How to start Peanut Butter Business in Nigeria – Peanut butter is a delicious snack loaded with nutrients and immense business potential. Initiating a peanut processing factory requires a good business plan and feasibility study.
It is a veritable income generating source for new and established entrepreneurs. Small food processing units offer room for innovation, product branding and experimentation.
The manufacturer needs to focus on quality, production methodology, appearance and taste. The major investment in peanut butter production is the machinery.
Equipment include peanut maker, grinding, processing machinery. To access funds and develop a business strategy you need a comprehensive business plan. Here are a few ideas on how to write a peanut butter business plan.
The business plan usually starts with an executive summary. Then you follow up with the type of product, market and financial considerations. Summarize the objective, success determinant, organizational structure, and mission.
The production of high quality gourmet peanut butter is the company’s priority. Each jar contains healthy ingredients to enhance the taste and flavor of the product. The production process guarantees competitive pricing and marketability.
The product has a unique blended taste different to jars obtainable in the market. Funding is provided for product development, testing and extensive research.
The gourmet blend includes dried fruits, granola, chocolate chips including other flavors. The appearance of the jar, packaging, label and brand name are uniquely designed to attract discerning people.
The product is produced in different varieties to accommodate different tastes and preferences. High quality ingredients and raw material constitute the different elements that create the unique product.
Peanut butter snack production attracts a billion dollar revenue world wide. There is huge potential for local markets and exportation.
There are many major branded competitors producing peanut butter. However the uniqueness of the product should carve a niche and attract huge patronage.
Peanut butter competes with other snack food in relation to sales and production. Meeting the demand requires an effective marketing strategy and many sales outlets.
Targeting a certain demography and age group would provide the competitive advantage over large manufacturers. Sales outlets include local produce stands, supermarkets and shopping malls. Other outlets are local distributors and local grocery stores.
The peanut butter business will be financed through savings and loans instruments. You can also fund the enterprise through owner’s equity, family, friends and partner investors.
This will provide startup capital to purchase fixed assets and working capital. With adequate marketing there would be a significant increase in sales and market share.
The funding will go towards procurement of peanut butter grinders and other equipment. Fund spending includes lawyer fees, insurance website development, payroll including sales and marketing.
The business is to provide a unique affordable product. The focus is originality, product branding and demography targeting.
Marketing opportunities involve teen engagement, fun activities and promotions. The premium brand with unique taste and quality is geared for prominence in niche market.
The projection over three year’s operation includes profitability within one year. Other parameters are product development, product penetration and expansion. The small business will increase number of products and focus on niche market.
How to start Peanut Butter Business in Nigeria
The mission is to build a top brand geared towards profitability. Quality, local distribution networks are the key to success. The company will aggressively pursue cost analysis, produce quality products and manufacture high end peanut butter.
The target is teenagers and young generation. Other targets for the product include suburban moms and unique item shoppers. Future markets to sustain focus are housewives, mothers and teenagers.
Major Competitors and Competitive Advantage
There are lots of huge players in the peanut butter business. Small snack food items are a major attraction to brand manufacturers.
The competitive advantage for small manufacturers is closer to the pulse of the customers and quicker delivery. Differentiating your product through branding, unique taste and flavor provides the advantage.
Marketing strategy will focus at trending topic and emotionally driven publicity. The packaging although attractive encompassed simplicity and elegance.
The peanut butter will have a taste profile unavailable in the market. The gourmet product will feature richly blended ingredients to create a unique taste.
The product could be spread on bread or eating from a jar. The rich blend of flavors adds to the uniqueness of the product.
The production of a few variations is primarily to meet different tastes and provide choice. Developmental stages are small batch production then full scale due to increased demand.
Adequate provisions are made for expansion and maximization of existing equipment. Product features include a good combination of wholesome ingredients
How to start Peanut Butter Business in Nigeria
Organization and Management
The management team consists of a chief executive officer and founder of the business. Other staffs are marketing department, sales and machinery operators. The ownership structure depends on the incorporation and investors.
Marketing and Sales Strategy
Marketing involves targeted a demography and grass root campaigns. The programs will focus on youth development, entertainment and sports.
The use of aggressive advertisements through electronic and print media is important to the growth of the enterprise. The use of online resources and platforms such as social media will also take priority.
Cost implications include equipment and machinery, marketing, legal fees and web development. Other cost considerations are label, product development, raw materials and utilities.
The projected income depends on the response and market penetration. The primary goal is increased sales and productivity while maintaining profitability.