FEASIBILITY REPORT ON BAKERY AND CONFECTIONERY

TABLE OF CONTENTS

    PAGES

Cover Page ……………………………………………………….   1

Table of Contents ………………………………………………   2

1.1   Introduction ………………………………………………   3     

1.2   Crucial Factors And Steps In Decision Making

Investment ………………………………………………     3

2.0   Project Profile…………………………………………….    5

2.1   Project Brief………………………………………………    5

2.2   Project Capacity And Rationale……………………...   6

3.0      Project Investment………………………………………    7

4.0   Proposed Product Mix………………………………….    7

5.0   Financial Summary……………………………………..   8

6.0   Proposed Location……………………………………….   8

7.0   Market Entry Timing……………………………………   9

8.0   Key Success Factors…………………………………….   9

9.0   Strategic Recommendations…………………………..   9

9.1   Marketing …………………………………………………   9

9.2   Pricing …………………………………………………….    10   

1.1   INTRODUCTION

The objective of feasibility report is primarily to facilitate potential entrepreneurs in project identification for investment. The project pre-feasibility may form the basis of all important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, production, marketing, finance and business management. The document also provides sectoral information, brief on government policies and international Scenario, which have some bearing On the project itself.

This particular feasibility is regarding “Bakery and Confectionery". Before studying the whole document one must consider following critical aspects, which form the basis of' tiny investment decision.

1.2   CRUCIAL FACTORS AND STEPS IN DECISION MAKING INVESTMENT

Before making any investment decision, it is advisable to evaluate, the associated risk factor, by, taking ink, Consideration certain key elements- For starting a Bakery and Confectionery critical factors that should be considered before the launch of the project are described below:

v    Number of customers to the Bakery and Confectionery will determine the final-16al success of the project. The entrepreneur should analyze the minimum percentage of population that it will have to mobilize out of the total population to achieve a steady flow of customers to the Bakery and Confectionery. In order to do this, the entrepreneur should analyze existing competing Bakery and Confectionary businesses in the target city.

v    Looking at the size of investment and potential Bakery and Confectionery, it is advised that the facility be set tip in those cities of the country that have a population to cover the proposed production of this business.

v    Selection of right location for an outlet is an important factor in the popularity of any fakery and Confectionery. Initially 2 outlets are planned and in future new outlets will be added so as to capture the desired targeted Population. In such a case it is recommended to study in detail the market situation, consumer behaviors and growing trends of Bakery and Confectionery items. Middle class and lower middle class areas are hot sale points. It is a general observation in Nigeria that every celebration is accompanied with sweets and cakes. It is recommended that the final selection of products should he inline with the targeted market segment and should have a balance of the various traditional and cultural items, introduction of new categories of sweets along with various varieties of cakes and general items are advisable. It is also suggested to introduce a new variety of cakes every month declaring it cake of the month.

v    In addition to above stated products, provision of other general items for the customer, also plays a major role in the popularity of the Bakery and Confectionery. General items include drinks, eggs, chocolates, candies, jams, jellies, ice creams and related products. For every Bakery and Confectionery general items play a vital role in sales revenue. Adequate provision for a sitting area is also advisable

Once an entrepreneur has decided to go ahead with the project, a systematic approach to implementing the project is recommended.

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