Diaper Manufacturer Business Plan
Today, the disposable napkin, an invention that revolutionized baby care, is a practical solution for the problem of wet, dirty baby bottoms all over the globe.
We are about to enter a profitable market in a country that is growing. 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 can capitalize on the growth rate and limited local competition. With a dedicated and skilled staff, outstanding order procurement and effective management, marketing and sales, Baby Nappies World is well-positioned to do so. The initial intention will be to provide nappies and sanitary pads to institutions and organisations including hospitals and wholesalers throughout Botswana.
Initial plans were to produce 300 diapers an hour, 5 days per week. We will also use an 8 hour work day to make 48,000 diapers per monthly. As we get more efficient with their production, this figure will rise to approximately 56,000 monthly. This would be diapers alone. We do plan to produce sanitary napkins, but only on an order basis.
We are aware that this market is relatively underexploited and we need to be flexible and responsive to succeed. To delight our customers, we provide what they want, when and how much they want. Our primary goal will to establish and enhance our presence on the market. We will do this by being supported by the business environment.
Our marketing strategy will focus primarily on making sure customers are aware of our existence and the products that we make. We want to ensure that the right information is available to the correct customers. We will do this by implementing a market penetration plan that will make us well-known and respected on the market. We will ensure that our products’ prices are competitive with those of South African counterparts and that customers appreciate our product quality. Prices we charge will include costs associated with production and distribution. This is to ensure that our business remains viable and sustainable. We are pleased that many wholesalers and intermediaries order South African products. They perceive them to be more reliable and of better quality. We will need to aggressively market our high-quality products and go above and beyond to serve our clients and customers so that we can establish long-lasting relationships.
Target markets for our products will be institutions, wholesalers, intermediaries, and individuals who order bulk orders for their customers. Hence there will be need to network with the various decision-makers/order-makers to ensure we receive orders for our products.
We will pay our employees well to preserve their valuable expertise, to provide job satisfaction, and to allow them to delegate authority. We want to ensure maximum productivity and maximize each employee’s potential through providing health care, generous profit sharing, and at least three weeks vacation. We will give out awards to individuals who have done outstanding work.
We anticipate that sales will increase from over P748,800 the initial year to more P1,075,200 and more P1,142,400 the second year.
The attraction of our venture lies in the fact customers will choose our products over competitors because they are cheaper and better quality. Baby Nappies World will continue to promote sales, market share, productivity and other initiatives to help achieve its corporate goals and objectives.
1 Courtesy: Central Statistic Office
NOTE: This plan uses Botswanan Pula (P) currency.
1.1 Keys To Success
- 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 allow us to build trust and long-lasting relationships.
1.2 Objectives
Our business strategy will focus on providing quality disposable baby nappies and adult diapers to all institutions and wholesalers. This will be accomplished through proper training and the recruitment of a professional staff dedicated to serving and catering to customers’ needs.
We will ensure that the marketing campaign we use increases awareness about our products and services among the various markets we are targeting. This is especially important as organisations are looking to obtain high-quality products for lower prices while increasing their profitability.
We plan to create well-designed introductory letters as well promotional materials. This will allow clients to understand what products we offer, their benefits and how to use them. In addition well-done company profiles and business cards often have a triggering effect on clients contemplating ordering our products. This will increase sales of our products.
These are our goals.
- Continuously provide high quality diapers and sanitary pads on time and on budget.
- Develop enthusiastically satisfied customers all of the time.
- You can ensure efficient use of resources by maximising capacity utilization, minimizing inventory/stock, low cost and high quality materials.
- Contribute positively towards our communities and the environment.
- A market presence will ensure profitability, growth, market share and short-term profitability. This will lead to business success.
1.3 Mission
We are 100% committed to the production and distribution of high quality disposable baby nappies and adult diapers. 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 aim for fair and responsible profits, sufficient to keep the company financially strong for both the short and the long term, and to fairly pay employees for their effort and work.