An Assignment

On
Business plan of “Seen Chemical Industry Ltd.”

Course Title:Entrepreneurship

Course Code:MGT3135

Section:01

Submitted to
Sazzadul Hoq Farin

Senior Lecturer

Dept of BBA

Submited by
NAME ID

Raju Mia 2015110000113

Submission Date:30 May 2020

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Executive summary :

Seen Chemical Industry Ltd is partnership type business in which all partners invest equal share of capital in the

organization. Seen Chemical Industry Ltd is a growing chemical industry in Bangladesh and it has made the status

of growing detergent chemical market of Bangladesh. It is relentless in detection of business revolution and

development. Seen Chemical Industry Ltd first entered the Bangladeshi market back in 2018. In this very few time it

has cemented its place as one of the leading chemical industry in Bangladesh. It has created job opportunities for

many fresh graduates. Seen Chemical Industry Ltd also uses university going students as their agent and pay them

based on commission.

Business Description Segment :

Name of business: Seen Chemical Industry Ltd

Type of business: Partnership

Number of owner:03

Number of Employee:17

Phone Number:01311478880

Address:Ashkona,Dakshin Khan-1230,Dhaka,Bangladesh

Slogan: "Shine like Star"

Sole Proprietorship

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  A sole proprietorship is an unincorporated business with only one owner who pays personal
income tax on profits earned.
 Sole proprietorships are easy to establish and dismantle, due to a lack of government
involvement, making them popular with small business owners and contractors.
 Many sole proprietorships end up getting restructured into an LLC, in sync with the company's
expansion.

Partnership
 A partnership is an arrangement between two or more people to oversee business operations
and share its profits and liabilities.
 In a general partnership company, all members share both profits and liabilities.
 Professionals like doctors and lawyers often form a limited partnership.
 There may be tax benefits to a partnership compared to a corporation

Corporation
 A corporation is a legal entity that is separate and distinct from its owners. Corporations enjoy
most of the rights and responsibilities that individuals possess.
 An important element of a corporation is limited liability, which means that shareholders may
take part in the profits through dividends and stock appreciation but are not personally liable for
the company's debts.
 Corporations are not always for profit.

I choose Partnership because Two heads are better than one (mostly).Example-The Coen Brothers. Frank
and Orville Wright. Dave Packard and Bill Hewlett. Larry and Sergey. Rocky and Bullwinkle—well maybe
not them. But in most cases, having a great partner can multiply the amount of ideas, intelligence,
background, and experience your business can draw upon. We all need a good wingman or -woman.

INDUSTRIAL ANALYSIS
 Laundry Detergent market in Bangladesh is estimated to be worth TK. 1,20 crore
(Powder, Conventional & Liquid combined)
Segment Market Share
Powder 60%
Conventional 10%
Liquid 30%

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INDUSTRIAL ANALYSIS
 Liquid market has grown at a 20% to 25% rate.
 Of this, Powder segment has grown at rate of
40% this year. It accounted for only 15% of the detergent 3
years back.
 In–home consumption of detergent has gone up from 30%, three
years back to 80% today.
 Powder based drinks account for two thirds of detergent
Industry.
 More than 80 % of sales happen through the unorganized
route – super shop, street corner shops and so on

 SEEN Chemical Industries Ltd will produce Detergent Powder & Liquid.
 SEEN Chemical Industries Ltd is going to make unique position in terms of corporate presence
with its advanced technology and the instrumentation required to manufacture a detergent that is
much better for utmost customer satisfaction.
 SEEN Chemical Industries Ltd will be an environment-friendly company dedicated on
sustainable development and corporate social responsibility, as a service to society and
preservation of nature.
 SEEN Chemical Industries Ltd headquarter will be situated in Dhaka and it would be having
Satellite branches in major Metros

Why this Product?

 Bangladesh currently produces about 10 million tons of Detergent, which is about 9% of the
world’s production of detergent.
 Only about 17 percent of the chemical in Bangladesh are processed, which is much lower when
compared to countries like USA (65 %), Philippines (78%) and China (23)%

Factors Driving Demand for Our Product

 1) Changing age profile- A relatively larger share of mature population which has the ability to
spend on detergent
 2) Increase in income- The middle and upper middle income groups growing at a faster rate than
in developed countries resulting in higher spending on detergent.
 3) Social changes- Increasing number of working women.
 4) Life style factors- Increasing fashion consciousness.
 5) Availability of Organized Retail outlets- These provide the much needed forward linkages.

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TARGET MARKET

Primary Market
 Teens – More experimental
 Youth – Experimental and more buying power
 Working People
 Housewives
 Elderly people

Secondary Market

 Travel Industry
 Airlines, Railways and Local Transport Systems
 Recreational
 School, Colleges
 Hotels, Restaurants, Bars etc.

Market Segmentation
 Market segmentation is the process in marketing of dividing a market into
distinct subsets (segments) that behave in the same way or have similar
needs

Variables Used for Segmentation

1) Geographic variables
2) Demographic variables
3) Psychographic variables
4) Behavioral variables

Market Segmentation Variables

Geographic
 By leveraging the benefits of liberalization and integration of the markets of the world, SEEN
Chemical Industries Ltd will seek to serve both domestic and international customers.
 Metropolitan Cities, major cities/towns of the states.
 Density of Area: Urban, Semi-urban, Rural.
 Climate: Tropical

Demographic
 Age – all age group
 Gender – Both Male and Female
 Family size - doesn’t matter
 Education - doesn’t matter

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  Income – middle & high end consumer
 Occupation – student, working and retired people
 nationality/race – doesn’t matter
 language - doesn’t matter

Behavioral
 benefit sought
 product usage rate
 brand loyalty
 profitability
 income status

Psychographic

Personality Yes
Lifestyle Yes
Value Yes
Attitude No

Major Competitor Analysis

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  Surf Excel flagship brand detergent is a
market leader in the packaged detergent
category.
 Surf Excel with a market share of 57%
offers to its consumers the largest range of
3 detergent that comprise Powder,
Conventional & Liquid.
 Surf Excel Lemon Detergent, Bangladesh's
first packaged detergent.
 Spread over 11 acres and geared to process
150 tons of chemical per day, it has the
capacity to produce 192 tons of chemical.
 Keya from Keya Group is the largest
distributed detergent Chemical with 85%
market share (The Daily Star)
 It reaches more than 10 lakh retail outlets
in up to class C towns
 Keya Group Ltd, in 1996 had a market
share of 5% in the Detergent Chemical.
 In 2003 its new variant-‘2 Minute Please’
was launched which was a hit.
Strengths & Weakness of Competitors
 Rin is a product of vast Unilever family
and has a market share of 25%
 The company sources chemical
concentrates from China.
 They come in RIN White of one liter and
PET bottles of 500 ml and one liter.
 Unilever also markets Wheel a special
detergent for the Industry which is lower
cost.
 RIN, in association with Unilever have
launched Rapid Wash Powder.
 Wheel was launched in 1976.
 In 1993, Wheel was acquired by Square
Group Bangladesh.
 Over the years, Wheel has become
synonymous with Lemon Detergent.
 The chemical became a hit with successful
advertisement campaigns like "No Shine,
No gain,'
 It is available in 200 ml , 250 ml , 125 ml
Liquid and 200 ml Powder.
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 Name Strengths Weakness
Rin Chemical Pvt Ltd Acquired Hanif Chemical Pvt Entering in a new
Ltd Distribution network Segment

Unilever Ltd Global leader in chemical New Entry

Growing Fast

kohinoor chemical Ltd Global Brand in chemical Less Product Line

Squire Chemical Ltd Market share Less Product Line

Surf Excel Market leader Less cost effective

Wheel Innovation New entry

Fast Wash Chemical Ltd Innovatoin New Entry

SWOT ANALYSIS

STRENGTH WEAKNESS

• Adequate availability of raw • Seasonal availability of

INTERNA materials chemical
• Price, a competitive advantage • Brand acknowledgement
L • Late entry into the market.
• Natural Product.
• Dependence on Khan
Chemical Ltd.

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 OPPORTUNITY THREATS

• Participation with a growing Industry. • Cut throat competition

• Competitive advantage over detergent chemical • Unstable government policies
companies. • Rising Global Warming
EXTERNA • Success of incredible Bangladesh
campaign
L • Possible deal with Bangladesh Cricket Board
(BCB).

PESTEL Analysis:
A PESTEL analysis is a framework or tool used by marketers to analyses and monitor the
macroenvironmental (external marketing environment) factors that have an impact on an organization.

PESTEL stands for:

P – Political

E – Economic

S – Social

T – Technological

E – Environmental

L – Legal

Political Factors
These are about how and to what degree a legislature mediates in the economy. This can incorporate –
government strategy, political security or instability in abroad markets, foreign trade policy, charge
arrangement, labor law, environmental law, trade restrictions and so on. It is clear from the rundown over
that political variables frequently affect associations and how they work together. Associations should
have the capacity to react to the present and expected future enactment, and modify their promoting
arrangement as needs be.Rawvaly.com is an internet based company and they depend on people ordering
through internet.

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Economic Factors
Economic factors have a noteworthy impact on how an organization does business and also how
profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,
disposable income of customers and businesses and so on.

These factors can be further broken down into macro-economic and micro-economic factors. Macro-
economic factors deal with the management of demand in any given economy. Governments use interest
rate control, taxation policy and government expenditure as their main mechanisms they use for this.

Micro-economic factors are all about the way people spend their incomes. This has a large impact on B2C
organizations in particular.

Bangladesh is a developing country, here the per capita earning is low. So SEEN Chemical Industries
Ltd’s pricing should be done accordingly

Social Factors
Social Factors are the areas that involve the common belief and attitudes of the population. These factors
include – population growth, age distribution, career attitudes, and social belief and so on. These factors
are of particular interest as they have a direct effect on how marketers understand customers and what
drives them.

People in our country has this belief that online business isn’t trustworthy. If this belief can be changed,
then SEEN Chemical Industries Ltd would capture more market share from new customers.

Technological Factors
We all know how fast the technological landscape changes and how this impacts the way we market our
products.

This is the age of smartphone, and most of SEEN Chemical Industries Ltd’s target market uses one. So
SEEN Chemical Industries Ltd is focusing on Detergent advertising to capture the market.

Environmental Factors
Environmental factors include ecological and environmental aspects such as weather, climate, and climate
change, which may especially affect industries such as tourism, farming, and insurance.

Legal Factors
Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and
safety law. These factors can affect how a company operates, its costs, and the demand for its products.

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 Marketing Mix

Product

 Rapid Wash is a 100 percent Detergent Chemical which will be produced and marketed
by the SEEN Chemical Industries Ltd.
 BRAND NAME: Rapid Wash

Product Life Cycle

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Our product lie in Introduction Period of PLC
 Low sales
 High costs per customer
 Negative profits
 Innovator customers
 Few competitors
Objective: To create awareness of product
 Offer a basic product
 Price at cost-plus
 Selective distribution
 Awareness – dealers and early adopters
 Induce trial via heavy sales promotion

Place
 In the initial phase we would be outsourcing chemical processing and packaging of Rapid Wash
under SEEN Chemical Industries Ltd.
 Some Chemical would be purchased from Gazipur and Chittagong. Detergent Processing &
Packaging would be outsourced to local producer.
 Mode of Transport: Road Transport

Pricing
 As a new comer our pricing strategy is to introduce our products in the market at lower prices so
as to create huge demand in the market and then compete with other competitors.
 As we come up in the demand, we will increase our prices and will provide more efficient and
affordable Detergent.

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Pricing Strategy

Penetration Pricing

 Our product will be lie on penetration strategy with high quality & low price
 For introducing new product
 Price low to capture market share
 Expect to make profit in volume

Promotion

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  As we are in the Introduction phase, our objective is to create brand awareness through
Informative Advertising.
 Use of Print Media, Radio Advertisement, Hoardings in Public Spots, Sample Distribution,
Organizing Events, TV Commercial etc.
 Tie Up with major Cinema halls to promote our products during Intervals.
 In-film advertising, in its most effective form, is about a brand being a part of the cinema's
content.

Web Marketing
Social Networking: In order to reach out to the TA and ensure that they feel more connected with the
brand it is necessary to start making conversation.

facebook
 Creating a community on facebook
 Creating a Fan page on facebook
 This will enable the brand to keep its TA engaged and updated on the introduction of new product
and events

twitter
 Creating an active account on a micro-blogging site such as twitter, where regular tweets on
product and event updates will ensure interactivity
 Followers will be encouraged to tweet their suggestions on new product.

Financial Statement

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 Balance Sheet

Current ASSETS
Cash 100000
A/C Receivable 150,000 -
Inventory 50000
Prepaid expenses 20000
Total current assets 170000

Fixed assets

Equipment 70,000
Less:accumulated depreciation 2,500 67500
Property and equipment at cost 500000
Total fixed assets 567500
Intangibles(goodwill) 5000
Total assets 572500

liabilities
Current Liabilities
a/c payable 40000
Notes Payable 30000
salaries payables 35000
Accrued interest payable 10000
Total Current Liabiltirs 115000

Long term liabilities

mortgage 50000
Note payable 20000
Total Long term liabilities 70000

OWNERS' EQUITY

Capital 250,000
Total Liabilities 115,000
365000

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Ratio Analysis
Current ratio 1.48
Quick ratio 0.71
Debt Ratio 4.93

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 Income Statement

Revenue
Gross Sales 500000
Less: Sales Returns and
Allowances 65000
Net Sales 435000

Cost of Goods Sold

Beginning Inventory 50000
Add: Purchases 35000
Direct Labor 7500
Indirect Expenses 80500
Inventory Available 173000
Less: Ending Inventory
Cost of Goods Sold 173000

Gross Profit (Loss) 262000

Expenses
Advertising 15000
Contract Labor 25000
Depreciation 5500
Dues and Subscriptions 25000
Insurance 45000
Office Expense 17500
Supplies 20000
Telephone 18500
Utilities 5000
Wages 30000
Total Expenses 206500

Net Operating Income 55500

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Other Income
Gain (Loss) on Sale of Assets 55500
Interest Income
Total Other Income 55500

Net Income (Loss) 111000

Sales
Sales price per unit 1,000.00
Sales volume per
period (units) 10
Total Sales 10,000.00

Variable
Costs
Direct material
per unit 20.00
Shipping per unit 10.00
Supplies per unit 50.00
Other variable
costs per unit 60.00
Variable costs
per unit 140.00
Total Variable
Costs 1,400.00

Unit contribution
margin 860.00
Gross Margin 8,600.00

Fixed
Costs Per
Period
Administrative
costs 12,000.00
Insurance 1,000.00
Other fixed
costs 5,000.00
Total Fixed
Costs per
period 18,000.00

Net Profit
(Loss) (9,400.00)

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Results:
Break even point (per units) sale volume analysis: (10 units)

Sales volume per period (units)

Sales price per unit

Fixed costs per period

Variable costs

Total costs

Total sales

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 Net profit (loss)

0 1 2 3 4 5 6 7 8 9 10
1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
18,000.0
18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 0 18,000.00 18,000.00 18,000.00
0.00 140.00 280.00 420.00 560.00 700.00 840.00 980.00 1,120.00 1,260.00 1,400.00
18,980.0
18,000.00 18,140.00 18,280.00 18,420.00 18,560.00 18,700.00 18,840.00 0 19,120.00 19,260.00 19,400.00
0.00 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00
(18,000.00 (17,140.00 (16,280.0 (15,420.00 (14,560.0 (13,700.0 (11,980.0 (11,120.00 (10,260.0
) ) 0) ) 0) 0) (12,840.00) 0) ) 0) (9,400.00)

CONCLUSION

SEEN Chemical Industries Ltd is one of the detergent chemical industry in Bangladesh and it has
made the status of growing detergent marketplace of Bangladesh. It is relentless in detection of
business revolution and development. SEEN Chemical Industries Ltd first entered the Bangladeshi
market back in 2018. In this very few time it has cemented its place as one of the leading
chemical industry in Bangladesh. It has created job opportunities for many fresh graduates.
SEEN Chemical Industries Ltd also uses university going students as their agent and pay them
based on commission. It gives them a great experience which they can use in real life. They
always maintain good relation with both their vendors and customers. The customer care is
always there to help customer with any problem. After all these it still hasn’t stopped
progressing, it continues to bring to something new to the mixture. While working with the
Content Team, SEEN Chemical Industries Ltd, I experienced the work process of multinational
company, which is a big achievement for me. My job responsibilities along with other activities
has developed my practical knowledge and provided me an amazing experience. SEEN
Chemical Industries Ltd has a very bright future.

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