Presenting Jamaicas First Yam Chips

Partners: Jahdiel Beaufort

Rmon Goulbourne
Zanya Hall
Zara Husbands
Jon-Michail Russell
Jermaine Thompson

JamYam
I Yam Healthy!
Before going into operations the business must
be enumerated with the registrar of companies
and will submit the BN2 form and will receive a
business license.
Additionally, the Bureau of Standards is the
governing body that requires that we meet the
food safety standards such as the Food and
Safety Modernization Act 2011.
The ministry of health will also govern our
operations, being a food processing company.
Some factors that may constitute to limitations
are production costs being expensive, such as
that for labour, fuel, electricity and water.

The Caribbean Food and Drink Report Q2
2010 shows that the food and beverage
industry is a very large and affluent one both
locally and internationally.
The decline of formal lunchtime eating is
creating new market segments and strong
growth in the snack food market. Research
suggests that more of us eat lunch at our
desks.
Meal consumption is now fragmented into
more frequent and smaller meals taken in
more diverse locations.
A significant emerging trend in this market
has been the introduction of "low-fat" and
"healthier" versions of snacks.
These snacks appeal both to parents
concerned about children's health and to
weight-conscious adults.
Consumers demand additional benefits such
as health, interesting tastes and textures
beyond fulfilling just their basic nutritional
needs.

Based on the feasibility study, eighty two
percent (82%) of respondents said that snacks
currently on the market are either expensive
or too expensive.

0%
10%
20%
30%
40%
50%
60%
70%
80%
Expensive Not Expensive
Snack Affordability
Consequently our management team concluded
that it is the best time for us to go into the
industry and garner our market share as our
product will be more valuable as it offers more
energy, nutrients and vitamins at a lower price
than our competitors.
The leading competitors to Jamyam are Sunshine
Snacks, Jamaica Producers, Frito Lay, Holiday
Snacks and falling under the Jamaica Producers
umbrella, the St. Marys Brand which was chosen
by the respondents in the study to be the most
popular snack brand.
Jamyam Industries is a snack company, whose
main focus is on making healthy chips from yam
(yam chips).
Our factory will be located in Clarendon. The
main aim is to become the number one healthy
snack company in Jamaica.
The driving force behind us engaging in this
business is the need we saw for a more
affordable healthy snack in Jamaican market
Various snacks available have their nutritional
value as a result of the processing they go
through and our company has set out to correct
that and fill the need for healthy snacks.


In order to assess the factors faced by JamYam
Industries, a feasibility study was carried out with the
use of questionnaires that were given to a random
sample of 100 persons in and around the Kingston and
Clarendon areas.
78% would try yam chips, therefore there is a great
potential market for the product,
82% think that the healthy snacks currently on the
market are too expensive; this is significant as it
means that Jamaicans are looking for an affordable
alternative to the healthy snacks currently on the
market
Also 28% of the respondents select healthy snacks as
their first choice while shopping, therefore, almost a
third of the population favours healthy snacks, hence
putting JamYam Industries in a favorable position.
Would
consume
78%
Would not
Consume
22%
The Percentage that would consume Yam Chips
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Expensive Too Expensive Not Expensive
Affordability of Healthy Snacks
28%
29%
32%
11%
The Public's Opinion on Healthy Snacks
First Choice
Bad Tasting
Expensive
Ineffective
Risk associated with the operation of JamYam
Industries can be classified into market and non-
systematic risk.
Market risk refers to changes in macro-
economic variables such as inflation, recession
and interest rates which may reduce the
purchasing power of our consumers and drive up
the operation cost and cost of goods and services
Non- systematic risks are industry specific.
Increased competition can threaten the
operations of JamYam Industries as there are
little or no barriers to entry so business providing
similar products may annul the competitive edge
of the business.

Economic impacts tax rates are unpredictable, close
monitoring of rise and fall in price levels and tax rates will
assist in accurate financial projections.
Environmental impacts - Hurricanes may lead to a
decrease supply of the main raw material and inflict
physical damage to the companys infrastructure.
Social impacts - The risk of one or more partners
withdrawing themselves from the business venture
reducing the capital flowing into the company and the
responsibilities being shared among less members, can
prove unfavourable to the business.
The loyalty of customers is also a factor; persons get
easily bored of products and are driven to new items,
hence if they decide to switch loyalty this will lead to a
reduction in consumption level and inevitably a reduction
in production which will also impact on the income of the
company.

Individual benefits for entrepreneurs
Individual benefits for costumers they will
save money and eat healthily
Making a positive contribution to the health
of Jamaican people.

Mission Statement
We are dedicated to providing healthy snacks to
the general public of high quality at the lowest
possible price. The health and satisfaction of the
general public is our prime concern. The full
scale manufacturing of the yam chips will pave
the way for intellectual growth, positive lifestyle
changes and an overall improvement in the
health of our customers. Our customers are our
number one priority; hence it is our pleasure
here at Jamyam to provide an exceptional
product to the people of Jamaica our valued
customers.
At Jamyam, our slogan is, I yam
healthy.

Corporate Goals
Secure necessary funds and source capital.
Break ground and begin renovations and operations
within two months.
Provide exceptional customer satisfaction.
Successfully penetrate target market within the first
year.
Enlarge and sustain market share with continuous
marketing, promotion and positive Public relations.
Move into new markets segment that offers a fixed
improvement in profits by the start of year three.
Our first major objective will be securing funds and
setting up our business. Currently, this is our primary
focus.

hhhhJon-Michail Russell
GENERAL MANAGER/
FINANCIAL OFFICER
Zanya Hall
HUMAN
RESOUCES/COMPAN
Y DEVELOPMENT

Jahdiel Beaufort
OPERATION
Jermaine Thompson &
Remon Goulbourne
RESEARCH &
DEVELOPMENT
Jermaine Thompson, Remon
Goulbourne & Zara Husbands
MARKETING &
SALES
The partners of Jamyam industries will carryout
various functions in the operation of the company.
The team members will carryout: Sales, Marketing,
financial and managerial duties.
However, two persons skilled in food handling and
preparation will be sought to supplement the skills of
the Jamyam team.
Workers would be sourced from the best training
facilities in Jamaica. The University of Technology
has a great training program; therefore, potential
employees would be sought from the 4
th
year cohort
of the institution.
Continued training and development of staff skills
will occur through the assistance of programs such as
the HEART/TRUST training facility and the University
of Technology.

Location - The Jamyam facility will be located in
Clarendon. The Parish of Clarendon was
selected because it is a central parish with many
linkages to other parishes. Also the cost of
renting will be cheaper than in the Kingston and
St. Andrew area
A panel van will be procured to transport the
chips to retailers.



Cctv cameras will also be bought to increase the
security of the compound

An industrial oven will be necessary


An industrial sealing machine will also be
necessary


Industrial slicing machine
Industrial slicing machine to cut the yam into
thin wafers will also be procured.

Yam will be sourced locally. After sufficient
capital has been raised, Jamyam will grow its
own Yam
Olive Oil (Food Grade) this will be imported
in 55 gallon barrels.



Sea Salt this will also be imported

Spices the various spices to be used in the
manufacture of the Yamchips will be sourced
from local farmers. Local spices are known
to be excellent and will provide the required
taste and strength.
Preservatives the preservatives will be
bought from a local distributor.
Bags plastic packaging for the Jamyam
chips will be obtained locally. The designs on
the bags will be printed unto the bags before
they are delivered to the factory.

Concerning utilities, Jamyam will require water from
the National Water Commission and electricity from
the Jamaica Public Service Company.
Being a manufacturing company, much electricity will
be required and the cost of electricity will be a
major factor in our expenses.
Therefore, Jamyam will seek a loan to provide solar
panels to the facility. The solar panels will be used
to operate the lights at the factory and assist with
other electricity needs. This should decrease our
need for power from the nations grid and lessen
utility costs.
The factory will be open between 8 a.m. and 5 p.m.
As demand for Yamchips increases and the companys
capacity grows, the opening hours will be lengthened
and staff will work in shifts.

Target Market
Jamyam will be targeting both children and
adults, as well as school canteens
wholesales, supermarkets, pharmacies and
any business that sell snacks.
Jamyam will be targeting consumers all
across the island, however, operations will
begin in the Kingston and St. Andrew
metropolitan area as this has a high
concentration of consumers.

Demographic
Jamyam target consumers that fall between the
ages of 5-35 years. This age group contains both
children and adults. Children are generally
attracted to snacks and yam chips is particularly
good for children as it provides more energy than
its counterparts while providing much vitamin C
and vitamin B.
Adults, many of whom are conscious of their
blood sugar levels, weight, cholesterol, salt
intake and calorie intake will be attracted to
Yamchips

Psychographic Characteristics
Jamyam will be focused mainly on customers
(both genders) that:
have a positive attitude towards their health,
like snacks and are could be over weight and
would love to enjoy the food they like while
keeping healthy and also losing weight.

The Jamyam chip is a baked product made from
Jamaican yams. It is a healthy product, as the yam
contains substantial amounts of vitamins and
minerals as well as other nutrients.
The product is baked using Olive Oil, which adds
further nutrients to the product.
The Yamchips are crunchy, thin and golden-brown in
colour.
Jamyam chips is also an excellent source of energy as
it has a low glycemic index, which ensures that it has
a long and sustained release of energy.
This product is also an excellent source of vitamin C
as well as potassium.
Therefore Yamchips is an excellent snack for those
suffering from diabetes, arthritis and hypertension.

Based on the results of questionnaire, consumers
think that present snacks on the market are
expensive and the bags tend to be filled with air
and not the desired product.
In the aim to meet the needs of consumers, a
box of 20 of Jamyam chips bags will cost $360,
leading to a wholesale price of $18.00 per bag.
This undercuts the price of the major
competitor; St. Marys Banana chips.
Any customer ordering 10 boxes will receive 1
complimentary box of Jamyam Chips.

Jamyam would be advertised by the use of fliers
and posters island wide, radio and television
advertisements
the internet will also be used as a good channel
of advertisement via Facebook and twitter.
There will also be exhibitions at big events island
wide where samples will be given out
We will also use an attention grabbing strategy,
that will draw the attention of children with the
use of different packaging of our product. For
baggage; there will be a large, medium and
small, the small bag would be very colourful and
creative with cartoon characters to draw the
attention of children and also adults that are
childish at hearth.

Each of Jamyams partners will contribute
$100,000 to the partnership
Also, the partners will seek to raise a
combined $100,000 from relatives and
friends
A loan of $500,000 will be sought to assist in
the development of the company
The total capital to be raised will be
$900,000
Item Quantity Cost
Industrial Oven 1 $353,420
Computers 2 $50,000
Air conditioning
unit
1 $25,000
Slicing Machine 1 $65,320
Industrial Sealing
Machine
1 $30,272
Total $524,012
Jamyam will require various machines and equipment to produce
the Yam chips, the following table lists some of the equipment
necessary
The following table displays some of the pre-
operational costs the Jamyam investors will
have to cover.

Item Cost
Rent Deposit $15,000
Factory Development and
Preparation
$50,000
Consultation Services $15,000
Promotion $10,000
Vehicle Acquisition $100,000
Total $190,000
The total startup costs will be $714,000

Therefore, 485,988 in cash will be available
after starting the company.

This cash will be used to cover expenses in
the first month of operation until revenue
can be generated.
This displays the projected revenue for the
first 3 years.

$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
1st 2nd 3rd
$3,920,000
$5,640,000
$10,280,000
Revenue
The following graph displays the operating
expenses for the first 3 years of Jamyams
Operations

$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
1st Year 2nd Year 3rd Year
$3,854,000
4,604,000
6,756,000
Operating Expenses
This chart displays the projected Net Income
for the first 3 years.

$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
1st Year 2nd Year 3rd Year
$66,000
$1,036,000
$3,524,000
Net Income
Based on the startup costs of the company,
and the operating expenses, it will take the
founders of Jamyam several months to
breakeven
215,000 bags of Yam chips will have to be
sold before the company will begin to make
a profit.
As can be seen, Jamyam will be a very
profitable company
As the companys income and distribution of
the product grows, capacity will be
increased, allowing more chips to be
manufactured and more income raised

It will bring in considerable income for the
investors which will either be reinvested into
the company or used for personal needs.
The founding Partners of Jamyam Industries
strongly believe that they have found a
viable product that will great great rewards
in the near future.
Proper planning, organization and hard work
will lead to the success of Yam chips both
locally and eventually overseas.
We are a skilled and united team with
common goals and a drive for success.
We will be relentless in our quest to have all
of Jamaica Yam Healthy!.