MARKET DEVELOPMENT AND SALES PLAN
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FOR KOGI, EKITI AND ONDO STATES

SUMMARY

The objective of this plan is as follows;

* To identify and develop major and local markets for our brands of soaps in the three states in focus, namely Kogi, Ekiti and Ondo.

* To increase sales volume of our brands and increase our market share in the said states to significantly add to the volume of sales in the west region.

* To strengthen our brand image through increased availability and shelf presence in markets in the said states.

* To reduce trades acquisition cost and increase profitability in the channel to achieve continuous patronage and loyalty to our brands.

* To enlist distributors carrying our brands in major towns and increase the numbers of existing wholesalers and retailers currently trading across the state boarders.

DEMOGRAPHIC BACKGROUD

KOGI STATE

The markets in Kogi State has been untapped as there has not been a formidable presence of distributors carrying our brands. The state has 11, 519 sq. mile land area and population of 3,258,487 which is 887,398 higher than that of Kwara state. It has three major towns, namely Okene, Kabba and Lokoja. Like Kwara it is populated by low income earners, mostly farmers.

ONDO and EKITI STATES \
These two states were part of our development drive in 2011 where a measurable success was achieved as between 6% and 12% of total sales in the west was generated. However, sales in these states has since dwindled to almost no sales due to yet-to-be identified challenges. With 6000 sq. mile land and a population of 3,441,024, Ondo has four major towns, namely, Ondo town, Owo, Akure and Ore.

Ekiti state is the smallest with 2,453 sq mi land area, a population of 2,384,212 and a major town at the capital, Ado-Ekiti.

The total population of the three states in focus is 9,083,723 while that of other states in the west is 15,044,311. The three states comprise 38% of total West population,

STATES/TOWNS IN FOCUS

KOGI: EGBE, KABBA, IDAH, OKENE AND LOKOJA

EKITI: ADO-EKITI

ONDO: ONDO TOWN, AKURE, OWO AND, OKITIPUPA/ORE

DEMOGRAPHICS STATE | MALE | FEMALE | TOTAL | KOGI | 1,691,737 | 1,566,750 | 3,258,487 | EKITI | 1,212,609 | 1,171,603 | 2,384,212 | ONDO | 1,761,263 | 1,679,761 | 3,441,024 | TOTALS | 4,665,609 | 4,418,114 | 9,083,723 |
SOURCE; WIKIPEDIA.

OTHER STATES IN THE WEST. STATE | MALE | FEMALE | T0TAL | OYO | 2,809,840 | 2,781,749 | 5,591,589 | OSUN | 1,740,619 | 1,682,916 | 3,423,535 | KWARA | 1,220,581 | 1,150,508 | 2,371,089 | OGUN | 1,847,243 | 1,810,855 | 3,658,098 | TOTALS | 9,358,902 | 7,426,028 | 15,044,311 |
SOURCE; WIKIPEDIA.

IMPLICATIONS

* The three states comprise a little over 1/3 of the total West population. * The focal states share the same characteristics with Kwara state i.e. low income earners, civil service states with scarce industries, and mostly agrarian. * Ondo and Ekiti already shared part of sales in the West region—around 6%. There is more reliance on Kogi State to make difference. * It is expected that focal states will add about 20% to the existing states of the West.

SWOT ANALYSIS

Strengths * Our brands are already known in most of the markets in the states in focus. The existence of our brands bespeaks on us a reputation, and easy recognition by consumers. * Product availability in the focal markets will further strengthen our brand presence in the eye of the consumers in the states. * Supplying directly to the markets in focus will reduce the cost of buying from neighbouring markets, increase our presence and quantity in the focal market as well as increase the profits of the trade in the markets. Population figures of the focal market suggest potentials for favourable patronage

Weaknesses * Inefficient delivery * Current economic situation and financial strain * Insufficient promotional activity

Opportunities * Increase sales, brand presence and recognition * Opportunity to test the focal markets viz a viz brand acceptance * New markets * New supply chain * Population figures of the focal markets

Threats * Competitor’s presence, price scheme/ trade discount, trade facility and promotional activity. * Trades purchasing power and size of business.

SALES FORCAST

KOGI BRAND | KABBA/EGBE | OKENE | LOKOJA | | VALUE | APRIL | 600 | 600 | 600 | | 3,060,000 | FAX | 300 | 300 | 300 | | 2,070,000 | SAMBO | 100 | 100 | 100 | | 675,000 | IVORY | 100 | 100 | 100 | | 1,275,000 | MEDICELL | 100 | 100 | 100 | | 930,000 | | 8,010,000 |

ONDO & EKITI | AKURE/OWO | ONDO | EKITI | OKITIPUPA/ ORE | VALUE | APRIL | 600 | 300 | 300 | 600 | 3,060,000 | FAX | 300 | 100 | 100 | 300 | 1,840,000 | SAMBO | 100 | 50 | 50 | 50 | 562,500 | IVORY | 100 | 50 | 50 | 50 | 1,062,500 | MEDICELL | 100 | 50 | 50 | 50 | 7,750,000 | | | | | | 7,300,000 | TOTAL PROJECTED SALES | 15,310,000 |

RESOURCE ALLOCATION a. 1 Merchandiser stationed in the capital of Kogi (Lokoja) b. 1 branded sales van for secondary sales c. Promotional items for use in secondary sales d. 1 S.E to be stationed in Akure e. Sample: 2 cantons of each of our brands f. Al least one week pay on delivery (POD) to newly registered customers with the exception of existing customers in Ondo/ Ekiti states

BUDGET | WK 1/3 | WK 2/4 | MONDAY | EGBE | EKITI | TUESDAY | KABBA | AKURE | WEDNESDAY | OKENE | OWO | THURSDAY | LOKOJA | ONDO | FRIDAY | LOKOJA | OKITIPUPA/ORE | | HOTEL | #4,500 X 5#22,500 | #4,500 X 5#22,500 | FEEDING | #1,000 X5#5,000 | #1,000 X5#5,000 | LOCAL TRANSPORT | #1,000 X5#5,000 | #1,000 X5#5,000 | INTERTATE | #10,000 TRU/FLOW | #13,000 | CALL/ STATIONARY | #2,500 | #2,500 | | #4,500 X 2#90,000 | #4,800 X 2#96,000 | TOTAL | #186,000 | * This take off expenses will cater for the first month of market prospecting and follow up.

* Van Expenses to be calculated based on mileage and off take of N30, 000 per fortnight of van expenses after delivery of stocks is done in the markets.

NOTE: Van operations will commerce when identified customers placed orders and delivery is made.

* Merchandiser will be employed only after customers are loaded stocks.

MECHANICS i. Customer prospecting starts in the first and second week and a follow-up in the third and fourth week. ii. Once a customer interest is made, registered order placed and delivery made, the van operations swings into action along with the merchandiser. iii. The van picks all the SKU (brand) from the distributor sells in the distributor market and markets in smaller towns and or periodic market as may be available. iv. During the van sales drive, promotional items will be used to induce sales based on quantities to be determined. v. Proceeds are paid to the distributor for repeat purchases.

ALTERNATE BUDGET AND PLAN | WK 1/3 | WK 2/4 | WEDNESDAY | EGBE/KABBA | EKITI/ AKURE | THURSDAY | OKENE/ LOKOJA | ONDO/ORE/OKITIPUPA | FRIDAY | | OWO |

HOTEL | #4,500 X 2#9,000 | #4,500 X 2#9,000 | FEEDING | #1,000 X 2#2,000 | #1,000 X 2#2,000 | SE 1 | #11,000 X 2#22,000 | #11,000 X 2#22,000 | SE 2 | #11,000 X 2#22,000 | #11,000 X 2#22,000 | VAN | #20,000 X 2#40,000 | #20,000 X 2#40,000 | TOTAL #84,000 | #84,000 | TOTAL AMOUNT | #168,000 |

MECHANICS * The van sales starts on day one with two S.Es myself and the S.E presently covering Ondo and Ekiti. * Arrangement will be made prior commencement with existing customers in both Kwara and Ondo State axis to stock for the exercise so, sales starts on day one. * The stocks purchased or existing stocks will be liquidated for the exercise and loaded in the van, following sales exercise along routes with itinerary provided above. * Once new distributes are registered in the new territory stocks are pulled from there to further develop local and interior markets. * Secondary van sales is to run only for the first three months to stabilise the channel
Note:
* This alternate exercise is aimed at making more impact on the first day by selling at appropriate recommended prices to wholesalers and retailers. This will motivate potential distributors in making quick business decision on our brands. * Also, mobility is more flexible, stock readily available from the start and sales start immediately
Ajibodu Olayemi.
S.E.Ilorin (08099365549)