Professional Documents
Culture Documents
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.
1.2 Methodology
To accomplish this assignment we took help the secondary source, that’s the market survey of
the people & we also help from the book & internet to accumulate the data as a primary
source.
1.3 Limitations
Completing this assignment we face lots of problem with scope limitation. These are:
Shortage of time.
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 an
integration 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 Henna’s ingredient.
Mission
Our mission is to provide the quality goods and services to our customers with reasonable
price. We understand the customer demand, that’s why we are going match the consumer
demand by quality goods. We are trying to formulate our product to solve the customer’s hair
related problem.
48
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
4,000,0
Land and land development 00
4,000,0
Factory Building 00
4,000,0
Machine 00
1,000,0
Furniture 00
500,0
IT Equipment 00
1,000,0
Pre-operating Expenses 00
400,0
Contingency 00
Source Taka
Owner Equity 50,000,000
Bank Loan 10% 20,000,000
Total 70,000,000
48
3.3 Company Ownership
“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 huge
market for our product and that’s why we don’t 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.
48
Chapter # 4 Products Review
4.1 Introduction
As consumers need and lifestyles change and as new manufacturing processes become
available, 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 loaded with potentially toxic chemicals which
are harmful for our environment. 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.
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 safe
and effective coloring of hair without causing irritation or any damage to the hair and roots.
Basically, henna makes hair stronger & colorful.
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.
48
4.6 Why we choose this product?
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. Henna
is 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
48
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.
48
Chapter # 5 Market Analysis Summary
“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 three bases.
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 holder
Psychographic:
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.
48
5.1.1 Market Needs
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 customers
want new taste of shampoo and hair color products. On the other hand we have the
opportunity 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 of
shampoo 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 shampoo’s market dominated
by Clear men, Sunsilk, Pantene and Hayden solder. On the other hand, hair color’s 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 this
case, Flashback Private Ltd. must carefully distribute the product to the targeted customers.
48
5.2.1.1 Market Description
“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:
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 produce
shampoo 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 the
country, 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
country’s first Henna product, ‘Flashback Private Ltd.’ will have a competitive advantage
over competitors. Furthermore, Bangladesh’s current economical status allows having the
opportunity of emerging such business.
48
5.4 SWOT Analysis
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.-
5.4.1 Strengths
5.4.2 Weaknesses
5.4.3 Opportunities
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.
48
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.
5.4.4 Threats
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 for
our 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.
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 product’s position for first 6 month,
which is admirable.
48
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.
5.6 P E S T Analysis
PEST analysis contains four factors which directly and indirectly effect the business
operation.
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.
48
5.6.3 Social Factors
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. That’s 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. So
this 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.
5.7 Environment
Micro and Macro environment is going to affect the success of “Henna Natural Shampoo
and Hair Color”.
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.
48
Economic- if people’s 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 becomes
weaker, 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.
Our major competitors in the market are All clear men, Sunsilk, Dove, Pantene and Hayden
solder. 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.
48
Dove: It is another product of Unilever 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 of Unilever 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.
Our major competitors in the hair color market are Garnier, Super speed, Speed-3. Table 1.3
shows 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 Super
Speed 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
48
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 70
Henna 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 will buy an own delivery van to transport the product. Some cases we
will use the railroad and the river to transport our product.
• 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 we
emphasize trade sales promotion.
48
Chapter # 6 Description of Ventures
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
Name Designation
Directors: Directors are the senior most people in the organ gram department-wise. There are
four 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.
48
Authority of Principle
There will be five departments working in our company, which are Finance & MIS,
Accounting, HRM, Marketing and Security department.
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 & company’s security instrument. For the
factory need we should ensure the fast Aid box & the Medical facilities.
The diagram below shows the overall plant of ‘FlashBack’’s sites at Shamoli & Amin Bazer.
In this page we are show the internal environment of the office & factory……
Office Design
48
Factory Plan
48
Chapter # 7 Future objective
Our Marketing objective is to introduce new innovative product in the market and make profit
by 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.
Our third year objective will be to reach 44% of the market share of Shampoo and hair color
product. 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.
48
Chapter # 8 Marketing Strategy
8.1 Mission
Our secondary target market for the shampoo will be the business firms like the lower middle
class 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.
8.2 Positioning
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 positioning
statement 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. We
will 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-
48
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.
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 product’s life cycle, sales are expected to be medium. On the other hand
cost 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.
48
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.
48
8.5 Pricing Strategy
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 of
shampoo 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 new
distributors 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 Shampoo
and 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.
8.8.2 Pricing
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 products’
price is Tk140 to Tk170 for the 200ml except Garnier which price is Tk185.
48
8.8.3 Promotion
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.
8.8.4 Service
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 researcher’s 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.
48
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
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.
June
We 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.
48
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
48
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 48
Chapter # 10 Financial Plan
48
48
48
48
48
48
48
48
10.2 Sales Forecast
We are forecasting to sale out product mainly on direct sales through dealers. We assume that
our growth rate will increase directly through direct selling’s. 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.
Chapter # 10 Control
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.
Chapter # 11 Conclusion
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.
48
Reference:
1. http://www.hennaforhair.com/science/index.html
3. http://www.yeabiz.com/pdfs/Importance%20of%20Entrepreneurship%20-%20Justin
%20Barker.pdf
4. Entrepreneurship, Small Business and Lives of Successful Entrepreneurs, Second
Edition, Dr. A R Khan.
48
Phase – 2
48
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.
48
Appendix 3: Operational Areas
48
Appendix 4: Market Survey
48