Sachet water business is one of the most lucrative businesses anyone can start right now in Nigeria. No matter how difficult things are, water remains one thing people cannot do without. From motor parks to markets you see people hawking water on a daily basis. Today I want to give you a complete example of a sachet water business plan in Nigeria. This example of a sachet water business plan in Nigeria contains everything you need to start. All you need to do is simply print it out and execute.
Apart from successfully executing your own business this sachet water business plan can also serve you to:
- Apply for grant
- Access Bank loans
- Woo business partners
- Attract investors and funding partners
Executive Summary of a Sachet Water Business Plan
Below is the executive summary of this sachet water business plan example:
FreeGrace Sachet Water Production Company is a licensed and standard sachet water production company that will be located in the commercial city of Aba, Abia State – Nigeria. We already have a place we intend to use as our factory and it is quite a good location.
The facility also has government approval for the kind of business we want to run. The place is easily accessible and we are deliberate about that to facilitate easy movement of raw materials and finished products. And also to ensure that customers locate us with ease.
We are in the sachet water production business to engage in purifying and packaging sachet water. We are also in business to make profit and at the same to give our customers value for their money. It is our desire to give people and businesses who patronize our sachet water business the opportunity to be part of the success story of Frigrace Sachet Water Production Company.
We are not ignorant of the fact that there are several other sachet and even bottled water production companies in Nigeria. We are aware that the products of those other companies are in most cities around the country. In view of this we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business with less competition from start.
We have mapped out plans to develop a wide distribution network for wholesalers all around Aba, Umuahia, Bende and some nearby states. FeeGrace Sachet Water will ensure that all our customers get first class treatment whenever they visit our factory.
To further aid this we have a customer management software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the number of our customer base may grow to. We shall ensure that we carry customers along when making some business decisions that will directly or indirectly affect them.
FreeGrace Sachet Water Production Company is a commercial venture and belongs to Mr.Umunna Nweze with a team of very competent workers. Umunna Nweze who is the Chief Executive Officer of the Company is an experienced business man with over 10 years’ experience running different businesses.
The business also has a consulting partner HTS Business School which is a premium business school with key focus on business development and business growth acceleration.
From the extensive feasibility study and market analysis will require, a total of Six Million, Seven Hundred and Twenty Five Thousand Naira (₦6,725,000) to start. It will also require a working capital of 7.6 million naira per annum.
In the same vein the income projection is Fifteen Million, Two Hundred and Twenty Five Thousand Naira (₦15,225,000) for the first year, Fifteen Million, Nine Hundred and Eighty Six Thousand, Two Hundred and Fifty Naira (₦15,986,250) for the second year and Sixteen million, Seven Hundred and Eighty Five Thousand, Nine Hundred Naira (₦16,785,900) for the third year.
As you can see from this executive summary of sachet water business plan it is clear that the company will break even within the first two years.
Background and Industry Overview – for a sachet water business plan
Sachet or bottled water as the case maybe is one commodity that is consumed in all parts of the world. And if managed well the revenue generation can be none stop. As a matter of fact, poor economic outlook hardly affects the consumption of sachet or bottled water. Yes, this is because water is as important as the air we breathe.
Companies in the sachet and bottled water industry basically purify and bottle water into plastic and glass bottles for consumption. The bottled and sachet water are properly sealed or capped and labeled accordingly before being sold to the general public.
Companies in this industry usually have an assortment of product offerings. Some of them are spring water, mineral water, sparkling water and flavored water. They also come in a range of different sizes and prizes. Some of the players in this industry are also involved in ice manufacturing.
It is equally common to find big corporations into soft drinks, food/beverages production engage in bottled water production also. This they do because they noticed that it costs them almost nothing to produce water compared to the huge investment of producing soft drinks. But despite this known fact they make as much money from water as from drinks. Isn’t that amazing? Isn’t that enough reason for you to take this business plan example for sachet water and run with it?
A research by IBISWorld shows that in the US, the level of concentration in the Bottled Water Production industry is modest. The report shows that the top four players are expected to generate 65.5 percent of the industry revenue.
Given the heavy bulk weight of industry products and the relatively low value per unit sold, bottled water production is generally taken on by large companies with major economies of scale and heavy investments in transportation.
While the majority of bottled water production is performed as one of many activities within the corporate portfolios of international food and beverage companies, the remaining portion of the industry’s production is performed through small-sized local players.
The Bottled Water Production industry is a thriving sector of the economy of the United States of America and they generate over $5 billion annually from more than 565 registered and licensed bottle water production companies scattered all around the United States of America.
The industry is responsible for the employment of well over 14,360 people. Experts project the bottle water production industry to grow at a 4.0 percent annual rate. The Coca Cola Company, Nestle and Pepsi Co are the world leaders in the bottled water industry; they have the lion market share in the United States of America and in most countries of the world including Nigeria.
Despite the fact that there are big corporations who are into the production of bottled water, the fact remains that starting a small – scale sachet water production business has minimal barriers to entry, with low startup capital. Most players in the sachet water production industry are small to medium size establishments that cater to the local community.
With this kind of business, if you want to start on a small scale, you can choose to start servicing your local community. All you would need are contacts, packaging, networking and good marketing and customer service skills. However, if you intend starting it on a large scale, then you should consider spreading beyond your local community to the state and even national level.
Over and above, the bottled water production industry that sachet water is a part of is indeed a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business.
Our Mission and Vision Statement
The vision is to establish standard sachet water Production Company whose products will be sold throughout Nigeria.
The mission is to establish standard and world class sachet water Production Company that in our own capacity will favorably compete with leaders in the industry such as Nestle Foods, Coca Cola Company, and Pepsi Co in the nearest future.
Our Core Values
- Quality of Products
- Excellent Customer Service
- Integrity and Honesty
The strategy for a sachet water business plan is very critical. You can find it in the full version of the sachet water business plan example. Click here to get the full version of the sachet water business plan.
Our Products and Services
Frigrace Sachet Water Production Company is going to operate a standard and licensed sachet water production company whose products will not only be sold in Aba but also throughout Abia State and neighboring states.
We are in the sachet water production business to make profits and also to give our customers value for their money. These are some of the products that we will be offering;
- Sachet water (will commence immediately)
- Bottled water (in the nearest future)
- Dispensable water (in the nearest future)
Market Analysis and Marketing Plan – for a sachet water business plan
If you are conversant with the trend in the sachet/bottled water production industry, you will agree that there are competitions in different stages of the industry. That is competitions amongst bigger corporations such as Pepsi Co, Coca Cola Company and Nestle et al; and also competitions amongst smaller and medium scale bottled water production companies.
Most bottled water companies are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry. One creativity approach that is common is ensuring that their bottled water conforms to the appropriate PH – level.
As a matter of fact, it is common to find sachet or bottled water production companies especially medium scale and small scale bottled water companies labeling their sachet or bottled water for specific occasions to meet the demand of their clients. For example, a client that is celebrating his or her birthday may strike an agreement with a bottled water company to specially label the bottled water that will be served in the occasion to conform with the occasion.
Lastly, another trend in the bottled water production industry is the adoption of eco – friendly approach towards the production and packaging of sachet and bottled water. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
Our Target Market
When it comes to selling sachet or bottled water, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in our target market locations. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us.
We are in business to engage in wholesale distribution and to retail sachet water to the following groups of people;
- Restaurants and Canteens
- Supermarkets and small shops
- Event Planners, Parties and Corporate Functions
- Schools and Students
- Recreational and sports centers
- Everybody in our target market location
Our Competitive Advantage
A close study of the sachet cum bottled water production industry reveals that the market has become much more competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other sachet and bottled water production companies in Aba and throughout Abia State – Nigeria.
Frigrace Sachet Water Production Company is launching a standard sachet water brand that will indeed become the preferred choice of residents of Aba and every other location where our sachet water will be retailed.
See our competitive advantage in the full version of this sachet water business plan.
Marketing Strategy and Sales Strategy
Before choosing a location for Frigrace Sachet Water Production Company, we conducted thorough market survey and feasibility studies in order for us to be able to penetrate the available market in our target locations.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading brands in Lagos State.We hired experts who have good understanding of the sachet and bottled water production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Aba and other locations in Abia State.
In other to continue to be in business and grow, we must continue to sell our sachet water to the available market which is why we will go all out to empower our sales and marketing team to deliver our corporate sales goals. In summary, Frigrace Sachet Water Production Company will adopt the following sales and marketing approach to sell our sachet water:
- Introduce our sachet water brand by sending introductory letters to residents, restaurants and other stakeholders all around Abia State
- Open our sachet water production company with a small ceremony to mark the formal launch so as to capture the attention of residents who are our first targets
- Engage in roadshows in targeted communities from time to time to sell our sachet water
- Advertise our products in community based newspapers, local TV and radio stations
- Leverage on the internet to promote our sachet water brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
Publicity and Advertising Strategy
Despite the fact that our sachet water production plant is a standard one that can favorably compete with other leading brands, we will still go ahead to intensify publicity for our product. We are going to explore all available means to promote Frigrace Sachet Water Production Company.
Frigrace Sachet Water Production Company has a long – term plan of going into bottled water production and distributing, which is why we will deliberately build our brand to be well accepted across the state before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Frigrace Sachet Water Production Company;
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our sachet water brand
- Engage in roadshows from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Ensure that our sachet water is well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customize.
Finance and Financial Analysis – for a sachet water business plan
Startup Expenditure (Budget)
Starting a standard sachet water production company is capital intensive. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing water purifying and packaging equipment. Asides from that, you are expected to purchase distribution trucks, pay of your employees and also pay utility bills.
The table below shows a comprehensive analysis of both the startup cost and also the running cost for this sachet water business plan example:
Here is the link to request the financial analysis of this sachet water business plan.
From the financial analysis as outlined you can see that we will need an estimate of N6.725 million naira. This will be enough to successfully set up a medium scale yet standard sachet water production business in Aba. There is however a plan to scale it to the point of producing bottle water after three years.
No matter how fantastic your business idea might be, if you don’t have the required money to finance it, the business may never see the light of the day. And in starting a standard sachet water company finance is a very important factor.
Frigrace Sachet Water Production Company will be financed through:
- Generating part of the startup capital from personal savings – bootstrapping
- Source for soft loans from family members, friends and interested investors
Sources of Income
FreeGrace Sachet Water Production Company is established with the aim of maximizing profits in the sachet and bottled water production industry in Abia State and environs and we are going to go all the way to ensure that we do all it takes to sell our products to a wide range of customers.
Frigrace Sachet Water Production Company will generate income by selling the following products;
- Sachet water (immediately)
- Bottled water (in the nearest future)
- Dispensable water (in the nearest future)
One thing is certain when it comes to the sachet and bottled water production business, if your water is well packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract sales and that will sure translate to increase in revenue for the business.
We are well positioned to take on the available market in Aba, Abia State and every city where our sachet water will be sold and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the sachet and bottled water production industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Aba.
As it is
Currently, a bag of sachet water (containing 20 pieces) is sold for 150 naira (factory price) and 200 naira by wholesalers. But as part of our market penetration strategy we shall sell for 140 naira flat rate.
By our projection having done an in-depth analysis of the market
Our plan is to be able to kick start production by May 2022 and our monthly sales forecast shall be as follows:
The financial forecast is contained in the full business plan. That is where you get a comprehensive financial analysis of this sachet water business plan example.
Chat up +2349080293564 on WhatsApp for the financial analysis for this sachet water business plan example.
This financial analysis of this sachet water business plan example also has a graphical illustration of sales target per month for the first year.
From the table above, we have made a projection with two possibilities; when sales are high and when sales are low. And the result shows that for a favourable market we are likely to make total sales of 17.5 million naira in our first year and in a situation where sales are low, we will make 15.225 million naira.
We have further projected a 5% annual growth in our sales. So with that assumption the total sales for the first 3 years of the business are shown in the table below:
Fig. 4.2 – Pie Chart for the first 3 years sales projection – the chart is contained in the full version here
N.B: This projection was done based on the industry standard. But we also made an assumption that there won’t be any major disaster. Please note again that the above projection might be lower and at the same time it might be higher.
Our Pricing Strategy
When it comes to pricing for sachet water, there are two sides to the coin. We are aware of the pricing trend in the sachet and bottled water production industry which is why we have decided to produce various sizes of sachet water.
In view of that, our prices will conform to the industry standards. But we are also willing to sell below the average price for the first 6 to 12 months. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our water brand.
The payment policy adopted by Frigrace Sachet Water Production Company is all inclusive. Unlike some of our competitors that insist people must pay with cash we are flexible. We do this because we are quite aware that different customers prefer different payment option. But in doing this we are careful to abide by the financial rules and regulations in Nigeria.
Here are the payment options that Frigrace Sachet Water Production Company will make available to her clients;
- Payment with cash
- Online bank transfer
- Payment via mobile money
In view of the above, we have chosen banking platforms that will enable our clients pay us without any difficulty. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for members to pay for products purchased.
Management and Organizational Structure
Frigrace Sachet Water Production Company is a business that is established with the aim of competing favorably with other leading sachet and bottled water brands in Nigeria. This is why we will put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer-focused and are ready to work to help us build a prosperous business that will benefit all our stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Plant Manager
- Sales and Marketing Officers
- Distribution Truck Drivers
- Production/Machine Operators
Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner)
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives as well as assigning accountabilities; planning, monitoring, and appraising job results; developing incentives.
- Developing a climate for offering information and opinions as well as providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Also responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of the sachet water production plant
- In charge of the team that determines the quantity of daily production.
- Maps out strategy that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Serves as the quality control officer
- Ensures that the plant meets the expected safety and health standard at all times
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Helps to increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports as well as analyzing financial feasibility for complex proposed projects.
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Production Workers/Machine Operators
- Responsible for purifying and sealing of water
- Assist in packaging and loading bags of sachet water into distribution trucks
- Any other duty as assigned by the plant manager
Distribution Truck Drivers
- Assists in loading and unloading bags of sachet water
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators
- Keeps a record of vehicle inspections and also ensure the equipping of the truck with safety equipment
- Assists the transport and logistics manager in planning their route according to a delivery schedule
- Assist in selling to stores and businesses on their route
- Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- Inspect vehicles for mechanical safety issues and perform preventative maintenance
- Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verify delivery instructions
- Reports defects, accidents or violations
We are not unaware that there are several sachet and bottled water production companies both large and small all-around Abia State which is why we are following the due process of establishing a business so as to compete favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks as well as be welled equipped to confront our threats.
FreeGrace Sachet Water Production Company employed the services of an expert HR and Business Analyst with bias in startup businesses to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis for FreeGrace Sachet Water Production Company;
Our strengths are enoumous and it will position us for a great performance. Find details in the full version of this sachet water business plan.
We know we have our weaknesses. But we also know how to turn them to strengths.
There are many opportunities in the sachet water business. You will get to see them in the full version.
Risk Analysis, Sustainability and Exit Strategy
Sustainability and Expansion Strategy
The future of a business lies first in the number of loyal customers we have. Then the capacity and competence of the employees, their investment strategy and their business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting FreeGrace is to build a business that will survive off its own cash flow. The business has no plan of relying on finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers loyalty is price competitiveness. We shall supply at a price slightly lower than what is obtainable in the market. And we are well ready to survive on lower profit margin for a while.
FreeGrace Sachet Water will make sure that the right foundation, structures and processes will be put in place. This is to ensure that our staff welfare are well taken of. We will equally design our company’s corporate culture to drive the business to greater heights. And of course the training and re – training of our workforce will be a top priority.
As a matter of fact, stock option will be made available to all our management staff. And the basis of sharing will be their performance for a period of three years or more. We know that with this in place, we will be able to successfully hire and retain the best hands. As the best in the industry they will be more committed to help us build the business of our dreams.
Risks and Mitigates – for a sachet water business plan
FreeGrace Sachet Water Production Company has made a forecast. And the forecast helps us envisage some of the following potential risks and the possible ways to mitigate them. The risks and mitigates have been outlined in the table as contained in the full version of this sachet water business plan.
Exit Strategy – for a sachet water business plan
FreeGrace Sachet Water Production Company does not have any plan to exit the venture. Rather we plan to diversify into other related ventures as security and insurance to the business. So we are going to be in this business for a long time.
By the way if you need the full version of this business plan kindly pay the sum of Twenty Thousand Naira Only to:
HTS Business School
GTBank – 0244166433
After payment send proof of payment, your full name and email address to 09080293564. Once this is received you get a copy of the complete business plan in your email.
Note that you will get it both as PDF and also in word format so that you can edit it if you want.
Note also that the copy you will get contains all the tables, graphs and other pictorial iamges we could’t contain here.
Finally, you can let us know if there are other services you need from us in starting your business.
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