ONNYX:
This is the part of the value chain that this thread will seek to address and examine objectively the dynamics of the segment with a view to unveiling the potentials that are inherent in this segment of business.

I will also guide readers on how to approach this business in terms of entry into the industry, creating a distribution chain and sustaining demand. Now the crux here is that you can choose your type of entry. Is it going to be a big bang or you are going to tread carefully with minimal capital?

I will attempt to highlight the pros and cons of both entry approaches.

For the younger ones among the readers who reside in neighbourhood that are ‘bread friendly’ and who may not necessarily have the capital to start big I will craft an entry model that will ensure that you can enter this sector with as little money as possible with a view to growing into a colossus.

connkg:
Thank you, ONNYX, for sharing and for ignoring that somebody up here.

How did it go? Do you think people eat more bread at Christmas than during the rainy season?
Consultancy is a forte, thanks again!

ONNYX:
Hello guys!

Would this be a good time to continue with this thread?

aji2000:
@ONNYX, please update us, we are eagerly waiting for your next point.

ONNYX:


Have you taken action so far on any of the suggestions made above?

Why don't you share your experience here so that others can learn from you too?

temjul:

This is an informative thread..

connkg:
Welcome back, Sir!

ONNYX:
STEP ONE:

As would be expected, this would be the most important stage of the business venture.

What is involved at this point is information gathering. It is actually very simple as what is required is for the potential distributor to hit the road and seek out relevant information as regards bread sales in his immediate environment.

The most important information he needs to seek out are listed below;

1. What is the fastest moving bread size in that locality; Is it the 400.00, 250.00, 100.00 or 50.00?

2. Which is the preferred brand of bread in that neighbourhood and why?

3. How do the resellers get their supplies and how regularly?

4. What is the shelf-life of the preferred brand?

5. What is the average purchase volumes of the individual retailers?

Please note that these questions are no means exhaustive.

A closer and regular interaction with the vendors would reveal far more than a one off formal inquiry.

ONNYX:


Please read the quoted text which appears earlier on this thread.

So the very first step in starting out as a bread merchant is to conduct a comprehensive survey of the locality with a view to unveiling the fastest selling bread size/type in that market.

This could be attained using a number of measures but the one that I would advise is through striking some chord with the retailer such that he is open to provide this information for you in sincere terms.

The target here should be thefolllowing;

1. Mallam/Aboki Gate house shops,

2. The regular provisions shops .......

and of course

3. The smaller to medium sized supermarkets in your neighbourhood.

The result of this survey is what will help you in deciding objectively where to start from and what type of bread to start out with.

Comments and questions please before we move to Step Two.

temjul:


Following ....

ONNYX:


Please read the quoted text which appears earlier on this thread.

So the very first step in starting as a bread merchant is to conduct a comprehensive survey of the locality to unveil the fastest-selling bread size/type in that market.

This could be attained using several measures but the one that I would advise is through striking some chord with the retailer such that he is open to provide this information for you insincere terms.

The target here should be the following;

1. Mallam/Aboki Gatehouse shops,

2. The regular provisions shops .......

and of course

3. The smaller to medium-sized supermarkets in your neighborhood .

The result of this survey is what will help you in deciding objectively where to start from and what type of bread to start with.

Comments and questions please before we move to Step Two.

BlessedU:



Thanks for sharing this insightful write-up. But I have few questions based on the response I'm getting from the market now.


1. on distributorship, how can one adopt this strategy in Ikorodu? Because a lot of retailers already have bakers that supply them daily (abokis, people frying cake beans, and food sellers, and mini-supermarket).

2. Some of the retailers already have discounts from the bakers. So what is the best strategy to penetrate the market now as a distributor?

3. I see potential in distributorship based on your explanation on naira land(already have a plan of selling 1000pcs per day)but after discussing with few retailers it seems a bit difficult to implement in reality considering the profit margin.

Is this strategy still applicable at present it seems many people are already using it?

I look forward to seeing your response.