LETTER OF TRANSMITAL 27 th April, 2011 Dewan Al-Mamoon Course Teacher University of Liberal Arts Bangladesh.
Subject: Submission of Business Plan
Dear Sir, We are pleased to submit our Business Plan of a Super store company named Stop and shop . This Business plan is a part of the course requirement to complete our BBA program. We have prepared the Business plan using both primary data from conducting a survey and secondary data from the internet and personnel of Agora super shop. We are submitting the Business plan and will be grateful if you kindly accept it.
Sincerely,
Md: Tanbir Rayhan
Acknowledgement
For collecting the information about our study objective and preparing our report properly, we are grateful to our course instructor Mr. Dewan Al-Mamoon. Being authorized of this report, he helped us a lot throughout the time of work by giving her tender hand time to time. We are also thankful to those personnel of Agora super shop. who have helped us a lot by giving information about the company.
At last we want to thanks again our course instructor Mr.Dewan Al- Mamoon to give us such opportunity to do such report that will help us to improve our analytical and communication skills.
Serial Content Page 1. Executive Summary 1-6 Objectives 8 Mission 8 2. The Business 6-39
Description of Business 6
Description of Product 9
Location 10
Company size 12
Swot Analysis 13
Technology 14
Marketing Activities 16
Advertising Promotion 18
Sales Promotion 19
Operating procedure 22
Personnel 24
Regulatory Requirement 36
Environmental Impact 37 3. Market Information 39-46 Market Size 39 Pricing 41 Section 01: Executive summary Executive summary is a term used in business for a short document that summarizes a longer report, proposal or group of related reports in such a way that readers can rapidly become acquainted with a large body of material without having to read it all. Our company name is Stop and shop super shop Company .Here we will discuss about the full summary of every section .We will shortly discuss The Business Description of the business Technology Marketing Activities Operating procedure Personnel Regulatory Requirement Environmental Impact Market Information Financial Data Description of the business: In present, superstore is the well known business in Bangladesh. There are many large superstore companies and they operate their business with goodwill and profitably. These are Agora, Meena Bazar, PQS, Nandan, Almas, Prince Bazar. Name of the Company STOP & SHOP Super Shop and Home Deliveries Ltd. Brand Name Stop & Shop
Head office House No # 12/A Road No # 24/A Shankar Plaza West Dhanmondi Dhaka- 1209 Company Logo
Moto Save Time Buy More.
Services
1. Home Service Delivery: We will provide home service delivery to our customers. The service will vary on the customer s delivery place. At the beginning only the customers of the Dhaka city will get the service. We will expand it accordingly to the expansion of business.
2. Quality Customer Service: We will try to provide quality customer service to the customers. It includes carrying out their belongings, sorting out their products, helping them to understand the product varieties and any other chores to help out the customers.
Technology: Technology is the One of the main part of our super shop business .We have to technologically updated to run our business actively because now a days in every spare of business technology is related to each other .The main equipment for our business is Computer CC Camera Bar code Reader Electronic cash memo Packaging Machine Meat cutting Machine Air conditioner Software POS
Marketing Activities: Our marketing media will be Tv Newspaper Radio Website Poster Magazine
Personnel: Personnel is the total man power policy of our shop that how many employer we need to run our business
Regulatory Requirement: Bangladesh Investment board Trade License City corporation license Bangladesh super mall association
Market Information 1. Market Area: Dhanmondi Market Size: About 05 Lakh potential customers 2. Customer segment: We will segment our market in six categories. These are: Women (Over 40 years) Women (Under 40 years) Men (Over 40 years) Men (Under 40 years) Young (Male and Female both whose are under 25 years) Kids (2-10 years) Financial data In financial data we will discuss about our financial activities and summarize the all financial data .we have to provide pro forma financial statement for five years . Project cost Sources and uses of funds Assumptions for sales forecasts and costs forecasts Pro forma income statement Pro forma balance sheet Pro forma cash flow statement Project cost: stop and shop super shop project cost will be 11, 9800000 tk . Pro forma Income statement: in pro forma income statement we will discuss briefly about our income schedule. Sales: our sales will be in first year 150000000tk. Monthly sales are 12500000tk. Cost of goods sold: our cost of goods sold is 70% of our sales .we has follow the cost of goods sold of Agora super store. Salaries: our salaries are yearly 13632000tk annually .here is include salaries of our manpower and the people who involved with the company Net profit: in first year our net profit will be 12527450tk and it will increase in year to year. Section 2: The business In this business section we will discuss about the overall description of the business.
Description of the business Technology Marketing Activities Operating Activities Personnel Regulatory Requirements Environmental Impact
Description of the business: In present, superstore is the well known business in Bangladesh. There are many large superstore companies and they operate their business with goodwill and profitably. These are Agora, Meena Bazar, PQS, Nandan, Almas, Prince Bazar. But Home Service business is not so well known in Bangladesh. Thus there are some companies which serve home services, some of their specific product. These are KFC, Pizza Hut, Dominious pizza, Band Box, Calcutta dry cleaners, Asian sky shop and other local laundry shopThough home services business is not well known in Bangladesh but it has a good demand. Mostly these demands come from upper-upper class, upper-middle class and middle class family because most of the familys husbands and wives are busy. Thats why they are facing lots of problem for their daily shopping. Many superstores companies in Bangladesh charge extra price in their regular products price, which sometimes the main cause of customer dissatisfaction. Besides there are also many infrastructural problem. These problems are insufficient car parking facility, Lack of fast aid, Lack of fire service facility. There are also some different problems in the big metropolitan areas in Bangladesh. These are shortage of plumbers, electricians and cleaning service. Until now no company take any initiatives for solving these problems. Easy life will introduce a new concept about the home service business. It will serve the product its customer at a market price and according to customers requirement. It will deliver the product with a minimum service charge.
Name of the Company STOP & SHOP Super Shop and Home Deliveries Ltd. Brand Name Stop & Shop Head office House No # 12/A Road No # 24/A Shankar Plaza West Dhanmondi Dhaka- 1209
Company Logo
Moto Save Time Buy More. Mission We will provide our service in the whole Dhaka metropolitan area. After 10 years of operation we will convert our business private to public by issuing 30% shares of whole business.
Vision As our shop is first of its kind so at first our prime target is to create prime customer goodwill. Profit and fame will follow it proportionately. Once the customer goodwill is achieved expansion can be made a matter of time. So our primary objective is to be the second highest market share holder.
Objectives In the superstore and home service businesses Stop & Shop will serve the best quality product at market price and Stop & Shop will ensure the highest customer satisfaction and low service charge comparable to the other home service company.
Rupchada TK. 460/5 Liters can Teer TK. 450/5 Liters can Hamim TK. 430/5 Liters can Radhuni TK. 450/5 Liters can Pusti TK. 445/5 Liters can Pure TK. 450/5 Liters can Ghee
Spa TK. 150-450 Fa TK. 150-550 Brut TK. 150-700 Nevia TK. 180-700 Axe TK. 180-400 Jesmin 180-450 Set wet TK. 180-400 Cobra TK. 190-480 Rexona TK. 80-400 Fore ever TK. 180-480 Prophecy TK. 800 Eternal (Love) TK. 800-1200 Havok TK. 200-500 One Men Show TK. 800 Royal TK. 150-500 Set wet TK. 200-500 Nova TK. 180-450 Bryl cream TK. 190-550 Services
3. Home Service Delivery: We will provide home service delivery to our customers. The service will vary on the customer s delivery place. At the beginning only the customers of the Dhaka city will get the service. We will expand it accordingly to the expansion of business.
4. Quality Customer Service: We will try to provide quality customer service to the customers. It includes carrying out their belongings, sorting out their products, helping them to understand the product varieties and any other chores to help out the customers.
Reason of the business: Superstores are set to boom in the country as the current market players are planning to open several hundred more outlets in the next few years to cope with the rising demand from the consumers. In present, superstore is the well known business in Bangladesh. There are many large superstore companies and they operate their business with goodwill and profitably. These are Agora, Meena Bazar, PQS, Nandan, Almas, Prince Bazar. But Home Service business is not so well known in Bangladesh. Thus there are some companies which serve home services, some of their specific product. These are KFC, Pizza Hut, Dominious pizza, Band Box, Calcutta dry cleaners, Asian sky shop and other local laundry shop .Though home services business is not well known in Bangladesh but it has a good demand. Mostly these demands come from upper-upper class, upper-middle class and middle class family because most of the familys husbands and wives are busy. Thats why they are facing lots of problem for their daily shopping. Many superstores companies in Bangladesh charge extra price in their regular products price, which sometimes the main cause of customer dissatisfaction. Besides there are also many infrastructural problem. These problems are insufficient car parking facility, Lack of fast aid, Lack of fire service facility. There are also some different problems in the big metropolitan areas in Bangladesh. These are shortage of plumbers, electricians and cleaning service. Until now no company take any initiatives for solving these problems. SWOT Analysis
Available workforce Better environment of superstore Supplies of quality product Better home service
Funding Unavailable preservation facility Unavailable transport facility for home service
New business concept Changing customer needs
Unavailable space in Dhaka city Political Unrest Inflation
Natural disaster in the rural area may decrease our regular
Strength Weaknesses Opportunity Threats
Technology: Technology is the One of the main part of our super shop business .We have to technologically updated to run our business actively because now a days in every spare of business technology is related to each other .The main equipment for our business is Computer CC Camera Bar code Reader Electronic cash memo Packaging Machine Meat cutting Machine Air conditioner Software POS Now a days computer is one the wonder of modern science without a computer people cannot do anything .to maintain a firm or industry whatever it is small or big computer is must. Computer is needed in our super shop because every transaction of everyday we have to keep it in the computer without this we cannot maintain the daily sales properly .suppose one customer come in our shop and buy something then come to pay the bill then we will input the product price and quantity then we need computer thats why computer is must needed for our shop.
CC camera is also an important technical equipment for our shop to see the overall situation of the shop we need cc camera there will be lots of cc camera that we can easily see the situation of the shop if any accident is occur in shop we can see this thats why we need cc camera Bar code reader is also Important because in our every product there will be code thats will identify the price that there are lots of product in our shop sometimes may be we do not know the price then bar code reader will help us to know the price .to do this things we have to input the information about the product. Software is much more needed for our firms .we need some sales software thats will calculate our daily and annual sales .we can see the transaction of everyday through the software .we can evaluate that who is our platinum customer then we can see their transaction of monthly that will helps us in many ways .
Marketing Activities:
TVC is the first choice for our business publicity because most of the housewives enjoy TV programs. Our TVC duration will be 1 minute. This TVC will be presented during dramas which will present several times in a day.
The newspaper AD will be in four color of 12 inches by 8 inches which will be published 3 times in a week in the first page of top 5 newspapers.
The magazines AD will be also in four colors of 10 inches by 8 inches and published first week of a month in top 5 magazines
500,000 leaflets will be printed in four colors of 10 inches by 8 inches which will be delivered with daily newspaper. Newspapers Magazines Leaflets TVC
We will publish our advertisement in the most favorite Bangladeshi and International web pages. We will also maintain a website for collect the orders from the home service client and giving information to the customer about the firm.
Our website address www.sns-bd.com Our e-mail address will be Info@s&s@yahoo.com
We will advertise through billboards in the busiest places of Dhaka city such Motijheel, Shahbagh, Sience Laboratory, Moghbazaar, Firmgate, Mohakhali, Gulshan etc
We will make an advertisement for the FM radio which will broadcast Several times in a day. Web Bill Boards FM Radio Operating Procedure: Operating procedure is the procedure that the raw materials are converted or collected to a final product in many steps . Our company is super shop that we have lots of operating procedure that we will sell rice, vegetables ,meat ,daily needs etc.Most of the time we will produce some of the product in our own land otherwise we will import it from many part of our country then assemble it and packaging it then it will be in our shop .so the procedure is
We will make an agreement with the big five rice millers of Dinajpur and Barishal. These are: a. M/S Aurnapurna rice mill (Dinajpur) b. M/S Rajlaxmi rice mill (Dinajpur) c. M/S Sarkar and Brothers rice mill (Dinajpur) d. M/S Jibonanondo rice mill (Barishal) e. M/S Bashir rice mill (Barishal)
We will make a contract with five merchandise of old Dhaka. These are: a. Shahzadi and company b. Dhaka masala Ghor c. Chokbazar whole sale company d. Motijheel spice e. Wari dal supplies
Our main sources of vegetables from Bogura, Comilla, Jassore and sub urban sites of Dhaka city.
Rice Vegetables Bean, Spices Meat
This section will provide by own facilities. We will buy cow and goats from the Gabtoli cattle market and we will make a contract with Aftab poultry for chickens
We will provide this product from some renowned companies. These are: 1. Biscuits: Novelty, Haque, Nabisco, Al-Amin, Fu-wang. 2. Jelly: Pran, Ahmed, Fu-wang. 3. Chocolate: Catberry, Nabisco, Bingo, Pran, and many others. 4. Cofee: Nescafe and other distributors. 5. Tea: We will purchase from some renowned tea brands (Taza, Lipton, Ispahani and others) and others will collect directly from sylhet.
We will contract some renowned company like Igoo, Quality, Cornetto, Swiss, Polar etc.
We will purchase other food item from local market at wholesale price to fulfill our demand.
For toiletries product we will make a contract with big five toiletries companies of Bangladesh and multinational. These are: Biscuits, Jelly, Chocolate, Coffee, Tea Ice Cream Others Toiletries a. Uniliver Bangladesh Ltd. b. Square Toiletries Ltd. c. Aromatic Cosmetics Ltd. d. P & G e. Kohinoor Chemicals Bangladesh Ltd.
And other toiletries product we will purchase from the local market at wholesale price.
Our main source of dress will be: a. Tangail b. Comilla c. Dhaka d. Narayangonj e. Chittagong
For cookeries product we will make a contract with three companies: a. Bangladesh Melamine b. Sharif Melamine c. Monno Ceramic
Dress Cookeries Personnel : Personnel is the total man power policy of our shop that how many employer we need to run our business
Key Responsibilities of each key personal are stated below: 1. Chairman : The Chairman first responsibility is to welcome new employees aboard. He must possess all the responsibilities in orienting the employees about the organizational culture, assigning the tasks to each employee and from time to time reminding the employees about the target and mission of Monster energy drink. This directors responsibility will be to plan the total human resource recruiting, compensating, and promoting. 2. Director, Marketing: The main duty of this director is to design the total marketing plan. It will include preparing the promotional plan, taking care of the public relations and also making the sales plan. The manager will possess the responsibility of designing the total marketing mix and also planning all the strategies related to securing a greater share of the market. 3. Director, Finance: The responsibility of the finance director will be to prepare the total expenditure and also prepare the financial statements, and plan the projection of all costs and revenues. 4. Director of purchase: The responsibility of the purchasing director will decide the purchase related decision. 5. Director, Sales:
This director will have to plan the total Sales process. It must be ensured by the director that the demand of the customers is met at the right time. Therefore, stock must be there at the right time and in the right order. It must also be checked that wastage does not occur and quality of materials is mentioned.
Formulation of Work Policy
We have formulated a written work policy for the employees of our farm. These policies are related with the betterment of the employees as well as the farm. The elements we should cover through the work policy are given below in details
Working Hours: Every employee has to work 6 to 8 hours. The time of work depends on work requirement. During the time of production and sales, employees have to work more. But it will not exceed the work schedule of 8 hours. Safety: Some work of automobile industry is very much dangerous. Thats why we have 24 hours doctors for primary treatment. For advance security we have good fire stopping system machine. Benefit: Free Treatment - Every employee will get the benefit of free treatment up to a specific level. To provide this benefit, employees will get a fixed amount with the consent of the management. Food - Employees get the food facility. Which is totally free of cost. Vacations: Every employee will get a vacation. Every employee will get 40 days vacation in a year. Employees will get government holiday. If any one takes extra work, he/she will get double bonus.
Training: In the top level, most of the employees are skilled and experienced. But for fresher, who do not have any experience, will get 3 months training. The lower level employees will be trained by managers, under whom they work. They do not need any special training session like top level employees. Personnel Welfare: Housing - There is a small quarter for the employees. Management provides them this housing facility in free of cost. Profit Sharing - When the production level will be good enough, then only labors will get a special bonus as a part of the profit. Termination: Recruitment This is the process of discovering potential candidates for actual or anticipated organizational vacancies. Employees can be recruited from internal search and/or from external search. However, Stop and Shop super shop will be recruiting through external search. External search can be done through advertisements in newspapers, employment agencies, colleges and universities and from other professional organizations.
The recruitment process of Stop and Shop super shop will start by giving advertisement in newspapers, where the applicant will be told to collect application form from the main office in Yakub Tower, kolabagan, Dhaka. The applicant will have to fill the application form and submit it along with a cover letter and curriculum vitae.
The search for employees can also be done through online employment agencies like bdjobs or in prothom alo jobs. Circulation can also be done in colleges and universities.
Selection
Selection activities follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision. The selection process for Stop and Shop super shop will follow the steps given below: Preliminary Screening The first step in the selection process whereby job inquiries are sorted. This will consist of two steps: screening inquiries, and screening interviews. The applications will be screened and sorted, and then the selected applicants will be called for an interview, and the final applicants will be screened and selected from the final interview.
Final Selection The final candidates selected will be therefore, be assigned their work.
Employment Test After the employees are selected, they will have to go through an employment test. This is not applicable for the blue collar workers but mandatory for the white collared employees and for the sales assistants and the cashiers.
Regulatory Requirement: Regulatory requirement is the procedure that to run up any business or services company or organization must have to take permission from different govt. agency. As we are the super shop operator we have to take some permission from. Bangladesh Investment board Trade License City corporation license Bangladesh super mall owner association
Environmental Impact: We are the super shop mall operator .we do not do any harmful activities which is harmful for our environment .in our site office there will be one big cold stories and many ware houses where we will keep our product but we will not manufacturing any product thats why we think that we will not pollutes the environment .But we will concern about our environment to keep free from pollution.
Market Analysis
Section: 03 Market Information 3. Market Area: Dhanmondi 4. Market Size: About 05 Lakh potential customers. 5. Market Characteristics: From the department of statistics we have collected the market characteristic of Dhanmondi. Here 15% of the total market is upper-upper class people whose are able to purchase our product any time and any condition. 30% of the total market is upper-middle class whose are able to purchase our product at any time but reduce by some conditions. 15% of the upper-lower class is also able to purchase our product at any time but reduce by some conditions. 20% of the total market is middle class people whose are able to purchase our product in the first week of the month with no condition but they are able to pay 1.5% VAT.
6. Customer segment: We will segment our market in six categories. These are: Women (Over 40 years) Women (Under 40 years) Men (Over 40 years) Men (Under 40 years) Young (Male and Female both whose are under 25 years) Kids (2-10 years)
7. Purpose of Segmentation: Women (Over 40 years): Most of the families this type of women manage the all things. They purchase the daily needs products from the local market. These types of women are the first target of our business. Women (Under 40 years): These types of women buy the luxurious product from the several shopping malls. They are the second target of our business. Men (Over 40 years): These types of people are very busy executive. They have no time to go to the shopping malls and other superstores. They are demand home service facility for their daily shopping. These types of people are third target of our business. Men (Under 40 years): These types of people are mostly middle line managers. They have also no time to go to the shopping malls and superstores. They are also demand home service facility for their daily shopping. These types of people are forth target of our business. Young (Male and Female): They are price and quality sensitive. They are demand fluctuate with the change of fashion. These types of people are the fifth target of our business. Meena Bazar 40% Agora 20% Nandan, PQS & Others 40% Meena Bazar, 8, 8% Agora, 6, 6% Nandan & Others, 10, 10% Other retail Shop, 76, 76%
Kids (2-10 years): Most of the 2-10 years kids depend on baby foods because of that guardians are very tensed and feeling insecurity about the quality of baby foods. These are the least target customer for our business.
8. Competitors: In the superstore industry the number of competitors increasing day by day and they appears a big competition with each other and other local retail market. In the Bangladeshi superstore industry Meena Bazar is the big competitor for all superstores company. It gains 40% market share of the superstores industry an 8 % market share of the whole retail market. Agora is the second largest competitor in the superstore industry which gains 20% market share of the superstore industry and 6% market share of the whole retail market. Other superstores such as Nandan, PQS, Prince Bazar, Almas are the third competitor in the superstores industry. They gain 40% market share of the superstore industry and 10% market share of the whole retail market. Other retail shops gained 76% market share of the retail market industry. Now a days AL-MAS super shop has become quite a powerful competitor
Fig: Superstore Industry Fig: Retail Shop Industry
Section 4: Financial data In financial data we will discuss about our financial activities and summarize the all financial data .we have to provide pro forma financial statement for five years . Project cost Sources and uses of funds Assumptions for sales forecasts and costs forecasts Pro forma income statement Pro forma balance sheet Pro forma cash flow statement Pro forma statement of retain earnings etc.
Now we will summarize the all financial data Project cost: stop and shop super shop project cost will be 11, 9800000 tk . Land: we will purchase 40 khata lands for our site office where we will manufacture our product .every khata will be 500000tk. Building: our building cost will be 15000000tk .where we will make our building for different section Equipment: our equipment cost will be 30000000.equipment include our main equipment such as air conditioner, chopping machine .packaging machine .etc Automobiles: we will purchase different vichele for our super shop .we will expense 24000000tk .we will buy cargo and van for our super store. Sources and Uses: we will start our business with partnership that we will take bank loan which include short term and long term loan .our sponsor will be 325000000tk by two members which is 65000000tk. we will take loan from two bank 60000000tk .our sources and uses will be 125000000tk.
Pro forma Income statement: in pro forma income statement we will discuss briefly about our income schedule. Sales: our sales will be in first year 150000000tk. Monthly sales are 12500000tk. Cost of goods sold: our cost of goods sold is 70% of our sales .we has follow the cost of goods sold of Agora super store. Salaries: our salaries are yearly 13632000tk annually .here is include salaries of our manpower and the people who involved with the company. Rent: our rent will be for our super shop 360000tk. Insurance: our insurance is 0.05% of our sales which is in first year 75000tk Advertising: our advertising cost will be in first year 2550000tk .which include news paper, television, Radio, magazine, Internet, Bill board etc. Net profit: in first year our net profit will be 12527450tk and it will increase in year to year. Pro forma Balance sheet: In balance sheet the equation is Asset=Liabilities +Owners equity. Cash: Our beginning working capital or cash will be 30000000tk. Account Receivable: our business is super shop .our receivable will be not much bigger our account receivable is 500000tk. Asset: Our total asset will be In first year 138827450tk Liabilities and owner equity: Our liabilities include short term loan and long term loan .our short term loan is 30,000,00 tk and long term loan is 30,000,000tk. Accounts payable: Our account payable is 1000000tk. Our liabilities and owner equity is same