Dedayo Petroleum and Investment – Business & Investment Plan

DEDAYO PETROLEUM AND INVESTMENT LIMITED THE BUSINESS AND INVESTMENT PLAN DEDAYO PETROLEUM AND INVESTMENT LIMITED TABLE OF CONTENT COVER PAGE TABLE OF CONTENT CHAPTER ONE Mission and Success Factor

1. Mission

1.1 Our Mission Statement

2. Keys To Success

CHAPTER TWO Company Summary and Risk Management 2. 0The Company (Company Target) 2.1 The Marketing Plan

2. Company Summary

2.3Company Ownership 2.4Risk Management CHAPTER THREE THE INDUSTRY 3.0Industry (Brief Analysis) 3.1Players in the Industry 3.2Some Players in the Industry CHAPTER FOUR DISTRIBUTION AND BUYING PATTERN 4.0The Channel of Distribution 4.1Identifiable Buying Pattern 4.2Our Distribution Strategy CHAPTER FIVE THE COMPETITORS AND THE COMPETITIVE COMPARISON 5.0Main Competition 5.0.1Their Strength 5.0.2Their Weakness CHAPTER SIX UNIQUE BUSINESS SELLING PROPOSITION 6.0Our Chances of Survival CHAPTER SEVEN MANAGEMENT SUMMARY and JOB REQUIREMENT 7.0MANAGEMENT TEAM CHAPTER EIGHT 8.0PROJECTED CASHFLOW and BALANCE SHEET CHAPTER NINE SUMMARY AND CONCLUSION CHAPTER ONE Mission and Success Factor

1. Mission

DEDAYO PETROLEUM AND INVESTMENT LIMITED (DPIL) is a marketing company, whose aim is to meet the existing need of the whole segment client through the purchase and sales of very high quality products. Our products range shall include the sales of

• Diesel(DPK)
• Kerosene(AGO)
• Petrol(premium motor spirit)
• Domestic gas
• Industrial gas
• etc

1.1Our Mission Statement KINDLY FILL

2. Keys To Success

1. Many years of experience in petroleum and allied products marketing informed our decision to take the business to the next level. We are conversant with the nature, pattern and segmentation of the petroleum and allied products industry in Nigeria.
2. We currently have customers within and outside Lagos whose loyalty we are not in doubt of. We are sure of enjoying their patronage.
3. Our pricing shall be very competitive and still be the original quality. This is due to the fact that our source is also very competitive.
4. Apart from the customers who come to the company, which shall be our major target, we shall establish links with reputable institutions, and other strategic businesses to give our products a wide reach through efficient distributive system.
5. We shall build a strong corporate image by stepping up our customer service beyond average by training our staff and providing a cozy business environment where every customer can relax while doing business.

CHAPTER TWO Company Summary and Risk Management 2. OTHE COMPANY (COMPANY TARGET) DEDAYO PETROLEUM AND INVESTMENT LIMITED (DPIL) is focusing on the petroleum and allied product market. These products are in high demand both by individuals and institutions across the federation and beyond. The major reason is the success of the consolidation/reforms in the economy that has encouraged the growth of the organized private sector (both direct and indirect investments) as well as the public sector that have seen the potentials of the vast opportunity available for investment in the country. Another reason is the ongoing developments of small and medium enterprises (SMEs) across the nation which is encouraging higher demand of petroleum and allied products. Individual entrepreneur carving out a niche for themselves in the economy further drive the demand for these products to a higher scale in their quest to turn their business around for greater profitability. DPIL is targeting the entire sectors

• The public sector.
• The private sector
• The abridge sector(public private initiatives)

2.1The Marketing Plan While the business plan contains the general thrust of DPIL, the marketing plan shall outline our market strategies and tactics with details on the when, where, and how our goals will be achieved. This information shall only be available to the principal and executive staff of DPIL.

2. Company Summary

DEDAYO PETROLEUM AND INVESTMENT LIMITED (DPIL) (erstwhile known and address as the company) has been in the petroleum and allied products sales since 2010. The company is reorganizing to position itself in order to partake in the ever growing market. The company will source products from local market and as a long term goal imports her products in consignment and sell to wholesalers and retailers who may be individual dealers or corporate dealers. We shall be innovative and very responsive to changes in the market and from customers. The company shall focus on the national market. It shall develop a loyal customer base at the shortest time possible through its competitive pricing policy and high quality products. 2.3Company Ownership Principally its operators shall own the company. However, He shall welcome investors with similar vision and individuals whose ideas would promote the goals of the company both in the short and long terms. In other words, He is open to financiers and extremely brilliant individuals who share our visions and aspirations. In the short-term the company shall remain private, pursing the goals of its owners with a sense of responsibility both to its customers and the community where it conduct business. 2.4Risk Management Good storage system/facility is very paramount in the business. Fire outbreak, theft, etc are all common risk associated with the selling of petroleum. These call for stringent precaution in order to avert financial and other losses to the company. To maintain a healthy cash flow, we shall sell only on cash. However, we shall keep credit facility to our proven and trusted customers at the barest minimum and all customers must pay within the stipulated period granted them. Where we can, all our facility will be built to reduce to the barest minimum these risks. Our transaction will be done on cash and carry basis. We shall take out insurance policy to insure our stocks and assets as extra precaution against any eventuality. CHAPTER THREE THE INDUSTRY 3.0Industry (Brief Analysis) The petroleum industry in Nigerian has grown over the years offering products to consumers at premium price and quantity. They seek to supply the teeming population of Nigerians with product at every time that such is available for purchase at the terminal. Despite their efforts however, demands have remained relatively strong and there is insufficient products. The implication is that the supply of these products is not able to meet the high demand for it. This development has led to the advent entrant of new marketers on daily basis which has not also fully satisfied the yearning of the consumers. Hence there is always a wide gap to be filled It is because of this same circumstance that the industry has virtually no need to advertise. However, where the profit margin can absorb advertising, it will lead to greater volumes of sales especially now that there barely constant supply of alternate source of energy to power their operations. 3.1Players in the Industry There are all kinds of petroleum products marketer in the Nigerian oil and gas industry. products sold ranges from DPK to AGO and Gas (both domestic and industrial).Marketers, who form the bulk of the supply side and in direct contact with the petroleum products end user, dominate the market especially at the product lifting terminal. They are largely unorganized and as such serve as a festering ground for marketing substandard products. Other major products sellers are organized and have a brand name and corporate image hence have little to do with the unorganized sector of the market The advantage for us is that since we seek to distribute only high quality products, we shall position ourselves to serve both sides (unorganized and organized) sectors of the market. 3.2Some Players in the Industry PLEASE SUPPLY NAMES AND ADDRESS OF MAJOR COMPANY 1. 2 3 4 5 CHAPTER FOUR DISTRIBUTION AND BUYING PATTERN 4.0The Channel of Distribution The distribution of our products shall take the following pattern: it shall be distributed among

• Banks
• Eateries
• Private companies
• Public Institutions
• Religious Institutions
• Small-medium enterprises
• Sole proprietors.

4.1Identifiable Buying Pattern

1. Major dealers buys directly from the terminal and sell to major companies
2. Users/Retailers buy from dealers.
3. Major companies buy petroleum products from major dealers.
4. Freelance salesmen and itinerants buy from major dealers

4.2Our Distribution Strategy

1. Our distribution shall be targeted at all categories of customers (buyers) listed in 4.0
2. We shall practice marginal price discrimination in order to service the different categories.
3. We shall market other products dealers that sell to other clients that not fall within our target market segment.
4. We shall undertake to deliver our products first to customers who purchase substantial volumes especially within Lagos.
5. We shall target clients with multiple operational facilities and or offices.
6. We shall advertise our products through all available and affordable advert means.
7. We shall seek to deliver products adjudge quality always and rely on referrals, word of mouth and recommendation from our clients.

CHAPTER FIVE THE COMPETITORS AND THE COMPETITIVE COMPARISON 5.0Main Competition We have a number of DPK and AGO buyers as competitors at the terminal, which include: - PLEASE NAME THESE COMPANY 1. 2. 3. 4. 5. 5.0.1Their Strength

1. They are well known and have been in the business for a very long time.
2. They are big time buyers of DPK and AGO and have the advantage of economic scale.
3. They are well organized business entities with a number of employees on their payroll.
4. Their business environments are attractive.
5. They deliver bulk purchases to customers’ door steps.
6. They never advertise but rather depend on referrals.

5.0.2Their Weakness

1. They don’t practice price discrimination or market segmentation by selling to just anybody thus they work against an effective market distributive chain.
2. They don’t have a distinctive market strategy.
3. They seem to concentrate on big companies that are already popular, thereby excluding other companies that are not “Big” which could have increase their client base.
4. Their customer service delivery is relatively poor.

CHAPTER SIX UNIQUE BUSINESS SELLING PROPOSITION 6.0Our Chances of Survival 1)We have a target market and a clear marketing goal – We shall sell directly to our clients spanning across the nation (Banks, Eateries, Private companies, Public Institutions, religious institution, Small-medium enterprises and sole proprietors.) 2)We shall offer incentives to our clients with multiple outlets. 3)To ensure constant cash flow we shall distribute our product in bits across our numerous clients. 4)Through solid marketing strategies, we intend to achieve voluminous sales, lower cost and good profit performance. 5)Two weeks maximum shall be allowed our client for them to pay up. 6)Priority shall be given to clients that are up to date in their payments above those lagging in payments 7)We shall step up customer service delivery by offering prompt service, quick response to customers enquiries, excellent telephone reception / response, minimum time for processing of customers requisition to delivery, cozy business environment etc. 8)Our knowledge of the oil and gas business spanning many years will also come handy. 9) We shall sell DPK and AGO according to their availability ensuring that our products are of the highest quality at any point in time. CHAPTER SEVEN MANAGEMENT SUMMARY and JOB REQUIREMENT 7.0MANAGEMENT TEAM PROFILE Competency shall be a core requirement for all our job placing. We require staff with a strong drive for success that is able to set target and achieve them within a time limit.

1. CEO

The CEO, Mr. Adewole Dayo an astute business man, will provide the vision and generally drive the company. He has more than 5 years wealth of experience in the oil and gas business, dealing directly with lifting terminal staff. He is a motivator and a rising force to reckon with in the oil and gas business in Nigeria.

2. The marketing manager

Must be an achiever with a flair for marketing. He must possess strong interpersonal and communication skills and one ready to meet our sales target. He should be able to organize the sales force to attain the company’s goal.

3. The Accountant

Must be a person with good accounting skills who will be entrusted with managing the running of the company from day to day. He should be able to plan and be disciplined to achieve the company’s financial objectives. He should be able to make forecast on financial projections, customers’ credits and maintain a healthy cash flow. He should be able to curtail the excesses of all other departments. His personal attributes must include trustworthiness and prudence with money.

4. Driver

Must be a person with competent dirving skill having all necessary drivers document. He also must possess a good transport inventory and ability to deliver products as at when due. CHAPTER EIGHT PROJECTED CASHFLOW and BALANCE SHEET SEE ATTACHED EXCEL SHEET PLASE PRINT THE EXCEL SHEET AND ATTACH TO THE DOCUMENT

CASH FLOW ANAYSIS FOR THE PERIOD BETWEEN MARCH 1, 2015 - MARCH 31, 2016. A.DPK
1.All calculations are in Naira
2.All transactions within the period are in cash
3.Dollar to naira equivalent is stable
4.Portfolio remains constant at N 1,500,000
5.Period under review is 12 month constant
6. A 12 months capital payback period envisaged (PAY BACK PERCENTAGE RANGES BETWEEN 20% AND 100%)
7. All calculation is for 7,000 litres DPK

B.AGO

1.All calculations are in Naira
2.All transactions within the period are in cash
3.Dollar to naira equivalent is stable
4.Portfolio remains constant at N 1,500,000
5.Period under review is 12 month constant
6. A 12 months capital payback period envisaged (PAY BACK PERCENTAGE RANGES BETWEEN 20% AND 100%)
7. All calculation is for 7,000 litres DPK

CHAPTER NINE SUMMARY AND CONCLUSION Based on the foregoing, DEDAYO PETROLEUM AND INVESTMENT LIMITED (DPIL) is as a marketing company seeking to expand its stake in the petroleum industry seeks your investment into its company. All income sourced shall be judiciously utilized within the frameworks of ethical and professional practice. Investors finances secured for the purpose of these needed expansion, shall be protected using all available means and ensure that the returns on investment are promptly paid. The company shall be willing to discuss further with our potential investor at any allotted time.

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