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The Founders of Zang Chocolate Are Fun, Feisty and Serious About Growth

Bringing a new product to the FMCG market is tough. You need the right product, partners and mindset. Here’s how the founders of Zang are getting it right.

Nadine Todd

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VITAL STATS

  • Players: Jethro Braun and Brett Horwitz
  • Company: Zang Chocolate
  • Launched: 2015
  • Visit:  www.zangchocolate.com

1Find the right product

Friends and part-time entrepreneurs since varsity, chocolate wasn’t the initial grand plan for Brett and Jethro. “We started a printing business together while we were still at UCT,” says Brett. “We even had a few good clients, including Truworths and Hello Kitty, but it was a saturated market, and we realised we didn’t have a passion for it.”

Neither of them was a chocoholic either, so how did the idea for Zang develop? “We were exposed to an international caffeinated chocolate brand,” explains Jethro. “We really took to the idea. We didn’t look at it as a new chocolate that we wanted to bring to the market, but as an exciting new energy product. We’re a caffeine and energy company, delivered in a chocolate and not a drink.”

In fact, in chocolate form the caffeine has a slow release, and the cocoa fat means it’s a consistent release. “One small chocolate has the equivalent of half a cup of coffee’s worth of caffeine,” adds Jethro.

“We’d found something that we were excited about, and that we really believed the market would get behind as well.” It was time to find partners.

Related: How Do You Hit The Right Target Market For Your Business?

2Find a great partner

zang-chocolate

Zang’s success is based on a number of important partnerships that Brett and Jethro have developed. First, the entrepreneurs needed a chocolatier to help them produce the product.

“We spent eight months searching for the right chocolatier,” says Jethro. “We kept reaching out to companies and they’d say, ‘no, we can’t do what you want’.” Eventually, they found Cocoa Fair, an entrepreneurial chocolatier in Cape Town.

“They were interested in the idea and willing to work with us to develop it,” explains Brett. “We spent months working on the right recipe and developing the process of combining chocolate and caffeine.

“We went there after hours, working together and mixing batch after batch of chocolate.”

 

For help with developing your business plan, download our free template here.

Work together to create something new

Today, Cocoa Fair is the sole supplier of Zang, and the successful partnership is based on the fact that two entrepreneurial businesses were willing to work together to create something new and exciting.

Product in hand, Jethro and Brett now needed to find an investor.

“FMCG products are extremely expensive to launch; you can’t bootstrap this kind of business if you want to target mainstream retail.”

Armed with research and a great pitch, the partners attracted the attention of Ian and Garth Solomon from Evolve Capital, but they wouldn’t commit to an investment until they’d run the idea past a friend, Grant Rushmere, the founder of Bos Ice Tea. “Ian wanted to hear whether Grant thought the product would find a market in South Africa,” explains Brett.

In fact, not only would Grant love the idea, but he wanted to partner with the start-up as well. “Grant had been working on a brand for a relaxation drink. He had the concept design, branding and name developed, but he thought our chocolate was a better fit for it than the relaxation drink he had been working on.”

The young entrepreneurs jumped on the idea. Not only were they receiving capital from Evolve, but an industry expert whose advice would be invaluable, not to mention the brand that he had developed. And so Zang caffeinated chocolate was born.

Partner for success

Finally, the partners contacted Pick n Pay’s incubation programme, which supports entrepreneurial businesses, and were placed on the national retailer’s listings for head office and family-owned stores.

“Without these partners our business wouldn’t be where it is today,” says Jethro.

“Developing good relationships is key to success, but you need to find the right people with whom you can work and share a vision.”

Related: 5 Ways To Market Your Business On A Limited Budget

3Get noticed

zang-wrestlers

Zang had a soft launch at the end of 2014, with Jethro securing shelf and counter space in a few coffee shops, delis and forecourts in Cape Town. “We were looking specifically for places where we would be the only product on the counter or at the till, so that we’d get noticed,” says Jethro.

“You want people to feel like they’re seeing you everywhere. Bold packaging helps this, and so does placement.”

By April 2015, the business was ready for its official launch. “We needed to make a splash,” says Jethro. “Something that would get people talking.”

The activation was staged on First Thursday, and was based on massive nacho libre wrestlers giving people ‘pick me ups’ as the world’s first human taxi service. “We videoed it and put it on YouTube, but we received incredible local and international media coverage as well. It was fun, different and people wanted to talk about it and share it — the fact that we’d managed to come up with a concept that was a ‘world first’ meant we received international attention as well.”

At the final tally, R100 000 was spent on the activation, resulting in R300 000 worth of earned media. “Because it was editorial coverage, the earned media can be doubled as well,” says Brett. “That activation was worth R600 000.”

Keep convincing stores to stock you

And it did its job. People started talking about Zang. “Consumers wanted to try us, but more importantly, store buyers had heard of us,” says Jethro. “Even though we had a Pick n Pay listing, you still have to convince individual stores to stock you. For garage forecourts that can buy outside of head office listings, this makes even more of a difference.”

The business is being strategic about its messaging though. “Successful branding offers a simple but powerful message, and then builds on it,” explains Jethro. “First, we wanted to develop the idea that we were a Cape Town-based company, and the new kids on the block.

Develop a key differentiator

“Next was our key differentiator: We’re caffeinated chocolate. Once that message is entrenched, we can start working on the health benefits that we offer. We’re made from 100% cocoa butter, and therefore contain no palm oil.

“You need to build that brand message slowly; there’s no rush. You want people to understand and embrace your brand and message, and for that, you can’t bombard them with too much information at once.”

Related: 4 Keys To Boosting Your Growth Rate In 2017

4Focus on cash flow

Cash flow is essential for both start-ups and established businesses. “It’s a balancing act,” explains Brett.

“Too much cash sitting in stock is dangerous. You need cash flow, and you want to maintain shelf life and freshness.”

As a result, the business works on an inventory system that makes more frequent orders to avoid sitting on stock. “Cocoa Fair is also an entrepreneurial business that needs cash flow, so they want COD terms, but they’ve given us a favourable rate in exchange.”

Are you looking for business funding? Look through our funding and resources guide for young entrepreneurs here.

5Build your market

zang-chocolate-box

Even though Zang is on Pick n Pay’s main listing for head office and family-owned stores through the retailer’s incubator programme, Brett and Jethro don’t want to grow too quickly. “We don’t want to move too fast,” explains Brett.

“We need to learn the ‘Pick n Pay’ way and build a strong foundation before we grow further. Currently we’re on 600 listings. The system puts you on SAP, orders come through and you need to be able to deliver on them. If you don’t, you get a negative strike rating. That’s how products disappear off shelves and don’t get ordered again.”

“You need to be ready,” adds Jethro. “They opened us up to a large amount of stores. We listed with Pick n Pay and 300 orders for 300 stores came through. You need to make sure you’re ready for that kind of volume.”

“You can really damage your business and your brand if you get a listing, and orders come through, and you aren’t ready for it, either from a cash flow perspective, or because you can’t fill the order,” says Brett.

“The most important thing right now isn’t to grow our listings, but focus on the ones that we have. We need to saturate those listings, and then grow. We need to get our merchandising correct, and grow our base so that we can produce more to fill bigger orders — without damaging our cash flow. We’re in this for the long haul, and that takes strong foundations.”

Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.

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Branding

Brand And Marketing: Finding The Balance For SMEs

For some entrepreneurs, this can be quite a sobering thing to do whilst for others it reinforces that they are on the right path to success.

Gary Harwood

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Being in business is about more than just hitting the bottom line. Sure, financial growth is imperative to continued success. But if nobody knows about you, then your achievements will be limited to the short-term. Enter the world of brand and marketing.

To the uninitiated, these concepts might seem interrelated. And to a certain extent they are. However, branding revolves around delivering on a promise, it is what defines you as an SME and what makes you different from your competitors.

Marketing is about how you do it – your tactics and your strategic goals. It is about promoting a product or service to sell and earn revenue.

Both are equally important, and no entrepreneur can afford to ignore one in favour of the other. But how do you balance a limited budget and resources to finding the right balance? In some ways, it is best to take a step back and view your business from the perspective of your customers.

Related: The Secret Ingredients to a Successful Branding Strategy

For some entrepreneurs, this can be quite a sobering thing to do whilst for others it reinforces that they are on the right path to success.

Emotional versus rationale

Cynics might argue that branding is all about emotions while marketing is a more rationale (and logical) pursuit. After all, how do you ‘know’ your customer? How do you analyse the effectiveness of your brand promise?

It might be an easy thing for large organisations to measure, but for a business just starting out, it is quite a challenging prospect. Given how data has exploded in recent years, organisations have a wealth of information at their disposal to analyse, scrutinise, and draw insight from in getting to grips with the effectiveness of their brand promise.

And while this might seem daunting for your SME, it does not have to be the case. While there are more than enough models to measure brand equity, most are challenging (not to mention costly) to implement and they all require extensive research.

Fortunately, things like internal staff surveys (questions like what do your employees think your brand identity and promise is), how integrated your brand and marketing efforts are (do your tactics reflect what you want to achieve), and how you compare to the competitors, can be reviewed relatively quickly and cost effectively.

Related: The Economics of Branding

The business of marketing

Marketing can add a dynamic component to this mix. By focusing on the tactical elements of how to achieve business growth (specific to your brand promise), the SME can develop a more nuanced strategy that factors in both emotional and rationale elements.

We all want to make money but that hardly has the makings of a solid marketing strategy. In fact, marketing is less about flashiness and more about implementing solid business principles.

Sure, the sexiness comes in some of the tactical executions but it all revolves around delivering value to shareholders, marketing to the strengths of your business, and setting yourself apart from your competitors.

A successful marketing campaign revolves around bringing customers to your business. And this is where the brand promise is so important. You must understand what the customer requirements are if you are to deliver tactics that fulfil them.

Business today requires branding and marketing to work together. By compromising the one in favour of the other will not result in any significant long-term gains but risk your SME losing ground to competitors.

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5 Steps To Building Your Personal Brand From Scratch

Whenever you engage, shine a light on your values.

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What would you like people to say about you?

As Jeff Bezos (founder of Amazon) famously said, “Your brand is what people say about you when you’re not in the room.”

Your personal brand is the sum total of what you do, how you do it and why you do it. It’s not something you can fake. It’s authentic and deep-seated.

If you get it right, your personal brand will make you stand out from the crowd, shine a spotlight on your expertise and enhance your value. You’ll have an energy and a buzz about you that people can’t help being drawn to.

So how can you build your personal brand?

For starters, don’t make the mistake of thinking your personal brand is all about you. It’s not. Your personal brand is not about your work experience or your personal accomplishments. Your personal brand should be about other people, specifically what you can do for other people.

Start by asking yourself a few questions: What needs can you address? What are the areas where you can offer the most value? What makes you different from the rest?

Related: 6 Personal Branding Rules To Being Popular And Profitable

With a little thought and planning, you can build your personal brand from scratch. Just follow these five steps:

1Discover your opportunity

Passion is not enough. You might have a passion for rock climbing, or playing the ukulele. But having a passion does not automatically translate to recognition and success.

Instead of focussing on your passions, study the needs of the people in your circles. What are they trying to achieve? What are they struggling with? What are their frustrations?

Think about how you could best help these people.

Dig deep into who you are. Identify what you can bring to the table. Evaluate not just the skills and experience you’ve acquired but also the values that guide and inform you.

Study your competition. Can you serve a need that in an area that doesn’t have lots of competition?

If there’s lots of competition wherever you look, don’t be discouraged. Can you serve a need in a way that’s distinctive and noteworthy?

You’ve identified your opportunity when you’ve found a significant need that you can serve, in a way that sets you apart from the competition.

2Know your audience

personal-audience

Everything starts with your audience. Find out as much as you can about them. This includes standard demographic data such as what jobs they do, how much they earn and where they live.

Equally, if not more importantly, you need to know what their beliefs and values are, their hopes and dreams and the challenges they are facing.

Talk to your audience. Take them out for a coffee or set up a Skype call. Study them by reading what they’re saying on relevant social media, forums and review sites.

Is your audience more interested in quality or value? What’s more important to them, making a difference or making money? What public figures do they admire?

How much do your audience know about what you can offer them? Will you need to educate them for them to appreciate your value?

Identify who your core audience is. Don’t try to appeal to everyone. Identify which audience segments are most likely to become long-term customers and advocates. These are the people you should focus on.

Related: Personal Branding Pitfalls Women Should Avoid

3Craft your message

In Hollywood, budding filmmakers learn to prepare an “elevator pitch” to sell their movie ideas to busy studio executives. The key is to summarize their idea in a short, memorable phrase that could be pitched even if they had to do it in an elevator.

For example, the movie Alien was initially pitched as, “Jaws in space.”

You want to tell your audience about what you do, about what makes you different and exciting. But they probably won’t have time to listen to your life story.

Instead, you should create a short message that sums up what you’re about in a way which connects with your audience. Keep it simple and memorable. Think of it as your elevator pitch. Your message should reflect the people you serve, the values that you embody and the results you achieve.

If you have any testimonials, study them. What were the things about you that people valued the most? Observe the exact phrases people use when talking about you. Often, these are the precisely the phrases you should use when describing yourself.

Use your message to brand yourself on your professional profiles. Most importantly, embody it in everything you do.

4Hone your uniqueness

Maybe you can do something highly useful that very few people can do. Well, that’s your unique quality, and you should tell your audience about it.

But perhaps there are plenty of people who do what you do, and you’ll be competing for the same audience. Being able to demonstrate a point of uniqueness is your key to success in a competitive market.

The most obvious point of uniqueness is to be the best. There are many ways of being the best. Find out which way plays to your strengths. Are you the most experienced, most creative, most efficient? Do you excel at customer service?

Related: [PODCAST]: Listen To Rich Mullholland Share Tips On Building Your Personal Brand

If you can’t be the best in some way, becoming more specialised can make you unique. For example, instead of offering a marketing service to small business owners in general, you could offer a marketing service targeted at chiropractors.

And don’t be afraid to be controversial to stand out. If you hold different opinions from the others, don’t be afraid to voice them. Just stay away from topics that are likely to cause offense, like religion and politics.

5Define your values

Authenticity is the cornerstone of personal branding. Your authenticity is what allows your audience to trust you, to engage with you, to tell their friends about you. Being authentic is about having stated values and being true to them.

So what are your values? You should include business values, such as driving innovation or personal accountability. You might also add ethical values, such as care for the environment.

How you speak and write is also a reflection of your values. Are you serious or informal? Do you address the layman or expert? What are your cultural reference points?

Guard against inconsistency, such as saying one thing and doing another, as this will cast doubt on your values and undermine your brand.

Keep your values at the heart of everything you do, as you interact with people, network on social media, or publish blog posts. Wherever and whenever you engage, ensure you do so in a way that shines a light on your values.

This article was originally posted here on Entrepreneur.com.

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Wrapping Up Profits With Niche Vinyl Wraps

Marketers always want to grab consumers’ attention while business owners may want to differentiate their company’s fleet.

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Marketers always want to grab consumers’ attention while business owners may want to differentiate their company’s fleet.

Cars are used as form of self-expression, and some individuals will pay a small fortune to make their wheels unique. All of this can be achieved with speciality vinyls, which allow a range of attention-grabbing special effects.

Robbie Fuchs from World Signs said that these unique effects are sought after and that matte black finishes are popular, and are being used in some campaigns to tone down shiny chrome.

Popular requests include partial wraps for select sections of cars, such as: mirrors, stripes on the sides of vehicles, bonnets and high gloss black vinyl on roofs, which gives a panoramic look and feel.

‘There are a handful of people who will spend a lot of money on a car and then spend more money on making it look fancy,’ he says.

Related: Celebrating Women In The Signage And Printing Industry

Fuchs added that vinyls for home owners and private use is a niche market. ‘We have also had requests to wrap toilet seat covers, fridges and kitchen cupboards.’

Different textures such as chrome, wood grain, carbon fibre and a variety of metallic effects, glitter, ultra matt finishes and ‘sandpaper-like’ non-slip surface finishes are also available. One can also create pearlescent effects and even velvet, while colour changing vinyls also provide really unique wraps.

‘Vehicle advertising is good for any business size, and some small-business owners feel it legitimises their company by getting their brand and logo out where potential customers can see them,’ said Rakesh Rosen, Midcomp.

‘When smaller businesses use vehicle wraps, it puts them on the same playing field as franchises and companies that are large enough to maintain vehicle fleets. Vehicle vinyl wrapping is definitely on the increase in South Africa and will continue to grow.’

Henri Robert from Sign Wonder, said, ‘Vehicle branding is an effective promotion tool because it combines the key elements of marketing, advertising and branding into one convenient and proven solution. It is high impact, cost effective and they work for all types of businesses. Vehicle branding allows a vehicle to serve as a low-cost mobile billboard seen everywhere a vehicle typically goes.’

You can see vinyl wrapping solutions and business opportunities at the FESPA Africa and Sign Africa Expo at Gallagher Convention Centre from 13-15 September.


Visit http://www.signafricaexpo.com/wraps for more information. 

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