business plan f

8/8/2019 Business Plan F

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This term paper focuses on Business Plan in Bangladesh and it also defines all of the

procedure of business plan. In this term paper has reflected the new idea of business plan in

Bangladeshi prospective.

The new business plan is important for the every entrepreneurs of any economy. Business

activity and the resultant financial gain are always of benefit to a country. If you want to

make a effective business plan then you will recognise a genuine opportunity when ysou

come across one.

The purpose of this study is to provide greater understanding about a Business plan with

business idea. Now the some other objectives of the report are as follows-

1. To understand about business plan.

2. All of the procedure of business.

3. To gather some experience about business plan.

4. To identify profit and loss situation.

5. To identify the key features of business plan.

To accomplish this assignment we took help the secondary source, thats the market survey of

the people & we also help from the book & internet to accumulate the data as a primary

source.

Completing this assignment we face lots of problem with scope limitation. These are:

Shortage of time.

Various restrictions of the areas.

Lacking of primary sources.

Methodology1.2

Objectives of the report1.1

IntroductionChapter # 1

Limitations1.3


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The Business Plan is a written document which is prepared by the entrepreneur that describes

all the relevant external and internal elements involved in starting a new venture. It is often anintegration of functional plans such as marketing, finance, manufacturing, and human

resource. It is sometimes referred to, the game plan or road map- answers the questions,

where I am going? How will I get there? Potential investors, suppliers, and even customers

will request or require a business plan.

One of the most important decision documents for any is their business plan. It is common

practice for consultants, lenders, potential business partners and other business associated

individuals to request. Normally, a business plan is a comprehensive set of guidelines for a

new venture. A business plan is to make a more informed decision concerning their

relationship with a business. However, business plans have many more direct benefits for

business owner. The planning process forces owners to systematically consider all facts of the

business. Lastly, a business plan is an outline of potential issues to address and a set of

guidelines to help an entrepreneur make better decisions.

Flashback is a new ongoing establishing company. Our major objective is making new

environment friendly and quality product and service for consumer with reasonable price.

Henna is very popular in our country. There are many different use of Henna in our country;

especially for hair use it is very effective. Now we are trying to formulate a new brand

shampoo and hair color which is made by Hennas ingredient.

Mission

Our mission is to provide the quality goods and services to our customers with reasonable

price. We understand the customer demand, thats why we are going match the consumer

demand by quality goods. We are trying to formulate our product to solve the customers hair

related problem.

Chapter # 2 Business Plan Conception

Chapter # 3 Company Summary


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Vision

In competitive business world we want to be a strong brand of trust. To the business

viewpoints our one and only vision is to earn profit. But we are determining to follow the

business ethics in our business and we should try to maintain the environment and social

responsibility.

Goal

Our goal is to spread our business and expand several branches all over Bangladesh & also

want to globalize our product.

Flashback Private Ltd will start with an initial TK. 14,900,000 investment to get the

company going. Our project cost is given below:

Particulars Taka

Land and land development4,000,0

00

Factory Building4,000,0

00

Machine4,000,0

00

Furniture1,000,0

00

IT Equipment500,0

00

Pre-operating Expenses1,000,0

00

Contingency400,0

00

Total Cost 14,900,000

Owner Equity 50,000,000

Bank Loan 10% 20,000,000

Total 70,000,000

3.1 Project Cost

3.2 Source of Finance

Source Taka


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Flashback is a Private limited company, will be founded by maintaining the Company act

1994. There will be number of seven board of directors.

Factory:

We select our factory location in Savar, Dhaka. Savar is the part of Dhaka district where we

can get the best transportation facilities as well as cheap land for our factory place. There we

should get the available labor force with lower price. In Savar local area we should get a hugemarket for our product and thats why we dont have to hire any distributor for that area.

Other hand we should get the local political support from that area as a Bangladeshi company

and as a native of that area.

Office:

We select our head office in Shymoli, Rupayan Tower Khilji road, Shymoli, Dhaka. It is

very good location for our office. We select our office in 4th Floor of Shymoli Rupayan

Tower. Our office space is 2000 square feet and its monthly rental expense is 30,000.00Tk.

3.4

3.3

Company Location and Facilities

Company Ownership


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As consumers need and lifestyles change and as new manufacturing processes becomeavailable, the shampoo and hair color industry responds with new products. Because

cosmetics products are part of our everyday lives, it is essential that they do not present a

significant risk to our hair. However, they are loadedwith potentially toxic chemicals which

are harmful for ourenvironment. In our project we have observed different concentrations of

shampoo and hair color on hair and have seen how shampoo and hair color harms to our hairs

day by day and at last we face different types of skin & hair problems. We also repeated this

experiment with a Henna natural shampoo and hair color which shows the opposite effect of

shampoo and hair colors. So, it will better for our company.

Henna Natural Shampoo:

Henna Shampoo is the new concept in Bangladesh. People use henna for different purpose

especially for hair use is very popular and effective. For that reason it has huge market

demand based on our market survey but this product is not available in market. Thats why;

we closer look to Henna Natural Shampoo as solution. We will try to fulfill the customers

demand by our product Henna Natural Shampoo to solve the hair related problem.

Henna Natural Hair Color

Henna hair color is an existing concept in Bangladesh. It has huge demand in market so we

decide to produce this product by thinking the market demand. Thats why; we closer look to

Henna Natural Hair Color as for our customer. We think that Henna Natural Hair Color will

create the good market for us as well as fulfill the customers demand.

Products ReviewChapter # 4

4.1 Introduction

4.2 We Closer Look to Henna Natural Shampoo & Hair Color


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In our country & in Asian subcontinent countries people are using Henna for different

purpose. Peoples are using Henna in their hand & their hair to make hair silky, shining &

strong. Apart from strengthening the roots and hair, if we use henna then our hair will be safeand effective coloring of hair without causing irritation or any damage to the hair and roots.

Basically, henna makes hair stronger & colorful.

HennaNatural Shampoo is an ayurvedic shampoo made up of Henna. It fights againstdandruff and it helps to protect hair damage. It should help to make hair more shine, smooth,

long, strong, healthy, dandruff free and silky. We also use the hair cooling formula in our

shampoo. Apply this shampoo on scalp and massage into hair. Then rinse completely. It gives

a natural shine and volume to hair. Henna is very popular & feasible for using in hair by

paste. So if people use Henna Natural shampoo then they will get all the effectiveness of

Henna without pasting Henna.

4.3

4.4

Advantages of Henna

Advantages of Henna Natural Shampoo


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Ingredients of the Henna Natural Shampoo:

Water: 40 % Surfactants : 39 % (Sodium Lauryl Ether Sulphate, Cocoamide D.E.A, Galsilk,

Cocoamido Propyl Betaine, Methyl Paraben, Propyl Paraben, E.D.T.A, Citric Acid,Sodium Chloride, Color, Fragrance)

Menthol: 10.40 %

Key Ingredients: 10.60 %

Lawsonia Alba (2.5%),

Ocimum Sanctum (1.5%)

Eclipta Alba (1.5%)

Acacia Concinna (1.8%) Aloe Vera (1%)

Azadircta Indica (2%)

2 Phenoxyethanol (0.3%)

Henna Natural Hair Color is an herbal product. This contains all the benefits of Henna. We

offer our clients 100% Natural Hair Colors which do not contain any type of chemicals. Our

Natural Hair Colors are a combination of certain herbs carefully chosen out of ancient

ayurveda knowledge. Being 100% natural, there are no side effects of these colors. There are

many different shades of color, which people can choose appropriate for him/her self. These

colors are the best way to color your hair naturally.

4.5 Advantages of Henna Natural Hair Color


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Nowadays people are facing huge hair related problem like hair fall, Dandruff, Skin problem

etc. To think about that problems we are decide to launch new shampoo by Henna. Henna is

very popular & effective solution of any hair related problem & it is a Herbal product. Hennais a very familiar to people, which has great acceptance in local & international market.

Henna is available in every where in our country but it is not enough for our production for

that reason we have to collect the raw materials from India and Pakistan. In that case we deal

with some Pakistani and Indian company which they supply henna raw material in their own

cost. We also go to cultivate the henna in our country which will be 40% of the total raw

materials.

Bangladeshi people are very festivals. In all festive and occasion people use Henna. Henna is

very popular in our country and it use in very purpose especially in hair, people believe that

4.6

4.7

Why we choose this product?

Raw Materials Collection

4.8 How we use in our country


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henna is very effective in use in hair. In our country people are using shampoo regularly, if

people get Henna shampoo they should feel more interest to use Henna shampoo.


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Flashback Private Ltd. target market are all of the general people, who wants herbal related

product in his or her hair which have no side effect with reasonable price and also wants

better quality product. Our main target customers are businessman, service holder, teacher,

students etc.

We have segmented our Henna Natural Shampoo & hair color product Flashback Private

Ltd. in threebases.

Geographic:

Our immediate geographic market will be Dhaka city with a population of around 20 million

for the both product.

Demographic:

1. Students

2. Business man

3. Housewife

4. Service holderPsychographic:

Social class: For the shampoo product Middle Class, Upper Middle Class, Upper

Class and lower-class. For the hair color - Middle Class, Upper Middle Class, and

Upper Class.

Life style: Achiever.

Benefits: Quality

User status: Potential user, first-time user, and regular user.

Occasions: Regular occasion.

Loyalty status: Strong.

Chapter # 5 Market Analysis Summary

Market Segmentation5.1


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In our country, there have many types of cosmetics companies which provide shampoo and

hair color in our market. But there have no shampoo and hair color products which belong

from different test.Our research & development department surveyed that most of customerswant new taste of shampoo and hair color products. On the other hand we have theopportunity to enter in the market and fulfill the gap of customer demand. Now, we are going

to offer Henna Natural Shampoo and Henna Natural Hair Color based on the customer needs

with a very reasonable price so that customer can easily take the new product of Henna

Natural Shampoo and Henna Natural Hair Color with Shampoo and hair color.

With the development of the whole world, our country is also moving fast and this brings new

change in our thought. It implies that we are become bored with the continuous repetition of

any thing. So within this situation, our product can grab the attention positively of general

people. Available companies are selling Shampoo and hair color of different sizes in between

TK. 2 to 350 and, but give only single taste. Here we will give multi test with fewer prices,

which will be benefited for our company.

People who use shampoo and hair color for their hair that is not small in number. The vast

population is used to have it occasionally use our shampoo and hair color product. Some

people are taken the shampoo as a part of their daily routine.So there is high rate of user ofshampoo and hair color product among us which shows high potential of increase in market

size of shampoo and hair colors customer.

We founded 2 months ago by market research, is about to enter shampoos market dominated

by Clear men, Sunsilk, Pantene and Hayden solder. On the other hand, hair colors market

dominated by Super Speed, Karolin-ultra, Garnier and Speed-3. Overall economic condition

of our country has increased the possibility of introducing better product in the market.In thiscase, Flashback Private Ltd. must carefully distribute the product to the targeted customers.

5.2.1 Market Summary

5.1.1

5.1.2

5.1.3

Market Needs

Market Trends

Market Growth

5.2 Situation Analysis


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Flashback Private Ltd. market consists of consumer and business users who need to

conveniently store, communicate and exchange information. Specific segments being targeted

during the first year include Upper-middle class, upper-class, middle-lower class and lower

class people that use Henna natural shampoo to clean their hair and Upper-middle class,

upper-class people that use Henna natural hair color.

Customer can choose shampoo between mainly on two specific brands one is Unilever (Dove,

Clear men, All clear, Sunsilk) and the other is Pantene pro-vitamin though there are some

insignificant brands exist in the market.

Our first product, the Henna Natural Shampoo offers the following:

Dandruff free hair.

Hair fall defense.

To make hair silky & smooth.

For long & strong hair.

Cooling hair.

Washes 100% clean hair.

Cares for die.

Little more price for much more quality.

Safe for hair.

Our second product, the Henna Natural hair color offers the following:

95% Herbal hair color.

100% grey coverage

Radiant, long-lasting color

We will different types of flavors

Nourishes and protects as it colors

We give difference types of color.

Cares for die. Little more price for much more quality.

5.2.1.2 Product Review

5.2.1.1 Market Description


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Safe for hair.

The growth of economy is experiencing at a constant rate in Bangladesh. Now new business

is coming largely in the market. The recent political stability is working as a blessing for the

entrepreneurs to start their dream project. This actually gives us the green signal to start a

business which is very unique and which meets the current demand of this fast-paced

lifestyle. It is a new concept for this country and we believe that we will highly be

appreciated in the market in the present situation. Our possible main competitor is Unilever

(Dove, clear men, sunsilk), without this competitor we have other competitors. They are

Garnier, Pantene etc. Our herbal product is the key difference with them in Bangladesh.

In Bangladesh, the trend of ready to serve many cosmetics company which is produceshampoo and hair color product which is increasing day by day, but all of those product are

the same test. Moreover nightlife is becoming more and more colorful and they also want to

quality product with reasonable price. So Flashback Private Ltd. will be a necessity

within a very short while. This is also a new concept in Bangladesh. So the trend for our

business should be uprising.

Here, we are targeting to the lower class, middle class and the upper class people in thecountry, therefore Unilever, Garnier, and Pantene are our possible competitors. But the key

difference between us and them is that we offer herbal Henna product which is new in our

country.

The current scenario in our country, there is no existing Henna shampoo in our country. The

whole operation is carried out partially step by step with the help of intermediaries. As the

countrys first Henna product, Flashback Private Ltd. will have a competitive advantage

over competitors. Furthermore, Bangladeshs current economical status allows having theopportunity of emerging such business.

5.3 Industry Analysis


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SWOT analysis is based on strength, weakness, opportunity, threats. Our research and

Development (R&D) department found some major strength and weakness for both the new

product Henna Natural shampoo & Henna Natural hair color of the company.According to the R&D department the SWOT analysis of the product is described below.-

As a new company, we have some strength in the market. This are-

We will strong relationship with suppliers that offer credit arrangements, flexibility

and response for any new product of our company.

We take excellent, stable and trained staff for customer service. Skilled employee in marketing department for the promoting the product.

Totally new feature in the shampoo industry.

We have total quality management for our product.

Good relationship with companys suppliers, partners and customers.

High quality machineries and raw materials.

We also have some weakness in the market. This are-

New environment for the company as because first time lunching product in the

market.

Lack of community support so far because we have not had any formal and informal

communication with any political leader of the community.

Less product classification.

No existing product, thats why we cannot be used existing channels

We also have some opportunities in the current market situation. These ares-

Completely new strength in Shampoo and hair color market.

High growth rate in our target market.

Continuous opportunities ahead through strategic alliances and market activities.

5.4 SWOT Analysis

5.4.1

5.4.2

5.4.3

Strengths

Weaknesses

Opportunities


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Attractive packets can be our opportunity.

E-mail and mobile communication will make our order and supply much easier for the

product.

Increasing market share may increase the sales of the product beyond our expectation.

When we started new business then we faces some threats. This are-

Other competitors of shampoo and hair color companies have a high market share in

the shampoo and hair color market. This company may be able to become threat for us

by introducing new product like ours.

Economic, political and technological factors of the country may be threatening forour product.

New entry of similar shampoo and hair color company after the lunch of our product

and can offer shampoo and hair color product extra feature with very little price to

beat our price.

The key to success of this product are-

Experienced and eye catching advertisement on most of the areas of the

country.

Proper channel distribution.

Proper Customer Relationship Management (CRM).

Proper Supply Chain Management (SCM)

Generating average sales in excess of Tk137, 500 per business day.

Online News and Advertisement.

Both the shampoo and hair color product is the new and innovative idea for the market. So

that the company has to consider some critical issues, which are as follows-

The products sales growth will be slow for first six months in the very first year of

their operation. Thus the company has to hold the products position for first 6 month,which is admirable.

5.4.5 Keys to Success

5.4.4 Threats

5.5 Critical Issues


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As the product is new in the market, it will take too much time to stay in the heart of

the consumer and the beginning consumers will be innovators. Thus attractive and

effective marketing will be needed to attract, grow, and retain the customers.

The marketing objectives will be to create product awareness and trial. The company must use heavy sales promotion to entice trial that is matter of investing

huge amount of money.

The products cost per customer will be high, as the product is lunching initially. For

sustaining in the market, we will less profit in the first time.

PEST analysis contains four factors which directly and indirectly effect the businessoperation.

In Bangladesh, our political situation is not so good suffers. This is a major drawback for

starting new business in our country. So, we trying to keep a good relationship with the

government and political person.

Employment laws will definitely be favorable in terms of dealing with the employees.

Political instability of our country might be a serious problem as far as the supply

transportation is concerned. So, we will cared about this.

Bangladesh is started as newly emerging economy. Now-a-day Many new venture are

emerging with high potentiality. Our target customers will very much appreciate such new

venture. So, it will be challenge for me.

As we have decided to take loan, so we need to be concerned about the interest rate. It will be

help to earn more profit to our company.

As the fluctuation of inflation rate is high in our country so it could cause negative effect on

our business. So, we are concern about this.

5.6 P E S T Analysis

5.6.1

5.6.2

Political Factors

Economic Factors


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As Bangladesh is turning into a very fast paced life-style, people wish to have a store around

the corner where will find this product. Thats why, we will distrributed our product in largely

and also for the mass people.Moreover the new generation intends to buy new product with new feature in the markety. Sothis new type of products will created a new hype among them.

Basically we are using most modern technology to ensure quality service to our customers.

However, in case of cash processing and inventory we would be depending on technology; so

further improvement in these sectors might increase our efficiency and profitability as well.

Micro and Macro environment is going to affect the success of Henna Natural Shampoo

and Hair Color.

The components of micro environment such as Companys customers, suppliers, competitors,

Marketing intermediaries, employees, public, and partners have great influence in success of

the product. So, the company will be maintain its CRM (Customer Relationship

Management), PRM (Partner Relationship Management), ERM (Enterprise Resource

Management), SCM (Supply Chain Management) and KM (Knowledge Management)

effectively.

The larger societal forces demographic, economic, natural, technological, political, and

cultural forces will have effect on the success of Henna Natural Shampoo and Hair

Color.

Demography if the population sizes in Dhaka city increases then the product

will in high demand.

5.6.4

5.6.3

Technological Factors

Social Factors

5.7.1

5.7

Micro Environment

Environment

5.7.2 Macro Environment


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Economic- if peoples income increases then everybody will have the ability to

buy our product.

National economic health- The product will do better if the national economy

becomes healthier. But on the other hand, if the national economy becomesweaker, the product may found itself in a critical situation.

Technological If our company can take new technology very fast comparing

with others then obviously our company will take the advantage of creating new

product and market opportunities.

Political situation: If the government loses their rules and regulation such as imposing less

income tax then our company can easily generate profit and can serve more customers.

Besides, political situation may have a bad impact on the product, if the situation is not in a

fair position.

Henna Natural Shampoo:

Our major competitors in the market are All clear men, Sunsilk, Dove, Pantene and Haydensolder. Table 1.2 shows the major competitors in the market and the price of their product.

All clear:All Clear Men is the dominating this sector. It is a product Uniliver Bangladesh

Ltd. Company. It used by 40% people of total market in the basis on our survey. This

competitor does spend much money in advertising activities but it lacks the quality and they

have no all the feature of customer demand. All Clear is a synthetic Shampoo product. It

produced by Water, sodium, laureth sulfate, menthol, DMDM hydraulic, sodium hydroxide,ammonium lauryl sulfet, carmbola fruit extra, dimethicone, guar hydroxypropyltrimonium

chloride, zinc sulfate, seed oil, lysine HCI, CI 42090, CI47005. It can clean hair and cool hair

very well but it does that very roughly. The target market of the all clear shampoo is the

middle class people.

5.8 Competitive Analysis


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Dove: It is another product ofUnilever Bangladesh Ltd. Dove shampoo has a very small

market share in the market. It is trying to achieve a good market share. It has a positioning

statement that it produced by Water, Ammonium Laureth Sulfate, Ammonium Lauryl

Sulfate, Dimethicone, DMDM hydraulic, sodium hydroxide,Cocamide MEA, Fragrance,

Disodium EDTA, Averrhoa Carambola Fruit Extract, Carica Papaya Fruit Extract,

Trimethylolpropane CI 15985, CI 19140. It used by 5% people of total market in the basis on

our survey. The target market of the Dove shampoo is the higher class people. We hope that

our product will draw the attention of the user of the product and it will have distinctive

advantage in our customers mind.

Sunsilk: Sunsilk also a product ofUnilever Bangladesh Ltd. It is trying to achieve a good

market share. This competitor does spend little money in advertising activities because the

target market of the sunsilk shampoo is the low and middle class people. It used by 20%

people of total market in the basis on our survey. We will take a good competitive advantage

by providing extra features and conveying the massage to the customers.

Pantene: Pantene Pro-vitamin shampoo has a very significant market share in our shampoo

market. It used by 30% people of total market in the basis on our survey. The target market of

the Pantene pro-vitamin shampoo is the all class people especially for the women people.

Even then we will be careful about every competitor that exists in the market.

Table 1.1: Selected Competitors and its price for Shampoo

Name 400ml(Tk.) 200ml(Tk.) 100ml(Tk.) 5ml(Tk.)

All Clear men 270 150 85 3

Dove 320 170 95 3

Sansilk 225 140 70 2Pantene 270 150 85 3

Garnier 350 185 100 3

Henna Natural 300 160 85 3

Source: Collected from product packet and salesman


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Table 1.2: Flavor categories for Shampoo

Competitor Anti

Dandruff

Fair fall

defense

Smooth &

Shiner

Long &

strong hair

Cooling

Hair

Herbal

All Clear

Dove Sansilk Pantene Garnier Henna Natural

Source: From cosmetics Market.

Henna Natural Hair Color

Our major competitors in the hair color market are Garnier, Super speed, Speed-3. Table 1.3shows the major competitors in the market and the price of their product.

Garnier:Garnier is the dominating this sector. It used by 50% people of total market in the basis

on our survey. This competitor does spend much money in advertising activities. They offering

high quality, easy-to-use hair color products with the most beautiful color results possible,

Garnier hair color formulas are enriched with pure, natural ingredients to help protect and nourish

your hair. We combine true color creativity with unique, cutting edge technology. Intense,natural, subtle or bright, Garnier hair colors will satisfy your every coloring wish. But it has some

quality problem with high price and they have no all the feature of customer demand. Garnier is a

synthetic hair color product. The target market of the Garnier hair color is the middle class and

higher class people.

Super Speed: Super Speed hair color is a very significant market share in our hair color market. It

used by 20% people of total market in the basis on our survey. The target market of the SuperSpeed hair color is the all class people especially for the hair salon. In this product will not our

market competitor but we will be careful about every competitor that exists in the market.

Speed-3:Speed-3 hair color is trying to achieve a good market share. This competitor does not

spend more money in advertising activities because the target market of the Speed-3 hair color is

the low class people. It used by 10% people of total market in the basis on our survey. We will


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take a good competitive advantage by providing extra features and conveying the massage to the

customers.

Table 1.3 Selected Competitors and its price for Color

Name 400ml(Tk.) 200ml(Tk.) 100ml(Tk.)

Garnier 270 150 85

Super Speed 320 170 95

Speed-3 225 140 70Henna Natural 240 130 70

Source: Collected from product packet and salesman

Our product will be distributed through a network of retailers in the first year. We will have good

partner relation management. We will try our level best to satisfy our supplier along with the

customer. If the suppliers are not happy then they will not co-operate our customer and that will

be a failure for the company. Among the most important channel partners being contracted are-

We distribute our product through seven of our representative in seven divisions.

We will have 64 sells agent in sixteen different districts. We will buy an own delivery van to transport the product. Some cases we

will use the railroad and the river to transport our product.

Our sales agent will distribute the product to the retailers.

We keep it in some mega shops like Agora, Meena Bazer, Nandon, Mega

consumer Shop, PQS etc.

We plan to distribute our product according to demand of the product. In the first year weemphasize trade sales promotion.

Distribution Review5.9


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Our factory will be establishing around 30 decimal spaces which price will be around Tk.4,000,000. For the office purpose we choose shyamoli which outlet will be 2000 sq feet. We

will allocate the space to decorate with the product shelves, freezes, beverage vending

machines and cash counter in a specific manner that portrays the commitment and delicacy of

our shop.

We will also have an office and a store keep our stock inventories along with outlet. The total

rental expense for the whole business will be around Tk 30,000 per month.

However, for the business our prime concern will be the security because at night in

Bangladesh the crime rate is very high. Therefore, we have decided to have CCTV

surveillance and security lock.

Form of Ownership

Flashback is a partnership business formed under the Partnership Act 1932. All the partners

will equally contribute the investment capital & the profit will also be distributed equally

percentage to all the partners. Any two partners of the six will have the signing authority to

sign in the company checks. The decision of who will be the Chief Executive Officer (CEO)

is taken annually by the five partners and it rotates after every year. For details, Please follow

the contract deed.

Identification of Partner

Rashedul Hoqe chowdhuri Managing Director

Apu Saha Director of Finance & MIS

Md. Rasel Director of Accounting

Sanjeeb Kumar Das Director of HRM

Md. Rajibul Hoque Director of Marketing

Md. Afzel Hossain Director of Operation Manager

6.1

6.2

Chapter # 6

Organizational Plan

Size of Business

Description of Ventures

DesignationName


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Managing Director (MD): Managing Director is the key person of the whole management

team. He is responsible for all the managerial decisions that needed to be taken. He takes

information from the directors of various departments to take necessary decisions.

Directors: Directors are the senior most people in the organ gram department-wise. There arefour basic departments. Their hierarchies are described below.

Finance and MIS:The Director for Finance is responsible for all the key issues of finance. He

takes all the financial decisions of the company. He has one assistant director to help him to

make the financial reports and decisions. There is some finance executive to gather

information and analyzing.

Accounting: Salaries and bonus schemes of the company are described in the financial part of

the plan.

Marketing & Sales:The Director for marketing and sales department is the main man for the

marketing and sales of our company. His first job is to promote the shop in the initial period.

As we will not have that much of marketing campaign in the first three years, therefore at

present his first concern is to acquire sales contract with the manufacturers for the

management. He has an assistant director to assist him and designated marketing and sales

manager and sales and marketing executives to help him.

Human Resource:Human resource director controls the man power of the company. Basically

his duty is to operate the store manager of the shops. Store managers are responsible to

manage the floor staffs and the other necessary workers like labors and security guards of the

shops.


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Authority of Principle

There will be five departments working in our company, which are Finance & MIS,

Accounting, HRM, Marketing and Security department.

Finance & MIS No Human Resource No

Director 1 Director 1

Executive 2 Executive 2

Assistant 5 Staff 5

Subtotal 8 Subtotal 8

Marketing & Sales No Accounting NoDirector 1 Director 1Executive 4 Executive 2Assistant 15 Staff 2Sales Man 35 Assistant 5Sub total 50 Sub total 10

6.3 Personnel Required

Personnel Requirement Chart


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Management & Security No

Director 1

Security Head 3

Staff 20

Sub total 24

On the basis of our Factory & Office area we need search Light, Tube light, Green & red

color light for showing the positive & negative area in the night. We need computer in the

every department on the basis of the employees work need. Then we need chair, tables for the

every people who engage in this company & for the guest need sofas. Then for the good

environment of the office & work place we should ensure the AC & FAN on the basis of the

area. Then we should ensure the worker security & companys security instrument. For the

factory need we should ensure the fast Aid box & the Medical facilities.

The diagram below shows the overall plant of FlashBacks sites at Shamoli & Amin Bazer.

In this page we are show the internal environment of the office & factory

Office Design

6.4 Factory & Office Equipments


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Factory Plan


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Our Marketing objective is to introduce new innovative product in the market and make profitby satisfying our customers best. We want our customers to come back but not the product.

We have set a challenging objective of reaching the breakeven point in one year which is

tough but not impossible. If we work efficiently and effectively in the market then we are

very much likely reach our objective. We have another objective of having good brand equity

in the market. In the future we want lunch few products in the market and want to take the

advantage of lunching new product under a good brand name.

First Year Objectives:

During the Flashback Private Ltd. initial year on the market and we are offering Henna

Natural Shampoo and Henna Natural hair color. Our market demand id 200000 volume and

we are aiming for 31% Henna Natural Shampoo and Henna Natural hair color in the market

through unit sales volume of 62,500(per unit = 1 litter).

Second Year Objective:

Our second year objectives are to achieve 38% market share by increasing sales in the

market. We expect to sales more than 75,000 units in the next year(per unit = 1 litter).

Third Year Objective:

Our third year objective will be to reach 44% of the market share of Shampoo and hair colorproduct. We expect to sales more than 87,500 units in the next year(per unit = 1 litter).

Henna Natural Shampoo will be introduced at 200 ml which Tk 160 estimated retail prices

per unit. We expect to lower the price after 6 months when our employee will be more

skilled. When we will expand our product line then we will be able to reduce the cost as well.

At the very beginning, we want to go for 5ml-500000 pcs, 100ml-200000 pcs, 200ml-100000

pcs, 400ml-50000 pcs shampoo production and selling price is to be 5ml-tk. 3, 100ml-tk. 85,

200ml-tk. 160, 400ml- tk. 300 per piece.

Chapter # 7 Future objective

7.2

7.1

Financial Objective

Marketing Objective


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Flashback Private Ltds marketing strategy is based on a positioning of productdifferentiation. For Henna Natural Shampoo & Henna Natural Hair Color, our primary

consumer target is middle class to upper high class people. Then our target will be to

persuade people to spend little extra for the family hair protection by purchasing our product.

Our strategy is to make some opinion leader to introduce the product and we want to have the

positive word of mouth advertisement for our product.

Our secondary target market for the shampoo will be the business firms like the lower middleclass to low class. Our next target will be to produce more high quality product to attract the

rich firms by providing them a product of more price with more quality.

Using product differentiation, we are positioning the Henna Natural Shampoo & Henna

Natural Hair Color which is the most effective for hair. We will focus on mainly on the

effectiveness of the shampoo & hair color along with the sweet smell. Our positioningstatement for shampoo will be Doctor for your hair. You will be happy by the sweet

smell of bally flower. We try our best to keep your hair dandruff free, long & strong, cooling,

smooth & shiner eith herbal product. We will send this statement to the targeted customers.

Our target customer zone will cover all the customers. Those who use Dove are concerned

about high price and those use other shmapoo and color is concerned about their performance.

So, the customers can switch if they get a combined offer of service quality, price and new

flavor. We hope that our customers will prefer our product over the competitors product. Wewill have totally different and most attractive packaging process.

Our target markets are separated into four segments. The segments are Upper-class, Upper-

middle class, middle-lower class and lower class. The segment details are as follows-

Chapter # 8 Marketing Strategy

8.3

8.2

8.1

Target Market

Mission

Positioning


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Upper-class: Upper-class is a portion of the population. According to our marketing

investigators, Upper-class is the major consumer of both the shampoo & hair color. They like

different kind of shampoo and hair color. They want good quality product whatever price.

Upper-middle class: There is a large portion of the population occupied by the bachelor

people. Upper- meddle class people are our one of our potential customer to serve. They want

good quality product with low price.

Middle-lower class: Middle-lower class is another portion of the population. Middle-lower

class is most careful and sophisticated consumer but most concern about the price and the

quality. So, targeting the middle-lower class is also one of our effective decisions.

Lower class: Lower class is a portion of the population. They are most concern about the

price.

The Henna Natural Shampoo and hair color, including all the features described in the earlier

product review will be sold to the market with a huge marketing effort. The brand and the

logo will display on the product and its packaging and reinforced by its prominence in the

introductory marketing campaign. We will have opinion leaders in the market to convince

people to use our product

Introduction:

In this stage of our products life cycle, sales are expected to be medium. On the other handcost per customer will be high. So, in this stage, we will use cost-plus pricing. Distribution

will be selective; to well-known mega shops and retailers. We will use heavy promotional

activities; advertising, personal selling and try to build product awareness among early

adopters.

8.4

8.4.1 Product Life Cycle

Product Strategies


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Growth:

In this stage, both sales and profits of our product are expected to rise rapidly. To penetrate

the market, we will try to reduce cost per unit by producing more units. Growing number of

both customers and competitors are expected in this stage. We will try to maximize our

market share by building intensive distribution. In this stage, we will reduce the promotional

activities and will conduct market survey research to know consumer demand.

Maturity:

We expect to have our highest profit in this stage. Peak sales will occur as a result of low cost

per customer. Majority of the target consumers are expected to use our shampoo and hair

color in this stage. Our objective will be maximizing profits while defending market share. In

this stage, we will start to introduce our other brand that is Active detergent power with

feature of Ritha. We will set the price to match or beat competitors. Distribution strategy will

be more intensive, that is consumers will be getting our product more easily in nearby stores.

Advertising activities will stress brand differences and benefits. Finally we will increase

promotional activities to encourage brand switching.

Decline:

In this stage of our product life cycle, both sales and profits will be declining. Cost per

customer will be low, as we will reduce our expenditures. We will also phase out weak items

that are unprofitable. Price will be cut off and promotional activities will be reduced to a

minimal level. In this stage, we will again go for selective distribution. Finally, advertising

activities will be reduced to level needed to retain loyal.


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The Company established the price of its new product Henna Natural Shampoo & Hair

Color with the concept from cost based pricing. According to our calculation the cost ofshampoo is 5ml-Tk 2.73, 100ml-Tk 60, 200ml-Tk 119, 400ml-Tk 230 and we set our selling

price 5ml-Tk 3, 100ml-Tk 85, 200ml-Tk 160, 400ml-Tk 300.

We will primarily use our own distributors for distributing our new product Henna Natural

Shampoo & Hair Color. Then, we will make some new channels and assign some newdistributors to promote our new product to all over the county.

For the Henna Natural Shampoo and hair color we will choose most successful advertising

channel which will be through NTV, Channel I, ATN Bangla and RTV, which are the most

popular television channels in the country. We will also use some bill-boards and leaflets and

we will hold a sport event for the young generation to promote the product. May be, we can

use Grameen Phone in our marketing through their sms service.

Our marketing mix for the new product Henna Natural Shampoo and hair color is as follows:

Our product will enable our customers to have a different experience to test in using Shampooand hair color. They will be able to differentiate our product in quality which is unique in the

Shampoo and hair color market. They will not be able to feel the same way for the other

Shampoo and hair color in the market.

In the current market of Bangladesh, there is a number of Shampoo and hair color products

exist. Through the market research we have revealed that most of the shampoo productsprice is Tk140 to Tk170 for the 200ml except Garnier which price is Tk185.

8.5 Pricing Strategy

8.7

8.8

Marketing Communication Strategy

Marketing Mix

8.6 Distribution Strategy

8.8.1

8.8.2

Product marketing

Pricing


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The most successful advertising and promotion has been trhough the following:

Sales Promoters recruit

Newspaper Advertisement: The Prothom-Alo, the Janokantho, the Jugantor, the

Daily Star, the Independent etc.

Television Advertisement: Channel I, ETV, BTV, NTV, ATN TV & Chanel 1 etc.

Radio: Bangladesh Beter, Radio Furti, Radio Today, Radio Amar etc.

Leaflets: Distribution about the product in different areas.

The first goal is to recognize everyone as they come into the store. If they are a repeat

customer, they are referred to by name. Our store will be staffed with high energetic sales

persons who will dedicate their most of the time to customers that want assistance when they

need it. The store is designed so a customer can look at our products. We provide service in a

way that no other competitive retail store can touch. It is one of our greatest assets and points

of differentiation. Insight, ideas, inspiration, and fun are the goal. Repeat, high dollar

purchases from loyal customers are the desired end product.

Our company offers best quality Shampoo and hair color with different packages to

customers at a very reasonable price. By using our Shampoo and hair color they can easily

find out the basic differences of the quality of the Shampoo and hair colors comparing with

other companies.

Depending on the market researchers information and considering the growing demand of

detergent powder, we are going to launch a new product Henna Natural Shampoo and hair

color in the market. The marketing strategy of our company will be based on a cost effective

and quality service to each of its target segment. Our main focus will be on utilizing all of its

resources effectively and efficiently to continually serve its customers with satisfaction

through producing best quality product.

8.9 Marketing Research

8.8.4

8.8.3

Service

Promotion


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Our marketing research department found the opportunity to provide our customers a new

facility using Shampoo and hair color. The industry already contains some products. But we

found that there is no Shampoo product containing the smell of the Henna flavors. Our

marketing research department surveyed the market and found that there are many potential

buyers for our product which will satisfy their needs. So, we have the opportunity to enter the

market and fulfill the gap. We are going to offer the smell of Henna to Shampoo and hair

color with a very reasonable price so that customer can easily select it to use.

Md. Rajibul Haque will hold the overall responsibility for marketing strategy and direction.

The following is our structure of our company

Figure 1.2: Flashback Private Ltds Marketing Organization

Our company will be introduced in June 2010. Following are summaries of the action

programs we will use during the first six months of next year to achieve our stated objective.

JuneWe will initiate a Tk 2, 000,000 trade sales promotion campaign to educate dealers and

generate excitement for the product launch in June. We also exhibit our product in the

International Trade Show and provide samples to selected product reviewers, opinion leaders,

and celebrities as part of our public relation strategy. Our training staff will work with sales

personnel at major retail chains to explain our Shampoo & Hair Color features, benefits, and

competitive advantages comparing with other companies.

8.10

8.11

Marketing organization

Action Programs

Md. Rajibul Haque

Chief Marketing Officer

Samia Srity MahamudSales Manager Tasnuva TanzinAdvertising Manager Tahira KhanPromotion Manager


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July

We will start an integrated print/radio/internet campaign targeting our targeted consumers.

The campaign will show how effective our Shampoo & Hair Color is.

August

We will promote consumers sales promotion tactics to attract our customers.

October

We will hold a trade sales contest offering prizes for the salesperson and retail organization

that sells the most Henna Natural Shampoo & Hair Color.

November

Our plan is to roll out a new national advertising campaign this month. The radio advertises

will feature celebrity voices to attract customer by informing how they are benefited from the

using of the detergent powder.

December

We will show our advertisement on various channels like Channel 1, ETV etc. we think this

kind of advertisement will help lot to attract customers.

Demonstrating product features reveals a limited market driven functionality after scaling

product production.

Action Plan:

Develop production prototype.

Determine production process

Select equipment Design field support system Demo product features

The reality of the market is rarely as planned. Market acceptance and competitor response

may be different than anticipated. Limited repeat business can cause uncertainty

Chapter # 9 Risk Assessment

9.1 Product Risk

9.2 Market Risk


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Action Plan:

Establish market relationships

Conduct limited sales

Analyze sales Survey customers

Refine marketing plan

Lack of focus as the company moves from a emerging environment to a true business mode

of operations.

Action Plan:

Establish business function

Hire staff

Execute contracts

Secure first-stage financing

The burn rate exceeds capital and management tends to focus on safes rather than profits.

Action Plan:

Focus on bottom-line profits

Eliminate costs

Implement fundraising strategy

9.3 Business Risk

9.2 Finance Risk


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Financial PlanChapter # 10

10.1 Financial Statement


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We are forecasting to sale out product mainly on direct sales through dealers. We assume that

our growth rate will increase directly through direct sellings. Our dealers will sale it to the

buyer, from the buyer it will go the retailers, and finally our product goes to the final

customers. Since it is an internet age if there is any buyer wants to get out product through

internet than another strategy will grow for that side.

All of our administrative members are planning to measures to closely monitor quality

and customer service satisfaction to achieve our goals. This planning will enable us to

very quickly in correcting any problems that may occur. Other early warning signals that

will be monitored for sings of deviation from the plan include monthly sale and Monthly

expenses.

In conclusion we can see that, the product the company is going to launch has a bright

future in its market. As the product is innovative, the consumers are going to appreciate it.And according to the R&D (Research and Development) department this product will be

a strong product mix for our company and once our Active detergent powder will

reach to the hand of every of our targeted customers.

ConclusionChapter # 11

ControlChapter # 10

10.2 Sales Forecast


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Reference:

1. http://www.hennaforhair.com/science/index.html

2. Enterpreneurship, Six Edition, Robert D Hisrich.

3. http://www.yeabiz.com/pdfs/Importance%20of%20Entrepreneurship%20-%20Justin%20Barker.pdf

4. Entrepreneurship, Small Business and Lives of Successful Entrepreneurs, SecondEdition, Dr. A R Khan.

5. Accounting Principles, Eight Edition, Donald E. Kieso.
http://www.hennaforhair.com/science/index.htmlhttp://www.yeabiz.com/pdfs/Importance%20of%20Entrepreneurship%20-%20Justin%20Barker.pdfhttp://www.yeabiz.com/pdfs/Importance%20of%20Entrepreneurship%20-%20Justin%20Barker.pdfhttp://www.hennaforhair.com/science/index.htmlhttp://www.yeabiz.com/pdfs/Importance%20of%20Entrepreneurship%20-%20Justin%20Barker.pdfhttp://www.yeabiz.com/pdfs/Importance%20of%20Entrepreneurship%20-%20Justin%20Barker.pdf


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Phase 2

Appendix 1: Production Plant Layout


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Appendix 2: Equipment Details

The equipments will be imported from Jagdish Export Company. This complete set of

Shampoo and hair color production unit will cost BDT 4,000,000.

Stamping machine Granules Mixer


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Appendix 3: Operational Areas

There will be 7 branch offices in 7 divisions of Bangladesh headed by seven PR officers.

They will communicate with the potential consumers and assist in plan implementation. The

crossed oval points on the map indicate the primary operation areas. The primary target is tomake base on those territories and expand the market share gradually


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Appendix 4: Market Survey

business plan f

Documents