1.

0 EXECUTIVE SUMMARY

NutrI ndigie Foods is a locally owned company whose aim is to process a variety of
indigenous fruits, package and distribute nationwide this encompasses over 75
leading retail outlets across the country, using our fleet of vehicles. We are food
processing specialists in household consumable products and will steadily become the
brand of choice amongst our Zimbabwean consumers.

We will constantly look for means and ways to provide a superior service and to
diversify our product range, listening to our customer's feedback and requests. In
addition, Nutr-I-ndigie Foods merchandisers and demonstration team can be found in
store educating the consumer on the quality and value of our product basket.

Nutr I ndigie Foods Product Basket:

Cooking oil
Beverages fruit juices, wines
Spreads fruit jam, peanut butter, syrup
Cereals
a delicious range of yoghurts and ice cream
Fruit flavoured cakes

2.0 COMPANY BACKGROUND

Nutr-I-ndigie is an indigenous Zimbabwean-based Company which was established in

February 2014. We process, package and distribute nutritious and tasty foods made from the
best of Zimbabwes indigenous fruits. Through innovative product line, creative packaging and
competitive pricing and distribution strategy, Nutr-I-ndigie will gradually displace imports and
attract new customers every day.

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2.1 Mission Statement:

Were determined to continuously improve our social and environmental performance and to
provide quality, nutritious and tasty foods from the best of Zimbabwes indigenous fruits.

2.2 Our Vision:

To be a well-structured organisation, offering quality, nutritious and tasty food products from
naturally occurring fruits in Southern Africa, thereby contributing significantly to the improved
nutritional status and better livelihoods of the African people.

2.3 Core Values:

1. Quality

2. Continuous improvement

3. Accountability

4. Inspiring

5. Trustworthy

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2.4 Company Structure:

C.E.O
(Kudzai Nyaguse)

Production Quality Finance Marketing

Manager Manager Manager Manager
(Sandra Gusha) (Obert N. (Merylynn T. (Ntokozo B. Moyo)
Madimutsa) Sibanda)

Supply Chain Operations Sales

Associate Supervisor Personnel
(Knowledge Masunungure) (Lovejoy Madziturira) (Ruvimbo
Mukombero)

Boiler Operations
Drivers Operator Laboratory
Technicians Technicians

2.5 Marketing Objectives

To achieve an increase in sales by 3% per quarter.

To maintain a steady, sustainable growth each quarter and attempt to decrease overhead
costs as a percentage of revenue.

To increase brand awareness of Nutr I ndigie food products.

To establish a wider variety of products through line extension.

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3.0 MARKETING AUDIT

3.1 External Audit

3.1.1 Political Analysis

The Zimbabwean government through its Indigenisation and empowerment policy is

supporting innovative ideas for sustainable socio-economic transformation. The Zimbabwe
Agenda for Sustainable Socio-Economic Transformation (Zim Asset) seeks to build a
prosperous, diverse and competitive food security and nutrition sector that contributes
significantly to national development through the provision of an enabling environment for
sustainable economic empowerment and social transformation. Nutr-I-ndigie Foods Pvt Ltd is
a novel centred company whose aim is to process indigenous fruits into nutritious products thus
aligns with the current government policy.

3.1.2 Economic Analysis

Interest rates affect a firm's cost of capital and therefore to what extent a business grows and
expands. Exchange rates affect the costs of exporting goods and the supply and price of
imported goods in an economy. The current economic instability in Zimbabwe is mainly due
to harsh economic sanctions being imposed by the Western allies. Nutr-I-ndigie Foods Pvt Ltd
is likely to be affected from entering the market since it is new and thus it is going to be difficult
to source potential investors to kick start.

The Look East policy introduced by the government is giving hope to Nutr-I-ndigie Foods
Pvt Ltd in finding potential investors.

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3.1.3 Social Analysis

Socially, Nutr-I-ndigie Foods is also focusing on improving lifestyles of average Zimbabwean

families by providing contract employment during the fruit picking seasons that is, in
correspondence to the type of fruits found in a particular area. For example, baobab fruits found
mostly in the Lowveld parts of the country. Indigenous fruits are found in different regions
throughout the country thus social improvement is going to be evenly distributed.

Nowadays people are more health conscious, diet and health are getting more focus, so there
is now a high demand for highly nutritious foods. Nutr-I-ndigie will be at the forefront for this
surge in demand as people are looking for high nutritional foods.

3.1.4 Technological Analysis

Nutr-I-ndigie will be equipped with modern technology equipment and highly modernised
laboratory to ensure provision of quality products. One of the laboratory equipment which
would be used for nutritional analysis is a Gas Chromatography coupled with a Mass
Spectrometer. The company would also be using novel non-thermal food processing
technologies, like Cold Plasma and Pulsed Electric Field.

3.1.5 Environmental Analysis

Due to uncontrollable changes in climate, Nutr-I-ndigies sources of raw materials would be

greatly affected. This is so since indigenous fruit trees grow naturally and there is no human
effort involved directly in taking care of them in times of natural disasters like droughts and
floods.

Different climatic conditions in different regions of the country, will offer Nutr-I-ndigie an
advantage of accessing different types of fruits almost throughout the year.

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3.1.6 Legal Analysis

Consumer rights and laws are protected by the Consumer Council of Zimbabwe (CCZ).
Product labelling and product safety is controlled by the Standards Association of Zimbabwe
(SAZ). The government oversees intellectual property rights, which encompasses unfair
competition through advertising and trademarks. OHSAS 18001 is an international standard
for occupational health and safety, which oversees the health and safety issues at work places.
These factors will affect how Nutr-I-ndigie will operate, its costs, and the demand for its
products.

Nutr-I-ndigie will make an effort not to violet laws and regulations set by the Veterinarians for
Animal Welfare in Zimbabwe and Environmental Management Agency.

3.2 Micro Environment

3.2.1 Suppliers

Nutr-I-ndigies key inputs (indigenous fruits) are naturally occurring therefore the costs
incurred on accessing them are only directed towards labour. Supply costs are directly
controlled by the company since it will be the only bulk purchaser of the raw materials. Thus
there are low risks of supply shortages or delays, labour strikes and other events that can cost
sales in the short run and damage customer satisfaction in the long run.

3.2.2 Customers

Nutr-I-ndegies consumer market mainly consist of individuals and households who buy
products for personal consumption and reseller markets who buy products to resell at a profit.
However, to a lesser extent, government markets are made up of government agencies that buy
products for public services or transfer the products to others who need them.

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In our case, Nutr-I-ndigies highly nutritious products can be used as supplements to the HIV
positive community and those in need.

In the initial stage, Nutr-I-ndigies market will mainly comprise of innovators and early
adopters, since its products are new.

3.2.3 Competitors

Most of our products are a first of their kind on the market, giving Nutr-I-ndigie a competitive
advantage. Our major competitors are those companies which only focus on a specific raw
material, for example Bayoba investments which produces yoghurt from baobab fruit.

3.2.4 Industrial Analysis

The marketing plan is targeting two markets, Harare and Chitungwiza during the initiation
phase. The total population of the two cities is about 3million. The projected market size of
Nutr-I-ndigie is approximately 16% of the total population (480 000), since it is a new market.

Reasons for targeting Harare and Chitungwiza:

Harare has the largest national markets since it is the capital city
The two places are close to the factory for easy transportation
Due to urbanisation, indigenous fruit tree are scarce in these two areas thereby creating a
favourable market environment for the products.

Nutr-I-ndigie has a potential market growth since it will be supplying some of its products
during the off-season and to areas where they are scarce or rare.

Nutr-I-ndigie is new to the market.

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3.3 Swot Analysis

STRENGTHS WEAKNESSES
First company to process a variety indigenous little financial resources
fruits contract workforce is not reliable
technical know-how -every personnel in poor brand awareness
managerial and administrative boards at Nutr-I- no control over yields of our raw
Indigie has a Food Processing background materials
higher probability of monopolising the market
for longer
superior products
highly qualified workforce
We have cheap labour from contract workers.
The company is locally owned, no need for
indigenisation procedures
Cheap raw material sources

OPPORTUNITIES THREATS
growing demand new competitors may arise
changing customer tastes, increased awareness natural disasters may affect source of
in nutritional value raw materials
new regulations e.g. Zim Asset new regulations
People are being urged to eat nutritious foods Already existing competitors like
for health reasons. Bayoba investments may lower their
Lack of a variety of indigenous fruit products prices below cost of manufacturing
on the market so as to restrict all potential entrants
like us

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4.0 MARKETING STRATEGY

Our successful marketing strategy is based on the BCG Matrix as well as the marketing
mix elements. Considering the BCG Matrix our Star product would be Cooking Oil,
Cash cow being Beverages, Spreads would be Question Marks and Cereals as Dogs.
Our company has a possibility of holding a large market share and would require less
investment, enabling us to generate intensive profits since the costs of obtaining our
raw materials are very low.

Relative Market Share

High Low

High

Market Growth

Low

Figure 1: B.C.G Matrix

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4.1.0 Segmentation Strategy

Demographic:

CLIENT BASE for our cooperate clients, we will target individuals, retailers and
organisations like childrens home, preschools and local hospitals.
GENDER we are targeting both sexes equally.
AGE we are targeting all age groups except for infants.
INCOME we will target both the high, middle and low income earners, self-employed
and the unemployed.
RACE/ NATIONALITY we have no racial discrimination we are targeting all races.

Percentage ratio of targeted consumers

Organisations and
Gvt
25%
Individuals Individuals
45% Retailers
Organisations and Gvt

Retailers
30%

Figure 2: Ratio of Nutr-I-ndigies targeted groups.

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4.2.0 Marketing Mix Strategies

These are the controllable variables the company put together to satisfy the target
groups. These include the four Ps in marketing.

4.2.1 Products Strategy

Nutr I ndigie will offer a wide range of products which include cooking oil,
beverages, cereals, yoghurts, ice creams, fruit jams, peanut butter, syrups and fruit
flavoured cakes. We will ensure quality and high nutritional value to our valued
customers. Above all, our packaging is going to be uniquely well designed (green
packaging), that is made from by-products like baobab fruit shells which are
biodegradable and environmentally friendly. Nutritional facts about the product will
also be added to the packaging material.

4.2.2 Pricing Strategy

Nutr I ndigies pricing is designed to be competitive to other food processing

companies. Our prices are going to be based on art, competition, packaging and demand
from the market. As a marketing team, our number one goal is to have prices that are
favourable to almost every individual so as to attain a large market share within the first
six months of market entry. This will be achieved by using a penetration pricing, a
competitor based pricing strategy. The prices are going to be based on the quantity of
the product.

4.2.3 Place/ Distribution Strategy

Nutr I ndigies products will be carried by multiple retailer outlets across the nation.
Products will also be sold through its independent distributions outlets. The company
has also plans of establishing new production facilities in different parts of the country
within the next five years.

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 Delivery trucks are going to be used to ferry our products to markets within the country.
We will also focus on distributing our products in schools, nurseries, hospitals,
universities and NGOs. Deliveries are going to be made according to schedule set to
those customers who have bought in bulk. Effective communication is going to be
implemented, that is a good and effective customer service which is going to be the
main priority of our public relations department.

4.2.4 Promotion Strategy

Both above the line and below the line media are going to be used to promote our
products. For the former, colourful newspaper articles in almost all local newspapers
which include Herald, Sunday Mail, H-Metro and Kwayedza. Advertising is also going
to be on the national television (ZBC) and local radio stations which include Star FM,
Power FM and Radio Zimbabwe. This will draw attention from the targeted segment,
of particular interest the decision makers, informing them about the core benefits of
buying our products.

The widespread availability of the Internet has affected many aspects of marketing,
including competition. Because of the worlds rapid change in technology, social
networks will play a major role in promoting our products. Thus below the line media
will be used to a lager extent as compared to above the line media.

We will flood the market with our products, carrying out sales with the intention of
familiarizing our product with the people so as to gain a large market share. We will
also do environmental campaigns through the provision of waste bins in cities and
towns, which will tagged with advertising posters of our products. Free t-shirts will be
distributed and our customers will be educated about recycling thereby operating on the
basis of a societal marketing philosophy.

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4.1.5 Positioning Strategy

High
Minute
Bayoba
Maid
Pricing ($)

Medium

Dairiboard &
camisa Nutr-I-ndigie
Lyons

magma

Low

Medium
Low High
Nutritional Value

Figure 3: Psychographic positioning of beverages in the market

From the psychographic positioning diagram above our product is going to be of

high nutritional value offering medium price. Other large companies such as Minute
Maid are market leaders in the beverage industry and operate on the basis of value
based branding.

4.1.6 Branding Strategy

Our brand is not the product, logo, website, the name Nutr-I-ndigie. Its what our
customers perceive about us, and how we make them feel. This goes beyond our
product itself -- it's about selling the problem we are solving.

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Natural is the most important aspect about our products and thus we will make the
phrase, using nature to create, part of every aspect of our brand
communication.

We will make sure it is clear and understood through all our communications,
especially inside our own company. To reinforce the message, in our company
meetings, over coffee or lunch, or just chatting at our desk, encouraging the feelings
we want our brand to evoke in customers and our employees. When employees start
to talk the talk and walk the walk, especially those on the front lines, the messaging
is consistently reinforced with leads and customers, too. This way customers will
know what they will get when they buy our products.

Nutr-I-ndigie will find a way to connect to its customers on a deeper level, giving
them peace of mind and making them feel like part of the family. We will try to
connect with our customers on this point before and after a sale. We try to answer
their questions and concerns on social media.

Sometimes if there are customers that love our brand we will reward them, just a
thank you is all that's needed, but great brands also tend to give more than that,
cultivating loyalty. We write them personalized letters.

At the start of each new campaign, we check our marketing analytics for branded
and organic search. If it goes up when we launch our campaign, it means people are
hearing about our campaign and becoming interested in our brand. They will search
for us, often by name, because we have provided them with enough compelling
content that they want to know more. By staying agile, we can better measure
whether our tactics are aligning well with our overall brand strategy, and if they
don't, we haven't invested so much that we can't re-evaluate.

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 If our old tactics arent working anymore, we wont hesitate to change them just
because it worked in the past. We will take the opportunity to engage our followers
in fresh, new ways. We will look for some out-of-the-box partnerships our brand
can make and even other attributes about our products we never highlighted. We
will use those to connect with new customers and remind our old ones why they
love us.

Figure 4: Brand creation for Nutr-I-ndigie Foods

4.1.7 Targeting Strategy

An undifferentiated targeting strategy will be used where Nutr-I-ndigie Foods will

communicate the benefits of its products by sending the same promotional message
to everyone. Our products will be readily available, affordable and provides the
same benefits to all consumers. Very few companies with consumer products meet
these criteria.

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 One Product Entire Market

Figure 5: Undifferentiated Targeting Strategy

5.0 ACTION PLAN

Activity Dept. Month

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Adverts Marketing
Publicity P.R
Sales Marketing
promotion
exhibitions Marketing
Direct Marketing
marketing

Figure 6: Nutr - I - ndigie Foods yearly action plan

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6.0 PROJECTED FINANCIAL OBJECTIVES AND FINANCIAL STATEMENTS
6.1 Financial Objectives
Experience at least 15% growth rate in the first three years of operation.
Reduce overhead costs by 5% each year.
Reach profitability by the end of year two.
6.2 Budget

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total

Advertising
Electronic 2 500 1 300 2 300 2 500 8 600
Print 300 230 210 300 1 040
Graphics 3 100 2 100 2 200 3 000 10 400
Body 280 200 200 320 1 000
21 040
Sales Promotion
Discounts 1 225 1 275 - 1 500 4 000
Road shows 1 000 1 000 - 1 500 3 500
Draws - 5 000 - - 5 000
12 500
Exhibitions
Trade shows - 4 000 1 500 - 5 500
Trade promotions - 600 300 - 900
6 400
Direct marketing
Text messages - - - 350 350

Emails - - - 250 250

telephone calls - - - 500 500
1 100
41 040

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6.3 Income Statement of Nutr-I-ndigie (Pvt) Ltd for the year ended 31/12/2014:

$ $
revenues 400 000
Less: Cost of Sales (17 000)
Gross Profit 383 000
Less: Expenses
Wages and salaries 158 960
Sales and Marketing 41 040
Research and Development 5 000
General and Administrative 57 500 (262 500)
Operating Income (EBIT) 120 500
Interest paid (500)
Net Income before taxes 120 000
Corporate tax (450)
Net Profit (Retained Earnings) 119 550

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6.4 Balance Sheet for Nutr-I-ndigie (Pvt) Ltd as at 31/12/2014:

Fixed Assets $ $
vehicles 110 000
plant and equipment 240 000
Total Fixed Assets 350 000
Add: Current Assets
Stock 85 000
Cash at Bank 120 000
Debtors 50 000
Total Current Assets 255 000
Less: Current liabilities
Creditors 75 000
Working capital 180 000
Total Net Assets 530 000
Financed by:
Capital 210 450
Retained Earnings 119 550
Long Term Liability: Bank Loan 200 000
530 000

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6.5 Nutr-I-ndigie (Pvt) Ltd statement of cash-flows for the year ended on 31/12/2014

Cash from Operating Activities

Receipts from customers 120 000
Payment to suppliers and employees (98 000)
Net cash-flow from Operating activities 22 000
Cash-flows from Investing Activities
Proceeds from sale of non-current assets 100 000
Payment for non-current assets (75 000)
Net cash-flow from Investing Activities 25 000
Cash-flows from Financing Activities
Bank loan 200 000
Repayments of loan (500)
Net cash-flows from Financing Activities 199 500
Net Increase in cash held 246 500
Cash held at the beginning of the year 120 000
Cash held at the end of the year 366 500

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7.0 CONTROLS AND EVALUATION
7.1 Methods of getting feedback from customers:

Mounting suggestion boxes at points of sale

Analyze periodically the sales figures to measure product acceptance by consumers for
a given period of time

Compare actual sales of given period of time with those projected

By using surveys and questionnaires to get customers opinion about product and
possible improvements

Audit of marketing strategies and distribution to ensure efficiency in reaching

customers and deliverance of quality product

Record all forms of conversations with customers on customer feedback forms

Record obtained data from different market places. Analyze and dedicate marketing
resources to areas with low sales that is promotion and massive education on consumers
on the advantages of our product over others.

Do export back meeting to assess level of success and level of failure and possible
solution to the problems

7.2 Evaluation
Use BCG matrix to establish market share and market attractiveness

Compare market prices with that of competitors to ensure price competitiveness

Evaluate current technology being used whether it is efficient to produce enough

products at low market cost. Analyzing competitors technology is also important.

Evaluation of all feedbacks on a monthly basis and corrective actions will be taken with
respect to customer feedbacks and market performance

Sales targets are going to be met through use of control documents such as sales reports.

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8.0 APPENDIX:

Gusha R. Sandra H1314760 S

Madimutsa N. Obert H1312630 U
Madziturira Lovejoy H1312887 R
Masunungure Knowledge H1310615 H
Moyo B. Ntokozo H1311641 T
Mukombero F. Ruvimbo H1311109 H
Nyaguse Kudzai H1312124 N
Sibanda T. Marylynn H1310493 P

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