business has minimal barriers to entry, with low startup capital. Most players in the
sachet water production industry are small to medium size establishments that cater
to the local community.
Over and above, the bottled water production industry that sachet water is a part of
is indeed a profitable industry and it is open for any aspiring entrepreneur to come
in and establish his or her business.
Sim Bottle Water Production Firm is going to operate a standard and licensed
bottled water production company whose products will not only be sold in in
Kano State, but also throughout Nigeria. We are in the bottled water production
business to make profits and also to give our customers value for their money.
Our mission is to establish a standard and world class bottled water Production
Company that in our own capacity will favorably compete with leaders in the
industry . We want to build a bottled water production business that will be listed
amongst the top 20 water brands in the country in the nearest future.
Business Objective
MARKET ANALYSIS
Market Trends
If you are conversant with the trend in the bottled water production industry, you
will quite agree that despite the fact that there are competitions in different stages
of the industry. That is competitions amongst bigger corporations such as Nestle
Foods, H20, Cway, Spring water, et al and also competitions amongst smaller and
medium scale bottled water production companies.
Lastly, another trend in the bottled water production industry is the adoption of eco
– friendly approach towards the production and packaging of bottled water. As a
matter of fact, the industry’s adoption of eco-friendly practices will likely persuade
environmentally conscious consumers to buy its products, while increasing
operators’ efficiency.
When it comes to selling bottled water, there is indeed a wide range of available
customers. In essence, our target market can’t be restricted to just a group of
people, but all those who resides in our target market locations.
In view of that, we have conducted our market research and we have ideas of what
our target market would be expecting from us. We are in business to engage in
wholesale distribution and to retail bottled water to the following groups of people;
Hotels
Restaurants and Canteens
Event Planners, Parties and Corporate Functions
Corporate Executives
Government Officials
Business People
Celebrities
Military Men and Women
Sports Men and Women
Students
Tourists
Everybody in our target market location
A close study of the bottled water production industry reveals that the market has
become much more intensely competitive over the last decade. As a matter of fact,
you have to be highly creative, customer centric and proactive if you must survive
in this industry.
We are aware of the stiffer competition and we are well prepared to compete
favorably with other bottled water production Kano and throughout Nigeria.
Sim Bottle Water Production Firm is launching a standard bottled water brand
that will indeed become the preferred choice of residence of City and every city
where our bottled water will be retailed.
Part of what is going to count as competitive advantage for Sim Bottle Water
Production Firm is the vast experience of our management team, we have people
on board who are highly experienced and understands how to grow business from
the scratch to becoming a national phenomenon.
So also, the wide varieties of bottled water in terms of flavor, packaging and size et
al that we produce, our large national distribution network and of course our
excellent customer service culture will definitely count as a strong strength for the
business.
Lastly, our employees will be well taken care of, and their welfare package will be
among the best within our category (startups bottled water companies) in the
bottled water industry, meaning that they will be more than willing to build the
business with us and help deliver our set goals and achieve all our aims and
objectives. We will also give good working conditions and commissions to
freelance sales agents that we will recruit from time to time.
SWOT Analysis
We know that if a proper SWOT analysis is conducted for our business, we will be
able to position our business to maximize our strength, leverage on the
opportunities that will be available to us, mitigate our risks and be welled equipped
to confront our threats.
Sim Bottle Water Production Firm employed the services of an expert HR and
Business Analyst with bias in start – up business to help us conduct a thorough
SWOT analysis and to help us create a business model that will help us achieve our
business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Sim Bottle
Water Production Firm;
Strength:
Part of what is going to count as positives for Sim Bottle Water Production Firm
is the vast experience of our management team, we have people on board who are
highly experienced and understands how to grow business from the scratch to
becoming a national phenomenon.
So also, the wide varieties of bottled water in terms of flavor, packaging and size et
al that we produce, our large national distribution network and of course our
excellent customer service culture will definitely count as a strong strength for the
business.
Weakness:
A major weakness that may count against us is the fact that we are a new bottled
water production company and we don’t have the financial capacity to engage in
the kind of publicity that we intend giving the business especially when big names
like Nestle Foods, H20, Cway, Spring water, Co et al are already determining the
direction of the market in Kano and Nigeria.
Opportunities:
The opportunities for bottled water production companies with a wide range of
bottled water products are enormous. This is due to the fact that almost all
Americans and people from all over the world can afford bottled water and they
drink it regularly.
Threat:
We are quite aware that just like any other business, one of the major threats that
we are likely going to face is economic downturn and unfavorable government
policies. It is a fact that economic downturn affects purchasing power. Another
threat that may likely confront us is the arrival of a new bottled water production
company in same location where ours is located.
SECTION THREE
Sim Bottle Water Production Firm is a business that is established with the aim
of competing favorably with other leading bottled water brands in the industry.
This is why we will ensure that we put the right structure in place that will support
the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking,
customer centric and are ready to work to help us build a prosperous business that
will benefit all the stake holders (the owners, workforce, and customers).
Merchandize Manager
Manages vendor relations, market visits, and the ongoing education and
development of the organizations’ buying teams
Helps to ensure consistent quality of bottled water
Responsible for the purchase of raw materials and packaging materials
(bottles, and plastics et al)
Responsible for planning sales, monitoring inventory, selecting the
merchandise, and writing and pricing orders to vendors
Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
Accountant / Cashier
Ensures that all contacts with customer (e-mail, walk-In center, SMS or
phone) provides the client with a personalized customer service experience
of the highest level
Through interaction with customers on the phone, uses every opportunity to
build client’s interest in the company’s products and services
Manages administrative duties assigned by the store manager in an effective
and timely manner
Consistently stays abreast of any new information on Sim Bottle Water
Production Firm products, promotional campaigns etc. to ensure accurate
and helpful information is supplied to clients when they make enquiries
Market Strategy
Before choosing a location for Sim Bottle Water Production Firm and also the
kind of distilled drinks to produce, we conduct a thorough market survey and
feasibility studies in order for us to be able to be able to penetrate the available
market in our target market locations.
We have detailed information and data that we were able to utilize to structure our
business to attract the numbers of customers we want to attract per time and also
for our products to favorable compete with other leading brands Nigeria.
We hired experts who have good understanding of the bottled water production
industry to help us develop marketing strategies that will help us achieve our
business goal of winning a larger percentage of the available market in Nigeria.
Despite the fact that our bottled water production plant is a standard one with a
wide range of bottled water products that can favorably compete with other leading
brands, we will still go ahead to intensify publicity for all our products and brand.
We are going to explore all available means to promote Sim Bottle Water
Production Firm.
Sim Bottle Water Production Firm has a long term plan of distributing our
bottled water in various locations all around the country .
As a matter of fact, our publicity and advertising strategy is not solely for selling
our products but to also effectively communicate our brand. Here are the platforms
we intend leveraging on to promote and advertise Sim Bottle Water Production
Firm;
country.
Engage in road show from time to time in targeted communities
Distribute our fliers and handbills in target areas
Position our Flexi Banners at strategic positions in the location where we
intend getting customers to start patronizing our products.
Ensure that our bottled water is well branded and that all our staff members
wear our customized clothes, and all our official cars and distribution vans
are customized and well branded.
When it comes to pricing for products such as bottled watered, there are two sides
to the coin. We are aware of the pricing trend in the bottled water production
industry which is why we have decided to produce various sizes of bottled water.
In view of that, our prices will conform to what is obtainable in the industry but
will ensure that within the first 6 to 12 months our products are sold a little bit
below the average prices of various bottled water production brands in the United
States of America. We have put in place business strategies that will help us run on
low profits for a period of 6 months; it is a way of encouraging people to buy into
our bottled water brands.
Payment Options
At Sim Bottle Water Production Firm, our payment policy is all inclusive
because we are quite aware that different people prefer different payment options
as it suits them. Here are the payment options that will be available in every of our
outlets;
Payment by cash
Payment via Point of Sale (POS) Machine
Payment via online bank transfer (online payment portal)
Payment via Mobile money
Payment via check (for wholesale distributors)
In view of the above, we have chosen banking platforms that will help us achieve
our payment plans without any itches.
GENERAL SAFETY:
Fire Extinguishers
Fire Blankets
Sand Buckets
This is your source of raw water for producing your packaged bottle or sachet
water. The submersible pump is meant for factories that use boreholes instead of
municipal or other water source. All the pumps must not be made from galvanized
metal. Three (3) Storage Tanks are ideal. One tank for Raw Water storage, another
for treatment process and the third tank for post-Treatment water Storage.
There are completely automated combo units with RO Filter systems for water
treatment, these are more expensive. The fibre filter plant is the next best filter
module followed by the regular carbon and sand filter units. Dosing can be
manually done, however, dosing pumps make for easy addition of chlorine and
other chemicals during the treatment process.
For Bottle Water production, the machines can be fully automated combo units or
semi-automated units. Manual filling methods are not allowed by regulation for
conventional plastic bottles sizes except for dispenser bottles.
For Sachet Water production, an analogue or digital automatic sachet water filler
machine is the standard. The read out screen and knobs is what differentiate
analogue sachet water filler machines from digital ones.
PACKAGING MATERIALS
Financial Projection
Sources of Income
Sim Bottle Water Production Firm is established with the aim of maximizing
profits in the bottled water production industry in Nigeria and we are going to go
all the way to ensure that we do all it takes to sell a wide range of bottled water
products to a wide range of customers.
Sim Bottle Water Production Firm will generate income by selling the following
products;
Still water
Flavored water
Sparkling water
Purifying and bottling water
Purifying and bottling carbonated water
Labeling bottled water products
Promoting bottled water brands
Manufacturing ice
Sales Forecast
One thing is certain when it comes to bottled water production business, if your
bottled water are well – packaged and branded and if your production plant is
centrally positioned and easily accessible, you will always attract customers cum
sales and that will sure translate to increase in revenue generation for the business.
We have been able to critically examine the bottled water production industry and
we have analyzed our chances in the industry and we have been able to come up
with the following sales forecast. The sales projection is based on information
gathered on the field and some assumptions that are peculiar to startup.
Below is the sales projection for Sim Bottle Water Production Firm, it is based
on the location of our business and other factors as it relates to small scale and
medium scale bottled water production company start – ups in Nigeria;
Generating Funding /
Startup Capital
for Sim Bottle
Water
Production Firm
The future of a business lies in the numbers of loyal customers that they have the
capacity and competence of the employees, their investment strategy and the
business structure. If all of these factors are missing from a business (company),
then it won’t be too long before the business close shop.
One of our major goals of starting Sim Bottle Water Production Firm is to build
a business that will survive off its own cash flow without the need for injecting
finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is
to retail our bottled water and other products a little bit cheaper than what is
obtainable in the market and we are well prepared to survive on lower profit
margin for a while.
Sim Bottle Water Production Firm will make sure that the right foundation,
structures and processes are put in place to ensure that our staff welfare are well
taken of. Our company’s corporate culture is designed to drive our business to
greater heights and training and re – training of our workforce is at the top burner.