DREAM ENTERPRISE

Business Plan

Introduction:
Dream Enterprise founded 11months ago by 3 entrepreneurs, is about to enter detergent powder market dominated by Surf excel, Keya and Wheel. Overall economic condition of our country has increased the possibility of introducing better product in the market. All of detergent powder company produce common type detergent power but Dream Enterprise produces a special type of detergent powder only for babies which are first ever in our country. The estimated size of the total detergent powder market is Tk. 900,000,000.with 60% growth within expected 4 years. To gain market share in this environment, Dream Enterprise must carefully distribute the product to the targeted customers.

Executive Summary:

Dream Enterprise founded 11months ago by 3 entrepreneurs, is about to enter detergent powder market dominated by Surf excel, Keya and Wheel. Overall economic condition of our country has increased the possibility of introducing better product in the market. The estimated size of the total detergent powder market is Tk. 900,000,000.with 60% growth within expected 4 years. To gain market share in this environment, Dream Enterprise must carefully distribute the product to the targeted customers. Though our product is a new addition in baby product market, we have not any direct competitors. AngeLs market consists of consumer and business users who need to conveniently store, communicate and exchange information. Specific segments being targeted during the first year include upper-class, upper-middle class, middle-class, and middle-lower class people that use detergent powder to clean their babys cloth. We produce Angle baby detergent powder because other baby detergent powder company not has in Bangladesh. At first our operational level is only for Dhaka city than we expansion in our operation in all over the country within one year. we start our operation in 64 districts. Our product will be distributed through a network of retailers in the first year. We will have good partner relationship management. We will try our level best to satisfy our supplier along with the pioneer customer. If the suppliers are not happy then they will not co-operate our customer and that will be a failure for our company. Our marketing strategy is based on a positioning of product differentiation. Our primary consumer target is middle class to upper middle class to upper high class people. As the product is innovative, the consumers are going to appreciate it. And according to the R&D (Research and Development) department, this product will be a strong product mix for our company and once our AngeL baby detergent powder will reach to the hand of every of our targeted customers.

Company Analysis:

 Competitor Review Though our product is a new addition in baby product market, we have not any direct competitors. But consumers are habituate with general washing product to wash their babies cloth. So we think our major competitors in the market are Surf Excel, Wheel, Keya, Tibbet, Chaka, Zet, and Tide. Table 1.2 shows the major competitors in the market and the price of their product. Surf Excel washing powder: Surf Excel detergent powder is the dominating this sector. It is a product of Uniliver Bangladesh Ltd. It is being used by 30% people of total market. Surf Excel is a synthetic detergent powder. It produced by blue energy, LAS AD, sodium, carbonate, STPP, SCMC and enzyme. It can clean the cloth very well but it does that very roughly. Wheel washing powder: It is another product of Uniliver Bangladesh Ltd. It is trying to achieve a good market share. It has a positioning statement that it produced by LAS AD, Soda Ash, Precipitin Calicle, CI 74260, CI 11680, and Rerun . It used by 50% people of total market. We hope that our product will draw the attention of the user of the product and it will have distinctive advantage in our customers mind. Keya washing powder: Keya washing powder has a very small market share in the market. This competitor does not spend much money in advertising activities so it can not compete with the other competitors. We will take a good competitive advantage by providing extra features and conveying the massage to the customers. Chaka Washing powder: Chaka Washing powder has a very insignificant market share in our cloth washing market. We hope that this company wont be a threat for us. Even then we will be careful about every competitor that exists in the market. Table: Selected Competitors and its price
Name Surf Excel Keya Wheel Chaka Tibbet AngeL Quantity 500g 500g 500g 500g 500g 500g Price(Tk) 80 26 36 26 26 49

Source: Collected from product packet

Description of Venture:

AngeLs market consists of consumer and business users who need to conveniently store, communicate and exchange information. Specific segments being targeted during the first year include upper-class, upper-middle class, middle-class, and middle-lower class people that use detergent powder to clean their babys cloth. Detergent powder can choose between mainly on two specific brands one is Surf excel detergent powder and the other is Wheel detergent powder though there are some insignificant brands exist in the market. Product Review Our new innovative product, the AngeL baby detergent powder offers the following benefits: AngeL baby detergent powder will make the cloth softest and whitest. It contains Antibacterial ingredients, which destroy germs 99.9%. Washes 99.9% spotless white. Being washed by the AngeL baby detergent powder the cloth will have a fragrance of Rose flower. The toughest of stains completely removed. AngeL baby detergent powder cares for colors. Little more price for much more quality washing.

Production plan:

Model: production Plan We produce Angle baby detergent powder because other baby detergent powder company not have in Bangladesh .Baby detergent powder is good for baby. We can see many detergent powders have in our market but all detergent is harmful for baby skin but our product is good for baby. Other detergent companies are not produce baby detergent but huge market demand in Bangladesh baby detergent powder. Recently dream enterprise will being producing baby detergent powder.

Operation Plan:

At first our operational level is only for Dhaka city than we expansion our operation all over the country. Within one year we start our operation in 64 districts.

Our product is certified as a detergent expert and we maintain satandard quality of our product. Our company maintain a standard level of manufacturing product and justify it in laboratory with mordern instrument.

Marketing plan:
Distribution Review Our product will be distributed through a network of retailers in the first year. We will have good partner relation management. We will try our level best to satisfy our supplier along with the customer. If the suppliers are not happy then they will not co-operate our customer and that will be a failure for the company. Among the most important channel partners being contracted are We distribute our product through seven of our representative in seven divisions. We will have 64 sells agent in sixteen different districts. We will have our own delivery van to transport the product. Some cases we will use the railroad and the river to transport our product. Our sales agent will distribute the product to the retailers. We keep it in some mega shops like Agora, Meena Bazer, Nandon, Mega consumer Shop, PQS, Shopno etc. We plan to distribute our product according to the demand of the product. In the first year, we emphasize on trade sales promotion.

The New-Product Development Process:

Idea Generation Idea generation means the systematic search for new product ideas. New product ideas include internal sources and external sources. We get idea from these two sources. Our sources are Internal sources Sales representative Researchers Senior executives External sources Customers Competitors

Different baby product category

Idea screening Idea screening means screening new product idea in order to spot good ideas and drop poor ones as soon as possible. We have generated several ideas those are Shaving cream with aftershave, Shampoo with shower gel, Beef Masala, Sun screen and fairness cream, and baby detergent powder. We screen out Baby detergent powder as our selective innovative product. Concept developing and testing Concept developing: Product concept is mainly based on the product idea-a possible product the company is going to offer to the market. In product concept the detailed idea about the product is stated to the development term. We screen out Baby detergent powder as our selective innovative product. We consider some reason to select Baby detergent powder. Market size: In Bangladesh there is a large baby product market. We select baby detergent powder based on this large baby product market. A new product in baby market: There is no specific product for washing babies cloth. So, our AngeL baby detergent powder is a new addition of baby product market. Development time and cost: It will take low time and cost to development of this product. High rate of return: Though it is a new product for baby and it contains a large market so we are expecting the rate of return of this product will be high. Concept testing: Concept testing thus tests the new product concepts with a group of target consumer to find out whether the concept has a strong appeal. For tasting our concept, we develop a questionnaire and survey it among the sample target customer. After collected feedback from them, we analyze their opinion through this process we test our concept.

Marketing Strategy:
Mission Our marketing strategy is based on a positioning of product differentiation. Our primary consumer target is middle class to upper middle class to upper high class people. Then our target will be to persuade people to spend little extra for babys protection by purchasing our product. Our strategy is to make some opinion leader to introduce the product and we want to have the positive word of mouth advertisement for our product. Our secondary target market will be the business firms like the lower middle class to low class. Our next target will be to produce more high quality product to attack the rich firms by providing them a product of more price with more quality. Positioning Using product differentiation, we are positioning the Angel baby detergent powder the most effective cloth washing with antibacterial ingredients. We will focus on mainly on the effectiveness of the detergent powder along with the sweet smell and germ free washing. Our positioning statement will be Where clean and safety is matter. You will be happy by the sweet smell of rose flower. We try our best to keep your baby clean and germ free. We will send this statement to the targeted customers. Our target customer zone will cover all the customers. Those who use Surf excel are concerned about high price and those use other powders are concerned about their performance. So, the customers can switch if they get a combined offer of service quality, price, antibacterial and new fragrance which stays longer in babys clothes than any other common detergent. We hope that our customers will prefer the product over the competitors product. We will have totally different and most attractive packaging process. Target Market Our target markets are separated into three segments. The segments are Upper-class, Upper-middle class, middle-lower class and lower class. The segment details are as followsUpper-class: - Upper-class is a portion of the population. According to our marketing investigators, Upper-class is the major consumer of detergent powder. They like different kind of detergent powder to wash their babys cloths. So we are predicting that after launching the product they will buy this product immediately.

Upper-middle class: - There is a large portion of the population occupied by uppermiddle class people. They are our one of the potential customer to serve. Middle-lower class: - Middle-lower class is another portion of the population. Middlelower class is most careful and sophisticated consumer but most concern about the price and the quality. So, targeting the middle-lower class is also one of our effective decisions. Marketing Objectives Our objective is to introduce new innovative product in the market and make profit by satisfying our customers best. We want our customers to come back but not the product. We have set a challenging objective of reaching the break even point in one year which is tough but not impossible. If the company can work efficiently and effectively in the market we are very much likely reach our objective. We have another objective of having good brand equity in the market. In the future we want lunch few products in the market and want to take the advantage of lunching new product under a good brand name. Financial Objectives AngeL baby detergent powder will be introduced at Tk. 49 estimated retail price per unit. We expect to lower the price after 6 months when our employee will be more skilled. When we will expand our product line then we will be able to reduce the cost as well. At the very beginning, we want to go for 4,000,000pcs detergent production and selling price is to be Tk. 49 per piece. Marketing Mix Our marketing mix for the new product AngeL baby detergent powder is as follows: Product marketing Our product will enable our customers to have a different experience to test in using detergent. They will be able to differentiate our product in quality which is unique in the baby product market. They will not be able to feel the same way for the other detergent in the market. Pricing In the current market of Bangladesh, there are a number of detergent products exist. Through the market research we have revealed that most of these products price is Tk26 except Surf Excel which price is tk80. According to our cost and benefit we set our product price is Tk. 49.

 Place For initial stage we will set sales agents and distributors in several districts. They will provide the product to the whole seller and retailer, so that our product will available to the target consumer. Promotion The most successful advertising and promotion have been through the following: Newspaper Advertisement: The Prothom-Alo, The Janokantho, The Jugantor, The Daily Star, The Independent, The Daily Samakal, The Daily Noia Digonto, The Manobjomin etc. Television Advertisement: - Channel I, ETV, BTV, NTV, ATN Bangla, Chanel 1, RTV etc. Radio: - Bangladesh Beter, Radio Furti, Radio Today, Radio Amar etc. Leaflets: - Distribution about the product in different areas.

Business analysis:
SWOT Analysis The Research and Development (R&D) department found some major strength and weakness for the new product AngeL baby detergent powder of the company. According to the R&D department the SWOT analysis of the product is described below. Strengths Strong relationships with suppliers that offer credit arrangements, flexibility and response for any new product of our company. Excellent, stable and trained staff for customer service. Skilled employee in marketing department for the promoting the product. Totally new feature in the baby product industry. We have total quality management for our product. Strong merchandising and product presentation. Good relationship with companys suppliers, partners and customers. High quality machineries and raw materials.

Weaknesses New environment for the company as because first time lunching product in the market. Lack community support so far because we have not had any formal and informal communication with any political leader of the community. Less product classification Opportunities Product diversification: Baby soap, Baby shampoo, Baby foods, Kids game, Kids fashion house, kids education care etc. Create new market: Export in to foreign market Producing consumer and toiletries goods One stop service: Home delivery, Customer care, Online order Threats Other competitors of common detergent powder companies have a high market share in the detergent powder market. This company may be able to become threat for us by introducing new product like ours. Economic, political and technological factors of the country may be threatening for our product.

Financial Plan:
DREAM ENTERPRISE
Income Statement For the end of31, December 2009 Taka 245000000 140000 50000000 50140000 100000

Sales

50,00,000Pcs les cost of goods sold: beginning inventory Add purchase Goods available for sale Less ending inventory Gross profit Less operating expense: Salary and wages

50040000 194960000

Rent
Depreciation Others expenses Net operating Income Less Interest expense

5000000 4500000 1000000 50000000

60500000 134460000 6500000

Net Income

127960000

DREAM ENTERPRISE
Balance Sheet End of the31, December 2009 Current Asset: Cash Account Receivable Inventory Total Current Asset Fixed Asset: Building and equipment Others asset Total Assets Liabilities And Equity: Accounts Payable Interest Pay able Bank loan payable Shareholders equity: Capital stock Retain earnings Total liabilities and equity Taka 40000000 360000000 10000000 410000000 440000000 50000000 900000000

200000000 20000000 350000000 250000000 80000000 330000000 900000000

Break Even Analysis:

Variable Cost (Per Unit)

Direct Material Direct Labor Indirect Material Indirect Labor Fixed Cost (Total) Expected Unit Sales Manufacturing Cost Sales & Promotion (Per Unit) 20 5 4 1

30

50, 000,000 5, 000, 000 40 3

Total Cost (Per Unit)

43

Manufacturing Cost

= Variable Cost + (Fixed Costs/Unit Sales) = 30 + (50, 000,000/5, 000, 000) = 40 Per Unit

At the very beginning, we want to go for 5, 000, 000pcs production and selling price is to be tk 49 per 500g.

Unit Cost Markup Price = (1 Desired Return on Sales) 40 = (1-.49) = Tk. 78.43

Fixed Cost Break Even Volume = Mark up Price Variable Cost

50, 000,000 = 78.43 - 30 = Break even sales = = 10, 32,418 Unit 1032418 Unit x tk.49 tk.50, 588, 478

Price (Tk.)

Figure: Break-even Chart of

AngeL baby detergent powder

TR TC

50, 588,478 50, 400, 000 50, 300, 000 50, 200, 000 50, 100, 000 50, 000, 000 49, 900, 000
BEP FC

Quantity (Unit)

300,000

600,000

1032418 (Vol)

Sales Forecast We are forecasting to sale out product mainly on direct sales through dealers. We assume that our growth rate will increase directly through direct sellings. Our dealers will sale it to the buyer, from the buyer it will go the retailers, and finally our product will go to the final customers. Since it is an internet age if there is any buyer wants to get out product through internet than another strategy will grow for that side. Keys to Success The key to success of this product are Maintaining gross margin of 40% at the first year. Creating position in customer mind that, it will make a germ free wash Experienced and eye catching advertisement on most of the areas of the country. Proper channel distribution. Proper Customer Relationship Management (CRM). Proper Supply Chain Management (SCM)

 day. Critical Issues

Generating average sales in excess of Tk 4, 000,000 per business Online News and Advertisement.

As the product is new and innovative in the baby product market, the company has to consider some critical issues, which are as follows The products sales growth will be slow for first seven months in the very first year of their operation. Thus the company has to hold the products position for first 7 month, which is admirable. Though we target baby as our target customer, so it may take several time to take position in parents mind. As the product is new in the market, it will take too much time to stay in the heart of the consumer and the beginning consumers will be innovators. Thus attractive and effective marketing will be needed to attract, grow, and retain the customers. The marketing objectives will be to create product awareness and trial. The company must use heavy sales promotion to entice trial that is matter of investing huge amount of money. The products cost per customer will be high, as the product is lunching initially.

Environment:
Micro and Macro environment is going to affect the success of AngeL baby detergent powder Micro Environment The components of micro environment such as Companys customers, suppliers, competitors, Marketing intermediaries, employees, public, and partners have great influence in success of the product. So, the company will has to maintain its CRM (Customer Relationship Management), PRM (Partner Relationship Management), ERM (Enterprise Resource Management), SCM (Supply Chain Management) and KM (Knowledge Management) effectively. Macro Environment The larger societal forces demographic, economic, natural, technological, political, and cultural forces will have effect on the success of AngeL baby detergent powder

Demography if the population sizes in Dhaka city increases then the product will in high demand. Economic - if peoples income increases then everybody will have the ability to buy our product for their sweet babies. National economic health - The product will do better if the national economy becomes healthier. But on the other hand, if the national economy becomes weaker, the product may found itself in a critical situation. Technological If our company can take new technology very fast comparing with others then obviously our company will take the advantage of creating new product and market opportunities.

Political situation: If the government looses their rules and regulation such as imposing less income tax then our company can easily generate profit and can serve more customers. Besides, political situation may have a bad impact on the product, if the situation is not in a fair position.

Conclusion:
In conclusion we can see that, the product the company is going to launch has a bright future in its market. As the product is innovative, the consumers are going to appreciate it. And according to the R&D (Research and Development) department this product will be a strong product mix for our company and once our AngeL baby detergent powder will reach to the hand of every of our targeted customers.

Appendix:
Survey
Number of People: - We have survey almost 20 persons who provided their genuine views about the new product development Baby Detergent. Where we survey: - We have had survey in urban area to the House wife, Service Holder, and other occupation people also. Number of question: - We have included 8 questions in our survey, the questions

Survey Result

Here is the chart that concisely explains the response to the questionnaire:

Question number 1. 2. 3. 4. 5. 6 7. 8. Answer (a) 75% 0% 0% 5% 30% 100% 20% 50%

Response to the Questions (In percentage) Answer (b) Answer (c) Answer (d) 0% 35% 65% 0% 0% 0% 5% 0% Answer (e) 0% 30% 10% 0% 0% 0% 0% 0%

25% 0% 10% 25% 10% 15% 65% 30% 65% 5% 0% 0% 55% 20% 50% 0% Table: Survey Result

Research Question

We are reser4cher and developer of Absolute Company Ltd. (ACL). We are doing a research on New product development Baby Detergent Powder. We request you to help us by giving your truthful answers.

Fill up the following about yourself (Use Tick Mark only)

Gender: Male Occupation: House wife Area: Rural Urban Other....... Service Holder Other... Female

(Please answer one option from each question) Q.1: What types of washing product are you using to wash your babies cloth?

A. Common Detergent Powder B. Laundry Soap C. Liquid Washing D. Others.. Q.2: Common washing product is appropriate for your babys cloth Do you agree with this opinion? A. B. C. D. E. Strongly agree Agree Neutral Disagree Strongly disagree

Q.3: Babies cloths remain soft after using common washing product. Do you think that? A. Strongly agree B. Agree C. Neutral

D. Disagree E. Strongly disagree Q.4: Are you satisfied with your washing product for your babys cloth? A. B. C. D. Yes No Neutral Others

Q.5: Do you feel that Special detergent powder is needed to wash your babies cloth? A. B. C. D. Strongly feel Feel Neutral Dont feel

Q.6: Do you want antiseptic ingredients with this baby detergent powder? A. Yes, I want B. Neutral C. No, I dont want Q.7: Which sizes are you prefer for this baby detergent powder? A. B. C. D. 250 gm 500 gm 1000 gm Other (Please Specify) ..

Q.8: If this product is available market, will you purchase it? A. Yes, ready to buy now B. Yes, but after considering a demo product C. No, not this time (Thank you very much for your kind cooperation)

Data Analysis
Q.1: What types of washing product are you using to wash your babies cloth?

Answer offer Common Detergent Powder Laundry Soap Liquid Washing Others

Number of response 15 5 0 0

On % 75 25 0 0

Interpretation: - After asking this question most of people that are about (75%) answer that they are using common detergent powder to wash their babys cloth. Other people (25%) answer that they are using laundry soap. Analysis: - We understand through their answer that, most of people in our country prefer detergent powder to wash their babys cloth.

Q.2: Common washing product is appropriate for your babys cloth Do you agree with this opinion? Answer offer Strongly agree Agree Neutral Disagree Strongly disagree Number of response 0 2 5 7 6 On % 0 10 25 35 30

Interpretation: - After asking this question (35%) people answer that they are disagree with this statement, (30%) answer that they are strongly disagree, (25%) answer as neutral. On the other hand only (10%) people are agreeing with this statement. Analysis: - We understand through their answer that, most of people think that, common washing product is not appropriate for their babys cloth.

Q.3: Babies cloths remain soft after using common washing product. Do you think that? Answer offer Strongly agree Agree Neutral Disagree Strongly disagree Number of response 0 2 3 13 2 On % 0 10 15 65 10

Interpretation: - After asking this question most of people that are about (65%) answer that they are disagree with this statement, (15%) answer as neutral, (10%) answer that they are strongly disagree, on the other hand (10%) answer that they are just agree.

Analysis: - We understand through their answer that, most of people think that, babies cloths are not remain soft by using common washing product. Q.4: Are you satisfied with your washing product for your babys cloth? Answer offer Yes No Neutral Other Number of response 1 13 6 0 On % 5 65 30 0

Interpretation: - We survey a question among people that Are you satisfied with your washing product for your babys cloth? Most of them (65%) answer that, they are not satisfied. Another (30%) answer as neutral. Other people (5%) answer as yes they are satisfied. Analysis: - After getting answer from them we can say that, most of people are not satisfied with their washing product for their babys cloth.

Q.5: Do you feel that Special detergent powder is needed to wash your babies cloth? Answer offer Strong feel Feel Neutral Number of response 6 13 1 On % 30 65 5

Dont feel

Interpretation: - On the basic of this question most of people (65%) answer that they are feel special detergent powder is needed to wash their babys cloth. Other people (30%) said that they are strongly felt. Another people (5%) answer as neutral. Analysis: - We come to know from their answer that most of people in our country feel special detergent powder is needed to wash their babys cloth.

Q.6: Do you want antiseptic ingredients with this baby detergent powder?

Answer offer Yes, I want Neutral No, I dont want

Number of response 20 0 0

On % 100 0 0

Interpretation: - This is the question where all people answer the same. All of people answer that yes, they want antiseptic ingredients. Analysis: - We say through their answer that as babys skins is more sensitive, so that most of people think antiseptic ingredients is essential with baby detergent powder.

Q.7: Which sizes are you prefer for this baby detergent powder?

Answer offer 250 g 500 g 1000 g Other

Number of response 4 11 4 1

On % 20 55 120 5

Interpretation: - On the basic of this question most of people (55%) answer that 500g will be perfect. Other people (20%) said that prefer 1000g, another (20%) prefer 250g. remaining (5%) answer as other.

Analysis: - We come to know from their answer that most people prefer 500g size for this detergent powder. Another people prefer 250g and also 1000g. So we think 250g, 500g, 1000g will be product size as preferred by people. Q.8: If this product is available market, will you purchase it? Answer offer Yes, ready to buy now Yes, but after considering a demo product No, not this time Number of response 10 10 0 On % 50 50 0

Interpretation: - We asked to people that, if this product is available market, will you purchase it? (50%) answer that yes, ready to buy now, another (50%) said that yes, but after considering a demo product. Analysis: - By analyzing there answer we can said that, half of our target market we can capture without any demo product. But to capture another half of market we need demo product.