Target Market

The global cassava market is estimated at:  USD 237bn (info@marketresearchfuture.com). Tanzania local market for cassava is estimated at: Total Available Market (USD 4 Billion); Service Available Market (USD 1 Billion); Service Obtainable Market (USD 2 Million). [This has been calculated based on cassava sales in the year 2021]. Tanzanian local market demand for cassava ranges from 530,000 tons to 640,000 tons of cassava tubers/per year (https://www.tanzaniainvest.com/cassava) while the average annual production is 8.2 million tons (Cassava Development Strategy,2020-2030).

Competitors

Our key competitors in Tanzania are:
  • Mennonite Economic Devevelopment Associates (MEDA) Tanzania: focuses only on increasing cassava productivity through promoting smallholder famers’ access to  cassava quality seeds
  • Cassava Adding Value for Africa (C:AVA) Tanzania: focuses only on supporting smallholder farmers to engage in value addition to cassava through cassava processing.
  • Cassava Starch of Tanzania Cooperation (CSTC): is the largest producer of cassava flour in Tanzania that competes with EGGFE in all fronts since it focuses on quality cassava farming and processing. However, it does not focus  on agroforestry.
  • Local Cassava Milling Companies focus only on cassava processing.

Our unique selling points compared to competitors are characterized by: Promoting an integrated cassava value chain approach that takes into account the linkages between cassava productivity, marketability and intergration of agroforestry into cassava value chain. (No Competitors are taking the same integrated approach). We are supporting SHFs with Cassava Quality Seeds. Sourcing cassava from trained smallholder farmers. Processing,  packaging and selling high-quality cassava flour to target customers. Usability: 95% of 350 customers have provided feedback that  they will continue  using our product because. 95% of 350 customers surveyed (May 2022) said that they will continue using our product because of its affordable price ($ 0.52 per kg); its good taste, good packaging and long shelf life (9-12  months).

Marketing and Sales Strategy

The strategies and channel that we commonly use to market our product and reach our target customers include: Telephone calls, google meet and/or zoom link for virtual meetings to share market information with target customers. Distributing flyers/leaflets about our product and its health benefits and industrial uses in strategic locations. Advertising our product via television, community radio and newspapers/newsletters. Engaging in word of mouth, trade shows and use of sales agents and distributors in all regions in Tanzania. Also, we carrying out a market survey and customer discovery study to identify the needs of customers.  Our newly developed sales and marketing strategy requires to move beyond these strategies to modern marketing tools such as advertisement through website and social media platforms (such as Twitter, Facebook, Instagram). We estimate to spend between 2% and 5% of our sales revenue on marketing our product through social media to be able to reach 10,000 customers by 2025.  We sell our product to businesses and end-user customers that include: individual consumers, supermarkets, mini-supermarkets, small shops, hotels and restaurants. The customers   are paying for cassava flour through direct sales, retail and wholesale payment.  Credit payment terms for Supermarkets (30 days); Min super-markets (20 days); Small shops (20 days); Hotels (10 days), and Restaurants (10 days).  Contribution by revenue streams is Supermarkets (10%); Min super-markets (10%); Small shops (20%); Hotels (30%), and Restaurants (30 %) as indicated below:

In addition, the company practices circular product design criteria that requires us to design products that are lighter than comparable products on the market since lighter products usually require less material and need less energy to transport. We are designing parking materials/ sacks that use less / small quantities of cassava flour per parking sack. We design cassava flour parking material that weighs 5 kgs (instead of 25 kgs). This requires less energy for transport, especially when children are involved in purchasing and transporting cassava flour to their homes. Furthermore, the company informed by circular product design criteria is manufacturing high quality cassava flour for multiple functions/ uses. As part of its marketing strategy, the company educates the target customers on the multiple uses of cassava flour that include: food uses, medicine uses and industrial uses. Food uses include: Making pottage, porridge, bread, biscuits, burns, and cakes. Medicinal uses include: Stabilizing blood pressure and blood sugar/Diabetes; Refreshment for tiredness; Rehydration to people with diarrhea, sepsis and vomiting, labor to women when giving birth; Industrial uses include: Making starch, adhesives/glue/gum, alcohol, ethanol, biofuels, tyres, and sweetener. Also, cassava flour is gluten-free and particularly rich in vitamin C, an important vitamin that acts as an antioxidant, supports collagen production and enhances body immunity among other nutritional benefits. Also, cassava flour is high in vital minerals such as Copper and Zink, which are extremely important in human bone health. Also, the company produces high quality cassava flour which is durable, long lasting/shelf-hold life (9 -12 months) than comparable cassava flour from local varieties of cassava (3 months) because it is obtained from certified varieties of cassava.

We sell our product to businesses and end-user customers that include: individual consumers, supermarkets, mini-supermarkets, small shops, hotels and restaurants. The customers are paying for cassava flour through direct sales, retail and wholesale payment.