FJ’S HERBAL CARE

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“ZERO”

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 Principles of Entrepreneurship (BUS321)
Section - 3

“FJ’S HERBAL CARE”

ZERO
Submitted by

Group -A
Student ID

MD. Fahim Jamal Efaz 18204077

Pranto Barua 17204038

Zoairia Binta Monowar 18104254

Silma Subha Islam
17204021

Abdullah Shatib Fayz 17304152

Date: 18th May, 2021

Table of Contents
Execuetive Summary.................................................................................................................4
Acknowledgement.....................................................................................................................5
Section 1 (Introduction).............................................................................................................6
Organogram............................................................................................................................8
Opportunity Gap....................................................................................................................9
Prototype..............................................................................................................................10

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 Feasibility Test......................................................................................................................10
Industry Domain...................................................................................................................14
Organizational Feasibility....................................................................................................16
Section 2 (Risks & Challenges).............................................................................................20
Business Canvas Model........................................................................................................21
Promotional Activities.........................................................................................................23
Section 3 (Income Statement).................................................................................................29
Assumption Sheets...............................................................................................................30
Ratio Analysis.......................................................................................................................35
Pricing Strategy....................................................................................................................37
Detailed Funding..................................................................................................................38
Sensitivity Analysis...............................................................................................................39
Section 4 (Future Strategy)......................................................................................................43
Start up KPIs.........................................................................................................................45
Section 5 (Appendix)....................................................................................................................
Reference..................................................................................................................................

Executive Summary

FJ herbal care is a startup which started its journey with an intention to produce herbal shampoo
for all age group people. The analysis permits us to the best systems to assist our item with
being effective with the internal and external environment which we have analyzed at our best
agreement. It appears to be that adults associate well with groomed, frizz and gleaming hair with
certainty. So, adults who purchase shampoos which protect colored hair, smooth, fix and saturate

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are all the more prone to feel surer when their hair looks great. FJ Herbal care product “ZERO”
serves men, ladies, and kids since realizes the clients need and consumer loyalty. The real
product is having various adaptations that will deliver to all hair types and shadings will mirror
these forms by thinking about their sorts. As consumers age, their hair may change condition,
turning out to be dryer and coarser or better. Numerous more older purchasers feel that they are
forgotten by haircare producers, who are neglecting to address their particular needs. The
product that we create and intend to deliver is concentrated shampoo that will offer to a market
for attention, securing, use or utilization that may fulfill people's necessities and desire in terms
of hygiene and hair care issues.

Acknowledgement

At the beginning of this term paper, I want to thank Almighty Allah for making us able to do this
term paper. I want to thank my course instructor and my respected faculty, Ahmed Abir
Choudhury, Lecturer, BRAC Business School, for allowing us to work on our desired chosen

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topic. I think it would not be possible for me to complete the term paper without the guidelines
and support that I received from him. Last but not the least, a special thanks goes to our team
members who gathered all information and worked by cooperating with each other and helped to
assemble them together. Also, I would like to convey my gratitude to Allah whose invisible
guidance helped me to complete this term paper.

Section 1

Introduction:

FJ's Herbal Care is an herbal-based business that produces herbal products, with the slogan "#say
no to chemicals" as its tagline. I began my journey in January 2020 with a capital of five crores,

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and yes, establishing an industry is not an easy job. Building and making a name for oneself in
the corporate world takes a lot of time and effort. Companies do not operate in a vacuum, and
they are influenced by forces outside their control. In today's fast-paced market world, how they
react to these external forces and how quickly they respond will make the difference between
success and failure. While establishing an industry, I encountered numerous external and internal
positives as well as issues that resulted in favorable and sometimes unfavorable outcomes for my
company. The productivity of an organization is influenced by consumer and business buying
preferences. As the owner of a company, I am responsible for the employees' working
conditions. If I see a vacancy, I try to fill it with new people who have the necessary experience
and skills. When the price of ingredients rises, the purchasing power of consumers falls, making
it difficult for an industry to control its revenue flow. In that case, I try to provide more offers in
that booming situation, and customers are more willing to buy my "ZERO" shampoo. I
sometimes have to deal with bankers about interest rates. My factory is in Chittagong, and my
headquarters are in Dhanmondi 10/A. Before starting our industry, I faced numerous obstacles,
but thanks to the positive marketing of my product, our industry has gained a positive reputation.
Customers' first demand is to buy products that are less expensive and of high quality, such as
zero shampoo, which is a herbal product for which I have gained a large number of loyal
customers and a strong reputation in the business sector. If you run a business, you will face
competition. My competitors are Clear, Loreal, Panting, and Sun silk. I have strong relations
with the suppliers since they are located in different parts of Bangladesh, such as Dhaka,
Chittagong, Sylhet, Bogura, and so on.

If you create an industry, you must also prepare for the competition. I made the decision to
market my goods at a lower price than my rivals. This will assist and allow the profitable
company to achieve more revenue or higher margins than its competitors. I've also found that
other businesses are vying for the same market, and the competitive landscape is a description of
how businesses perform in a given market, including distribution networks, supplier-rival-
distributor alliances, pricing practices, and advertising levels, among other items. As a result of
my product ZERO shampoo gaining a foothold and a strong position in the industry, several
rivals are attempting to compete with us. Nevertheless, I believe that these companies will be
unable to sustain the consistency that we are working with because it is a chemical-free product.

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 Now I'd like to list the names and titles of my workers, including myself, who are involved in my
ideas as well as the business. These are the key employees of my company who help to keep the
industry moving.

MD. Fahim Zoairia Binta Pranto Barua Silma Islam Shatib Fyaz
Jamal Efaz Monowar
Owner and CEO IT manager of Marketing HR Manager Finance
of FJ'S Herbal FJ'S Herbal Care Manager Manager
Care

ORGANOGRAM
MD. FAHIM JAMAL EFAZ
OF
CEO OF FJS HERBAL CARE
FJS HERBAL CARE

PRANT BARUA
EXECUTIVE DIRECTOR
OF FJS HERBAL CARE

PRANTO ZOAIRIA SILMA SHATIB FYAZ

BARUA ISLAM FINANCE
MARKETING
BINTA
MANAGER OF
MANAGER OF IT HR
FJS HERBAL FJS HERBAL
MANAGER MANAGER
CARE CARE
OF FJS
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1.PLANNING MAINTAINING
FOR FUTURE STAFF,
COORDINATI TRACK ALL THE
2.SEARCHIG
 1.RUNNING
REGUALR
CHECKS ON
NET WORK
AND DATA
SECURITY

2.PROVIDING

GUIDANCE

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The Opportunity Gap

Setting up a product from natural resources or herbal products is not an easy job to do. It needs a
lot of time and research. Furthermore, in business terms, ‘Time is Money. Therefore, much
money will outflow due to this long-term investment in research. Also, there are many
companies already present in this market for shampoo. However, the only difference is that they
use chemical resources to produce their products like shampoos and soaps; and we use herbal
products like chamomile, plant oil, jojoba oil, argan oil, etc.

Brands like Pantene, Sunsilk, L’Oreal charge a high price for their products due to brand
recognition. Therefore, people with low income may be derived from them. Our company FJ’s
Herbal Care, product Zero, looks out for these people and provides a cheap shampoo and looks
after one’s hair.

Extracting shampoo from herbal products may also be very costly. It will need much human
capital where people are specialized in this. However, the availability of these specialized
workers may not be as high. As a result, FJ’s Herbal Care may not have enough employees who
will work for them.

Many people are not aware of the advantages of using herbal products instead of chemical-based
products, which are highly available. To establish a new product, Zero, the company must
organize some campaigns to let know the benefits of their product. This will also result in a
considerable money outflow.

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Prototype

Feasibility Test

Product Feasibility analysis: It is the process of determining whether a business idea is viable
or not, the purpose of feasibility is to determine whether the idea will work, worth in the long run
or not. So, to test our Zero herbal shampoo feasibility, we have planned to run a survey among
100 participants who already have tested our product. To know their opinion and feedback we
have developed 10 close ended questionnaires to run the survey:

1. Which one is your favorite brand for shampoo?

a. Sunsilk c. Dove

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 b. Zero Herbal d. Others
2. What type of shampoo do you prefer?
a. Anti-dandruff c. Hair fall control
b. Herbal d. Damage repair
3. On an average, how often do you use shampoo?
a. Once a week c. Daily
b. Twice a week d. Thrice a week
4. Which size do you prefer most?
a. Small c. Mini pack
b. Large d. Medium
5. How much would you like to pay for 250 ml Zero Herbal shampoo?
a. 150 c. 250
b. 200 d. 300
6. How much would you like to pay for Zero Herbal mini pack?
a. 2 taka c. 3 taka
b. 5 taka d. 10 taka
7. From where you would like to purchase your shampoo?
a. Order in online c. Retail shop
b. Super shop d. Other place
8. Which factor affect you most while taking buying decision?
a. Price c. Ingredients
b. Brand name d. Packaging
9. How do you know about Zero Herbal shampoo?
a. Facebook c. Someone recommended
b. TV advertisement d. Sales representative
10. How much you will rate our Zero Herbal shampoo out of 10?
a. 9/10 c. 10/10
b. 8/10 d. 7/10

Industry and target feasibility according to Mullin’s seven domains model

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The test in recognizing an appealing objective market is to discover a market that is enormous
enough for the proposed business however is yet little enough to try not to draw in bigger
contenders. Mullins' Seven Domains Model aides in understanding the impact of 7 central point
or areas that are liable for the successful turnout of a business. To analyze industry and target
market attractiveness, we will examine the ‘Industry’ & ‘Market’ of the Mullins’ Seven Domain
Model.

Market domain 

1) Macro level 

It incorporates market attractiveness. Initially FJ's Herbal Care faced a lot of issues like
attracting customers towards our product, here customers are very willing to use clear, Sun silk,

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panting, L’Oréal Paris etc. shampoo and these products are very known locally and
internationally. So, to compete with international products is not an easy job to do, it takes time
to grab customers, there are many industrialists who faced losses but kept patience and after a
certain period they gained success. This patience is one of the major keys to overcome each and
every situation. And as the patience was kept, it helped the managers and other employers’ day
and night to make the space in the market. It had a great competition with "Clear" shampoo,
though their rating is 4.4 stars out five which is awesome and there is a reason behind it that they
are doing their shampoo business for 15 to 20 years which is huge as a result it is not easy for a
startup business to cope competition with them. But still as startup business, our product “Zero”
initial rating is 4 stars out of 5and if FJ's Herbal Care products reaches all over the world, then it
is guarantee it will be mined blowing rating which will exceed each and every shampoo
company including clear. Here, The Clear Scalp & Hair Beauty Therapy brand is now available
in 42 countries. Unilever intends to spend $250 million over the next two years to advertise, sell,
and encourage 21 different Clear shampoos and conditioners in three different lines targeted at
women, men, and African-American women in the United States. And this is the reason of clear
success but our product also gets a 5-star review and in a short time it made a perfect debut in the
shampoo market. Customers are currently paying attention to our products because of herbal
ingredients and quality Here, it will be seen whether the market is in a decent condition to invite
any new business or administration. Consumer and business purchasing preferences have an
effect on a company's efficiency. Side by side it is also important to monitor the working
condition of employees. If there is any vacancy then it is important to recruit new people
including proper knowledge and skills. Sometimes price of ingredients rises as a result the
purchasing power decreases due high price, then it becomes difficult for an industry to control its
income flow in that case our industry tries to give more offers in that booming situation as a
result customer are most willing to buy the product name "ZERO" shampoo.

2) Micro level

It includes target segment benefits and attractiveness. The industry's structure determines
how the activities are organized in order to achieve the ultimate objective. These

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activities include task delegation, coordination, board composition, professionalization
level and supervision. It can be structure of the matrix, functional structure, structure
dividing etc. To set an industry it is important to get ready for the competitors as well. So,
it is decided to sell the products in less cheap than the competitors. This will help and
allow the productive entity to generate more sales or superior margins compared to its
market rivals.

Industry Domain
1.Macro level
It includes industry attractiveness also, to examine it we will take a gander at Porters 5
powers model. This model talks about 5 elements which are:

a) The threat of new entrants: There is consistently a danger of new participants in an

entrant and a few groups can without much of a stretch impersonate one's thought and go
into the market. The odds of copying the idea can't be denied as the vast majority of the
asset is exceptionally simple to discover yet an individual knowledge must have certain
to execute it.
b) The threat of substitute: The threat of substitute product or administration is genuine
on the grounds that it will truly influence the business on the off chance that anybody
thinks of a thought which gives comparable advantages. The danger is higher if there are
numerous substitutes accessible.
c) The power of supplier: The supplier can hold a solid force regarding setting the value
low or high of a product or administration as supply cost is identified with the all-out cost
of creation. Suppliers, distributors and middle persons plays an important role to connect
products in the market field. They are the external factors who can help an industry to
grow more and take place in the local and international market.
d) The power of buyers: The force of buyer implies the dealing force of buyers. On the
off chance that there are not many options for the comparable issue, the buyer has the
haggling power. Buyers can stifle the productivity of the businesses from which they buy

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by requesting cost concessions or expansions in quality. Moreover, if quite possibly
buyer will enter the provider's business, bartering force of buyers goes up.
e) Rivalry among existing firms: It has been noticed that other companies are
competing for the same market, and the competitive environment is a summary of how
companies compete within a given market place, including distribution networks,
partnerships between suppliers, rivals, and distributors, pricing practices, and promotion
levels, among other things. As the product ZERO shampoo has made a place and a good
position in the market as a result lots of competitors are trying to compete with our
product but it’s pretty much that these companies cannot maintain the quality that as it
has been working with as it is a chemicals free product. Each organization and different
associations primary point is to acquire profit.

2. Micro level
It incorporates sustainable advantage which implies if the business has any special benefit
that will be difficult for others to copy. To forestall this an individual can look for
legitimate assurance like patent or copyright.

Team domain: Connectedness up, down and across value chain:

The business FJ'S Herbal Care drew in with other business areas, providers, suppliers.
Here experience is a major certainty without an encounter in the event that an individual
or a gathering start a business at first, it will be a lot of convoluted for them to adapt to
new circumstances. From the root level it expected to begin exploring about business
sectors, contenders, place, transportation and so forth. Self-research assists with building
up own expertise and improves the possibility of an area. While investigating at first
heaps of issues were confronted like the advertisers were not intrigued on to give any
business thoughts regarding their items. No finance manager will share their data with no
benefit and this is the truth that was confronted while exploring. So, it was the objective
and desire to set an own industry.

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Organizational Feasibility of FJ’s Herbal Care:

Organizational Feasibility Analysis includes the assessment of:

I) management prowess: is the ability of the initial management team

II) resource sufficiency: nonfinancial resources such as human resources (management,
employees)
III) facilities/location
IV) equipment, intellectual property protection, etc. are required

Management Prowess

The nature of our business dictates how operations are coordinated to achieve the end goal.
Job delegation, teamwork, board structure, degree of professionalization, and supervision are
all examples of these practices. From our leader it has been taught sincerely that it’s our job
to establish some ground rules or some direction early on. In these unprecedented times
where team members cannot be physically together everyone is having to adjust and this can
be a confusing and uncomfortable time. Set the boundaries, spell out how this is going to
work, guide the team and explain all the necessary procedures is how we maintain our
leadership and team work. We treat each and every employee equally important for the
company

Human Resources

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Human capital is an organization's most valuable asset, since the success or failure of a
company is ultimately dictated by its human resources. As a result, we recruited 60 people to
work internally and 15 people to work on marketing and promotional events externally. And
our recruitments are increasing day by day with the expansion of the company. We follow
the best recruiting processes

Our employee salary structure are:

Managers are paid between 25k and 35k taka.

The pay ranges from 15k to 18k taka for middle-level employers.
Engineers ranges from 40k to 45k.
Lower-level employers' salaries range from $10,000 to $12,000.
Depending on the experience and time

Facilities / Location & Production / Operations

Establishing a factory is not an easy task, for that lots of support, capital is needed. Initially
our company faced problem setting a factory in Chittagong. We face huge pressure from the
political and local people there. some of the friends living in Chittagong of our CEO
supported us lives in Chittagong and helped in this matter. After that with proper equipment
and workers the issue of factory resolved and established successfully. We reach customers
through advertisements, middlemen to spread market information, and online media such as
Facebook, Twitter (for international promotion), and Instagram. We have recently promoted
our shampoo product via Facebook influencers and some well-known food bloggers. In this
pandemic situation, we are also offering online services.

Sourcing Equipment & Supplier

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 Suppliers, distributors, and middlemen all play an important role in connecting goods in the
business sector. They are external influences that can assist an industry in expanding and
competing in both the domestic and foreign markets. The primary goal of any business and
other organization is to make money. In general, our slogan is to preserve quality, since many
well-known brands have tried to concentrate on profit, but have ultimately failed to maintain
the quality of their products. According to my strategy, if I maintain the quality of my
product from packaging to final output, profit would be automatic.

VRIO Framework of FJ’s Herbal Care:

The VRIO framework is a strategic analysis tool that assists organizations in identifying and
protecting the resources and capabilities that provide them with a long-term competitive
advantage.

VIRO stands for Valuable, Rare, Inimitable, Organized

Valuable:

All of the components that are part of regulatory frameworks, such as our industry's culture,
climate, work processes, management practices, and standards, are included in the Value System.
Our industry employees successfully complete the tasks outlined in this framework. As

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mentioned earlier about our featured product ‘Zero’ is totally based on herbal ingredients. we
thought in that time, what changes can we make in a shampoo? Then we started changing the
ingredients of basic shampoo, instead of chemical we will use herbal ingredients. after several
sample testing in the lab, we were very satisfied with our final product labeled as "Zero".

Rare:

Uniqueness and rarity is one of the secrets of our success. We try to use the best of the best
products to make our product exclusive than others. The herbal ingrediency used in our shampoo
is one its own kind. Some basic ingredients are Reetha, Amla, Hibiscus, Brahmi, Cinnamon and
Cloves, Aloe Vera, Lime Juice, Honey, Finugreek Seed Powder etc. we try to serve our best
while reminding everyone’s needs.

Inimitable

We imported a "blender" machine for my factory that machine aids in the conversion of natural
ingredients into liquid serum exactly that portion which is useful indeed.  However, this
technology is hardly seen in such industry which makes our product much more desirable and
useful than any other products.

Organized

In the industry, we prefer the comfort zone of employees because they are the key to controlling
the industry's wheel's speed. Employees and workers occasionally require free time to relax, and
thus a greenery environment helps a person to soothe easily so that they can continue their work
with complete focus. Wi-fi and computers are available in the facility. Our main goal is customer
satisfaction, and we strive to ensure that our customers have no complaints about our products.
From packaging to completion, I ensure that 100 percent quality is maintained. If a customer is

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dissatisfied with our product, they can call us immediately or contact us through any social
media platform. We have different service sections organized to provide our best services.

Section 2

Risk and Challenges:

The initial capital of FJ'S Herbal Care is 5cr which is a big amount for a startup business. My
industry is in Chittagong area there i selected a specific area and the locals did not agree with my
concern then i talked with political leader and locals and make them understand that the
percentage of harming the environment will be very limited, as chemical industry harm the
natural environment through ther poisonous chemical but FJ'S Herbal Care is herbal shampoo
industry so the ratio of harming the industry is zero percent or 1%. Then with legal documents i
got the permission to set my industry there.

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BUSINESS MODEL CANVAS OF FJ’S HERBAL CARE

KEY KEY VALUE CUSTOMER CUSTOMER

PARTNERS ACTIVITIES PROPOSITION RELATIONSHI SEGMENTS
Suppliers and Purpose of P FJ's Herbal Care's
Benefits and
distributors. making profit, Gaining new main motto is to
facilities that
focus in customers and target customers
customers are
quality convert them as a through
receiving and
maintenance regular loyal advertisements,
will further like
of FJ'S Herbal customer by face book and
delivery service
Care. maintaining Instagram
of our product in
quality of the influencers to reach
pandemic
product name Zero the customers that
situation.
shampoo our product ZERO
shampoo is the only
product which
KEY CHANNELS
maintain its quality
RESOURCES Advertisements,
starting from
Facilities for Social media,
packaging to final
the upper to middle persons
output
lower class who works for
employees like creating a face of
greenery ZERO shampoo as
environment a brand in the

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 and competitive field.
technological
benefits.
COST STRUCTURE REVENUE
Income and expenses of FJ'S Herbal Care. STREAM(S)
The income and expenses list are given on FJ'S Herbal Care's
the description. incoming source.

Overcoming the Challenges

FJ's Herbal Care has a great connection with my suppliers of raw materials. We never take any
materials on due and pay the total amount of money before taking those materials from them.
This helped us earn their trust, which makes us a loyal customer. 
 We also send enough supplies to our distributors. Later, they can sell our products to earn more
profits. We convinced our distributors that our product is unique and innovative. This new idea
will attract more and more customers, resulting in more profits.
Every company's primary goal is to earn more and more profits. FJ's Herbal Care also comes up
with schemes that help our product stand out from our competitors' products. We will make our
customers understand the importance of 'ZERO' shampoo and why it is better than other products
like Pantene, L'Oréal, etc. More and more people will be aware of the benefits of our product,
therefore, will purchase more of our shampoos.
To spread our shampoo's essential information and benefits, we need to advertise them as widely
as possible. Advertisement is the most effective way to reach out to customers. We have not
spared a single source to promote advertisements through television to advertisements through
different social media platforms like Facebook, Twitter, etc. Along with all these, we also have
our own Facebook page where our customers can post their reviews and get updated about our
new products. They can also post their complaints against any of our products with which they
are not completely satisfied. They will also get our phone number and email address on our page,
and thus they can call or email us during emergencies. 

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Once we successfully attract an adequate number of customers, it is essential to keep them loyal
to our products. If customer receives excellent service from FJ's Herbal Care, they will buy more
of our products. On the other hand, our customer care series is open 24/7. They can reach us out
at any time they want. This makes our customers feel that we care about them. 
I wouldn't say I like chemical-based products and also advise other people not to use them. We
have encouraged people to use herbal products. And people are warned of using chemical-based
products. Chemically produced goods are harmful to human health, whereas herbal products
have minimum side effects. We care about the quality of our products and leave no space for our
customers to complain either about our products or about our service. 
We give high importance to the quality of our products. And we are also finding new and
innovative ways to improve the quality of day by day. On the other hand, we also try different
other products like 'ATOR' more renowned as attar and launch it in Saudi Arabia. We will have
more products to serve our customers. Therefore, we will overcome the phase of 'lack of choice.' 
Moreover, as our products are unique, the demand for them is constantly increasing. More and
more people are being interested in buying our products. This increases our revenue and thus the
profit margin. So far, we have made enough profits to meet up our cost therefore no going back.
As a result, we can assure you that we will be able to survive the fierce competition.

Promotional Activities
Target market

The ideal target market for a startup is a little gathering of specific individuals focused together
and served by not many or no contenders. A target market alludes to a gathering of likely clients
to whom an organization needs to sell its items and administrations. Distinguishing the target
market is a fundamental advance for any organization in the improvement of a promoting plan.
Start by assessing the engaging quality of every expected target market. Various business sectors
might be at various stages and paces of development as well as sizes.

FJ's Herbal Care is an herbal-based company which makes herbal product and its only launched
item is “ZERO” shampoo. While setting the industry it faced lots of external and internal
positive sides as well as issues which results favorable and sometimes unfavorable for the
industry. Different business sectors might be at various paces and rates of growth and

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development as well as sizes but FJ’s herbal target market is huge where people of all age group
are included. As people of any age can use the shampoo “ZERO” which is FJ’s launched product
because it is an absolute chemical free product and made of herbal ingredients which is totally
harm free for kids or babies. So, it can be said that, aged, medium aged, kids and babies can use
the product without any doubt as it is full chemical free product. Substantially, it can be said its
target market is people of all generation starting from kids to any age. Therefore, the industry has
not picked any specific age group for its target market because its target is to serve to all age
group people.

FJ's herbal target markets are people who will school, entering school, and youthful mothers.
Customers of FJ's herbal item share in excess of a typical hair-care item, they share normal ways
of life. Thus, the organization needed to advertise towards a younger crowd. The startup was
initially centered around ladies who needed regular hair care items. It managed fixings like
herbal and natural part of the item. Product "Zero" of FJ's Herbal Care initially faced a number of
challenges, including attracting customers to our product. Clients in this area have easy access to
Clear, Sunsilk, Pantin, L'oreal Paris, and other shampoo brands, all of which are well-known
locally and internationally. Customers of FJ's herbal item share in excess of a typical hair-care
item, they share normal ways of life. To comprehend the allure of the item, the industry keeps on
investigating on their social and cultural environment. They do this by becoming familiar with
the customer's psychographics and conduct attributes. The target in doing so is to sell more hair
items by understanding the changing needs and the necessities of the market segment.

Market segment

At first FJ's Herbal Care product” ZERO” confronted a ton of issues like drawing in clients
towards our item, here clients are exceptionally able to utilize Clear, Sunsilk, pantin, l'oreal paris
and so on shampoo and these items are extremely known locally and universally. Along these
lines, to contend with worldwide items is certainly not a simple task to take care of, it takes effort
to get clients, there are numerous industrialists who confronted misfortunes yet kept persistence
and after a specific period they acquired achievement. This persistence is one of the significant
keys to defeat every single circumstance. All together for Fj's herbal, to convey the item ZERO
to the new target market, we have utilized an inventive method to mirror the item upon the

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youthful generation. Fj's herbal utilizes this method reliably all through the item bundling and
advancements. The name of the item mirrors the tone and character of the young crowd which
adequately requests to their target market. Our target market likes to know about the most recent
patterns in hairdos and looks that could be acquired by utilizing the items. Fj's herbal target
market needs a brand that centers around the necessities and is out of control as the target
market; an item which has a passionate association, and causes them to feel like the item is a
piece of their way of life. This market procedure likewise assumes a part into targeting on the
older part of the demographic, towards youthful moms who may search for hair care items for
their little girls. They would be inclined to purchase the item since it gives a young and a cutting-
edge vibe dissimilar to other hair care item contenders. ZERO by implication astutely utilizes the
youthful allure towards the older demographics that could likewise buy the item, since they are
enticed to feel more youthful. The procedures that Fj's herbal product “ZERO” apply into
targeting on the market changes the way organizations and the item "address the shoppers,
appears to the clients, and how we may even position the items. It has been planned and defined
explicitly for the target market needs. With the results of Fj's herbal products, the target market
can coordinate with the remarkable character with the items.

“ZERO” shampoo had an extraordinary incredible rivalry with "Clear" shampoo; however, their
rating is 4.4 stars out 5 which is amazing and there is an explanation for it that they are doing
their shampoo business for 15 to 20 years which is colossal thus it is difficult for a new company
like Fj's herbal to adapt rivalry to them. Yet at the same time as a new company our underlying
rating is 4 stars out of 5 and if FJ's Herbal Care item “ZERO “arrives at all absurd it is promised
that it will going to have great rating which will surpass every single shampoo company
including “Clear”. Here, The Clear Scalp and Hair Beauty Therapy brand is presently accessible
in 42 nations. Unilever expects to burn through $250 million throughout the following two years
to publicize, sell, and encourage 21 distinctive Clear shampoos and conditioners in three unique
lines focused at ladies, men, and African-American ladies in the United States. What's more, this
is the explanation of Clear’s achievement however our items additionally get a 5-star survey and
in a brief timeframe which made an ideal presentation in the shampoo market. Clients are
currently focusing on Fj's herbal product “ZERO” in light of herbal fixings and quality.

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Positioning strategy

Positioning refers to the place that a brand occupies in the minds of the customers and how it is
different from the competitors. There are several criteria of positioning to maximize the brand
value such as positioning based on product quality, price, characteristics, competition etc. we
will follow the pricing strategy to establish our zero-herbal shampoo as pricing is an important

Penetration Pricing: Penetration pricing is low priced strategy in order to capture the market
share as much as possible and fast expansion of a new business. Businesses initially offers low
pricing to attract wide range of customers very quickly and take them away from the
competitors. Penetration is the best action to enter in a new market because it increases both
markets share as well as the sales volume. Thus, a higher amount of sales help to lower
production costs and quick inventory turnover if we can run the policy effectively. We have
fixed our Mini pack Zero herbal 2-taka piece and 250 ml bottle 250 taka. Which is very lower
pricing comparing to our closest competitors such as Dove, sunsilk etc. In exchange of 250 taka
the value we will provide, definitely it will worth and meet the customers expectation.

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Market Mix

The marketing mix is the set of actions, or tactics, that a company employs to market its brand or
product. A typical marketing mix consists of the four Ps: price, product, promotion, and place.
However, in today's marketing mix, other Ps such as Packaging, Positioning, People, and even
Politics are becoming increasingly important. Here we will explain how we market the product
using 4p’s which we have developed, an Herbal Shampoo called "Zero."

4P’s

Price: refers to the price paid for a product. It is determined by the cost of production, the
segment targeted, the market's ability to pay, supply and demand, and a variety of other direct
and indirect factors. Pricing strategies can be of various types, each of which is linked to an
overall business plan. Pricing can also be used to differentiate and improve the image of a
product. As our product is comparatively new, we have decided to penetrate the market with
offering low pricing to the segmented customers. As we have early discussed that our target
customers are most of those people who are looking for a better value product with

28
comparatively lower price. Therefore, we have offered our customers the greater valuable
product within almost half price.

Compared to some renowned brands like Clear, Pantin, Sunsilk and L'Oreal paris, our large
sashay pack is offered retail only at 5 taka which is their small shampoo pack offering. We are
also offering a small sashay at only 3 takas. On the other hand, if you look closer, those are not
even herbal. Other existing herbal shampoos are far more expensive than ours. Large bottle
“Zero” 350ml is offered at only 200 taka which is at the moment the lowest offering at the
market.

Place: This term refers to the point of sale. A good distribution or 'place' strategy's main goal in
any industry is to catch the consumer's attention and make it easy for her to buy it. Retailers pay
a premium for prime real estate. In fact, a successful retail business' mantra is 'location, location,
location.' Our main at first target places are the small cities and rural areas where we can access
easily can comparatively faster. In our target areas we have achieve to grab the attention of target
customers and potential customs. We have set out our marketing team throughout every districts.
We are slowly moving to the city corporation areas. We expect to grab the whole national
shampoo market within next two years.

Product: refers to the item that is being sold the product must perform at a minimum level;
otherwise, even the best work on the other elements of the marketing mix will be in vain. As we
previously stated about my product Zero shampoo, it is entirely composed of herbal ingredients.
We use herbal ingredients instead of any chemical products. We were successful after providing
several sample tests in the lab. The final review and outcome of the product were well worth it,
and people will be very pleased with "Zero" shampoo, the final product we decided to go with.

29
Section 4

INCOME STATEMENT

30
ASSUMPTION SHEET:

(Q1) (Q2) (Q3) (Q3)

Goods Price Quant Tota Price Total Price in Total Price in Total in
in ity l in in in BDT BDT in BDT BDT
BDT BD BDT BDT

31
 T
Greas 80 100 800 82.5 8,250 85 BDT 8,500 85.5 8,550
e & BDT Litres 0 BDT BDT BDT BDT BDT
Oil for Per BD
machi liter T
nes
Soft 1.3 1000 1,30 1.5 1,500 1.8 BDT 1,800 1.9 1,900
plastic BDT Pieces 0 BDT BDT BDT BDT BDT
& Per BD
packa piece T
ging
Herba 1000 40 40,0 1050 42,000 1060 42,40 1080 43,200
l BDT kgs 00 BDT BDT BDT 0 BDT BDT
ingred for a BD BDT
ients month T
Hard 13 1000 13,0 13.3 13,300 13.5 Per 13,50 13.8 13,800
plastic BDT Pieces 00 BDT BDT Piece 0 BDT BDT
as a Per BD Per BDT
shamp piece T Piece
oo
contai
ner
Water 50 10 500 52 520 52.5 BDT 525 53.00 530 BDT
contai BDT Conta BD BDT BDT Per BDT BDT
ner Per iners T Per Container
cost Cont Conta 10 Litres
ainer iner
10 10
Litre Litres
s

32
1.

For Q1: (80×100)+(1.3×1000)+(1000×40)+(13×1000)+(50×10)=62,800 BDT

For Q2: (82.5×100)+(1.5×1000)+(1050×40)+(13.3×1000)+(52×10)=65,570 BDT

For Q3: (85×100)+(1.8×1000)+(1060×40)+(13.5×1000)+(52.5‌×10)=66,725 BDT

For Q4: (85.5×100)+(1.9×1000)+(1080×40)+(13.8×1000)+(53×10)=67,980 BDT

2.

Q1 Q2 Q3 Q4

CPI in Q1: CPI in Q2: CPI in Q3: CPI in Q4:

(62,800÷62,800)×100 (65,570÷62,800)×100 (66,725÷62,800)×100 (67,980÷62,800)×10
=100 =104.41 =106.25 0=108.24

CPI in Q1=100

CPI in Q2=104.41

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CPI in Q3=106.25

CPI in Q4=108.24

3. Calculate the inflation rate in Q2, Q3& Q4:

Inflation rate Q2 Inflation rate Q3 Inflation rate Q4

Q2=[{(104.41- Q3=[{(106.25- Q4‌=[{(108.24-
100)÷100}×100]=4.41% 100)÷100}×100]=6.25% 100)÷100}×100]=8.24%

Calculation of GDP rate:

Calculation of Nominal & Real GDP:

Q1 Q2 Q3 Q4
ITEMS Price Quantity Price Quantity Price Quantity Price Quantity
Soft 1.3 1000 1.5 900 1.8 850 1.9 800
Plastic for
packagin
g
Hard 13 1000 13.3 950 13.5 900 13.8 850
plastic for
shampoo
bottle

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Nominal GDP:

Q1=(1.3×1000)+(13×1000)=14300

Q2=(1.5×900)+(13.3×950)=13985

Q3=(1.8×850)+(13.5×900)=13680

Q4=(1.9×800)+(13.8×850)=13250

Real GDP:

Q1=(1.3×1000)+(13×1000)=14300

Q2=(1.3×900)+(13×950)=13520

Q3=(1.3×850)+(13×900)=12805

Q4=(1.3×800)+(13×850)=12090

Now,

Q1=(14300÷14300)×100=100

Q2=(13985÷13520)×100=103.4

Q3=(13680÷12805)×100=106.8

Q4=(13250÷12090)×100=109.5

35
Foreign Direct Investment graph is cited below:

Ratio analysis
I am analyzing below top 4 ratio for any company to measure its efficiency:
Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay
short-term obligations or those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current debt and other
payables.
Current Ratio=Current liabilities ÷ Current assets
= 210000÷200000
= 1.05
So, we can see the company has ability to pay short term debt in a moderate level.

36
Quick Ratio: The quick ratio, also known as the acid-test ratio, measures the ability of a
company to pay all of its outstanding liabilities by having assets that can be quickly converted
to cash. These assets are called quick since they can be quickly converted into cash.
Quick ratio = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) ÷
Current Liabilities
= 100000+ 2000000+500000÷800000
=4.37
This indicates that company has 4.37 lakh of liquid assets available to cover each 1 lakh of
its current liabilities.
Return on Equity: The return on equity is a measure of the profitability of a business in relation
to the equity. 
Return on Equity= Net profit ÷ shareholder’s equity
= 140000÷ 7000
= 20
So, the company generates a profit of 20 taka for every 100 taka of equity it owns which is a
good indication.
Net Profit Margin: Net profit margin ratio is a measure of profitability. It is calculated by
finding the net profit as a percentage of the revenue.
Net Profit Margin= (Revenue-cost) ÷ Revenue×100%

= (260000- 219000) ÷ 260000×100%

= 15%

So, we can say that the company is carrying a healthy profit margin.

PRICING OF ZERO SHAMPOO:

37
 ZERO HERBAL SIZE PRICE
LARGE PACK 5BDT
SMALL PACK 3BDT
BOTTLE 200BDT

Pricing strategy of FJ Herbal Care:

Pricing is a critical component of effective marketing. In the marketing mix, it is the only source
of revenue. Price is also the marketing variable that can be changed the most quickly, perhaps in
response to a competitor price change. Price competition is simply tough competition, which
may or may not include price cutting. Profit maximization may not be possible because lowering
prices by one firm will compel others to do the same, resulting in each player having roughly the
same market share and either no or lower profits. The cost of a product is referred to as its price.
It is determined by the cost of production, the market's ability to pay, supply and demand, and a
number of other direct and indirect factors. Pricing strategies come in a variety of forms, each of
which is linked to a larger business plan. Pricing can also be used to differentiate and improve a
product's image. Because our product is still relatively new, we have decided to enter the market
by offering low pricing to segmented customers. As previously stated, our target customers are

38
primarily those seeking a higher value product at a lower price. As a result, we have offered our
customers a more valuable product at nearly half the price.

The pricing strategy that is being used in our company is a product pricing strategy, in which the
price of the product that is being sold more is reduced and the price of the product that is being
sold less is increased. We are attempting to use the demand price strategy to maintain its
monopoly in the market for the specific herbal hair products, so that we become the market's sole
competitors. Mostly, hair care items include hair oil, shampoos, conditioners, and hair color. The
shampoo market has not reached its peak in size yet. But he shampoos market is the fastest
growing item in the personal product category, having grown nearly two and a half times in the
last few years, despite the fact that the market is primarily confined to urban areas in Bangladesh.
Compared to some competitors of Zero like sun silk, dove, Rejoice, Pantene, L’Oreal and so on.
our large pack OF ZERO HERBAL offered retail price is only 5 taka which is their small
shampoo pack offering. We are also offering a small pack at only 3 takas. On the other hand, if
you look closer, those are not even herbal. Other existing herbal shampoos are far more
expensive than ours. Large bottle “Zero” 350ml is offered at only 200 taka which is at the
moment the lowest offering at the market. Last but not least, we launching our promotional
pricing (20% less) for the Eid, this will eventually increase our sales and revenue and help us
penetrate the market easily.

Detailed funding:

FJ's Herbal Care is an herbal based industry which makes herbal items and its solitary dispatched
product is "ZERO" shampoo. While setting the business, it confronted bunches of external and
internal positive sides just as issues which results favorable and sometimes unfavorable for the
business. Distinctive business areas might be at different paces and rates of growth and
development as well as sizes. We are focused on different fixings, comprehensively planned
items and associations with specialists and associations that secure and protect the planet for all
nature lovers. FJ's herbal product 'ZERO' raised 2500000tk to fuel development of its custom
herbal shampoo and that has outperformed 200000tk in annualized deals since the last year.

39
FJ’s industry has invested 20,00,000-tk for the business and took 500000-tk loan from bank. The
business is solely run by one owner so the business whole profit and loss need to bear by the
owner solely. Further details of the proposal will be provided in in the company’s operating
agreement. The invested capital will be utilized for the accompanying:

 Marketing effort for promotion or advertisements.

 Expenses of rent of the location and other expenses including employee’s salary,
packaging and other additional cost like utilities bill payment.
 Cost for licensing the business and registration
 Six-month operating and financial expense
 Insurance and bank charges and other income tax expenses which are attached with the
business

40
Scenario Analysis

41
Q1 Scenario Summary

42
Q2 Scenario Summary

Q3 Scenario Summary

43
Q4 Scenario Analysis

44
Future Strategies for start-up growth
Zero shampoos are a unique product, and putting them out to the market will not be a
complicated thing to do. The most important thing we need to keep in mind is that we need to
attract more and more customers. And these customers will bring us lots of profits as the
revenues are likely to increase. We all understand the fact that a business runs smoothly if it can
make a lot of profits. Therefore, any industry will have to make a tremendous amount of profit to
survive.

The most effective way of reaching out to customers is advertising. During this pandemic, we
are all working from home. People are now spending a lot of time on Facebook, Messenger,
Instagram, etc., to be connected with others. Therefore, we believe that if we launch our
shampoo and other herbal products through these social media platforms, we may reach out to
our customers very quickly and effectively. YouTube can also help us in advertising our
products between the videos present.

On the other hand, we will also use the basic techniques to advertise through television and
newspapers. Though many people have lost the habit of reading the newspapers, they turn on
their television to be updated with the latest news of the ongoing pandemic. After getting to
know about our new and unique products, they may want to try it.

Moreover, we need to look after the quality of our products. No business wants to dissatisfy its
customers. This will lead to a considerable loss. We are planning to keep a separate team who
will check if the workers are doing their work well. They will especially keep an eye on the
resources that are used to develop our products. The shampoo is a sensitive product. Anything
wrong with this will cause a disaster in our market demand.

We are not very concerned about our competitors because most of the soap-like products are
made from chemicals instead of natural resources in Bangladesh. Nowadays, people are getting a
bit health and beauty conscious. And this is the advantage we took up. People are likely to be
attracted to our pure herbal products. But still, we like to keep our prices as low as possible. We
want our customers to be able to buy them. The prices of our products are slightly lower than the
on-demand shampoos like Pantene, L'Oréal, Sun silk, etc. This is how we keep our competitors
away.

45
Before setting my industry, "FJ's Herbal Care," I faced some problems. One of which is that we
were facing difficulty searching and setting two things: the factory and the office. I have had
talked with many political parties regarding this issue. I have also fixed a lawyer who can help us
with any types of law-related topics. As per law, I have set my factory so that there is enough
spacing with other factories and maintaining the wastage materials of my factory. And I have a
rented office with legal documents. Even I have the legal documents for my factory, which are
very important for every individual starter.

Then I have maintained the law legally made for the employees like legislation about jobs. The
Employment Rights Act, the National Minimum Wage Act, and the Working Time Regulations
are essential pieces of legislation to follow. I called an insurer or insurance broker and explained
how your company would operate; they will then clarify what insurance coverage you are
required by law to have and other ranges you may consider. Premises, premises contents, raw
materials, work in progress, storage, goods in transit, employee liability, public and products
liability, environmental liability, and motor insurance are all examples of this (for delivery
vehicles). The trade group for my specific form of a manufacturing company may have secured
favorable premiums for its members, so it's worth looking into.

46
Start-up KPIs for performance tracking

KPIs are values that show how a startup is progressing toward its goals and objectives. They’re
used to measure progress and identify areas of startup that need improvement. There are several
criteria to measure KPI. However, I am measuring below only those which best suited for my
business Zero Herbal Shampoo:

Average revenue per user: The average amount of monthly revenue that you receive per user.

Monthly Total Revenue ÷ Number of users (monthly)

Price of the product is 250 taka

Monthly number of sales 200 piece

Total revenue (monthly) = 54000

So, Average revenue per user = 54000 ÷ 200 = 270

Customer churn rate: Customer churn rate (CCR) is a KPI that shows how fast startup is losing
customers.

Customer churn rate= Number of customers that cancel per month ÷ Total number of customers
you had on the same month

Cancellation = 30, Total customer = 1000

So, Customer churn rate= (30/1000)*100= 3%

Customer Acquisition Cost: It is the measure of how much it costs you to acquire a new
Customer.

Customer Acquisition Cost= Total Cost of sales & Marketing÷ Number of new customers

Total marketing cost = 25000, No. of new customers = 206

So, Customer Acquisition Cost= 25000 ÷ 206= 121

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48