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Manufacturing

Filters for
Heavy Transports
in
BANGLADESH
Course Name: Principles of Marketing

Course Code: ALD-1205

Prepared for:
Osman Gani
Lecturer
Department of Business Administration in Marketing
Bangladesh University of Professionals

Prepared by:
Ashfaqul Azam
ID: 16221024
Finance & Banking, Section: B
Faculty of Business Studies

Bangladesh University of Professionals


Mirpur Cantonment, Dhaka-1216
Date of Submission: 10th October, 2016

Letter of Transmittal

October 10, 2016


Mr. Osman Gani
Lecturer
Department of Business Administration in Marketing
Bangladesh University of Professionals
Mirpur Cantonment, Dhaka-1216

Subject: Submission of Term Paper on business plan


Dear Sir,
Here is the term paper that has been assigned to me as a requirement for our course to complete my
second semester from Faculty of Business Studies (FBS) at Bangladesh University of Professionals
(BUP). I have prepared my term paper on Manufacturing Filters for Heavy Transports in
Bangladesh as my business plan which is being submitted along with this letter. It has given me a
great in-depth knowledge regarding the format and different aspects of a business plan.
Throughout the period of doing the term paper, I got the opportunity to do a lot of research on this
topic. Through this application I would like to submit my term paper with its associated details.
Finally I would like to thank you for your valuable guidance and support in order to complete this
term paper successfully. I hope with great anticipation that you would be kind enough to accord your
kind approval to this term paper, looking forward to your co-operation.

Sincerely yours,

Ashfaqul Azam
ID: 01020024
Program: F&B
Faculty of Business Studies
Bangladesh University of Bangladesh

Executive Summary

The business plan is to manufacture air, oil, fuel and hydraulic filters for heavy
transports such as bus, truck etc. Filter is one the products that the heavy
transports owners need to buy very frequently. And thus we are going to make
it easily accessible to them at much cheaper rates. Currently, the filters are
imported from India at a much higher prices. Thus we will manufacture and sell
these filters at a much cheaper rate but of better quality. This business will
also get to create many jobs for the mechanical, chemical and electrical
engineers of our country. Considering the manufacturing process and the
distribution, this untouched area has the potential to make tons of money. As we
will be producing in our domestic market, so we wont be needing to pay extra
tax for importing from abroad. Our target customers are the heavy vehicle
companies and the owners and we will make our products accessible to most of
the major cities of Bangladesh. We will promote our products through the
automobile shops and stores and the garages as well. We will stick to being the
best filter manufacturer and provider through our excellent customer service and
also developing products and providing those to our customers to satisfy them
to full extent.

Table of Contents
Serial No.

Particulars

Page No.

Why this idea?

2.1

Mission

2.2

Vision

Products

Market Analysis

Marketing Plan

Location

Management & Operations

Financials

11

1. Why this idea?


Filter is one of the products that the heavy transports owners need to buy very frequently.
And thus we are going to make it easily accessible to them at much cheaper rates. This
business will also get to create many jobs for the mechanical, chemical and electrical
engineers of our country. Considering the manufacturing process and the distribution, this
untouched area has the potential to make millions and millions of taka!
It is a start-up, partnership business with the plan to manufacture filters for heavy transport
(bus, truck, pick-up and lorry) and sell them in Bangladesh market instead of importing them
from India anymore. The entire heavy transport companies and individual owners are the
customer.
In an overview:
We have huge market and demand for our product
Have skilled human resources available
The business is very profitable
Will provide better quality and lesser price

2.1. Vision
Become the top filter seller in Bangladesh.

2.2. Mission
Provide quality filters at affordable prices and make them easily accessible to the consumers.

3. Products

Air filter

Oil filter

Hydraulic filter

Fuel filter

The filters mentioned above are for heavy transports. We will be the first one to manufacture
and sell these in Bangladesh. We will provide highest quality at lowest price with a wider
range of selection. Plus the best customer service and faster delivery.
Currently, the filters are imported from India at prices Tk. 4000.
The manufacturing cost of each filter is within Tk. 1000.
Making them in our country would result in huge profit as we can sell at lower price
than that of the importing price.

4. Market Analysis

Upon doing the market segmentation, we have decided, our buyers are the heavy transport
companies, the owners and the people involved in the vehicle maintenance section. We are
also targeting the major cities in Bangladesh to sell our products as shown below:

Major cities in Bangladesh

Geographic
Heavy transport
companies,
private owners
and people in the
vehicle
maintenance
sector

Demographic

Behavioral

Who seeks benefits: Quality, Service & Economy


Regular buyers & medium/heavy users

Market size is huge. Currently, about eight to nine thousand filters are being imported and
sold every month and this tends to increase with the increasing number of heavy vehicles in
our country.
Based on the customers who are purchasing, our product happens to be a good fit,
considering our offerings and the customers needs. Thus we get to achieve butterflies and
true friends within our product launching by categorizing under Customer Relationship
Groups.

Long-term Customers

Short-term Customers

Customer Relationship Groups

5. Marketing Plan
Macro environment Analysis
Demographic- The population of Bangladesh is increasing in exponential rate along with the
number of heavy transports. The transport owners need to buy filters very often for their bus,
truck etc. And with the increasing number of vehicles, the demand for filters is also
increasing.
Economic- Bangladesh is investing on infrastructures and other development projects. For
that, heavy vehicles are always required for transporting goods and materials. Thus
companies are buying more and more heavy-vehicles and thus they also pay for the
maintenance cost of those vehicles.
Technological- Technology will be used to manufacture the filters.
Political- There are likely to be no political problem arising due to this business. It is a totally
politically unbiased idea. And more importantly political instability is least likely to hamper
the business of filters as transports are always going to run on roads.
Cultural- No cultural obstacles are likely to be faced by this business.

Value Proposition:
We will provide More Benefits for Less Price.

Price
More

The Same

Less

More
The Same
Less

Benefits

In working out the business, we will imply the Societal Marketing Concept. This is because
our product is going to meet the consumers wants, the consumers long-run interests,
societys long-run interests and the companys requirements. It is able to meet all these
through its unique selling proposition of good quality product at low prices. Besides it would
be made accessible easily.
The diagram below gives a vivid idea of the dimensions of the concept we will be applying.

Society (Human welfare)

Societal
Marketing
Concept
Company (Profits)

Consumers (Want Satisfaction)

SWOT analysis of the business plan

Good quality at cheaper rates


Easily accessible

The market is open.


There are no existing
producers.

Strength

Weakness

Opportunity

Threat

Lack of enough capital and


infrastructure.

There can be new suppliers


who would not produce, but
directly import and sell the
products in shorter period
of time.
The users can also obtain
the green boards through
online shopping once they
get to realize its
importance.

Competitors Analysis
The ones who will start the business after us, might import the product and try to
advertise with some extended USP
Initially we are supposed to feel less threat in the market. This is mainly because we
are the only one to manufacture currently. In the initial stage we are likely to be a
monopoly. Still in order to ensure that we have a rigid position in the market we will
maintain a good relation with our customer, will maintain a healthy relation with the
workers and will maintain the quality of the product and ensure that we can deliver
better to our customers expectations.

Marketing Mix

Product: Fuel, air, hydraulic and oil filters.


Price: Will be available at prices as low as Tk. 4000. This is because of the costeffective way they will produced.

Place: Will be available in every major cities of the country.


Promotion: There will be advertisements done in automobile stores, garages to
inform the target customers

Advertising
We will advertise mainly in three strategies:
1. We will advertise in TV channels to inform our target customers
nationwide about our products.
2. We will be marketing via automobile shops, stores and distributors

6. Location
Will establish our manufacturing plant in Gazipur since it is an industrial area. We have
future plans to make another manufacturing plant in Chittagong later. Since we are targeting
the major cities and every city is linked to the capital, so it will be better for us to distribute
our products to most of the automobile shops and to the customers more easily and
efficiently.

7. Management & Operations

Organizational Structure

Entrepreneur

Managers

Raw Materials
Supervisor

Workers

Sales

Finance

Managers

Supply Chain

Production

Marketing

We will have them from the very beginning. A chain of command will be always maintained
in this case. By going through this we will be able to maintain our business well.

Management plan:

Research and development

Business social responsibility

Monitoring and evaluation

Training and development Train our employees as we need expert

Hire people with expertise to ensure


product quality and price through regular monitoring and evaluation and
correction, if needed.
Besides doing business we will
also consider for the welfare of the environment. We will fulfil our
responsibility towards the community.
We will monitor the whole business
from the very beginning through direct management system by setting a
standard of the business and then surveying to ensure everything is working
accordingly.

employees to improve our business. So enhancing their skills via training is


very much essential. We will provide training as per the need of the
employee.

10

8. Financials
Funding: From personal savings, family-relatives and bank loan.

Income Statements of 5 years (Projected)


Balance Sheet of 5 years (Projected)
Income Statement for the year end 31st December 2016
Details
Revenue
(-) Cost of Goods
Sold
Opening
Inventory
(+) Purchases

Taka

Taka

XXX
11,57,00,000
11,57,00,000
(10,80,000)

(-) Closing
Inventory
Gross Margin
(-) Expenses
Factory Rent
Wages and Salaries
Interests paid
Utility Expenses
Sundry Expenses
Total
Expenses
Net profit

Taka
33,60,00,000

(11,46,20,000)
22,13,80,000
8,00,000
22,80,000
3,50,000
14,00,000
11,80,000
(60,10,000)
21,53,70,000

11

Income Statement for the year end 31st December 2017

Details
Revenue
(-) Cost of Goods
Sold
Opening
Inventory
(+) Purchases

Taka

Taka

10,80,000
12,56,72,000
12,67,52,000
(20,30,000)

(-) Closing
Inventory
Gross Margin
(-) Expenses
Factory Rent
Wages and Salaries
Interests paid
Utility Expenses
Sundry Expenses
Total
Expenses
Net profit

Taka
31,49,56,000

(12,47,22,000)
19,02,34,000
8,00,000
3,20,84,000
3,50,000
20,47,000
2,74,000
(3,55,55,000)
15,46,79,000

12

Income Statement for the year end 31st December 2018

Details
Revenue
(-) Cost of Goods
Sold
Opening
Inventory
(+) Purchases

Taka

Taka

Taka
35,84,90,000

20,30,000
16,50,06,000
16,70,36,000
(13,87,000)

(-) Closing
Inventory

(16,56,49,000)
Gross Margin
(-) Expenses
Factory Rent
Wages and Salaries
Interests paid
Utility Expenses
Sundry Expenses
Total
Expenses
Net profit

8,00,000
4,45,87,000
3,50,000
1,67,89,000
3,76,34,000
(10,01,60,000)
6,54,89,000

13

Income Statement for the year end 31st December 2019

Details
Revenue
(-) Cost of Goods
Sold
Opening
Inventory
(+) Purchases

Taka

Taka

Taka
35,84,90,000

20,30,000
16,50,06,000
16,70,36,000
(13,87,000)

(-) Closing
Inventory

(16,56,49,000)
Gross Margin
(-) Expenses
Factory Rent
Wages and Salaries
Interests paid
Utility Expenses
Sundry Expenses
Total
Expenses
Net profit

8,00,000
4,45,87,000
3,50,000
1,67,89,000
3,76,34,000
(10,01,60,000)
6,54,89,000

14

Income Statement for the year end 31st December 2020


Details
Revenue
(-) Cost of Goods
Sold
Opening
Inventory
(+) Purchases

Taka

Taka

10,80,000
12,56,72,000
12,67,52,000
(20,30,000)

(-) Closing
Inventory
Gross Margin
(-) Expenses
Factory Rent
Wages and Salaries
Interests paid
Utility Expenses
Sundry Expenses
Total
Expenses
Net profit

Taka
31,49,56,000

(12,47,22,000)
19,02,34,000
8,00,000
3,20,84,000
3,50,000
20,47,000
2,74,000
(3,55,55,000)
15,46,79,000

15

Balance Sheet for the year end 31st December 2016


Details
Taka
Taka
Taka
Assets
Fixed Assets
15,60,84,000
Current Assets
2,53,67,000
18,14,51,000
Liabilities
Long-term
liabilities
Short- term
liabilities

10,00,00,000
1,50,600
(10,01,50,600)
8,13,00,400

Capital

18,14,51,000

Balance Sheet for the year end 31st December 2017


Details
Taka
Taka
Taka
Assets
Fixed Assets
15,60,84,000
Current Assets
2,60,67,000
18,21,51,000
Liabilities
Long-term
liabilities
Short- term
liabilities

10,00,00,000
2,50,600
(10,02,50,600)
8,19,00,400

Capital

18,21,51,000

16

Balance Sheet for the year end 31st December 2018


Details
Taka
Taka
Taka
Assets
Fixed Assets
15,60,84,000
Current Assets
2,53,67,000
18,14,51,000
Liabilities
Long-term
liabilities
Short- term
liabilities

10,00,00,000
1,50,600
(10,01,50,600)
8,13,00,400

Capital

18,14,51,000

Balance Sheet for the year end 31st December 2019


Details
Taka
Taka
Taka
Assets
Fixed Assets
16,60,84,000
Current Assets
2,30,67,000
18,91,51,000
Liabilities
Long-term
liabilities
Short- term
liabilities

10,00,00,000
2,50,600
(10,02,50,600)
8,89,00,400

Capital

18,91,51,000

17

Balance Sheet for the year end 31st December 2020


Details
Taka
Taka
Taka
Assets
Fixed Assets
17,70,44,000
Current Assets
3,20,67,000
20,31,11,000
Liabilities
Long-term
liabilities
Short- term
liabilities

10,00,00,000
2,80,600
(10,02,80,600)
1,02,82,84,000

Capital

20,31,11,000

18