Goat Milk in Qatar, Business Plan Example
Words: 5491Business Plan
This is a business plan for the company Ma’iz Goat Milk Company. This paper describes the industry of the buying, processing and selling of goat milk. More specifically, this business plan discusses the following: the market opportunity for the business, the product overview, the marketing plan, the financial overview, the management, SWOT analysis and sustainable issues that the company faces. In addition, recommendations are also laid out for the purpose of showing how the business can improve its operation and to what strategy can the business benefit from to maximize profitability.
Description of Opportunity
Since the inception of the company, it has grown into a strong and most competitive goat milk brand in the whole of Qatar with the opportunity to expand and industry domination. This is proven by the fact that the business sales and net income is increasing every year as shown by the balance sheet for the last 3 years. Statistics has it that Ma’iz Goat Milk Company has netted a total of$857,710.83 in the year of 2011 with a total of $206,626.23 net income after taxes. In this regard, it can be seen that the company’s profit and market share is increasing at a remarkable pace. The growth of the company can be attributed to the increasing sales of its units on a monthly basis with an access to the fourth location towards the end of 2011.
On the other hand, while the company has a strong brand of goat milk, it cannot be denied that its profit and market share is heavily reliant on the bottled milk products more than anything else. Although the company has a better and wider product market, the truth remains that Ma’iz is known for its bottled goat milk. The company will be badly affected if another competitor comes in with better prices and if the goat milk industry collapses for some reason. This is one of the most vulnerable aspects of the business.
The target market of the company are individuals who are 30 years and older who can afford the product. However, there is still a need to reconsider the demographics of the business to target wider audiences rather than just the 30 years old and older population. Also, it cannot be denied that Ma’iz products are also susceptible for substitution. This is due to the price competition. The growing numbers of competitors indicate customers’ buying power. The company will not be able to determine a fix price on their products nor the value of it. If the price is too high, the customers can easily go back to cow’s or camel’s milk for affordability. Consumers are always finding better deals and prices and this will greatly affect the profitability of the company.
The advertising strategy of the company can be rooted from the creation of organic and healthy goat milk product in a glass bottles that have the most appeal to its targeted audience. Such appeal combined with the right endorsement, promotions, and advertising strategies and methodology have yielded good revenue for the company. The advertisements of the company give an impression to the buyer that once the product is purchased, the buyers and consumers will lead a healthy lifestyle as organic goat milk has lots of health benefits that the consumers can take advantage from.
Economics of Opportunity
The main agenda of the business is to continue building its reputation. Most of the cost of business will be geared towards the branding and reputation building of the company with the utilization of free advertisements through social networks and the likes. Such financial activity will take place after the acquisition of equipment and the main plant location for the business operations.
Management Team Description
The management team of the business will be consisted of shareholders, manager of the business development sector of the business, administrative assistant, executive committee that is composed of treasurer, chairperson and secretary, accountant, plant operators, delivery and transportation personnel, and various sales agents.
The goat milk industry in Qatar is one of the emerging sectors of the economy. Goat milk is not just emerging so that there will be an alternative to cow’s and camel’s milk. This product can improve the health and the lives of many communities by reviving the goat farming business. It will allow for the employment of hundreds of people not just in the farm industry but as well as in the processing of milk business. This business will have a great and remarkable impact in the agricultural aspect of the economy. It is the goal of this business plan to show the potential for growth, marketability and profitability of the product.
Vision, Mission and Objectives of the Company
The main vision of the company is become the supplier and distributor of the highest quality goat milk in Qatar while maximizing profit is what the company ascribe to be. The mission of the company is simple: to be the most competent and proficient seller of goat milk in Qatar. The company, Ma’iz Goat Milk” is a start-up business and have the following objectives:
- Develop a solid and strong partnership with the local goat milk producers/famers close to the plant of operations.
- To be able to sell the processed goat milk to various top supermarkets locally and expand to include national distribution.
- Open the business structure to distributorship for better control of the market.
- Ideally be open to expansion of the product line to include cheese and other goat dairy products once the distribution of goat milk becomes stable.
The Ma’iz Goat Milk is a company focused on processing goat milk that is produced in some of the best goat farmers in the country. Ma’iz Goat Milk Company is a proud processor of goat milk that is distributed locally and nationally. The goat milk industry is a growing industry and the company wants to tap into the market and share with the potential profitability. The company will be marketing milk all across Qatar with a start-up of local markets as the main target. It is the goal of the company to be able to process goat milk with a high number of at least 200,000 liters on a weekly basis and make successful distribution. Ma’iz Goat Milk Company will be processing goat milk to become pasteurized and available for adult consumption partnering with goat farmers in the area that are able to produce exceptional goat milk.
Activities in the 5 Years of Operations
Ma’iz Goat Milk Company has been in operation in the last five years. The main activities of the business is revolving around the buying, processing and selling of raw goat milk to supermarkets, other retailers and local milk vendors. The company has invested approximately $500,000.00 for the purchase of equipment needed for the production and business operations since its inception. The company is determined to be the number 1 brand in the goat milk industry. Ma’iz is able to get supplies from small family-owned farms to ensure quality of the organic milk being processed. In this regard, the company has worked hard in building its reputation with its focus on the following factors: emotional appeals that point how the leaders and the key players in the business feel about the company (positive or negative); products and services that primarily ask the question of whether or not the product and services are selling and if they are being offered with stamps of high quality, innovation and reliability; financial performance is the measurement of the profitability of the company. It is the evaluation of whether the stakeholders are satisfied and happy with the profitability of the company; vision and leadership entails the vision and goals that the company has that is geared towards the future. Clear vision and leadership that can recognize what needs to be done to make the company grow and expand to take advantage of the various opportunities for success and profitability; work environment means providing a healthy working environment for the workers. With the remarkable growth of the business, expansion is being considered to include exporting and opening the business for distributorship. The business is currently operational and making profits.
There are various ways in which goat milk can be consumed. Some people prefer it raw while others processed or pasteurized. There is also a market for goat cheese which is also a growing niche. The market for goat milk is growing and it can be estimated that about 3880 tons of fresh and raw goat milk can be produced by 300,000 goats on a yearly basis. Kids can technically consume goat milk 12 months after their birth/delivery. The rest of the growing consumption is attributed to adults. The raw goat milk market is taking about 400,000 liters of milk yearly while the processors (cheese and pasteurized milk products) take an estimate 27 tons yearly. Although the production of goat milk can be seasonal, the market does not have a price drop or a seasonal price fluctuation. The only time production could potentially stop is when the goats have stopped producing due to being dried off.
The demand for goat milk, particularly in Qatar, is growing. Yet, people are having a hard time finding a place that sells the product. In this regard, the market opportunity for Ma’iz is huge since it can easily penetrate the market and actually gain loyalty from the consumers. As a matter of fact, people in Qatar are trying to get imported goat milk from the Philippines and the United Kingdom since it is sometimes hard to find the product in the local supermarkets. Specialty shops usually carry the product in tetra packs and therefore, the glass bottle packaging is more enticing to the consumers and a lot healthier. There are also some famers that are directly selling raw goat milk products to the consumers. However, with the increasing health concerns, more and more people are buying pasteurized milk products. Hence, people are now resorting to quality pasteurized goat milk products that are available in the stores. The stores, then, in this situation are the middlemen for the product distribution.
The main focus of the Ma’iz Goat Milk Company is to ensure the provision of competitive and affordable goat milk products in the market. The main products of the company are processed goat milk in glass bottles to be sold to adults that are 30 years old and over. In addition, the products will be sold in supermarkets, grocery stores, retail stores, wholesale outlets, local milk vendors, hotels and the likes for market distribution. The advantage that the business has over the other industries is that the interest in the goat milk production, processing, buying and selling is growing not just locally but internationally as well. The business will be gathering goat milk from various farms in the areas and establish a contract with these farms to ensure the flow of the milk supply and delivery of the products to the consumers. The business will start with five farmers. The business will start a contract with more farmers as the need for it rises. In lieu of this, the business will open a short list of candidates for milk supply. An application form will be sent to various farmers and those who have the best deals and quality products will be selected and short-listed as well. With the increasing demand for the product, it cannot be denied that the business will not have a problem finding and contracting suppliers as the business continue to grow.
In order to ensure the quality of the milk product, a usual supplier of the product will be a family-owned farm. In this way, the company will not be dealing with suppliers that use hormones and steroids to produce more milk than what the goats can produce normally. The problem with the dairy industry is that a lot of farmers are using hormones for their animals to increase production. The Ma’iz Goat Milk Company’s goal is to ensure the highest quality and healthiest goat milk in the market. Therefore, the company only wants to deal with family-owned farm that will not use chemicals and other harmful substances in their farm. In addition, a typical farm that is family-owned have about 1000 does to milk. Such farm businesses can easily supply the demand for the goat milk products and can sustain an operation especially for a start-up business like Ma’iz.
The goat milk that will be collected from the farmers will be processed based on the specifications and standard set by the industry and then bottled using glass bottles. The end products will be distributed to various markets and milk vendors in Qatar primarily targeting 30 years old and above consumers. The process of the collection of the milk will be complex as there is a need for the transportation of the milk product without having to compromise the quality and freshness of the goat milk. A great deal of coordination and cooperation concerning the logistics of the business is needed. Timely pick-up schedules will be put in place. A laboratory for the testing of the milk will be set up in the plant.
The agricultural aspect of the economy is undergoing a huge and remarkable transition nowadays. This is proven by the fact that the agricultural consumers are shifting to eating healthier food products that are usually organic from processed food. In addition, the tastes and the preferences of the consumers are being opened into a world of exotic consumption. Meaning to say, the consumers are no longer scared to try what can be considered as exotic food such as goat and sheep dairy products. This trend is now opening the floodgates of production possibilities and capabilities concerning goat dairy products from milk to cheeses. It is a known fact that there are three criteria that should and must be met in order to open a new niche in the market. These criteria are: 1) demand, 2) product that can supply and sustain the demand for production and consumption and 3) manufacturing and distribution. Clearly, there is a need for the demand. The consumers must be looking for the product or starting to buy or consume the product. The niche market of goat milk consumption is growing and it is here. There is an international, national and local demand for goat milk products. In addition, the number of goat farmers is increasing as the demand for goat milk production increases as well. One farmer might not be able to supply the production demand but the other existing goat farmers are able to supply and support what is lacking. Likewise, distributors are increasing in number as well.
The main targeted consumer of this business product are people that are 30 years old and over. However, the business also targets retail stores, wholesale outlets, supermarkets, milk vendors who conducts business locally, hotels, convenient stores and the likes as a channel of distribution to reach the targeted main consumers as end users. The main market areas for the distribution are urban areas as the demand for goat milk products are higher than in the rural areas. It is a known fact that as more people become aware of the health benefits that can be gained from drinking goat milk the demand for the product will also increase considerably.
One of the main focuses of the business is to ensure quality of the goat milk products. This is due to the fact that consumers are now concern and geared towards eating healthy. Therefore, the company will make all reasonable efforts to ensure the highest quality of milk products focusing primarily on ensuring that hygienic standards set forth for the proper handling, transportation, store and packaging of the goat milk are followed thoroughly. There will be collaboration efforts between the company and the public health organizations and agencies for the regular assessment of the products to ensure quality and consumption approval of the product. In addition, the company will always follow through and ensure that the demands for supply are being met accordingly. It is guaranteed that with strong partnerships with goat milk producers and farmers, large-scale orders will be delivered and accommodated. Moreover, with the focus on the health benefits of goat milk and other value-added products, it cannot be denied that production will not stop as more and more consumers will be encouraged to make goat milk products a part of their health living.
|This specific group is comprised of:
research services and dairy associations.
|Small farmers, family-owned farms, groups of farmers, and cooperatives. Large farms might be considered upon intent to apply as producers/suppliers.||Ma’iz Goat Milk Company.||Ma’iz Goat Milk Company will be processing the goat milk collected for bottling and selling in supermarkets, grocery stores, retailers and other local milk vendors in the country/area.||This will be comprised of the channel of distribution that will be used by the company to sell the product and reach its targeted market. This group could be any of the following: distributors, retailers, supermarkets, grocery stores, brokers, local milk vendor, restaurants, hotels, and wholesale outlets among many others.|
The main competition for goat milk in the product is the traditional cow’s milk and camel’s milk that are already established in the market. Aside from these, there are also some other brands that are selling goat milk in the market and some that are being imported by some people. Since goat milk is a niche market and some buyers are not able to find a store that sells the product, consumers are getting the product from the United Kingdom and some from Manila. Not to mention that the targeted middlemen and distribution channels are also the biggest competitors of the business. This is due to the fact that they can distort and control the prices of the products in the market. The factories specializing in dairy products are a big competitor as well. These factories have control over the prices and the distribution of the products. They can produce more than what small businesses can produce. Because of this, they always have a strong market presence locally and nationally. Their products are in always on the dairy products shelf in the market. They are highly competitive and are able to use a lot of their resources for branding and advertising.
The main contentions of these businesses and brands against the Ma’iz goat milk products are the bigger distribution channel as well as the market share that they have already established. In addition, the prices of milk products can sometimes be cheaper than the goat milk and therefore has the ability to attract more customers. However, the brand of Ma’iz prides itself with quality goat milk and its promotion and marketing capabilities.
The distribution of the Ma’iz goat milk will begin in the acquisition of approval to sell on supermarkets, grocery stores, retail and wholesale outlets and local milk vendors. As the market share of the company grows, the product will also target restaurants and hotels for distribution. In this regard, the product can be sold on a larger scale. The major strength of the company lies on its advertising and marketing skills. This aspect of the company has an advantage over its competitors due to the fact that it will utilize the help of famous individuals for its promotion not just on television but also through radio stations. Print media will be utilized as well to promote the business and the products. In addition, the company will also utilize social media networks for campaigns and promotions. In this way, the company will save some money and resources by the free advertisement that can be achieved through Facebook, Instagram, Twitter and other social networks and websites. The company will create a Facebook page focusing on the products and will request friends and relatives to share and like the page. To encourage people to share and like the page, free samples will be given away. Criteria will be set and a raffle/draw will be held to pick about 5 people or so to receive a free sample. The cost that will be incurred in this promotion is not as high as television commercials and other print advertisements. As a matter of fact, a lot of people have successfully launched their business using Facebook and other social media networks. It is the trend that the company will utilize for maximum profit.
Moreover, joining associations and milk centers will help the company to reach potential goat farmers for buying and collecting goat milk for processing. There is a need for establishment of rapport, contacts and outlets where the business can easily reach the targeted audience and people that will play a part in the success of the business. Co-operatives are important too since it is a gateway to bargaining among farmers and processors of dairy products. Aside from the web advertisement that aims to target online buyers, the company will also conduct direct sales not just to the retail and wholesale outlets but also to homesteads. Gaining approval from supermarkets, retail and wholesale outlets might require product following and selling capability, hence, it is important to reach out to consumers even from a personal network only to prove marketability and potential of the product. The visibility of the product will be enhanced through the distribution of brochures and fliers especially in the supermarkets and malls. Product awareness is important to get the label out in the open. Trade shows will be explored as well. Shows and exhibitions can attract buyers in a large-scale and tap into the confidence of the potential buyers- both small and large markets. If the budget permits it, billboards will be utilized as well.
The business will try and aim to sell the product for $5.50 per liter. However, the price might get influenced by the demand and the supply aspect of the economy. The business will make sure that the pricing is affordable without compromising profitability and customer loyalty. Elucidating further, the price of the product will be affected and determined directly by the following factors: price of the raw goat milk, the collection expenses, the storage, delivery and transportation, and manpower. Additional cost that will affect the determination of the price in which the product will be sold comes from the chilling process expense, taxes, bulk orders, processing and tariffs.
A business plan will not work unless there is a competent group of people who will effectively manage, control and implement the business plan. Ma’iz Goat Milk Company will have the following staff with their roles in the business:
This group of people are not limited to the owners but also for farmers and other people who have interests in and know the business. The amount of shareholding will be based on the amount of investment that each person will contribute to the operations of the business. The shareholders will not just be the source of financial aid of the business but will be given the opportunity to participate in decision-making and strategizing in the aspect of approving reports, schemes, methods of operations, expansion and other important aspects of the business activities.
A good business has a good chairperson, treasurer, secretary and their reliable and efficient assistants. The executive committee will be the one responsible in making sure that the company is going and moving in the right direction. The committee will ensure that the development of the business is in accordance with the policies and agenda set out on a daily basis.
Manager (Business Development)
The manager of the business development will be responsible for the coordination and supervision of the operations of the business such as the collection of the milk, the processing of the goat milk to the distribution to the various markets for selling.
The accountant will be the one responsible for the management of the accounting and financial aspects of the business. The tasks of the accountant can be summed up to the following: keeping of the financial records; managing the existing relationship between the debtors and the creditors (if there is any); oversee the estimation of budgets and preparing the same; and making sure that all payments and bills are coordinated.
An administrative assistant is needed to make sure that the records and all correspondence related to the business operations are properly managed and processed accordingly. Follow-ups on orders and coordination of incoming deliveries and management of the transportation will also be included in the daily task of the administrative assistant.
There will be a need for at least four plant operators to work the equipment related to the processing of the raw milk for bottling and selling. A supervisor will be needed as well to ensure that all the plant operations are well-managed and to assist in troubleshooting as necessary. The goal is that the plant operators will be able to manage the plant properly to ensure and maintain a sustainable production of Ma’iz goat milk.
Delivery and Transportation Personnel
Two drivers will be needed to man the delivery and transportation aspect of the business. The schedule will be 4 on and 4 off. Meaning to say, the two drivers will alternate on their working schedule. They will be responsible for the collection of the raw goat milk from farms and collection centers. They will also be responsible to make sure that the products are getting delivered on timely manner to the buyers and end users.
Commission-based sales agents will be required as well for the marketing and distribution of the products. The sales agents will be responsible for communicating and promoting the products to various local mil vendor, retail stores and wholesale outlets. The salary will be commissioned and will depend on how well the sell the products. In this way, the sales agents will work hard to promote the product and make money from it.
These people are the main key to unlocking the potential of a solid reputation in boosting the profitability and the overall effectiveness of the company is the leaders. The leaders play an integral part in determining how the company can achieve success. They integrate in order to ensure that they have the vision articulated and identified. They also provide a model that can help the organization and business to achieve its goals and missions. They are the ones who set high expectations for the employees to meet, provide support and stimulate the stakeholders’ intellect to make sure that all aspects of business is being taken-cared of. This is an important process because leaders only want what is best for the company in general and since reputation is a valuable asset of the company, they need to focus on it
|Large companies and factories have the potential to address their marketing strategies and promotions aggressively and unfairly.||Survey of the market will be conducted to determine the appropriate marketing, promotions and advertising strategies to counteract the big players and companies in the industry.
Mapping of potential and current business scenarios will be conducted periodically. This is to update the company of the changing patterns of the consumers’ behaviors and determine such changes and address it.
|The middlemen’s ability to influence the market.||Strengthening the bargaining power of the farmers and their own market’s competitiveness.|
|Outbreak of certain diseases among the herd.||Regular training and seminar on prevention of disease and control of the same.|
|Changing price of fuel.||Increase of the price of the fuel and its effects to the business can be mitigated by setting up efficiency actions. These measures will allow for the stability of the price of the product despite the external factors that are trying to influence the business activities.|
|Cooperation between the shareholders and the famers will exist and the business will move forward as planned.||Collaborative efforts will be made in order to ensure the success of the business and gain continued support.|
|Prices of the milk will be stable and will not be affected by external factors.||Business competitiveness will increase but Ma’iz brand will remain the top selling milk product in the market.|
There is always a need for development and improvement in the services. The management of Ma’iz must pinpoint the innovations and working managerial processes necessary to access new technologies and services to improve how business is done. There is also the need to focus on the various building blocks that are essentially required for a successful optimization of the business processes. These building blocks such as customer, strategy, flexibility and change are important to ensure that the business is on the right track to betterment and improvement. It is true that the building blocks of business process management are customer, strategy, flexibility and ability to change. This is because of the fact that the end-result of the processes involved in the system yield to the needs of the customer needs. Since the competition in the business is high and everyone wants to tap into the profitability and potential of the industry, Ma’iz is making sure that the increasing demands and needs of the target consumers are being met accordingly.
In this regard, it cannot be denied that Ma’iz has the potential to continue its rapid success. However, there are certain things that it needs to focus on such as ensuring that the strategies are aligned with its business process. The absence of such alignment will only result to failure. It is a known fact that in every business must be implementing strategies that are consistent with the goals of the company. Without the consistency, the company will fail. The processes will not be able to reach the goals even though they are being executed properly. Everything in a business must work hand-in-hand and in accordance to the goals to meet the expectations set forth by the company (Ulrich, 2005). In reality, the success of the company lies in its leaders and the collaborative efforts that must be exerted in order to gear the business in the right direction. More importantly, though, the business must focus on its reputation building. With all the foregoing, it cannot be denied that the benefits of a good reputation range from simple profitability to monopoly of business. It does not just allow Ma’iz to outperform its competition but it changes the way its exercises its power. Reputation building is one of the phenomena in the business industry today. It will strengthen not just how any company or Ma’iz (in this case) conducts its business but more importantly it is capable of strengthening the mental state of the leaders, the workers and the whole company. Reputation does not isolate one aspect of a company. Rather, with the proper building and maintenance of a good and strong reputation, the consumers and the employees can evaluate the company in a different light. Employees are getting more motivated, efficient and effective in their job. There is respect for leaders and vice versa. The highlight speaks of honesty and integrity in which a lot of companies lack nowadays. They offer services and products that do not meet standards and providing false hope and promises of better service (Johnson, 2001).
The importance of reputation cannot be stretched enough. Leaders integrate because reputation is not just about how the company looks in a television advertisement. But it is about how the company is view in its entirety not just by consumers but as well the various stakeholders such as leaders, consumers, workers and the society in general. Leaders are now seeing the importance of how they present their company to the public as it is the reflection of its leaders and workforce. It shows the strengths and weaknesses of a business. But the truth is it also presents opportunities that each Ma’iz can take advantage from in order to ensure success and profitability. In order to build the reputation of the business, the leaders do not just integrate but they also work hard to find ways on how to collaborate with both private and public sectors and help in addressing social issues. It is not always about the profitability. Ma’iz realized the need to pay it forward to the communities that help them achieve their goals and objectives. All the stakeholders in the company are equally important. They all work together to build a strong foundation of their identity and strive hard to maintain it. A good company has happy, motivated, efficient, effective, and determined group of key players. These factors are being boosted by the reputation of the company. A good leader knows that in order to succeed, one must have a reputation for without it, the company will soon cease to exist.
All in all, the business is a good investment and doing really well although there is a need for it to expand its products to include cheese and other dairy by-products that it to cover the other sectors in the business (Jacobson, 1995).
Ulrich, D. (2005). The HR Value Proposition. Boston: Harvard Business School Press.
Johnson, G. (2001). Exploring Corporate Strategy. London: Prentice-Hall.
Jacobson, I. (1995). The Object Advantage- Business Process Reengineering with Object Technology. Englewood Cliffs, NJ: Prentice-Hall.
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