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Time Saver Kenya Ltd – Business Plan EXECUTIVE SUMMARY 2 COMPANY OVERVIEW 4 ENTRY STRATEGY 5 Market Analysis 6 Competitive Analysis 7 PRODUCTS AND SERVICES 9 Target market, Size, Structure, Positioning 9 Marketing Plan 10 Goods and Services 12 Premium Home Delivery Service Customer Accounts 12 Provider/Supplier Accounts 13 Financial Plan 14 Management Team 15 Exit Strategy 16 Executive Summary Most people in Nairobi Kenya don't enjoy spending their free time running errands and performing household chores; their time is valuable! And there is always a fear of the unknown when calling a service provider listed in the directories pages without having some sort of reference. Time Saver Kenya Ltd (TSK) is in the business of providing consumers with two of the most precious commodities in today's modern society - time and convenience. Time Saver Kenya Ltd is a service broker and provider. As busy people struggle to maintain a balance in their lives, conserving time has become a rather daunting task. By creating a home service company, the TSK service concept addresses the need consumers have for simplifying their lives. Time Saver Kenya Ltd plans to build brand equity by providing superior home service and by being the first company of its kind to enter the marketplace. Anticipated launch for the business is January of 2004. The proposed legal form for TSK is a company limited by guarantee. Services Offered. Time Saver Kenya Ltd offers consumers two ways to simplify their lives. First, the basic service provides, at no cost to consumers, referrals to a variety of pre-screened home service providers. Customers who call our referral hotline can be confident that they will be referred to a reputable home service provider that meets the quality performance criteria set by TSK. Secondly, with its premium delivery service, TSK provides the home delivery of consumer goods. The premium delivery service, which includes a once per week pick-up and delivery of groceries, dry cleaning, film developing, and package posting, is available for a monthly fee of KSH250. Consumers participating in the premium delivery service will be able to place their orders online, via phone or fax and can change their orders up to 24 hours before a scheduled delivery. Both services are designed to save time for today's busy household. While there are currently no direct competitors in the Kenya, TSK is aware of the risk associated with low entry barrier ventures. Time Saver Kenya Ltd plans to mitigate this risk by building a strong foundation of trust between our providers and our customers. The keys to sustained market growth and a competitive advantage will be building a strong brand identity and positive relationships with our suppliers and customers. Target Market Time Saver Kenya Ltd has two different target markets. First, the Referral Service targets the mass-market consumer as well as local service providers. In comparison, the target market for the Premium Delivery Service is working professionals and dual-income families with monthly household incomes greater than KSH100, 000. Initial launch of the TSK service will be in the Nairobi area followed by expansion throughout the country. Size and Growth Trend of Target Markets Market research suggests the residents of Nairobi will readily embrace the time saving services offered by TSK. Nairobi is a prime market for TSK. Nairobi has a current population of nearly 3.2 million people, combined with a large inflow of visitors from within and without the country. Recent demographic information shows there are approximately 200,000 households in Nairobi with incomes greater than KSH60, 000 (28% of all households). Current growth projections for TSK forecast a 40 % share of the market by year five for the Premium Delivery Service. This is equivalent to roughly 80000 active members. The growth rate of the Referral Service is expected to be even higher and will result in a 50% market share of all small to medium service providers in the Nairobi area by year five. Time Saver Kenya Ltd plans to expand geographically to other cities that fit the demographic requirements identified through market research. The growth rates in these markets are expected to be similar to that of the Nairobi market. Based upon realistic growth rate assumptions there will still be a great deal of potential for expansion beyond year five. Operations Strategy Time Saver Kenya Ltd will be directly responsible for screening potential suppliers/vendors, operation of the call centre, co-ordination of account payment and delivery of goods to our premium service customers. State of the art technology will be utilised in the call centre, for our web page and for payment of goods and services. The marketing strategy will create a brand image for TSK. To reach our target market, TSK has enlisted the services of Kamaliza Communications, a marketing and communications firm, to develop a promotional mix, which will include advertising (radio and local newspapers), direct sales, direct mail, and public relations. The TSK staff will grow from 11 personnel in year one to 77 in year five. Critical Risks Management recognises there are several internal and external risks inherent in the TSK concept. Quality and response time will be key factors in the consumers' decision to utilise the service on a continual basis. Also, consumers must be willing to accept the services offered by TSK in order for the company to meet its sales projections. A strong marketing strategy and careful screening of employees and service providers will mitigate these risks. Building a loyal and trusting relationship with our customers and partners is a key component to the success of Time Saver Kenya Ltd. The Founders Time Saver Kenya Ltd was founded by Kenneth Nyaga Marangu, Jacqueline W Nyaga, Mark Marangu and Leigh Wanjema. The group brings a strong mix of managerial, marketing, sales, accounting, and contracting experience, in addition to their technical expertise in entrepreneurship and finance gained through the MBA program at Nairobi University. The team has a combined total of over 28 years of business experience. The group has worked together extensively during the past two years. Together these four individuals make a very strong team. Initial Funding Time Saver Kenya Ltd will initially be funded with KSH150, 000 invested by its founders. Time Saver Kenya Ltd is seeking an outside investment of KSH750, 000 in return for a 30% equity ownership of the company. Based on projections, fifth year revenues will be KSH11.5 million, yielding an operating income of KSH3.8 million. An investor can expect an 78% compounded annual return on their 30% equity based upon a valuation after year five (P/E = 12). The funds will, provide for start up costs and working capital during the first years of operation. Exit Strategy Our most desirable option for exit is a merger or buyout by a large corporation. Time Saver Kenya Ltd believes with substantial cash flows and a loyal customer base it will be attractive to potential corporate investors within five years. Time Saver Kenya Ltd would also consider the possibility of issuing an IPO after five years to provide liquidity for its initial investors as well as the additional funds necessary for a national roll out of the concept. Time Saver Kenya Ltd Company Overview Mission Statement Time Saver Kenya Ltd seeks to create time for today's harried household by creating home-service company. We will make lives easier by lessening the time demands on today's households. We will establish lasting relationships with our customers and partners to help create long-term growth and value. Background Increased time constraints among Kenyans have created many opportunities for service based companies that can add quality hours to people's lives. Time Saver Kenya Ltd has identified a unique niche in today's busy economy that is currently not being served by any direct competitors. Management feels growth in this niche is evolving and has significant long-term potential. Currently TSK is in the research and development phase. Description of Services Time Saver Kenya Ltd is a service broker and provider. Customers can participate in two different levels of service and can utilise TSK for many of their household service needs. This allows TSK to meet the needs of a broad range of customers. Premium Delivery Service customers pay a monthly fee to TSK. These customers will enjoy a scheduled once per week pick up and delivery of groceries, dry cleaning, film developing, and home movies, in addition to the benefits offered by the referral service.
Approximate Word count = 5461
Approximate Pages = 21.8
(250 words per page double spaced)
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