Page 83 - Bisiness Studies_Form_3

Business Studies for Secondary Schools

Mission
“To offer high-quality broiler chicken that meet customers’ needs”.
Market assessment
For the past few months, the Mtakuja area has been experiencing an increase in the
number of food vendors who demand broiler chicken for their customers. Despite this,
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suppliers who are serving them have been accused of delays and insufficient delivery.
It is estimated that the current demand for broiler chickens per month is over 1,200
broiler chickens, while the current, reliable supply is estimated to be less than 500
broiler chickens per month, leading to a deficit of more than 700 broiler chickens per
month in the market. QCS intends to reduce this shortage by supplying at least 600
broiler chickens per month. QCS will increase this rate gradually, given the growth of
the market. However, QCS anticipates competition from Tona Enterprises Ltd., one
of the largest suppliers of broiler chicken in the area. Nevertheless, QCS anticipates
winning the Mtakuja market over Tona Enterprises Ltd, as QCS owners have personal
connections with the majority of food vendors.

Marketing plan
The main product of the business is broiler chicken. QCS will buy chicks from prominent
poultry farms and rear them for a maximum of six weeks before they are ready for sale
to local food vendors. Proper feeding and good care will ensure that each chicken
to be sold attains at least 1.5 kg, which is the requirement of many customers in the
market. To penetrate the market, QCS will sell the chicken at 7,000 Tanzanian shillings
for the first two years, which is relatively lower than the market price. This will help
QCS to penetrate in the market. However, from the third year, the price is expected to
increase to 7,500 Tanzanian shillings. In terms of distribution arrangements, we expect
that customers will come to collect the chicken at the business premises. As a way
of promoting its business, QCS will design simple fliers that will be distributed to
potential customers. The sales projections for the first three years of the business’s
operations are indicated in Table X1.

Table X1: QCS’s sales projections for the first three years

Year 1 Year 2 Year 3
Number of Rate in Amount in Number of Rate in Amount in Number of Rate in Amount in
chickens TShs TShs chickens TShs TShs chickens TShs TShs
7,200 7,000 50,400,000 8,000 7,000 56,000,000 10,000 7,500 75,000,000

To achieve the sales projections presented in the table, the owners of QCS expect to
use several marketing strategies, including the use of penetration pricing for the first
two years, personally visiting and persuading the food vendors in the Mtakuja area to

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