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Introduction to business
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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 mice—and 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 people. Each and every process of the
production is done by home-made.
Marketing Plan_____________
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 customer’s 3.Nagetive customers
2. Irregular 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%, 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 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
children’s and teenagers. We have decided that children’s, 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 P’s”: 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 that’s why we
can’t includes any internal facilities.
For the first time the mushroom is exit in the market that’s why people can’t properly
reliable to the product quality.
Financial problem is another weakness of the company like what will be the price Cost
and investment.
Opportunities:
It’s 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 it’s 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 that’s why sometimes we are facing many
competing problem, which can be a threats of the company.
Company establishment rules and regulation is strict that’s 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 500000variable cost 990000total cost 1490000 Unit Production 130000 Per unit Cost 11.46154
Break even unit sales Per unit sales 15 Per unit variable cost 7.615385 Per unit contribution 7.384615 Break even sales in unit 67708.33
Expected Profit
Revenue 960000
Fixed Expense 500000
Profit 460000
Financial Plan:
Fresh mushroom chips
Cost of project
Item Amount
Plant and machineries 500000Operative expense 400000Miscellaneous Assets 170000Contingency on machinery 5% 25000
Total cost 1095000
Note: Operative expense includes License & approval, Patent & trademarks, Product developmentCost and infrastructure development
Fresh mushroom chipsSource of fund
Item Amount
Member's contribution 600000Bank loan 250000Other source 245000
Total 1095000
Note: Other source includes family contribution, friends contribution
Expected Revenue Sales 1950000Variable cost 990000Revenue 960000
Forecaster Income statement for five years:
Fresh mushroom chipsForecasted income statement For 2014-15 to 2018-19
2014-15 2015-16 2016-17 2017-18 2018-19
Sales 1500000 1600000 1750000 1950000 2100000Cost of goods sold 750000 800000 825000 910000 915000 Gross operating income 750000 800000 925000 1040000 1185000
Selling expense 150000 165000 180000 183000 189000General & Admin. Expenses 85000 91000 95000 97000 100000Depreciation 25000 25000 25000 25000 25000Other expenses 32000 54000 60000 58000 62000 Earnings before interest and taxes 458000 465000 565000 677000 809000
Interest expense 5% 12500 12500 12500 12500 12500 Earnings before taxes 445500 452500 552500 664500 796500
Tax 35% 155925 158375 193375 232575 278775 Net Income 289575 294125 359125 431925 517725
Forecasted Balance sheet for five years:
Fresh mushroom chips Forecasted balance sheet For 2014-15 to 2018-19
2014-15 2015-16 2016-17 2017-18 2018-19AssetsCash in hand 250000 270000 260000 280500 300000Account receivable 430000 560000 510000 490000 550000Inventories 390000 410000 415500 435750 455000Other current asset 222000 245000 240000 270000 295500 Total current asset 1292000 1485000 1425500 1476250 1600500
Property, Plant & Equipment 750000 775000 795000 825000 850000Accumulated depreciation 45000 90000 135000 180000 225000
Other non-current asset 160000 185000 210000 245000 290000
Total asset 2247000 2535000 2565500 2726250 2965500
Liability & Shareholders' equityAccount payable 220000 250000 255000 260000 280000Short-term debt 60000 65000 75000 95000 100000Other current liabilities 265000 295500 300000 310000 325000 Total current liabilities 545000 610500 630000 665000 705000
Long-term debt 1100000 1125000 1200000 1250000 1300000Loan 250000 300000 320000 330000 350000Deferred Income taxes 37500 40000 45000 55000 63000Other non-current liabilities 64500 159500 20500 26250 97500 Total liabilities 1997000 2235000 2215500 2326250 2515500
Shareholders' equity 250000 300000 350000 400000 450000
Total shareholders' equity & liabilities 2247000 2535000 2565500 2726250 2965500
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