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Interview with Margaret Osiemo, Founder, White Dezert: Nairobi based Yoghurt Producer
Date Published: Thursday December 03, 2009
In July 2009, Nairobi-based start up White Dezert launched White Dezert yoghurt in four fruit flavors. The product, described as a smooth, creamy eating yoghurt with a thick consistency processed using natural ingredients, is available in convenient and grocery stores locally, including Uchumi Hyper, MyShop at OilLibya, Muthaiga Mini Market, Spring Valley Supermarket and Dolly Patisseries in the Nairobi area. Launching a new product in Kenya can be problematic for a start-up. Especially in the dairy category, because the product's need for refrigeration makes it more expensive to ship and sell. Further, start-ups face a major challenge breaking into the crowded dairy case from those products with name recognition. Nairobist caught up with Margaret Osiemo, the founder of White Dezert, to learn more about White Dezert, the inspiration behind their products and her perspective on launching a new product in this complex environment.
Entrepreneur Margaret Osiemo has set out to bring White Dezert to the masses.
Tell us about WHITE DEZERT? What is it? How long have you been in operation?
White Dezert Ltd is a family owned business and is a yoghurt processing company that has been in operation for 5 months. White Dezert is a smooth, creamy eating yoghurt with a thick consistency processed using natural ingredients and flavours.
What was the inspiration behind White Dezert? Why the name - White Dezert?
The inspiration for White Dezert was borne out of my last job in a multi-national organization during which time I went through the motions of developing a product from scratch, a truly exciting and rewarding experience though not without its challenges. Having seen an opportunity in the health area with the growing consciousness of consumers in what they feed their bodies with and my personal experience as a mother trying to make healthy food choices for my family, I saw an opportunity in yoghurt, a culture gaining some good ground in the Kenyan market.
The beauty about it is that it is a product that can be consumed for breakfast, as a snack or as a dessert. It is also nutritious, tastes good meaning you end up balancing your children's need for a tasty product and a parents' desire to give their children something nutritious.
The name was borne out of a brainstorm session with my children as I drove them to school at which time we all came up with several names which my children tested with their schoolmates. The name was a winner from the children perspective and it embodied the nature of the product which is white in colour and is consumed as a dessert (corrupted as Dezert). On further retrospection, the name appealed emotionally to me because when I opted to resign, I was going out into a 'dezert' (out of a comfort zone), a clean new start which I purposed to turn it into an 'oasis'.
How did you acquire the initial capital for the business? Any challenges?
Given that it is a family business, the initial capital was from family savings. The saying that in business capital is king rings true for me because in the stage of establishing a brand, one needs to inject a lot of cash to reap the rewards in the future and one requires to be ready for this.
What type of licensing requirements did you have to go through in order to start your business?
The legal requirements for setting up a business in Kenya are quite a number. You firstly have to obtain a Certificate of Incorporation, PIN/VAT certificate, Business permit from City Council. Given that we are in the food industry there are other certificates required such as the Food and Chemical Substance certificate, health certificates for all production staff. In addition to this we were required to obtain a Cottage license from the Kenya Dairy Board and a Fire prevention certificate from the City Council.
When you first started your business, did you have a business plan? Do you have one now?
We spent some time developing the business plan as it was basically our road map. The business plan contained our mission, vision and strategic goals and outlined details of our implementation strategy, key customers as well as target volumes. This was so essential as we use it to this day to measure if we are on the way to achieving our objectives. It is our working document and forms the basis of induction to the employees so as to keep them aligned with where we want to take the organization.
What are the various varieties of Yoghurt you produce? How did you decide on the different flavors?
White Dezert comes in 4 fruit blend flavours, i.e. 1) Citrus Blend: contains mango, orange and tangerine, 2) Pineapple/Passion, 3) Forest Fruit: contains strawberry, blackberry, blueberry and raspberry fruit and 4) Strawberry/Vanilla: contains strawberry fruit flavoured with vanilla. To complement these flavours, we also process vanilla and strawberry flavoured yoghurt using natural flavours for those who do not like fruit in their yoghurt as well as plain yoghurt. White Dezert is available in 100ml and 150ml cups.
What makes White Dezert unique?? What is your selling point?
White Dezert is smooth and creamy made with natural ingredients. White Dezert brings in new flavours not available in the market and it comes in fruit blends as opposed to single fruits hence giving it a unique taste profile. It has live cultures which are the friendly bacteria that give yoghurt its unique taste and also promote the digestion process.
Where do you source your ingredients from? Where do you produce your products?
The bulk of the raw materials are sourced locally and with stringent standards dictated to the suppliers as quality is a high priority for us especially because yoghurt is an extremely sensitive product. For instance the milk we receive undergoes several tests in our lab before we accept it from the suppliers. Some of these tests include checking the temperature which will let one know if the milk was stored well, lactometer test to check density of milk which tells how many solids are in the milk - the greater the density the better, alcohol qualitative test to check acidity of the milk, clot on boiling - to verify the quality of milk, and a host of other tests. In addition to this, we ensure the quality of the ingredients by sourcing from reputable firms. The fruit is however sourced from South Africa.
The product is processed at our plant in Industrial Area.
Who are your target clientele? Who are the majority of your clientele?
Our target clientele are the health conscious consumers. During snack time, whether at home or in the office or school, one would ideally prefer a healthy snack which White Dezert offers. It can additionally be consumed as healthy dessert for those who care about what they feed their bodies with.
Where can your products be bought? Is there a Delivery option?
White Dezert is available in all the Oilibya 'My Shop' i.e at Belle Vue, Westlands, Parklands, Waiyaki Way, Bomas, Ngong Rd, Lusaka, Uchumi Hyper Supermarkets i.e at Sarit Centre, Capital Centre, Langata and Ngong Rd, Muthaiga Mini Market, Springvalley Supermarket and Dolly Patisseries.
Additionally we offer delivery services to office blocks if a group of colleagues can come together to order take home packs of at least 10 trays (1 tray contains 12 pieces).
So far what channels are you utilizing to market your products?
We have mostly used our networks to market the product and have a host of sampling activities scheduled for the month of December. PR is also one of the tools we are using to market ourselves.
What have been some of your experiences so far with entry into a market that already has various major players within it?
We live in a competitive world and it is good because it raises the bar on quality and a horde of other things. Initially there is skepticism from consumers who are loyalists of other brands but the experience is that when they taste White Dezert, majority are pleasantly surprised. We have actually succeeded to shift some consumers' loyalty and introduce some consumers into the yoghurt taking culture. This cannot be taken for granted and our commitment is to our consumers.
Do you find networking and talking to fellow business owners helpful to your growth?
Networking with other business owners has been extremely helpful as through this I have appreciated that business face more or less the same challenges and through these forums one is able to learn how the different business are addressing the challenges.
ABOUT MARGARET OSIEMO
Tell us about yourself? Personal background?
I am a second born in a family of 6 children, wife and mother of two girls, aged 11 and 7 years old. I am Managing Director of White Dezert Ltd. I am also a member of OWIT which is a non-profit organization for women business entrepreneurs designed to promote the advancement of women in trade and business.
What is your educational and professional background?
I am a holder of a BA in economics and Sociology and currently completing my MBA with ESAMI.
What did you do before establishing White Dezert?
I was previously employed in a multi-national organization where I worked for 10 years with my last role being the Strategic Marketing Manager for New Brands.
As the Managing Director of White Dezert what is your role within the company?
I oversee the operations of the business on a daily basis as well as developing the long term strategic plan of the company
What is the most challenging part of your job?
The most challenging part of my job currently is penetrating the market. Having a good product is not enough. The realization is that even though your prospective customers acknowledge that the product is good, corruption is so ingrained in society such that you have to let go of some business to remain an ethical business.
What is the most fulfilling part of your job?
There is nothing that can match the joy of seeing a fulfilled consumer. I recall calling one of my customers who told me that they were coincidentally talking about White Dezert with a consumer who was commenting that it was one of the best yoghurts they had ever tasted. It was truly a very rewarding experience.
Any last words or advice for our readers?
Determination, patience, the right attitude and persistence are key in business. The future of this country depends on the SME sector and we have got to build Kenya for Kenya. Let us encourage each other.
Contact Info
White Dezert Limited
P.O Box 24138 - 00502, Nairobi Kenya
Tel: +254 (0) 20 804 4950, 251 9675
Email: info@whitedezert.com
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