Executive Summary

A Business Plan is any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities. A Business Plan is a formal statement of a set of business goals, the reasons they are believed attainable, and the plan for reaching those goals. Unfortunately, many people think of business plans only for starting a new business or applying for business loans. But they are also vital for running a business, whether or not the business needs new loans or new investments. Businesses need plans to optimize growth and development according to priorities. It may also contain background information about the organization or team attempting to reach those goals. Business plans may also target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their annual return in that timeframe. In our term paper we tried to develop a new business plan for our own company named E&S Bazaar and we planned for selling the existing product by our supermarket shop. If we will success in this market then we will go for the further expansion. We analyzed all possible sources to start a business. We analyze market segmentation, financial analysis, market analysis, our mission, vision and so on. Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers. What we discussed in the detail of our plan. Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business Plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans.

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1. Introduction

1.1 Origin We were assigned this report by our respected Instructor of the BUS101 course Ms.Farzana Huda. We were given adequate instructions for this report and were asked to prepare and submit the report by 21st November 2012.

1.2 Objective The objective of this report is to create a business plan of a specific product and to determine project its viability. This empirical study is intended to understand the market and customers reaction to the product along with to practice the theoretical knowledge that has been taught throughout the course. The focus of this report therefore is limited to the practices and activities of the Business course with emphasis in the selected company.

1.3 Scope Scope of the report lays on the business plan of E&S Bazaar a company that will be involved in selling the existing product by this supermarket called E&S Bazaar. This report describes industry analysis, production plan, marketing plan, organizational structure, risk assessment and financial plan along with how marketing strategies will be formed for the service, their implementation and effectiveness. It also includes financial analysis of the marketing strategies of the specified products. A supermarket business enterprise is a large, very complex structure, involving many component entities: i. ii. iii. iv. v. An array of repeat customers grouped in various local areas. A chain of retail stores Various transportation systems A set of warehouse distribution centers. An array of product suppliers under contract
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1.4 Sources and Methods of Data Collection For the nature of the term paper, the data used in this report were collected from secondary sources and largely form assumptions. Additionally two successful entrepreneurs were informally interviewed with the aim to extract their knowledge and experience regarding starting up a new business. 1.5 Limitations Time constrain was the main limitation of the report along with the fact that the people doing the report are in the novice stage of preparing such business plan.

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E&S Bazaar 323 Satmasjid Roads, Dhanmondi-1205 Phone: 02-933-5387 www.esbazaar.com.bd

2. Owners of the Company

MD.Jasimuddin (Emon) Sazzad Hossain khan. Farisha Osman Shabda Shahina Akter 2.1 Description of Business E&S Bazaar is a Supermarket that provides a service. A Supermarket is a large form of the traditional grocery store, is a self-service shop offering a wide variety of food and household products, organized into aisles. It does not produce a physical product of its own in the usual sense. Instead, it adds value by acquiring existing products from remotely-located suppliers, assembling them in regional warehouses, distributing them to local stores, and finally selling the suppliers products to local customers. Figure 2.1 shows the general flow of stock from suppliers, through the supermarket business to local customers.

Figure 2.1 Supermarket Business

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Thus, supermarket is nothing but a retail organization providing food and household articles to consumer under one roof without any kind of sales pressure from salesmen and sale assistants. It is larger in size and has a wider selection than a traditional grocery store, but is smaller and more limited in the range of merchandise than a hypermarket or big-box shop. E&S Bazaar typically comprises meat, fresh produce, dairy, and baked goods aisles, along with shelf space reserved for canned and packaged goods as well as for various nonfood items such as household cleaners, pharmacy products and pet supplies also a variety of other household products that are consumed regularly, such as medicine, clothes, cosmetics and non-food products and so on. Our supermarket occupies a large amount of floor space, usually on a single level. It is situated on a residential area in order to be convenient to consumers. The basic appeal is the availability of a broad selection of goods under a single roof, at relatively low prices. Other advantages include ease of parking and frequently the convenience of shopping hours that extend far into the evening or even 24 hours a day.

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2.2 Financing
Initial investment is 50,000,000 BDT; which the owners will bear in an equal proportion. This investment covers Shop space, equipments, campaign cost, advertisement and other preliminary costs. The project will experience cash inflow within one month of operation. 2.3 Company Profile Company Name: E&S Bazaar Limited Business Type: Supermarket Main products: FMCG (Fast moving consumer goods, Fashion, Food, Electronics) Address: 113/A, Shaheed Tajuddin Ahmed Avenue, Tejgaon, Dhaka Date of Establishment: 20th Dec 2012 Initial investment: 50 Million taka only. Number of Employee: 15 employees

3. The Management Team of the Firm

E & S Hypermarket Ltd is an absolute dream of five students with experiences. The maximum experience of the team is described below: Md. Jasimuddin (Emon): - He has completed BBA from East West University. He is very experienced one in the field of administration. He is in charge of managing the business and managing the fund for the business.

Sazzad Hossain Khan: - He has completed BBA from East West University. She has done a short course of computer. He is in charge of Marketing . Ms. Farisha Osman Shabda: He has completed his M.A in English literature from Shanto Marium Creative Technology & MBA with major in HRM from Atish Dipankar University of Science & Technology. He is in charge of HR & Administration. Ms. Shahina Akter : He has completed B.A and M.A from East West University. He is in the charge of Financing.
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4. Short-term Plan of this Firm

1. To take a place in the present market. 2. To expand the business all over the country. 3. To make more profit and contribute in the National economy. 5. To reach the product close to the general people

5. Influencing Factors in Price and Demand

Marketing: Efficient marketing supply will influence price and demand. Price: Reasonable price will influence demand.

6. Special Encouraging Services

1. We have decided to arrange coupon among the consumers. 2. We have decided to give a Basket as a discount to keep it on any things freely.

7. Economic Features of the Service

In analyzing the Easy Life as a company and the service it will provide as a Big Hypermarket in Bangladesh, its factors in profiling the economic features are fairly standard and given as follows: i. ii. iii. iv. v. Market Size Market Growth Rate Entry/Exit barriers Cost & Importance of the Service Capital Requirement -Large market -High -Low -More important but less expensive -High

8. Market Summary
We have more clear and specific information about the market and we are aware of the customer demand and choices. Based on our Research and Development department we are strictly determined to serve our customer needs and wants with a variety of products by our E&S Baazar. We are going to decorate our supermarket for four groups of people. They have shown graphically below:

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Kid Mature Young Old

Figure 1.2: Age

Segmentation

9. Market Segmentation
Our market segmentation based on 3-C theory, Change and Confidence among the entire population is leading to rise in Consumption. E&S Bazaar has divided Bangladesh into three segments:
1. Bangladesh one: Consuming class which includes upper middle and lower middle

class (14% of Bangladeshs population).

2. Bangladesh two: Serving class which includes people like drivers, household helps,

office peons, liftmen, washer men, etc. (55% of Bangladeshs population) and
3. Bangladesh three: Struggling class (remaining 31% of Bangladeshs population).

While E & S Bazaar is targeted at the population across Bangladesh one and Bangladesh two segments, Aadhaar Wholesale is aimed at reaching the population in Bangladesh three segment. With this, Future Group emerged as a retail destination for consumers across all classes in the Bangladeshi society.

9.1 Geographic i. ii. Our immediate geographic market will be Dhaka city with a population of around 1.5 Lac. Our total targeted area population estimated about 3 Lac.
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9.2 Demographic i. ii. Male & Female. Generation kids, young, matured people and old people

We know the following regarding the profile of the typical resident of Dhaka City i. ii. iii. iv. 8% children 15% mature 55% young and 22% of the old people.

9.3 Psychographic i. ii. Social class: Lower Class, Middle Class, Upper Middle Class, Upper Class Life style: Achiever.

9.4 Behavioral i. Benefits : Quality

10. Market Needs

Our marketing research department found the opportunity to provide our customers a satisfaction through this giant supermarket. This industry already contains a wide range of supermarket services. However, we found that there is no supermarket like ours because we are going to establish a very giant supermarket with all most all types of product. Our marketing research department surveyed the market and found that there potential buyers for our product which will satisfy their needs. Therefore, we have the opportunity to enter the market and fulfill the gap. We are going to offer products at low prices by reducing economic margins.

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11. Marketing Strategy Our marketing strategy is based on becoming the potential choice for consumers in the soft drink market. Our marketing strategy is based on superior performance in the following areas-

i. ii. iii.

Product quality. Product price. Product Availability.

12. Vision & Mission Statements 12.1 Vision To be the market leader in Supermarket sector excelling in product quality, social, technical & marketing creativity & service to our consumers through skill and cordial commitment of our employees. 12.2 Mission Our mission is making the products available in the shop with a very competitive price so that customer can get complete satisfaction by consuming the product. We want to spread our store through the whole country and reach each consumer. 12.3 Values & Principles The E&S Bazaar Ltds Principles are at the basis of our companys culture, which we are trying to develop with our valuable employee as well with our customer. E&S Bazaar is committed to the following Business Principles taking into account local legislation, cultural and religious practices: 12.3.1. Quality Assurance and Product Safety: Everywhere in the Country, the E&S Bazaar name represents a promise to the consumer that the product is safe and of high standard.

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12.3.2. Consumer Communication: We are committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. We respect consumer privacy. 12.3.3. Safety and Health at Work: We are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. 12.3.4. Supplier and Customer Relations: We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable standards 12.3.5. Environmental Sustainability: We commit ourselves to environmentally sustainable business practices. We strive to use natural resources efficiently, favor the use of sustainably-managed renewable resources, and target zero waste.

13. Financial Highlights

13.1 Sales Forecast The sales forecast is broken down into the three main revenue streams; direct sales, Web sales, consignment sales. The sale forecast for the upcoming year is based on 30% growth rate. Growth rate for year 2012 to 2015 are based on percentage increases as follows: i. ii. iii. Direct sales 20% growth rate per year Web sales 50% growth rate per year. Consignment sales 20% growth rate year.

13.2 Expense Forecast Marketing expenses are to be budgeted at approximately 8% of the total sales. Expenses are tracked in the major marketing categories of television advertisements, newspaper

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advertisement, the newsletter and postcard mailing, web marketing support, printed promotional materials, public relations, and other.

14. Key Success Factors The success in the beverage industry, like in any other business, does not come overnight. It entails a long-term investment of both finances and effort. In addition to this, research also plays a vital role in making the business work. One can learn a lot from the contributory factors of successful predecessors in this industry when planning to venture into the beverage industry. Consumer Knowledge Knowing the consumer has been a constantly repeated concept. It may sound like a clich, but in reality consumer knowledge is vital in any starting business. If one does not know what kind of consumer one wish to cater to then marketing a product would be more difficult? Knowing ones consumer demographics is vital at the onset. Keeping in mind the financial capability of the consumer to purchase your product would ensure your stay in the market. Research and Analysis Most people think that consumer knowledge is the sole factor that a business requires. In truth, consumer knowledge is just part of a bigger picture. Conducting market research and analysis is just as important. An efficient analysis of this research would also prove to be advantageous. For example, an initial research on the source of your materials is a requirement. Having knowledge of a supplier that sells cheap materials may not be enough because this might affect the reputation of your goods on the market. On the one hand, cheap materials may mean that can produce a large volume of goods at a minimum cost. On the other hand, the goods that are produced may be of poor quality. Through research, we can also make the necessary adjustments needed in our business. In the end; research can affect the longevity of our stay in business. Having a Goal and Achieving It
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A goal must be set for any endeavor to be successful. Without a goal, the efforts put into place would be useless. This situation is similar to a race wherein the finish line is unknown to the runners. The beverage industry is a believer in this because it sets a particular goal for its business right at the start. The industry did this so that it knew whether it was achieving something or not. Having plans and goals and meeting these proposed plans and goals helped the beverage industry in competing with other products available on the market.

15. Goals and Objectives

15.1 Marketing Objectives The marketing objectives of the company for the product are as follows. i. ii. iii. Maintain a gross margin of 25% each month. Generate an average of Tk 1200000 of sales each business day each month. Realize an annual growth rate of approximately 30% within the year 2016.

15.2 Financial Objectives Financial objectives determined by the company for the product are as followsi. ii. iii. A growth rate in sales of 35% for the year 2016, to total excess of Tk 1400000 in total revenue. An average sale per business day in excess of Tk 45000. Reducing existing variable costs by 3% within the year 2013.

16. Business Strategy

16.1 Strategies

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The greatest objective is to establish our new brand in the industry. The marketing strategy will seek to create customer awareness first regarding the product and establishing connections with targeted markets and work toward building customer loyalty and referrals. 16.2 SWOT Analysis The Research and Development (R&D) department found some major strength and weakness for our storeE&S Bazaar. According to the R&D department the SWOT analysis of the product is described below.Strengths i. ii. iii. iv. v. vi. vii. Strong brand name among the other companies in Bangladesh. 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. Totally new Ideas of Supermarket. Strong merchandising and product presentation. Good relationship with companys suppliers, partners and customers. High quality machineries.

Weaknesses i. ii. iii. iv. v. Private limited company Limited Cash Too many existing competitors. Sudden change of the companys economic situation. Challenges of the seasonality of the business.

Opportunities i. ii. Completely new appearance in terms of supermarket. High growth rate in our target market.
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iii. iv. v. vi.

Continuous opportunities ahead through strategic alliances and market activities. Existing channels of our existing product can be used. Internet potential for selling products to other markets. Increasing sales opportunities beyond our target area like Chittagong or Sylhet.

Threats i. ii. iii. Other competitors of supermarket may hamper our progress Economic, political and technological factors of the country may be threatening our activities. Similar Supermarket can offer same price as ours which may lead for loss

17. Company Services 17.1 Services The first goal is to recognize everyone come into the store. If they are a repeat customer, they will be referred by their name. Our store will be staffed with high energetic sales persons who will dedicate their most of the time to customers that want assistance when they need it. The store is designed so a customer can sit as long as them want to look at our products. Their children are also welcome in our store. We provide service in a way that no other competitive retail store can touch. It is one of our greatest assets and points of differentiation. Insight, ideas, inspiration, and fun are the goal. Repeat, high dollar purchases from loyal customers are the desired product.

18. Marketing Strategy

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18.1 Target Markets Our target markets are separate into four segments. The segments are kids, mature, young, and old. The segment details are as followsKids: - The kids are a large portion of the population. According to our marketing investigators, kids are the second major consumer of chips, chocolate, toys and others. Kids will like our store because we are going to provide a huge space and all types of product for the kids. Mature: - Matures age 1822 are also going to take our store. It will bear very significance market demand for our product. Young: - There is a large portion of the population occupied by the young people. According to the marketing investigation most of them will like they appreciated our new store. As young generation is the highest consumer of this type of product, they are our one of our potential customer to serve. Old: - Old are another portion of the population. Old are most careful and sophisticated consumer and are most concern about the price and the quality. We think they are also our potential customer because they also going to take our store in large scale because our store will save their money, time and energy. Therefore, targeting the Old is also one of our effective decisions.

18.2 Marketing Mix Our marketing mix for the new product E&S Bazaar is as follows: Pricing: We will provide less cost of the products than the retailers. It will help us to capture customers. Distribution: We will primarily use our existing distributors for distributing our new product E&S Bazaar. Then, we will make some new channels and assign some distributors to promote our new product to all over the country. Advertising and Promotion: The most successful advertising will be through ETV, ATN Bangla and RTV, and Radio, which are the most popular television channels in the country.
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We will also use some billboards, magazine, and leaflets and we will hold a sport event for the young generation to promote the product.

18.3 Promotion The most successful advertising and promotion have been through the following: Newspaper Advertisement The Daily Prothom-Alo, The Daily Janokantho, The Daily Jugantor, The Daily Star, The Independent etc. Television Advertisement-- Channel I, ETV, NTV, RTV, BTV & etc. Radio - Bangladesh Beter, BBC Bangla Service,Radio Foorti etc Leaflets - Distribution about the product in different areas. Postcards, Mailings, Public relations etc. will be used.

Supply Chain and Subsystem

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We are presenting here the basic Functional Steps that bring product stock from remote suppliers to local customers. As shown in Figure 5, these steps describe the essential supply chain of the supermarket business.

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For each step in the supply chain, this indicates which business entity owns or is responsible for the stock, its physical location, and how it is being accessed. The Stock goes through a sequence of actions that affect only its assigned properties, such as its location, accessibility, visibility, and purchase price.

19. Five Forces of Competition

Easy life service considers all forces of competition less suppliers of key inputs in the five forces model of competition as described by Professor Michael Porter in the following diagram:

Suppliers of Key Inputs

Substitute Products

Other industries) (Of firms in Rivalry Among Competing Sellers Potential New Entrants Buyers Page | 19

Conclusion
According to The American Customer Satisfaction Index (ACSI), which is an economic Customer satisfaction indicator founded at the University Of Michigan Ross School Of Business to, Publix Super Markets is on top in customer satisfaction with a score of 84. In general, supermarkets received a score of 76 a 1.3% improvement from last year. This is despite inflation leaving consumers purchasing food (prepared at home) that, in 2010, rose 1.7% from 2009 and then increased again by 6%in 2011. Publix has held the position as top supermarket for customer satisfaction for every year since 1994. In contrast, the more recognizable supermarket Wal-Mart is currently scraping the bottom of the list, down 3% to a score of 69 well below the average. Wal-Marts notoriety and success comes from its ability to supply consumers with necessities for very low prices. However, their relatively low score suggests that cost alone is not the driving factor for customers satisfaction even during hard times such as these.

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References

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