Student number: 2019329701

Student: Strydom. A
Individual assignment
EBUS 1614
28 April 2022

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Table of Contents

Question 1
1.1.1 Background description…………………………………………………….3
1.1.2 Motivations…………………………………………..................…………. 3
1.1.3 Challenges…………………………………………………………………..3
1.2 Evaluate the industry, product description and unique benefit………………………...…3
1.3 Conclusion……………………………………………………………………………………...4
1.4 My potential to become an entrepreneur……………………………………………………4

Question 2
2.1 Bases for segmentation……………………………………………………………………....5
2.2 Coca-Cola brand……………………………………………………………………………….5
2.3 Coca-Cola Distribution Channels…………………………………………………………….5
2.4 Identify Disturbances………………………………………………………………………….5
2.5 Identify type of advertisement………………………………………………………………..5

Reference List……………………………………………………………………………………6

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Question 1

1.1.1 Background description.

Tuisgebak Bakery was established in 1995 from the kitchen inside Mariena Haddad’s home.
What started as a small business venture with one recipe for traditional Buttermilk rusks
being baked and sold directly from her kitchen turned into the established household brand
available in Pick n Pay countrywide – Tuisgebak. The woman behind it all is Mariena
Haddad, 54 year old female entrepreneur. Haddad is currently living in and operating
Tuisgebak Bakery from Reddersburg in the Free State. Before starting Tuisgebak Bakery,
Mariena previously owned a butchery as well as a liquor store with her husband, Errol
Haddad. Mariena was actively involved in both of these businesses and she admits that she
learned valuable business lessons by having to do the stock takes, knowing how to balance
the books and dealing with difficult customers.

1.1.2 Motivations.

The motivation behind starting Tuisgebak Bakery was clear – financial stability. Mariena
wanted to venture into a business that would pay their bills as her husband decided to
become a full-time farmer. Farming is a very uncertain job when it comes down to financial
security and Mariena wanted to start something that would be able to cover their fixed
monthly expenses without requiring a massive start-up cost. She had developed the recipe
for the Buttermilk rusks which would become the first product Tuisgebak Bakery sold.
Mariena saw the opportunity to bake and sell the rusks, knowing she has access to the
necessary resources, including business knowledge, time, skills and equipment to bake,
advertise and sell the rusks.

1.1.3 Challenges

Once Mariena realized that she could not keep up with orders, she knew that she would
need to invest in kitchen equipment that would aid Tuisgebak Bakery in producing a much
higher quantity of rusks per day. The problem she faced was that these expenses were not
cheap and Mariena could not accurately estimate the amount of rusks that would have to be
sold in order to cover the costs of an industrial oven that could bake and dry rusks quicker,
industrial mixers and other equipment as the Bakery’s turnover varied each month. Pick ‘n
Pay offered Tuisgebak Bakery a contract and the opportunity to sell Tuisgebak rusks in Pick
‘n Pay. Knowing that Tuisgebak had to supply at least 3 tons of rusks monthly to Pick ‘n Pay,
Mariena was financially able to hire the necessary equipment. Today Tuisgebak Bakery
produces 5000kg rusks every week.

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1.2 Evaluate the market/industry, product/service description and unique benefit

Tuisgebak Bakery has a range of various rusks that they are currently producing, including
Buttermilk, Nutty Wheat and Diabetic rusks. The unique benefit of Tuisgebak Bakery’s rusks
are the fact that it caters to the needs of a very big and diverse group of consumers. It
covers the needs of consumers that may want something quick and easy to eat for
breakfast, consumers wanting an easy on-the-go snack, guesthouses buying rusks to put
inside guestrooms. Tuisgebak Bakery’s sales increased during lockdown as consumers
wanted something that does not require preparation, filling and cost-effective for
breakfast.(Haddad, M)

1.3 Conclusion

Mariena’s ability to identify new opportunities as they arise are a massive contribution to the
success of the business. Tuisgebak caters to a diverse group of consumers, even diabetics.
The strict protocol Tuisgebak follows ensures top tier product specification resulting in
consumers getting the same tasting, textured, size rusks every single time. Their excellent
customer service and customer relations also add to the success of this business. The
entrepreneurial qualities of Mariena Haddad and her strong work ethic is what got the
business the contracts with Pick ‘n Pay and should not go unmentioned. The only
improvement I would recommend for Tuisgebak Bakery is to consider selling rusks in even
smaller packets or even packaging individually wrapped rusks that can be packed for snacks
or lunch. The smaller packets would also give consumers that have not yet tried Tuisgebak’s
rusks the opportunity to buy a small quantity to taste-test as consumers may not want to buy
a large packet of rusks if they do not know whether they like the taste. With the smaller
packets consumers will not feel that it is a big “risk” to buy it should they not enjoy the rusks
as they do not have that much to lose.

1.4 My potential to become an entrepreneur.

One of the things I have learned during this interview is that starting a business does not
necessarily require a complete new concept/product/idea. Most businesses started as an
entrepreneur took an existing concept that had proven its success, changed/improved the
concept to fit the idea the entrepreneur wishes to achieve. Another lesson I learned is that
should I wish to be a successful entrepreneur, I will have to be involved in all of the aspects
and have knowledge of what is happening within the business

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Question 2

2.1 Identify three bases for segmenting the consumer market that is used by
Coca-cola.

Demographic segmentation is dividing the market into subgroups with similar age, religion,
income. Coca-Cola does this by using OASIS to target 20-30 year olds. Geographic
segmentation is where the consumers you wish to attract lives.(Woodriff,2019) In which
country,state, metro city/ urban city. Coca-Cola is an American based brand but targets
consumers worldwide as it is one of the most famous brands known. Lifestyle and
psycographic segmentation includes their habits, personality, beliefs, values and attitudes.
Coca-Cola targets groups with healthier lifestyles by selling Diet Coke.

2.2 What type of brand is Coca cola?

Coca-Cola is a total beverage company.

2.3 . Draw the channels of distribution used by Coca cola.

COCA- BOTTLERS
COLA RETAILERS
CONSUMERS

2.4 Name and explain the type of disturbance in the picture below?

2.4.1 Competitive disturbance: This type of disturbance occurs when two similar
products or services that are competition to each other are advertised. In this case
Coca-Cola and Pepsi are both being advertised with both providing similar products.

2.4.2 External disturbance: This type of disturbance occurs when there is a physical
barrier/disturbance that negatively influences the other person’s ability to receive a
message correctly, In this picture there is a person in the middle of the other two,
resulting in the man raising his voice and the distance between them can cause that
the woman does not receive the correct message he is trying to give to her

2.5 What type of advertising is used by BMW in the below picture ? Competitive
advertising.

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Reference list

1. Haddad, M. (2022) ‘Interview with an entrepreneur’. Interviewed by Anja Strydom, 19

April.
2. Woodriff, J., 2019. Bakery Industry Analysis. [online] Small Business - Chron.com.
Available at: <https://smallbusiness.chron.com/bakery-industry-analysis-64831.html>
[Accessed 14 April 2022].

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