CPU BUSINESS AND INFORMATION TECHNOLOGY COLLEGE

DEPARTMENT OF BUSINESS ADMINISTRATION

GROUP ASSIGNMENT

Course; - Marketing Management

Title; - Business proposal of Enat Injera production Small Scale Enterprise

Instructor,

Group Members ID

1. Matiyas Bedelu EMBA/2384/14

2. Lulit Alemayehu EMBA/2378/14

3. Aregu Mulu EMBA/2562/14

4. Afomiya Bekele EMBA/2274/14

5. Estifanos Epherem EMBA/2845/14

Submitted To: Gashaw .T (Ph. d)

Submission Date1: 1/17/23

Table of content……………………………………………………………………………………page
1. Executive summery ……………………………………………………………………………….1
Mission………………………………………………………………………………………………….......2
2.1. Key to the success of Enat injera………………………………………………………….2
2.2 Market analysis……………………………………………………………………………………2
3. Target market………………………………………………………………………………………..3
3.1. Competitive advantage………………………………………………………………………..4
3.2. Pricing strategy…………………………………………………………………………………..4
4. The price of our product depend on the customer types………………………..5
4.1. Man power requirement……………………………………………………………………..5
4.2 Job opportunity for the first three month…………………………………………….5
5. Product and service……………………………………………………………………………….6
5.1. Expected financial result…………………………………………………………………….6
6. Sales forecast ……………………………………………………………………………………….7
7. Personnel plan……………………………………………………………………………………….8
7.1. General assumption……………………………………………………………………..........8
8. Pro forma profit and loss………………………………………………………………………8

9. Cost’s……………………………………………………………………………………………..……….9

9.1. Cost of production /month………………………………………………………..……..9

10. Fixed cost…………………………………………………………………………………………...10

10.1. Variable cost’s………………………………………………………………………………...10

11. Assumption used financial projection……………………………………………..…11

1. Executive summery
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The bakery of injera has come a long way and it will continue to evolve with
countless of bakers bringing creativity in the industry

Injera is one of flourbased food that generally consumed by almost everybody in

our country. as such anyone who choose to establish in any part of the city is
sure going as they are doing the right thing when come to a business.

Enat injera is small scald enterprise that produces 100% pure teff injera to its
locally located potential costumer. The enterprise will start with capital of
150,000birr which earned from either individual or bank/woreda loan. by the
interest rate of not more than 8%. if the lone has earned free from interest we
are capable to accomplish the payment with 62.5 month by saving 2400
birr/month which is deducted from personal saving. if not 65 months the
maximum time to accomplish the payment.

The enterprise major product is injera which is made 100% pure teff. but in the
future we plan to produce “drkosh” as a supplementary product in order to
minimize the loss that occur during demand fluctuation.

The enterprise located in Addis in the special area called” Alemgena “which is
selected carefully and wisely in order to be profitable.

the delivery system of owner products is by both traditional (delivery man) or

modern (by means of vehicle)

transportation only use for these customers who are not far from 2km from
production area.

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 In order to penetrate the market, we produce pure and quality injera with slit deduction of
and free plastic package for only introduction stage of the enterprise. The added value and
deduction will attract the potential customer and will become a reason for customer to shif

2. Mission

Enat injera aim to offer high quality injera at competitive price to meet the
demand of low to medium income class of people located in local market area
residents and retail store.

2.1 Key to the success of Enat injera

Key to the success of Enat injera will included

1, providing a high quality injera with personal customer service

2, competitive pricing

3 standardizing the quality and size of our product

4, quality delivery system

2.2. Market analysis

When it comes to injera everybody may want to quit agree the market trend
change with rapid astonishment. This is why it is difficult to make a marketing
plan for injera. We believe market change in this business is high. So we should
explore the barrier to come up with tastes and updated product price from what
readily available in present market.

In our country injera customers are concerned and also focus on price and
quality of the product some time timely delivery become the major determinate

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of the market. So by improving such area we hopefully we can meet the demand
the market that are available to as in the local area in which our firm are located.

to start our business, we include the following marketing and sale strategy that
we will adopted are included but not limited.

1. Neighbourhood, door to door and mouth to ear mode of advertising to

introduce our business.

2. Creating some product in standard size, with different price and perhaps a
little lower than the price at similar product in the market

3. Market taste

4. Adding value by price deduction and free plastic package

3. Target market

We are quite aware that the target market bakery production cut across people
at all walks of life. Since needed food to survive; we are prepared to meet the
need of as much as people we can, within our limited location which the firm is
located.

As such if it is difficult to create a list of people we intended selling our products

1. Grocery, restaurant, fast foods, shops (mama and papa store),

2. Injera retailer and any special order from individual within limited area in
which our firm are located.

3. And also special events like weeding, funeral and birthdays

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3.1. Competitive advantage

In addis ababa and perhaps in other parts of the country there is at list one and
lot of people are already running the business. Even though there are standard
baker in our target market that will not differ as foraging a head to set up our
own injera bakery enterprises.

Our competitive advantages are

1, we produce injera which it is made of a 100% pure teff

2, we are one the very few bakery enterprises in our targeted market

3, we make careful research in order to minimize the risk

4, we are free from cost of rent for production of our product

5, we provided credit system for those permanent customers

6, we are the only supplier who give free plastic handler along with our product

3.2. PRICING STRATYGY

The enterprise pricing strategies is not different from other competitors means
we use the market price for our product but in order to penetrate the market we
use different depend on customer type. As well know the profit of our business
not more than prices of injera so our profit depends on the quantity which
customer buy. so in order to attract potential customer we make a little
reduction of price to final users of our product. for those who resell our product
the price remains constants with the market price but in order to attract our
potential retailer we give free plastic handlers for those who buy more than 50

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pieces of injera and also for those customer who buy our product direct from our
shop there will be a little prices deduction will be expected.

Depending on our research customer who used our product (injera) are
sensitive to quality rather than it price. even though final users are sensitive to
the quality of the product than its price our channels who connect as with final
users prefer the quality product with less price than the market price.

So in order to break the already formulated channel of competitors we decided

to reduce the price in the introduction stage of the Enterprise.

4.The price of our product depend on the customer types

No Types of customer Unit price

1 Retailers 10
2 Hotel ,grocery and other final users 9.50
3 In our shop .12
4 Special events order 11

Note the above price is used only for the introduction sate of the enterprise

4.1. Man power requirement

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The availability of skilled beakers in the city is a hard job. Because of the nature
of our business. in order to attract and compete in the labour market we pay
competitive salary for our employee.

The enterprise will one new job opportunity for bakers, two job opportunity for
delivery man and 1(one)mixer man when we start our business. when we start
to operate with full capacity it will increases 5, 6 and to respectively.

4.2Job opportunity for the first three month

Types of job Quantity Total salary

Bakeries 1 2500
Delivery man 2 2600
Mixer man 1 1000

5. Product and service

We will produce 100% teff injera to our potential customer which make as
unlike from other competitor. Depending on the interest of our customers we
might mix rice in order to make the product whiter. It is a clear fact that injera is
perishable by its nature, because of the perishable nature of our product we may
add “drkosh” as supplementary product in the near future.

Finally, we plan to sell some other product like yoghurt, milk and other such like
product will resell in our own shop

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 types of product

1. injera

2. derkosh

3. Milk, yoghurt and other like products.

5.1. Expected financial result

Profitability; the enterprise profit and loss statement for six month show we will
earn a net profit of birr 14,900 in the first month and birr 210,800 at end of six
months. This implies that the enterprise will run profitability business venture
providing that activity as planned. Sales: the enterprise sales forecasted for six
month show that we will sale 12,000 piece of injera for the first month and
72,000 at the end of the forecasted price.

Personnel: the man power are start with 3 (three) personnel and it growth to
17 (seventy) depend on the increment of quality of product those man power
and sales are directly proportional. The personnel plan statement show that the
salary for the first month will be 5100(five thousand hindered birr) and
34,000(thirty four thousand birr).

6. SALES FORCAST

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UNIT MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6
SALES
ENJERA 12,000 24,000 36,000 48,000 60,000 72,000

UNIT MONTH1 MONTH2 MONTH3 MONTH4 MONTH5 MONTH6

PRICE
ENJERA 6:50 6:50 6:50 6:50 7:00 7:00

SALES MONTH1 MONTH2 MONTH3 MONTH4 MONTH5 MONTH6

ENJERA 78,000 156,000 234,000 312,000 420,000 504,000

DIRECT MONTH1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6

UNIT COST
ENJERA 4:83$ 4:83$ 4:83$ 4:83$ 4:83$ 4:83$

DIRECT MONTH1 MONTH2 MONTH3 MONTH4 MONTH5 MONTH6

COST
ENJERA 58,000 115,500$ 173,000$ 187,3000$ 201,600$ 259,100$

7. PERSONNEL PLAN

MONTH MON 1 MON 2 MON 3 MON 4 MON 5 MON 6

ENJERA 2500 2500 2500 2500 2500 2500
BAKERS
DELIVERY 1300 1300 1300 1300 1300 1300
PERSONNEL
TOTA L3 5 8 11 14 17

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PEOPLE
TOTAL PAY5,100 8,900 15,200 21,500 27,800 34100
ROLL

7.1. GENERAL ASSUMOTIATION

PERIDE MON 1 MON 2 MON 3 MON 4 MON 5 MON 6

CURRENT 0% 0% 0% 0% 0% 0%
INTERST
RATE
LONG 0% 0% 0% 0% 0% 0%
INTERST
RATE
TAX RATE 2% 2% 2% 2% 2% 2%

8. PRO FORMA PROFIT AND LOSS

PERID Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6

Sales 78,000 156,000 234,000 312,000 420,000 504,000

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 Direct cost58,000 115,500 173,000 187,300 201,600 259,100
of seles
Gross 20,000 40,500 61,000 124,700 218,400 244,900
margin

Gross
margin%

Expenses Mon 1 Mon 2 Mon 3 Mon 4 Mon 5 Mon 6

Pay roll 5,100 8,900 15,200 21,500 27,800 34,100

Sales and58,000 115,500 173,000 187,300 201,600 259,100

other
expenses
Total 63,100 124,400 188,200 208,800 229,400 293,200
operation
cost
Net profit 14,900 31,600 45,800 103,200 190,600 210,800

9.Cost’s

The majority of our enterprise cost are fixed asset those it minimizes the risk of
loss.

The cost of production for our enterprise are electric power, teff, water.
Different species rise and the like. Fixed cost of our enterprise are:

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Majority of our investment are in the area of this fixed assets this help when
liquidation is take place it cost as only depreciation cost. The variable costs our
enterprise are many in the qualitative but when it comes to monitory value of
they are little cost. Variable cost have a great infect we make stock for major
variable asset like teff.

9.1. Cost of production /month

No Cost’s Mon 1 Mon 2 Mon 3 Mon 5 Mon 5 Mon 6 Total

1 Teff 48000 96000 144,000 148,800 153,600 201,600 643200
2 Electric 6000 12,000 18,000 24,000 30,000 36,000 126,000
power
3 Water 3,000 6,000 9,000 12,000 15000 18,000 63,000
4 Spices 250 500 750 1000 1250 1500 4250
5 Salary 5100(1- 8900(2- 15200(4- 21500(6- 27800(8- 34100(10- 112,600
2) 3) 4) 5) 6) 7)
total 62,100 122,900 186,950 207,300 214,150 291,200 949,050

10. Fixed cost

No Types of product Quantity Price

1 Electric pan 4 -
2 Wood pan 4 -
3 Sefade 10 -
4 Glove/textail 4 -
5 Yenegera maecha 6 -

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 6 Water tank 5 -
7 Mazoria 5 -
8 Injera plastic 20 m -
9 Beratdest 4 -
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10.1. Variable cost’s

No Types of product Quantity Price

1 Teff -
2 Electric power 30 days
3 Reis -
4 Festal -
5 Wood -
6 Water expense -
7 Hand glove -
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11. Assumption used financial projection

1 annual working day 365

2 no. of shift 1

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3 working hour/shift 4 hour

5 production capacity /min0.625peses

6 production capacity /hour37peses

7 production capacity/day/baker150

8 production capacity/annual /baker54,750

9 Number of pan/metade 2

10 No baker 4

11 total production capacity /day1200

12 total production capacity/annua l438,000

13 electric expense 250

14 water expense 200

15Telephone expense /annual 9,125

16 price contingency /annual 10%

17 total production /kuntal750

18 product price 5

All what we are try to state in the above come to be used effective business
proposal for small business enterprises in the proposed area

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