The idea of the project was derived from market analysis, its demand and supply of camel fodder in Saudi Arabia. The problems which occurred in late 2007 in camel breed were main initiator of idea to develop and place new camel fodder in Saudi Arabia market. Due to contamination of fodder in 2007 which resulted in outrageous more than 2000 camel deaths the investigation was undertaken and the fodder was found to be stored in bad conditions and due to price efficiency, poor quality ingredients of camel fodder were used.
We are aware of substances which were found in contaminated fodder. Designing the new product will consider following factors:
Purpose of camel breeding (racing camels, beauty contests, general breed) possible nutrition differentiation
Camel nutrition requirements
Vitamins added value
Storage solutions
Packing solutions (vacuum packing)
Contamination awareness
Camel fodder “preferences”
Price sensitivity
Product competitiveness
Product shape
Quality sensitiveness
Due to low labour and semi-products costs, production in Poland will give the competitive advantage based on price. Relatively high supply of ingredients in Poland which are essential to produce the fodder will be also advantageous.
Our propositions of character of this project as follows:
Establishing new brand which will cater for all kind of camel breeders. Opening site which will cover everything from production through packing and dispatch. Establishing supply chain and finding possible sub contractors.
Subcontracting all operations to other companies in Poland. This will be less cost consuming and much faster in executing. Branding the product.
Objectives
Establishing fully working production line of Livestock fodder, prepared for transport
Setting up good distribution channels and supply chain which will lead to cost effective and save transportation to Saudi Arabia
We would like to sustain reliable service to our customers
In three years from the start we would like to meet 0,377% of total livestock feed demand of Saudi Arabia Which will account on average sales 3459,4 Tones Per month
This figure can be achieved when productivity of production line will be set at 70 %
In first year of operating, we would like to achieve 60% of all sales contracted for few years ahead
Mission
Royal Camel seeks to produce the lowest acceptable price and by providing the highest quality product and competitive features as vacuum packaging which affects on much longer storage possibilities. We value our relationships with future customers and hope to communicate our appreciation to them through our outstanding, guaranteed product quality, personal service, and on-time delivery. Our commitment to our customers and the country of Saudi Arabia will be reflected through honest and responsible business.
Keys to Success
Due to low labour and semi-products costs, production in Poland will give the competitive advantage based on price. Relatively high supply of ingredients in Poland which are essential to produce the fodder will be also advantageous.
Reliable and Motivated Hardworking Stuff
Reasonably big financial backup will be also key to success as it will secure operational flexibility
Well Developed Business network in Saudi Arabia will lead to fast and effective product introduction in the market
Long term business relationship with suppliers and clients
After establishing company in the market, possible product modification according to customer requirements.
Developing good marketing strategy, finding new channels of communication with customers.
Potential barriers
Critical Paths and areas of Slack
Products
The Royal Camel company intention is to produce a fodder which is made from hay.
Product Description
Competitive Comparison
Distinction of product in competitive market. The product distinction will be based on price and packaging solutions. Customer in the moment of decision will chose product of a better quality. Our packaging will be main factor which will persuade customer of a great quality of the product. The other reason for customer to choose our product will be price. The mix of price and quality will give competitive advantage we are looking for. Comparing to other products, our will not be as complicated notional wise. It is going to be cheaper and available to all customers.
Sales Literature
As a part of marketing campaign, we are planning to prepare product brochures which will be presenting our company, supply chain and describing our products.
Those brochures will be sent out to core players on the Saudi Arabian Market, to nutrition and big Camel Farms to inform them about new solution.
On the other hand, we will be trying to enter on the Saudi Arabian Market by articles in agricultural magazines and local press.
We would like also to have also strong support of authorities in Saudi Arabia because at the moment the situation on the livestock feed market is very close to monopolistic practices which are illegal and brings also lack of market balance and safety.
Technology
The technology will be based mainly on one Spanish company which is in the market for over 30 years in the market of industrial machinery. The production line will include the newest technology developed for this kind of product. (See Appendix 1)
Dryer
Bales grinders
Fiber cooling line
Milling line
Pelleting line
Control panels
Dryers
Project Organisation
8.1 Personell Plan
8.1.1 Management team
People responsible for financial planning and all organizational issues
8.1.2 Supervisors
People responsible for labours productivity during shifts
8.1.3 Secretary
Person responsible for appointments, researches, data gathering, communication and other office duties
8.1.4 Technicians
People responsible for proper line operation
8.1.5 Security
Whole object security
8.1.6 Labours
People responsible for production
8.1.7 Project Consultants
Group of external specialists responsible for consultacy
8.2 Personell Plan- Finantial Summary
According to Polish Standard pay rates, we have chosen satisfactory (but not very high) amounts.
Nevertheless, we expect 10% rise every year as a performance bonus
PROJECT CONSULTANTS ARE NOT TAKEN UNDER CONCIDERATION AS THEY ARE GOING TO BE HIRED ONLY FOR PROJECT IMPLEMENTATION PROCESS
Personnel Plan
Year 1
Year 2
Year 3
Management team
€33 600
€36 960
€40 656
Supervisors
€10 200
€11 220
€12 342
Secretary
€6 600
€7 260
€7 986
Technicians
€8 400
€9 240
€10 164
Security
€24 000
€26 400
€29 040
Labours
€24 000
€26 400
€29 040
Total People
11
11
11
Total Payroll
€106 800
€117 480
€129 228
Company Locations and Facilities
The Location the Royal Camel Production Line is going to be based in Poland in small city called Pyzdry. (52° 10′ N / 17° 41′ E).
We will need around: 3200 m2The reason why that particular city has been chosen is because of high amount of grass around the whole area.
We were looking for compromise between the land price and richness of the green resources surrounding production line.
Moreover we were trying to find places with networking.
On the other hand, the choice of Poland because of cheap labour and high amount of ingredients available. Facilities
We expect following Facilities on the production site:
9.1 Production line:
Packaging section
Shredding section
Dryers
Cooling section
Grinding Section
Pelleting Section
Pellet cooling section
Structures and platforms
Control Panel
Electricity dispenser
9.2 Offices and canteens
Canteen with kitchen
Toilets
Managers office
Secretary’s office
Conference office
Technician office.
9.3 Car Park for labours and gests
Legal and contractual issues
Risk Assesment
SWOT ANALISYS
12.1 Strengths
12.1.1 The Price Value Correlation
The main Strength and advantage of Royal Camel fodder will be based on desired correlation between high quality of the product and low production cost.
The price-Value Correlation will be achieved by two advantageous factors:
The low production cost will be achieved by low labour and semi-products costs, so production in Poland will give the competitive advantage based on price.
Relatively high supply of ingredients in Poland which are essential to produce a reach and high quality fodder
12.1.2 Possibilities of longer Storage
Due to contamination of fodder in 2007 which resulted in outrageous more than 2000 camel deaths the investigation was undertaken and the fodder was found to be stored in bad conditions and due to price efficiency, poor quality ingredients of camel fodder were used.
The final Products of royal Camel will be pellets and bales.
Both of them, just after Pelleting and baling process will be packed in vacuum way.
This will affect with longer storage possibilities due to lack of air which impacts on reducing the anaerobic and aerobic bacteria’s evolution.
12.1.3 High Qualified workforce
People responsible for production process will be high skilled and motivated due to innovatory motivation management strategy so we plan that no mistakes and failures will occur within production process.
12.1.4 Best Quality Machines
Another very important advantage of business will be cooperation with World class specialists in area of production lines.
The Spanish Company will cover whole production line design and engineering.
Moreover, they will take care about first two weeks of production period to arrange all improvements in process and train people.
12.1.5 Multipurpose solution
The last important Advantage of This production line offer is fact that while planning whole investment, we took under consideration other investments of Saudi Arabian Investors in Poland, so if there was a lack of Horse Fodder For some reasons we will be able to fill the demand extemporaneously at camel fodder expense.
12.2 Weaknesses
12.2.1 Price Limitations
The main weakness of Royal Camel base product will be fact that its recipe is limited because of its low price.
It means that product will be reach but it won’t be a Premium product.
However this Problem can be easily overcame by implementing strategy which will allow stretching the brand and preparing the production line of expensive premium product.
12.3 Opportunities
The idea of the business opportunity was derived from market analysis, its demand and supply of camel fodder in Saudi Arabia. The problems which occurred in late 2007 in camel breed were main initiator of idea to develop and place new camel fodder in Saudi Arabia market. Due to contamination of fodder in 2007 which resulted in outrageous more than 2000 camel deaths the investigation was undertaken and the fodder was found to be stored in bad conditions and due to price efficiency, poor quality ingredients of camel fodder were used.
We are aware of substances which were found in contaminated fodder. Designing the new product will consider following factors:
Purpose of camel breeding (racing camels, beauty contests, general breed) possible nutrition differentiation
Camel nutrition requirements
Vitamins added value
Storage solutions
Packing solutions (vacuum packing)
Contamination awareness
Camel fodder “preferences”
Price sensitivity
Product competitiveness
Product shape
Quality sensitiveness
As an international company we would like to share the market with competitors based on Saudi Arabia market and Producers from other countries.
12.4 Threths
12.4.1 To strong competition of ARASCO and sssssssss
There are two core competitors on the Saudi Arabian Market.
Both of them are well established companies which together hold over 60% of the market.
Nevertheless Royal Camel will be able to cover 0,377% of the Arabian Livestock Market
12.4.2 Seasonal Fluctuations of Demand
It is obvious that demand can change and fluctuate. Nevertheless, we would like to contract orders onwards with customers
Seasonal Fluctuations of ingredients Price Occurrence
The harvest period is between July and August so contracting will be done whole year onwards, nevertheless because of natural disasters like floods, dry weather, wind, the wheat prices can change but according to last year’s experience, the changes should not be higher than +, – 10%
12.4.3 Technical
Machines used in our project will be the best and most reliable on the market, nevertheless, breakdowns are possible and we have to be aware that drops in production fluency are possible.
Control of the implementation of the plan
Startup Expenses Description
Legal issues
As a Legal Issues, we understand Lawyers expenses, opening new partnership, advisory etc.
Insurance
The insurance of the company is very important in case of fire, floods and all other unpredicted threats
Building costs of factory
The issue of building costs is counted with material (steel) and cost of assembly
Building Cost of office
In case of savings, we have chosen the cheapest solutions (office containers)
this solution mixes low costs with high functionality.
Instead of building new offices, we will buy ready mobile premises which can be assembled into office
Projects
All projects of architects:
Factory project,
Offices projects
land development
spatial development
Web Design
quality sample test
Before sales, we will have to send around 20 samples of fodder and check its full specifications
Assembly of the Production line
The service of assembling, creating and starting up the whole production line by the Spanish Company
Production Line Machines:
Shredding:
Drying
Cooling
Grinding
Pelleting
Pellets cooling
Structures and platforms
Packing
Land:
Car park land
Startup Expenses Summary
Requirements
Legal Issues
€28 000
Insurance
€3000
Building costs of factory (steel construction)
€2 200 000
Building Cost of office
€19 000
Projects
€4 300
Web Design
€1 000
quality sample test
€700
Assembly of the Production line
€232 000
building car park
€10 000
Total Start-up Expenses
€2 495 000
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