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Baby Nappies World

Executive Summary

The disposable nappy, an invention that revolutionized the baby care industry, exists today as a practical solution to the problem of dirty, smelly, wet baby bottoms throughout the world.

We are on the verge of entering a lucrative market in a growing country. The current population fertility rate estimated at 4.2 children1, and increased admissions in hospitals and clinics presents an opportunity for Baby Nappies World to enter and penetrate the baby nappies and sanitary pads market. Baby Nappies World is poised to take advantage of this growth rate and minimal local competition, with a dedicated and experienced staff, excellent order procurement, and effective management and marketing. The initial intention will be to provide nappies and sanitary pads to institutions and organisations including hospitals and wholesalers throughout Botswana.

Initial plans are to produce approximately 300 diapers per hour 5 days a week, utilizing an 8 hour working day, enabling us to produce a total of 48,000 diapers per month. As time progresses and we become more efficient in their production this figure should rise to approximately 56,000 per month. This would be for the diapers only though we do intend to also produce sanitary pads, though on an order basis.
We realise the fact that for us to prosper in this relatively untapped market, there is need to be flexible and responsive, to delight our customers by providing them with what they want, when they want it and in the exact quantity. Our primary goal will be to establish and strengthen our existence in the market, which will be bestowed by the business environment in which we function.

Our marketing strategy will be based mainly on ensuring that customers know about our existence and the products we produce. Hence our intention is to make the right information available to the right target customers. This will be done through implementing a market penetration strategy that will ensure that we are well known and respected in the market. We will ensure that our products’ prices are favorable relative to our South African counterparts’ prices, and that our potential customers appreciate the quality of our products. However, the prices we charge will also take into consideration the cost of production and distribution so as to ensure that we remain viable and operational. We appreciate the fact that the majority of wholesalers and intermediaries that order our products perceive South African products to be of higher quality and reliability. To counteract this there will be need for us to not only aggressively market the high quality of our products, but also to go out of our way in serving our customers and clients so as to establish a good long-term relationship.

Our target markets will primarily constitute institutions, wholesalers and other intermediaries who often order in bulk for their customers, and concerned individuals. Hence there will be need to network with the various decision-makers/order-makers to ensure we receive orders for our products.

We intend to compensate our personnel well, so as to retain their invaluable expertise and to ensure job satisfaction and enrichment through delegation of authority. We intend to achieve optimal productivity whilst realizing the full potential of each of our employees through provision of health care, generous profit sharing, plus a minimum of three weeks vacation. Awards will be given out to outstanding individuals for hard work and production so as to not only show our appreciation, but to instill a sense of fun into the work and promote the maintenance of high standards.

We project sales to increase from more than P748,800 the first year to more than P1,075,200 the second, and P1,142,400 in the third year.

Ultimately the attractiveness of our venture lies with the fact that customers will choose our products above those of competitors because of the relatively lower prices as well as their high quality. Hence Baby Nappies World’s ongoing initiatives will be to drive sales, market share and productivity so as to provide additional impetus towards attainment of the corporate goals and objectives.

1 Courtesy: Central Statistic Office

NOTE: All currency figures in this plan are in Botswanan Pula (P).

Diaper manufacturer business plan, executive summary chart image

1.1 Keys to Success

  1. Timely response to customers’ requests: We cannot afford to delay our clients for whatever reason, as this will have a negative bearing on our image and reputation,as well as impacting future business. Hence we need to be continually communicating with the client, so as to ensure that products are delivered on time and according to the customer’s specifications. This will go a long way towards instilling a sense of trust in our ability and establishing long-term relationships.
  2. Excellence in fulfilling the promise: We intend to produce and provide products of uncompromised quality to our customers, and excellent service. This is so as to meet their needs and standards. We acknowledge the fact that the company’s success will be based on timeous response to customer orders and hence we intend to set high standards and work procedures.
  3. Assembly Technology: To ensure quality diapers and sanitary pads it is essential to utilize the latest and most efficient production machines. We also intend to keep abreast with technological developments, which will ensure we gain and maintain a competitive advantage utilizing the latest production techniques.
  4. Networking: As the majority of our customers will be wholesalers and intermediaries there is need to effectively network with the various decision-makers and order-makers to ensure a ready market.

1.2 Objectives

Our business strategy will revolve around the need to provide quality disposable baby nappies, geriatric/adult diapers and sanitary pads to the various institutions and wholesalers that need them, in the process fully satisfying their requirements. This shall be undertaken through adequate training and recruitment of a professional team dedicated to providing and catering the customer’s needs.

We intend to ensure that our marketing campaign increases the knowledge of our products and services to the various market segments we shall be targeting. This is particularly so with organisations increasingly looking at obtaining quality products at the lowest prices as they strive to increase profitability.

We also intend to have well laid out introductory letters and other promotional material that will enable clients to have an understanding of the types of products we offer and advantages of utilizing them. In addition well-done company profiles and business cards often have a triggering effect on clients contemplating ordering our products. Hence this will undoubtedly generate increased sales of our products.

In summary we intend to attain the following objectives:

  • Continuously provide high quality diapers and sanitary pads on time and on budget.
  • Develop enthusiastically satisfied customers all of the time.
  • Ensure economical use of resources from capacity utilization, minimising inventory/stock and low cost, and high quality materials.
  • Contribute positively to our communities and our environment.
  • Establish a market presence that assures short-term and long-term profitability, growth and market share, which will ultimately convert to business success.

1.3 Mission

We are fully committed towards the production and delivery of high quality disposable baby nappies, geriatric/adult diapers and sanitary pads to the respective communities. Internally we intend to create and nurture a healthy, productive, satisfying and enjoyable environment, in which our employees are fairly compensated and encouraged to respect the customers’ requests and the quality of the products we intend to produce. We seek fair and responsible profit, enough to keep the company financially healthy for the short and long term, and to fairly remunerate employees for the work and effort.