ASHLEYS CONFECTIONERIES

I. Objective
Our objective is to deliver products that will meet the satisfaction of our target customers mainly in the urban dwelling of Kibera.

Company Mission Statement

Our motto is KEEP IT SIMPLE. Preserve the sensation of age old tradition of relishing mandazis for the family breakfast. Our product range will be affordable targeting low end customers yet maintaining the quality and standards in the baking industry.

Management Strategies

Maintain a focus on quality product with bottom-line growth through cost reduction and optimal performance. We also focus on technology to enhance productivity.

Funding Resources

Open the floor to local investment partners/Borrowing

II. Product Development

Products and Services

y Bakery

Mandazis Basic mandazis

Doughnuts Basic doughnuts

Muffins Basic muffins

III. Market Analysis

Marketplace Trends and Environment

With the current economic situation most households are unable to afford the price of bread. To substitute this need 1 or 2 packets containing 6 mandazis each will suffice.

Market Opportunities

The sprawling Kibera slum with an approximate population of 350,000 persons. We have a close proximity to our target customers. Despite the economic trends the population growth in the slums is on an upward surge.

IV. Target Market

Business Location

The Langata Area, Ngei Phase I, situated 200 meters away from Kibera.

Growth Opportunities

The opportunities for growth are excellent driven by buying patterns and a readily available consumer market.

V The Competition

Increased profitability in the industry suggests that people are becoming dependent on fast food than they have ever been.

Who They Are

Large Manufacturers of Bread

Angels Mandazis Currently the only brand of mandazis distributed in the Kibera area, Kiosks, and small retail shops in the vicinity. They are based in Hurlingham. Road Side Cooks/Sellers

Market Share Distribution

50% of consumer expenditure goes to food.

VI Marketing Plan

Meeting Customer Needs

Our customers will require on a daily basis, fresh mandazis on the go. We shall base customer needs against other products offered in the market and aim to earn their loyalty.

Quality vs. Quantity

Quality preparation, storage and offering a freshly prepared product will have consumers coming back for more.

How We Will Sell

Word of mouth advertising via quality output has proved to be a strong selling point.

Ability To Penetrate Market

15 years experience in Marketing. Quick delivery, with a fine reputation for a quality will answer the demand for a fast fresh product. We shall have a single distribution point for collection of our product. We shall rely on bicycle suppliers to distribute our products to the retailers who will eventually reach the consumers.

VII Management Development

The products we aim to market are very basic and do not require professional expertise. Training will be home based. We shall use professional recipes and will have our products standardized by the Kenya Bureau of Standards.

Pivotal Employees

Managing Director Accountant (out sourced on a quarterly basis) Cook

Consultants

Equipment suppliers with a well structured after sales service.

VIII Business Development

Long Term and Short Term Goals

Our long term goal is to establish a fully fledged bakery with a view to expanding our product range. In the short term we will expand our client base.

IX Financials
Ashleys Confectioneries will be managed as a sole proprietorship with a single investment partner. The Sole Proprietor will be responsible for sales/management and finance/administration areas, respectively. The investment partners will provide funding which will cover start-up expenses and provide a financial cushion for the first 3 months of operation.

Start-up Summary

Ashleys Confectioneries is a start-up company. Financing will come from the investment partners' capital. The following detail illustrates the company's projected initial start-up costs.

Start-up Requirements

Start-up Expenses

Kshs

Premise rent Equipment Motor Vehicle Other

120,000 700,000 250,000 60,000

Total Start1,130,000 up Expenses

Ashleys Confectioneries will succeed by offering consumers quality bakery products at a competitive price.

Competitive Edge

Ashleys Confectioneries competitive edge is the close proximity to target customers.

Sales Strategy Kshs

As the table shows, Ashleys Confectioneries anticipates sales of about 6,912,000.00 in the first year, Kshs 7,603,200.00 in the second year.

Sales Forecast Year 1 Unit Sales Mandazis 6,912,000 7,603,200 Total Sales 6,912,000 7,603,200 Year 2

Year 1 Sales Direct Cost of Sales Total Cost of Sales Gross Margin Gross Margin %

Year 2

6,912,000 7,603,200 6,010,990 5,276,238 6,010,990 5,276,238 901,020 1,790,960 13% 30%