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Green Furniture

Product and Brand Management: MKT-368 Term Paper


On

Green FurnitureBrand Book


Submitted to: Nazia Nabi Faculty of School of Business Head of BBA UITS.

Submitted by: Md. Arifur Rahman--Md. Abu zafor Ibne Hasan-Jakia Akter---Ashraf Uddin-Md. Shahadat Hossain-- -09310058 08410107 08510046 07510041 09310010

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Green Furniture

Date of submission: 11/08/2011

Letter of transmittal

11th August, 2011

Nazia Nabi School of Business UITS.

Baridhara, Dhaka. Subject: Submission of Term Paper on Brand Book Dear Madam,
It is a great pleasure for me to submit a Term paper that you assigned me to do, so for your kind evaluation and admiration.

You would be glad to hear that I have given my best effort to prepare this term paper with relevant information that I have collected from particular text book, class lectures, and internet.

In spite of various shortcomings like limitations of my knowledge and time constraint I have tired to cover all relevant affairs. I wish this Term Paper will be able to meet up your expectation.

Sincerely,

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Green Furniture

On behalf of the group.

ACKNOWLADGEMENT

This report on the Bamboo furniture & cane crafting showed us a different perception of opportunity in Bangladesh by enhancing the beauty & heritage while meeting our economic needs. This has been a great source of knowledge for us to explore a different but native side of the country art and to similitude it with the modern fashion that we uphold. This report is the contribution of many individuals who worked hard and tried best to provide voice in it. But it is our great honor to say thanks to our respective course teacher Nazia Nabi for their proper guidance & cooperation for the report.

In our doing so, we would also like to thanks Mr. Thomas Sharkar from Thomas engineering and Md. Shahinur Rahman from Comilla Cane Furniture Centre for they have helped us with their valuable time & also with precious experience about the furniture and crafting sector. It also wouldnt be as much possible without the help of Internet. We greatly relay on the secondary sources of information and in the case Bamboo & cane and material it was no different. We all tried to do our best with our hard work. However, unwilling ignorance on certain sectors may have occurred and for that we request for your kind consideration toward our mistakes

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Green Furniture

EXECUTIVE SUMMARY

Agriculture and Economic development go hand in hand. Economy of Bangladesh seeks more development in bamboo & cane crafting sector. Green furniture evolves to contribute in this development. The projects vision is to meet the increasing demand of bamboo furniture & cane crafting facility in our country.

Various kinds of decorative furniture made by grass wood and cane. Raw materials are taken from the green nature and green is the symbol of fresh, healthy environment. So it is environment friendly and we named the product after the color of grass. Grass wood is green which indicates friendly to the nature.

Our slogan is Be a friend of nature.

We segment our market based on some features like income, Social class and user behavior. We basically target mid-level & higher level income range people. We will introduce our product through advertisement & dealer.

The main sources of supply of raw material are Local. The raw materials are mainly collect from Chittagong.

As Bangladesh has an agro based economy, Government here wants to develop the sector by plans, policies & legislations. Subsidies on production of agro based products and Tax redemption on such business.

Our company is completely new so we need time to reach the level from where we can compete our competitor .In our field their position very strong because they serve

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Green Furniture

in this field very long time. Our main competitors are the Wooden Furniture and Steel furniture.

So, it is very difficult to establish and gain popularity in this field. We act as market challenger and try to obtain the market leadership .Our motto is to serve the people at a low cost and capture the market. The concept that business should be actively concern with the welfare of society at large, certainly firms have an ethical responsibility to provide a safe working environment to avoid polluting the air or water and to produce safe products.

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Green Furniture

TABLE OF CONTENTS

1. Industry Background 2. Brand Profile 3. Target Audience Profile Market Segmentation Target Market Market Positioning Marketing Mix Analysis 4. Sales Forecasting . Sales Forecasting Graph 5. Competitive Analysis Current Scenario of Bangladesh Market Summary Breakdown of Demand Competitor Analysis SWOT Analysis 6. Socio Economic Aspect . Social Responsibility Business Ethics Environment impact of the project Contribution towards the Economy 7. Yearly Business Plan ..

01 02-03 04-06

07-08 09-12

13-15

15

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Green Furniture

INDUSTRY BACKGROUND
Industry Background:
Bamboo and cane handicraft and furniture makers called for protecting the traditional industry from ruination and ensuring livelihood of the dependents in this sector. The traditional bamboo and cane handicraft and furniture industry has been passing through a period of depression because of a dwindling demand for the environment friendly product at home and abroad. Industry sources said, diversification of products, boosting production and promoting trade of the items would bring back life to this sector. Manufacturers and traders said that effective steps are essential to create demand for the products in international, local and regional markets and removing all obstacles to its production. Canes and few portions of bamboo import from Myanmar and Indonesia, as cane and bamboo are grown in those countries under government tutelage. But in our country, we hardly get any assistance from the government to promote this industry. There are also many obstacles to getting bank loans and training opportunity is practically non-existent in this sector. Bamboo and cane products are in greatly demand throughout the world, especially in Asia and Europe. Bangladesh exports considerable quantity of assorted bamboo and cane products to Russia, Germany, Singapore and the Middle-east countries. Bangladesh earned considerable goodwill in cane crafts through participation in a number of international fairs those were held in Germany, Canada, Japan and elsewhere. In 1999-2000, Bangladesh earned tk-258.60 million by exporting bamboo and cane products. Unfortunately, this resource has been depleting. Production of cane in Bangladesh is now much less than it used to be in the past. The country produced 39, 38,000 feet of canes in 1985-1986 and 29,38,000 feet in 1993-1994. The local traders said, around 2, 00,000 people are involved in bamboo growing and production of bamboo-made-products in northern Bangladesh. Most of the producers are women and tribal people and bamboo made products are their main source of income

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Green Furniture

Finally, it can be said that the government and the non-government organizations have to come forward with their helping hand to develop this industry and to create employment for the local people by this industry.

BRAND PROFILE
Product: craft Various grass wood Grass wood furniture and Cane kinds of decorative furniture made by and cane.

Brand Name:

GREEN FURNITURE

Raw materials are taken from the green nature and green is the symbol of fresh, healthy environment. So it is environment friendly and we named the product after the color of grass.

LOGO:

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Green Furniture

URL:

www.greenfurninfo.com

Character: is green which nature.

Greenery--- Grass wood indicates friendly to the

Be a friend of nature
SLOGAN:

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Green Furniture

TARGET AUDIENCE PROFILE

Market Segment:
Three types of people live in our society upper class, middle class and lower middle class. To recognize customer differences we segment our product in demographic basis

Income
Income does not always predict the best customer for a given product . Middle class people prefer to get product at a lower price. Social class has a strong influence on preference in cars. Availability of our product help to fulfill their demand.

Behavioral
We divide our segment based on customer benefit & use Benefit UseWe provide our product at low cost which they seek. We will focus on the potential users.

We segmented the market on the basis of:

Top level segment

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Green Furniture

Mid level segment

Target Market:
According to market segment we targeted top level to mid level people.

Market Positioning:
We promise our customer that we give our first priority to maintain product quality which is differentiable from other existing product sacrificing a little cost. Maintaining quality and its value we are able to maintain a faithful relation with our customer. It is done by using following tools: -

Newspaper Leaflets Billboards Ensuring customer satisfaction by high quality product Taking parts in furniture fair & Trade fair Cost push method

Marketing Mix Analysis:

Product Identification:

Product is mainly two categories. Those are: Furniture

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Green Furniture

Craft Best quality product is suitable for targeted customer. Product is available in both forms. Furniture includes Bed, Dining table, various types of chair, Dressing table, Sofa, Computer table, Tea table etc. Craft includes various types of handmade show piece which is used for decoration.

Types of distribution channel:


There are various types of distribution channel. But we use 1-level consumer marketing channel. That isManufacturer Dealer Customer We never use direct marketing because we dont have any showroom. We deal with only retailer in a wholesale price. The retailers contact with customer to sell our exclusive furniture & craft.

Pricing policies:
Considering target markets price should be kept as minimum as possible. We set our price in order to penetrate market quickly and deeply to attract large member of buyers quickly and win a large market share.

Store location:
We dont have any showroom. Thats why we deal with retailer to sell our product. The price of the product is fixed. We also offer customer oriented product. It priced on the basis of customer specific demand.

Promotion:
We use various ways to advertise our furniture and craft. Those are: Newspaper is the direct way to reach the customer. Billboard lift late Poster

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Green Furniture

Banner Taking parts in furniture fair & Trade fair Cost push method

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Green Furniture

SALES FORECASTING
Green Furniture Projected Income Statement Based on 10% Increase in Sales volume Projected Income Statement Particulars Facility Utilization Sale Revenue: 6,930,0 00 2,970,0 00 9,900,0 00 1,462,0 91 8,437, 909 685,0 00 7,752, 909 858,0 00 175,4 51 56, Depreciation 500 500 270 56, 500 596 189, 717 56, 500 000 8,462, 749 725, 979 216, 163 56, 500 25, Preliminary Expenses 6,662, 958 2,665,1 7,491, 382 2,996,5 9,034, 833 3,613,9 10,588, 733 4,235,4 000 12,148, 503 4,859,4 7,507,5 00 3,217,5 00 10,725,0 00 1,577,2 51 9,147, 749 685, 000 9,884, 029 575, 913 244, 609 56, 8,662,5 00 3,712,5 00 12,375,0 00 1,805,9 71 10,569, 029 685, 000 11,296, 309 406, 976 271, 9,817,5 00 4,207,5 00 14,025,0 00 2,034,6 91 11,990, 309 694, 000 12,717, 589 215, 10,972,5 00 4,702,5 00 15,675,0 00 2,263,4 11 13,411, 589 694, 2011 60% 2012 65% 2013 75% 2014 85% 2015 95%

Furniture

Crafts

Total Sales

Cost of Goods Sold

Gross Profit Admin and selling Expenses

Operating Profit Interest Expenses Long term Interest Expenses Short term

Earnings Before Tax Provision for Tax (40%)

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Green Furniture

83 3,997, 775

53 4,494, 829

33 5,420, 900

93 6,353, 240

01 7,289, 102

Earnings After Tax

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Green Furniture

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Green Furniture

COMPITITIVE ANALYSIS

Current Scenario in Bangladesh


People in Bangladesh have high choice about the furniture and other household items. As a matter of fact the people are looking for something discrete for the decoration of their homes and offices. Taking that in concern instead of wood bamboo would be a reasonable matter to adopt. It can be well understood that bamboo and cane would be a worthy alternative for the traditional wooden furniture. It can be described as a need when it comes to furniture. As being a member of the society people are bound to go after their need and there by demanding different choices. In luxurious level the industries to create bamboo and cane furniture are very minimal and they are basically stationed local wise outside the capital. So it would be an advantage to introduce the citizens of the capital a new sense of useful decorative and useful home and office furniture. Since, it is completely and ecological product and with comparatively low raw material cost we can gain an advantage over the furniture prospect. The recourses are highly available and Bangladesh is famous for producing one of the promising numbers of bamboo and cane.

Market Summary
In our country there is a large present & potential market of bamboo based products. The current firms in the industry are operating profitably. Main characteristics of this market can be summarized as follows: Never ending demand Small number of competitors High consumption growth Minimum price elasticity Low threat of substitute Easy reach of distribution channel The overall market of agro based products characterized below:

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Green Furniture

Breakdown of demand
The market demand may be broken down into demand for different segments of market

Nature of product: Bamboo based products can be categorized mainly, Furniture, Tools, and Handicraft.

Consumer group:

The ultimate customers of the product are the peasants of different districts and will be the final user.

Geographical Division: All most all divisions of our country are demanding furniture and other product. Target segment are districts mainly producing bamboo made product.

Price:
Price of agro based products can be determined either by- Manufacturers price quoted as FOB or CIF or Landed price for imported goods.

Methods of distribution According to product type i.e. furniture and handicraft and its demand it is necessary to distribute the product directly to the consumer group, by avoiding the influence of middleman, from our country aspect.

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Green Furniture

Supply & competition The main sources of supply of raw material are Local. The raw materials are mainly collect from Chittagong Competition in the market is very low as there is large demand exists and to face the demand, a small number of firms are operating.

Government policy As Bangladesh has an agro based economy, Government here wants to develop the sector by plans, policies & legislations; Subsidies on production of agro based products Tax redemption on such business.

Competitor Analysis
Our company is completely new so we need time to reach the level from where we can compete our competitor .In our field their position very strong because they serve in this field very long time. Our main competitors are the Wooden Furniture and Steel furniture. So, it is very difficult to establish and gain popularity in this field. We act as market challenger and try to obtain the market leadership .Our motto is to serve the people at a low cost and capture the market. We hope very soon our product will be accepted by the customer.

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Green Furniture

SWOT Analysis
Strength: Production process is Eco friendly. We are the second company in Dhaka because it is available in Shylet and & Chaittagong. Availability of raw material at cheap rate. Price level is responsible for the target customers. Because low production cost. Unique design. (Discreet design) To provide unique customer service. Strong managerial skills. Wastage is becoming resources by recycling method. Weakness: High transportation cost & it is also hazardous. Low production level at initial stage of the firm. Opportunity: Less competitors. Attractive market by lucrative offers. Exporting product generate foreign currency. Expand the business for kitchen accessories.

Threat: Inflation. Natural disaster. Risk of new product. Financial constraints abstract nature of the product.

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Green Furniture

SOCIO ECONOMIC ASPECT


Social responsibility:
The concept that business should be actively concern with the welfare of society at large, certainly firms have an ethical responsibility to provide a safe working environment to avoid polluting the air or water and to produce safe products. However, socially responsible actions have costs and not all business would voluntarily incur all such costs. Nevertheless certain socially desirable actions such as pollution control, equitable hiring practices and fair pricing standards may at time be inconsistent with earning the highest possible profit or achieving maximum valuation in the market. Our business plan will create opportunity of employment. This will eradicate the unemployment problem and help our society become economically strong and wealthy. It also helps our society by changing the way of life and increasing the standard of living. So to contribute our society we have also decided to create better employment scope for women. Every firm has some responsibility toward the society.

Will not out of this, being a part of the society the company planned to perform some social activities. These are given below:

We will try to remove the unemployment problem. A good number of people will find their source of income here.

We will ensure employees safety, security& other facility.

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Green Furniture

We will be to make our society green. We encourage to local for tree plantation.

The most important we wont do anything that is harmful for the environment, we utilize our wastage in various ways to not create pollution.


The firm is expected to fulfill its responsibility toward the wellbeing of the overall society along with its view of profitability. The firm wishes to capture a favorable public image will have to show that it also support social We will emphasize the importance of business and its role in the society We will describe the relevance of business in the government. We will stress the social responsibility the business should live by in consonance with its vision-mission. We will analyze the social desirability of the company. We will definitely concern about the society & environment.

Business ethics:
The word ethics is defined in Websters dictionary as standard to conduct or moral behavior. Business ethics can be through of as a companys attitude and conduct toward its employees, customers, community and stockholder. So, we are committed to follow a fair and moral value to prosper in our business. We believe that, if we ensured that our firm and its employees are maintain the law and regulation relating to such factors as product safety and quality, fair employment practices, fair marketing and selling practices, community involvement, good environment, and good service to the customer then we can achieve our longterm business vision.

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Green Furniture

Environmental impact of the project:


Our project is make furniture from bamboo & cane which is very much environment friendly. It is not harmful in the society .It also reduces net greenhouse emission. As a result it reduces the deceases which are caused by air pollution.

We will have a well-designed sewerage system and wastes treatment plant for the wastes of our production. It reduces the water and soil pollution. We will also spend 5% profit of our business in Tree Plantation program all over the country to make our country green and pollution free.

Contribution towards the economy:

The project is not only a profitable project; it has some social economic views also. It is employing a large number of people it a great contribution toward the action of removing unemployment. This project encourages the local people to make our society green. This people concerned with the project will economically benefited and at large contribution to the government through taxes derived from its sales. We also spend 5% profit for Tree Plantation.

YEARLY BUSINESS PLAN


We have some plans for the following year:

Availability of outlets in Dhaka and Chittagong. Yearly participation in furniture fair as a way of promotion. TV commercials using renowned celebrity to endorse the product. Sales increase by 10% each year.

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Green Furniture

Making low cost product for the middle class people with maintaining quality. Online product service should be initiated.

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