Term Papaer Business Plan Group 6
Term Papaer Business Plan Group 6
Term Papaer Business Plan Group 6
“Business Plan”
Submitted to
Assistant Professor
Md. Ahasan Uddin
Faculty of Business Administration
Bangladesh University of Professionals
Submitted by
Name ID
Adiba Kabir B16231017
Ahnaf Allavi B16231047
Anik Paul Akash B16231021
Syed Rakibul Hasan B16231073
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Business Plan on “Revival of Cottage Industry”
RENESA
“Let’s Grow Together”
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Letter of Transmittal
Assistant Professor
Sir,
This is a great honor for me to present our business plan on “Revival of cottage industry”
authorized under your supervision. The reports endeavors to analyze the learnings and
experiences of our past 5 months-entrepreneurship course.
We are eagerly thankful for your kind support for the preparation of this business plan and
we hope that we would be able to live up to your expectations regarding the quality of
the paper. We have tried to put our best effort for the preparation of this report. Yet if any
shortcomings arise, it will be our pleasure to answer any clarification and suggestion
regarding this report.
Sincerely Yours
Adiba Kabir
Business Undergraduate
BBA 2016 (A)
BUP
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STATEMENT OF AUTHORSHIP
We hereby declare that we are the authors of this Term paper and that we have not
used any sources other than those listed in the bibliography and identified as references.
We further declare that we have not submitted this paper at any other institution.
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ACKNOWLEDGEMENT
At the very outset, we are very much thankful to Almighty Allah for giving us the
strength, courage and ability to accomplish the research program as well as the
term paper report in a scheduled time in spite of various complications. It gives us
immense pleasure to thank a large number of individuals for their cordial
cooperation and encouragement which has contributed directly or indirectly in
preparing this report. First of all, we would like to express my gratitude to my
supervisor Assistant Professor Md. Ahasan Uddin for her guidance and feedback
which made everything clear to me to complete this report. At first, we were so
confused that whether we would be able to make a fruitful report but with his
assistance, we found a way to do everything immaculately and in time. It’s been
possible for me to make the report as impeccable as possible.
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CERTIFICATE OF SUPERVISION
This is to certify that Adiba Kabir, Anik Paul Akash, Syed Rakibul Hasan and Ahnaf
Allavi have worked under my supervision in preparing the term paper. This paper
is prepared with sincerity and dedication and carried out with effort by this
team.
Supervisor
FBS, BUP
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Contents
1.0 Executive Summary ................................................................................................................................. 9
2.0 Company description ............................................................................................................................ 10
2.1 Company description ........................................................................................................................ 10
2.2 Company History ............................................................................................................................... 10
2.3 Mission Statement, Vision and tagline ............................................................................................. 10
2.4 Current Company Status ................................................................................................................... 11
2.5 Products and services ....................................................................................................................... 11
2.6 Legal status and ownership .............................................................................................................. 11
2.7Key Partners: ...................................................................................................................................... 12
3.0 Industry analysis.................................................................................................................................... 12
3.1 Industry Size, Growth Rate, and Sales Projections: .......................................................................... 12
3.2 Industry Structure: ............................................................................................................................ 14
3.3 Key Success Factors:.......................................................................................................................... 15
3.4 Highlighting Industry Analysis: .......................................................................................................... 15
4.0 Market analysis ..................................................................................................................................... 18
4.1 Market size ........................................................................................................................................ 18
4.2 Target market selection and customer segment .............................................................................. 18
4.3 Buyers Behavior ................................................................................................................................ 19
4.4 Competitor Analysis .......................................................................................................................... 19
5.0 Marketing Plan ...................................................................................................................................... 20
5.1 Overall marketing strategy ............................................................................................................... 20
5.2 Marketing mix ................................................................................................................................... 21
6.0 Management team and company structure ......................................................................................... 22
6.1 Management Team ........................................................................................................................... 22
6.2 Board of advisors .............................................................................................................................. 22
6.3 Board of directors ............................................................................................................................. 22
6.4 Company Structure ........................................................................................................................... 23
7.0 Operation plan ...................................................................................................................................... 24
7.1 General Approach to operations ...................................................................................................... 24
7.2 Business Location .............................................................................................................................. 24
7.3 Facilities and Equipment ................................................................................................................... 24
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8.0 Design and development plan .............................................................................................................. 25
8.1 Development status and task ........................................................................................................... 25
8.2 Challenges and risk ........................................................................................................................... 25
8.3 Property issues .................................................................................................................................. 25
9.0 Financial Projection ............................................................................................................................... 26
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1.0 Executive Summary
The most of the time people talk about the poverty and unemployment problem of Bangladesh.
Several measures have failed to do anything. Survey shows that people like artisan. craftsman in
the villages among them are great in numbers. The prime cause of their not having source of
earning money is not education it is lack of platform to sell their products. People does not have
any idea about these cottage products. On top of that the money lender to whom they are debtors
take the advantage of their not having money to buy materials to produce product by charging
them high interest. So a reasonable and good platform is needed to sell their products and make it
known to both inside and outside of the country. Research have also stated that the natural
resource is not being used as expected.
The cottage products are the symbol of our long-lost tradition. Besides that, the materials used
are eco –friendly and does not need machineries or require high capital investment and
infrastructure. All that is needed is training and short term financial support and mass media
marketing to promote these products. Renessa, our business is such of a kind. It is an online
merchandising company which in collaboration with IT is creating a platform for the poor
fellows to sell their products in the global arena, creating potential market for them and ensuring
the proper use of eco –friendly natural resources.
The company aims at increasing the boom in cottage sector. The collaboration of suppliers who
are basically the poor village artisan and cottage product makers who are getting loan and
training and marketing benefit working with the company thus a significant reduction in
unemployment in rural arena. The suppliers will have to pay a very little amount of interest
which is 1% only. The other revenue drivers are the online selling of the products. Currently the
market size is small but it has an opportunity in future that it will have a huge expansion which
the industry growth is telling.
The customer reach is easy as it is an online platform. The unique and fashionable products are
certainly going to attract the customer. As the price is cheap so anybody can be the buyer of the
product basically the youth who have sense of art and culture. Easy payment method system is
in it creating high possibilities and the return policy making it more convenient. The scale of the
business is very small but since after covering the fixed cost, the expenses per unit of service is
negligible, thus it ensures a sufficient contribution margin for the feasibility of the business.
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2.0 Company description
The vision is to create potential market and export destination for traditional and cottage related
product with association of removing the poverty. The tagline is “Let us grow together”
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2.4 Current Company Status
Renessa was established in June 15,2018 with head office located in Motijhil commercial area.
Currently it has 4 offices or hubs in Dhaka for inventory management located in four important
places of the capital city which are Dhanmondi , Mirpur , Uttara , Gulshan, . Also the company
has a future plan of establishing 7 more hubs in outside Dhaka. Besides that, the company owns
two showrooms in Gulshan and uttra for attracting customer and product display. Since sourcing,
manufacturing, and selling out of Rakib’s basement to friends, family, and through local retailers,
the company has grown to have its own online store, relationships with suppliers (artisan and crafts
maker) of Gazipur ,Norshingdi ,Chittagong .
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2.7Key Partners:
The key partners are the suppliers who are the artisan and craft makers from whom we get the
products. Also government and its cottage industry control authority BISIC who will give the
company employees and suppliers 360-degree marketing support, technical assistance, financial
support as well. The law firm called KM Hasan advocacy firm will give legal assistance to the
company. Also kashem & Rafiq CA firm which will give us the auditory help.
Cottage Industry is the traditional artisanship of the rural people of Bangladesh, who produce
various household items with locally available raw materials and artistic skills inherited from
their ancestors. Cottage industry are primarily handicrafts, artistic work in wood and metal,
amateur artworks and rural artistry. Traditionally, cottage industries have been rural-based, but in
course of time and with technological advancements, they spread to urban areas to avail of
transport and marketing facilities and financial support from investment sources. The area of
cottage industries has now broadened astonishingly from simple indigenous technology based
and home-made products to sophisticated handicrafts of wide varieties.
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Bangladesh’s e-commerce sector is expected to grow 70 per cent in 2017 as the rollout of 3G
internet 3-4 years back led to rapid adoption of online shopping.
The size of Bangladesh’s e-commerce market is estimated to be $110-115 million ( around Tk
900 crore ) this year, growing from $65-70 million in 2016, said the report referring to RedSeer
Consulting. The e-commerce size is still is a mere 0.7 per cent of the country’s total retail
market.
Rocket internet-backed online marketplace Daraz, Foxconn-backed e-retailer Pickaboo,
Bagdoom and Chaldal are among the leading startups in the country.
Internet penetration to 40 per cent of Bangladesh’s 165-million population has bolstered the
growth of local e-commerce, F-commerce (merchants conducting online business through
facebook pages) and e-grocery startups.
The size of Bangladesh’s e-grocery market is much smaller at $4-5 million, or about 0.03 per
cent of the country’s overall grocery market. Even so, analysts are predicting that Bangladesh’s
e-commerce market will surge to $20 billion by 2020 according to Goldman Sachs.
But as we go on projecting the sales for this very business we see insignificant market threats as
a result of lacking existing competitors in the market to sell the same class products. But we can
also assume that growing number of market competitors might affect the sales growth in coming
years. An assumed sales projection chart of 3 year tenure is shown:
Growth Rate
3.5
2.5
1.5
0.5
0
0 0.5 1 1.5 2 2.5 3 3.5
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3.2 Industry Structure:
A. Business to Consumers (B2C):
B2C Stands for business to Consumer as the name suggests, it is the model taking businesses and
consumers interaction. Online Business sells to individuals. The basic concept of this model is to
sell the product online to the consumers. B2C or Business to Consumer has lately gained a big
popularity due to simplified and accelerated way to buy products. B2C is the indirect trade between
the company and consumers. It provides direct selling through online. For example: if someone
want to sell goods and services to customer so that anybody can purchase any products directly
from supplier’s website. Directly interact with the customers is the main difference with other
business model. As B2B it manages directly relationship with consumers, B2C Supply chains
normally deal with business that are related to the customer.
B2B Stands for Business To Business. It Consists of the largest form of Ecommerce. This model
defines that buyer And seller are two different entities. It is similar to manufacturer issuing goods
to the retailer or wholesaler. Dell Deals computers and other associated accessories online but it is
does not make up all those products. So, in govern to deal those products, first step is to purchases
them from unlike businesses i.e. the producers of those products.
C2C Stands for Consumer To Consumer. Consumer to Consumer (C2C) or (Citizen To citizen)
electronic commerce involves the electronically facilitated transactions between consumers
through some third party. A common example is the online auction, in which a consumer posts an
item for sale and other consumers bid to purchase it; the third Party generally charges a flat fee or
commission. The Sites are only intermediaries, just there to match consumers. They do not have
to check quality of the products being offered. It helps the online dealing of goods or services
among people. Though there is no major parties needed but the parties will not fulfill the
transaction without the program which is supplied by the online market dealer.
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D. Peer to Peer (P2P):
It is a discipline that deal itself which assists people to instantly shares related computer files and
computer sources without having to interact with central webserver. Peer to Peer is sometimes
unified with e-commerce type C2C Because of the same parties participating in the transaction.
Though it is distinguished by the process itself.P2P is not only an e-commerce type but also a
technology that allows people to share computer files and computer resources without going
through a central webserver. The required software should be installed by both sides so that they
can communicate on the common platform. As from the beginning this type of e-Commerce has
been launched to the free usage, it has quite low revenue. It consists in mutual help of consumers.
This model of transaction often entangles cyber laws. The transactions without the program which
is supplied by the online market dealer.
Political factors:
While the threats may not be the same before the e-retailers as the physical retailers, still there
are several political hurdles before them. There are several risk factors affecting the e-businesses.
Several news reports highlight how Red Tape in Bangladesh can become major difficulty in the
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way of new businesses trying to extend their presence here. The political and regulatory
challenges before the e-businesses have kept rising. Political issues are not limited to just those
discussed above but there are many more. Political stability in most regions of the world leads to
economic stability. Political chaos can result to disruption of business both online and physical.
Overall, political issues can have a significant impact on ecommerce and its growth.
Economic factors:
Economic factors are very significant in terms of businesses. Whether it is an online business or
in the area of e-retail, economic factors can have a significant effect. It is because economic
factors are directly related to business and their effect is also direct on business revenue and
profits. During the period of recession, spending had decreased people had adopted cost cutting
measures as the level of economic activity and employment gone down. During such periods
when economic activity has gone down, the profits and revenue of businesses can go down. E-
businesses too cannot remain unaffected. Economic fluctuations since the recession have also
kept affecting businesses from time to time since the recession. In developing economy like
Bangladesh, these economic fluctuations affected both global and local businesses. Now that the
recession has passed and economic activity has returned on track, the ecommerce industry has
flourished in the recent years. Higher economic activity means faster growth and higher revenue
for the Ecommerce industry whereas lower economic activity means just its opposite. In this
way, economic factors can have a direct and deep impact in the ecommerce industry of this
country.
Social factors:
Socio cultural factors too have a deep impact in ecommerce industry. Most importantly e-retail
brands find it the easiest to flourish locally. Growth in foreign markets can be full of challenges,
as a result of unique specification of products. Changing trends can also have an impact on
businesses. The growing use of mobile technology has affected ecommerce. In most societies the
mobile technology has been very popular and a larger number of people worldwide are now
using mobile gadgets for shopping and other purposes. Socio cultural factors affect businesses in
other ways too. Cultural factors have an impact on how these ecommerce businesses market
themselves. In several societies of the world ecommerce is still seen as a sign of Westernization
due to which it has seen low growth in these areas.
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Technological:
Technological factors are very important in the context of the ecommerce industry. It is because
the industry relies heavily on technology. Everything is based on technology in e-retail from
sales to customer service. All the ecommerce brands are in a race to be technologically ahead of
their competitors. From Daraz to Pathao and Bikroy.com, every brand is investing a lot in
technology to find faster growth. Technology decides several things in the ecommerce world
from popularity to profits. The reason that Amazon is ahead of the others is because it is
technologically ahead of the others. It has managed its customer experience so well that its
popularity is very high. In this way, technology is a major influence on businesses and in case of
ecommerce technological factors acquire a very special importance.
Environmental:
Environmental factors too have a special importance in the context of Ecommerce industry.
While the direct environmental impact of this industry is very low and nearly zero, it still focuses
heavily on sustainability. Brands like Amazon have invested heavily in technology. Even in
Ecommerce there are several areas where investing in sustainability can be highly productive.
From sustainable packaging to waste reduction and renewable energy there are several areas
where the e-retailers can invest in sustainability. Amazon has invested in renewable energy to
gain freedom from the use of non-renewable energy resources.
Legal:
Legal compliance is just as important for the businesses globally. Any tussle with the law can be
a costly affair and even the e-retail brands can become a target unless they take care of
compliance. It is why the big E-retail brands have separate teams to take care of the legal issues.
Noncompliance can result in financial losses as well as loss of image and reputation. From labor
laws to sustainability laws, there are several areas where the e-retail brands have to be careful
regarding compliance. Moreover, these laws differ from nation to nation and market to market
and compliance in every area is important. So, in case of the companies operating in countries
like bangladesh law can lead to major pressures and an increase in operational costs. The e-retail
brands also have to be careful about the applicable laws and compliance.
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4.0 Market analysis
Fashion Forward with a keen eye on their day to day wear, these male and female
fashionistas dress to impress
Addicted to Mobile they Instagram their food, check their Facebook status while waiting
in line, and tweet every traffic disruption they experience.
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4.3 Buyers Behavior
However, when it comes to consumer behavior and trends most cottage products purchaser value
t citing the reason over its brand name. Interestingly enough though, 73 percent prefer to purchase
the same brand as the one they own with men showing more loyalty at 64 percent than women at
45 percent.
Going deeper into the growing level of awareness around environmental sustainability and climate
change, the cottage Incorporated 2013 Environment Survey found that 51 percent of consumers
say that environmentally friendliness is important to their purchase decisions. Digging a little
further, about 33 percent are actually more likely to seek out environmentally products for
themselves.
When it comes to the material of their products though, nearly 72 percent of survey respondents
say that natural raw materials used for production are better for the environment than synthetics,
with 51 percent of consumers willing to pay more for them. Such trends are driving global brands
like Gucci, Timberland, and others to focus.
Our strengths are new innovative designs and untapped market. Weakness are the customer’s
loyalty to other brands. Our opportunity to expand the business and innovate new product is huge.
Other new entrants threat our existence by copying our designs.
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5.0 Marketing Plan
For the marketing of the products as it is not well known the marketing is a big challenge for them.
For marketing the company will follow two marketing strategy both online and offline. As we are
getting government full fledge support so our first strategy is to arrange exhibitions to promote our
product in various national event liker SME fair and showrooms for offline selling. The online or
the internet world are the biggest arena to promote or to reach our customer. The online and offline
marketing things are stated below.
SEO: Our content and blogging efforts will be targeted at having us rank competitively for
keywords like “long lost culture”, “tradition”, and “eco-friendly products”.
Paid Search: We will invest in both Google Adwords and Facebook Ads to take advantage
of their PPC services with optimized landing pages for conversion.
TV Advertising Renessa for being the largest online business in terms of selling cottage
products has using the concept of TV advertising from the very beginning of its journey.
TV ads has become on the most important and vital way of communicating with the
different guys from different sectors. It has potential market in Bangladesh and that’s why
it’s still working better.
Billboard: Renessa uses the painted billboard on that it can easily have to public access to
share what actually this company is doing. It’s a huge opportunity for them to make them
different in the market through the strategy of billboard selection.
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Facebook: Now a day’s not only personal branding but also for organizational perspective
Facebook has been using worldwide. For this reason, Renessa also uses Facebook to reach
its target customers as its online selling website where everyone can get all sorts of services
like selling and purchasing anything. Renessa took Facebook as a potential source of
sharing information and captures the market of the young generation.
Radio Ads: In our country almost 73% mobile phone has radio accessibility and 34% use
the utility of Radio. So Renessa uses the Radio ads strategy to reach the customers because
it’s another easiest way to reach the customers.
YouTube: Most of consumers in our country are using YouTube for their different
purposes and Renessa is getting the real test from its marketing strategy.
Mobile Marketing Advertising: Renessa has been using this marketing strategy to capture
the market and information their offerings to the mass people. Those who have internet
access and who is willing to buy something is the target customer of Renessa
Networking: An extremely important way to promote your website is through networking.
Renessa has been trying to build strong network among the country and create good image
in the market.
PR: We will promote our story, values, and fashion to leading fashion blogs and print
magazines emphasizing our earth-friendly and ethically manufactured clothing
Business Development: We will actively look for the most popular local fashion boutiques
frequented by our target market that shares in our values and beliefs.
Promotions: The service will be promoted though our app and digital marketing and will be
promoted as a flexible and compatible product for user.
Distribution: For distribution and smooth reaching of the customer there will be both online and
offline distribution.
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6.0 Management team and company structure
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6.4 Company Structure
Chairman
CEO
CFO
Head-
MD R&D Head
Marketing
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7.0 Operation plan
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8.0 Design and development plan
Patent- The application we will give is to be protected and the administration is to be limited to
be duplicated by different associations.
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9.0 Financial Projection
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Forecasted Balance Sheet
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Forecasted cash flow statement
Pro Forma Cash Flow
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