The observation
made indicates that demands and needs of the resident is not being satisfied
within the Local Government Area. But they travel far off to satisfy these
needs of theirs. Our survey also showed that the market for this product (service)
is up to seven hundred thousand people whose needs will be satisfied provided
there is regular and sufficient supply of the service on daily basis. According
to our research the market is estimated for about three (3)
major communities
with her sub- communities, which is made up of over total population of seven
hundred thousand (700,000) people.
In the research
it shows that there exist other competitors around the neighboring local
government like Ishiagu in Ivo local Government Area all in Ebonyi State, each
makes over an average of N30 million
net profits annually.
Currently,
minimum withdrawal in community bank in Nigeria ranges from 500-1000, depending
on the type of account of the individual operated.
Since it is new
in the market, it is estimated that they should be able to capture 500% of our
market share so as to generate at last 81,000, 000 sales with increase at 17%
for the first two years.
While the share of deposits made in community bank
divided from 70% in 1994 to 12.4% in 2009, the current economic recession is
proving to be boon for these organizations. Customers are losing faith in large
financial institutions, and with failure of the “ too big to fail” theory, are
moving their deposit back to Community Bank to capitalize on this shift and put
the right program in place to accelerate their success
MARKETING PLAN
(a)
Distribution
channels: This is planning in order to keep in constant with our customers
through mobile phones, at the same time there will be provision for e banking
so that people from diverse places can bank with us at any point in time.
(b)
Sales quota: every department will be assigned to
sale quota; to enable them achieved their estimated target sales of 81 million
annually.
(c)
Advertisement/ sales promotion
Advertising on
television - N10,000
Advertising on
newspaper - N20,000
Advertising on
internet - N10,000
Advertising on
radio N 40,000
Total N80,000
D. Management’s
sales promotional activities /negotiation: In all, the manager and executive
directors will try to secure the retail customers, commercial customers and
public sector and make sure they are in good term with them.
MANPOWER
REQUIREMENT
|
General Manger
Office
Branch Manager
Secretary
|
1 @ N300,000 per month
1 @ N30,000 per month
|
|
Marketing and
Sales Department
Marketing
Manager
Sales
Representatives
Secretary
|
1 @ N250,000
per month
6 @ N25,000
per month
1 @ N15,000
per month
|
|
Warehouse
Department
Security men
Cleaners
Drivers
|
6 @ N300,000
per month
4 @ N300,000
per month
4 @ N300,000
per month
|
|
TOTAL
|
N4,945,000
|
ESTIMATED
CAPITAL EXPENDITURE
The estimates of
capital expenditure will be mainly on quotation received from prospective
suppliers. It comprises the cost of transportation as well as installation.
Assuming the next 10 years
Land building
N5,000,000
Plant and machinery N3,000,000
Office furniture & equipment N450,000
2 office cars
N20,000,000
Tools and miscellaneous items N50,000
N10,500,000
ESTIMATED
WORKING CAPITAL
Labour _____________ N7, 194,000
Raw material __________ N5,000,000
Other operations management _ N100,000
N12, 294.000
PROJECT INCOME
STATEMENT:
Below are the income statement
Sales N81 000,000
Wages & salaries
N43, 164,000
Fuel and power
N800,000
Insurance
N5,000,000
Advertisement
N85,000
Maintenance/repairs
N1,000,000
Stationery
N45,000
Miscellaneous N50,000
Total operating expenses N50, 528,000
Net profit before tax N30,
472,000
Less 40% tax
N12, 188,800
Net profit
N18,283,200
PROFITABILITY
ANALYSIS
Sales per annum
N81,000,000
Sales per month
N6,750,000
Expenses per annum
N50,528,000
Expenses per month
N4,210,666.00
Thus profit per month = sales per month
– expenses per month =N6, 750,000 - N4, 210,666.00 per month
Profit per month = N2, 539,334.00
Profit per annum= sales per annum-
expenses per annum
N81,
000,000 -N50, 528,000
Profit per annum = N30, 472,000
Less 40% tax = 40/100 X profit per annum
Less 40% tax =40/100 X 30,
472,000 =N12,188,800
Net profit after tax = profit per annum
=Less 40% tax
Net profit after tax =N30, 472,000 –N12,
188,800 =N18, 283,200
ANNUAL RATE OF
RETURN
Rate of return = Profit X
100
Total investment 1
But, net profit = N18, 283.200
Total investment =
N50,528,000
Rate of return = N18, 283,200 X
100
50,528,000 1
.: Rate of return = 36.184 = 36%