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.

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.

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.

ONNYX:


Response to Question 2

There is no 'one strategy fits all' approach. You can design one strategy or you could use a combo.

I will however share one strategy with you. I would start with identifying a premium bread brand and introducing it in that neighborhood. Truth be told, Ikorodu like most other Lagos neighborhoods bearing a lot of residential load has a lot of neighbourhood bakeries with most of them struggling so hard to compete that variety and quality has been thrown out of the window. They now just now mix dough that fills the stomach without recourse to the variables of taste and texture. My goal would then be to service that segment the society that pays a premium to get higher quality bread. you will be amazed that people take bread from Ilupeju and distribute at Iyan Oba in Alimosho local government area while some people load thousands of loaves from Iba and sell in Awoyaya twice weekly.

Another option would be to service the lower cadre segment of the society who have a limited budget. This involves a lot of volume with very little margin per unit but with volumes that more than make up for the small margins. A case in point here is a particular bread brand that has a 100.00 (now 120.00) product that sells like crazy. That product is everywhere; V.I, Obalende, Ikeja, Agege, but I didnt see it in Ikorodu. Another very serious product is made i Ibadan and ships nationwide. Its inarguably the king of the market.

ONNYX:

So in considering to start small, we will have to define small in the context it is used here in this essay.

Small is quite a relative term, however for the purposes of commencement I will suggest that anybody who has between 20,000 and 200,000 as initial capital outlay will find these guidelines useful.

To even make it better, we will adopt a very gradual investment model that will enable you determine the viability of the business before committing to a major inflow as regards the business.

This approach which could be seen as only suitable for risk averse people is very adequate for new entrants into business. I personally adopt it for any investment that I wish to make. I refer to it as toe testing; a process that involves my testing the temperature friendliness of the water before taking a plunge.

The underlying implication here is that when money is involved, you have to thread a little careful and ensure that your initial investment capital is quite small in relation to your entire arsenal of saved funds.

barikay:
Hi

connkg:
@BlessedU
I suggest you reach out to him privately for his opinion of a good brand. You see, I spent time just thinking of a loaf (made in Ibadan) that gets to my side of Port Harcourt. I couldn't think of any.

BlessedU:


Thanks for your response, I agree with your view, sir. I have visited a few brands around, bought their loaves of bread but I didn't like the taste. Can you recommend any good brand I can start with here?