Business Plan

For Cabbage
Chips
 Business Plan
on
Cabbage Chips By Bombay Sweets Company
Course Title:
Principles of Marketing

Course Code:
MKT-311

Submitted To:

Fatema-Tuz-Zohora Nadee
Chairman & Assistant Professor
Department of Marketing
University of Barisal

Submitted By:
“GLOWING STARS”
Department of Marketing
University of Barisal

Date of Submission:
03-04-2018
 Student’s Profile
Group Name: “GLOWING STARS”
Sl. No. Name Id. No. Remarks

01. Miraz Hossain 16 MKT-019

02. Sajib Biswas (G.L) 16 MKT-020

03. Samrat Dhali 16 MKT-026

04. Md.Nazrul Islam 16 MKT-028

05. Farjana Yeasmin 16 MKT-039

06. Firoj Ahmed 16 MKT-051

07. Mohammad Abdullah Al Rakib 16 MKT-056

 Table of Contents
S.L Contents Page
Title Page I
Group Profile II
1 Executive Summary 1
2 Company History 1
3 Environment Analysis 2
3.1 Economy 2
3.2 Culture 2
3.3 Technology 2
3.4 Competitors 2
4 Industry Analysis 3
4.1 Industry Background And Overview 3
4.2 Key Success Factors 3
4.3 Market Growth 3
5 Description Of Venture 3
5.1 Vision 3
5.2 Mission 3
5.3 Goal 4
5.4 Nature Of Business 4
5.5 Product And Service 4
5.6 Size Of The Business 4
6 Business Strategy 4
7 Marketing Strategy 5
7.1 Target Market 5
7.2 Customers Motivation To Buy 4
7.3 Pricing 5
7.4 Advertising And Promotion 5
7.5 Distribution Channels 6
7.6 SWOT Analysis 6
8 Location And Layout 8
9 Competitors Analysis 8
10 Description Of Management Team 9
11 Production Plan 9
11.1 Raw Material 9
11.2 Find Suppliers 9
11.3 Production Cost 10
12 Operational Plan 10
13 Organizational Plan 11
14 Financial Plan 11
15 Loan And Investment 16
16 Conclusion 16
17 References 17
18 Appendices 18
 1. Executive Summary:
Bombay Sweets & Co. Ltd. has been operating its business in Bangladesh for a long time
with an admirable reputation. The area of business operation of the group is large. Chips are
popular snacks item in our country now a days. Within a short time this product has ensured
its position both in urban and rural area. The market size is fairly large and it is expanding
day by day. This plan analysis the current situation, followed by different opportunities and
threats, then Marketing and financial objectives, Penetration Pricing will be the pricing
strategy for our business, as our product is new and at the busy street of Barisal where
competition is huge, so the company tries to give good quality at low price to penetrate in the
market and try to achieve higher sales volume to set low price and better quality strategy.
Then the company prepares their financial plan by preparing pro forma income statement,
cash flow projections, pro forma balance sheet and break even analysis. There are a lot of
challenges that we will have to face. So, we follow some strategy to recover those
disadvantages. Subsequently action programs, afterwards it also discusses the budget, then
discuss management team and finally the conclusion. The cost of the product (each) would be
8 taka on packets, and the price would be 10 taka. Targeted markets are separated into two
segments such as children, youngest. Cabbage Chips providing chips with very testy and
healthy including cabbage nutrition.

2. Company History:
Bombay Sweets & Co. Ltd. boasts an illustrious, decorated past. Established in 1948, it has
been a leader in consumer foods for many decades, both in Bangladesh and abroad. Although
initially the company served its customers from their own outlets, presently the company has
over 200 distributors spread across the country.

In the new millennium, Bombay Sweets has strived to continually introduce quality
innovative products and packaging needed to satisfy ever-changing appetites and tastes. Its
full line of quality snacks currently consists of more than 20 products, consisting of potato,
corn and cereal based products. All are available in a variety of shapes, sizes and flavors. Its
dedicated sales
 3. Environment Analysis:
3.1 Economy:
Bombay sweets company is a reputed company in our country. The company produces a lot
of food items. By adding a new product(Cabbage chips), company increased their output
level. As a result it impacts our GDP.

3.2 Culture:
The company has to be followed the value of the customer, beliefof the customers and
attitude of the customer. The people of our society believe that the vegetable(Cabbage) has a
lot of nutria’s value. Generally the children try to avoid vegetables but they have a great
attraction on chips. So the company produces chips with cabbage and tomato.

3.3 Technology:
Food and beverage industry new technologies are used frequently. So, the company has taken
contingency plans given any new technological development that may affect their product.
They will prepare their products with highest quality by using the latest technology available
in our country so that they can always be in first level competition among all of our
competitors. The company does not want to compromise in case of quality product.

3.4 Competitors:
The main competitors of Bombay Sweets Cabbage Chips are………
 Meridian
 Ruchi
 Sun
 Pringles
 Lays
 4. Industry Analysis:
4.1 Industry Background And Overview:
Cabbage chips is included in food and beverage industry. As a fundamental human need,
food and beverages always have played a central part in our lives. Our ancestors lived or died
according to their ability to grow food, hunt for food, or fight for food. Food became an
important part of the commerce of a society. As societies came into contact with each other,
they also learned of different types of foods available in different parts of the world.

4.2 Key Success Factors:

The keys to success are designing and producing products that meet market demand. In
addition, Bombay sweets must ensure total customer satisfaction. If these keys to success are
achieved, it will become a profitable, sustainable company. For this reason the company can
hire cheap labor and collect moderate raw material.

4.3 Market Growth:

Bombay sweet is a reputed company. So the growth rate of the market is upward.

5. Description of Venture:
5.1 Vision:
The company main vision is to making satisfy the customer and run profitably. Based on their
R&D department they have identified that their new product is in good demand. Most health
conscious people are liking to consume this product as this is ease to consume and time and
cost effective.

5.2 Mission:
“To offer continuous value added products with exceptional package design, quality,
convenient and economical to their customers”.They would like to spread out the product
within the country through better addressing their need and making them satisfied.
5.3 Goal:
The company’s goal is want to be capturing the overall market by providing their new
product.

5.4 Nature of Business:

Bombay sweets are a Joint venture company. The company has many branches in our
country. They distributed their product through dealership. All the branches are maintained
by the central branch.

5.5 Product and Service:

At first the company produces their new product (Cabbage chips) and then provides services.

5.6 Size OF Business

The size of the business is large. They producea different types food items. The company has
many branches in our country.

6. Business Strategy:
Some strategies are given below:
 Quality guaranteed goods.
 Customization.
 Capacity to accept mass orders.
 Well-timed delivery.
 Easy payment modes of Cash.
 7. Marketing Strategy:
7.1 Target Markets

The companies target markets can separate into two segments. The segments are kids and
adults. The segment details are as follows-

Kids:
Kids are vast population of our country and they prefer different test in chips. Kids choose
the product without knowing the product quality or other attributes. They will purchase the
“Cabbage Chips” because of test and packaging.

Youngest:
Youngest are health conscious and therefore they preferred the product that will keep them
fit. They are very much conscious about product quality and price and our product is quality
maintained and affordable.

7.2 Customers Motivation to Buy:

We can motivate our customer by……
 Meeting the demands of market and supply demanded goods on time without any
barrier or hurdle.
 Offering excellent products at low price.
 Making products according to the needs of the customer.
 Providing colorful packaging.
 Providing good behavior to customers.
 Providing after sells service.

7.3 Pricing:
The Company established the price of its new product “Cabbage Chips” with the concept
from cost plus pricing. According to our calculation the cost of our product is Taka 8 taka,
and we set Tk. 10 for our product.

7.4 Advertising and Promotion:

The most successful advertising will be through NTV, Channel I, ATN Bangla, RTV, and
CSB News 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 kids’ generation to
promote the product.

7.5 Distribution Channels:

In the initial stage, we will distribute the products with our sole distribution channel. When
our market will spread out, we will distribute our products through dealers. We will set our
own outlets in few core market positions. When we will go for mass marketing, we will
supply our product nationwide.

7.6 SWOT Analysis:

To develop strategies that take into account the SWOT profile, a matrix of these factors can
be constructed. The SWOT matrix is shown below:
Strength:

 The product is priced lower than other competitive firm. For the price conscious
customer the company offers high nutrias food at a cheapest price.

 Discounts are available for bundle buying.

 Our main resources such as cabbage, salt, vinegar are sufficient in our country.
That’s why we have a plus point about raw materials.

 The packaging is very attractive and draws attention of buyer when lying on the
shelf at the retail counters.

Weakness:

 Marketing expense in the start will be huge.

 As it is a new flavor product, it will be difficult to manage customer for the company.

Opportunities:

 Lower production cost.

 Increasing demand for vegetarian products.

Threats:

 Increased competition.

 Downward pricing pressure.

 8. Location and Layout:
At first the company can select their location in Barisal because, here transportation system is
very good, Supply of electricity is available, Law materials and order situation is well
enough, financial institutions are available in this area, skilled labor are available.
Then the company can established their shop in a people of gathering place. They can arrange
their all product beside their new product in the shop. They can set up only two doors- indoor
& outdoor in their shop. When a customer enters into purchase a product in their shop, he/she
can’t go out without seeing their all product. As a result their new product get popular.

9. Competitor Analysis:
1. Meridian:
There are five distributors of Meridian in Dhaka who reaches the retailer while the sales
office of the manufacturer delivers the products to the wholesalers. The commission is nearly
six percent on sales. No other facilities are admissible to them.

2. Ispahani:
The major help from tea internal division carries out Marketing of Ispahani Snacks. For
Ispahani Snacks there are exclusively some ASO with mechanized vehicle. Beside this every
depot has at least one rickshaw van for selling Ispahani Snacks and all other Aso’s.
The people who sell tea are also carried Snacks to retailers.
 
3. Lays:
 
Lays is the product of India. Now a day, it is so much popular to the people. The  price of
Lays is comparatively high but its quality and taste is outstanding. The people who are the
wholesalers of other chips are the sellers of Lays in our country. They distribute Lays to the
retailers.
 10. Description of Management Team:
Our Management teams are highly qualified as well experienced. All the members of
management team are given below:

Figure: Description of Management team

 Division General Manager: Md.Ashiqur Rahman

 Marketing Manager: Md.Mamun
 Engineering Manager:Md.Faiasl Ahmed
 Employee Relations Manager: XXXXXXXX
 Finance Manager : YYYYYYYYYY
 Manufacturing Manager: ZZZZZZZZZZ

If the management team are highly qualified the investor are more attractive in our business
and willing to invest in our firm.

11. Production Plan:

11.1 Raw Material:
The main raw material of our product is cabbage. The company can collect their raw material
from the farmers directly. Every year we see that a large number of cabbages are wasted
unnecessarily. For this reason by introducing this new product the company can use the
wasted resources properly.

11.2 Find Suppliers:

Since the business is the manufacturing type, they need to find suppliers that will constantly
provide the raw materials and supplies the company will need, such as raw cabbage, oil,
packaging materials, and so on. For each commodity, have more than one supplier, so that the
business won’t suffer if a supplier runs out of the commodity they supply our business.

11.3 Production Cost:

As the ingredients of technology are developing day by day so the company produces their
products at fully automation process as a result they produce maximum product with a
minimal production cost. Available sources are exist in our country. For the combination of
these efforts they are able to deliver their valuable customer maximum satisfaction with a
minimal cost.

12. Operational Plan:

Flow of Orders of Products:

 At first the raw materials are purchased.

 Then the raw materials are sent to the factory.
 The raw materials are processed in the factory.
 After that the finished products are prepared.
 At last the complete products are distributed through dealers.

The company delivers the product by using different types of transportation.

 13. Organizational Plan:
In the organizational hierarchy of this business, the managing director leads to the sales &
marketing director, production director, human resources director and finance director. On
the other hand production director supervise factory manager and quality control manager.
And the finance director supervises management accountant and financial accountant. These
are shown graphically:

Figure: Organizational plan

14. Financial Plan:

This section will offer a financial overview of “Cabbage chips.” as it relates to the marketing
activities. The company has addressed all expenses forecasts with fixed costs and variable
costs and with first six months estimated costs, sales forecasts with the first six months
estimated sales, break-even analysis, and the possible profit after six months in this section.

Sales Forecast:

There will not be enough sales in first month. In the second month the sales will be increasing
at a satisfactory rate. From the third month the increasing rate of sales will be very high. That
means from month three there will be a steady increase in production and sales. Our sales
forecast is 200000 packet chips for the first six months. On an average per piece of chips will
be sold for Tk.10.
 Pro Forma Income Statement (Multiple steps)

Conservative projection of sales Moderate projection (average

(based on current market research) market trends)
Minimum sales
Revenue (Sales)

Cabbage chips of various outlines 11,00,000 18,00,000

Accessories 1,00,000 2,00,000

Total 12,00,000 20,00,000

Less:
Production cost ( 45% of sales)
Gross margin( 55% 0f sales) 5,40,000 9,00,000

Less: 6,60,000 11,00,000

Fixed operating expenses

Rent
In store staff salaries 480,000

Advertisement 7,20,000 1,80,000 7,20,000

Utilities 24,000
36,000

Net profit /loss( EBIT)

(60,0000) 4,80,000
Less:
Interest
30,000 30,000
(90,000) 4,50,000

Tax (above 10,00,000 Tk is 4% under

0
the IT rules, 1984)
(90,000) 0
4,50,000
Net profit for adjustment to
owner’s equity
 Owner’s equity

Particulars Amount ( taka)

Owner’s capital at conception 0
Add:
Investment 6,00,000
Net profit (loss) (90,000)
5,10,000

Owner’s equity at the end of the year

Cash flow statement

Cash from operation: Taka

Revenue 12,00,000
Production cost (540,0000)
Fixed operating cost (7,20,000)
Total (60,000)

Cash from investment:

Store development (3,50,000)
Capital expense (1,20,000)

Cash from financing

Owner’s investment 6,00,000

Cash at beginning 0

Cash at end 70,000

Balance Sheet
 Liabilities Assets

Particulars Amount ( taka) Particulars Amount ( taka)

Cash 70,000
Owner’s equity 5,10,000
Retail store
 Furniture & equipment 2,50,000
 Lighting 1,00,000
Debt 5,00,000
Capital expenditure

 Production development 50,000

 Equipment 30,000
 Other 40,000
Prepaid expense

470,000

Total 10,10,000 10,10,000

Total

Break Even Analysis

Break Even sales to continue operation:
7 ,20 , 000 13,09,090.9
=
0 .55
0
Fixedoperating expenses( FOE)
Contributionmargin

Break Even sales to repay the term loan:

12,20,000 22,18,181.80
= 0.55

Fixedoperatingexpenses ( FOE ) +termloan

Contributionmargin

Break Even sales to recover the owner’s capital

17,30,000 31,45,454.50
investment: = 0.55
( FOE ) +termloan+OE
Contributionmargin
Comments:
In consideration of the moderate sales projection of average market trends (exception to
inflation, war, political unrest & other unfavorable externalities) this targeted sales will be
achieved at the end of the third (3rd) year.

If we set 10 tk. As average selling price of a single paket, then our break even sales in
units is calculated as
1309090
=130909units of Cabbage chips
10

15. Loan and Investment:

The companies own capital is 1,00,00,000. They collect loan from different financial
institution is 20,00,000. After collecting the loan, the company can invest this money in their
new production (cabbage chips). The company can attract their investor by showing their
industry cost structure.

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 “Cabbage Chips” will reach to the hand of our
targeted customers we will be able to capture the market.

References:

Group work performance

www.Bombay sweets company Ltd. (company History)

Appendices:

It included- Financial statement, Cash flow, Owners Equity, and Balance Sheet.

Personal Resumes
Resume
Of
Md.Ashiqur Rahman
(Managing Director)

Work History:
Previously working as the Deputy Managing Director of Fresh food limited company.Head of
marketing of BD food Bangladesh Limited for the last three years.
Educational background:
MBA (Major in Management Studies) from University of Barisal & BBA (Major in
Management Studies) from University of Barisal.
Special skills:
 Good skills in organizational management.

 Specialized in corporate dealing.

 Efficient in implementing strategic marketing planning.

 Good communication skills.

 Experienced in organizational motivation.

Resume
Of
Md.Mamun
(Marketing manager)

Work History:
Former Finance manager of Bata shoe com. limited.
Educational background:
MBA (Major in Management Studies) & BBA (Major in Management Studies) from
University of Barisal.
[

Special skills:
 Good skills in formulating strategy and target setting
  Coordinating the activities of marketing manager, production manager and
administrative manager.

proposals.
 Coordinating the daily operation of the business.
 Resume
Of
Md.Faisal Ahmed
(Engineering Manager )

Work History:
Former marketing Manager of Unilever.

Educational background:
MBA (Major in Management Studies) & BBA (Major in Management Studies) from
University of Barisal, MBA on International Marketing from New South Wales University,
Australia.
Special skills:
 Excellence in strategically segmenting the market and positioning the products.

 Good skills in taking timely marketing promotion activities.

 Experienced in communicating with the ad agencies to undertake the best

advertisement.

 Good knowledge on branding.

 Ability to take risk under heavy competition.

 Resume
Of
XXXXXXXX
(Finance Manager)

Work History:
Former project Manager Akizcompany Limited.

Educational background:
MBA (Major in Management Studies) & BBA (Major in Management Studies) from
University of Barisal.
Special skills:
 Good knowledge in collecting the best quality raw materials for best production.

 Experienced in taking timely and appropriate decisions to purchase the highly

productive machineries.

 Giving special incentives to business partners and suppliers of raw materials..

 Performing overall management of the ongoing production operations including,

scheduling, shipping and quality control.

 Maintaining inventory control.

 Formulating strategies to increase the productivity.

 Resume
Of
YYYYYYYY
(Manufacturing Manager)
Work History:
Former Administrative Manager ofIspahanicompany Limited.

Educational background:
MBA (Major in Management Studies) & BBA (Major in Management Studies) from
University of Dhaka, MBA on Administrative Management from Aligarh University of India.
[[

Special skills:
 Efficiently performing and coordinating the administrative activities.

 Experienced in maintaining data services of the offices.

 Ordering office supplies, managing customers, organizing the office and running the
office activities smoothly.

 Managing the operational files and taking administrative decisions.

 Resume
Of
ZZZZZZZZZ
(Employee relations Manager)
Work History:
Former Administrative Manager of Apexshoe company Limited.

Educational background:
MBA (Major in Management Studies) & BBA (Major in Management Studies) from
University of Dhaka, MBA on Administrative Management from Aligarh University of India.
[[

Special skills:
 Efficiently performing and coordinating the administrative activities.

 Experienced in maintaining data services of the offices.

 Ordering office supplies, managing customers, organizing the office and running the
office activities smoothly.

 Managing the operational files and taking administrative decisions.