Case Title:A Local Case on the Business Creation

Introduction:
Without having any prior knowledge of business, it is almost challenging to become an
entrepreneur or to open a startup. Future entrepreneurs can gather necessary knowledge either
from working in a company or intensively working at the beginning within an entrepreneur or
startup or from collecting information from him or her. This individual assignment provides an
opportunity to work on an entrepreneur/startup, which enables us to gather much information
about a startup. This task has allowed collecting information from “S A plastic Industries”  

Background of the Company:

S A plastic Industries are one of the leading manufacturer of PET (polyethene terephthalate) and
HDPE (High-Density Polyethylene). This company had started its journey in 2016 with the
experienced hand of Mr.Shakil Ahmed, who has more than ten years in this field working as a
Chairman of this company. There is another person who had played a significant role in the
development of this company named Mr. Zubair Ahmed working as managing director of the
company. He is a prominent entrepreneur of this company who has always seen a dream to
become an entrepreneur because he always likes to work independently. It is a medium-sized
organization where the number of employees is 65. The approxmiate value of this business is
around 100million with credit.Its production process mainly depends on semi-auto machines. It
offers PET and HDPE bottles of different size and weights at a different price to the business
consumers. Its main customers include Pharmaceutical Company, Pesticide Company, Unani and
herbal company and oil companies. It has two factories; one is Kamrangichar another one is
BISIC Industrial Estate BISIC Industrial Estate Kamlapur. Its corporate office is at Mirpur
DHOS.

Mission: It basically pursues its vision through the following:

Customers: Achieve a lasting partnership through an unwavering commitment to
excellence in everything we do.

Employees: Trust, respect and empower our employees to help them achieve their
goals(S A plastic Industries, 2020).
Vision: To emerge as Bangladesh’s number one PET as well as HDPE Bottle manufacturing
company and deliver exceptional quality products and services across the globe.

Background of this Business:

From the boyhood, Mr. Zubair has independent, and he always likes to do something of his own.
He has a too high level of passion for machinery. Once he visited machinery fair here in Dhaka.
From there, he got the concept of opening this business, and he discussed his thought with Mr.
Shakil, and then they planned to start this business because they had seen most of the company
does not use modern machine which may reduce the cost but through using modern machine cost
can be minimized besides with passage of pf time demand of these bottles is increasing leaps and
bounnd and market has become big so they started open the business. However, they faced great
difficulty in getting lone to set up the business as they were new in business industry banking
sectors as well as financing sector was not interested in them in investing money but at the end,
they got the loan. After setting up the business, they faced another challenge of getting customers
as their industry was new in the market. Customers did not have sufficient trust them. Customers
had always afraid of the quality of the product. These obstacles had led their business to
uncertainty whether they would succeed to continue the business or not. Nevertheless, Mr.
Zubair said that their strong mentality leads them toward success. They have the patience to stick
with a task if they fail. Most notably “Never give up mentality” helped them to become
succeeded. Now, they got the best company in the country as their clients.
Marketing Plan of the S A plastic Industries:

Analysis of Marketing
the Mix plan Policy
customers product regarding
Target clients price customer
and their needs place service
promotion
Figure 1: Marketing plan Components

Source :( Piper& Smith, 2017)

Analysis of the customers:

Their main customers are the companies whose need PET and HDPE bottle such as
pharmacetutical, Pesticide Company, Unani and herbal company and oil companies.By
considering the need of the Customers they offer a variety Sizes bottles

Marketing mix plan:

Product:It offers PET and HDPE bottle to its customers according to their requirements. It
offers different shapes and sizes bottle to its customer according to customer demand. Sample of
their products has displayed below:
 Figure 2: Sample of the Bottle

Source :( Facebook page of "S A Plastic Industries", 2020)

Price:

It offers reasonable price to the customers than competitors which enable the customers to
purchase bulk amounts. The price is determined on how much Litter the bottle can carry.

Litter Price with CSD Caps (TK) Price with normal Caps (TK)

100ml 4` 6

500ml (Half Litter) 10 8

1 Litter 15 12

2 Litter 18 16.50

5 Litter 22 19
Place:
Table 1: Price list of S.A plastic Industries

Source: Author’s Construct

The Company has two distribution centers. These distribution centers are located beside the
factory to avoid the delivery cost. Sometimes the company delivers the products to itself or
sometimes the customers take the products from the warehouse. It depends on the agreement
with the customers.

Promotion:

The company has used two medium for promoting their products. One is Digital marketing such
as its own website, Facebook page for disseminating information, for customers review etc.
Another is content marketing where it puts different types of contents about their bottles, benefits
of different types of bottles. How does it different from others, what are facilities it has given to
the customers.

Policy regarding customer service:

The Company believes that satisfied customers are key to become successful. It helps its
customers actively in order to improve its core value of the brand. The R&D team will work to
make things easier for its customers. An emergency hotline will be provided to assist consumers
in an emergency. We intend to provide our customers with expert advice in future.

The business strategy:

Like other sectors, this sector faces an intensive competition. There are 27-30 Companies in this
sector. To compete against competitiors, this compamy takes “Cost leaderhip” strategy where
company offers same quality products to competitiors but the price is less than competitiors.
Here, this company offers less price than its competitiors and sell more products and generate
almost equal revenue to its competitiors besides the company offers credit facility to its
customers (On sale) (Richardson, 2013)
 Raising risk capital

The onwers give around 2.5 million Taka for starting this business and they take approxmiately
25 million from the IBBL (Islami Bank Bangladesh Limited) for starting the business. (The
onwer was not willing to disclose all information).

Business model Canvas .

Designed for: Designed by: Date: version

Business Model Canvas S.A plastic Industries Md. Arif Rahian 15-09-2020

Key Partners Key Activities Value Propositions Customer RelationshipsCustomer Segments

Producing PET and High quality products The company Its main customers
There key parthners and HDPE bottle as at the less price to the maintains long term include
include Customers, per the customers customers on time. If relationship with its pharmacetutical,
suppliers, delivery requirements and customers find any customers. For each Pesticide Company,
company, delivery the goods to defect in our products customers they Unani and herbal
govt.authorities and the customers on time company refunds the appoint a dedicate company and oil
lastly there payment or adjust the personal assisatance. companies
employees. Key Resources payment to next order Channels
It includes and get the right The company uses E-
machinary, brand products mail, telephone to
name, bank-balance, communicate its
parthners customers. For
payment depends on
Bank. For sending the
goods it depends on
delivery company
which delivers the
goods by road.
Cost Structure Revenue Streams
Most of the cost occur in purchasing the raw materials Its main source of revenue is selling the PET and HDPE
from the suppliers and bearing fixed costs. Besides, a little bottles. Sometimes by selling extra raw material to small
cost occur in variable expenses. company it generates extra money provided if it has
excessive raw materials.

Table 2: Business Model Canvas

Source: Author’s Construct

Appendixes:

Visiting Card of the owner has attached ( I attached one card of the owner because during
interview another owner was out of Dhaka for personal reason)

References:

Richardson. (2013). Business Competitive strategy. Board Leadership, 1995(21), 1-8.

https://doi.org/10.1002/bl.38619952101

S A plastic Industries. (2020). Saplasticindustries.com. Retrieved 15 September 2020, from

http://www.saplasticindustries.com/.