Polythene Manufacturing Business Expansion

by Oji Benedict Chukwuebuka in Onitsha, Nigeria

DESCRIPTION

Saint Benedict Poly Industry is into manufacturing of different categories of high quality polythene bags.Our mission is to produce affordable, reliable, and high-quality polythene packing bags. To ensure the availability of polythene products as-at when due to its customers in both urban and rural markets within its target area.

Me and project friends on meeting

THE PLAN

Long-term Plan

Saint Benedict Poly aims to become one of the topmost recognized brands in quality polythene and packaging bag production across Nigeria and West Africa. In a period of five years, we intend to diversify into the production of different types of sack bags, branded shopping bags, branded packaging bags, and similar products.

Problem

Due to the need to have reliable, quality, and affordable polythene products that will cater to each customer's preference in terms of product packaging, price, proximity, and size. Also in the southeast of Nigeria, we have more suburban and rural communities, and these communities have medium to large markets which depend on urban markets for their products. Polythene manufacturers are mainly in Onitsha, which serves as the main purchase hub. Polythene wholesalers and retailers do find it difficult to close their shops to travel to Onitsha to buy products due to the possibility of losing sales for a whole day or few hours.

Solution and Value Proposition

The company tends to keep providing high-quality, affordable, and reliable products to its consumers. The distribution approach will create daily product availability to customers in remote locations via direct distribution using a sales van to possibly curb the situation where customers travel to markets in urban cities. The company also plans to open warehouses/distribution stores in some locations with much sales volume and customer patronage to create constant product availability nearer to its customers. The packaging will be flexible to accommodate each customer’s preference and size at a profitable and satisfying exchange for both the company and the customers.

Products

The polythene products are produced at the company’s production facility in Onitsha. The products in the company’s portfolio include; big-black-handless polythene bags, small-black-handless polythene bags, and Santana-white polythene bags. These products are made from polyethylene (polymer) materials sourced within and outside the country.

Market

Polythene product is the most widely used form of packaging in markets in Nigeria due to its affordability, availability and ease of recycling. The Nigerian economy is mainly driven by small and medium scale businesses scattered all over the country which mostly make use of polythene as a form of product packaging for customers. Thus making it an everyday use commodity that is always in high demands and yields high volume of daily sales. New businesses are springing up daily in the country, thereby creating more demands for nylon products. Our target markets are the different markets within the southeast region of Nigeria with an estimated size of above $2 million, and we will gradually expand to other regions. Our target customers are wholesale and retail polythene bag sellers, and we anticipate at least twenty new active customers’ monthly.

Business Model and Strategy Implementation

Saint Benedict Poly utilizes a brand-building strategy as the basis for our marketing plan. We believe our ability to grow and create future product opportunities can only be limited by a lack of imagination, finance, and our inability to adjust to market trends and changes in the business sector. But the company is poised to remain abreast and be constantly up-to-date with the dynamism in the business world. The company and its products are constantly being advertised and marketed through direct face-to-face selling and retailers. We also use social media platforms like Whatsapp, Facebook. In the long run, the company will also develop a web presence via having its website.

Competition and Competitive Advantage

The main competitors are Akanchawa Poly, Skylight Poly, and Sunny Poly. These manufacturers are well-known brands that produce high-quality and reliable products. They also have much customer base within and outside the states. But the limitations of these big manufacturers are mainly the fact that they don’t have distribution points/stores in any other location aside from their manufacturing base in Onitsha. They also don’t provide door-to-door sales services which are the preference of customers these days. They are overwhelmed with demands, making it difficult to serve every customer. It results in regular customers’ dissatisfaction. They also don’t implement flexibility in terms of product packaging to meet each customer’s preference. Our company’s competitive advantage is the consistent quality of each product, the availability, the door-to-door sales service, and the flexibility in product packaging to meet each customer’s preference.

Marketing and Pricing Strategy

Our pricing strategy is to position our products to meet each customer’s needs in terms of price, size of packaging, and availability. This has been accomplished to some extent by making careful product and price adjustments to meet each customer’s preference and still gain desired profit and satisfaction for both the company and the customers. Our pricing strategy at retail is to create a price-to-benefits ratio that positions the products as superior and profitable value. Presently we sell Big-Black, Small-Black, and White-Santana polythene products to wholesalers at the price of N14,000 per bag each, while the client sells to the final consumer at N16,000. We also offer price discounts and/or extra product for bulk purchases made.

Management Team

Oji Benedict Chukwuebuka and Uzoegbo Eucharia Ogechukwu established the company. The founders agreed to pull together their cognitive and vast experience and their visionary mindset to set up and manage a company that will successfully stand out as a world-class multinational firm. Oji Benedict has nine years of managerial and administrative experience spanning the banking sector, the academic sector, and polythene manufacturing. He is also skilled in computer programming and web design. Uzoegbo Eucharia has five years of business development and management experience spanning the banking sector, clothing business, and polythene manufacturing.

Company Status

Saint Benedict Poly is combined retail (direct to end-user) and wholesale (to the end-user through a reseller) strategy. Our target customers are into two distinct groups; the end-user and the retailer. The company was established and has been operational since January 2020. The company is successfully pursuing its goals and objectives with adherence to its business plan, mission and vision.

Fundraising and Management

The company's establishment and growth are to be financed by a combination of equity investment of the founders, yearly retained earnings, and debt financing (loan/investor). Our growth plans are challenging but realistic, and most of the funds will go into long-term assets (equipment). The company is seeking funds for growth of the company. The proposed expansion expense is focused primarily on production and distribution equipment.