International University of Business

Agriculture and Technology

Online food business in Pollibiddut and polashbari

Prepared for
Zahir Rayhan Salim
Assistant Professor
College of Business Administration (CBA)

Prepared by
Md.Radanul Islam 18102042
Tariqul Islam 18102043
Ariful Islam 18102118

Course name: Entrepreneurship

Course code: MGT-401
Section: B
 Contents
Executive Summary 3
Introduction 4
Business Opportunities 4
Proposed product/service idea 6
Feasibility Analysis: 7
Product/Service Feasibility 7
Financial Projections 8
Technical Aspects 8
Management 11
Assessing the business plan on social impact. 12
Vision, mission, objectives for the business 13
Business location and ownership 13
Business competitors 13
Marketing strategy 14
Exit strategy 17
References 18

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Executive summary
It was 2013, when country’s 1st online food service started. Since then, this sector is one of the
emerging sectors in Bangladesh. As a growing sector, we decided that we will start our online
business in Pollibuddut and Polashbari. There are two places polli food village and Idgah Math
which are famous for local food. Every day they sell their own cooking food to hundreds of
customers. You will see that they make their own handmade pizza, burger, coffee, fuchka,
shingara and many more. you will surprise to see that people coming from different areas to taste
these local foods. There are at least 40 stalls who are ready to fulfill your empty stomach. Once
you see these you will definitely going to taste them. One of the most important things is that
you will get at reasonable price and about quality once you eat those you will know better. That’s
why we want to start online food business to sell these local foods. Initially, we will cover
Pollibiddut and Polashbari where we will create a website, buy domain and host. We will deliver
their order quite cheaper price than those big online food companies. We will make sure that
consumers are happy of our food and services. Further this report, you will see in details how we
will start our business, industry analysis, competitors our operations, marketing plan and so on.

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1. Introduction
Today we are lucky to be living in an era when anything can be delivered at your doorsteps
without going out to buy it. Food is no exception. Talking about food, it isn’t about pizza
anymore. The internet has made massive progress to facilitate cool new things. Now with a few
clicks, you can get whatever your hungry tummy is craving. So, if you are at your home or office
or wherever you are, and feeling hungry as well as lazy to get out to get a couple of bites, you
can order food online via different online food ordering services. We are now a few clicks away
to get home delivery of readymade food at ease. In our country, this business is growing rapidly
in recent times, and it’s promising (About the Editorial Staff, 2020). Here, we have come up with
the idea to do online food business in pollibiddut and polashbari where we will sell different
local food items like fuchka, jhal muri, local ice cream, chotpoti etc. These foods are very special
and well known in that area and people coming from different place to taste these delicious
foods. People usually like to come here every day to taste but they face traffic jam or
transportation problem or it is far from someone’s place. So, here we will give them services
where they can order any kind of items through website at same cost without going there. They
will receive their orders within couple of hours. To do this business, we will convince the local
vendors and different stall owners to start the journey with us. We will hire two delivery man at
the beginning to deliver the food smoothly. Our main focus will be satisfying our customer
through our food and delivery. Many people say local handmade foods are not good as they
considered are unhygienic but we will break this belief by maintain good quality and taste. We
will ensure that our food items are fresh and hygienic.

2. Business Opportunity
The online food business is going skyrocket. If you are like me, you have probably ordered
online food couple of times within this month already. Whatever food we want, whichever
restaurant is preferable to us, we can have all these foods and guess what, we don’t need to go
there physically. Because, every single restaurant has the online delivery system available now-
a-days. Surprisingly, research says that online food business is going to worth 5 billion dollar by
2025 (Meteoric Rise of Online Food Business, 2019). There are companies who are dominating
in this sector. They are the giants (UberEats, FoodPanda, Domino’s pizza etc). Now, the main
concern on this fact is, there is newbie, fresh startup is keep coming. It’s great but unfortunately

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these new companies can’t go head to head with these market leaders. That’s why we focused on
niche market, specific area that wasn’t covered yet. The area we are targeting, is called
“pollibiddut food village & Idgha maath”.

Industry Analysis
Here, we will give the brief description of industry analysis for our business. As a startup
company it is very important to understand the market and industry properly. We will analyze
the market through porter’s five forces model. The Five Forces primary purpose is to determine
the attractiveness of an industry. However, the analysis also provides a starting point for
formulating strategy and understanding the competitive landscape in which a company operates
(Mars Discovery District, 2020).
 Barriers to entry (Low pressure)
It is easy to entry e-commerce in Bangladesh as we don’t need large amount of money. Let’s say
50k to 100k will be good in initial stage. We don’t need to worry about space or vendors to
continue our business. We will create website, make marketing plan and attract the customers.
Another important thing, to operate the business we need license. Now-a-days, it is easy to get
trade license for any business. It was complex at a time before but now we can get it through
smooth process. We just need to collect the form of trade license for that we need to go to
pourashava office or chairman’s office to collect the application for trade license. In other words,
we need to contact with local authority (Azam, 2019).
 Threat of substitutes (Low pressure)
When it comes about substitutes, this sector has low pressure. Like people usually don’t make
fuchka, shingara, biryani, jhal muri in their home and people also get everything in website
where they can buy anything whatever they like. So, about product substitutes it is low. Now if
we look at the service, we will deliver the products where it is not possible for everyone to visit
the places moreover people can enjoy the food in home or offices without going anywhere.
That’s the reason online food business is growing day by day. So, it can be said there are no
alternatives of this service.
 Rivalry among existing firm (Medium pressure)
There are some giants company who are craving 90 percent of total online food business. Among
them food panda, HungryNaki, pathao food and sohoj food are well known. Pathao food holds

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42% market shares in terms of orders it receives every day, while foodpanda holds 32%,
HungryNaki 8%, Shohoz Foods 8% and several other start-ups hold the rest 10% of the total
share (Meteoric Rise of Online Food Business, 2019 ). As we are targeting specific market it
won’t create any hassle for us. We will also give much lower price without decreasing the
quality than these giants company.

Market shares
Pathao food Hungry Naki Food panda Sohoz food other start-ups

10%

8%

42%

32%

8%

 Bargaining power of suppliers (Low pressure)

Usually our suppliers will be local hotels, restaurants, stalls. They can demand proper amount of
their products but if they want some unusual price for making extra profit at that time, we can
switch from one stall to another. Another thing if they reduce the quality of the products in
anyhow, we will have better option as our switching cost will not increase.
 Bargaining power of Buyers (Medium pressure)
As there are lot of competitors in online food industry so buyers will have better option. Because
they will switch from one to another if they think the product qualities are not good and services
are bad or price is high. So, as we are new, we have to maintain the quality and service to keep
and retain new customers.

3. Proposed product and service idea

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Food village will provide different varieties of food in pollibiddut and polashbari area people.
People can choose any food through website where they will get these products at a cheaper
price and good quality. People can enjoy their food without going anywhere as we will deliver
the food through our delivery people within shortest period of time. The following is the
anticipated products prices

 Shinghara -(5 pieces)- 50

 Shamucha -(5 pieces)- 50
 Fuchka-50
 Biryani-120
 Local burger-80 etc.

Why online food delivery service

Online food service continues to grow. Here, we are targeting niche market to do business. We
will get introduce them our local food which is very popular among pollibiddut and poalshbari.
We will decrease the problematic situation of customers and give the lower price with same
quality than our rivals.

Future products and services

We have plan to expand our business into different areas. If we get success in polashbari and
Pollibiddut, we will cover Savar then other cities. As per customer demand we will include
different items in our business.

4. Feasibility analysis

In this part we will describe different parts of feasibility analysis where we will show why our
proposed business is viable. Types of feasibility analysis

1. Product/ Service feasibility

2. Technical aspects
3. Financial projections
4. Management

Product and service feasibility

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 Product and service desirability

People in Savar area usually go to polli food village and Idgah Math to enjoy those delicious
food. This place is very popular among the locals. But it is sometimes hassle for them as they
have to wait for long time or they need to stay in the queue and taking about traffic it is always
headache for everyone. So, here we will give online food and delivery service where customers
will get their food at doorsteps.

 Product and service demand

About product and service demand we have collected information from online and different
online news, where we have got that the demand of online food service is high. The reason is that
it saves time, the amount is same and people can focus on their works without thinking of
cooking.

Ordering food online is very nice experience for me,” says Mashruka Mahjabin Sujana, a private
university student, adding that she often orders different types of food from her favourite
restaurants through apps. It takes 20 minutes to one hour to get the food, she says, adding the
costs of food are the same, but in some cases, she needs to pay the delivery charge as an extra
payment.
“I can save my valuable time avoiding food making for the guests at home or can treat them
easily with favorite items through the service,” Sujana mentions, adding that through the service
she gets the opportunity to compare foods of different restaurants.
Expressing satisfaction, Nabban Tahsin Haque, a private service holder, says ordering food
online is a convenience.
“I need not go to restaurants, but get favorite foods I want being at office, home or outside,
without any hassle,” he says (Meteoric Rise of Online Food Business, 2019).

Technical aspects
In technical part we will show you how our business will be operated. First of all, customer will
go through our website. They will select the food items. After selection they can pay money via
online or if they want, they can pay it on cash delivery. After receiving an order, we will send to
the local prospective hotels, restaurants or small food shop. Next, delivery staff will deliver the

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food to the customer. We will check everything whether customers are getting their delivery or
not and if they face any problems.

customer
in food hotels/res delivery
village taurants service
website

received
searching cash on
by
the food delivery
customer

select E- review by
the food payment customer

Financial projections

Here are our financial projections. We have estimated our total cost to start the business and
predicted 1st six months revenue and breakeven point.

Financial expenses
TK
website making cost 10000
Domain and hosting cost (Yearly) 2000
Maintaining cost (Yearly) 5000
App cost (App store fee) 3000
App making cost 5000
Total cost 25000

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 Marketing Cost
Tk
Leaflets (250* 2taka pieces) 2 times 1000
Banner cost (12 months) 12000
Total cost 13000
Total Fixed cost 38000

Revenue
1st month TK
Delivery 30
25 stalls (25 delivery per day) 25
per day revenue 750
Delivery remuneration (15*25) 375
Monthly remuneration (375*30) 11250
Sales 22500
Profit 11250

2nd month TK
Delivery 30
25 stalls (35 delivery per day) 35
per day revenue 1050
Delivery remuneration (15*25) 525
Monthly remuneration (375*30) 15750
Sales 31500
Profit 15750

3rd month TK
Delivery 30
25 stalls (45 delivery per day) 45
per day revenue 1350
Delivery remuneration (15*25) 675
Monthly remuneration (375*30) 20250
Sales 40500
Profit 20250

4th month TK
Delivery 30

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25 stalls (50 delivery per day) 50
per day revenue 1500
Delivery remuneration (15*25) 750
Monthly remuneration (375*30) 22500
Sales 45000
Profit 22500

5th month TK
Delivery 30
25 stalls (60 delivery per day) 60
per day revenue 1800
Delivery remuneration (15*25) 900
Monthly remuneration (375*30) 27000
sales 54000
Profit 27000

6th month TK
Delivery 30
25 stalls (70 delivery per day) 70
per day revenue 2100
Delivery remuneration (15*25) 1050
Monthly remuneration (375*30) 31500
sales 63000
Profit 31500

Break Even point

Tk
Total Fixed cost 38000
Sales per unit 30
variable cost per unit 15
Contribution Margin per unit 15
Break Even point sales unit 2533.333333 unit
Break Even point sales 750000

Management

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Food village will be led by the founder Md. Radanul Islam who has passion this online business
since his varsity life. He has skills in marketing area and also good ability to convince people.
Other two members, Tariqul Islam will take care the financial section and Ariful Islam will
handle the human resource management and the operating system of the business.

Food village
Md. Radanul Islam Founder, Marketing section.
Tariqul Islam Financial section
Ariful Islam Human resource management, operating system
Headquarter Polashbari
Availability Polashbari, pollibiddut
Affiliations 25 stalls (initially)
Delivery staffs 2 (initially)
Payment system Bkash, Nagod, Cash on delivery

5. Social Impact
Only earning profit isn’t our main priority. Along with the journey, we want have our business
socially impactful. Since, we are in the crisis of Covid-19 which has negative impact on
everything and changing the good situation to make it bad. That’s why considering the
customer’s health issue is one of our main priorities. Because, no one should go outside right at
this moment. If it’s a crowded area, then it’s way riskier to go outside. Having said that the
places we are targeting has always been crowded. It’s so risky because there are so many people
who go there without even wearing masks. So, that’s where our business is going to play an
important role. Our business will help everyone to be safe and place the order by staying at their
house and enjoy their food at home. They won’t have to go outside for foods. Not only this, we
are giving the chance to the unemployed people to work with us. As you may already know, we
have the services available. There we need human who will be paid and will be distributed other
facilities as well. Now-a-days people are in rush, they don’t even have time to waste it anyway.
That’s where our business is going to have a massive impact. By ordering food through our
websites people will be able to save their time. They don’t need to go there physical and make a
wait for a while to get the food. That’s how we are saving people’s valuable time too.

6. Mission

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Online food business in pollibidut and polashbari. Make the online business in such a way where
people will get the best food within reasonable price. There will have different fast food and
local food including fuska, chotpoti, shingara etc. Everything with are available in idgah and
food village.
Vision
To become a best online food seller and expand our business all over the cities in Bangladesh
objectives
 To create a new variation for customer
 To target as many customers as possible to sell and gain profit
 To expand our online business in all of our cities in Bangladesh
 To engage with so many people
 To provide best service by maintaining proper time.

7. Business location and ownership

We will open our store in Pollibiddut. From there we will deliver food palash Bari all area, like
Batan tek, Gujartek, Dogortuli etc and pollibiddut all areas like Dendabor, Ghoraphir, old
dendabar, ankon etc.
So, the ownership of online business in pollibidut and polashbari are
1.Md. Radanul Islam Rahat
2.Ariful Islam
3.Tariqul Islam

8. Business Competitors
Any business that is existed right at this moment, Competition is something that takes over the
attention from everything. Without competitors a business can’t even called a business. So, our
business isn’t different from it. We do have the competitors such as (foodpanda, evaly,local
restaurants, pathao etc). They are the pressure creator. Because, they have been in this industry
for a long period of time. So, taking an edge from them is quite tough. But here is the deal, we
have targeted the people who only love to eat food from pollibiddut, Idgah and food village. We
don’t have anyone else rather than this specific area’s customers. That’s where we created the

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difference. Not only that, still the food can be same but no other food delivery company can
deliver the food exactly from the location we are targeting. Which means, if you order something
from these two areas no other company will be able to deliver any food from those stores. In
addition, we have faster delivery system comparing to others also the delivery fee is almost half
of all the other competitors. Considering all of these things, we can say we have an edge on our
competitors. Building great customer relationship is one of our main priorities. That’s how we
can overcome from the competitors.

9. Marketing Strategy

Staying ahead in marketing strategy is quite tough now-a-days, especially when the world is
constantly dealing with trends. To stay in the pace, it’s important for entrepreneurs to find the
best possible structure in the planning, execution, evaluation, and elaboration of their business
strategies.

We all know, an effective marketing strategy doesn’t just appear out of nowhere. It takes a lot of
organizing, strategizing and perfect timing to create such a platform that will add true value in
the business. That’s where Marketing Mix come. In marketing mix, we will look at seven
different (Ps). That will help you to understand the overall marketing strategy that we are going
to implement.

These 7ps are,

1. Product.
2. Place.
3. Price.
4. Promotion.
5. Physical.
6. People.
7. Process.

1) Product: In this section there can have two different things.

I. Product.
II. Services.

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So, our plan is to work with both of the sectors at the same time. Which means we will provide
customer the product and the service. Here, delivering product is our service and selling food
item is our product. How it’s going to work? Here is the deal, we will open up a website (sort of
ecommerce sites) where every single food item will be displayed with the name of the store.
Customers can access the websites and order through online whatever their desire food item is.
We will be delivering the food to the customer as soon as possible that’s the main focus we have.
Moreover, maintaining quality is our main priority.

2) Place: Since, we are focusing on niche market. Our targeted area is small. We are mainly
focusing on two areas,

I. Pollibiddut.
II. Polashbari.

To those who live in these areas we are focusing on those customers. That’s our initial plan. We
targeted these areas, it’s because most of the people come to the “Polli food village & Idgah
math” from there. That’s why we took the decision to start over from here.

3) Price: The price system isn’t that different. Every single food item is as same price as it’s in
the store. We are only charging a small fee to the customer for the delivery purpose. Otherwise,
there is no extra cost. So, how about the delivery charge? It’s quite simple, every single order
will be given the customer has to pay 30tk per order. That’s it. We will hand over the food to the
customers at their home within the time. Customers don’t have to go this crowded area anymore.
They can enjoy their food at home.

4) Promotion: It’s so obvious that we are not going to spend a lot of money on advertising.
Even, we don’t even have chance to do so. So, what’s our plan is to go for the best possible way
to capture more customer’s attention. Here is our plan, we will provide leaflets to all the shop
owners so that they let the customers know that our food is available online. You can order our
food from your home. You can’t believe the amount of customer order food is unbelievable.
There are so many customers and sometimes the customers have to wait for a long period of time
to get the food. It is time wasting at the same time. So, when the leaflets will be given, the
customers will be more than happy to enter in the website and place an order. We will also have
a banner right in front of the entrant gate. That will catch the attention of the customers too.

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5) Physical Evidence: Here, we get down to the importance of consumers to know that the
brand they’re purchasing from. Is our brand actual and legit? Do we have real life existence? Is
there anything hiding behind? That’s where physical evidence comes in. 

Since, we are connected with to store owners directly. So, when a customer comes to the store to
order some food, the customer has loyalty issue the owner that’s why they take food from this
specific store. This trustable issue will help us too because the store owner is suggesting us
directly and telling the customer we have online order process too.

On the other hand, there is important thing called “word of mouth”. It works when a customer
purchase something and if he finds it interesting. He/she says it to others. He/she basically gives
the overview of the service or products. That will also us along the way.

6) People: The ‘people’ element of the 7Ps involves anyone directly, or indirectly, involved in
the business. If there are no right people around us, there is no use of creating a great brand.
Because, right people can change any situation and turns into good. So, having good skillful
people around us is a blessing. Everyone has their own task to complete. It’s not something that a
business runs by only one person. It’s the combination of different sectors. Such as financial,
management, marketing, accounting and so on. These are the area should be covered perfectly
with skillful people. Without them a business can’t be successful. That’s why to have the right
person around us is quite significant. We are three persons, will be working from the front and
we are expecting many more, great and skillful person will join with us in the journey to success.

7) Process: The 7th ingredient in our marketing mix - ‘process’ describes the actions that will be
taken in delivering the product or service to the customer. Here is how a customer can order the
food. First, they have to enter into the website link and register themselves and after having an
account, they can look at all the displayed food items. Then place an order including the
quantity. Then our website will ask for the delivery address and payment system. Customers will
have two options here. Either they can do cash on delivery or they can pay through bkash,
Nagad, debit/credit card. That’s pretty much it from customer’s side. Then, our delivery man will
go to the store, pick the food and drop it to the location. That’s how the processing work.

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10. Exit Strategy
Once a business is going to start off, either it’s going to be successful or it may fail. These two
consequences can be happened. So, how we are going to deal with the success? It’s pretty
simple, we will definitely try our best to cover up even more areas such as Baipail, Nabinagar.
Besides that, we will try to make the delivery even faster. That’s the initial plan we have. Over
the time more greater decisions will be taken.
What will happen in terms of failure?
Since, our business is website based and it’s an ecommerce site. We have secondary plan to
tackle the situation. So, what we are going to do is that we will go for drop-shipping business.
It’s because in terms of failure, we won’t be able to do anything about it. The reason is, we are
doing business by targeting the niche market. Once it fails, it’s quite tough to bounce back.
That’s why we might switch our business in this way.

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 References

 About the Editorial Staff. (2020, July 11). 8 Popular Online Food Home Delivery
Services In Bangladesh. Deshiz. https://deshiz.com/online-food-delivery-bangladesh/
 Azam, S. (2019, July 30). E-Commerce Trade License in Bangladesh. Shaharia’s Blog.
https://blog.shaharia.com/e-commerce-trade-license-in-bangladesh
 Mars Discovery District. (2020, November 18). Industry Analysis | Porter’s Five Forces
| Competition. MaRS Startup Toolkit. https://learn.marsdd.com/article/industry-analysis-
and-competition-using-porters-five-forces/
 Meteoric rise of online food business. (2019, May 26). Dhaka Tribune.
https://www.dhakatribune.com/business/2019/05/26/meteoric-rise-of-online-food-
business

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