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By the end of the first year the expected net profit/ earnings from sales before tax is N11,276,000 while net profit/earning after tax is N9,020,800, giving a 100.2% returns on investment (ROI) and 225.5% return on Equity (ROE). It is also expected to grow by 20% in subsequent years. This is shown by the expected earnings for the second year which gives N14,423,500 profit before tax and N 11,538,800 profit after tax generating 128% ROI and 228.5% ROE respectively.

The Competition:

Furthermore, the competitive edge of the business is in its ability to penetrate into the market freely, and the use of marketing strategies that will promote rapid turnover.  However, it has in mind to establish two other depots in Lagos area within the next three years. This project is highly recommendable, because judging from the above profitable measures.  It shows that the project offers good investment benefits which is found technically feasible, financially viable and economically desirable

NAME OF BUSINESS:

NATURE OF BUSINESS:

SITE LOCATION:

OFFICE ADDRESS:

Business Proposal on Cement Distribution Business in Nigeria – OBJECTIVE:

1.  To make cement available to the members of the public at a very affordable price.
2.  To close the gap in cement product supply chain that always cause product scarcity. This will make cement available to the public at all times.
3.  And focus the activities towards specific services delivery that will achieve the above objectives, and thereby to become a leader in this market.

Furthermore,

1.  Generate customer satisfaction so that at least 80% of our customer base is repeat business.
2.  To generate sufficient cash flow to finance the activities of the company, and the future growth and development of the company.
3.  Provide key resources needed by the company and its owners.
4.  To expand the business at a rate that is both challenging and manageable, and competitively enviable.
5.  And maintain a Constant growth in sales in 12 months.

VISION:

To become a household name in cement distribution in Lagos area of Nigeria. Achieve sales and services and profit growth goal of 20%, in the next three years.

MISSION STATEMENT:

A-Z Merchant Ltd mission is to become the recognized leader in its targeted local market in cement distribution, and to give customer optimum satisfaction, through its innovative, quality, and timely service delivery.
PURPOSE OF THE BUSINESS PROPOSAL:

The aim of this plan is to set up . A-Z Merchant Ltd using only 55% loan from the investors and 45% equity. The plan is to liquidate the loan with the interest within the first three years. It is hoped that by this time. A-Z Merchant Ltd would have been able to generate enough fund to stand by itself. . Further expansion and diversification will be the subject of a Growth Model Plan.

A BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA – COMPANY PROFILE:

A-Z Merchant Ltd was incorporated on the 6th of April 2017 with RC No 2419 and a share capital of One million Naira of one Naira per share. It is made up of six directors and shareholders. The primary object clause of the company is cement distribution “to carry on business of trading, marketing, sales and distribution of general goods, such as cement and blocks, commission agents, manufacturers’ representatives, general suppliers and general contractors.”

The Federal Inland Revenue Services (FIRS) Tax Identification Number( TIN) , VAT registration Number and bank account are being processed.

The company is located at Lagos, Nigeria. It was founded by Mr. AB Merchant. A-Z Merchant Ltd is a 100% Nigerian owned company engaged in providing high end user services with latest and innovative business support solutions that add value to any new or existing businesses. It is constituted of other five directors and investors.

The management will work with a strategic blueprint that identifies the needs in the market and develop solutions to meet these needs beyond the expectations of our end users using every available communication/delivery technologies.

DIRECTORS:

Names and briefs of the directors:

The board of directors are made up of, Mr. AB Merchant, CD Merchant, FH Merchant, JL Merchants, MO Merchants, RS Merchant. and YZ Merchant. They are all members of the same family. The CEO, Mr. AB Merchant is the prime mover and the key officer to drive the operations of the business.

PRODUCTS AND SERVICES:

Explained below is a description of the products offered by A-Z Merchant Ltd.

Wholesale Distribution of Dangote Cement:

The primary revenue source for the business will come from the wholesale of Dangote cement to the general public. The Managing Director Mr. AB Merhant intends to carry out multiple strategic marketing activities that will promote the distribution business which will generate high turnover for the business. He intends to source inventories/stock from the Dangote cement factory in Abajana, Kogi State, Nigeria.

Four employees (which include one Supervisor, one security man, one sales attendant, one driver) will be involved in the business operations and to assist customers with their needs.

Dangote Cement is a fully integrated cement company and has projects and operations in Nigeria and 14 other African countries. Its operations include, manufacturing/ importation, packaging and distribution of cements.

The Obajana Cement Plant (OCP) located in Kogi State is reputed to be one of the single largest cement plants in the world with a combined capacity of 10.25MMTPA.

Dangote Cement is also the biggest quoted company in West Africa and the only Nigerian company on the Forbes Global 2000 Companies.

CUSTOMER NEEDS:

The market characteristics show that there is steady demand for the commodity. Our survey also reveal that over 60% of the buyers ask for Dangote brand of cement. The fact that there is housing deficit and people are eager to have roof over their heads promotes the demand for cement. The location of this business is going to be in Lekki and later in Badagiri where there are a lot of building construction going on at all times.  In fact,  A-Z Merchant Ltd will sale to both retailers and direct consumers who could buy not less than 100 bags at a time.

PRICING:

One known fact about cement business is that it has a stable retail price which apply generally to all marketers. It is not foreseeable that a single wholesaler will be able to manipulate the price of the commodity. In such a price taker market, marketers make other marketing efforts to promote sales instead of price cut.

BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA.

A-Z Merchant Ltd will take the following measure to promote sales:

• Good publicity fliers, posters, and sign- posts
•  Regular visits to customers, construction sites etc.
• Retailers friendship – good public relations with retailers, this will make him form a clique of retailers that he can always count on.

   PROMOTIONS PLAN:

MARKETING OBJECTIVES:

Marketing objectives are to:

• Attract buyers
• Increase turnover
• Create customer
• Create customer satisfaction.

MARKETING STRATEGIES:

A_Z Merchants Ltd will apply a lot of marketing strategies which will aim at increased turnover. These will include:

1. Good public relations

2. Advertising methods – distribution of fliers, use of banners etc.

3. Sales incentives like free delivery service, advisory services etc.

BUSINESS PROPOSAL ON CEMENT DISTRIBUTION BUSINESS IN NIGERIA – FINANCIAL ANALYSIS:

In order to carry out this project, plans on how to raise the venture capital are stated below.