Post on 28-Feb-2023
EXERCUTIVE SUMMARY
The Dynamic Brothers Bakery is a bakery company made upof ten partners who have come together with shares bothin terms of cash, kind and service. The company is moreof a manufacturing company as it shall be the sole manufacturer of her baked products.
The products of this company shall include;
Bread Cakes Fish pie Biscuits and Yogourt.
Due to the company’s experience management team, made up of a hired bakery specialist and three graduates with two years of experience each in business management and the high quality of our product which shall be of all shapes and sizes to meet our customers need, we can say with certainty that our company shall have a competitive advantage or edge over our competitors whom we’ve surveyed all this while.
As regard to our proposed sources of funds, we intend to raise funds from the partners’ shares in cash of tenmillion francs CFA, two tri-circles from the shares in kind and the three managers’ services as shares in service which shall help us run down cost. Though with these contributed we intend to have fifteen million FCFA as a start, in cash and therefore having just 2/3
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of the amount, we wish to subscribe for investors (especially venture capitalist).
The funds raised from the above sources shall be entirely use on the development of the company as regards;
Buying of raw materials Paying of workers Carrying out of advertisement Buying of equipments
CHAPTER ONE
1.0 DESCRIPTION OF COMPANY
1.1 Nature of the business
a) Type of operation:
This is both a manufacturing and a servicing company as
it shall both manufacture the products and provide the
services of transport to her retailers.
b) Company mission:
The company has as mission to produce very high quality
product at a competitively low price to meet our target
market (students and workers) demand.
c) Company goals:
The company has as goals to;
To grow
To make maximum profit and
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To expand in size and number of units
1.2 management:
a) Duties:
The management of the company shall be made up of a
team of four managers
The hired bakery specialist
The financial manager
The production manager and
The marketing manager
i) The hired bakery specialist:
This is the person who is entirely in charge of
scrutinizing and implementing the policies of the
shareholders and works with the mind set of maximizing
their wealth. He has ones been the bakery manager of a
renowned bakery in England with a seven years of
experience in the bakery business.
ii) The finance manager:
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He is a holder of a first class degree in financial
management with a one year working experience in the
banking sector and also part of the shareholders with
the duties below;
Make sure the production department and likewise
the marketing department doesn’t run short of cash to
meet their daily activities.
Also he has as a duty to make sure the funds
granted to the department are well managed or utilized.
He is the only person concerned with management
of funds contributed by the shareholders.
iii) The production manager:
He is expected to have a degree in the field of
economics and management with at least two years
working experience.
Makes sure the products are produced in
cognizance to the demand of our
In charge of ensuring that the ware house does
not run short of the finished products.
Has as duty to maximized resources put at his
disposal to produce the goods at the lowest possible
cost.
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iv) The marketing manager:
This person is holder of a first class degree in
management from the University of Buea with a working
experience of two in the MTN marketing department. He
has as duties to;
Inform the public constantly of our innovations
Create a concrete link with the company and the
customers.
Makes sure the production manager is fed with
information about the latest developments in the market
Inform the company constantly on the changing
demands of our customers
.
b) Responsibilities
The Hired specialist;
He shall be responsible for ensuring that everything
goes according to plan. All the other managers are also
answerable to him.
Marketing manager;
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He is responsible for informing the public with latest
developments on the company’s product and gives a feed
back to the company on the responses of the customers.
The production manager;
Also He is involved with the responsibility of taken
the information provided by the marketing manager and
transforming it into a suitable product needed by the
customers.
The finance manager likewise has as a responsibility to
properly manage the funds under his keeping.
1.3 COMPANY STRUCTURE
Partnership
The structure of the company shall be partnerships
which shall be made up of ten shareholders (partners)
who are the ten dynamic brothers of the company, who
have join their resources together in terms of service,
kind and cash.
Ownership;
The company shall be owned by ten partners who are the
ten brothers and some potential investors.
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General
manager
Special
consultant
Unskilled
labourers
Organigram of Dynamic Brothers Bakery
1.4 COMPANY SIZE AND LOCATION
i) Location relative to the market;
The company due to the it’s nature of manufacturing
would be located or have its base or production unit
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Marketing
manager
Operation manager
Financi
al
manager
afar into the suburbs of Buea – Cameroon specifically
in the interior areas of Bakweri town for the lone
reason of avoiding the pollution of the surrounding
environment. But our warehouse (wholesale unit) shall
be located relative to the market, at the Malingo
Street –beside the lady L hotel.
ii) Size of facilities
At this beginning the company shall have as facilities
below;
A firewood oven
A flour mixer
A wholesale unit
Three tri –circles
iii) Commercially – based
The company’s location shall be commercially – based
due to the high needs of her target markets, the high
demand of her products relevant to the shortages in the
supply of this such products.
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CHAPTER TWO
2.0 DESCRIPTION OF THE PRODUCT
2.1 Describing the key features of the product
The baked products are going to have a whitish
color others but ours shall be of varying sizes and
shapes to attract customers with varying consumption
patterns.
The baked breads shall be classified into plane
(little sugar content) and sweet (high sugar content).
Our cakes shall also have different shapes and
sizes dependent on how the customers value the
different shapes.
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Some of the cakes shall also be iced but entirely
dependent on the customer demand.
Our ice-cream shall be made up of those with
edible cups and of those which would need a spoon to be
eaten and shall be made of different colors.
The company shall also produce as products both
creamed and non-creamed biscuits which shall also be
served with yogurt
The breads from our wholesale shall be packaged
in both fuel and polytin papers
The cakes shall be served in fuel papers
The ice-cream shall be sold in large containers
to the retailers and others in well shaped cups.
The biscuits shall be well placified and shall be
designed with palatable marks.
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2.2 Product protection
To better protect our breads and other baked
products they shall carry the trade mark abbreviation
on them DBB (Dynamic Brothers Bakery)
Every other of our baked products or product
would carry the trade mark DBB.
CHAPTER THREE
3. MARKET ANALYSES
3.1 Industrial Analysis
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The food processing industry in Cameroon is very large
with the various firms specialized in the production of
different food types a with number being almost
uncountable.
We are expecting to expand in the very near future in
our size and the number of units all over the country,
starting with Kumba, Limbe, and Muyuka.
There is no major regulation facing the industry for
now since there is little noise pollution caused by the
company implying there is little regulations.
The common cost we expect to incure will be the running
cost of the business and also the continuous
transportation of raw materials and bread to our
retailers.
The major source of our income at this start after
investment would be done would only be the income from
our sales.
3.2 Competitive Analysis.12
This company has a lot of competitors;
They include the bakeries around Molyko.
Those involved in the production of fried British
pears, fish pile, fish role, gateaux and likewise those
involved in the baking of cakes.
Others include those in the biscuit production like
‘parle G’ etc and many others who have a good status in
the market already.
The products of the various firms in this industry are
usually very similar and so therefore for us to be
different in the market, we intend to produce highly
differentiated products, with this therefore we intend
to produce breads of different shapes and sizes
opposing to that of the already existing companies in
the industry. Also ours shall be made up of not just
brown color breads but we shall have up to a pink-like,
yellowish and other very attractive colors different
from that of our competitors.
Though we shall be very new in the market, we expect to
have a competitive edge over our competitors in the
domain of distribution and customer servicing. This
would be achieved through the fact that we shall
constantly ensure that our retailers don’t run short of13
bread in the sense that at what so every time we are
called to supply them with bread we would always ensure
it’s thereat the time needed even on week end days. In
fact the satisfaction of our customers is the primary
things in our minds as they are king that is, those who
decide our pay package.
To conclude on this aspect of competition you would
bear with us that we would have an either equal or
higher hand over our competitors thus a competitive
advantage over them.
3.3 Market Research
The all information’s we gathered shows that there
exist some shortages in the supply of cakes in Molyko
most especially, during the weekend which was w threat
to the student population but an opportunity to us.
From this we decided to solve it by opening our bakery
on those weekend days and also in our own regime make
sure that our retailers are always stocked with bread
most especially on the days near weekend.
Our research also shows that during C.A and examination
periods the students find it difficult to preparing
food and thereby resorting only to dry foods like
bread, cakes, which shows that the demand for our 14
product was to be high especially during weekends,
exams and C.As.
Primarily our source of information was the retail
shops around Molyko who are our main customers since we
anticipate bulk buying from them. They also complain of
limited earning from the sale of bread and cakes since
they are not always available.
Secondarily most of our information’s we got were only
on challenges that we will encounter in setting up the
business.
We will also do continuous market research by giving
our customers questionnaires to fill after consuming
our products. This will help us to evaluate our
weaknesses and embark on continuous improvement so as
to always produce the choice of our customers.
Also the increase in the production of bread
complements such as butter, chocolate, margarine
amongst others has made the demand for bread to
increase in Molyko since the goods are jointly
demanded.
3.4 Target Market;
Our target market shall be the large student population
of Buea and the other categories of people around Buea.15
Since income is not evenly distributed among a
population, we shall produce breads and other of our
baked products into many different sizes and at
different prices to still ensure that all of the
population gets the product no matter their different
income levels.
The different sizes and their corresponding prices can
be seen as on the table below;
SIZES (Kgs)
PRICES (FCFA)
5
500
4
400
3
300
2
200
1
100
16
0.5
50
0.25
25
From the above pricing system for our bread we are sure
that people no matter what category in the society they
find themselves shall be able to purchase at least a
unit of the product when hungry.
Our target market shall always be satisfied or be
motivated to consume our products due to the very high
quality products we intend to supply them with as per
the retailers we shall supply them right at their
business spots rather than them coming to our whole
sales shop for the product.
With our sophistication mode of sensitization we
anticipate a market share of 32% in the bakery industry
at this start and anticipate an even increase in th
space of two years.
Also from the look of things we can be able to speak
with certainty our business trend as below;
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YEARS CAPITAL PROFITSAMOUNT
(MFCFA)
TREND % AMOUNT
(MFCFA)
TREND %
2015 15 / 16 /2016 17 0.13 2O 0.252017 20 1.18 22 0.1
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CHAPTER FOUR
4.0 MARKETING PLAN
Under this section we are going to apply the famous
marketing mix variables (4P’s) which are;
The Pricing
Product positioning
Promotion/Advertisement and
Place (sales and distribution).
4.1 Pricing
In this first aspect in our marketing plan we intend to
use the penetration pricing strategy with the primary
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goals of attracting customers and gaining a better
market share as we shall enter the market with our
products at relatively cheaper prices than our
competitors. Though some losses shall be incurred but
we intend at the very beginning to make our products
known by a greater amount of the population.
After a while when our products has been known, we
shall step up the prizes a little to meet up with cost
thus introducing the cost-base pricing strategy to
enable us meet our operational cost.
4.2 Product Positioning;
Our products shall be positioned in the market
primarily based on the concept of our customers’
satisfaction, mindful of the fact that the consumer is
king. Thus though our product is an impulse good we are
going to present it in the market as more of a
necessity by making it a part and parcel of the
customers’ mind due to its high quality and the after
sale services attached with them.
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4.3 Promotion and Advertisement;
This is entirely in stimulating or the creating of high
awareness of our products in the minds of the
population and thereby propelling them to demanding for
it. With this marketing mix variable we shall use the
personal selling tool where some employed sales persons
shall walk around the public and also around peoples’
premises causing them to understand the “old” but new
product now available on the market and creating in
them also the awareness of our very high quality
product though at low prices.
In line also with personal selling we shall also use
the public relation tool by designing our products with
their different shapes and sizes and pasting them at
the bill boards along the streets.
After this our promotional efforts shall be measured by
the number of people who show interest in our products.
4.4 Sales and Distribution;
We have as intensions to sale at least a thousand of
our products daily three thousand pieces for a month.
We will use two tri-circles to distribute our products
who shall all be involved in distributing the products 21
round about the municipality of Buea which shall be
supervised by the sales and marketing manager.
Our sales shall begins from 7am to 3pm daily and an
estimated.
We collect money as soon as the customer receives the
goods and we shall always replace the products after
one week if they are not sold
On some special instances if our retailers would not
have the money to pay for the supplies given to him/her
it shall be paid for during the next supplies.
Our sales shall be done by transporting the goods from
our warehouse directly to our retailers.
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CHAPTER FIVE
5.0 OPERATIONS
5.1 Production
Concerning the production and the transforming of raw
materials to produce our goods, we would need some
basic baking materials like; flour, milk, sugar, yeast
for our production process. For the production of our
breads and cakes the production process shall be as
below;
Mixing and kneading the dough;
The shifted flour is poured into an industrial mixer,
after which the temperature controlled water is piped
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into the mixer. The mixture is called gluten and gives
the bread its elastic nature. A specified pre-measured
yeast is poured into it which feeds off sugar in the
grain and emits carbon dioxide. Yeast also produces gas
bubbles which leaven the bread. Depending on the type
of bread to be made the other ingredients are added
also into the mixer. We would be using a modern mixer
which will be able to process up to 2000 pounds (kgs)
of dough per minute.
The mixer is essentially an enclosed drum that revolves
at speed between 35 to 75 revolutions per minute.
Inside the drum, mechanical arms knead the consistency
in a matter of seconds. Our experienced specialist
would be able to determine the consistency by the sound
of the dough as it rolls around the mixer. The mixing
process takes about 12 minutes.
Fermentation;
Three methods can be used to ferment the dough. We
shall need high speed machinery, designed to manipulate
the dough at extreme speed with great force which
forces the yeast cells to rapidly multiply.
Fermentation can also be induced by the addition of
chemical additives such as cytosine (a natural 24
occurring amino acid) and vitamin C. since breads are
allowed to ferment naturally. In this instance, the
dough is placed in covered metal bowls and stored in a
temperature control room until it rises.
Molding and baking;
When the dough emerges from the prover it is conveyed
to a second molding machine which re-shapes the dough
into loaves and drops them into pans. The pans travel
to another prover that is set at a very high
temperature and with a high level of humidity.
Quantity and time taken to be produced;
with the use of machine we are expecting to be
producing 1500 breads of different sizes and shapes
daily, 2000 cakes of different shapes and sizes.
Delivery Time;
we shall make sure that goods are delivered to the
customers immediately after the production process is
finished.
Research and Development;
thorough research will be carried out to ensure that
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our products are developed and differentiated from that
of our competitors. The aim of the research primarily
would be to continuously improve on our quality.
5.2 Personnel and their salaries;
concerning our personnel’s and their salaries, we are
going to employ both the skilled and unskilled
laborers with just a compensation to the skilled
laborers as they shall be part of the shareholders
contributing their own shares by service and twenty-
five thousand francs each to the unskilled laborers
at the ending of the month. We estimate at this start
to employ just five unskilled laborers.
Hours of Operation;
concerning operation hours we will be operating from
Mondays to Saturdays as from 8am to 6pm daily.
Materials and Facilities;
concerning materials and facilities we need just a
maximum premises some two tri-circles to help us
transport our product to the market. But as concerns
the premises we intend to rent since we don’t have
enough cash at hand now to build ours.
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Suppliers;
our suppliers of raw material will be located at Douala
which is just few kilo meters from Buea making the
supply time to be very short and hence steady
availability of resources for the production of our
customers demand at all the time.
5.3 Inventory Management;
We will make sure that our inventory is managed
properly so that resources should always reach the
production people at the right time and no shortages
shall be recorded such that the production people are
always busy.
Licenses and Authorization;
the ten dynamic brothers of this bakery are all
partners and as such as a partnership we shall go into
a partnership deed which we would need to start
our business.
Scale of Production;
as a start up with also a limited amount of capital we
shall start production at a small scale due to lack of
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enough machines to facilities production but with the
aim to increase production in the long run.
CHAPTER SIX
6.0 FINANCIAL PLANS
6.1 Sales Forecast
Our Sales Forecast shows modest estimates for the first
year of operations beginning in May of 2015. After
establishing “the Dynamic Brothers Bakery” ware house,
we project aggressive sales increases for the following
years. In the second year of operation we estimate
sales increase of 30% and of 50% in the third year for
our products. We are planning a 10% increase in Weekly
Lesson fees each of the two following years while
keeping costs constant.
Our cost of sales is based on an average cost of 20%
for raw materials and 15% for point of purchase items,
carry-out and weekly lessons. We project a consistent
raw material cost percentage of these amounts for the
following two years. Keeping raw material costs low
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while sales increase is vital to the profitability of
the Dynamic Brothers Bakery.
Sales Forecast for 12-month in 2015
MONTH
SALES (OOO FCFA)JANUARY 900FEBUARY 950MARCH 120APRIL 1250MAY 1500JUNE 2000JULY 2300AUGUST 700SEPTEMBER 900OCTOBER 1100NOVEMBER 1300DECEMBER 1600
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Cost of Raw material and operational expenses for 12-
months in 2015
MONTH COST (000 FCFA)JAN 950FEB 100 MAR 125APR 1200MAY 1350JUN 1600JUL 1650AUG 750SEP 900OCT 100NOV 100DEC 1100
Sales Forecast
Year 1 Year 2 Year 3
Sales (MFCFA
)
(MFCFA
(MFCFA)
30
)
Bread 6 8 9
cakes 5 6 7
Fish pie 4 5 6
biscuit 2.5 4
4.5
Total
Sales 17.5 23
26.5
Direct
Cost of
Sales
Year 1 Year 2 Year 3
Sales
(MFCFA
)
(MFCFA
)
(MFCFA)
Bread 6.5 6
7.5
cakes 4.5 5
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5.5
Fish pie 3 4
4.5
biscuit 3 3.5
4
Total cost 17 18.5
21.5
CHAPTER SEVEN
7.0 RISK ANALYSIS AND CONTIGENCY PLANNG
7.1 Competitive Reaction
This involves the company’s product should be highly
competitive in the market in terms of price, quantity,
quality, and branding. So that customers should never
be disappointed in terms of the method of delivery and
product availability. The company should also ensure
that there is product innovation and thus this would
give us a competitive advantage or edge over our
competitors or rivals in the market. The way
competitors react to the company’s products would be
taken into consideration.
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7.2 External Risk
By external risk, we mean those actors and forces
outside the company which affects marketing decision.
These are close to an organization that affects its
ability to serve its customers they are also called
external stake holders of our company. They include the
economy, weather, new competitors, suppliers’ problems,
technology, politics, and demand shift.
i) Economy
Our economy monitoring may enable a vigilant company
like us to respond in time to phenomenon such as the
following’
Recession;
this is when there is a downward turn in economic
activities. During this period spending will be
affected as market conditions become thin and more
competitive.
Recovery;
This is the direct opposite of the recession stage of
the economy in which there exist a situation called
“boom”. During this period marketers in some sectors
will benefit from an early indicator of economic
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activity useful to forecasters.
Inflation;
This is the period in an economy of continuous increase
in the prices of products due to either the increase in
the cost of production or in increase in the demand of
products thereby causing an increase in the prices of
goods.
ii) New competitors;
In today’s modern markets, organizations usually have
to compete with other organizations for customer. The
success or failure of private sector businesses depends
on their ability to satisfy customers need better than
competitors. This competition can either come directly
or indirectly. Due to this aspect we intend to
intensify our marketing managers ‘effort towards
adapting to the needs of our target market.
iii)Suppliers problem;
these are firms or individuals that provide the
resources needed by the company to produce goods and
services . he chance of an organization’s success is
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influenced by its ability to acquire the resources it
needs to meet its customers requirements.
iv) Politics
the political environment is made up of laws,
regulations, intervention by central and local
government agencies, international laws and pressure
groups an even various association that influence the
organization and individuals in the society.
v) Technology:
The technological environment consist of forces that
affect new technology in creating new products and
market opportunities.
vi) Demand shift:
in this domain the customer buying behavior changes in
the long run. So organizations should be able to meet
up these changes in demand in the market.
7.3 Internal risk:
These are actors and forces inside or within the
organization which affects marketing decision. 35
Organizations have full control over these factors such
as sales projection not realized, cost over runs, key
personnel turn over and legal issues. They are also
known as controllable variables because they are within
the reach of the organization.
CHAPTER EIGHT
8.0 SUPPORTING MATERIAL:
These shall include samples (pictures) on the type
of product (breads, cakes, biscuits, and yogourts)
which would be produced.36
The ten (10) partners shall play a great managerial
functions which would include; financial, production,
marketing, human resource and material management. The
hired specialist will be concern with implementing the
strategy designed by the ten partners while the
unskilled laborers will be in charge of the unskilled
duties.
Letter of support shall be given to some financial
institution which will assist our company in times of
financial crisis.
The C.Vs of every applicant shall be taken into
consideration.
A copy of partnership agreement
Our products shall be advertised on radios, T.V
stations, news papers as well as magazines.
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