Category Archives: Enterprises

Nougat – Product Life Cycles and Ansoff Grids?

This is like a case study for the Product Lifecycle and the Ansoff Matrix approaches to market development.

Wedgewood have just come up with Race Food

click the image to visit the website

Which has a somewhat different feel to its existing product, which has a totally different look.

On the product lifecycle nougat is surely a mature product and the photo above shows a classic existing product in existing market.

Race Food is a normal nougat modified to be less sweet and softer to chew and of course packaged in a size and format that suits the athlete. So it's an existing product entering a new market, hoping to start a new growth phase in Wedgewood Nougat lifecycle. It's also interesting to note that according to Wedgewood the idea came from their customers.

After some time and success in the market this might become material for a business school case study.

 

Brewing in USA – The Small Option.

Over the next while there will probably be a number of posts showing that smaller alternatives to the multinational food companies, are where growth is happening at present. An interesting question is does this also bring the “try it quickly and fail” approach used in the computing industry to the Food Industry?

Crowds at US Small Brewing Show

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Here again we have the demonstration that the US brewing industry has moved from supplying only the bland beer that was the consequence of centralisation and wide distribution. The consumer really wants more interesting, flavoursome local beers whose brewing value chain can unluckily (luckily actually) not be scaled up in the multinational brewing system.

 

Carbonated Soft Drinks – Franchise Opportunity.

Soda King seems to offer a fairly simple, sound and promising franchise.

Homepage of Soda King franchise

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They are reasonably new so there are many opportunities for entrepreneurs in Africa, although there is also Tanzanian franchise not shown on this map.

Soda King  Franchises

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If you are interested I suggest you contact them, leave the technology and equipment to them and focus on your local market and input suppliers.

South African Book On Bottom Of The Pyramid

New Markets, New Mindsets is a book that attempts to provide information to assist enterprises to sell to the very poorest – the so called bottom of the pyramid. It is based on real information from South African experiences.

The book says that no one has yet found the way to sell profitably and sustainably here, but that companies are starting to get things right which will eventually lead to success.

The book advocates co-operation in this market and will be running a pilot in Diepsloot to gather experience and test hypotheses.

New Markets New Mindsets 1

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The above webpage includes a video interview with one of the authors, which you can see by using the link below.

Mad River Food Hub – renting Processing Capacity

This processing centre in the USA appears to have managed to set itself up to support small scale processors, unlike many failed African attempts I have seen. It seems a sensible approach and I would really like to hear about successful businesses similar to this in Africa. But let’s look at this one first.

click the image to visit the website

This facility in Waitsfield, Vermont covers 370 m2 facility and offers two meat processing rooms, a vegetable/herb processing room and a smoking room as well as a shared dish-station, Industrial sized freezer & cooler and dry storage area. The centre also makes available a distribution service through a commercial food distributor.

The facility is approved for food and meat processing and is run as a for profit business. It is currently running at about a half of the 60% utilization required to break even, but the manager is confident of reaching this within a year.

The plant is run within a list of process and storage prices and even has a series of defined fines for actions from not cleaning properly to missing a booking.

While I have seen a number of incubators, processing centers and other models aimed at promoting small enterprises in a number of countries, the closest I have seen to this model was at Mahala in Mpumalanga, South Africa.

That centre offered the use of equipment to produce a number of food products including bread, fruit juice and vegetable oil (ref.: Fruit And Veg Cape Town). The center only operated while it was grant funded and failed as soon as grant funding ceased as utilization was low. It is interesting to note that the technologies offered weren’t focussed so much on farmer’s needs but were product linked. The centre also offered non food technologies with concrete block making being the most successful.

What information do you have to add? Why not email me and I will publish it here, to allow others the chance to understand success factors and not make the same mistakes!

 

Seeking Investors for a Watermelon Juice Factory in Tanzania

Resources and Returns Compant Ltd is looking for investors in a watermelon juice factory, that will be able to produce 4 million liters a year of juice.

 

Image by Dave Harcourt is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

 

I have never seen or tasted watermelon juice and am not particularly excited about the prospect. however, I hope I am wrong and that this can be a success and a contributor to Tanzania’s growth.

 

Dairy Processing Introduction – Free Online Information

If you are looking at starting a new dairy business, this is a really good but simple starting point.

Image by Dave Harcourt is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.

Starting with some background and an explanation of shelf life the 8 page pamphlet goes through building, equipment, legislation, cleaning and sanitation, quality assurance, dairy processes, dairy unit operations, suppliers, references and support organisations.

Even if you are a small dairyman, it would be worth reading this just as another view.

Manual For Entrepreneurs: Food Processing Industry – Free Online Information

This is a free 200 page manual developed for Food Processing entrepreneurs in India.

Manual_For_Entrepreneurs_in_theFood_Processing_Industry

Since it’s written for Indian entrepreneurs a lot of the business information is only really applicable in India, but there is still a lot of interest. This free version was written around 2000, so if the numbers in the overview of the food industry are important you would be advised to buy a newer version.

The scope of the manual as indicated by the table of contents:

1. The Food Processing Sector in India
2. The Impact of Policy on Enterprises
3. Who is an Entrepreneur?
4. Soft Skills for Entrepreneurs
5. Planning a Small-Scale Unit: Whom to Approach for What
6. Business Opportunity Identification
7. Market Survey Tools, Preparation of Schedule and Techniques of Data Collection
8. Production Programme, Plant Capacity, ManpowerRequirements and Layout
9. Business Plan Format for Tiny and Small Enterprises
10. The Financials of a Project Report
11. Assessing Financial Viability of the Project
12. Bookkeeping and Accounting and Financial Statements
13. Costing and Pricing of Products
14. Working Capital Management 14515. Marketing Management
16. Applied Management in Business: Learning from Existing Businesses
17. Legal Requirements
18. Support Institutions for Promotion of Food Processing Sector

Rather India focussed annexures include many contacts as well as a more general list of references and suggested reading.

The manual is very practical and detailed with many checklists, forms, case studies and financial calculations to assist the entrepreneur to cover all necessary aspects of setting up an enterprise.

The manual does not provide food processing information, only providing a list of potential technology and equipment suppliers

Food Processor’s Reference Manual – Free Online Information

Here is a 288 page , high quality manual covering the steps required to set up a small food processing business.  

 

click image to visit website  
 

The table of the contents of the book says it all 

The only downside is that it is written for Canada so many of the contacts are not applicable to local circumstances. However, the quality and depth of the information and the fact that it’s free to download make its retention as a reference worthwhile.