Professional Documents
Culture Documents
0 Introductory Thoughts
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2.0 Business Proposal
Mrittika - a super shop will be a place where all the exquisite and traditional items
available in Bangladesh will be sold. Through this super shop, we want to present the
flavor and culture of our country. In one roof, all the authentic products of our country
will be presented to the customers. This shop will be very helpful in preserving our
heritage and the ancient arts of our country which are in the danger of extinction.
The product category will be broad, inclusive of all the authentic and traditional products
of Bangladesh, ranging from handicrafts, food items to other products as well. The
products that will be sold in the shop will be collected from the authentic craftsmen so
that the genuineness of the products stays in tact. This type of a venture will be the first in
Bangladesh, as no other shop has such a diversified product range.
The super shop will be targeted to fulfill the needs of middle class and upper class
citizens who are in constant search of unique items. Mrittika will have branches in the
central business area of Dhaka and Chittagong which are the cosmopolitan cities of
Bangladesh. There will also be a branch in Sylhet. Gradually other cities of the country
will have more branches of this shop.
We also propose to establish three outside branches of the shop in Saudi Arabia, Dubai
and London – all these places have a huge number of Bangladeshi immigrants living
there. Our target customers in abroad will be the Bangladeshis who miss our culture and
heritage. Depending on the success of these branches, two other branches will also be
established in any other country of Europe and United States.
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The products that are planned to be sold in Mrittika include jute products, Tangail sarees,
Rajshahi silk sarees and clothing, Khadi clothing from Comilla, ethnic tribal clothing
from Rangamati and the tribal areas, and handloom clothing from Sylhet. Also included
will be food products such as Bogra’s famous Dahi and sweets, Rashmalai and other
famous sweets from Comilla, dried fish (shutki) from Chittagong and Cox’s Bazar.
The products that will be sold in the shop will be brought directly from the local
producers from different regions of Bangladesh. The production of the items to be sold in
Mrittika will not require any additional production cost as the producers will be using
their original resources. This will lower the cost of production and hence the price of the
products will be low.
Another factor for the low price is the low transportation cost as distribution channels
will be hired to deliver the items from the producers to the stores. This will also eliminate
the existence of middlemen, which will reduce extra costing. We will set the prices of the
products according to the price levels of our competitors. This will make our prices
attractive to the customers and prevent us from charging excessive profit.
At the primary stage of the business, we plan to set up branches of ‘Mrittika’ in three
cities of Bangladesh, the capital Dhaka, Chittagong and Sylhet. Because Dhaka is known
to be more cosmopolitan than the other two cities, it will have two branches. The other
two cities will have one branch respectively. Our short term goal will be to establish these
shops by attracting native customers who are tradition and art lovers and are in search of
ethnic items.
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natives of these countries who are interested in Bangladeshi cultures and heritage. Other
parts of the world will be covered as will depending on the success of these shops.
The main concept of Mrittika is to promote the ethnic products of Bangladesh, which are
produced locally by original artisan. To serve our purpose and to maintain the
authenticity of the products, they will be collected from the original producers a there
already exists the demand for traditional goods, we hope to have a gradually increasing
market for our product.
The idea is to capture the market at a slow rate and gradually increase the demand by
attracting potential customers. There is already an existing market for traditional clothing
and handicrafts, so we will try to capture the market of our competitor and overcome
them by offering a much more diversified product line.
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3.0 Industry Analysis
One of the potential competitors to our market is Aarong, which has been in this industry
for more than 10 years, and has branches in all the metropolitan cities of our country.
Though the product line of Aarong and ours is exactly not the same, we still would have
to face competition from them as they have existing customers and a huge market that are
already very much used to their products. The uniqueness of our product line will help us
drive their existing customers towards us and create our own market. Other competitors
in this market are Probortona and Kumudini Crafts, who also produce traditional items
and have their own indigenous producers whose products also are very mush liked by
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customers. There are also other small traditional good sellers, but their market is very
small and they would not be of any kind of threat to us.
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3.2.3 Social and human factors:
We collect all the products from various places of Bangladesh and
all these products and foods are Bangladeshi products and foods. So by differentiating
these products we can maintain the local culture of Bangladesh. And by this we all can
know the cultural differences among the districts. We will have a strong background and
attachment to the society of Bangladesh. By doing all these we can maintain and continue
our culture and heritage as well. This also involves the human factors. By using these
products people of Bangladesh can do their responsibilities that they have to the society.
Cultural assimilation with the people is very important.
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to continue and to stay in business. So we have to aware about this. And at the very
beginning we will work for it. To stay in business and to remain the brand value at a
peak.
3.2.6 Capabilities:
Capabilities refer to the firm's ability to utilize its resources effectively. An
example of a capability is the ability to bring a product to market faster than competitors.
Such capabilities are embedded in the routines of the organization and are not easily
documented as procedures and thus are difficult for competitors to replicate. We have the
capability of coordinating our skills and also using our resources effectively and
efficiently.
Our main target market will be the middle and upper class customers who posses a strong
sense of interest for products that have traditional values. We have segmented our target
market on the basis of three factors: income, nature of product and geographical
segmentation. These sectors are broadly discussed below:
Income: Our target market will be from the income level of TK.12, 000 and
above. People from this income level and above will be induced to buy our
products. Our products are such that people will want to buy our products after
they have satisfied their basic needs. So, people belonging to the niche level of
income are expected to be our customers.
Nature of product: Our customers will be those people who are interested in
traditional products and artifacts. Basically our super shop will contain
handicrafts, clothing and food items, so people who admire traditional items
and are, in a sense, art lovers will be attracted to our products.
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Geographical segmentation: Primarily we will establish branches in our
capital Dhaka, Chittagong and Sylhet. People living at Dhaka do not get to buy
traditional products from Chittagong and Sylhet. Our super shop will solve
their problem by presenting products from these cities to them.
Depending on the success of our super shop and the existing demand for them among the
customers, we will increase our product range. This will be somewhat depended on the
products that customers may seek for which we will not be selling. At the initial stage, we
will start with the traditional items that are much popular among the customers, which are
known and have an existing market. After five years, we will bring the products that are
not much known but are produced locally and can have potential market among the
customers.
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4.0 Description of the venture
4.1 Product:
The products that are planned to be sold in Mrittika include jute products, Tangail sarees,
Rajshahi silk sarees and clothing, Khadi clothing from Comilla, ethnic tribal clothing
from Rangamati and the tribal areas, and handloom clothing from Sylhet. Also included
will be food products such as Bogra’s famous Dahi and sweets, Rashmalai and other
famous sweets from Comilla, dried fish (shutki) from Chittagong and Cox’s Bazar.
Efficiency: Productivity leads to a greater efficiency and lower costs. Productivity can
be 2 types. They are employee productivity and capital productivity. We will reach full
capacity of products as soon as we can create a strong supplier base. Gradually, we will
extend our product line. These activities will help us to achieve higher efficiency through
both employee productivity and capital productivity.
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Quality: Superior quality is customer perception of greater value in a specific product
attributes, for example form, features, performance, durability, reliability, style, deign
and etc. Customers perceive higher value in quality products that are reliable and
differentiated by attributes. The impact of quality on competitive advantage is that greater
efficiency and lower costs are associated with reliable products. We will ensure that
customers feel comfortable with our product and prefer our product to others due to
higher quality.
Superior
Quality
Competitive
Advantage:
Superior
Superior
Customer
Efficiency - Low Cost
Responsibility
Superior
Innovation
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FOOD:
Food Origin
Rasmalai Comilla
Dahi Bogra
Sweetmeat Tangail, B’Baria
Bikrampur, Natore
Honey Khulna
Cake Norshingdi
Molasses Madaripur
Tea Sylhet
Fruit Rajshahi
Prawn Bagherhat
Hilsha Chandpur
Crab Cox’s Bazar
Dried Fish Chittagong
Table: 1.1 (Food)
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Sweetmeat Tangail, B’Baria Sweetmeat Bikrampur, Natore
Bhapa pitha
Puli pitha
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Mud Crab Scylla serrata Dried Fish Chittagong
Tea Sylhet
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Honey Khulna
CRAFT:
Craft Origin
Nakshi Kantha Jamalpur
Bed cover Sylhet
Shital Pati Sylhet
Jute Product Mymensing, Comilla
Bamboo product Sylhet
Cane Product Sylhet
Furniture Sylhet
Table:1.2 (Craft)
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Cane products A typical nakshi kantha
CLOTH:
Cloth Origin
Silk Rajshahi
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Khadi panjabi Comilla Silk Rajshahi
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Bed cover Sylhet, Rangamati Sylhet Saree Sylhet
At the primary stage of the business, we plan to set up branches of ‘Mrittika’ in three
cities of Bangladesh, the capital Dhaka, Chittagong and Sylhet. Because Dhaka is known
to be more cosmopolitan than the other two cities, it will have two branches. The other
two cities will have one branch respectively. Our short term goal will be to establish these
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shops by attracting native customers who are tradition and art lovers and are in search of
ethnic items.
Licensing cost for starting the business and other initial costs regarding infrastructure
facilities such as electricity and telephone will be required. Capital expenditure will be
needed for building, equipments such as refrigerator, air conditioner, computers, pickup
vans, etc.
4.4 Personnel:
Personnel required to operate the business can be divided into five sectors: Salesmen,
Supervisor, Manager, Storekeeper and Distributor
Table: 1.4 (Personnel)
Dhaka(2 shop) No. of Persons Ctg. & Sylhet No. of Persons
Salesperson 10 Salesperson 4
Supervisor 2 Supervisor 2
Manager 2 Manager 2
Store Keeper 2 Store Keeper 2
Distributor 4 Distributor 2
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5.0 Operational Plan
The product line included in Mrittika will be collected directly from the original regional
producers from each division of Bangladesh. These goods will be brought on daily,
weekly or monthly basis depending on the nature of the product and demand for the
product. Perishable items such as food items will be brought on daily and weekly basis,
and products such as clothing and handicrafts items will be brought in monthly basis.
At the initial stages of our operation we will negotiate with regional producers of
traditional goods to provide their items at low cost. A negotiation contract will be created
to ensure the profit of the producers. To maintain our delivery system, several
distribution channels existing in our country will also be contacted. To start our
operations, all the products will be brought to the shops with the help of courier service
or other distribution channel, such as S.A.Paribahan. The delivery of the goods will be
depended on the demand.
As we plan to set up our branches in three divisions of Bangladesh at the initial stage, we
will design our distribution channel on that basis. For the two branches in Dhaka, two
distributors will be appointed for each branch. As we plan to have one branch in
Chittagong and one in Sylhet, one distributor will be appointed for each of the branches.
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The distributors will collect the goods sent by the local producers through the distribution
channel and deliver them to the shops. They will match the products that will be
delivered with the invoice for purchasing the products.
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Bangladesh. There will also be a branch in Sylhet. Our target customers in abroad will be
the Bangladeshis who miss our culture and heritage.
6.3 Pricing:
Prior to setting the price, in the majority of the situation we need to consider three
important elements; cost, margin, competition. On the basis of following explanation, we
decide the product price as mentioned in financial projection.
6.3.1 COST:
One of important initial considerations in any pricing decision is to ascertain the cost
directly related to the product or service. The major costs of our business are the purchase
cost. The products that will be sold in Mrittika will be collected from local producers at
whole sale rate and will be sold to the customers at retail price. The purchase cost of
projected 1st year for Food item is TK. 946,000 for Cloth item is TK. 2,135,000 and for
craft item is TK. 3,507,000.
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PURCHASE COST (1st Year)
Food
1
2
Craft 3
Cloth
6.3.2 Margin:
As the products that will be sold in Mrittika will be collected from local producers at
whole sale rate and will be sold to the customers at retail price, it is expected have a
sound margin corresponding year. As it is also expected that the demand for the
traditional product is growing, the margin will also increase.
1200000
1000000
800000
600000
400000
200000
0
1 2 3 4 5 6 7 8 9 10
YEAR
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Graph: 1.1 ( Net Operating income)
6.3.3 Competition:
As we are presenting a venture which is completely new in Bangladesh, we do not have
any direct competitors in that sense. No other shop provides the facility of selling such
diversified traditional items of our country in one place. We can face indirect competition
from shops which sale traditional products, for example Aarong and Probortona, but they
do not sale any traditional food items. As their product range is not as wide and
diversified as ours, we do not expect any direct competition from them.
6.4 Distribution:
To maintain our distribution system, several distribution channels existing in our country
will also be contacted. To start our operations, all the products will be brought to the
shops with the help of courier service or other distribution channel, such as
S.A.Paribahan.
For the two branches in Dhaka, two distributors will be appointed for each branch. As we
plan to have one branch in Chittagong and one in Sylhet, one distributor will be
appointed for each of the branches. The distributors will collect the goods sent by the
local producers through the distribution channel and deliver them to the shops. They will
match the products that will be delivered with the invoice for purchasing the products.
6.5 Promotion:
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• Advertisement:
Advertisement will be given at Newspapers & Billboard. Also Leaflets & Posters will be
festooned at different crowded places. At the beginning advertisement will be given four
times in a month on newspaper. Before starting the shop two billboards will be placed at
Gulshan & Dhanmondi.
• Website:
A website will be developed about our tradition, and information about our operation
will also be explicated. In this website existing products & price will also be available.
• Special arrangements at various festivals:
There will be special arrangement on various traditional and religious festivals such
as Nobo Borsho, 1st Falgoon, Nobanno, Eid, Pooja etc.
Home Service:
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7.0 Organizational Plan
Number of positions: 1
Responsibility:
Number of positions: 1
Responsibilities:
Number of position: 1
Responsibilities:
Number of position: 1
Responsibilities:
Responsibilities:
Sales
Sales Sales
Sales
Manager
Manager
Sales
Sales 29
Manager
Manager Manager
Manager
Distributor
Distributor
7.4 Employees and Salaries:
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Distributor 2 2500
Total 23000
Table:1.5 (Employees and Salaries)
The major portion of our saleable products will be collected from local producers. If their
production rate falls, we will not be able to provide goods to customers in time. In search
of higher profit, they may switch to producing other products, which will expose to the
shortage of suppliers. In a country like Bangladesh, transportation system is not very
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reliable and at times it can be very high. This will increase our production cost and as a
result we may have to increase our pricing level.
The total security system of our country is not very strong, so there exists a risk of
storage transportation. Sometimes the lack of proper security of the goods in storage can
be stolen or destroyed by others. The overall political situation of Bangladesh can
sometimes impede the smooth flow of business activity and for that reason we may not
be able to run our business properly.
Our anticipation of profit is entirely based on the rate of GDP growth of Bangladesh. If
the GDP growth of our country falls, our anticipation may be wrong, and we will face
significant amount of risk. However, this type of risk will not affect the profit of our
overseas branches. If we are able to launch shops in all parts of our country, as well as
abroad, the effect of this risk will be lowered to a minimum level.
• Strength:
• Weaknesses:
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Transportation problem: Items from different parts of the country will have
to be collected, so an efficient transportation service is needed.
Limited resources: We will have to work with limited resources.
Perishable agricultural products: Some of the products that will be sold in
the shop are perishable products, such as food items, which need to be
preserved to maintain quality.
• Opportunities:
• Threat:
Existing market: There is a potential threat from shops who sale traditional
clothing and have an existing markets for their products. As they are
experienced, they have better strategies of attracting customers.
If we fail in the business, then our contingency plan is that we would like to
join with any renown super shop who has same types of business.
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9.0 Implementation Plan
The products that will be sold in Mrittika will be collected directly from the local
producers. These producers collect their resources for the cause of production from their
own sources. Our objective will be to provide financial help to these producers by giving
them micro credit loans which will help them to run their production process more
smoothly. There are inherently some potential investment sectors related to our business
project where commercial can help us by providing sufficient loans and other financial
help. This will also increase the bankability of our business project. As well as collecting
traditional items from different parts of the country, we will collect textile goods from
Rangamati, which is also a potential sector for investment. If we can provide loans to the
craftsmen of this region, they will be able to produce high quality products at a
convenient cost.
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9.1 Related Future Potential Investment Sectors:
Textile:
In spite of having quality products, some textiles cannot exist in market for lack of
capital. An example of this is the Majumder Textile of Rangamati, which has closed its
production due to the lack of proper funding and investment proposal. After carrying out
proper research and investment viability, HSBC can invest for short & long term period
in these sectors, so that, they can continue their production. These productions will
eventually be our products.
We have also plans of taking lease of some of the mango orchards situated in Rajshahi
and Dinajpur and the litchi orchards in Dinajpur. The productions in these orchards will
be sold in our shops.
HSBC can implement a Micro Credit Scheme along with our plan for improving the
living standards of the people of Bangladesh. They can select some villages (for example,
Burichong Thana, Comilla District) for Micro Credit investment with low interest rate.
The people of these villages will produce Khadi and Batik, which are the traditional
products of Comilla. These local producers will provide us with goods, and we will create
a negotiation contract with them which will ensure profit from the sale of the products.
Moreover, banks can also implement Micro Credit Scheme in sectors like jute products
and cottage industry. The productions from these sectors are related to our sale of goods
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10.0 Financial Plan
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Expenses
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10.3.1 Profit Margin Ratio :
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11.0 Concluding Thoughts:
The business plan that we have presented is indeed a fine blend of business concept and
an effort to reserve our heritage and culture with commercial purpose. To justify this
plan, we have presented an economic and industry analysis, along with a proper
description of the business venture including production details, elaboration of the
product line and other related services. The marketing plan has been made keeping in
mind the current market situation of this industry, also considering the demand of the
customers. The organizational layout of the business is that of a partnership, so we have
presented relevant data for it too. The roles and responsibilities of the members of the
organization have been well defined as well. The financial plan portrays a hypothetical
assessment related to the business, which reflects profits and other financial projections
for five years. The financial plan is also supported by ratio analysis, break even analysis,
and NPV and IRR calculations. The business plan is an effort to meet up with the ever
growing business sector of our economy and to explore a new dimension of
entrepreneurial ventures.
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