EXERCUTIVE SUMMARY

The Dynamic Brothers Bakery is a bakery company made up of ten partners who
have come together with shares both in terms of cash, kind and service. The
company is more of 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 ten million 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 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

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 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
 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

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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:
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;
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.

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 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.
General manager

Special consultant

Financial
Marketing manager Operation manager
manager

Unskilled labourers

Organigram of Dynamic Brothers Bakery

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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 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.

 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

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 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.

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.

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 CHAPTER THREE

3. MARKET ANALYSES

3.1 Industrial Analysis

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.

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.

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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 of 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.

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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 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.
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;

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 SIZES (Kgs) PRICES (FCFA)
5 500
4 400
3 300
2 200
1 100
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 PROFITS
AMOUNT TREND % AMOUNT TREND %
(MFCFA) (MFCFA)
2015 15 / 16 /
2016 17 0.13 2O 0.25
2017 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 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;

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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.

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 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.
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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 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 occurring amino
acid) and vitamin C. since breads are allowed to ferment naturally. In this instance,

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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 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.

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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.

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 enough machines to facilities production but with the
aim to increase production in the long run.

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 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 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 900
FEBUARY 950
MARCH 120
APRIL 1250
MAY 1500
JUNE 2000

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JULY 2300
AUGUST 700
SEPTEMBER 900
OCTOBER 1100
NOVEMBER 1300
DECEMBER 1600

Cost of Raw material and operational expenses for 12-months in 2015

MONTH COST (000 FCFA)

JAN 950
FEB 100
MAR 125
APR 1200
MAY 1350
JUN 1600
JUL 1650
AUG 750
SEP 900
OCT 100
NOV 100
DEC 1100

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Sales Forecast

Year 1 Year 2 Year 3

Sales (MFCFA)
(MFCFA) (MFCFA)

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
Year 1 Year 2 Year 3
of Sales

Sales (MFCFA)
(MFCFA) (MFCFA)

Bread 6.5 6 7.5

cakes 4.5 5 5.5

Fish pie 3 4 4.5

biscuit 3 3.5 4

Total cost 17 18.5 21.5

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 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.
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

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benefit from an early indicator of economic 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 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.

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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. 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.

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 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.
 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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