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

1

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;

17

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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