Assignment

On
New Business Plan

Mushroom Chips

Assignment no: 02
Course title: Introduction to Business
Course Code: BUS 1102
Sec: NI
Group No: 04

Submitted To:
Piana Monsur Mindia
Lecturer
United international University

Submitted By:
Name

ID

1.Dewan Imran Hossain

111 103 037

2.Rahnuma Yasmin

111 142 051

3.Syeda Zerin Tasnim

111 143 098

4.Sasmin Akter Mukta

111 143 099

5.Nazifa Kamal Preety

111 143 171

6.Nazneen Mahmud

111 143 196

Date Of submission: 28/12/2014

INTRODUCTION_________
Origin of the Report
As we are doing Introduction to business, our course instructor Piana Monsur Mindia
Has instructed us to prepare assignment on Developing New Business Plan (Mushroom Chips).

Purpose
To get a clear concept how to make the new Business plan
To acquire knowledge how to make mission, vision, marketing mix etc.

Limitations
We did not collect the current information related with our product.
We had to give lot of times to collect information about competitors, market situation because
enough information not available.

Time and budget constraints for this kind of research.

Lack of instrumental facilities to get proper information.

Source:
Internet: www.google.com , www.wekipidia .com, Source: thedailystar.net
Other: Collected information from marketing report, magazines, running newspaper.

Company Overview and Product________

About the business:
Our company produces a new product which name is mushroom chips. Mushroom, this name is
not new to us. At first, mushrooms were grown wildly and lived on rotten tree stems in a damp
forest. But following the high demand of the mushroom, it is now being planted by farmers and
used for medicines as well and many kinds of food. People now-a-days have their own choices
and preferences. They are not only seeking for the traditional type of snacks. Tastes, flavor and
nutrition matters to them. We are very much concern about product quality and test. Our product
contains mushroom that is very good for health especially for children. Now-a-days market is
very competitive. There are so many company enters the market with chips so we try to
introduce innovative products and packaging needed to satisfy ever-changing appetites and
tastes. We maintain the highest standard of service to our retail customers through our dedicated
sales force. Our every product is examined by Bangladesh standards and testing institution
(B.S.T.I).Always our product tries to keep their goodwill and quality also.
Visions:
We want to be Asian Number One Chips Company.

Mission:
We want to be number one chips company in Bangladesh and create strong relationship with our supplier
and ensure our customers health security by providing more nutrition.

Objective:
We want to be no # 1 Chips Company in Bangladesh.
After one month, we are collecting our sales review and satisfaction level of our
customers.
Diversification in our product line.
We want to create social value for position in customers mind.

Financial Objective:
Marinating a significant research and development budget.
Double profit will be earned within 3 years.
Increasing production level each month by 1 %
Investing more in Cultivation Of mushrooms.
Establish 3 Big factories for producing large amount of product.
Our Product:
Our product is mainly Mushroom Chips, This retains the nutrients and natural flavor giving
you a healthier and tastier snack choice. Our product is made from the chosen high quality
mushroom to assure the benefit it contains for your body. Mushroom chips are a very healthy
snack prepared with combination of mushroom & potato.
Benefit of Mushroom Chips:
The benefits of mushroom have been discovered by Chinese people hundreds of years
ago. But recently, a researcher from Minnesota Medical School, America, found that
mushroom contained in everyday's meal could help the blood circulation inside your
body.
It also could protect the health of blood vessels. Mushrooms are brimming with protein,
vitamins B and minerals. They're low in calories and may have antibacterial substances to
help the body.
Mushrooms are rich in disease-fighting photochemical, and eating them regularly has
been linked to a lower risk of breast cancer in studies of Chinese and Korean women.
Mushrooms also prevent prostate cancer cells from multiplying in miceand might do
the same in men.
Mushrooms are an excellent source of potassium, a mineral that helps lower elevated
blood pressure and reduces the risk of stroke. One medium portabella mushroom has
even more potassium than a banana or a glass of orange juice. One serving of mushrooms
also provides about 20 to 40 percent of the daily value of copper, a mineral that has
cardio protective properties.

Chips___________
Main Ingredients:
Mushrooms are the good sources of nutrition and this is our main ingredients. The main
ingredients are

White Mushrooms
Vegetable oil
White vinegar
Red Chili Powder
Potato
Sea salt

Process of Making:

Preheat oven to 350 degrees.

Wash, clean, and dry mushrooms. For ease, use the giant caps.
Cut them in half across the top, then in slices about 1/4 inches thick.
Test mushrooms after 1/1.5 hours by taking one out and letting it cool. It should be crispy
like potato chips. If not, re-check them every 1/2 hours or so until done.

Nutrition Facts:
Our Mushroom Chips contains high level of Protein-15.53%, Fat-20%,Saturated fat-1.42%,
Carbohidrated-2.45%, Sugar-2.40%, Energy-100gm, Colastrol-0%, Sodiam-.64%, which is very
much essential for specially kids and young age
production is done by home-made.

Marketing Plan_____________

people. Each and every process of the

The Market Analysis

We know, the market means potential customers of a product or service. Bangladesh is a highly populated
country. The birth rate is very high .As a result the children rate is also very high.
We are producing our product not only for children but also for teenagers, young generation. So our total
target market is very large. Market demands of market will also increasing as much we can position in our
customers mind.

Market Segmentation:
Geographic: We have decided that at first our main focus will be Dhaka. Because large number

of people lives in Dhaka City, it is a very large market and has many customers as well. Later on
we will go for other divisions.

Demographic: Age-5-12, 12-18, 18-24, 24 to others and higher class, middle class of people.

Product related

1. Regular customers
2. Irregular Customers

3.Nagetive customers

Behavior Factors

User enjoys the food not only for health but as a teats enjoyment.
User also spends money on food for different enjoyment of unique teats.

Market Trend
The policy makers has decide to offer different types of popular cartoon and super hero
characters stickers and tutus with per packet of Mushroom chips for Childs and purchase
intensive to the wholesale and retail for sell promotion. By organizing Charity concert, Open
concert, Sports tournament, Reality shows etc; Mushroom chips industries would like to build a
good relation whit people in near future.

Market growth
The price of the soil meet is affordable in all classes of the society from lower to middle and
from middle to higher classes. There for the growth of the market is going up. This is the one
reason the other on is the change the teats of chips. We will start an integrated print, radio and
media advertisement targeting consumers. This advertisement will show our products
differentiation from other competitor. Advertisements also show our products feature to the
ultimate customer. Our Advertisement manager is responsible for those works.

Market Need
Quality

That we are first assuring in our product. It is highly reached by Protein-15.53%, Fat20%,Saturated fat-1.42%, Carbohidrated-2.45%, Sugar-2.40%, Energy-100gm, Colastrol-0%,
Sodiam-.64%, which is very much essential for specially kids and young age people. Each and
every process of the production is done by automatic machine.

Customer service

The customer wants good service to build a strong customer relationship. That has a loyal
customer.

Distribution review
Factory

Warehouse

Divisional Warehouse

Salesman

Retailer

Customer

Our factory situated at Tongi in Gazipur. After producing our products it will store in our
own warehouse Mirpur.

From this warehouse products are distributed 6 divisions by our own transport and then
storing these goods in divisional warehouse.

Then our trained salesman distributes our products in the market to the retailer.

And finally retailers sell it to the ultimate customer.

Target Market
Bangladesh not only has a rapidly growing economy, but is also one of the most densely
populated countries in the world. The economic focus is turning from agriculture to industrial
sectors, even though current economic conditions are not so good. Nevertheless, the snacks
industries have great potential and opportunities for a bright future in the Bangladeshi market.
All types of snacks and chips are great favorites with people of all ages, but especially with
childrens and teenagers. We have decided that childrens, teenagers and young people will be the
target customers of our product Mushroom Chips. Because, most of them prefer to consume
this type of snacks in their home, schools, theatres and so many places. As our product is a blend
of taste and quality with proper nutrition, we are hoping that we will be able to capture our target
audience.

Positioning Strategy
Children, teenagers, and young people, those who are our chips consumers, they often seek for
delicious taste with nutrition. Our Mushroom Chips contains mushroom that gives taste with

good nutrition because it has the highest level of Protein, Fat, Sugar, Cholesterol, Sodium,
Carbohydrate & so on. We have decided to build strong customer relationships by providing
better quality products and we are hoping this will help us to create a positive image in
customers mind with unique potentialities.
Marketing Mix
Marketing mix consist of four basic things which is known as 4 Ps: product, price, place,
promotion under the consideration of our product Mushroom Chips.
a) Product: The Mushroom chips, including all the features described in the product review
section. The product is verified in two ways, first by the size and second by the taste of
the product 1) Tomato flavor 2) Potato flavor 3) Hot & Spicy flavor.
b) Price: Our Mushroom Chips will be introduced at Tk.14 wholesale and Tk.15
estimated retail price per unit of medium size and Tk.24 wholesale and Tk.25 retail price
per unit of family size product. We expect to lower the price of packets within few
months. Because of the first time at market the company would like to give some
discount to the retailers which will make them some profit. The company is also giving
some credit terms facilities to the wholesaler and retailers.
c) Place: As we are new to the market, we want to make available our products for our
Dhaka city customers through several distribution channels. We will use different
wholesalers, retail stores and super shops like- Meena Bazar, Agora, Shopno and so on.
d) Promotion: For the promotion of our products, we will use attractive print ads, leaflets in
the newspapers. Free sample of our product will also be provided to the students of
school, college, and universities as a promotional campaign. Later on we will think for
TVC.
SWOT Analysis
Strengths:
Without any touch of hand the product is made because of development of technological
skills.

 There are another strength of the company is distribution channels. Our distribution
channel is very strong; relation of the supplier and resellers is very strong.
The product quality is more high comparative to the other competitors, because our main
ingredients is Mushroom which is totally new flavor and taste and also work against for
the cancer.
Because of our good relationship with supplier, reseller and for the good transportation
facility our sale will be definitely increases. Our value delivery network is in strong
position. We are having good relationships with our suppliers for a longer period of time.
Weaknesses:
Although the company is new, it has not established a brand or images in the market
place this is the weakness for the product popularity.
Because of the new product and company importer skills are absence here thats why we
cant includes any internal facilities.
For the first time the mushroom is exit in the market thats why people cant properly
reliable to the product quality.
Financial problem is another weakness of the company like what will be the price Cost
and investment.
Opportunities:

Its an available product but of the new version of taste and quality create a new change
of the customer taste.
For the technological changes and advances its easier to give any information and
promotional activities to know the product popularity to the people.
If the government changes policies then it will be easy to access the product to the
market.
Availability of the raw materials is increasing day by day which is help to produce more
products.
Threats:
If government is increase the taxes and the political issues are not favor then it will be the
threats for the company.

 The product may not be accepted to the people then it will be the great threats for the
company.
The product competitor rate is very high thats why sometimes we are facing many
competing problem, which can be a threats of the company.
Company establishment rules and regulation is strict thats why sometimes to take any
easy decisions are create complicated situations.

Competitors_________
There are companies have grabbed over 80 percent share of the country's branded-chips
market, driving others almost away from the scene. They have a strong competition among
themselves. As a result it is very tuff to build a strong competition in market.
Such Competitors like
1. Product: Cheese Ball
Product Code: CB
Product Description:
CHEESE BALL is an extruded product made from corn and rice and coated with rich cheese
powder. It is superb in taste and something to be enjoyed all the time.
Ingredients: Corn, Rice, Salt, Vegetable Oil, Cheese Powder & Seasoning.

2. Product: Mr. Twist

Product Code: MT
Product Description:
Mr. TWIST is especially attractive to youngsters. This potato based snack has a certain amount
of modified or native starch to give it a beautiful twisty shape and fine texture. Available with
tomato paprika flavor.

Ingredients: Potato Powder, Modified Potato starch, Native Potato starch

3. Product: Potato Crackers
Product Code: PC
Product Description:
POTATO CRACKERS is a very popular snack prepared with combination of wheat, starch
together with potato. It is a light, crispy snack and less oily. It has an average food value and is
available with spicy tomato flavor.
Ingredients: Potato Powder, Potato Starch, Wheat flour, Refined Vegetable Oil and Seasoning.

Forecasted Financial Plan and Budget________

Supporting calculation for forecasted breakeven analysis:
Per unit cost
fixed cost
variable cost
total cost
Unit Production
Per unit Cost

Break even unit sales

500000
990000
1490000
130000
11.46154

Per unit sales

Per unit variable cost
Per unit contribution

15
7.615385
7.384615

Break even sales in unit

67708.33

Expected Profit

Expected Revenue
Sales
Variable cost
Revenue

1950000
990000
960000

Financial

Revenue
Fixed Expense
Profit

960000
500000
460000

Plan:
Fresh mushroom
chips
Cost of project
Item

Amount

Plant and machineries

Operative
expense
Miscellaneous Assets
Contingency on machinery
Total cost

500000

5%

400000
170000
25000
1095000

Note: Operative expense includes License & approval, Patent & trademarks, Product development
Cost and infrastructure development

Fresh mushroom chips

Source of fund
Item

Amount

Member's contribution
Bank loan
Other source

600000
250000
245000
Total

1095000

Note: Other source includes family contribution, friends contribution

Forecaster Income statement for five years:

Fresh mushroom chips

Forecasted income statement
For 2014-15 to 2018-19
2014-15

2015-16

2016-17

2017-18

2018-19

1500000
750000
750000

1600000
800000
800000

1750000
825000
925000

1950000
910000
1040000

2100000
915000
1185000

Selling expense
General & Admin. Expenses
Depreciation
Other expenses
Earnings before interest and
taxes

150000
85000
25000
32000

165000
91000
25000
54000

180000
95000
25000
60000

183000
97000
25000
58000

189000
100000
25000
62000

458000

465000

565000

677000

809000

Interest expense 5%
Earnings before taxes

12500
445500

12500
452500

12500
552500

12500
664500

12500
796500

Tax
35%
Net Income

155925
289575

158375
294125

193375
359125

232575
431925

278775
517725

Sales
Cost of goods sold
Gross operating income

Forecasted Balance sheet for five years:

Fresh mushroom chips
Forecasted balance sheet
For 2014-15 to 2018-19

Assets
Cash in hand
Account receivable
Inventories
Other current asset
Total current asset

2014-15

2015-16

2016-17

2017-18

2018-19

250000
430000
390000
222000
1292000

270000
560000
410000
245000
1485000

260000 280500 300000

510000 490000 550000
415500 435750 455000
240000 270000 295500
1425500 1476250 1600500

Conclusion__________
Mushroom this is not new to us. At first mushroom were Grown widely and lived on rotten tree
stems in a damp forest. But following the high demand of mushroom it is now being planted by
farmers and use for medicines as well and many kinds food. People now-a-days have their own
choices and preferences. They are not only seeking for the tradition type of snacks. Tastes, flavor
and nutrition matters to them.

Reference __________
http://www.recipesource.com/fgv/vegetables/mushrooms/00/rec0053.html

http://www.malaysiabest.net/2006/03/06/snacks-mushroom-chips/

http://ihor5.freeyellow.com/mushchip.html
http://banglapedia.search.com.bd/HT/M_0416.htm
http://www.mushroomlovers.com/Health.htm