Assignment: Business Prospect in the Village

Course: Marketing Management

Course code: M 302






Submitted to:
Md. Iftekharul Amin
Assistant Professor
Institute of Business Administration
University of Dhaka









Submitted by:
Ahnaf Ahmed
Roll: ZR 62, Section: A, Batch: 20
Institute of Business Administration
University of Dhaka








Institute of Business Administration
University of Dhaka
Dhaka 1000
June 4, 2014


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1. INTRODUCTION
1.1 Background:
Araihazar Upazila is part of the Narayanganj district in the Dhaka Division of
Bangladesh. With a gender distribution of roughly 51.75 % male and 48.25 % female,
the Araihazar Upazila currently has a population of 299,855 according to a census
conducted by the Bangladesh Bureau of Statistics as of March 15, 2011. It has 52,963
units of house hold and total area square 183.35 km. Araihazar has 12 Unions/Wards,
182 Mauzas/Mahallas, and 315 villages.
Araihazar Upazila, just like most of the upazilas in Bangladesh, is famous for its agro-
based cultural. Almost 80% of the farmers in the upazila are engaged in producing
Irri. Here are some of the notable agricultural contributions of the Araihazar Upazila.

Agricultural Contribution: Main crops are Paddy, jute, wheat, corn, potato, kalai,
sesame, mustard, vegetables. Pan cultivation, which was once quite extensive, is now
almost extinct.

Figure 1. Location map of Narayanganj district in Bangladesh
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1.2 The Village of Loshkordi:
The village of Loshkordi is part of the Araihazar Upazila. The village currently has a
population of roughly 3,000 according to the Union Parishad established there. It is
evident that the gender distribution of the village is almost 50-50. Farming is the most
popular occupation of the village with Iri being the most cultivated crop in the region,
because of their high yield (about 15 to 20 maunds per hectare), durability and
different varieties (thin, medium and thick). However, some portion of the workforce
has engaged themselves in Truck and Bus driving.


Figure 2.Administrative map of Araihazar Upazila highlighting the Loshkordi village

2. BUSINESS IDEA: SWEET SHOP
2.1 Overview:
In recent years there has been a sudden growth in sweet shops in the village of the
Loshkordi. There have been 3 new sweet shops established within Loshkordi since
2012, and according to the owners and the villagers, these shops are doing very well.
This industry is still in its growth phase and is far from being saturated. It is currently
a good time to invest in this sector and cash in on the booming trend.
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The business idea that is being proposed is of a sweet shop, initially with the sole
intention of establishing itself in the market of Loshkordi with top quality sweet.
Having achieved the success of the business in the short term, expansion plans can be
made to make a move in terms of exporting these sweets in all parts of the Araihazar
Upazila first and then to the city of Narayanganj.

2.2 Justification:
In congruence with the growing trend of sweet shops in Loshkordi, setting up a new
sweet shop which caters to the needs of the villagers could be a profitable venture. It
will also allow more room for employment in that region.

On top of that, the blossoming financial situation of the 3 sweet shops can also work
as an incentive for potential investors to establish a new sweet shop in Loshkordi. The
existing sweet shops usually sell 6,000-7,000 BDT on average with an average
expense of 3,000-4,000 BDT, leaving the owners with an average daily profit of
2,000-3,000 BDT.

So it is evident that with proper planning and execution, setting up a sweet shop can
be a good business plan for the region of Loshkordi.

2.3 Target consumers:
The target consumers can be divided into two categories:
(a) People living inside Loshkordi
(b) People living outside Loshkordi (the rest of Araihazar Upazila and
Narayanganj district.

2.4 SWOT Analysis:
2.4.1 Strengths:
Growing market
Not a big work-force needed
Preexisting fame
The customer base being small initially, starting on a small scale would be
feasible
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Slightly lower prices would be able to attract more customers

2.4.2 Weaknesses:
The shortage of expert cooks for sweets in that region
Due to knowledge gap, there could be adaptability issues
Since its a new business, it might be difficult to expand if customer base
increases suddenly

2.4.3 Opportunities:
Expansion and integration with Araihazar Upazila and the city of Narayanganj
Huge potential for growth
Massive employment opportunity with the growth of the business

2.4.4 Threats:
Already an established group of competitors
Political unrest in the area can hamper the growth of the business
Entry to barrier very low


3 INVESTMENT PLAN
3.1 Overview:
The overall costs for initial investment will amount to BDT 280,000.

3.2 Investment Breakdown:
Investment in the Sweet Shop will consist of the following components:
(a) Inventory:
Raw materials
Tables and counters (5-7 respectively, preferably RFL Plastic and foldable
furniture)
Cooking equipments
Rent arrangement (installation at a one to two room capacity at local
marketplace)
(b) Personnel:
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Training costs for employees (3-4 routine employees, one sales manager, two
cooks)

The following table lists the overall investment and costs breakdown (all costs are
overstated and approximated):
Inventory
Raw materials Tk. 60,000
Furniture 60,000
Cooking equipments 80,000
Rent (for one year, Tk. 5000*12) 60,000
Personnel
Employee salary 20,000
Total Tk. 280,000


Other expenses: (monthly)
Employee salary Tk. 20,000
Raw materials 60,000
Maintenance 5,000
Utility bills 55,000
Total: Tk. 140,000


4. MARKETING PLAN
For this business idea, a holistic marketing approach will be taken by integrating a
customer-oriented approach. Proposals for marketing plan include:

I. Business-to-customer model: A simple brochure will be developed, which will
outline the products and services of the sweet shop. This brochure will be sent
to almost every household. The idea is that this personalized approach will
help get a wider reach than employing posters.

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II. Strategic placement of posters and print media: After the initial outburst of
brochures, there will be advertisements through posters explaining the
prospects of the sweet shop. These posters will be put up near mobile recharge
stations, village bank branches, government offices and the village market
where most people in the expected target consumer base are known to visit
frequently.