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The most important part of business plan is the executive summary. It includes the main business idea, market potentials, unique selling points, the service we are trying to sell, the profit making process, the company vision and finally the financial forecast. Our report is mainly concerned about the planning of online grocery business and Electronic business. Our strategy is to build an impressive shopping website that not only take the order but also deliver the goods to the doorstep for people who want to avoid the rush of shopping mall, traffic. The marketing of the site will be built around the core value that the site will offer. Although our competition has built a simple store for ordering the product, this site will be reviewed by Web award companies as a great destination for the all needed customer. We will build our revenue and market share around this traffic and value added service. Our business model is based on the sales of the products over the website. Because the site is also intended to increase brand equity, awareness and best available product in cheapest market price, we are building for high traffic. Our model requires giving users an excellent free experience and to develop trust to increase sell-through. We may lose money for at least three to six months while we build the traffic and develop our position for the long-term future. Our first class design, product quality and user friendly design are critical to our positioning as a dot-com company - we should be the best reviewed website in our category, and that will become the key to future sales. However, the core experiences for the every household have always been better, and with a better design team and a round of financing, our company is ready to grow with the market. The company will distinguish itself from its competitor as a full capacity center, rather than just a store front. The target customers of our site are all affluent; we have the luxury of using the latest technologies to impress the visitors with excellent design and animation. We plan to release the site entirely in groswave format as almost 90% of our visitors will already have internet is connected. We will carry on the colorful and extremely well branded design of our company literature and logo - the decisions on basic aesthetics will not get in the way. The site will have a colorful and intelligent design, taking the ad campaign and product art into an interactive medium on the Web. Our e-commerce site will be built on a three-tier structure. Driven by SQLTM servers and an IISTM Web server backed with bandwidth, the site will be coded mostly in ColdFusionTM and ASPTM. We will be taking our registration databases live to be able to 1

email updates on products and the website to customers. We will offer customers the option to take themselves out of the list. The information architecture will be based on four fundamental arenas - the free valuable information arena, the product detail arena, the final purchasing arena, and the purchase administration arena. The purchase arena will require a VerisignTM certificate and a CybercashTM connection. That will begin immediately because dealing with CybercashTM can sometimes be a lengthy process. The administrative arena will be hosted on mirror servers that query to the live databases for migration into local databases. This server is hidden from Internet traffic and kept under high security even within the company. The entire set-up will be somewhat costly. We will need five servers, 2 for in-house reasons, and three for Web hosting reasons. Two of the Web host servers will be serving traffic through ColdFusionTM and ASPTM in cluster, and the third will be a dedicated SQLTM server.


Our business plan is created through some motives. Here we tried to explain our missions and objectives. Product Mission: We will serve better quality product through a variety of domestic goods. Economic Mission: Operate and grow at a profitable rate through sound economic decisions. We want to capture the market share and replace a great portion of conventional super shops items. Our goal is a little bit economical. We are forwarding to reach our break-even point within one year and if we can manage to double up our revenue within 3 years we have a plan to extend our business.

Our visionary view of this business is that we don't want to see any body's panic. We want to make people having a good likeness in buying. We would like to make their day-to-day life easier. Moreover, ensuring customer satisfaction is ultimate goal.

Lack of experience about merging High setup cost High maintenance cost Trying to find the best Existence of Comparison Likeness varies from person to person


Our business idea is all about web based. We would like to provide services to people with a view to making their day-to-day life more comfortable and easier. We will provide customers with grocery items as well as electronic goods. And provision of these goods will be done through web in the form of e-commerce. Our business will be beneficial for people who want to avoid the rush of shopping malls, traffic, etc. People can order us through web and thus well be able to know their demands, wants, etc. Then well be able to act accordingly. Customers can check samples of the products they want in the web. Well receive orders and then will take every step to provide them the goods. Our services will save a lot of time of the customers. The ultimate goal of our business plan is to ensure customer satisfaction.


This report is prepared for Dr. Salimullah Khan, Lecturer, Course teacher of Entrepreneurship, Course # F-306, Faculty of Business Studies at University of Comilla as a partial requirement of the course. Our course instructor has assigned to the students of the department of Finance, BBA 16th batch, to make report on Business Plan. This report is prepared during the 2nd semester, Third Year and would be submitted in the same semester. The standard procedure for the long, formal report is followed here as part of the instruction of the course instructor.


Acquiring the concept of various Business Plans. To show the various aspects of our business plan. Probability of new business plans in Bangladesh.


Day by day online shopping concept is developing by region in the world. The idea of online shopping was found few years ago and statistic show people are doing their shopping more then 50 percent online .EBay and Amazon has been running successful business in the world. But time is now in Bangladesh .Last two or three years few company has lunched online shopping facility in Bangladesh .One can browse product in their website and choose then have to give order and have to choose ones payment option .After making payment they will send the order product in ones address . Few numbers of reasons behind the necessity of online shopping in Bangladesh are the following, a) Improved productivity: Using e-commerce, the time required creating, transferring and process a business transaction between trading partners is significantly reduced. b) Best bargain: It is possible as one can visit numerous shops /suppliers c) No national boundary: As one can order products from any place within the national territory. d) Easy payment system: Making payment is easy. e) Streamlined business process: Use of internet and with automation of business process can make business more efficient f) Saving time and cost: The cost savings stem from efficient communication, quicker turnaround and closer access to market. g) Better Customer service: Customer can enjoy the convenience of shopping at any hour and anywhere in the world. h) Variety: The choices one can get for products are amazing. One can get several brands and products from different sellers at one place. In Bangladesh this concept is not popular still now but day by day online shopping in Bangladesh has been growing rapidly. There are some websites which provide online shopping option in Bangladesh but neither delivers the products ordered nor offer return policy. Rather 5

they charge high cost and are not up to date with the price and products of the market. They rarely modify the products and prices of day to day market. We have planned to establish a business of online shopping and modify it with some more contemporary approaches and privileges. Some of them are the following,

1) Cash on delivery
We want our customers to enjoy the opportunity of paying cash on delivery. Cash on delivery (COD) is a financial transaction where the payment of products and/or services received is done at the time of actual delivery rather than paid-for in advance. In some countries this remains a popular option with internet-based retailers, since it is far easier to set up for small businesses and does not require the purchaser to have a credit card. Most small businesses prefer cash payment over credit card payment. Ecommerce has changed the way people shop for products and services and the manner in which a business sells its services to the customers. Shopping from an online store is no longer restricted to a few elites and techno savvy people, as more and more customers are realizing the benefits of online shopping. From books to electronic gadgets, garments to food items, customers can purchase anything under the sun from the comfort of their homes and offices. Some of the advantages that our customer will get through CoD are,

Trust Factor Some customers have always been wary about paying for a product of service without actually getting in then and there. The fact that many customers fell victims to online scams worsened the situation. The Cash on Delivery concept allows the customers to make the payment only when the product or the services is delivered to them. This increases the trust factor between the customers and the businesses resulting in more sales and revenue for the online store. The entire transaction remains transparent between both the parties under this model.

Easier Transaction Model In Bangladesh most online stores depended on Credit Cards and Internet Banking for payments and transitions. Serving customers using these payment methods was easy in the developed countries, but in developing countries, many customers didnt have access to any electronic means of payment. This is the case in Bangladesh. Cash on Delivery has brought this category of customers into the purview of 6

Ecommerce. Thus, increasing the market size and penetration for the online stores substantially.

Quality Improvement The customers pay only when they receive the product and are satisfied with its quality. They have the right to refuse poor quality products. This has ensured that online stores need to sell high quality products to the customers resulting in better quality and customer satisfaction.

Legal Aid Unless a customer has paid for a product he/she doesnt have the legal right over it. This works to the advantage of the online store as this keeps them at bay from legal responsibility over late delivery of the product or no delivery due to unavoidable circumstances. In case, our online store fails to deliver a product we can ask customers for an alternative product of their choice without having to worry about any monetary compensation or legal hassles.

1) Return policy
We also plan to provide our customer with 3 day return policy. They can return the product if it is not satisfactory. The following items may NOT be returned: Any item without a return authorization slip. Used or damaged items Discontinued products Products that are not in their original packaging and containing all accessories Items over 3 days of the receipt date

2) Creating a contemporary website:

a) Picking a domain name- A domain name is ones signature on the Internet. We

have to select it first. 7

b) Registering a domain name- Then it has to be registered. Domain names are

acquired through authorized domain name registrars. All registrars have access to the same list of reserve names, but they may have different fee structures.
c) Finding a Web host- We have to develop the website. For business transactions

involving payment by customers, then a hosting package that includes space on a secured server is usable. Secured servers are servers that contain additional layers of encryption to protect the identity of the individual and the data that is being transacted from unauthorized access.
d) Web design- After that we have to arrange web developers to design the website.

There are also web designers who design web sites for a fee. Examples of host and design websites in Bangladesh are,

e) Financial transactions on the Web- In addition to having access to a secured server,

we will need to design a transactions page that collects the customers financial information, transmits it to a service that can verify the transaction, and stores the data in our files. The unique feature of the website will be a very user friendly search engine for the visitors along with multiple categorical options. In addition there will be places for advertisement where we can put other multimedia flash advertisements with a payment.
f) Linking the site- We have to link the site with other, already recognized sites

increases the chances of being found by both our prospects and by the search engines. Creating a website needs a Systems Development Life Cycle. Five major steps in the Systems Development Life Cycle are: 1) Systems analysis/planning 2) Systems design 3) Building the system 8

4) Testing 5) Implementation






1) Competition
Competition always makes a business more challenging. Competition motivates and sometimes compels a business to perform better and better. The most important thing is to identify the competitors and their natures. In our business we do have related competitors but some business is flourishing now-a-days in this area. Our competitors are some web based online shopping business in our country. There are some websites which provide online shopping option in Bangladesh but neither delivers the products ordered nor offer return policy. Rather they charge high cost and are not up to date with the price and products of the market. They rarely modify the products and prices of day to day market. The advantages of our competitors are, They have an earlier market entry. People have more knowledge about them. They have rather more customers than us.

We also have some strength in contrast to them, 11

Offer benefits such as Cash on delivery, return policy etc Provide a wide range of products and make the search engine very user friendly. Offer a contemporary website.

To overcome the competitors strengths and advantages we need to focus on time as they had an earlier entry. We will go for an exposing advertising to ensure the very effective entry in this entry. If we can attract the customers by massive advertisement through social networking sites and websites we can be assured of our business increasing.

2) Current market situation

Out of 64 districts, Internet services are available only in 6 major district headquarters. BTTB is planning to gradually roll out an IP network up to the64 district headquarters. In January 2002, the Internet facilities were extended to 12 districts. The project is running on very fast and today almost40 plus districts are getting Internet facilities. Followings are the barriers of e-commerce in Bangladesh: a) Very minimum number of users of web sites; b) Poor telecommunication infrastructure with limited fixed-line access, unreliable connectivity and low bandwidth (9K); c) Lack of technically efficient personnel; d) Limitations of supportive legal system. Such as, exchange controls, protection of telecommunication monopolies, restrictive trade practice and prohibitions; e) People's mindset is not very open to online shopping.


1) Business goals
Short term goals a) Provide efficient service with good price b) Satisfy consumer needs with variety of products. c) Make sure every transaction is fulfilled successfully from ordering to delivering. Long term goals a) Increase sales by 30 percent in 12 months; b) Improve profits by 15 percent within two years. c) Increase the variety and number of products with every passing year. d) Expand the business with each increasing year.

2) Resource requirements

a) Capital investments

Preliminary investment- Preliminary capital of around Tk. 600 thousand shall be contributed.

Loans and borrowing: Amount up to Tk. 400 thousand can be borrowed from bank.

Land and Building- An office with 800 square feet will be enough for primary operations. The office building can be either be rented or bought.

Utilities- Electricity and power cost should get emphasis which will be around Tk. 6000 per month.

Miscellaneous Assets- Other items like office furniture, working tables in the office, exhaust fans, storage racks and bins etc. are likely to cost Tk. 40,000/-.

b) Personnel requirement
There should be appointed efficient data entry officers who are expert in technical knowledge of computers and internet. There should be reliable field workers for delivering the products.

3) External resource for business expansion

In case of business expansion we will have to collect resource from external means.

4) Products
We will primarily start with two types of products
a) Electronics: Television, computers, mobile phone, air conditioner, laptops,

cameras, watches, water purifiers, kitchen appliances etc.

b) Groceries: Rice, flour, oil, seasonal fruits etc.


5) Implementation
a) Order: We plan to make contract with the companies with related products for

five years to supply us with the asked products when they are ordered by our customers. When customers will order products through our websites it will be added in our shopping cart software. If they want to take collect on delivery system then they will have to give their address, number. They can also pay through credit cards. After getting the selling price we will payback the company with related products.
b) Delivery: We plan to deliver in two ways, either by cash on delivery or by

credit card within 3 days. We will also offer 3 days return policy.
c) Billing: We will bill the product at their market price and will add minor

commissions for delivering.

d) Customer service: We plan to provide utmost customer service with our

transactions. Our foremost concern would be the satisfaction of customers.

6) Risk Assessment
Areas of risk are
a) Demand: Whether the fluctuation of demand of customers be satisfactory or

b) Supply: Whether the supply and delivery of products be in proper time and

please the customer or not.

c) Technology: Get the help from the latest technology and using it in minimum

d) Security: To address proper security system to protect the website from

unwanted hacking and cyber crime.

e) Economical: Whether the resources are providing good value or not.



Implementation: Whether the plan is implemented by right or wrong people.

Ways for addressing risks are

a) Reduce risk: We can get through the demand risk by ensuring quality and

reduced tariff for the advertisers.

b) Spread the risks- Risks can be spread among related entrepreneurs c) Plan B- If risks can not be diminished by multiple attempts rather increases then

we will turn our product shopping website into service related website.

Organization Structure




Market potential: Market potentiality means the estimated maximum total sales revenue of
our products in the market during a certain period. For determining the market potential of our service we first need to identify who are our target markets and then future prospect. We will serve the people who are from mid income level. We do not have any geographical barrier as it is a web based business. But we can state it in a different way. Our geographical expansion will be like that we will be covering areas beyond Dhaka i.e. other divisions (Chittagong, Barisal, Khulna, Rajshahi, Sylhet, Rangpur)

Target markets: We are targeting two distinct groups of customers, individuals and
corporate customers: Individuals- The individuals are people who are looking to give a friend, relative a gift or trying to satisfy his needs. These customers typically do not have the expertise in recognizing the peaches among the mixture of lemons and peaches nor the time to bargain over the products in the market. Individuals aging 16-35 are our main concern for electronic products. Corporate- The corporate customer typically buys electronic products in a large scale from the manufacturer or from the direct distributor at a lower rate. We will provide same product at the same rate as the direct distributor does. Moreover we can supply the necessary grocery in case of special event (e.g. picnic)

Market size: The rapid growth of digital technology is fundamentally changing the world as
we know it. Our business is fully web based and so the number of internet users determines the potential market size of our product. The internet subscriber base in Bangladesh (excluding mobile) currently stands at just over 1.5 million (BTRC, Feb 2012). However, total desktop internet users in Bangladesh is actually far greater than that number, likely driven by heavy usage in offices, internet cafes and multiple users accessing the internet from a single household.


Local industry estimates suggest that in 2011 access to the web was closer to 8 million users, having grown 300% since 2010 and expected grow a further 500% by 2020 (BCG, 2010).

Factors that will affect the potential market size Culture Environment Regulation Economy Industry practice Demography Trends Infrastructure

Market Strategy: The marketing strategy will first seek to create customer awareness
regarding the products offered, grow the customer base, and work toward building customer loyalty and referrals. The long-range goal is to not only dominate the online store business, but to create an icon brand. Initially we will: Engage in Web-based marketing for the next year to generate awareness of the website and product information. Because Internet-based advertising has declined in recent quarters, the prices for advertising have consequently significantly dropped making the expenditure more cost effective. Utilize outdoor advertising, providing general awareness to the public at large and direct individuals to the company's website.


Product classifications: we will sell two types of product throw our website:
i. Electronic products (laptops, mobile phones, mp3 players, dvd players etc) 19




Pricing policy: Product pricing is based on offering high value to our customers

compared to most price points in the market. The price of our products (grocery) will considerably be lower from the market rate as we will collect them directly from the manufacturer. In case of electronic products we will become business partners or direct distributors of the popular brands so our price will be slightly lower than that is in the market. We are intended to attract customers to our website so the overall pricing policy will be as such that it makes our website different from those of the prevailing web based selling stores. Moreover we will offer better quality and selection. Factors that influence pricing Supply and demand Competitive pricing Cost and profit margin Affordability


Product packaging: We will use sophisticated packaging measures to ensure the

safety of the products (grocery) and in case of electronic products, as the products are already packed by the manufacturer, we will just use a sticker containing the identity of our website.


Distribution policy: We will distribute the products to the customers with our

responsibility. Initially we will only concentrate in distributing the products within the capital and gradually we will expand our business to other cities.

Sales Forecast: Our sales will be tracked using the same system that tracks our website visits
and contact requests. We project sales of our product will remain roughly equal throughout the 20

first year, with both categories rising from 30-50k per month at the beginning of the year to 75100k per month by the end of the year. Sales growth should be based on a) Market penetration b) Market expansion c) Expansion of product range d) New sources of revenue

Market Promotion: The plans for marketing and promotional strategies are:
Popular websites (e.g. Facebook, Google+) IT-based pages of newspaper(e.g. Onno Alo) Front pages of newspapers Online editions of daily newspapers to reach the NRBs(Non Resident Bangladeshis) Press release Free registrations in websites (e.g. Web Bangladesh, Google) Leaflets/Banners Stickers FM band radio stations of Bangladesh

Marketing Budget:

Particulars Advertising Sales Promotion Direct Marketing Total

2013 15,50,000 3,75,000 75,000 20,00,000

2014 14,75,000 4,25,000 1,00,000 20,00,000

2015 8,75000 5,75,000 50,000 15,00,000

2016 9,00,000 5,25,000 75,000 15,00,000

2017 17,00,000 4,25,000 75,000 22,00,000

Analysis (SWOT)
1) Strength
Very effective expected advertising channel 22

Easy payment system Providing variety of products Main purpose is to provide better customer service rather than making profit only.

2) Weaknesses
Earlier entry by other few related websites. Lack of technically efficient personnel. Minimum number of users of web sites. Poor telecommunication infrastructure with low bandwidth.

3) Opportunities
The growing trend of using internet The popularity of online shopping is increasing The buying process by people without being physically present lowers their concerns. The time constraint of people of buying from showrooms is reduced No bargain hassles

4) Threats
Limitations of supportive legal system. Cybercrime ex: Hacking which needs adequate security system. Peoples mindset is still not very open towards online shopping.

We have analyzed the current market situation by the five factor model of Michael Porter. In this model there are five forces. By those forces we have identified the competitiveness of the target


market. It is the renowned process all over the world to evaluate the appropriateness to enter into a business. Competitive Rivalry within an Industry: Within this market we have some strong existing competitors. Such as Agora, Meena Bazar, Gmart, Prince Bazar etc. But as we are going to start with the necessary items we don't have such type of competitor. It is a stable business because it is related with day to day life. So it is appropriate business to enter. Exit barrier is also low, so certainly it is an attractive segment of market to choose. Threat of New Entrants: Threats of new entrants for a business are always true. So we have always risk of those new entrants. For this business entry barrier is not very high, as a result in that sense it is an unattractive segment. In grocery business new entrants are always available, but if we can build ours as a brand name and gain the major portion of the market share we will certainly be able to avoid the threat of the new entrants. Threat of Substitute Product: We are going to compete with super shops. We have various types of readymade good, in this field we don't have real substitute products. Other industry such as our Grocery industry can be substitute product. But as those are not our real substitute product, it is certainly an attractive market. Threats of Buyers Growing Bargaining Power: Our buyers would not bargain with the price because we are offering in fixed price. As we are starting from a fixed price it would certainly fulfill the customer demand, because customers are always price sensitive. It is also avoidable because the switching cost of our goods would be much high. Our product would be cheaper than that of super shops. Threats of Suppliers Growing Bargaining Power:


We are going to launch a new trend of the grocery business. So the suppliers of that field are so much concentrated and organized. We emphasize on collecting items from diversified groups. We will collect specific items from specific places. As a result our suppliers are widened in Dhaka. So, low bargaining power of the suppliers makes the target market so much attractive.

The first and foremost task before the commencement of business is licensing the business under partnership act. We have to set up the business with the help of capital expenditures. And then these will be supported by personnel to continue operation and in case of expansion we will get 25

the help from the external resources. We will continue the research on development of our website through regular online survey participated by the customers. When an operational space will be collected by means of rent or buying along with the necessary equipment and personnel it will be right for us to start the operation. Last but not the least we have to arrange a good web developer who is ready to develop our online shopping website for us according to our requirements.

Expected number of consumers for a particular financial year will be estimated, after that time periods we will compare the projected and the actual number of customers. In case of material deviations we will find out the reasons operating behind the deviations and find out what is to be done to overcome this. a) Evaluate whether proper marketing promotions are going on b) Perform a survey regarding what more customers want from us c) Watch whether the staffs are performing their duties properly.

Here are financial highlights for projected five year

Pro Forma Income Statement


The following table presents the pro forma income statement for projected five years.

Particular Sales Less- COGS Gross Profit Operating Expense: Advertising Salary Offices Supplies Rent Utilities Depreciation Miscellaneous Expense Interest (15%) Total Operating Expenses Income before Taxes Taxes (40%) Net Profit

2013 1,00,65,000 6039000 4026000

2014 1,17,60,000 7371000 4389000

2015 1,34,75,000 8385000 5090000

2016 1,22,29,000 7637400 4591600

2017 1,26,00,000 7360000 5240000

20,00,000 5,16,000 50000 4,80,000 72,000 30,000 30,000 6,00,000 3778000 2,48,000 99200 148000

20,00,000 5,34,000 52500 4,80,000 72,000 42,000 35,000 6,00,000 3815500 573500 229400 344100

15,00,000 552000 55000 4,80,000 72,000 37,000 47,000 6,00,000 3343000 17,47,000 698800 1048200

15,00,000 612000 60000 4,80,000 72,000 45,000 53,000 6,00,000 3422000 11,69,600 467840 701760

22,00,000 648000 65000 4,80,000 72,000 57,000 48,000 6,00,000 4170000 10,70,000 428000 642000

Pro Forma Balance Sheet

Here presents pro forma balance sheet for projected five years. Pro Forma Balance Sheet:
Particular 2013 2014 2015 2016 2017


Assets Total Fixed Assets Total Current Assets Total Other Assets Total Assets 18,25,000 45,00,000 2,25,000 65,50,000 16,05,000 48,00,000 3,20,000 67,25,000 16,25,000 51,50,000 3,00,000 70,75,000 15,03,000 49,25,000 3,75,000 68,03,000 16,40,000 50,50,000 4,35,000 71,25,000

Liabilities & Owners Equities Liabilities Total Current Liabilities Total Long Term Liabilities Total Liabilities Owners Equities Total Liabilities & Owners Equities 8,50,000 40,00,000 48,50,000 17,00,000 65,50,000 9,75,000 40,00,000 49,75,000 17,50,000 67,25,000 11,00,000 40,00,000 51,00,000 19,75,000 70,75,000 9,75,000 40,00,000 49,75,000 18,25,000 68,03,000 10,25,000 40,00,000 50,25,000 21,00,000 71,25,000

Project Analysis:
The discount rate has been calculated using WACC. The cost of debt is 15% as it is a low moderate Risk project and a speculative return on equity is 20%, based on the expectations of the Entrepreneur. Therefore the WACC stands at [(15*0.40) + (20*0.60)] = 18%. 28

Parameters NPV IRR Payback Period (in years) Discounted Payback Period (in years)

Value 16,59,821,32 57.32% 5.88 6.47

Ratio Analysis:
Ratio Current Ratio Net working capital (Tk.) Gross Profit Margin Net Profit Margin Debt-equity ratio Debt-Asset ratio Return on asset Return on Equity 2013 5.29 36,50,000 40% 1.14% 2.85 0.74 2.26% 8.70% 2014 4.92 38,25,000 37.07% 2.93% 2.84 0.74 5.11% 19.66% 2015 4.68 40,50,000 37.78% 7.78% 2.58 0.72 14.82% 53.07% 2016 5.05 39,50,000 37.55% 5.74% 2.72 0.73 10.32% 38.39% 2017 4.93 40,25,000 41.59% 5.10% 2.39 0.71 9.01% 30.57%

Break Even Analysis:

Accounting breakeven point is the sales level that results in a zero project net income. In the initial stages of new venture it is helpful for us to know the point where we can avoid loss. This will provide us the insight into the financial potential for the start-up business. So that we will calculate break-even by this formula, Sales, S = (Fixed Cost + Variable Cost - Depreciation) * (1 Tax Rate) Following table shows the break even sales for projected five years. 29

Year Total Fixed Cost Total Variable Cost Depreciation 40%Tax Rate Break Even Sales

2013 3283600 6039000 30000 40% 5575560

2014 3773500 7371000 42000 40% 6661500

2015 3306000 8385000 37000 40% 6992400

2016 3377000 7637400 45000 40% 6581640

2017 4113000 7360000 57000 40% 6849600

Graphical representation: The graphical representation of the break even sales presents below

Break Even Sales 30

Variable Cost

Fixed Cost

Stress Analysis:
Stress test has been done by increasing the sales by 5% and decreasing direct cost by 5% for the best cost scenario and vice versa fro worst case scenario. Here NPV is still high even in worst case.

Stress Analysis Units Sold Variable Cost Per Unit NPV

Base Case

Best Case

Worst Case

5% higher than normal 5% lower than normal 5% lower than normal 16,59,821.32 21,33,761.59 5% higher than normal 7,23,853.55

Performance Analysis:

Sales Gross Profit

1,00,65,000 4026000

1,17,60,000 4389000

1,34,75,000 5090000

1,22,29,000 4591600

1,26,00,000 5240000


Net Profit






16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 2013 2014 2015 2016 2017 Sales Gross Profit Net Profit

Projected Ravenue from Selling:
Particulars 2013 2014 2015 2016 2017

Income from Electronics Products


Mobile Laptop Monitor Television Income from Others Electronics Products Total Income from Electronics Products Income from Grocery Products Income from Other Sources Total Income

11,25,000 55,50,000 5,25,000 2,25,000 7,20,000 81,45,000 12,00,000 7,20,000 1,00,65,000

18,40,000 60,50,000 4,75,000 3,75,000 8,50,000 95,90,000 14,50,000 7,20,000 1,17,60,000

19,40,000 72,75,000 7,35,000 3,50,000 8,75,000 1,11,75,000 15,80,000 7,20,000 1,34,75,000

15,34,000 65,50,000 4,25,000 3,50,000 9,00,000 97,59,000 17,50,000 7,20,000 1,22,29,000

17,20,000 65,75,000 5,00,000 3,85,000 9,25,000 1,01,05,000 17,75,000 7,20,000 1,26,00,000



The target market is Dhaka City Corporation area for the first 5 years. The firm uses simple distribution channel with zone-wise dealers. The Dhaka city has divided into 9 different zones cover 19 areas. The following table shows the 9 zones and areas under each zone:
Name Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Covring Areas Mirpur, Pallabi Cantonment, Kafrul Mohammadpur, Dhanmondi Ramna, Tejgaon Hazaribag, Lalbag, Kamrangirchor Kotowali, Shutrapur Shyampur, Demra


Zone 8 Zone 9

Motijheel, Sabujbag Khilgaon, Badda


The firm uses pull strategy as its promotion mix strategy which is spending a lot on advertising and consumer promotion to build up consumer demand. It makes the promotion mix efficient enough to activate customers to ask for the product. Here is a graphical view of the pull strategy:



Customer Marketing activities