BUSINESS PROFILE
Dixofusion will import a new breed of product dispenser where one need not have hard
currency to be able to utilize a product dispenser, be it in their residence, or in the work place,
or even at a concert or music festival. We will make product procurement more accessible for
individuals, through the use of our innovative products, not only by offering more options (as
will be the case with our dispensers), but also the convenience of not needing to carry
“Randellas” everywhere one goes, aligning ourselves efficiently to capitalize on the global
trend of consumers using a debit card as their preferred payment option. We have called this
machine, the Hybrid Dispenser (HD)
BACKGROUND AND STATUS
Dixofusion Group was founded in 2012 by Ntuthuko Bophela and Sifiso Bophela. Their core
business is franchising, with the company venturing in to sales and advertising recently. The
company leverages on their innovative abilities in identifying and solving service delivery
opportunities where they exist.
The company’s Senior Director has over 5 years in the franchising industry as a majority share
owner in the most financially successful “The Coffee Stop” franchise outlet in the country, and
boasts a qualification as an Electric Engineer. Together, the company’s two Directors have an
accumulative of 12 years experience as small enterprise entrepreneurs.
The Junior Director has over 7 years experience as a small enterprise entrepreneur and is in the
process of completing his BA Psychology degree, majoring in Industrial Psychology, which
will prove instrumental in constructing the organizations structure.
Sabelo Msimang, the company’s CFO has worked for one of the country’s leading banks as a
Fund Accountant for the last 3 years and will bring in his area of expertise in growing the
company going forth.
The specific branch of our company seeks to exploit the opportunities where tobacco products
will be made more accessible to the country’s tobacco consuming populous of 24%, while also
exploiting previously unexplored avenues and locations of marketing and digital advertising
for organizations.
The product dispenser will offer the following products and service:

20 pack cigarettes

10 pack cigarettes

Loose cigarettes

Debit card payment options for the above mentioned products

Digital Advertising Platform

A mobile concerts and events marketing platform
Dixofusion will strategically place all their dispensers at entrances for office buildings
(ensuring upwards of 500 people foot traffic per day), mall entrances, airport entrances and
concert & festival entrances to allow for maximum advertising and sales potential.
As far as advertising is concerned, Dixofusion will target companies such as, but not limited
to:

Food stores (Pick n’ Pay, Woolworths Food, Checkers, Shoprite, Spar, etc)

Banks and financial institutions (FNB, ABSA, Standard Bank, Nedbank, African Bank,
Momentum, Investec, etc)

Cell phone companies (Blackberry, Samsung, Nokia, Sony, etc)

Car Manufacturers (BMW SA, Mercedes-Benz SA, Toyota SA, Hyundai SA, Ford
SA, etc)

Food Franchising Outlets ( McDonalds, KFC, Chicken Licken, Nandos, etc)

Media Houses (YOU magazine, DRUM Magazine, Men’s Health, FHM Magazine,
Daily Sun, The Star newspaper, Sunday Times newspaper, etc)

Petrol Stations (Engine, BP, Shell, Sasol, etc)

Clothing brands (Nike, Adidas, Puma, Reebok, Levis, etc)

Communication and internet companies (Telkom, Vodacom, MTN, Virgin, Cell-C,
MWeb, Nashua Mobile, etc)

Beverage companies (ABI, SAB, Brand House)

Hotels and entertainment (Sun International, Holiday Inn, Michael Angelo, Sun City,
Gold Reef City (amusement and hotel), etc)

Airline (SAA, British Airways, Virgin Atlantic, Emirates, Air France, Turkish
Airlines, Qatar Airways, Air Mauritius, etc)

Any and all companies looking to explore the platform of market related and specific
digital advertising will be pursued and afforded the opportunity.
The business plan sets out to ensure the successful start-up, sustenance and growth of the
business, to see it capitalize on 20% of its monthly costs per dispenser in its initial stages (the
first 3-6 months), growing by 20% every 6 months.
BUSINESS MODEL
Mr S.Bophela
Director
CEO of Dixofusion
Mr N.Bophela
Mr S.Msimang
Director
CFO of Dixofusion
COO of Dixofusion
Within the first 3 months, Dixofusion will employ an:

Admin officer
Within the next 3 months thereafter, a:

Driver (stock and maintain dispensers)
PURPOSE OF FINANCE/DEAL OUTLINE
Dixofusion requires funding to:

Purchase 10 Hybrid Dispensers at USD7,500-00/dispenser - total of USD75,000-00

Freight of dispensers from China to Durban Harbour at USD2,000-00

Transportation from Durban Harbour to Johannesburg at ZAR25,000-00

Stock up the tobacco dispensers at ZAR30,699-00/dispenser/month for the first 2
months - total of ZAR613,980-00

Petrol costs to various HD housing hubs at ZAR6,000-00/month for the first 6 months total of ZAR36,000-00

Office and storeroom rental at ZAR10,000-00/month for the first 12 months - total of
ZAR120,000-00

Insurance for 10 HD’s at ZAR500-00/dispenser/month for the first 12 months - total of
ZAR60,000-00

Company Van - total of ZAR145,000-00

Vehicle insurance at R450-00/month for the first 12 months - total off ZAR5,400-00

Unforeseen expenses at ZAR20,000-00/month for the first 6 months - total
ZAR120,000-00
The total amount required by Dixofusion for a successful and sustainable start-up, with
projections erring on the safer side, is a total of:
ZAR1,895,380-00 (USD at ZAR10-00/USD1-00)
ZAR2,049,380-00(USD at ZAR12-00/USD1-00)
DEVELOPMENT IMPACT
The business will contribute positively to the advertising industry within the country, while
also opening doors for international organizations to advertise on the HD, at housing hubs
such as the airport and hotels.
The company is a Level 3 BEE compliant company, aligning itself with the government’s
empowerment initiatives. That being said, in light of government’s plea for entrepreneurs to
create new jobs, Dixofusion will, directly, be responsible for the creation of 2 jobs within the
first 6 months, and a further 4 in the 6 months thereafter. Indirectly, with the growth of
organizations due to their products reaching a larger pool of customers and clients, countless
jobs may materialize.
OWNERSHIP
Dixofusion is owned by Sifiso Bophela and Ntuthuko Bophela.
MARKET ANALYSIS
Local Markets
With 24% of our countries population being smokers, and BAT being the company with the
greatest market share (above 60%) in South Africa, it is primarily their products we will be
selling, but we will also afford clients the option to purchase other products from the Hybrid
Dispenser, products from PMI and JTI will be availed to our target market as well.
When the economy was rocked by the recession a few years ago, the tobacco industry barely
felt the pinch, and the market was in no way effected.
With small companies emerging within the last year manufacturing loose cigarette dispensers,
but not actively placing them, Dixofusion realizes the opportunity to provide both a pack of
cigarettes (20pack or 10 pack), as well as loose cigarettes to environments where they may not
be as easily accessible, such as your residences, office buildings and major social events. Due
to the dispenser’s ability to provide a solution tailored for the customer’s financial situation at
any given time, the Hybrid Dispenser will be a “personal friend” to many.
The dispenser will adhere to international standards of smoking regulations as the necessary
regulatory considerations have been extensively researched and will be bore in mind
throughout the entire manufacturing process of the Hybrid Dispenser.
The “cherry on top” is the fact that our target market will be able to swipe their debit cards
from this point of sale, eliminating the previous tedious chore of having to carry around hard
currency and more specifically bills, when using a dispenser - this is the greatest contribution
to the vending world as a whole, courtesy of the Hybrid Dispenser.
To the local Advertising and Media Industry, our contribution will be beyond measure. The
world is taking an inevitable turn towards a digital age. With print media sales on the decrease
since 2005, we will afford them the platform to advertise their newspapers by marketing the
headline content on the HD, i.e. “Julius Malema on nelson Mandela - The Star”, “Woman
impregnated by talking goat - Daily Sun”, etc.
With LEDs being 6 times more effective than print advertising/billboards, brands are more
inclined towards digital media platforms/electronic advertising in recent years, because 93%
of people passing by electronic advertising are more likely to recall an advert they saw, as
opposed to the 43% who pass a non-moving advert and do not recall its content. Furthermore,
sales increased by 107% for products shown on mobile advertising, versus 57% for products
on static signs. The above positive effect of electronic advertising is attributed to the constant
change in adverts every 8-15 seconds, which not only spikes the interest of the potential
clients and customers, but also keeps them interested in seeing what will be advertised next.
GLOBAL MARKET
Dixofusion, in the next 12 months, will look at expanding its market share to other countries,
starting with Africa and the airports of countries within Africa.
Due to the HD’s dual
functionality, airports make for the perfect housing hub nicotine addicts, coming off an
international flight of up to 18 hours, will be “itching” for a cigarette and while they purchase
their product of choice, their attention will be drawn to a resort advertising on the HD, which
they hadn’t considered visiting on their stay, or catch a glimpse of the country’s most
prominent affairs from a newspaper advertising it’s paper’s headlines - the potential and
opportunities for the HD on a global scale, for marketing and advertising, is immeasurable.
TECHNOLOGY
The technology to create a machine such as the Hybrid Dispenser is not entirely available in
South Africa; hence Dixofusion has had to turn to the next best option, which is to
manufacture the machinery in China, Guangzhou. Dixofusion have a verbal agreement with
the manufacturing company and manufacturing will begin once a 50% deposit has been made.
The HD will not only have the added features of convenience for the customer and client
(20pack cigarette, 10pack cigarette, loose cigarette, coin collector and debit card payment
option), but also added features for the owners of the HD (in this case, Dixofusion), such as:

Being able to monitor sales from a laptop at the office or at home, limiting the
unnecessary visits to housing hubs - saving on petrol costs.

Being able to load or remove a client’s advert from the office or at home.

Being able to change product prices to be competitive from the laptop at the office or
at home.
These three features, from an ownership perspective, will limit the surplus expenses, which in
turn, positively affects the profit margins.
SWOT ANALYSIS OF BUSINESS
Strengths
Dixofusion is founded by 3 young men with no obligation to their lives but the company
An accumulative of 12+ years of entrepreneurial experience
5 years of franchise experience
Dixofusion is months ahead of an emerging advertising and marketing trend
The Hybrid Dispenser’s mobile ability
The Hybrid Dispenser enters an unsaturated market
Weaknesses
Low capital base to fund the start-up and growth of the business
Dixofusion is a “novice” as far as the advertising industry is concerned
Opportunities
Dixofusion enters an emerging market
Dixofusion’s ability to recognize various “uncharted” avenues for marketing
Digital advertising is the fastest growing marketing and advertizing platform
In some countries, digital advertising is the youngest, et the 3rd biggest contributor to
advertising
Threats
The potential for more experienced and financially capable organizations monopolizing the
platform
COMPETITIVE EDGE
Dixofusion’s strong point in its niche market is further be leveraged by the fact that the HD
will be used for personal marketing ventures to further enlarge its market share.
The fact that Dixofusion will also afford brands and organizations a platform to advertise
digitally in areas where it was once not possibly, will stand the company in better stead when
compared to its competitors.
ENVIRONMENT IMPACT AND COMPLIANCE
The HD complies to all tobacco dispenser and tobacco distribution regulations. Furthermore,
Dixofusion will accompany each Hybrid Dispenser with an ash tray no further than 5 meters
from the designated smoking area it will be housed in where applicable.
MANAGEMENT
The management of Dixofusion comprises of three gentlemen, all of a previously disadvantage
background, with the passion and desire to identify potential within respective markets and act
accordingly to breach that gap.
LOCATION
Dixofusion will have its offices in the Johannesburg central business district (CBD) so as to
align itself with the reurbanisation of the city centre.