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J  
    
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Mr. Md. Nur Alam
Assistant Professor

 
Mehdad Mamur Mannan, ID# 040301
Tareq Islam Shuvo, ID# 040303
Farjana Ehsan, ID# 040319
Shahana Ferdousi, ID# 040334

       


    November 06, 2006.

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2.1. Business Idea
2.2. Goals & Objectives
2.3. Market Opportunities
2.4. Mission
2.5. Description of the Product
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   2.6. Business Objectives

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 ½       3.1. Market Size & Trends
3.2. Customers
   ½     3.3. Competition
  ½ ½ ½ ½½ ½ ½ 3.4. Differentiation

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4.1. Marketing Objectives
4.2. Marketing Strategy

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5.1. Development of Product
5.2. Production Process
5.3. Human Resource Planning
5.4. Future Product Development

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6.1. Management Description
6.2. Support Services
6.3. Ownership

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7.1. Funding & Breakeven Point
7.2. Pro forma statement of activities
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   7.3. Analysis of Major Expenditures & Incomes
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An idea changes lives- people often say so and many times we have seen the proof of that.
However, idea needs to be feasible so that it can be turned in to innovation. Now
   ) is here top turn an idea in to a wonderful innovation. Basically
   ) is a shopping bag manufacturer that wants to fetch a revolution in the
shopping bag industry of Bangladesh.

Business-    )


   ) wants to do business with the unbeatable spirit of Bangladesh, therefore
it wants to attach the spirit of the country with its products that is shopping bags. Unlike
other conventional shopping bag    ) will bring the pictures of Bangladesh¶s
nature, places, personalities, culture, heritage, history etc. on its shopping bags. These will
drive the people emotionally towards the spirit of Bangladesh. Apart from that
   ) has got a noble mission to contribute its 7% of profit for the cancer
patients of Bangladesh.

Market-   )


Now all people are feeling irritate of having excess and traditional shopping bags. Even if
all the stores are already taking shopping bag from their suppliers but yet there is a huge
potential left for new and innovative idea to grab the market. The marketing object of
   ) will be to attract the customers and the users as well. The idea and
distinctive features are the strength of    ), at the same time the weakness is
motivating the customers with the new idea. Yet there is a huge potential left for
   )

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Production-    )
The production plant of S   ) will be in the capital city Dhaka because all the
raw materials required for that can be available there.    )¶s all the bags will
be very much environment friendly. There will be standard of quality assurance.

Management & Human Resource-    )


   ) believes in creating skilled workforce who will be derived by
innovation. There will be regular training program for all the personnel to ensure efficiency
and up gradation.    ) will be a learning organization for the employees.
The expertise of the management is beyond question.

Operation & Finance-    )


   )¶s will be strictly monitored by the top management. The top
management will be the owner of the venture and they will share the profit. It is expected
that the company will reach the breakeven with in 2009. The company will be able to
decrease its costs after 2 years of operation. And finally the    ) has already
been decided to provide 7% of its profit fie the cancer patients.

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   #  
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   ) will be a shopping bag manufacturing company that will


produce shopping bags for the consumers of different renowned shops, outlets and
shopping malls/super stores. However this company will not produce the conventional
paper bags or shopping bags. Basically image craft will produce bags of 3types of
materials. They are-
/0 *  All Environmental friendly papers will be used for making these
bags. For making the handles, high quality threads will be used.
/0 J  Pure Bangladeshi cotton fabric will be used for these cloth bags.
˜       
/0 1  Jute is our lost glory. To reign this,    ) will produce
  
   aristocratic jute bags. These will be a bit expensive and internationally presentable.
     
The uniqueness that    ) will bring in its product is demonstrating the
    
Bangladeshi spirit. Basically on this bags, like the other conventional shopping bags, the
  name logo, address or features of a particular shop/ outlet / super store will be printed.
Besides these bags will come up with the printed pictures our Bangladesh¶s nature, culture,
heritage or even the famous personalities. That means these bags will portray the image of
Bangladesh. Through these bags 2   )3 will try to encourage people to
explore Bangladesh. Even on these bags there will be lives of Bangladesh¶s famous
patriotic songs or poems, that will create a strong emotional impact among people. But
perhaps the most amazing feature of this company will be its social awareness through its
business. The company has a vision to aid the cancer patients of this country. For this the
company will contribute 7% money for its every unit of sale to the cancer victim of the
country. Therefore ,    ) is going start a kind of business that has never seen
yet in the history of Bangladesh.

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    #  
" "     4 

   ) is going to established with some goals and objectives.


Primarily we may say that these goals and objectives are-
*) Producing carriage solution to the consumers.
*) Enhancing the use of environment friendly materials, that can meet demands in
reasonable price yet does not harm the environment.
*) Focusing the beauty and glory of Bangladesh among people so that they become
even more inclined to explore Bangladesh.
*) Fostering the patriotic emotion among the people.
*) Finally to contribute the society by standing beside the cancer victims of the
nation.

"  %&  ) '    

Every now and then the number of consumers of different shops and super
stores are increasing. So the demand for the shopping bags is ever going high.
   ) is primarily targeting the superstores of Bangladesh and other
renowned departmental stores of Dhaka and other major cities. But it has a vision to
spread it¶s a result the company has got a huge market opportunity. Every day many
new superstores and shopping malls are getting established in Bangladesh. This is
also indicating a very prospective market for    ).

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    #  
" ( %
   ) is a shopping bag manufacturer that not only produces its
product but also fosters the spirit of Bangladesh among its consumers. By carrying
commodities in the bags of ³Spirit Bangladesh´, people are also contributing for the cancer
victims of the nation and exhibiting their consciousness to keep their environment healthy.
Thus Spirit Bangladesh wants to do a simple business in a distinctive manner for the
welfare of people and nation in the class of its own.

"    #   

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Shopping Bag.
  
3
 
Paper, Cloth and Jute (100% environment friendly)

6 Different sizes.
º   
    
Name, logo, address and feature of a particular shop/outlet/superstore.
Further the bags will have printed picture on Bangladesh¶s nature, heritage, culture and
     personalities. On the pictures, lives from our famous patriotic songs or poems will be
    printed.
    
      
  

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The following is a list of the significant business objectives of 2   )3

=Promote and popularize the spirit and affection for the Bangladesh among the people.
=Grab as much market share as possible since we are completely innovative in this sector.
=Maximizing profit so that we can contribute more to the cancer patients of the country.
=Delivering optimum service to the consumer so that they not only fall for our idea but
also become loyal to our products.

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   #%& '    
 £ %& 5   6 

   ) will be very selective in choosing its markets. Only the
renowned and trusted shops/outlets/superstores and their consumers will be the
market of this company. So at initial stage the company is starting with some super
stores and some other renowned shops.
These days people are quite conscious about the environment. So they want
to use environment friendly shopping bags. Moreover, with the growth of population
the number of consumers of different shops/outlets/superstores are increasing. So the
demand for shopping bag has got a new dimension. Finally all the renowned shops
want to deliver their product in a nice , useful and standard shopping bag that also
bears the image of the particular shop. So the current trend looks very very
promising.

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J  )  
Since we want to sell our product to only those shops/outlet/superstores
which have a minimum reputation. We are taking some super stores and some other
renowned shops as our potential customers. However we do have a market
segmentation according to the volume of purchase by the customers. That
segmentation as follows-
   Customers that purchase 15,000 unit per month.
   Customers who purchase more than 7000 but less than 12,000
unit per month.
     Customers who purchase more than 4,500 but less than
6,000 units are of this group.

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R Attractive price
R Unbeatable Idea
R Supreme quality
R Excellent Service
R Motto to contribute to the society

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Though there is no other company in the market that is doing business with
our idea. But yet we are not free from the competitors threat. We have-

    We have direct competition with all the shopping bag
manufacturers and printing presses that are doing business with the
current shopping bag manufacturers within Khulna city.
!    We have indirect competition with all the
manufacturers of small paper packets and net bags. Still some people
are illegally producing banned poly-bags. These people are also
competing with us indirectly.
j     All the potential companies that might come up with
new ideas and materials in packaging industry are Spirit Bangladesh¶s
potential competitors.

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 ( ##   

  ) 
R Unbeatable idea
R Attractive price
'    +6  R 100% environment friendly high quality material.
R Flexible offerings
R Efficient Workforce
R Smooth distribution network
R Strong customer service

8& 
  )  R Completely new idea
8&  R Availability of raw material

˜   


 '    
R Opportunity to contribute to the society
R Ever increasing number of consumers.
R Absence of new idea.
R Wide opportunity to expand.

6 
R Misrepresentation of customer psychology
R Misinterpretation from the part of customer
R Emergence of any new company with any other idea.
R Withdrawal of restrictions on poly bags.

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R Ensuring excellent quality all through


R Assessing customers demand and meeting them adequately.
R Marketing customers satisfied with the asking price.
R Ensuring wide availability of product.
R Building ³Spirit Bangladesh´ a strong brand.

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* 

j  
Shopping Bag.
  
3
 
Paper, Cloth and Jute (100% environment friendly)

6 Different sizes.
   
Name, logo, address and feature of a particular shop/outlet/superstore.
Further the bags will have printed picture on Bangladesh¶s nature, heritage, culture
and personalities. On the pictures, lives from our famous patriotic songs or poems
will be printed.

˜  

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( " %&  )   )

*

Price would be a crucial issue for our products. We Know for new product
pricing we can use two pricing strategies- Market Skimming and Market Penetration.
Here,    ) will adopt %& *    Strategy. That means the
º        firm will set an initial low price in order to penetrate the market quickly and deeply-
     to attract a large number of buyers quickly and win a large market share. As a result,
the high sales volume results in falling costs, allowing the company to cut its price
   !    further if needed.
"    
 Since    ) makes shopping bags of 3 different materials, the price of
each type will vary. The price will mainly depends up on the cost and availability of
    !   the raw materials, competitor¶s price and of course up on our cost of goods sold and
   
   there by our targeted profit margin. Basing up on all these variables for each type,
SpiritBangladesh has decided to fix its initial price mix in the following way-
 j "#
5.00 taka per unit (average price, because price will vary in terms of
size).
 "#
7.00 taka per unit (average price, because price will vary in terms of
size).
$ "#
10.00 taka per unit (average price, because price will vary in terms of
size).
However price may change depending on different variables.

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( " %&  )   )

*  

   ) always considers its product as a creative piece.


Therefore the company believes in promotional activities that not only attract its
customer by their rational value but also by their emotional drive. But in this case we
have financial limitations. So we think to popularize our idea and thereby our product
we need effective but cost efficient promotional method like Personal Selling. This
method will major emphasize. Besides we will establish some billboards in front of
the renowned super stores and shopping malls all around the country. Without that we
will also have billboards in all the major tourist cities (i.e. Cox¶s Bazar, Sylhet,
Chittagong Hill Tracts and so on) of Bangladesh as our product does bear some
tourism value. Some specimen of our promotion has been provided in the appendices.

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( " %&  )   )

*

We want to do our activities being very close to our customer. That is why
SpiritBangladesh wants to maintain a very strong and smooth distribution network all
through. Our distribution will be conducted by the Company Sales Force. The nature
of distribution is basically Selective Distribution. The company itself will manage all
its logistic support. In the following flow chart we might have an insight of the
SpiritBangladesh¶s distribution channel.

Suppliers Region
º       
  
   Suppliers Labor force
 

Region  
#   Suppliers Region  


) 

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   *  
 £   # * 
*   

   ) is a company which produces packet or shopping bags for the
departmental and chain stores. Focusing on the customers need and buying pattern
   ) has developed its product. Its products are-


# #     Paper will be used as raw material for this
type of bags. There will be difference of size of these bags. All these size will be
determined by the current product available in the market and as per the requirement of the
owners of the shopping centers.


# #    Cloth will be used as raw material for this
type of bags. There will be difference of size of these bags. All these size will be
determined by the current product available in the market and as per the requirement of the
owners of the shopping centers.

   

# #   $  This is another special type of bags. This bags
will be made to promote the jute of our country and as well as to remind the golden days of
our jute. This bag will be bit expensive but also bit aristocratic. This bag can be
internationally presentable.

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    *  
 £   # * 
% 

The milestone of our product will be measured in two terms. First of all we want to
create a strong customer and users base through emotional representation. Then we will
look for increasing the usage rate of our bags. Our target is to attract our customers as well
as users in terms of quality, design, emotional attachments, pricing and comforts.

-*  

   ) will hold the patent of the new and innovative
institutionalization of shopping bag manufacturing. SpiritBangladesh will hold the
authority to produce, develop and modify the product. In this competitive age it is the
interactive right to have the authority of a unique business idea where the image of the
country uplifted and explored. It is not less than representing the country with the business
venture.

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    *  
 " *   * 
*   %   9   .       )0

It is a great consideration how    ) will produce this large


number of shopping bags. It is a matter of manifold considerations including supplies of
raw materials, designing, equipments, materials etc. to operate the production unit locally.
But as    ) want to explore its potential in the whole country, initially it will
establish its production unit in Dhaka but gradually it will establish its production units
focusing on its markets and customers.
   ) will not produce all the things by itself. Raw materials like papers,
cloths, jute will not be internally completed. But other things like printing materials,
assembling the whole bag, distributing will be done by    )
   ) will buy the printing machine although these are expensive but just to
hold the quality of picture.    ) will also appoint fulltime designer in order to
ensure the changing trends of design so that users never get irritated.

% 

The ultimate goal of    ) in production process is to develop a


very much cost efficient production method of shopping bag manufacturing. The method
will be developed in such a way so that easy diversification is possible. The production
method will also be the matter of patent.

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    *  
 " *   * 
 

In case of selecting suppliers, SpiritBangladesh will focus on three considerations-


o Suppliers should ensure the required quality of raw materials.
Another consideration is there should not be any substances that can harm the environment
in the raw material. That is all the raw materials should environment friendly. As the raw
materials will not be changed in the main production, it will just modify so
SpiritBangladesh will be very cautious in the quality of the raw materials.
j   Price is a vital consideration in case of raw material supplies. No
business can be economically feasible without having cost effective raw materials. So the
supplier should ensure the least price for the best raw materials.
%  A supplier with best quality and least price will not be selected
unless the supply of their raw materials is continuous. So availability is a vital factor that
has to be by a supplier. SpiritBangladesh will consider this thing in case of selecting raw
materials.

:     J    .  

o  j $ There will be provision for quality assurance through practicing some of the quality
assurance tools. The business will be driven by the thirst of continuous improvement. It
%    will also be driven by the beauty of innovation, exploration, exposition and composition.
    
These all things are required to ensure the continuous improvement.
  

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   -  *  )

;  -< 

   ) need adequate and skilled labor to fulfill its mission. It
will not continue operation on the basis of day to day demand. Rather considering the fact
of unpredictability, SpiritBangladesh will focus on producing adequate shopping bags. The
labor requirement will be determined by two factors, the quality and another one is
quantity of the labor. Below there is a projection towards labor requirements for preparing
the final bags.

o
Average labor capacity per hour= 100 bags (5% error acceptable)
Average working hour a day= 7hours
Average production capacity for a labor per day= 100*7=700 bags.
Total number of labor will be determined by total number of demand.
&    
  
 & '  
Educational Requirement: At least 8 years completed in school.
     Skill: Should have basic knowledge in bag preparing. Must have the capacity to work using
    both hands. The labors should also have some aesthetic sense.
Physic: The workers should be physically fit to do the work continuously.
 
6  )

There will be provision to train the labors. The basic of their training is to
accelerate accuracy in assembling bags. Their will be some training to grow the
geometrical sense, speed etc.

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    *  
 ( ,  *   

   ) has a plan to grab the export oriented market. The
packaging of export goods will be supplied by    ) These products include
º     cartons, containers and other export packaging. These products will represent the culture,
history, traditions, natural beauty of our country. Some other businesses can be enhanced
      through this packaging. Image of the country is an indicator of the future economic growth

     of the country. So, our future plan regarding our forecasted product is to be the
representative of our country as well as economically beneficial one.

    As our product will be protected by the patent, so we can share our idea with the some
     other country to be economically benefited. The future version of our product can be the
global door to exchange cultures, history and tradition.

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% ) +'   *
! £ % )  
The executive management team for the    ) is comprised of
four members, described below. This team is responsible for strategic development and
daily operations of the Marketplace. This team holds formal weekly meetings and is in
regular communication to make all critical decisions relating to the    ).


 

R
  % ) 6
* Mr. Mehdad Mamur Mannan, co-founder and President of    ),
serves as President of the    ) and as its primary champion. Mehdad has
completed his graduation in the country¶s leading business school Business Administration
discipline of Khulna University. He has expertise in Marketing and global business. In
º    addition, Mehdad has successfully designed and launched several new ventures, including
the event management unit of    ) and the marketing strategies for Warid
   
telecom. Mehdad is responsible for the development and implementation of the marketing
     plan for the Marketplace and he oversees all planning and operations of the Marketplace.
Mr. Tareq Islam Shuvo, Ms. Shahana Ferdousi, and Ms. Farjana Ehsan report to Mr.

   Mehdad.

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! £ % )  

 


    Ms. Shahana Ferdousi is serving as the Interim Executive Director of
the    ) and is primarily responsible as Project Manager for the growth of
the business, including negotiations for product procurement as well as marketing
initiatives. Ms. Shahana in an entrepreneur with marketing experience. Over the course of
her career, she has experiences in economics and planning. A results-oriented executive
with extensive experience, she combines knowledge of marketing and promotion with
expertise in strategic planning, business management, and negotiation. Shahana oversees
product selection processes, negotiations with suppliers and printing, as well as managing
operations and logistics.
J# ,   '## Mr. Tareq Islam Shuvo, who serves as the Chief Financial Officer
for event management unit of    ). Shuvo has expertise in financial
00 0 forecasting and planning. He did his major in Corporate Finance. As being creative in
'  nature, he always tries to use his financial knowledge in innovative businesses. Shuvo has
superior skills in financial management and has provided strategic guidance for
º!˜     )¶s event management unit during a period of unparalleled growth. Shuvo
'() is responsible for the finances of the Marketplace and will contribute to the planning and
implementation of strategic corporate involvement.
  # '    Ms. Farjana Ehsan, the Executive Director of the
   ), serves as the Director of Operations for the event management unit.
Farjana has a by born ability to motivate and lead the people. Having this leadership skill
she will oversee all the operations with her wise jurisdiction.

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! £ % )  
6 ,  

The following teams will actively participate in the activities of


   )
. #   6  )    ) has a highly skilled and dedicated IT staff
and design team led by one chief designer. Under this team most of the members are part
time worker. This team will manage the design, testing, and implementation of the pilot
phase of the    )
; )    .    Under Farjana Ehsan¶s leadership, the
   ) has strong raw material supplies infrastructure. A senior logistics team
at the Menna Bazaar packaging, has also indicated their willingness to lend their expertise
to the effort.
J     A broad range of communications needs is required to launch and
   
 maintain the Marketplace.    )7 Senior Manager of Communications, Md.
    
Arif Zaman, will contribute oversight duties to the    )
%&  ) +    Strong and persistent outreach to the full range of potential
   consumers will be required for the long-term success of the Marketplace. President

     Mehdad Mamur Mannan is leading the marketing efforts for    )
     As the    )¶s business is a highly patriotic one, so the
 management team and the board of directors are highly enthusiastic to make a new thing
happen.
In addition, the    ) will recruit one voluntary external committees to assist
the venture, as follows:
6       To provide informal guidance regarding the development of
the idea as well as to increase the awareness and prominence of the venture,
   ) is recruiting a small group of highly visible individuals to assist in a
range of activities. The nominating process is underway and individuals currently under
consideration include prominent writers, business leaders, and intellectuals.
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 % ) +'   *
! "   
   ) is committed to explore the country in a unique way with
profit. To ensure that efficient management is essential. So there will be learning session
for the management team. The focus of the coaching programs will be drive the
management towards efficiency

!  '= 
Board of Directors are the owner of the company. President will get 30% of
the profits, and other 3 will equally get the rest of the profits.

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,  *
$ £ ,  ) + & * 

,  ) + & * 

   ) made the initial cash investment of BDT4000,000 for


start up the venture. Additional costs of raw materials and day to day operation totaled
BDT7500,000. The venture will be initiated using newly installed resources of
   ), including technological infrastructure, facility and staff time. A
prorated portion of staff time and facility rent, totaling BDT200,000, was attributed to the
   ). There will be significant cash flow from the very beginning. The
company will receive significant cash flow from the first year of its operation. It is
anticipated that break even cash flow for    ) will come by December 2008.
O   O


Sales in BDT
19000000

   


  
11970000

Year 1 2 3
& *     
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½ ,  *
$ £ ,  ) + & * 


  #    . #  

The    ) during its pilot phase utilized the technological
infrastructure, facility, database, staff, inventory and warehousing maintenance capacity,
database of several thousand potential customers, and warehousing and publisher
relationships of the other company. With this advantage, at this time there are no significant
venture-specific facility costs, leasing issues, or equipment purchases. A percentage of
infrastructure, facility and administrative costs are allocated to the    ), as
well as increases in marketing expenses and operations.

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½ ,  *
$ " * #     #   
Yr. One Yr. One Yr. One
Forecast Forecast Forecast

'   )- 


Sales 8000000 14000000 19000000
6 '   ) -  £( £
   ?
Here is a projected statement of activities for J   #* 
the next 3 years. All the values are projected Salary & Benefits 2500000 3000000 4000000
and can be changed. Raw Materials 5000000 9000000 11000000
As we are producing only one product so our Overhead 150000 225000 365000
it is assumed that shopping bags are the only Infrastructure Costs 220000 250000 275000
source of our earning. 6 J   #)  $$£"($£!(
Our startup capital will come from our savings
and donations. So, there is no interest charge.  * # ££"!


 
Depreciation 100000 100000 100000
Start up cost 4000000 - -
6 
  (£££

 .  >9; 0 9$0"("!


7% of the income - 178150 228200
 .    "!!£

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½ ,  *
$    # %4 
     .  
Here is a projected analysis of major expenditures of    )

-= %  Expenses on machineries are one of the major expenses in


-=%  this business. As the vision of    ) is a high, they have decided to buy their
 own printing and cutting machines to reflect their vision. This huge expense will cost BDT
%&  ) 3000000.
     There are huge expense for paying the salaries of the labors and
management. There is another expense for regularly train up the employees.
   ) want to be a learning organization where performance and learning will
be evaluated together. For the first year this expense will be BDT2500000.
%&  )
     ) will go for personal selling for its
customers. So, there will be salaries instead of marketing expenses. But there will some

other promotional activities too.
  
 ? We have expenditure for distributing our product to
the customers. For this purpose we will hire vehicles from outside though the distribution
channel will be on the company¶s control.

Here is a projected analysis of major Income of    )

 Sales is the only source of earning in this business. From the second
year of operation there will be rapid increase in sales revenues. This revenue is projected to
reach almost BDT19000000 in the third year, 200% of second year.

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½½ ,  *
$    # %4 
     .  


 

In the graph beside it is clear that there -.,


is a downward trend of costing.
,*-



Efficiency in operations resulted that.

*+*

  

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½ ,  *
$    # %4 
     .  


 

In the graph beside it is clear that there

is a upward trend of sales. Efficiency in


marketing and distribution resulted that.

0


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-&  J  ) *
%4  -&   % ) * % )  -&

R -&? Low sales.


% )  ? if sales go downward then SpiritBangladesh will give its effort for personal
selling. Excellent and trained sales force can help to increase the sales.

 -&? Competition.
% )  ? Competition is inevitable. Our distinctive features are the key to our sales. In
case of competition we will attract our customers with our distinctive features.
1   
  
       -&? Difficulty attracting talented staff.
% )  ? It may seem difficult to find the appropriate personnel. But attractive package

     offering for the personnel and opportunity to learn can motivate the right personnel.
 
 -&? Marketing barriers.
% )  ? SpiritBangladesh believes that the expertise of experience Mehdad Mamur
Mannan is well enough to destroy marketing barriers. But in case of emergency we will
develop some contingency planning for consistent performance

 -&? Crisis in reputation.


% )  ? from the very begging SpiritBangladesh will try to create its value in its own
market. Our value will be our recovery in the situation of crisis on reputation. We also can
make advertisement to remove any rumor.

 -&? Inadequate space.


% )  ? Our operations team will always look at that.

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ºº º ! º

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