Business Plan on Fitgo

Business Plan on Fitgo

Course : MGT368
Section : 13
Prepared for : Looksina Khan (LKK)

Name: ID:
1. Farhin Ali 1731642030

2. Md Asif Bin Zahir 1731701630

3. Mahaj Ahmed Chowdhury 1731866630

4. Ishtiaque Chowdhury 1812627030

5. Mohammed Rahmat Ullah 1721952030

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Acknowledgement

The business plan for Fitgo is the joint effort of each member of the team. The report is

prepared according to the guidelines of the business plan outline.

Throughout the entirety of the course, all the five members of the team have worked

diligently to produce the report. Throughout the process, it has enabled us to gain a better

understanding about the nooks and corners of initiating a start-up.

We would like to thank everyone for helping us in completion of the report, and would also

like to thank our respected faculty for guiding us all throughout.

The members:

Farhin Ali

Md Asif Bin Zahir

Mahaj Ahmed Chowdhury

Ishtiaque Chowdhury

Mohammed Rahmat Ullah

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Contents
1.0 Introduction ........................................................................................................................ 6
1.1 Name and Address of the business: ................................................................................. 6
1.2 Names and Addresses of the Owners: ............................................................................. 7
1.3 Nature of the business: ..................................................................................................... 7
1.4 Statement of the financing needed: .................................................................................. 8
1.5 Statement of confidentiality of report:................................................................................ 8
2.0 Business Model .................................................................................................................12
2.1 Business Model CANVAS ................................................................................................12
2.2 Pricing Model ...................................................................................................................13
2.3 Social Goal ......................................................................................................................14
2.4 Sustainability ...................................................................................................................15
2.5 Eco Friendly Activities......................................................................................................15
2.6 Ethical Activities...............................................................................................................16
3.1 Porter's Five Forces.........................................................................................................17
3.2 PESTEL Analysis ............................................................................................................19
3.3 SWOT Analysis ...............................................................................................................20
3.4 Stakeholder’s Analysis.....................................................................................................22
4.0 Description of the Venture ...............................................................................................24
4.1 Product ............................................................................................................................25
4.2 Office Equipment and Personnel .....................................................................................26
5.0 Production Plan.................................................................................................................26
5.1 Subcontractors ................................................................................................................26
5.2 Assembling Plant .............................................................................................................29
5.3 Machinery and Equipment ...............................................................................................30
6.0 Operational Plan................................................................................................................33
6.1 Description of company operation ...................................................................................33
6.2 Flow of orders for goods and/or services: ........................................................................34
6.3 Technology Utilization......................................................................................................36
7.0 Market Plan .........................................................................................................................36
7.1 Product ............................................................................................................................36
7.2 Pricing .............................................................................................................................38
7.3 Promotions ......................................................................................................................40

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 7.4 Place ...............................................................................................................................43
7.5 Packaging........................................................................................................................43
7.6 Positioning .......................................................................................................................44
7.7 People .............................................................................................................................44
8.0 Organizational Plan...........................................................................................................45
8.1 Form of Ownership............................................................................................................45
8.2 Identification of Partners ..................................................................................................45
8.2 Terms of Agreement ........................................................................................................45
8.3 Authority of Principals ......................................................................................................46
8.4 Management-team ackground .........................................................................................46
8.5. Roles and Responsibilities of members organization ......................................................47
9.0 Assessment of Risk ..........................................................................................................50
9.1 Evaluation of Weaknesses ..............................................................................................50
9.2 New Technologies ...........................................................................................................51
9.3 Contingency Plans...........................................................................................................51
10.0 Financial Plan ..................................................................................................................52
10.1 Assumptions ..................................................................................................................52
10.1 Pro Forma Income Statement ........................................................................................53
10.3 Cash Flow Projections ...................................................................................................55
10.4 Balance Sheet ...............................................................................................................57
10.5 Break Even Analysis ......................................................................................................60
10.6 Sources & Application of Funds .....................................................................................60
11.0 Bibliography ....................................................................................................................61
12.0 Appendix..........................................................................................................................63

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1.0 Introduction
1.1 Name and Address of the business:
Factory & Office
Fitgo
Gazipur, Dhaka, Bangladesh

Tagline: “GROW WITH FITGO”

Retail Outlets

Jamuna Future Park KA-244, Kuril, Progoti Shoroni, Dhaka

Afmi plaza 1/A Bayazid Bostami Rd, Chattogram 4000

Sylhet City Centre Aided School Rd, Sylhet

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1.2 Names and Addresses of the Owners:

Farhin Ali Shegun Bagicha, Dhaka

Asif Bin Jahir Shantinagar, Dhaka

Ishtiaque Chowdhury Khilgaon, Dhaka

Mahaj Ahmed Chowdhury Bashundhara R/A,Dhaka

Mohammad Rahmat Ullah Khilgaon, Dhaka

1.3 Nature of the business:

Fitgo assembles and sells top of the line quality smart shoes, which gives the advantage of
following our health wellbeing execution. After each great run or exercise or even only an
easygoing day at work, individuals like to quantify their health performance toward the day's end.
So, the most ideal approach to quantify this presentation is by utilizing Fitgo, where you can count
calories tally, step tally and even pulse to hold wellbeing under wraps. We provide 3 unique and
distinct classes of shrewd shoes with exceptionally savvy colors:

A. FitgoWalker

B. Fitgo Runner

C. Fitgo Lifters.

Besides, we have chosen our target customers who have matured between 18 years to 65
years of age. All the shoes will be assembled at the factory in Gazipur and will be sold through our
physical stores, Dealers and online platforms.

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1.4 Statement of the financing needed:
The five founding proprietors of Fitgo are initially contributing a total of Tk 1,15,00,000 ,
and a loan of Tk 8,000,000 is to be taken by the bank. We are investing deliberately in our business,
since we are acquiring an industrial factory for the production of our smart shoes, along with that
we are putting a great deal in various mechanisms of advertising channels to reach our target
segments. We plan to open three physical stores in three urban cities of Bangladesh, with the goal
that we can lessen the expense of conveying it through other distribution channels. Alongside that,
we can likewise reach our clients all the more quickly our sales will rise adequately, in this manner
however it will help our business accordingly diminishing our expenses. We are attempting to give
our clients the best quality brilliant shoes at less cost in comparison with other global shoe brands,
yet we will undoubtedly give the best ensured item.

1.5 Statement of confidentiality of report:

CONFIDENTIAL DISCLOSURE AGREEMENT

THIS AGREEMENT dated January,16, 2021, by and between Fitgo, and Orion Footwear Ltd
(“Recipient”).

WHEREAS, Fitgo and Recipient, for their mutual benefit and pursuant to a working relationship
which has been or may be established, anticipate that Fitgo may disclose or deliver to a working
relationship which has been or may be established, anticipate that Fitgo may disclose or deliver to
Recipient documents, components, parts, information, drawings, data, sketches, plans programs,
specifications, techniques, processes, software, inventions and other materials, both written and
oral, of a secret, confidential or proprietary nature, including without limitation any and all
information relating to marketing, finance, forecasts, invention, research, design or development
of information system and any supportive or incidental subsystems, and any and all subject matter
claimed in or disclosed by any patent application prepared or filed by or behalf of by Fitgo, in any
jurisdiction, and any amendments or supplements thereto (collectively, “Proprietary
Information”); and

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WHEREAS, Fitgo desires to assure that the confidentiality of any Proprietary Information is
maintained;

NOW, THEREFORE, in consideration of the foregoing premises, and the mutual covenants
contained herein, Fitgo and Recipient hereby agree as follows:

1. For a period of sixty (60) months from the date hereof, Recipient shall hold in trust and
confidence, and not disclose to others or use for Recipient's own benefit or for the benefit of
another, any Proprietary Information which is disclosed to Recipient by Fitgo at any time between
the date hereof and twelve (12) months thereafter. Recipients shall disclose Proprietary
Information received under this Agreement to persons within its organization only if such persons
(i) have a need to know and (ii) are bound in writing to protect the confidentiality of such
Proprietary Information. This paragraph 1 shall survive and continue after any expiration or
termination of this Agreement and shall bind Recipient, its employees, agents, representatives,
successors, heirs and assigns.

2. The undertakings and obligations of Recipient under this Agreement shall not apply to any
Proprietary Information which: (a) is described in an issued patent anywhere in the world, is
disclosed in a printed publication available to the public, or is otherwise in the public domain
through no action or fault of Recipient; (b) is generally disclosed to third parties by Fitgo without
restriction on such third parties, or is approved for release by written authorization of Fitgo; (c) if
not designated “confidential” at the time of first disclosure hereunder, or is not later designated in
writing by Fitgo within thirty (30) days from disclosure to Recipient to be of a secret, confidential
or proprietary nature; or (d) is shown to Fitgo by Recipient, within ten (10) days from disclosure,
by underlying documentation to have been known by Recipient before receipt from Fitgo and/or
to have been developed by Recipient completely independent of any disclosure by Fitgo.

3. Title to all property received by Recipient from Fitgo, including all Proprietary Information,
shall remain at all times the sole property of Fitgo, and this Agreement shall not be construed to
grant to Recipient any patents, licenses or similar rights to such property and Proprietary
Information disclosed to Recipient hereunder.

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4. Recipients shall, upon request of Fitgo, return to Fitgo all documents, drawings and other
tangible materials, including all Proprietary Information and all manifestation thereof, delivered
to Recipient, and all copies and reproductions thereof.

5. The parties further agree to the following terms and conditions:

i. Any breach by Recipient of any of Recipient's obligations under this Agreement will result in
irreparable inquiry to Fitgo for which damages and other legal remedies will be inadequate. In
seeking enforcement of any of these obligations, Fitgo will be entitled (in addition to other
remedies) to preliminary and permanent injunctive and other equitable relief to prevent,
discontinue and/or restrain the breach of this Agreement.

ii. If any provision of this Agreement is invalid or unenforceable, then such provision shall be
construed and limited to the extent necessary, or severed if necessary, in order to eliminate such
invalidity or unenforceability, and the other provisions of this Agreement shall not be affected
thereby.

iii. In any dispute over whether information or matter is Proprietary Information hereunder, it shall
be the burden of Recipient to show both that such contested information or matter is not Proprietary
Information within the meaning of this Agreement, and that it does not constitute a trade secret
under the Uniform Trade Secrets Act or successor or similar law in effect in the State of (your
state).

iv. No delay or omission by either party in exercising any rights under this Agreement will operate
as a waiver of that or any other right. A waiver or consent given by either party on any one occasion
is effective only in that instance and will not be construed as a bar to or waiver of any right on any
other occasion.

v. This Agreement shall be binding upon and will insure to the benefit of the parties hereto and
their respective successors and assigns.

vi. This Agreement is governed by and will be construed in accordance with the laws of the State
of (your state), and the courts of (your state) shall be the exclusive forum.

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vii. This Agreement is in addition to any prior written agreement between Fitgo and Recipient
relating to the subject matter of this agreement; in the event of any disparity or conflict between
the provision of such agreements, the provision which is more protective of Proprietary
Information shall control. This Agreement may not be modified, in whole or in part, except by an
agreement in writing signed by Fitgo and Recipient.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

Fitgo

By: CEO

Signature

Printed Name

Mahaj Ahmed Chowdhury

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2.0 Business Model

2.1 Business Model CANVAS

Key Key Activities Value Customer Customer
Partners Propositions Relationships Segments
Launching and selling smart and -24/7
Bangladeshi shoe, fitness oriented footwear in Featured customer Locations – Urban
micro chips and Bangladesh. Attributes: support Areas: Dhaka,
smart sensor -Support
• Health Chittagong, Sylhet
manufacturers - fitness
Tracker etc
related
● Orion
• Unique activities and
Design events
Footwear Demographics:
-help
Limited • Durabili -Age between 18-65
customers
● Walton ty
with valid -For Male & Female
Micro- • Innovati information
Tech -For Middle Income
ve
Corporatio Individuals
Product
n
• Fitness -For fitness
Distributors: Key Resources Elevator
enthusiasts of
● Islam Physical resources: Functional
Transportation, Factory, Benefits: Channels Bangladesh.
Enterprise
(Transport
Machineries, Storage facility, • Helps Physical Retail
Raw materials to keep Stores
ation)
Human resources: Labors, Online Stores
track of
Staffs, Engineers
Dealerships: your
Intellectual resources:
● Gadget & Partnership, Customer health
Gear database • Automat
● Evaly Patent, Logo ed
Financial resources: Cash, shoelace
Credits (Long term & Short
lightene
Term)
r
• Comes
with a
smart
mobile
app to
show

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 progres
s.

Cost Structure Revenue Streams

Assembling Cost, Office Expenses, Retail Store Expense, -Sales Revenue by selling the smart shoes
Warehouse expenses- rent, electricity, Machineries, Staff -Dealership Commissions
Salary, Transporting costs
Marketing costs –websites, phone, advertisements.

2.2 Pricing Model

The pricing strategy for our product is one of the key factors for succeeding in the industry.
Since the products are new in the market, we had to carefully analyse and come up with the perfect
pricing strategy.
We have selected cost plus markup pricing strategy, we are producing a limited number of
products to maintain exclusivity as such costs are being spread over fewer units and charging a
higher markup is necessary to maintain a certain profit margin. Furthermore, we will be producing
high quality shoes with advanced features. As such our target audience is socio economic class
AB.
Therefore, we have decided to put a markup of 20% and price per product at Tk.5000,
Tk.6000, and Tk.8000 per unit for Fitgo Walker, Runner and Lifter variants respectively. We
believe our product is priced fairly at an average.
Our prime competitor will be Bata, Apex who sells running shoes starting from Tk.1500
to Tk.5000. Since our products include many technical features, we are expecting that our target
segment would see the products as a luxury rather than a necessity. We decided to set a price point
higher than our competitors because we offer more features than others and we believe that our
customers will value our product more because of the augmented features that they will receive.

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So, this in turn will give us an edge over competitors and appeal to a broader segment of the market
in the future. The cost and pricing breakdowns are provided below:

Description Fitgo Walkers Fitgo Runners Fitgo Lifters

Subcontracted Cost:

Orion Footwear 1260 1560 1560

Walton 1000 1200 1850

Assembling Cost 800 900 2000

Operational Cost 1000 1000 1000

Miscellaneous Cost 100 340 308

TOTAL COST 4160 5000 6718

Add: 20% Markup 20% 20% 20%

Total Price 5000 6000 8000

2.3 Social Goal

Through our product lineups, we want to create more awareness on the importance of fitness and
leading a fit and healthy lifestyle amongst the people especially the younger generation. According
to an article, the physical inactivity was prevailing among 25.1% of the population of Bangladesh
in 2016 (Salahuddin, 2018). Thorough obesity and physical inactivity, countless non
communicable diseases occur.
We want to contribute to change that. We want more and more people to be physically
active and at least try to perform outdoor exercises thrice a week. In order to achieve these goals,
we would create awareness through our promotional campaigns and events. As Joseph Pilates once
said: “Physical fitness is the first requisite of happiness.” Therefore, in order to lead a happy life,
fitness is crucial.

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2.4 Sustainability

Financial Sustainability: Fitgo will have enough adequate liquidity in the business to function its
operations. The five proprietors alongside the bank loan will make the business run its activity
easily. In addition, we assumed to have a great high profitability stage in the start of the third year
of the business. We have anticipated our business to have 15-20% expansion in sales each year.
Sustainability is a business way to deal with making long haul an incentive, by thinking about how
a business works in the natural, social and financial climate. Sustainability is based on the
presumption; that helps to grow such methodologies to encourage organization’s life span.
Organizations are considering sustainability to be a region of upper hand. Our company Fit Go,
attempts to make our management to ensure that the system of our organization and the
manageability endeavors are adjusted. To make our brand long-lasting among our target
customers, we will be going for various sustainability methodologies as it will have the option to
make an enduring and positive picture in our consumers' perspectives about our image. The name
of our brand is "Fitgo". The character is the same tone as our logo which is neon green and will be
a perpetual piece of our logo. We have utilized neon green as our essential image tone. The shading
green depicts wellbeing and development alongside sure energy, flourishing and balance
throughout everyday life. We have attempted to associate our image components which will depict
a sound and dynamic way of life for a superior and prosperous life. Alongside that, our
administration keeps up proper maintenance of the nature of the work environment. We ensure
that our laborers get no wounds by any means. Regardless of whether they get into any unplanned
wounds, we give them leave as indicated by their need, without cutting any compensation. We
attempt to give all that which will be valuable to our workers wellbeing and security. Moreover,
Fitgo will also be ISO 14001 certified, which means they can provide confirmation to the
organization that includes the executives and the delegates, even all the external partners, that the
environmental effect is being measured and improved continuously.

2.5 Eco Friendly Activities

Our product and financial stability revolve around building the best product, causing no
unnecessary harm, and using business to inspire and implement solutions to the environmental

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crisis. It is very eco-friendly to the environment as we will not use any harmful chemicals for
running our business. Thus, we will not have the necessity to start with such big steps but in future
we will forward to adopt a few strategies, such as:

Renewable Energy: There is always a way of using energy sources which is sustainable, such as
solar energy. It gives a tax advantage over the businesses that don’t. Fitgo can save you a
considerable amount of money by supporting clean energy. The government offers rebates and
another facility for businesses that shift into eco-friendly sources to show support for renewable
energy initiatives.

Other Eco-Friendly Behaviors: We will be more careful about the production processes that can
help us to reduce wasted materials. Also, being more conscious about our energy usage can reduce
our business’s heating, electricity, and water costs as well. We will teach the toddlers and
preschoolers how to recycle things so that they don’t waste things and try to reduce the wastage as
much as possible. A very small effort to better the environment can also benefit our society and
company.

2.6 Ethical Activities

Fitgo code of ethics is mandatory and will be followed by all the team members of Fitgo whether
they are the Sales Agents, Consultants, Representatives, independent Contractors, or even external
temporary workers. We will maintain our ethical behavior as follows:

· We believe in trust, teamwork, honesty, mutual respect and integrity

· We respect every human right including customers, employees and markers.

· Forced labor is absolutely prohibited at any form of production.

· Safety and a healthy work environment will be ensured.

· We celebrate diversity and will not try to change people.

· We compete fairly and respect the work of our competitors

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3.0 Business Environment Analysis

3.1 Porter's Five Forces

Porter’s five forces are a very important tool as it helps us to understand where the power lies in a
business environment. It tells us what our current position is and the position we will try to move
into the future.

Threat of Entry: The possibility of new threat in the market is quite possible, yes, it is true that
smart shoes are difficult to make however locally there are a lot of shoes company in Bangladesh
who might be intrigued to enter the market if the potential growth interest them plus add to the fact
that bigger shoes company can offer better deal to Walton to inquire the microchip unless we are
able to pattern it we are always at a risk from local market. There are also threats of global
competitors such as Nike and Underarmour to start importing their smart shoes into the Bangladesh
market but by that time we are more likely to have a grip of the market. Plus, the government
policy is supportive for local companies so it works in our favor.

Buyer’s power: When it comes to buyer’s power, we believe we have the advantage over the
buyer since switching cost is high as there is no direct competition of the product. But there are
substitute products available in the market such as smart watches which are similar products. It is
important for the buyers to have access to information, since smart shoes do not exist in the current
market in Bangladesh the buyers can only get information from the internet thus, they might feel
a little bit insecure so it upto us to provide that information to our customer.

Supplier’s power: The suppliers of our product have more bargaining power over us especially
Walton because when it comes to providing shoes there are other substitutes partner for Orion such
as Bay but for Walton there are a very few substitutes for us and thus the switching cost of supplier
is very high. We have to create a very good relationship with our supplier because without them
we don’t have a business thus it is important to have regular contact with them.

Substitute’s product: Similar price alternatives are available in the market, so consumers might
switch to those alternatives. So the threats of substitutes can be effective to our business. These

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are the brands that serve the same purpose as the offered value to the consumers by Fitgo.
Following

· Apple watch series

· Garmin Forerunner 935

· Belkin Fitness Armband

· Suunto Smart Sensor /

· Wahoo Tickr Heart Rate Monitor

Competitive rivalry: When it comes to smart shoes, there are few very good smart shoes brands
but from our research we have found 8 different brands globally that offer similar features and
benefits at similar price, by similar products to similar customers.

1. Nike Hyper Adapt

2. Under Armour Smart shoe

3. Xiaomi Mijia Smart Shoes

4. E-vone shoes

5. Digitsole smart shoes

6. RunScribe Smart shoes

7. Boltt Smart shoes

8. IOFIT Smart Shoes

There is also some product that can rival us based on the same class of product but not exactly the
same product. These are the brands that offer products of the same class, but with different features.
There are 3 such prominent and considerable brands of this category worldwide.

1. Feetme (Insole and healthcare service by smart medical wearables)

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2. Footsloggers (Insole)

3. DigitSole (Insole)

Even though our product matches all these products above, our benefit is that none of these
products is actually available in the local market meaning these shoes are not in Bangladesh as of
right now. However, it’s still possible to get them online but there is just too much hassle. Thus
we can have the advantage of first movers in the market.

3.2 PESTEL Analysis

•Government is giving loans for entreprenuers

•Labor laws are well defined and mandatory to follow

Political •Political condition stable

•Environment laws are well eshtabhlished
•No such barriers to foreign trades
•Tax policies are matter of concern

•Economic growth rate in 2019 was 8.15% and in 2020 it was 3.8%.
•Tax rate is high and it may increase

Economic •Inflation rate is 5.88%

•Disposable income rate in 2019 was 65339.96 %
•The tax law imposes income tax at 25 % on the lisyted entities and 32.5% for
non-listed entities.

•People are more concenred about health.

Social
•Most people are career oriented and tend to live smart life.
•Culture is enriched because of variety of people.
•Demographical differences are noticable.
•Customers are more likely to purchase trendy products.

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 •Latest mechineries are are used.
•Distribution and transportation is easy.

Technology •Return on investment is high in market.

•Target market communication has various ways.
•training scope are more available than previous decades
•Technology industry has a sustainable growth.

•Climate and weather is suitable

•Positive business ethics is appritiated

Environment
•Environmental legislation is well established
•Geographical location and accessibility is advantage.
•Environment is sustainable for raw metarials

•Consumer rights and laws are well established.

•Patent and Design rule of 1911 and copyu right act 2000

Legal
•Trademark Act of 1940.
•Labor law is a amtter ofconcern.
•Market has potential opportunities for everyone.
•Product safety testing is standard practice .

3.3 SWOT Analysis

Strength

· Latest technological support

· Strong brand leverage

· First mover advantages

· Clear unique selling proposition

· Strong distribution channel

Analysis

Mentioned points are strong zones for Fitgo. Fitgo shoes come with the latest technological support
which allows it to perform more accurately and efficiently. Associate other brands Orion and

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Walton can apply strong brand leverage. Because of the first mover many advantages can leave a
strong and positive impact on the market. Benefits, augmented benefits and values are clearly
mentioned. Multiple distributions channel in physical and online stages.

Weakness

· Need to educate customers about the product.

· Resources are limited in Bangladesh.

· Too much dependency on suppliers

· The diversification of products is less

· Limited flexibility in pricing

Analysis

These above-mentioned points are considered as primary weaknesses for Fitgo. As this type of
product is new so Fitgo has demonstrated each and every possible way how to use it and make
sure customers are well learned about the product. Resources such as chips, machineries etc are
limited in BD. Dependency on suppliers is really high. Diversification method of this category
product is less than other products. Pricing is a bit complicated because less room for flexibility is
available.

Opportunity

· Multiple segments of markets.

· Less barriers for technological business plans.

· Government is offering loans for entrepreneurs.

· A large segment of people is interested in a smart lifestyle.

· Suitable for product developments

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Analysis

Many segments of customers can be targeted for profitable business. Currently no

competitors are active directly in this market so there are less barriers in technological investment
and business. Currently the government is also offering multiple loan plan for funding of
technological investment for local entrepreneurs. Day by day people are becoming more health
conscious and they love to use smart gadgets to live smart and healthy lifestyles. The market is
perfect and has the potential to run product development strategies.

Threats

· Global brands may enter the market.

· Local competitors may also enter the market.

· Substitute products may create threat in near features.

· Multiple established local competitors such as Bata, Apex.

· Government may increase tax on technological gadgets.

Analysis

Global brands such Nike, Adidas etc. might enter the market in future. Local competitors
may also come up with smart gadgets in this market. Other smart gadgets may cause threat in order
to allow substitute options. Already established local footwear brands may become a threat in
future. As the government is increasing tax on mobile and other electronic gadgets so increasing
tax rate might become a threat for Fitgo gadgets also.

3.4 Stakeholder’s Analysis

Customers: The most important stakeholder for a business is its customers. Keeping them happy
is our first and foremost duty. To keep them happy, Fitgo will be focusing on the positive attitude
of its target market. Our customers might seek comfort, a fitness friendly tracker, a fashion friendly
wear and high-end quality shoes from our branded products with a convenient and transferrable

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packaging. Moreover, Fitgo is looking forward to working with customers who belong to a
diversified lifestyle and cultural background but is a fitness fanatic or opts for living a healthy
lifestyle. In addition, our customers’ personality traits should be Athletic, Exercise enthusiastic,
Health conscious and Active. Fitgo products are sorted for any age group beginning from 18 to 65
years old. It has been designed for all the genders. We have focused on each one who is athletes,
fitness trainers, fitness enthusiasts, and active people as our potential customers.

Suppliers: We will choose two suppliers for our product. They will be Orion and Walton; both
are key partners for our business. We need to keep a good relationship with them as they will be
the ones supplying our products. We will need to develop some sustainable Supply Chain Reward
system for the supplier so that they supply our products easily to our assembling factory.

Labor: Initially we will start the business with around 30 labor, these laborers will be working in
our assembling factory. They will be working in assembling the product and packaging it. It is
important to select labor wisely and with better judgment as we are dealing with a technological
product never before built in Bangladesh.

Employees: We will have around 30 employees, this office and store combined. The direct would
be the 10 employees who will be working with us in the office. The other indirect 20 employees
who are distributed equally will be the store employees. They need to be properly compensated
with a decent salary and trained properly as it is important for them to understand and use the
product properly so they can explain it to the customer.

Competitors: As we know it is always important to identify our competitor and with the help
porter’s five forces we were able to identify who our closest competitors are and what are their
strengths and weaknesses. Strategically, we have found the competitive frame of references (4
forms of competition) and compared our new brand with 3 competition brands, most related brands
rationally considering the factors of target market, purchasing power, compatibility, and demand.

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Distributor: For every good business it is important to have good distributor as well and we have
found one in Islam Enterprise (Transportation) who help to deliver our product to our customers
on time always.

4.0 Description of the Venture

The mission for Fitgo is that we want to be there by customer feet as they work their way
to achieve a healthier lifestyle. We want to give their customers a feeling of excitement and fun
by energizing them to go out and perform with an upbeat attitude but also provide security to
customers with safety and comfort. We also want our customers to proudly wear our product
outdoors since Fitgo is the first smart shoe in Bangladesh. So, we want our customers to feel a
kind of achievement that a company in their country is creating this innovative shoe which is still
at a growth stage all around the world.

The tagline for Fitgo is “Grow with Fitgo”. With this tagline we will be encouraging our
customers to grow as an individual by having a healthier lifestyle and achieving greater fitness
goals.

Ever since Marty McFly wore those Nike Mags in “Back to the Future” movie, people have
always been fascinated with smart shoes. Therefore, we are seeing more and more smart shoes
being made in the global market. However, there is no smart shoe in Bangladesh but the people in
Bangladesh are growing into fanatics of technology. They are consuming more technological
products than ever before. This gives our product the opportunity to enter the market. But that is
not all, the people in Bangladesh are becoming more health concerns and Fitgo is the perfect
product to ensure that the user stays healthy. This is why we feel our product belongs in this market.

Our product will be successful as we have analysed and found out the opportunity in the
market as stated before, adding to the fact that we will be the first mover in the market which will
also us to take advantage of the market and create a competitive advantage of our product.

Smart shoes have been in the industry for some good years but it is not in the current market
in Bangladesh. There are few smart shoes that are already existing that come close to our product

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such as Nike Adapt and Under Armour Smart shoe. So the development of product has been pretty
successful but we still have to develop the product in Bangladesh which can be difficult.

4.1 Product

As the number of chronic diseases like diabetes, cancer and heart diseases in the country
are on the rise, people are more health conscious Fitgo’s main product portfolio includes smart
shoes for the fitness conscious people of Bangladesh. We are initially offering three variants of
smart shoes: Fitgo Walkers, Fitgo Runners and Fitgo Lifters. All the variants are being offered for
both male and female at different size, unique designs and a wide variety of colours. All the
categories of product come with advanced GPS tracking technology which helps to accurately
measure step counts, distance etc. Besides, users can easily keep track of their fitness progresses
through the Fitgo App where all the data are shown in real time. Each variant have some unique
features which are carefully included while keeping the ultimate intent of the product usage in
mind.

Fitgo Walkers: This variant of Fitgo has been introduced for those who regularly go to the park
for a walk, for those who are 40 and above. With extra soft and comfortable shoe sole, it is the
perfect shoe to take out for an hour long walk. No matter how roughly one uses it, its durability is
unmatched with any other products in the market. The Walker variant comes with GPS, heart rate
sensors, wireless charging technology and self-tightening technology which would help to mitigate
the frequency of adjusting the laces that is common issue while usage.

Fitgo Runners: This variant is specially made for those who love jogging/running. It comes with
a specially made soft and lightweight shoe that helps the user to run longer without having foot or
joint pains. . It comes with all the sensors similar to the Walker variant. The Runner variant comes
in a special shoe carrier bag which is easy and very convenient to carry anywhere and everywhere.

Fitgo Lifters: As the name suggests, this variant is particularly made for the weight lifters and
body builders. Our shoe soles are specially made with super absorbent technology which would
ease the heavy workout sessions or fitness routines. Moreover, this variant comes with an extra
layer of anti-slip sole which would drastically reduce the chances of tripping while heavy lifting.

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On the technical side, this variant includes a smart band which gives additional important data
about the user’s workout sessions.

4.2 Office Equipment and Personnel

The business location will be in Gazipur which is a major industrial city 25km north of the
capital city of Dhaka.

The single storied factory will be constructed in compliance with the local authority’s
building rules and regulations with proper fire safety and adequate greenery.

As a part of long-term investment and vision, the building is owned by the Fitgo owners.

The building and location is right for the business because it gives the business safety and
easy access advantage. Gazipur is the city of industry and raw materials. Firstly, the raw material
suppliers of our business are very near to the location. Secondly, easy and skilled laborers are
mostly from the area Gazipur which helps them to live easily and transport in a short time.

The office will be beside the factory and will require both office equipment and office
furniture. Office equipment consists of computers, software, printers, fax machines, network
equipment and so on. Good furniture is also at the top prior list. The office layout will be the
modern Cubicle Layout. This style of workspace is space and cost efficient compared to built-in
traditional offices. A nice-looking office furniture always provides a good impression to visitors,
which helps to improve the image of the office and it will make the company look more
professional and reliable.

5.0 Production Plan

5.1 Subcontractors

For all the three product variants of Fitgo (Walkers, Runners and Lifters) we would
outsource the shoe body, the shoe sole and the chip and sensors from subcontractors. After doing
thorough market research, we have selected Orion Footwear LTD for our shoe distributor and
Walton Micro-Tech Corporations for our microchips and sensor distributors.

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Orion Footwear LTD: Since our product portfolio is for the fitness enthusiasts, our main focus
was durability, soft sole, lightweight and cushioned shoes. Orion Footwear is well known for its
sports category of shoes for men and women. It has a stylish look, light weight and long lasting-
all the features we were looking for. Moreover, the costing per pair was quite competitive amongst
the competitors while taking the quality into account.

Walton Micro-tech Corporations: For the microchips and sensors, we were initially interested
to import from China. However, we realised it was a very complex process and it would take
months for the shipment to arrive. Therefore, we went for Walton as their recent expansion plans
of producing computer RAM chips and other components was impressive and reliable. Besides,
we were looking forward to making the whole components of the product (shoe, sensors, chips
etc.) from scratch to finish in Bangladesh.

Costing

The cost for the footwear portion of the product, which would be distributed by Orion
Footwear, is estimated to be Tk.1260 for Fitgo Walkers and Tk.1660 for Fitgo Runners and Lifters.
Further breakdown of the cost is given in the table:

Cost Breakdown for Fitgo Walkers Fitgo Runners Fitgo Lifters

footwear

Shoe Body Tk.800 Tk.800 Tk.800

Shoe Sole Tk.400 Tk.700 Tk.500

Anti-Slip Sole Tk.200

Additional Shoe Lace Tk.60 Tk.60 Tk.60

Total Tk.1260 Tk.1560 Tk.1560

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For the Technological part which is to be provided by Walton, the estimated cost around Tk.2000.
Further breakdown of the cost is provided below.

Cost Breakdown for tech Fitgo Walkers Fitgo Runners Fitgo Lifters

Insole Chip Material 200 200 200

Performance Monitors 300 500 800

Sensors 200 200 200

GPS 150 150 150

Wireless Charging 150 150 150

Smart Band 350

Total 1000 1200 1850

It is to be noted that the estimated costs given are just for the subcontracted portion. We will incur
additional assembling and operational costs that are not included in the table.

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 5.2 Assembling Plant

Layout

Warehouse 1 Assembly 1

Assembly 2

Repairs & Maintenance

Warehouse 2 Packaging Quality Check

Assembling Steps:
Firstly, the outsourced products- the shoe body, shoe sole, microchips and sensors are
brought from the subcontractors and kept and stored into the warehouse for further requisition.
Upon request, the required number of products are sent to the Assembly line 1.

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 In the first part of the assembling section, the sensors, chips and wireless charging
technology are embedded into the shoe sole and the self-tightening technology is placed into the
shoe body. For the three variants of Fitgo, separate assembly lines are maintained since each
variant has unique features and requires a separate assembling system. After inserting, it is moved
to the second part of the assembling stage.

In the second part of the assembling section, the shoe sole and the shoe body are carefully
joined by state of the art machineries by applying special adhesive. It is further hand stitched to
truly cement the two parts together. After that, laces and other amenities of the shoe are added. At
this stage, the product is fully functional and is sent for quality checks.

In this part, each and every shoe is thoroughly checked from the leather quality to the chip
placements and the technical parts. Fitgo’s each and every product line goes through a series of
durability and technical tests where the functionality of the shoe is verified and all the
technological features are repeatedly tested for any kind of defects or bugs. Once cleared by the
quality check teams, the pair moves down the line for packaging.

In this section, some high end line ups are packed with special shoe carrier bags which are
very easy and convenient to carry around. Other shoes are carefully packed in a shoe box and sent
to the warehouse for storage.

The finished Fitgo shoes are stored in warehouse 2 where the products are dispatched upon
request by the physical and online stores.

The repairs and maintenance section works independently of the assembly line. This wing
of the factory deals with the shoes that have been sent back due to different issues by the customers.
The factory repairs and fixes the issues and sends it back to customers.

5.3 Machinery and Equipment

When the shoe raw material comes in from Orion it is in two parts, the shoe body and shoe sole of
shoe.

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 1. Shoe logo welding machine and Embroidery machine: These machines are used for
stitching in the Fitgo logo onto the shoe body.

2. Strong force gluing machine: With help of this machine we are able to attach the
microchip which we receive from Walton into the shoe sole.

3. Hydraulic shoe sole press machine: This machine is used to attach the shoe body with
shoe sole.

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 4. Double head cover type sole pressing machine: This machine is used for a high degree
of function, it is used for adjusting shoes mode of operation in order to meet safety
standards, to avoid accidents.

For Packaging

1. Fully Automatic Strapping Machine

2. Cartons taper random top bottom driven: Automatic carton taping machine used to
taping boxes fast.

3. Label Applicator: This machine is a labelling head which puts Fitgo logo onto the boxes.

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For Warehouse:

1. Pallet Jack

2. Ride-on Stacker with Reach and Tilt

6.0 Operational Plan

6.1 Description of company operation

Fitgo is a company which solely focuses on technological support for betterment of light
style and a health concerned mindset. Fitgo collects its raw materials from different sources which
makes its supply chain much more standard. The shoes are collected from Orion Footwear which

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is well known in the industry. The whole operation process is linked with each other. First the raw
materials are stored in Warehouse 1. Raw materials include shoes parts, chips, fabric etc. This is
the first stage of the operation process. All sorts of raw materials are stored there primarily. Then
all the required raw materials are sent to assembly room 1. Here all the mandatory shoe parts were
settled together. Then the shoe moves to assembly room 2. In this room required chips and sensors
are attached to shoes and completes the manufacturing process. After completing the
manufacturing process then the product moves to the next terminal which is quality check. Quality
check is essential for every manufacturing process. All the units of products go through the quality
checking process. After that the product goes to packaging which makes sure that the product is
safe from external damage occurrence. The last step of this operation is moving the products to
warehouse no 2 from where it will be distributed to the outlets, and retailers. Inside this operation
there is another step which is repair and maintenance. After this the operation plan concludes here.

6.2 Flow of orders for goods and/or services:

Essentially when we get orders from our clients, we send the order information to our
warehouse located at the factory, where we produce our smart shoes, through real-time
communication. Hence, when our warehouse receives the data about the orders being requested,
they then dispatch the desired number of units to the r physical stores which are close to our clients
reach.

Furthermore, our clients can order through three different ways:

Firstly through our physical stores of Fitgo, which are situated at Dhaka, Chittagong, and
Sylhet. We have opened our sources in three outlets in the urban areas of Bangladesh, so that we
can serve our clients in the quickest manner conceivable. It will likewise diminish the issue of
delaying the conveyance service.

Secondly, from our official mobile phone app Fitgo. We will have our official site which
will go about as our online shop. This is a demo plan for our site. This is the greeting page and this
will permit individuals to search for items from various categories we offer. They can likewise
peruse on shoes relying upon their gender and they can likewise look for a particular model. The
correct portion of the site will show a slide show of our various models.

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 Thirdly, through our dealerships: Gadget and Gear and Evaly. We will do a member
showcasing with one of the biggest on the web shop of our nation Evaly.com. They will elevate
our items to advance themselves and their crusades.

Additionally, anyone who has purchased from us, our shoe box will contain a QR code
through which our clients will have the option to download our official App. Other than there will
be a snap code to acquire the client's commitment. On the off chance that an individual sweeps the
code it will take them to Snapchat and a virtual AR sticker will appear on the specific shoe they
purchased. They will have the option to video that or snap that AR stickers and offer them on the
web. This will likewise assist us with acquiring WOM.

Requisition Dealerships Order

Physical Retail
Factory Warehouse
Store

Website

Delivery

Receiving the product

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6.3 Technology Utilization
Operation process requires a variety of technology to execute its work and define a good
result. The technology which will be used in manufacturing Fitgo shoes is high tech and it allows
less bottleneck compared to other technologies. With state of the art conveyor belt, continuous
operation of the factory is ensured. Moreover, since the production process is capital intensive,
there are less chances of interruption which makes the full process smooth and hassle free.

Similarly, advanced Enterprise Resource Planning (ERP) software will be used in order to
eliminate any chances of miscommunication between the stakeholders and hence allow the
business operation to flow smoothly. Moreover, the use of internet and websites will automatically
allow us to receive orders directly from customers without the need of any middlemen.

Additionally, database software will allow us to keep track of older data which would be
very beneficial for us to perform various market research and analysis.

7.0 Market Plan

7.1 Product
Our product is new in the Bangladeshi market. In order to describe our product properly we have
used the product levels which identify how the product is benefitting our customers at each level

Core benefits: The fundamental needs of the customer are shoes for walking or running
comfortably. All our 3 product categories are made to meet the very basic need of customers who
prefer walking or running.

Generic product: The functions that our product will provide are different for each of the
categories but all the categories have step counter, GPS, weight counter and lastly the shoelace
lightener. This helps the customer to take their fitness routine to a whole different level. The step
counter will be adding precision to the user’s fitness routine keeping track of steps on top of that
weight counter also add a very quick follow up for the user. The GPS system will be integrated
with any other device that knows the exact routes the user has taken. We will be providing a

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comfortable sole with super absorbent technology that would ease their heavy workout or fitness
routine. The toe box will be made with materials that would ease the air flow and minimize the
perspiration. The heel tab would be made of low friction material so that the ankle is not easily
swelled due to the longer duration of wearing it without socks. The lace tightener would help to
mitigate the frequency of adjusting the laces that is a common issue while usage. Threading of the
outsole would make sure that even on the slippery floor there is a correct grip of the user.

Expected product level: The expectation of the consumer is to be more accurate while evaluating
their fitness. Smart shoes have innovative and technical advanced features which attracts and
motivates consumers to adapt more fitness sessions activities which allows them to evaluate their
present fitness condition more correctly. The expectation of monitoring daily workout is also
fulfilled by various features.

Augmented product level: In this level we’re providing official fit shoe carriers for smart runners
and smart lifters. Gps location tracking synchronized with Google maps is for the type shoes. Smart
watches are offered to smart lifters to be more accurate and responsive during fitness sessions.
Lastly vibrant color shoes laces are offered to Fitgo Walker.

Potential product level: In this level we’ve decided to undergo these following tasks which are
briefly mentioned in separated parts.

Plan 1: In the long run we planned to add new features to our smart shoes at potential level. Just
like any other smart device our smartphones will get sync with google android. A new
customization system through the app will be possible to meet the accuracy of our valued customer.

Plan 2: We've decided to come with another product line named “Smart kiddo” for the security of
school going kids and to monitor their current condition at school.

Plan 3: Smart Shoes will be able to have storage slots, where they can store data in micro sd cards.
This micro sd card will contain the data of the user so that in every timeframe the user can evaluate
their efficiency by comparing with previous data. The smart shoes can also transfer this data by
sending it to the drive (cloud storage) and can also send this data to other devices such s PC, laptop
or any other smart device via Bluetooth 2.0.

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Plan 4 : “Fitgo twitch” this will be a tracking device, which will allow the users to track their daily
life fitness routine in formal shoes or other footwear. This device will be in a form of chipset which
can be adjusted with any footwear because it will be added in the adjustable sole. This sole design
in such way that it can fit into any type of footwear. This chipset will record the data while users
are wearing formal shoes, casual sandals etc. to utilize the data users have insert the chipset in the
Fitgo smart shoe and then the data will be automatically update in the drive and show accurate
data in app.

7.2 Pricing

Pricing, the only marketing P that will add monetary value to the brand is its “Price”.
Therefore, it is of utmost concern to set the price very strategically. However, while pricing Fitgo
products it will go for cost plus pricing for all the variants (Fitgo Walker, Runner and Lifter)

Pricing of the products:

According to cost plus pricing strategy, first each and every cost segment was detected and counted
accordingly. The costing categories are as follows-

Raw Materials

Shoe body: This is the costing for overall shoe body

Shoe sole: Different costing for shoe sole at different variants

Anti-slip sole: The only cost associated with the “Lifter” variant.

Strong Cushion Technology: Very soft and comfortable interior protected by strong outer web net
technology. This feature will be only added to “Smart Lifter”.

Tightening Technology: Compared to Nike auto lacing this feature will be added to all the variants
where it will provide convenience by auto tightening fit to feet technology.

Production Cost: Production costs include the expenses associated with producing the final/end
product.

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Operating Cost: Operating costs include all the costs required to run the business smoothly.

Fitgo Technology

Insole & chip material: The metal and other required materials to make the Fitgo tech chip.

Application, Website, Maintenance, Software: Estimated costing for developing and

maintaining software, application and website for next three years is shown in the price quotation
voucher. Since Fitgo has 3 POS all over Bangladesh, it is estimated that there will be a total of
3000 pairs of shoe sales per month. Total costs for this segment is divided by the total number of
shoes sold that will give the unit cost for per pair of shoes (BDT. 417)

Sensors: Costs for all types of required sensors in the shoe.

GPS: For proper tracking GPS system will be added in miniature version to help proper workout.

Wireless Charging: The cost for adding the feature of charging the shoe without a wired charger.

Augmented benefits:

Extra shoe lace: For all three variants.

Shoe carrier: For Smart Runner and Lifter

Stylish Smart Band: Only for Smart lifter (for better measurement and monitoring performance)

Miscellaneous cost: These are the costs for unexpected issues/ different campaigns etc.

Profit Policy (Cost plus and Value Based):

Smart Walker: 20% (Cost Plus)

Smart Runner: 20% (Cost Plus)

Smart Lifter: 20% - (Cost Plus)

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7.3 Promotions

In order to promote Fitgo we are going to take various steps to ensure we are able to promote
the product the right way and capture our targeted segment. These steps are:

(a) Screen pop advertisement on television:

We will broadcast popup advertisements on television during sports occasions or popular shows
related to our target audience.

(b) Interactive Print AD for Newspaper and Magazine:

Usage Situation: This interactive print ad will help the target consumers to relate with situations
to use our products and we have made it interactive with a QR code and by giving a discount on
online purchase.

(c) Interactive print brochure for lifestyle magazines-

This brochure will be attached inside different lifestyle magazines like- Ice Today, Canvas, Mirror,
and so on as an interactive print ad where the different pages will describe different Functional
Benefits and designs of our product.

Outdoor Furniture (Ramna Park Benches, Shopping Mall Kiosks)- We will advertise on outdoor
furniture like park benches in Ramna Park as we will be exposed to a large number of our target
customers as they go for a walk or a jog over there. We will also have kiosks in different shopping
malls especially, as we will not be able to have multiple showrooms in many shopping malls
initially.

Alternate Advertising (Movie theatre, Balloon AD in shopping malls) – We will have different
alternate advertisements. For example – sticker footprints ads directing to our store in a shopping
mall, sticker ads on elevator doors and balloon ads near escalators in different shopping malls and
corporate b We are going to have “The Flash Challenge” for this. People who will buy our shoes
can take a picture with The Flash pose which is similar to our Brand Character as well and post it
on their profile mentioning our Facebook page and Instagram profile in the caption using hashtags
like #Fitgo #Smartwalkers/ #Fitgo #Smartunners / #Fitgo #Smartlifters

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#TheFlashChallenge. The best 6 photos out of hundreds will get a lunch date with our Brand
endorsers Arefin Shuvo and Bidya Sinha Mim

We plan to use it for “viral marketing” as well. The influencers will also post their pictures
on their Facebook and Instagram profiles buildings, advertising in movie theatres at the starting,
interval and ending of a movie.

(D) Price offs- We will have different types of price offs on different special occasions under the
Sales Promotion campaign throughout the year. For example, we will have a price discount of 25%
to celebrate “World Fitness Day” on all products from 15th to 30th July.

(E) Event sponsorship- We will be sponsoring different events throughout the year. For example-
Fitgo presents Dhaka Half marathon, Fitgo presents Ad Maker Bangladesh (university level
marketing competition). We will have our booths in these events and showcase our products and
will use booths as points of purchase which give a boost to our sales as we will be providing special
offers as well.

(F) Display Advertising - Banner Ads

We will post pop up advertisement banners on websites related to fitness and gym. As our product
is targeted towards fitness enthusiast people, these are the websites from where we can grab their
attention. SEO

We will be using the popular keywords related to fitness, sports and shoes on our website. This
will help us to increase the organic traffic to our website. Besides, we will post blogs related to
fitness tips, fitness hacks, importance of a healthy life or Importance of tracking health conditions,
because of these articles, we will be having a greater number of keywords in our website which
will eventually lead organic traffic to our website.

(G) SEM or PPC

We will use Search Engine Marketing or Pay per click marketing to make sure whenever people
search for shoes, fitness related things on the internet our website comes at the first position of the
results page.

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(H) Here are how the way we are going to use our social media platform for promotion

❏ FACEBOOK PAGE

Loop Video: We will post loop videos on Facebook showing our product features and functional
breakdowns of our shoes

POV Time-lapse/Hyper lapse: We will create a point of view hyper lapse video of our shoe. The
video will portray a person visiting various places and occasions wearing our Smart walker, then
returning home at evening, changing to smart lifters and going to the gym. Whole video will be
within 20 seconds.

360 Degree Photo and Video: We will post 360 degree photos and videos of our outlets

❏ Instagram:

Uploading pictures using 3x3 grid: We will be uploading interesting contents on our Instagram
account using different techniques to make the account look more interactive and lively. For
example- we will be using tools like nine grids to have a poster like a big picture of the contents.

Uploading Interactive Stories: We will be uploading interactive and fun stories to engage the
customers more with our brand goes to the gym. Whole video will be within 20 seconds.

❏ Snapchat:

Snap code and contest: We will have our own Snapchat account. We will be sharing our Snapcode
in different contents. We will be uploading fun and interactive stories on our Snapchat and also
will be arranging different contests over there.

❏ YouTube :

We will have our own YouTube channel. We will post testimonial videos of our users. Besides
this we will create short videos about our features and benefits. Along with these, we will hire
celebrities to unbox our shoes and make unboxing videos.

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(I) Affiliate Marketing with Evaly : We will do affiliate marketing with one of the largest online
shops of our country Evaly.com. They will promote our products to promote themselves and their
campaigns. For example, they have campaigns like cyclone where they offer a good amount of
discounts on all the products from their store. They will use our product as a promotional tool for
their cyclone campaign.

7.4 Place

Fitgo is planning to launch their smart shoes using a direct channel structure along with this Fitgo’s
strategy is going to be the selective distribution strategy.

Fitgo smart shoes require a high level of customization and also quality assurance is high which is
why Fitgo is using a direct channel structure to insure these two things. Also, since it’s the first
Bangladeshi smart shoe being sold the customers will require information for which the sales
workers need to be trained. As a result, a direct channel structure is required.

Company owned store: Fitgo will have its own outlets located at Dhaka, Sylhet and Chittagong.
All these outlets are located in the hotspots of Bangladesh so Fitgo will be able to capture their
targeted customer.

M- Commerce: Fitgo smart shoe will have their own app to connect the shoe with the user’s phone,
there will be a different section names shop Fitgo in our official app from where people will be
able to purchase shoes as well

E-Commerce: Customers can also buy Fitgo smart shoes using our very own website built with
every single information on our shoes and everything about use plus events that are going to take
place.

7.5 Packaging

As a shoe brand, packaging is very important for us to give the premium feel to our products. For
Packaging. We have two different designs of boxes as we have different categories of product. We
will give similar packaging for Fitgo Runner and Fitgo Walker and for Fitgo Lifter we are planning

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to give a different box to give extra value to the product. However, our shopping bag will be the
same for all the products.

Our boxes will contain a QR code through which our users will be able to download our
official App. Besides there will be a snap code to gain customer’s engagement. If a person scans
the code, it will take them to Snapchat and a virtual AR sticker will be shown of the exact shoe
they bought. They will be able to video that or snap those AR stickers and share them online. This
will also help us to gain WOM

With our SMARTRUNNER and SMARTLIFTER, we will provide them a shoe carrier
which will help them to carry their shoes to a gym or anywhere they prefer.

7.6 Positioning

Till now there is not any local smart shoe brand in the existing market of Bangladesh, therefore,
with a view to effective straddle positioning, we have run a global competitive analysis while doing
the market research as the consumers are more likely to purchase global brand product via online
or different other distribution platforms. Strategically, we have found the competitive frame of
references (4 forms of competition) and compared our new brand with 3 competition brands, most
related brands rationally considering the factors of target market, purchasing power, compatibility,
and demand.

7.7 People

People on both sides of the business make sure that the business is running. For the customer side,
we will need to provide them the highest quality product. Besides, undertaking various
promotional activities keep the customers engaged with the brand. For the business side, we will
need to maintain efficiency and morale. Keeping the employees satisfied is one of them. Besides,
maintaining a good relationship with the suppliers and vendors helps the business run smoothly.

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8.0 Organizational Plan
8.1 Form of Ownership
This business will be run by 5 partners. The partners will invest in this business and become the
major shareholders. However, if a company wants to expand business more in future than new
investors are always welcome. As of current state, all the partners will bear limited liability and
the share of profit will be according to the percentage of money invested in the company.

8.2 Identification of Partners

Primarily, 5 partners will invest in the company “Fitgo”. The names and addresses of each partners
are given below:

Name Address

Farhin Ali Shegun Bagicha, Dhaka

Asif Bin Zahir Shantinagar, Dhaka

Ishtiaque Chowdhury Khilgaon, Dhaka

Mahaj Ahmed Chowdhury Bashundhara R/A,Dhaka

Mohammad Rahmat Ullah Khilgaon, Dhaka

8.2 Terms of Agreement

1. The Business is to be formed as a Partnership business as per the rules and guidelines of
the Partnership Act 1932.
2. Every partner has to contribute accordingly to the percentage at investing.

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 3. Partners have to bear & share the profit & losses accordingly to the amount invested.
4. Profit cannot be withdrawn by any partner for the first 1 year.
5. While taking any major decisions for the company, or solving conflicts, every partner has
to be present and convey their opinion about it.
6. Inclusion of new partners for business expansion can take place and the share of profit &
loss is to be decided by the existing partners as per Term-4 of this agreement.
7. Any kind of death and withdrawal partnership will follow the Partnership Act-1932.

8.3 Authority of Principals

Each partner has different authority over the business. For any type of financial decisions
or financial planning, the CEO and the CFO has the utmost power to decide or even overturn a
decision. The Check Signing Authority Procedure outlines “dollar limits” and check signing
authority processes to maintain the company’s maximum check safety. The Check Signing
Authority Procedure applies to the CEO and CFO of the company. The CEO is responsible for
adding and removing check signing authority. The CFO is responsible for managing the check
signing authority process and alerting all individuals and banks of any changes to authority. In this
case, the CEO is Mahaj Ahmed Chowdhury and CFO is Farhin Ali.

Similarly, the COO is fully responsible and holds the right to change any necessary layouts
or edit any changes in the factory itself. The COO must consult with the CEO before executing
any plans in the factory that they feel will benefit the company.

The head of marketing holds the full responsibility of the marketing contents, events and
campaigns and is responsible for engaging with the customers in a way that he feels is the best.

8.4 Management-team ackground

Names Position in Management Background

team

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 Mahaj Ahmed Chowdhury BBA student (major in
Chief Executive Officer Marketing)

(CEO)

Ishtiaque Chowdhury BBA student (major in

Chief Operating Officer Accounting and Finance)

(COO)

Farhin Ali BBA student ( major in

Chief Financial Officer Accounting)
(CFO)

Asif Bin Zahir BBA student ( major in

Head of Marketing Marketing)

Mohammad Rahmat Ullah BBA student (major in

Head of Customer service Finance)

8.5. Roles and Responsibilities of members organization

Chief Executive Officer (CEO): The CEO will be the driving force behind the company; he is
responsible for the whole operation of the business, he will put together the resources to support
the company and take the product to the marketplace. The roles and responsibilities of a CEO vary
from one company to another, often depending on the organizational structure and/or size of the
company. In smaller companies, the CEO takes on a more “hands-on role”, such as making lower-
level business decisions (e.g., hiring of staff). Other tasks are delegated to managers or
departments.

● Communicating, on behalf of the company, with major Stakeholders, government entities,

and the public
● Leading the development of the company’s short- and long-term strategy
● Creating and implementing the company or organization’s vision and mission

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 ● Evaluating the work of other executive leaders within the company, including CFO, COO,
Head of Marketing, and Head of Customer Service etc.
● Maintaining awareness of the competitive market landscape, expansion opportunities,
industry developments, etc.
● Ensuring that the company maintains high social responsibility wherever it operates
● Assessing risks to the company and ensuring they are monitored and minimized
● Setting strategic goals and making sure they are measurable and describable

Chief Operating Officer (COO) - The COO is ultimately responsible for the businesses’ core
operation i.e. making sure that the company’s operational activities flow smoothly and
economically. He is responsible for making certain that necessary work is done properly and on
time. Additional responsibilities of COO include:

● Responsible for the operation of the whole factory

● Responsible for looking after the human resources of the company
● Set comprehensive goals for performance and growth
● Establish policies that promote company culture and vision
● Oversee daily production of the company.
● Lead employees to encourage maximum performance and dedication
● Evaluate performance by analyzing and interpreting data and metrics
● Write and submit reports to the CEO in all matters of importance
● Assist CEO in fundraising ventures
● Manage relationships with partners/vendors

Chief Financial Officer (CFO) --The responsibility of CFO is to seek money; that is, to look for
investors and deal with banks, lenders, etc. This function also could be assigned to another team
member, such as the CEO or the General Manager. The responsibility in the Controller role is to
manage money and watch over the assets of the company. It is not uncommon to have the same
individual seek money and manage money. Some responsibilities of a CFO are- Providing
leadership, direction and management of the finance and accounting team

● Providing strategic recommendations to the CEO/president and members of the executive

management team

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 ● Managing the processes for financial forecasting and budgets, and overseeing the
preparation of all financial reporting
● Advising on long-term business and financial planning
● Establishing and developing relations with senior management and external partners and
stakeholders
● Participate in expansion activities (investments, acquisitions, corporate alliances etc.)
● Reviewing all formal finance, HR and IT related procedures

Head of Marketing -- Few businesses can be successful without properly marketing their products
to the customer. The individual in this slot must have both marketing and industry experience.
Some responsibilities include:

● Managing all the marketing contents for the company and activities within the marketing
department.
● Developing the marketing strategy for the company in line with company objectives.
● Coordinating marketing campaigns with sales activities.
● Working with the Finance department and overseeing the company’s marketing budget.
● Creation and publication of all marketing material in line with marketing plans.
● Planning and implementing promotional campaigns.
● Manage and improve lead generation campaigns, measuring results.
● Overall responsibility for brand management and corporate identity
● Preparing online and print marketing campaigns.
● Monitor and report on effectiveness of marketing communications.
● Creating a wide range of different marketing materials.
● Working closely with design agencies and assisting with new product launches.
● Maintain effective internal communications to ensure that all relevant company functions
are kept informed of marketing objectives.
● Analyzing potential strategic partner relationships for company marketing

Head of Customer Service: The head of customer service is responsible for upholding the
company’s brand image by ensuring the highest customer satisfaction and managing and training
all the sales staffs of the company. Additional responsibilities include:

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 1. Managing and continually improving the Customer Service experience for Fitgo customers
to ensure Fitgo remains a premium brand for customers and a leader in Customer Service
in the industry.
2. Leading the Customer Services team within the division and continually improving the
customer service experience in the division.
3. Responsible for Customer Services Managers, Customer Service Technicians, Staff,
Customer Service Coordinators, and Customer Services apprentices (if applicable).
4. Taking ownership of customers issues and following problems through to resolution
5. Setting a clear mission and deploying strategies focused towards that mission
6. Develop service procedures, policies and standards
7. Keep accurate records and document customer service actions and discussions
8. Analyse statistics and compile accurate reports
9. Recruit, mentor and develop customer service agents and nurture an environment where
they can excel through encouragement and empowerment.

9.0 Assessment of Risk

9.1 Evaluation of Weaknesses
Fitgo is based on customer drive choices. New trends change the overall design in footwear
industries. As our business is coming up with the idea of being trendy and having smart gadgets
(footwear) for maintaining daily lifestyles. Firstly, most of the customers are not well
acknowledged about the smart shoe. So, it is a major weakness for the business and big-time
challenge to faceoff. Spreading the knowledge and usage of smart shoes throughout the customer
will be a huge task to complete. If It’s done properly, businesses might face huge losses. Another
weakness of this business is managing resources. Resources as in machineries, cause most of the
assembling machineries are imported from china. So, if anything goes wrong or if any unwanted
accident occurs the whole production might stop until the problem is fixed. Dependency on
suppliers was always an issue for business. Two main components of the product are collected
from the suppliers so it has risk too. Diversification is important in all businesses, though ours has
primarily less variants for the customer. Only three customer segments are targeted for business.
This can be counted as weakness for business and for its growth. Flexible pricing is an important

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part of business but as we are depending a lot on the suppliers and the final product multiple raw
materials from the suppliers so its hard for us to keep the pricing flexible. These weaknesses are
major issues which need to be recovered as early as possible in order to make the business
sustainable.

9.2 New Technologies

This era is based on high tech machineries, in order to keep the business running to
technologies must be used. We have decided to use two new technologies which are totally new
to the footwear industry and change the whole trend of business ideas. First technology is 3D
printing, which is becoming more useful in order to increase efficiency and costs of production.
3D painting allows the younger generation to design and produce their own shoes just the way
they want. Many footwear giant companies are using 6this latest technology such as Nike, adidas.
For mass production technology is appropriate and effective.

Second technology is augmented and virtual reality. Utilizing a VR head protector or

enlarged innovation are extraordinary approaches to include buyers in various and inundate
encounters. It very well may be utilized to advance our image occasions. Then again, VR and AR
can help footwear shopping experience for buyers, as they will see, attempt, feel items in a very
satisfying and submerge way we won't need to expand the store size for this

9.3 Contingency Plans

For the contingency plan we have planned two more product lines. First one smart kiddo
and second one smart hiker. If any of our primary product lines fails to recover it and handle it
flexibly the situation, we will launch these two product lines which target the different two
segments to customers.

The first one will be a new product line named “Smart kiddo” which is for the school going
kids age group (7- 15). The main motive of this product is to ensure the security of school going
kids and giving them the experience of using smart gears. We have noticed that a large number of
parents are worried about their children while they are in school or coaching centres. Not every
parent can afford to give them a personal car or other this to keep them secure. This “smart kiddo”

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is designed as very unique so that children don’t feel that they are being spied on by their parents.
Some unique feature and functional benefits will add to our product.

Second product line will be a new product line named “Smart Hike” which is for travellers and
mountain climbers age group (20- 50). The main motive of this product is to ensure the security of men
and women who are travelling to these dangerous locations and giving them the experience of using smart
gears. Some unique feature and functional benefits will add to our product. These will help the travellers
to achieve great highs of the world at the best level of comfort and security, making tracking and
mountaineering more enjoyable.

10.0 Financial Plan

10.1 Assumptions
In order to forecast the sales for the next three to five years, we need to consider a number
of factors. Since our product is directly related to outdoor and physical activity, we firstly looked
at the availability of parks and gyms all over Dhaka city. Since the people between the age group
of 40 to 60 in this country primarily like to jog or walk in a natural environment for e.g. parks, and
the younger generation likes to work in gyms, we looked into both categories. Our secondary
research revealed some key insights.
Firstly, according to a survey done by WBB Trust, 35% of park users said that they
primarily use parks for walking and 12.2% of the people use it for physical exercise. The survey
was done across 12 different parks of Dhaka. This provides a rough idea about the number of
people that regularly go out for a walk who could be our potential customers in the future.
Secondly, the number of gyms in Dhaka city has increased 25 to more than 300 in just eight
years (Islam, 2019). This shows a positive trend in the increase in health awareness of people.
Thirdly, as mentioned in the promotional strategy, promotional activities like sponsorships
and organizing events would likely boost the sales in certain months. Additionally, certain spikes
or declines in sales are also anticipated. For e.g. during rainy seasons, many cannot go outside due
to the weather conditions.

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 Therefore, after conducting a thorough secondary research we are including the following
assumptions for the sales forecast for the upcoming three years:
1. Cost of Goods Sold to be increased by 5% per year
2. Sales will increase by 10% per year
3. Depreciation to be calculated using straight line method
4. Operational Expense to be increased by 15% per year for the first 2 years and by
10% from the third year.

10.1 Pro Forma Income Statement

Monthly Pro Forma Income Statement for the year ended 2021, 2022, 2023

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 Pro Forma Income Statement for the year ended 2022

Sales 45,612,600
(-)COGS (36,329,775)
Gross Profit 9,282,825
(-) Operating Expenses
Salaries & Wages 2,640,000
Showroom Rents 1,584,000
Utilities 2,385,900
Advertising 902,000
Transportation Expenses 132,000
Insurance 726,000
Depreciation 660,000
Office Expenses 264,000

Total Expenses 9,293,900

Net Profit (11,075)

Pro Forma Income Statement for the year ended 2023

Sales 50,173,860
(-)COGS (38,146,264)
Gross Profit 12,027,596
(-) Operating Expenses
Salaries & Wages 2,904,000
Showroom Rents 1,742,400
Utilities 2,624,490
Advertising 992,200
Transportation Expenses 145,200
Insurance 798,600
Depreciation 726,000
Office Expenses 290,400
Total Expenses 10,223,290
Net Profit 1,804,306

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10.3 Cash Flow Projections

Estimated Cash flow for 2021, 2022, 2023

Cash Flow for the year of 2022:

Receipts:
Sales 45612600
(-) Disbursements:
Salaries & Wages 2640000
Showroom Rents 1584000
Utilities 2385900
Advertising 902000
Transportation Expenses 132000
Insurance 726000
Depriciation 660000
Office Expenses 264000
Costs of goods sold 36,329,775
Total Disbursements: 45623675.3
Cash Flow: (11075.30)
Beginning Balance 1,817,214
Ending Balance 1,806,139

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 Cash Flow for the year of 2023:
Receipts:
Sales 50173860
(-) Disbursements:
Salaries & Wages 2,904,000
Showroom Rents 1,742,400
Utilities 2,624,490
Advertising 992,200
Transportation Expenses 145,200
Insurance 798,600
Depriciation 726,000
Office Expenses 290,400
Costs of goods sold 38146264.1
Total Disbursements: (48,369,554)
Cash Flow: 1,804,306
Beginning Balance 1,806,139
Ending Balance 3,610,445

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10.4 Balance Sheet

Statement of Financial Position for the year ended 2021

Assets
Fixed Assets
Building 8,200,000
Equipment 8,000,000
(Less): Depreciation (600,000) 7,400,000
Total Fixed Asset 15,600,000
Current Asset
Cash 1,817,214
Accounts Receivable 500,000
Inventory 1,000,000 3,317,214
Total Current Asset
Total Assets 18,917,214
Liabilities & Owner's Equity
Long term Liabilities
Bank Loan 8,000,000
Current Liabilities
Interest Payable 800,000
Accounts Payable 200,000
Total Liability 1,000,000
Owner's Equity
M.A.Chowdhury 2,500,000
I. Chowdhury 3,500,000
F.Ali 2,500,000
A.B.Zahir 1,500,000
M.R.Ullah 1,500,000
Retained Earnings (1,582,786)
Total Owner's Equity 9,917,214
Total Liabilities & Owner's Equity 18,917,214

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 Statement of Financial Position for the year ended 2022

Assets
Fixed Assets
Building 8,200,000
Equipment 7,400,000
(Less): Depreciation (600,000) 6,800,000
Total Fixed Asset 15,000,000
Current Asset
Cash 800,000
Accounts Receivable 1,420,000
Inventory 2,500,000
Total Current Asset 4,720,000
Total Assets 19,720,000
Liabilities & Owner's Equity
Long term Liabilities
Bank Loan 7,200,000
Current Liabilities
Interest Payable 720,000
Accounts Payable 1,311,075
Total Liability 2,031,075
Owner's Equity
M.A.Chowdhury 2,500,000
I. Chowdhury 3,000,000
F.Ali 2,000,000
A.B.Zahir 1,500,000
M.R.Ullah - 1,500,000
Retained Earnings (11,075)
Total Owner's Equity 10,488,925
Total Liabilities & Owner's Equity 19,720,000

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 Statement of Financial Position for the year ended 2023
Assets
Fixed Assets
Building 8,200,000
Equipment 6,800,000
(Less): Depreciation (600,000) 6,200,000 14,400,000
Total Fixed Asset
Current Asset
Cash 1,000,000
Accounts Receivable 700,000
Inventory 4,232,306
Total Current Asset 5,932,306
Total Assets 20,332,306
Liabilities & Owner's Equity
Long term Liabilities
Bank Loan 6,480,000
Current Liabilities
Interest Payable 648,000
Accounts Payable 900,000
Total Liability 1,548,000
Owner's Equity
M.A. Chowdhury 2,500,000
I. Chowdhury 3,000,000
F. Ali 2,000,000
A.B. Zahir 1,500,000
M.R. Ullah 1,500,000
Retained Earnings 1,804,306
Total Owner's Equity 12,304,306
Total Liabilities & Owner's Equity 20,332,306

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10.5 Break Even Analysis

Variable Cost 4,050 5,000 6,980

Price 5,000 6,000 8,000

BEP (units) 533.68 390.00 302.94

BEP/year 6,404.21 4,680.00 3,635.29

After calculation, we found out the Fixed and Variable Costs for all the three variants and used it
to calculate the Break even.
It is found that in order to break even, Fitgo needs to sell at least 534 units of Walker, 390
units of Runner and 303 units of Lifter per month. According to our projections and forecasts, we
would be able to achieve this breakeven by November 2021.

10.6 Sources & Application of Funds

Initially, Fitgo will raise capital through the funding of its founding five Partners. The
partners will invest a different amount of capital which accumulates to around Tk.1, 15, 00,000.
Majority of this capital will go towards building a single storied assembling factory for the
producing Fitgo shoes at Gazipur. The estimated cost of building the factory is Tk.82, 00,000. The
rest of the money will be used for opening retail stores at three locations and covering day to day
transactions of the business.
Fitgo will require additional funds for purchasing the machineries and equipment. In order
to obtain those funds, the management team has decided to go for debt financing. It is estimated
that Fitgo will require an additional amount of Tk.80, 00,000 as a long term loan from the bank in
order to purchase all the necessary equipment to produce and deliver the shoes. The long term loan
would be repaid on a monthly installment with interest.

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11.0 Bibliography

Salahuddin, D. (2018). Obesity is increasing among the younger generation in Bangladesh.

Retrieved 12 January 2021, from

https://www.thedailystar.net/health/obesity-increasing-in-bangladesh-younger-
generation-1637107

Bata (2021) Sports. Retrieved from https://www.batabd.com/collections/sports

Apex (2021) Apex footwear- Apex footwear- Quality Men Sneakers and Sports shoes online.

Retrieved from https://www.apex4u.com/men-sneakers-sports-shoes

Maruf Rahman, Ziaur Rahman, Kabir, and Debra Efroymson. (2015). Parks and playgrounds in

Dhaka: taking stock and moving forward (p. 26). Dhaka: WBB Trust.

Islam, A. (2021). Growing a healthy habit. Retrieved 12 January 2021, from

https://tbsnews.net/feature/growing-healthy-habit

UA HOVR. (2021). Retrieved 13 January 2021, from

https://www.underarmour.com/en-us/c/technology/hovr/

XIAOMI (2021) Xiaomi Mi Shoes: full specifications, reviews, photo, Retrieved from

https://xiaomi-mi.com/shoes/

E-Vone: smart shoes for elderly people — Silver Economy. Retrieved 13 January 2021, from

http://www.silvereco.org/en/e-vone-a-smart-shoe-that-loves-independent-seniors/

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Digitsole (2021) Digitsole® World leader in connected insoles and footwear. Retrieved from

https://digitsole.com/

FeetMe. Retrieved 13 January 2021, from https://feetme.fr/en

FOOTLOGGER (2021) FootLogger. Retrieved from

http://footlogger.com/hp_new/?page_id=11

Apple (2021) Buy Apple Watch Series 6. Retrieved from https://www.apple.com/shop/buy-

watch/apple-watch

Nike (2021) Nike Adapt Retrieved from https://www.nike.com/adapt

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12.0 Appendix

Fitgo Shoes:

Packaging:

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Promotional Activities

Screen Pop Ups on Television

Event sponsorships

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Marketing with Evaly

Promotion on Social Media Platform

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