Eastern Caribbean Central Bank

Primary School Category
Look Out Primary School, Montserrat

LOPS Ice Lollies
PRODUCT
The business plan focuses on the production and sale of ice-lollies. This product is deemed to be the most popular and feasible given that many students arrive at school very early in the morning and tend to be hungry or thirsty before lunchtime. The need for a nourishing snack for students is therefore identified.

The product’s mission “LOPS Ice Lolliies will be the cheapest, the coldest and the most nutritious source of vitamin C on Montserrat” will be achieved by utilising local fruits to make the ice lollies (mangoes, passion fruits, cherries, black berries, oranges, guavas, sour sops, bananas, watermelons and coconuts). Being conscious of diabetes mellitus among children, the product design incorporates the use of natural essences as sweeteners rather than sugar.

MARKET
In evaluating the market, the plan identifies the entire school population of 143 students, as a captive market, and the absence of competition as there are no shops in the vicinity of the school. Additionally the product is deemed to have a protected market afforded by government legislation, which prohibits vendors from selling on or near to any school or compound.

MARKETING AND DISTRIBUTION STRATEGY
The plan envisages the sale of the ice-lollies during school recess and at special school events: Sports Day, Concerts, Promotion Day and Open Day.
The potential market will grow as the school population expands.

The launch of the product will be preceded by a Tasters Day event at which time students will be given free samples and asked to indicate their favourite flavours and comment on the size, price and taste. This information will be used in refining the design of the product.

The Parent Teachers Association Meeting will be used as a forum to inform parents and guardians about the product.

A poster competition seeking the best ad for the ice lollies will boost the Art/Craft Curriculum in the school while providing another avenue for promotions. The local radio station had also agreed to promote the lollies free of cost.

PRODUCTION TEAM
The team will include students, teachers and parents possessing the necessary skills. The team members will not be paid but will receive a Certificate of Appreciation on Promotion Day. Other contributors to the team will be eligible for nomination to the Annual Red Cross Award or the Annual Mother’s Union Award.

FINANCIAL INFORMATION
The majority of the equipment needed (refrigerator, blender, etc) is already available at the school. The start-up expenses will be relatively low, estimated at $600.00. These will be financed by way of a one-year interest free loan from the General School Fund.

First year’s sales are estimated at $10,200 and expenses at $2,000 providing for a projected net profit of 8,200. This is based on expected sales of 500 ice lollies per week at $0.50 for forty weeks, plus an additional 400 lollies sold during the year as a result of sales derived from special occasions. Each subsequent year, sales are projected to increase by 15%- 20%. Profits from this business venture will be used to fund a school library and mini-computer room.

Topˆ

Secondary School Category
Washington Archibald High School, St Kitts and Nevis

Handi-Craft Cooperative
PRODUCT
The business plan focuses on the sale of fine art and handicraft merchandise produced by the students of the school’s Wood Work Shop and Art Room. The raw materials will consist mainly of coconut shells, cow horns and straw, sourced locally and regionally.

The line items include: key rings, earrings, sculptures, medallions, pictures/paintings, dolls, bags, necklaces and t-shirts.

MARKET
An assessment reveals the need for more locally made high quality handicrafts. Many of the existing products sold to visitors were imported rather than locally made.

The target market includes tourists from North America and Europe interested in purchasing local handicraft as well as local visitors, alumni parents and visiting nationals residing overseas.

Additionally, it is envisaged that by virtue of being a school-based business, this will allow for capitalisation on the goodwill of past students, parents and sponsors served by the school.

MARKETING AND DISTRIBUTION STRATEGY
The plan envisages direct sales to tourists, parents, students and well wishers, and sales on consignment to gift shops and stores in strategic locations.

Including in the marketing strategy are face to face advertisements, referrals and good public relations as well as a video showcasing the products made and the care and detail taken in their production. This video will be shown on cruise ships, airports and point of sale booths.

The peak tourist season October - March is assessed as the period that would generate the highest sales.

PRODUCTION TEAM
The team will comprise experienced and skilled students and teachers. The team members will not be paid a salary but will receive a nominal annual stipend.

FINANCIAL INFORMATION
Capital expenses, supplies and other start-up costs (raw materials and supplies) amounting to $17,140 will be financed from a combination of equity, grant and loan financing: shares sold to students and teachers amounting to $8,000, a grant of $11,000 from the World Bank Grant: School Improvement Fund and a three year loan of $2,000 at 15% interest from the local credit union.

Raw materials will be purchased weekly to prevent over stocking.

First year’s sales are estimated at $7,750 and expenses at $6,480 providing for a projected net profit of $1,270. By year two the projected net profit is $5,404 and by year five $5,5137. These projected figures are based on expected sales growth as a result of increased market penetration. It is envisaged that equity investors will recoup their initial investment within three and a half to four years.

Profits from this business venture will be used to finance the growth of the business, provide for distributions to shareholders and for school improvement projects.
Topˆ