Summary
Summary business plan
- Course
- Cbma
- Institution
- University Of Limpopo (UL)
Summary of 13 pages for the course cbma at UL (business plan)
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BUSSINESS PLANDOCUMENT
BUSSINESS PLAN
PREPARED BY
MUKOMA MULISA
DATE
September , 2020
ALL IS IN GOOD HANDS FUNERAL SERVICES
CORPORATE OFFICE POSTAL ADDRESS CONTACT DETAILS
TEMONG SECTION PO BOX 190 TEL : 010 786 0342
DENNILTONG VUWANI
CELL : 071 313 7201
THEMBISA 0953
GAUTENG EMAIL: aigfunerals@gmail.com
info@aigservices.co.za
website: www.aigservices.co.za
, Executive Summary
EXECUTIVE SUMMARY
Mission Statement
Your life is your message to the world, make sure
it is remembered. The undeniable fact of life is
death. The only problem is that very few people
are financially prepared for it. Death generally
comes
unexpected, and with this comes unexpected
expenses. All reasonably responsible people will
ensure
that in the event of passing away, that adequate
provision is made to pay for his or her funeral
Ceremonial practices around death, as practiced
by R.S.A funeral homes, are leaving a growing
segment of the population feeling poorly served.
Inequality and extreme poverty in South Africa
Management and Personnel necessitates a product that will eliminate fraud
The company was founded by Vhuthuhau sukumani. He has more than 5 and
years of experience in the funeral industry. Through his expertise and exploitation of customers. AIG Funeral Services
licensure as a funeral director, He was able to bring the operations of the aims to provide a funeral policy product to a niche
business to profitability within its first year of operations. target
market that will support the ethical norms of the
Keys to Success founders. The niche target market includes all
South
Since 85.5% per cent of people choose a funeral home on the basis of
African citizens dependent on a social grant. The
reputation, the key to success is quickly establishing a reputation for this new
product will be superior in quality and innovation
category as the uplifting place for thembisa to celebrate life when they die.
with
AIG Funeral Service’s cornerstone is in its reception facilities, which
the lowest possible premium in the market.
will promote uplifting interactions with people after the funeral and be used
AIG Funeral Services provides celebration of an
for non-profit organizations. This will make AIG Funeral Service’s uplifting,
individual's life and social support to bring closure
connect it to the community, provide the basis for publicity, and make it a
and move ahead with living.
place for the living.
Establishment of the AIG Funeral Services will
The reception room and website are feature digital photos and films of the
provide Thembisa and the surrounding area with
persons whose lives are being celebrated. This web presence is increase the
a way for people to celebrate the life of the
AIG Funeral Service’s exposures by letting people participate in the
individual when it ends and for the living to gather
celebration of life after the funeral and reception are over.
social support to bring closure and move ahead
Providing the greatest choice of quality caskets makes the AIG Funeral
with their lives.
Service’s the place to celebrate the lives of locally prominent persons. This
AIG Funeral Services aims to deliver a state of
foster publicity and further promote our reputation.
the art product while at the same time supporting
the niche
Sales Forecasts
target market the company operates in. Helping
The management team expects a strong rate of growth at the start of
the underprivileged and eliminating fraud from the
operations. Below are the expected financials over the next three years.
industry will help make South Africa a better
country with each funeral policy sold.
Expansion Plan
The managers expect that the business will aggressively expand during the
first three years of operation. Management intends to implement marketing campaigns that will effectively target individuals
within the target market. Management will also develop a number of on-going referral relationships with hospitals, nursing homes,
hospices, and other people that can refer business to the business after a relative has passed away.
BUSINESS BACKGROUND SUMMARY
Registered Name and Corporate Structure
AIG Funeral Services is registered as a Exit Strategy
Private company in south Africa with CIPC If the business is very successful, management may seek to
add another shareholder in the business for a significant
Management Equity earnings multiple or sell the business. Most likely, the business
Vhuthuhau Sukumani is the sole owner of will hire a qualified business broker to sell the business on
AIG Funeral Services with 100% share equity behalf of the AIG Funeral Services. Based on historical
numbers, the business could fetch a sales premium of up to 4
Investor Equity times earnings
AIG Funeral Services is not seeking an investment from
another party at this time.
\
, Marketing plan
MARKETING PLAN
Customer, industry and competitor analysis
I. The customer
Analyze the target market of AIG Funeral Services
AIG Funeral Services operates in the broader life insurance industry with a specific focus on the funeral policy
market within this industry. The life insurance industry is an extremely competitive industry and
AIG Funeral Services identified a niche target market within the wider target market where the specific
Insurance product was initially released.
The initial target market for AIG Funeral Services can be best described as follows:
The client must be a beneficiary of the South African Government old age grants.
To qualify for an old age grant the applicant must:
Be a South African citizen, permanent resident or refugee.
Be older than 60 years.
Be a resident in South Africa.
Comply with the means test, as well as their spouse (Amount of money earned per month).
Not be cared for in a state institution.
Not receive any other social grants.
Be in possession of a 13 digit bar code identity document.
The client can extend the policy to include child dependents to the maximum age of 25 provided that the dependents
are not earning any other income.
The areas or communities that will be focused on will predominantly be rural areas where literacy levels are low and
access to the clients are normally difficult because of the lack of roads and other infrastructure (Sassa.gov.za, 2015).
The specific target market identified poses interesting challenges that do not normally exist in the more developed markets or
client bases. These challenges include low levels of literacy as well as practices and belief that require timeously burials of the
deceased. The lack of adequate morgue facilities in rural areas also makes it very difficult to accommodate the deceased body
(corpse) for extended periods and timeous resolution and pay out of claims under the policies are critical for the success as well
as the reputation and credibility of the business to ensure future sales into this market.
Assessing the target market
Meetings were held with members of the community in Gauteng and limpopo to gain insight of their understanding regarding the
potential target market. It was concluded from the meeting that al lot of the potential policy holders are people who did not
qualify for funeral benefits at other funds because of medical problems or a lack of formal medical history. The other problem is
that policy holders can often only claim after six months, defeating the purpose of the claim.
The target market was then further assessed by a customer segmentation analysis and a psychographic analysis.
Customer analysis segmentation
In order to understand the target market and the potential of the target market it was important to evaluate the total South
African population. From the overall statistics a more detailed analysis was conducted on the specific target market
Demographic Analysis (DA)
Table 6 indicates that black Africans constitute the majority of the population, followed by coloureds ,whites and Indian/Asians
(Africa, 2020). The number of black Africans in Gauteng constitutes of almost
20% of entire population of South Africa.
, Psychographic segmentation
African beliefs concerning funerals
The belief in African cultures concerning death is that it is the beginning of a deeper relationship with all of creation for
individuals. Death is a feared event and they believe that the ultimate goal of life on earth is to live a life pure and good enough
to become an ancestor after death. Funerals are therefor of utmost importance because if the deceased person is not buried in a
“socially acceptable and correct” way the deceased person may become a drifting ghost in the afterlife (Deathreference.com 2015
II. The industry
PESTEL analysis
Political factors
Government influences
When analyzing political factors it is important to look at the government structure and beliefs of South Africa in specific. An
important factor to consider is the movement and growth of the Economic
Freedom Fighters (EFF) during the elections in the last few years. The EFF is the 3rd largest party with the African National
Congress (ANC) being the leading party. The growth of the EFF was also visible in news reports with headings like: “DA and EFF
Growing Faster than the ANC on Social Networks” and “EFF is the fastest growing party” -Julius Malema. It can be concluded that
the EFF is rapidly growing and that they have large political influences (Publicnewshub.com, 2015); (Anon, 2015).
But who is the EFF and why is their growth of significance?
The EFF is one of the political parties of South Africa. They have a progressive, international outlook and strive to participate in
global progressive movements. The beliefs of the EFF were inspired by the broad Marxist-Leninist tradition and they use this
school of thought to conclude their analysis of the state, imperialism and culture contradictions in every society. The EFF provides
an alternative to the current neo-colonial economic system. Their aim is to rid the country of the current imperialist domination
(Economicfreedomfighters.com, 2014). This drastic change to a more socialistic approach, where more and more people are
dependent on the state, will lead the way for more people that will receive benefits in the form of social grants. This in turn will
result in more of the elderly to benefit from old age grants.
Economic Analysis
Unemployment rate in South Africa (Africa, 2012-2020)
As can be seen in Figure above South Africa is faced with an extremely high unemployment rate with the current rate being
30.1% and the highest unemployment rate ever in South Africa being 31.2%. The opportunity cost of unemployment is immense
when considering the scale of the economy. When workers are unemployed they are unable to produce output. Unemployment
disorders the normal flow of life and if prolonged will possibly lead to health and psychological problems for the affected
individuals (Africa, 2020). Although it is clear that a high unemployment rate is bad for the country and the economy, AIG
Funeral Services can use this threat as an opportunity. A higher unemployment rate means that more people are dependent on
the government and social grants. This will increase the demand of the product offered as well as ensure that the target
population will increase
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