NZOMELA HERBAL BREAD Business Plan 2019

Nzomela Herbal Bread was founded by Jabulani Ngwenya and Bulelani Williams in 2018. The company started in an effort to combat one of the township’s biggest challenges; hunger. Nzomela realised that the majority of the township relies on bread that is both unhealthy and expensive for residents who live below the breadline. Nzomela Herbal Bread provide high-quality and low-cost bread to underprivileged communities. Nzomela Herbal Bread makes use of local ingredients are proudly South African products.

Nzomela Herbal Bread decided to develop their own organic bread made with the freshest herbs. At the moment they only make 4 ‘flavours’ of bread including cannabis bread (upon request) but are hoping to increase their product line and range in the near future.

They are able to make 4 loaves of bread an hour. The loaves are taken for distribution by Bulelani, the “Super Distributor”, who delivers approximately 20 loaves to loyal customers at R10/loaf. One might think the price is steep for the size of the bread, but customers who have tasted the bread will assure you that it is worth every cent.

HOW WE HELPED

Group 1 was tasked in creating a business plan for Nzomela.

They had to research and compile a professional business plan for Nzomela to take

with them and implement.

The different components of the business plan:

  • Executive Summary
  • Company Description
  • Products
  • Market Analysis
  • Marketing Strategy and Implementation
  • Financial Plan
  • Appendix
  • Conclusion

 

CHALLENGES:

  • Lack of funding.
  • Lack of brand awareness.
  • Have a single domestic oven.
  • Limited internet access.
  • No bank account.
  • Lack of organic/nutritional certification.
  • Bread has limited lifespan.
  • Lack of manpower.
  • The use of plastic packaging is less appealing to organic markets

WHAT WE DID

SOLUTIONS:

  • Create business plan- pitch to investors/sponsors.
  • Social media campaigns, educational workshops and advertising
  • Purchase industrial oven.
  • Monthly fixed data plan.
  • Open a bank account.
  • Get a nutritionist to evaluate the nutritional value of the bread.
  • Organic preservatives could be added to lengthen bread lifespan.
  • Employ more people (involve the community).
  • Use biodegradable materials for packaging.

 

EXECUTIVE SUMMARY

Vision Statement

Nzomela provides the highest quality, health conscious, herbal bread to the communities of Soweto and thereby be an active participant in the social and economic  upliftment of Soweto as a whole, by promoting active community participation and total inclusion.

 

Mission statement

By basing the achievements on the outcome of eco-revitalisation and community upliftment: through various participation campaigns such as feeding schemes; merging partnerships with community businesses and organizations and recycling projects which there by improves the economic and social state of the Soweto community Nzomela achieves this through the sale of its bread products.

 

Core Values

Community Engagement: Total and inherent participation in the Soweto community

Food Security: Ensure that the core bakery produces bread that provides extensive food security.

High Quality Produce: Produce high quality, innovative, ecologically crafted bread.

Health Benefits: Provide a daily herbal remedy through its bread.

 

MARKET ANALYSIS - INDUSTRY ANALYSIS

  • Bread is one of the fastest moving products in the country and is eaten by township people for a minimum of one meal a day.
  • The number of stand-alone retail and in-store bakeries have grown dramatically.
  • In stand-alone retail bakeries, there are lower labour rates and lower delivery costs than industrial bakeries. Local and in-store bakeries have the benefit of the retail margin as it sells directly to the public. Ingredient and equipment suppliers also gain from new bakeries opening.

The industry, whether it is industrial or commercial already has a great demand to deliver affordable bread to these lower-income consumers, therefore, competition is rife

 

MARKETING STRATEGY AND IMPLEMENTATION

Establishing the Brand in Dube - Securing Nzomela’s position within Dube as the dominant health bread. Building a customer loyalty platform.

Increasing the Production - From selling 16- 25 loaves a day to selling 50 loaves a day.

Establishing Distribution Points - Mapping out distribution points in the Dube township for the customers to purchase the bread from.

Finance & Legal Documents - Getting funding from either investors/ sponsors or an event. Requiring the necessary documents to make the business credible to their client base.

Community Engagement - The educational workshops with the school students. The upliftment of the community members.