A BUSINESS PROPOSAL ON MRET LABONNO
ü Introduction
Mret Labonno is going to establish with new dimension, lucrative & fashionable style of terracotta products crafted with soil in 2010 entering in the pottery & terracotta industry in Dhaka City .The Company has also exclusive visions to perform in whole Bangladesh as well global to export the products to overseas market as a vision in 2012.
ü Mission Statement
The mission statement of the Mret Labonno is “to be the attractive crafting terracotta product manufacturer in Bangladesh providing the best quality services to our customers, value to our shareholders, and a dynamic working environment for our society”.
ü Goals and objectives
The company’s goal & objective to make position Bangladeshi terracotta industries as a designer ware and as a vital part in interior designing and hence uplift the vanishing art of exclusive Bangladeshi clay artifacts to maximize the profit & give better services to the customers.
ü Industry
It is a growing industry in Bangladesh. Today’s commercial companies & cultural classes’ people are more concern about the creativeness & decorations of their corporate, factory layouts. So we are got & enormous opportunity to build up this industry.
ü Strength
We believe that our most substantial Strength is our innovatively designed product. Maximum firms in this industry do not have creativity & innovative products in the market. So the market situation is very much favorable for our business. This is the prior strength of us.
Again the total marketing and operational team we have are very much efficient. They have observed that customers have much eagerness about the terracotta product .So we are quite sure that those customers will be very interested to our product.
ü Proprietary Right
All the products and services created by us will be strictly protected by the current proprietary rights of the Bangladeshi government and will be registered under Mret Labonno as a partnership business.
PRODUCT AND SERVICES OVERVIEW
Description of the products
ü About the products
The concept of the product has come from traditional terracotta & pottery industry. But our products is different from others .So adopting the idea we found that if we work with this it will be very much attracting for our customers and thus we can get our business profit. We are offering five categories of products. Those are Terracotta Plants, Terracotta Decorative, Terracotta Ornaments, Terracotta Wall Hanging, Terracotta Vases .The characteristics and features are shown in the table below:
| Packages
Categories |
Price | Feature |
| Terracotta Plants | Low | Attractive , Durable , Easy to move, Cheaper |
| Terracotta Decorative | Moderate | Colorful, Highly Blazed, Heavy , Cheaper |
| Terracotta Ornaments | Moderate | Flexible, Cheaper, colorful. |
| Terracotta Wall Hanging | High | Rare Items, Written Literature , Solid ,Highly Glazed, Highly Blazed |
| Terracotta Vases | High | Rare Items, Heavy , Durable , Attractive |
ü Benefits
à Customer will get lucrative design & rare products.
à Every package has its special and attractive set of features.
à Customer can use physically at their personal & professional works.
à It will increase the interior beautification of the home, office & factory.
ü Proprietary Right
All the products and services created by us will be strictly protected by the current proprietary rights of the Bangladeshi Government and will be registered under legitimate of Mret Labonno as partnership business.
INDUSTRY AND MARKET PLACE ANALYSIS
ü Opportunity analysis
STRENGHT
Product variation
Distinct from competitor
Customers strongly like it
High Promotional activities
OPPORTUNITIES
Customers strongly like our product
Less numbers of competitors
Much demand for innovative products
The market for terracotta with innovative design like what we are offering has a good potential. So if we have strong product variation that no competitors have. We can design the products which are preferable for customers who like to buy. We are tending to expense on high promotional activities. Beside of fewer competitors we can create demand to the customers & that’s the opportunities around the market of terracotta industry.
ü Overcome weakness and threats;
WEAKNESSES:
Low financing
Low investment
New company in the market
Low profit because product is in the introductory phase so the promotional activities are very high therefore the cost is more than the profit.
THREATS:
Unsaturated market
Potential for new customers
Cost of core raw material (Soil) is increasing day by day which ultimately makes the cost high
Though we are going to initiate with innovative features and designs in the market and we are probably the first to do so. But there has existing in the market. We have to compete with them. And there has a threat that they can copy our designs and ideas. So we have thought to protect these threats and challenge we will be doing patent protection certificate to defense our products and designs.
ü Industry Structure and analysis
Mret Labonno falls under the terracotta industry. It is an immature industry. There has a low competition among the rivals but the products are producing by the different competitors are very much homogenous. But we think that our product is some way different from that of other competitors. That way we feel we can beat our competitors.
ü Market size and Growth
Initially we are thinking to extend our market in the Dhaka city. Analyzing and studying the market we have observed that the regular sales of Terracotta product from different producers are around 1,000 per month. Among the sales per month most of the products are bought by the upper class and upper cultural society, corporate house also use to buy for layout of the corporate office.
So analyzing all the factors we have come to a decision that the market size in the Dhaka city will be around 1, 40,000.
| Market | Target Market | Estimated market |
| Upper Class | 50,000 | 45,000 |
| Upper Cultural Class | 30,000 | 25,000 |
| Corporate House | 30,000 | 25,000 |
| Interior Designer | 30,000 | 25,000 |
| Total | 1,40,000 | 1,20,000 |
ü Competitive Environment
The market of terracotta is very much competitive in Bangladseh. There are lots of companies which are producing terracotta in Bangladesh. So in the initial stage we may have to face a competitive market. To gain a competitive plus point we think that we have to provide good quality with reasonable price. We think that our products are good in quality and also prices are reasonable.
ü Target Market
The target market of “Mret Labonno” consists of Upper class and upper cultural class, corporate houses and also link with event management to provide artifacts for rent.
The Bangladeshis are in the lookout for better and bigger houses and they want their houses to be decorated perfectly. “Mret Labonno “ provides the perfect solution in the form of ethnic terracotta products, modern products and other artifacts of clay along with the expert advice of an interior decorator.
ü Competitive Analysis
There are fewer existing brand in the market. They follow the traditional production method & elements to produce the terracotta & pottery products. Comparing to them, our production & marketing strategy will be different with them.
ü Sales Analysis
In the first year we hope the total sales will be 5,000. The forecasted sales are showing in the following table.
| Customer | Sales | Sales By Packages | Sales
By package |
Sales
By packages |
||
| Plants | Decorative items | Vases | Ornaments | Wall
Hangings |
||
| Upper Class | 800 | 500 | 150 | 50 | 50 | 50 |
| Upper Cultural Society | 1200 | 200 | 300 | 300 | 300 | 100 |
| Corporate House | 1500 | 400 | 500 | 400 | 100 | 100 |
| Interior Designer | 1500 | 300 | 600 | 250 | 50 | 300 |
ü Target market strategy
The target market of “Mret Labonno” consists of Upper class and upper cultural class, corporate houses and also link with event management to provide artifacts for rent.
The Bangladeshis are in the lookout for better and bigger houses and they want their houses to be decorated perfectly. “Mret Labonno “ provides the perfect solution in the form of ethnic terracotta products, modern products and other artifacts of clay along with the expert advice of an interior decorator.
ü Product/Service Strategy
There will be outlets in different places of Dhaka city to serve the customers. Mret Labonno will initially introduce the products that fulfill the basic need of the customer. When we will introduce more products into the product lines then some extra value added service will also be given to the customers. Then some additional products which are known as captive product will introduce into the market. The after sales service will also associated with the products. Customers will get free 1 year after sales service.
ü Pricing Strategy
So adopting the idea we found that if we work with this it will be very much attracting for our customers and thus we can get our business profit.
| Packages Categories | Price | Feature |
| Terracotta Plants | Low | Attractive , Durable , Easy to move, Cheaper |
| Terracotta Decorative | Moderate | Colorful, Highly Blazed, Heavy , Cheaper |
| Terracotta Ornaments | Moderate | Flexible, Cheaper, colorful. |
| Terracotta Wall Hanging | High | Rare Items, Written Literature , Solid ,Highly Glazed, Highly Blazed |
| Terracotta Vases | High | Rare Items, Heavy , Durable , Attractive |
ü Communication Strategy
We have planned to apply our promotional strategies in different time. Because this is new product customers are not alert of this product. We will also use outdoor advertising. So, to create awareness among the people it requires taking large scale of promotional activity. For his industry newspaper ads, word of mouth, and web sites are most appropriate. We have decided to take such type of promotional effort. Now a day in our country magazines and television is a very popular media of marketing. We will go also for this type of promotional strategy.
The first month we will give more emphasis on informing the people. Second stage we will let the customers for trial use. Then we will take convincing activities. We will use Media advertising, outdoor advertising in promotional strategy which is describing elaborately in the following.
Brand name: “Mret Labonno”
Logo :
Slogan : Mret Labonne Shadhon Lalito
v Promotional activity
For the promotional activity We have chosen some specific tools to use. We will use those tools in different time.
ü Advertising
We will give more emphasis on newspaper. We will use different media for advertisement. Television, Magazines, Newspaper, and Billboard will be used simultaneously. We will use two sided message in our advertisement. We will use anticlimax order in presenting our message to the target audience. We think that the people who are more educated will buy the product.
ü Public Relation
Public relations are any purposeful communications between an organization and its publics aim to generate goodwill. This is a non paid promotional tool in marketing process. For the new type of product, publicity is ultimately needed. When any organization or any company come up with new product, idea or service, this news automatically come in newspaper. This is called publicity.
ü Sales promotion
Short term incentives taken to increase the sales are called sales promotion. We will contract with different dealer and announce some discount of cash for them only. We will also have collaboration with hospitals.
Gantt chart:
| July | August | September | October | |
| Newspaper | 30 | 30 | 25 | 25 |
| Magazine | 10 | 10 | 15 | 10 |
| TV | 25 | 25 | 25 | 25 |
| Internet | 10 | 10 | 10 | 5 |
Channel Strategy
WE will contract with different outlets of different market to sell the product. There will also company’s own stall in some selected market. The company will outsource the logistic support to deliver the products to the final customer.
Marketing Channel for delivering the product
ü Sales Strategy
Our strategy for sales will be personal selling. TV infomercials will be delivered continuously to enhance the sales. Customers will come to different stalls and buy the desired product. After sales service will be given the customer to enhance the sales. Each of the customers will be supported by a service card by showing which they will get the free service after sales when they faces problem. A sales team will also be formed to control the sales activity of the company.
operation plan
ü Corporate Strategy
The major features of “Mret Labonno” are: –
– The showroom will provide an exclusive variety of both modern and ethnic artifacts in soil & clay.
– The showroom ambiance will be concentrated upon and the showroom will resemble a traditional Bangladeshi rural hut from the interior which is decorated with the artifacts.
– The customers can also place special orders and the in-house artisans will be consulted for that.
– The customers are assured with after-sales service which will be provided at their residence or office every six months.
– The in-house interior decorator would see the customer’s residence or office and suggest appropriate artifacts.
– There will also be pottery class for people who would like to pursue it as a hobby and also it is open for children on weekends.
– There will be direct link with rural potters for procuring special clay artifacts.
– There will also be link with event management organization to rent the pots for the events they organize.
ü Location & Layout
| Area
(acr) |
Employees | Supplier | Raw Materials | |
| Factory | ||||
| 1. Savar | 3 | 100 | Location | Etel Soil |
| 2. 2. Gazipur | 6 | 150 | Sri Birandro
Pottery House |
Dowash Soil |
| Total | 9 acr | 250 | 2 Suppliers | 2 kinds of raw material |
ü Production Process
| Activity/ Production Process | Machinery / Technologies | Time Frame |
| Collecting Clay / Soil | X | 5 day |
| Filling Soils | X | 2 days |
| Dry Soil | X | 1 days |
| Make a frame of product | ? | 3 days |
| Drying Process | X | 1 days |
| Firing. | ? | 7 days |
| Glaze | ? | 2 days |
| Color | ? | 2 days |
ü Photos of Production Process
Organizational Hierarchy :
ü Key role
• INTERPERSONAL ROLES
– FIGUREHEAD
– LEADER
– LIAISON
• INFORMATIONAL ROLES
– MONITOR
– DISSEMINATOR
– SPOKESPERSON
• DECISIONAL ROLES
– INNOVATOR / ENTREPRENEUR (PLANNER)
– DISTURBANCE HANDLER (CRISIS MANAGER)
– RESOURCE ALLOCATOR (SLICING-THE-PIE)
– NEGOTIATOR (BARGAINER)
Financial plan
ü Capitalization Plan
Capital required
Primarily to establish the production the firm required 21,55,000 taka where the start up cost is 9, 75,000 taka and operating cost is 11,80,000 taka.
Start-up cost
The start up cost of the business is that needed initially to start the business. To start the business there are some fixed asset is required. These are:
Description |
Amount |
Equipment and machinery |
80,000 |
Land and building |
3, 00,000 |
| Furniture and fixtures |
50,000 |
| Other fixed cost |
50,000 |
| Working Capital |
30,000 |
| Computer |
60,000 |
| Office room decoration |
25,000 |
| Other costs and services |
30,000 |
| Factory Van |
3, 50,000 |
Total Fixed cost / Start up cost |
9.75,000 |
ü Operating cost
To operate the businesses there are some operating cost. Total operating cost for the company is 11, 80,000.
| Description | Amount |
| Raw Materials | 1,00,000 |
| Office rent (Annual) | 3,00,000 |
| Wages and Salary | 2,00,000 |
| Marketing expenses | 3,00,000 |
| Utilities | 1,00,000 |
| Operating inventory | 80,000 |
| Other factory overheads | 1,00,000 |
| Total Operating cost | 11,80,000 |
ü Capital sources
To form the business financial stability is very much needed. The capital may collect from various sources. These are –
Cash capital
The cash capital of the business will be 60 % of total capital that. Rest of the amount will be collect from financial institutes.
Credit capital
The company will manage 30% credit capital from raw materials suppliers.
Debit capital
The company will collect 10 % of the total amount from the financial institution as debt capital at the rate of 10%.
Financial Projection
Financial projections of first four months of Mret Labonno Products are in below and based on this WE made its one year financial projection.
ü Income Statement
Description 4 months One Year
Sales (100%) 2, 50,000 7, 50,000
(-) COGS (30%) 75,000 2,25,000
Gross Profit (70%) 1, 75,000 5, 25,000
(-) Fixed Factory OH (15%) 26,250 78,750
(-) Selling and Adm exps (20%) 35,000 1, 05,000
(-) Other Exps (5%) 8,750 26,250
Net Profit (40%) 1, 05,000 3, 15,000
ü Funding:
In order to open ‘Mret Labonno”, our management has determined that capitalization of 1600000 will be required. These funds will be allocated as follows:
| Description | Amount |
| Equipment & Fixtures | 4,00,000 |
| Installation and make ready | 2,00,000 |
| Advertising & Promotion | 3,00,000 |
| Deposits and initial start-up costs | 1,00,000 |
| Contingency | 50,000 |
| Operating Reserve | 1,30,000 |
| Total | 11,80,000 |
Equipment & Fixtures are listed in the schedule on the following page. Our Business Plan anticipates that capitalization will be funded as follows:
| Description | Amount |
| Proprietors’ Equity | 12,93,000 |
| Borrowed Capital | 8,62,000 |
| Total | 21,55,000 |
ü CONCLUSION
Performance of a new firm in industry is always hopeful in the traditional history of terracotta industry in Bangladesh. Mret Labonno is one of the firms in the new beginning of 2010. Not to maximize our profit in the short term, we will focus on customer need & satisfaction in this period. We hope we will provide our product will serve better in future in Dhaka city & also outside the capital. We have a dynamic plan to enter in the overseas market after 3 years.
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