DIRECT MARKETING OF

AGRICULTURAL PRODUCTS
Business Plan

Submitted to:

Barota Chokraborty

Assistant professor
Department of Marketing
Jahangirnagar University
Submitted by:

Tarikul Islam

ID: 2624
3rd Batch
Accounting & Information Systems
Jahangirnagar University
Submission Date: 18-05-2016

........................................................................................................................................................................................ 7 Pricing..................................... 9 Project Investment Cost:.... 10 Average Monthly Costs ... 9 Source of Funds: ............................. 8 Break Even point: .............. 4 Mission ...................................................................... 6 Key Success Factors........................Contents Executive Summary......... 11 Appendix .................................................................................. 5 Sales Projection ............................................................................................................................................................................................................................................................................................................................................................................................................................. 2 Company Description .............................................................................................................. 6 Long Term Goals ........................................... 3 Vision......................................................................................... 5 Industry Analysis ......................................................................... 8 Placement ................................................................................................................................................................................................................................... 8 Projected financial forecast for 5 years ......................................................................................................................................................................................................................... 6 Market Analysis.............................................................. 6 Marketing Plan ....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... 7 Promotion .......... 6 Growth Rate ........................................................................................................................................................................................................................................................................................................................................................................................ 10 Conclusion ...................................................... 9 Investment size ............................................................................................................................................................................................................................................................................................................................................................ 8 Financial Data.................... 4 Products & Services .............................. 4 Legal Status and Ownership................................................................................................. 11 ............................................................................................................................................................................................................................................................................................................................................................................................................ 9 Pay Back Period: .... 10 Social Impact .........................................

how people thinks. The extra profit taken by these intermediaries will be saved. Ultimately their living standard will increase. Overall this organization alone can’t change the entire agricultural marketing system. On the other hand. Here the main problems are intermediaries who do nothing but delivering the goods. Our society desperately need these sort of organizations. which increases the price 3 to 4 times often more. A country like Bangladesh where Agriculture consists of a large portion of GDP these anomalies aren’t acceptable. but not good enough. Executive Summary In current marketing system Farmers don’t get proper price and consumers have to buy these products at a high rate. This is a gateway to a better future for all of us. To compete with evolving market constant upgradation is necessary. rather it can make a change in the current market situation. As a new entrant we will enjoy several advantage for some years. customers have to pay high amount to buy these products. Middle class and lower middle class people often can’t fit this high price in their budget. There are several companies serving almost like this. Many people who work as intermediaries will be jobless. Our plan is to replace these 7 (approx.) with just ours. . To save farmers to save middle class. farmer becomes uninterested in farming and they are getting poorer day by day. We hope there will be many more companies in future like us which will grow competition among them to give farmers better facilities and customers good products. We are not saying this organization will make only positive outcomes. There are negative sides too. Also farmers. how they market goods. who are the backbone of our country will find new inspiration to go farming again instead joining garments factories. As a result.

Company Description Our companies goal is to eliminate as much intermediaries as possible. Below is an example of current market condition: From the diagram we can see there are almost 6 intermediaries in agricultural marketing chain. Although it’s not that much simple but the main concept is this. . We will collect products from our listed farmers through our employees. We can’t entirely eliminate them. transport those goods to our storage facility via our own transportation and finally sale those goods via retail outlets and website. but if we can do these things internally we can save the amount they take as profit. which will eventually decrease the total price.

Other agro based products. Rice 2. . Ensure profitability without harming society. Ensure that farmer gets proper price. 3. Mango 5. so that both farmers and customers can be benefited. Mission 1. 4. Pulse 3. Potato 4. Provide customers goods at reasonable price. 2. Vision Our vision is to create balance in agricultural marketing chain. Serve consumers with harmful chemical free products. Vegetables 6. Products & Services Agricultural products such as 1.

Home delivery 2. which is a potential threat. Rivalry among existing firms: There are several well established firms in the industry like. Ownership would be divided by the number of shares they hold.Services like 1. Agora. we can minimize it. Bargaining power of buyers: As we are providing products at lower rate barraging power of buyers are low. which will be operated under Companies Act 1994. e. Shawpno.com etc. Competitive Force Threat to Industry Profitability Low Medium High Threat of substitutes  Threat of New Entrants  Rivalry among existing firms  Bargaining power of suppliers  Bargaining power of buyers  . Later it can be converted into public limited company. d. which is very risky. Anyone can enter at any time in the market as competitor. Shobzibazar. Quality and price are the main option to overcome the threat. Mobile marketing Legal Status and Ownership The company would be a private limited company. b. c. Industry Analysis Industry analysis has been done using “Porter’s Five Forces Model”. a. Threat of New Entrants: The threat of new entrants is very high. Mostly Financing will be done by loans and outside investors. Bargaining power of suppliers: As farmers are our only suppliers their bargaining paower is also high. Online marketing 3. Threat of substitutes: There are plenty of substitutes in the market. Yet their weakness in minimizing the price is our strength. By following specific strategies.

Expand the business in seven divisions. Have our own transport facility. Our unique business idea 1. Create a good brand value. Increase the number of sales center. Available complementary products in market 4. Key Success Factors Attracting middle and lower middle class customers is our basic key to success. Creating huge unemployment problem price 6. Financial constrains as new entrepreneur 5. Insufficient practical knowledge about business 2. 2. Market Analysis SWOT analysis is given below: Strength: Weakness: 1. 7. 3. Probable consumer satisfaction 7. Availability of hygienic vegetables at cheap 4. Have our own storage facility. Positive response from questioners’ . 6. Increase the number of website and mobile sales with home delivery 4. 5. Have vacuum packaging facility to save products. Sales Projection In the beginning it would be 10000 tk/day upto 40000 tk/day (based on market research assumptions). High quality & quick service 3. Growth Rate Based on customer response for first 2 years it can be upto 30%. Fully energetic 6 entrepreneur and market 3. Our marketing strategy 2. Long Term Goals 1.

Gold (Middle Class): We will provide them with average looking products at a reasonable price. 3. Possibility of any strong future competitor 3. Website and mobile. Easy financing from Banks and personal 2. Easy access to market 4. Availability of raw materials Marketing Plan Our strategy is very simple. Political and local problems with 4. Direct attempt from intermediaries 2. Platinum (Upper Class): We will give them best sorted attractive products and the price of the goods will be a little bit high. First-mover advantage intermediaries. Pricing We will divide our every product into 3 categories for pricing. 2. An unlimited number of potential consumers 1. Opportunity: Threats: 1. Various government and legal barriers investment 3. Khulna and Barisal) will collect these products and send the products to our hired Cold Storage in Dhaka. . 1. We will sell our products via our Sales Center. Our three regional officers (Rajshahi. We will collect products from our listed farmers. Silver (lower class): We will provide them unsorted product at a low rate. 5.

3 Promotion Online will be the main medium of promotion.8 Selling Price 11.5 Profit 33. On third year our daily sell will be 57600 tk and yearly revenue will be 21024000 tk. 00. On fifth year our daily sell will be 82944 tk and yearly revenue will be 3027560 tk. On fourth year our daily sell will be 69120 tk and yearly revenue will be 25228800 tk. Also special campaign at places will be conducted. Title Taka Purchase 4 Transport 1 Storage 1 Wage & Salary 1 Rent 1 Others . . After 1 year we expect 20% increase in sell.000 tk. Financial Data Projected financial forecast for 5 years If our average daily sell will be 40000 tk then our yearly revenue will be 1. Placement Areas where most of the residents are middle and lower middle class like. Mirpur. Savar etc. On 2nd year average daily sell will be 48000 and yearly revenue st will be 17520000 tk.33% OVER cost price (12 tk) 2. 46.5 Total Cost 8.

000.000 Business Cards/Stationery 7.000 Security System Installation 10.000 Computer Hardware/Software 50.000 Signage 10.450.000 Lease Security Deposit Legal/Professional Fees 10. Investment size Project Investment Cost: `The project will require starting capital of 300000.000 Operating Cash (Working Capital) 150.000.000 Setup.000 3.000 Starting Inventory 1. Pay Back Period: We need at least 6 years to pay back the investment.000 Business Entity 20.000 Internet Setup Deposit 3.000 Business Licenses/Permits 30.Break Even point: When our average monthly sale will be 314000 tk from that month we will enter break ever point.000 Decorating 150. COSTS Estimated Actual Fixed Costs Advertising for Opening 10.000 Telephone 10.000 Machines & Equipment 50.000 Basic Website 10. From this we can say breakeven point will come on the 2nd month.000 Building Down Payment 1. We expect that our first month daily sale will be around 10000 tk.000 Total Fixed Costs - . installation and consulting fees 30.

000 Miscellaneous Expenses Mortgage Payments Lease Payment Owner Salary 40. As a result our country’s economic condition will be stable.  Consumer can buy their necessary agro products at a reasonable price. Average Monthly Costs Advertising (print.000 Other 2 (specify) Total Average Monthly Costs 314.000 Security System Monthly Payment Supplies Telephone 400 Travel 10.000 Equipment Lease Payments Inventory.000 Business Insurance Business Vehicle Insurance Employee Salaries and Commissions 85. raw materials.000 Rent 70.Source of Funds: As both of are student we don’t have ability to invest money. They will get chemical free fresh healthy product. This can reduce their poverty. So Farmers will be interested in farming. parts Franchise Fee Health Insurance Internet Connection 400 Principal repay 50.800 - Social Impact The social impact of our business is given below:  Farmers will get proper price of their products. . We have to depend on Investors. broadcast and Internet) 15. We think our business can make a positive competition with intermediaries and they will try to reduce their price also.000 Public Utilities Website Hosting/Maintenance 3.000 Legal/Accounting Fees Merchant Account Fees 1.000 Payroll taxes or Self-employment tax Transportation charge 40.

it will start a new era. Advancement in agriculture. Someone has to be the pioneer. If it is possible to grab the market. chemical free packaging system like Nitrogen vacuum packaging will be available. Appendix Questioners . We decided “We CAN”. funding for farmers to avail better equipment. Conclusion The profitability of this industry is high.