EXECUTIVE SUMMARYThe most important part of business plan is the executive summary. It includes the main business idea, market potentials, unique selling points, the service we are trying to sell, the profit making process, the company vision and finally the financial forecast. Our project is mainly concerned about the planning of online grocery business and Electronic business. Our strategy is to build an impressive shopping website that not only take the order but also deliver the goods to the doorstep for people who want to avoid the rush of shopping mall, traffic. The marketing of the site will be built around the core value that the site will offer. Although our competition has built a simple store for ordering the product, this site will be reviewed by Web award companies as a great destination for the all needed customer. We will build our revenue and market share around this traffic and value added service. Our business model is based on the sales of the products over the website. Because the site is also intended to increase brand equity, awareness and best available product in cheapest market price, we are building for high traffic. Our model requires giving users an excellent free experience and to develop trust to increase sell-through. We may lose money for at least three to six months while we build the traffic and develop our position for the long-term future. Our first class design, product quality and user friendly design are critical to our positioning as a dot-com company - we should be the best reviewed website in our category, and that will become the key to future sales. MISSIONOur business plan is created through some motives. Here we tried to explain our missions and objectives.

Product Mission:We will serve better quality productthrough a variety of domestic goods.

Economic Mission:Operate and grow at a profitable rate through sound economic decisions. We want to capture the market share and replace a great portion of conventional super shops items. Our goal is alittle bit economical. We are forwarding toreach our break-evenpoint within one year and if we can manage to double up our revenue within 3 years we have a plan to extend ourbusiness.VISIONOur visionary view of this business is that we don't want to see any body's panic. We want to makepeople having a good likeness inbuying. We would like to make their day-to-day life easier. Moreover, ensuring customer satisfaction is ultimate goal.LIMITATIONS Lack of experience about merging

High setup cost

High maintenance cost

Trying to find the best

Existence of Comparison

Likeness varies from person to person INTRODUCTIONOur business idea is all about web based. We would like to provide services to people with a view to making their day-to-day life more comfortable and easier. We will provide customers with grocery items as well as electronic goods. And provision of these goods will be done through web in the form of e-commerce. Our business will be beneficial for people who want to avoid the rush of shopping malls, traffic, etc. People can order us through web and thus well be able to know their demands, wants, etc. Then well be able to act accordingly. Customers can check samples of the products they want in the web. Well receive orders and then will take every step to provide them the goods. Our services will save a lot of time of the customers. The ultimate goal of our business plan is to ensure customer satisfaction.DESCRIPTION OF PROJECT

ONLINE SHOPPINGDay by day online shopping concept is developing by region in the world. The idea of online shopping was found few years ago and statistic show people are doing their shopping more than 50 percent online .EBay and Amazon has been running successful business in the world. But time is now in Bangladesh .Last two or three years few company has lunched online shopping facility in Bangladesh .One can browse product in their website and choose then have to give order and have to choose ones payment option .After making payment they will send the order product in ones address .

In Bangladesh this concept is not popular still now but day by day online shopping in Bangladesh has been growing rapidly. There are some websites which provide online shopping option in Bangladesh but neither delivers the products ordered nor offer return policy. Rather they charge high cost and are not up to date with the price and products of the market. They rarely modify the products and prices of day to day market.

We have planned to establish a business of online shopping and modify it with some more modern approaches and privileges. Some of them are the following,

1) Cash on delivery

We want our customers to enjoy the opportunity of paying cash on delivery. Cash on delivery (COD) is a financial transaction where the payment of products and/or services received is done at the time of actual delivery rather than paid-for in advance. Most small businesses prefer cash payment over credit card payment.

Trust Factor The Cash on Delivery concept allows the customers to make the payment only when the product or the services is delivered to them. This increases the trust factor between the customers and the businesses resulting in more sales and revenue for the online store. The entire transaction remains transparent between both the parties under this model.

Easier Transaction Model In Bangladesh most online stores depended on Credit Cards and Internet Banking for payments and transitions. Serving customers using these payment methods was easy in the developed countries, but in developing countries, many customers didnt have access to any electronic means of payment. This is the case in Bangladesh. Cash on Delivery has brought this category of customers into the purview of Ecommerce. Thus, increasing the market size and dispersion for the online stores largely.

Quality Improvement The customers pay only when they receive the product and are satisfied with its quality. They have the right to refuse poor quality products. This has ensured that online stores need to sell high quality products to the customers resulting in better quality and customer satisfaction.

Legal Aid Unless a customer has paid for a product he/she doesnt have the legal right over it. This works to the advantage of the online store as this keeps them at bay from legal responsibility over late delivery of the product or no delivery due to unavoidable circumstances. In case, our online store fails to deliver a product we can ask customers for an alternative product of their choice without having to worry about any monetary compensation or legal hassles.Return policyWe also plan to provide our customer with 3 day return policy. They can return the product if it is not satisfactory.

The following items may NOT be returned:

Any item without a return authorization slip.

Used or damaged items

Discontinued products

Products that are not in their original packaging and containing all accessories

Items over 3 days of the receipt date1) Creating a modern website:

a) Picking a domain name- A domain name is ones signature on the Internet. We have to select it first.b) Registering a domain name- Then it has to be registered. Domain names are acquired through authorized domain name registrars. All registrars have access to the same list of reserve names, but they may have different fee structures.

c) Finding a Web host- We have to develop the website. For business transactions involving payment by customers, then a hosting package that includes space on a secured server is usable. Secured servers are servers that contain additional layers of encryption to protect the identity of the individual and the data that is being transacted from unauthorized access.

d) Web design- After that we have to arrange web developers to design the website. There are also web designers who design web sites for a fee.

Examples of host and design websites in Bangladesh are,

www.web.com.bd www.websitedesignbangladesh.come) Financial transactions on the Web- In addition to having access to a secured server, we will need to design a transactions page that collects the customers financial information, transmits it to a service that can verify the transaction, and stores the data in our filesf) Linking the site- We have to link the site with other, already recognized sites increases the chances of being found by both our prospects and by the search engines.

Creating a website needs a Systems Development Life Cycle. Five major steps in the Systems Development Life Cycle are:

1) Systems analysis/planning

2) Systems design

3) Building the system

4) Testing5) ImplementationSYSTEMS DEVELOPMENT CYCLE

LOGICAL DESIGN FOR THE ONLINE SHOPPING WEBSITE

PHYSICAL DESIGN FOR THE ONLINE SHOPPING WEBSITE

COMPONENTS OF A WEBSITE BUDGET

INDUSTRY ANALYSIS1) Competition

The most important thing is to identify the competitors and their natures. In our business we do have related competitors but some business is flourishing now-a-days in this area. Our competitors are some web based online shopping business in our country.There are some websites which provide online shopping option in Bangladesh but neither delivers the products ordered nor offer return policy. Rather they charge high cost and are not up to date with the price and products of the market. They rarely modify the products and prices of day to day market.

The main competitors are-

I) Bikroi.com

II) OLX.com

III) Ekhanei.com

IV) Rokomary.com2) Current market situation

In 2021, Bangladesh will become a digital country and now a day 3G is available over 64 Districts. The project is running on very fast and today almost40 plus districts are getting under our on line services. Followings are the barriers of e-commerce in Bangladesh:

a) Very minimum number of users of web sites;

b) Poor telecommunication infrastructure with limited fixed-line access, unreliable connectivity and low bandwidth (9K);

c) Lack of technically efficient personnel;

d) Limitations of supportive legal system. Such as, exchange controls, protection of telecommunication monopolies, restrictive trade practice and prohibitions;

e) People's mindset is not very open to online shopping.OPERATIONAL PLAN1) Business goals

Short term goals

a) Provide efficient service with good price

b) Satisfy consumer needs with variety of products.

c) Make sure every transaction is fulfilled successfully from ordering to delivering.

Long term goals

a) Increase sales by 30 percent in 12 months;

b) Improve profits by 15 percent within two years.

c) Increase the variety and number of products with every passing year.

d) Expand the business with each increasing year.2) Resource requirements

a) Capital investments

Preliminary investment- Preliminary capital of around Tk. 600 thousand shall be contributed.

Loans and borrowing: Amount up to Tk. 400 thousand can be borrowed from bank.

Land and Building- An office with 800 square feet will be enough for primary operations. The office building can be either be rented or bought. Utilities- Electricity and power cost should get emphasis which will be around Tk. 6000 per month.

Miscellaneous Assets- Other items like office furniture, working tables in the office, exhaust fans, storage racks and bins etc. are likely to cost Tk. 40,000/-.

b) Personnel requirement

There should be appointed efficient data entry officers who are expert in technical knowledge of computers and internet. There should be reliable field workers for delivering the products.3) External resource for business expansionIn case of business expansion we will have to collect resource from external means.4) ProductsWe will primarily start with two types of products

a) Electronics: Television, computers, mobile phone, air conditioner, laptops, cameras, watches, water purifiers, kitchen appliances etc.

b) Foodstuff: Rice, flour, oil, seasonal fruits etc.5) Implementation

a) Order: We plan to make contract with the companies with related products for five years to supply us with the asked products when they are ordered by our customers. When customers will order products through our websites it will be added in our shopping cart software. If they want to take collect on delivery system then they will have to give their address, number. They can also pay through credit cards. After getting the selling price we will pay back the company with related products.b) Delivery: We plan to deliver in two ways, either by cash on delivery or by credit card within 3 days. We will also offer 3 days return policy.c) Billing: We will bill the product at their market price and will add minor commissions for delivering.d) Customer service: We plan to provide utmost customer service with our transactions. Our foremost concern would be the satisfaction of customers.6) Risk AssessmentAreas of risk are

a) Demand: Whether the fluctuation of demand of customers be satisfactory or not.b) Supply: Whether the supply and delivery of products be in proper time and please the customer or not.c) Technology: Get the help from the latest technology and using it in minimum cost.d) Security: To address proper security system to protect the website from unwanted hacking and cyber crime.e) Economical: Whether the resources are providing good value or not.

f) Implementation: Whether the plan is implemented by right or wrong people.Ways for addressing risks are

a) Reduce risk: We can get through the demand risk by ensuring quality and reduced tariff for the advertisers.

b) Spread the risks- Risks can be spread among related entrepreneursc) Plan B- If risks cannot be diminished by multiple attempts rather increases then we will turn our product shopping website into service related website.Organization Structure

MARKETING PLANMarket potential: Market potentiality means the estimated maximum total sales revenue of our products in the market during a certain period. For determining the market potential of our service we first need to identify who are our target markets and then future prospect.

We will serve the people who are from mid income level. We do not have any geographical barrier as it is a web based business. But we can state it in a different way. Our geographical expansion will be like that we will be covering areas beyond Dhaka i.e. other divisions (Chittagong, Barisal, Khulna, Rajshahi, Sylhet, and Rangpur)

Target markets: We are targeting two different groups of customers, individuals and corporate customers:

Individuals- The individuals are people who are looking to give a friend, relative a gift or trying to satisfy his needs. Corporate- The corporate customer typically buys electronic products in a large scale from the manufacturer or from the direct distributor at a lower rateMarket size: The rapid growth of digital technology is fundamentally changing the world as we know it. Our business is fully web based and so the number of internet users determines the potential market size of our product. The internet subscriber base in Bangladesh (excluding mobile) currently stands at just over 1.5 million (BTRC, Feb 2012).. Local industry estimates suggest that in 2011 access to the web was closer to 8 million users, having grown 300% since 2010 and expected grow a further 500% by 2020 (BCG, 2010).Factors that will affect the potential market size

Culture

Environment

Regulation

Economy

Industry practice

Demography

Trends

InfrastructureMarket Strategy: The marketing strategy will first seek to create customer awareness regarding the products offered, grow the customer base, and work toward building customer loyalty and referrals. The long-range goal is to not only dominate the online store business, but to create an icon brand.a) Product classifications: We will sell two types of product throw our website:i. Electronic products (laptops, mobile phones, mp3 players, dvd players etc)

ii. Foodstuffb) Pricing policy: Product pricing is based on offering high value to our customers compared to most price points in the market. The price of our products (Food) will considerably be lower from the market rate as we will collect them directly from the manufacturer. In case of electronic products we will become business partners or direct distributors of the popular brands so our price will be slightly lower than that is in the market.Factors that influence pricing

Supply and demand

Competitive pricing

Cost and profit margin

Affordability

c) Product packaging: We will use sophisticated packaging measures to ensure the safety of the products Food) and in case of electronic products, as the products are already packed by the manufacturer, we will just use a sticker containing the identity of our website.d) Distribution policy: We will distribute the products to the customers with our responsibility. Initially we will only concentrate in distributing the products within the capital and gradually we will expand our business to other cities. Sales Forecast: Our sales will be tracked using the same system that tracks our website visits and contact requests.

Sales growth should be based on

a) Market penetration

b) Market expansion

c) Expansion of product range

d) New sources of revenueMarket Promotion: The plans for marketing and promotional strategies are:

Popular websites (e.g. Facebook, Google+)

IT-based pages of newspaper(e.g. Onno Alo)

Front pages of newspapers

Online editions of daily newspapers to reach the NRBs(Non Resident Bangladeshis)

Press release

Free registrations in websites (e.g. Web Bangladesh, Google)

Leaflets/Banners

Stickers

FM band radio stations of BangladeshMarketing Budget:Particulars20152016201720182019

Advertising15,50,00014,75,0008,750009,00,00017,00,000

Sales Promotion3,75,0004,25,0005,75,0005,25,0004,25,000

Direct Marketing75,0001,00,00050,00075,00075,000

Total20,00,00020,00,00015,00,00015,00,00022,00,000

Analysis (SWOT)1) Strength

Very effective expected advertising channel Easy payment system Providing variety of products Main purpose is to provide better customer service rather than making profit only.2) Weaknesses

Earlier entry by other few related websites. Lack of technically efficient personnel. Minimum number of users of web sites. Poor telecommunication infrastructure with low bandwidth.3) Opportunities

The growing trend of using internet The popularity of online shopping is increasing The buying process by people without being physically present lowers their concerns. The time constraint of people of buying from showrooms is reduced

No bargain hassles

4) Threats Limitations of supportive legal system. Cybercrime ex: Hacking which needs adequate security system. Peoples mindset is still not very open towards online shopping.ANALYSIS OF COMPETITIVENESSWe have analyzed the current market situation by the five factor model of Michael Porter. In this model there are five forces. By those forces we have identified the competitiveness of the target market.

Competitive Rivalry within an Industry:Withinthismarketwehavesomestrong existingcompetitors.SuchasAgora, Meena Bazar, Gmart, Prince Bazar etc. But as we are going to start with the necessary items we don't have such type of competitor. Threat of New Entrants: Threats of new entrants for a business are always true. So we have always risk of those new entrants. For this business entry barrier is not very high, as a result in that sense it is an unattractive segment. Threat of Substitute Product: We are going to compete with super shops. We have various types of readymade good, in this field we don't have real substitute products. Other industry such as our Grocery industry can be substituteproduct. But as those are not our real substitute product, it is certainly an attractive market.

Threats of Buyers Growing Bargaining Power: Our buyers would not bargain with the pricebecausewe areoffering in fixedprice. As weare starting from afixed priceit would certainly fulfill the customer demand,because customers are always price sensitive. Threats of Suppliers Growing Bargaining Power: We are going to launch a new trend of the grocery business. So the suppliers of that field are so much concentrated and organized. We emphasize on collecting items from diversified groups. We will collect specific items from specific places. As a result our suppliers are widened in Dhaka. So, low bargaining power of the suppliers makes the target market so much attractive.Competition within an industry

Competitive forcesThreat to Industry Profitability

LowMediumHigh

Threat of substitutes

Threat of new entrants

Rivalry among existing firms

Bargaining power of suppliers

Bargaining power of customers

BUSINESS EXECUTION

The first and foremost task before the beginning of business is licensing the business under partnership act. We have to set up the business with the help of capital expenditures. And then these will be supported by personnel to continue operation and in case of expansion we will get the help from the external resources. We will continue the research on development of our website through regular online survey participated by the customers.

Expected number of consumers for a particular financial year will be estimated, after that time periods we will compare the projected and the actual number of customers. In case of material deviations we will find out the reasons operating behind the deviations and find out what is to be done to overcome this.

a) Evaluate whether proper marketing promotions are going on

b) Perform a survey regarding what more customers want from us

c) Watch whether the staffs are performing their duties properly.FINANCIAL PLANHere are financial highlights for projected five yearPro Forma Income StatementThe following table presents the pro forma income statement for projected five years.Particular20152016201720182019

Sales1,00,65,0001,17,60,0001,34,75,0001,22,29,0001,26,00,000

Less- COGS60390007371000838500076374007360000

Gross Profit40260004389000509000045916005240000

Operating Expense:

Advertising20,00,00020,00,00015,00,00015,00,00022,00,000

Salary5,16,0005,34,000552000612000648000

Offices Supplies5000052500550006000065000

Rent4,80,0004,80,0004,80,0004,80,0004,80,000

Utilities72,00072,00072,00072,00072,000

Depreciation30,00042,00037,00045,00057,000

Miscellaneous Expense30,00035,00047,00053,00048,000

Interest (15%)6,00,0006,00,0006,00,0006,00,0006,00,000

Total Operating Expenses37780003815500334300034220004170000

Income before Taxes2,48,00057350017,47,00011,69,60010,70,000

Taxes (40%)99200229400698800467840428000

Net Profit1480003441001048200701760642000

Pro Forma Balance SheetHere presents pro forma balance sheet for projected five years.Particular20152016201720182019

Assets

Total Fixed Assets18,25,00016,05,00016,25,00015,03,00016,40,000

Total Current Assets45,00,00048,00,00051,50,00049,25,00050,50,000

Total Other Assets2,25,0003,20,0003,00,0003,75,0004,35,000

Total Assets65,50,00067,25,00070,75,00068,03,00071,25,000

Liabilities & Owners Equities

Liabilities

Total Current Liabilities8,50,0009,75,00011,00,0009,75,00010,25,000

Total Long Term Liabilities40,00,00040,00,00040,00,00040,00,00040,00,000

Total Liabilities48,50,00049,75,00051,00,00049,75,00050,25,000

Owners Equities17,00,00017,50,00019,75,00018,25,00021,00,000

Total Liabilities & Owners Equities65,50,00067,25,00070,75,00068,03,00071,25,000

Project Analysis:

The discount rate has been calculated using WACC. The cost of debt is 15% as it is a low moderate

Risk project and a speculative return on equity is 20%, based on the expectations of the

Entrepreneur. Therefore the WACC stands at [(15*0.40) + (20*0.60)] = 18%.

ParametersValue

NPV16,59,821,32

IRR57.32%

Payback Period (in years)5.88

Discounted Payback Period (in years)6.47

Ratio Analysis:

Ratio20152016201720182019

Current Ratio5.294.924.685.054.93

Net working capital (Tk.)36,50,00038,25,00040,50,00039,50,00040,25,000

Gross Profit Margin

40%37.07%37.78%37.55%41.59%

Net Profit Margin1.14%2.93%7.78%5.74%5.10%

Debt-equity ratio2.852.842.582.722.39

Debt-Asset ratio0.740.740.720.730.71

Return on asset2.26%5.11%14.82%10.32%9.01%

Return on Equity8.70%19.66%53.07%38.39%30.57%

Break Even Analysis:Accounting breakeven point is the sales level that results in a zero project net income. In the initial stages of new venture it is helpful for us to know the point where we can avoid loss. This will provide us the insight into the financial potential for the start-up business. So that we will calculate break-even by this formula,Sales, S = (Fixed Cost + Variable Cost - Depreciation) * (1 Tax Rate)Following table shows the break even sales for projected five years.Year20152016201720182019

Total Fixed Cost32836003773500330600033770004113000

Total Variable Cost60390007371000838500076374007360000

Depreciation3000042000370004500057000

40%Tax Rate40%40%40%40%40%

Break Even Sales55755606661500699240065816406849600

Graphical representation: The graphical representation of the break even sales presents below

Break Even Sales

Variable Cost

Fixed Cost

Stress Analysis: Stress test has been done by increasing the sales by 5% and decreasing direct cost by 5% for the best cost scenario and vice versa fro worst case scenario. Here NPV is still high even in worst case.

Stress Analysis Base CaseBest CaseWorst Case

Units Sold 5% higher than normal5% lower than normal

Variable Cost Per Unit 5% lower than normal5% higher than normal

NPV 16,59,821.3221,33,761.597,23,853.55

Performance Analysis:

Sales1,00,65,0001,17,60,0001,34,75,0001,22,29,0001,26,00,000

Gross Profit40260004389000509000045916005240000

Net Profit1480003441001048200701760642000

AppendicesProjected Ravenue from Selling:

RevenueParticulars20132014201520162017

Income from Electronics Products

Mobile11,25,00018,40,00019,40,00015,34,00017,20,000

Laptop55,50,00060,50,00072,75,00065,50,00065,75,000

Monitor5,25,0004,75,0007,35,0004,25,0005,00,000

Television2,25,0003,75,0003,50,0003,50,0003,85,000

Income from Others Electronics Products7,20,0008,50,0008,75,0009,00,0009,25,000

Total Income from Electronics Products81,45,00095,90,0001,11,75,00097,59,0001,01,05,000

Income from Grocery Products12,00,00014,50,00015,80,00017,50,00017,75,000

Income from Other Sources7,20,0007,20,0007,20,0007,20,0007,20,000

Total Income1,00,65,0001,17,60,0001,34,75,0001,22,29,0001,26,00,000

GEOGRAPHICAL POSITION OF TARGET MARKET:

The target market is Dhaka City Corporation area for the first 5 years. The firm uses simple distribution channel with zone-wise dealers. The Dhaka city has divided into 9 different zones cover 19 areas. The following table shows the 9 zones and areas under each zone:

NameCovring Areas

Zone 1Mirpur, Pallabi

Zone 2Cantonment, Kafrul

Zone 3Mohammadpur, Dhanmondi

Zone 4Ramna, Tejgaon

Zone 5Hazaribag, Lalbag, Kamrangirchor

Zone 6Kotowali, Shutrapur

Zone 7Shyampur, Demra

Zone 8Motijheel, Sabujbag

Zone 9Khilgaon, Badda

INTREGRATED MARKETING COMMUNICATION:The firm uses pull strategy as its promotion mix strategy which is spending a lot on advertising and consumer promotion to build up consumer demand. It makes the promotion mix efficient enough to activate customers to ask for the product. Here is a graphical view of the pull strategy:

Demand

Marketing activitiesCustomer

Firm

7

_1414806489.xlsChart1

10065000402600014800020132013

11760000438900034410020142014

134750005090000104820020152015

12229000459160070176020162016

12600000524000064200020172017

Sales

Gross Profit

Net Profit

Sheet1

YearSalesGross ProfitNet Profit

2013100650004026000148000

2014117600004389000344100

20151347500050900001048200

2016122290004591600701760

2017126000005240000642000

To resize chart data range, drag lower right corner of range.