Business Plan
Content
1. BUSINESS DESCRIPTION
The business is changing globally in today’s world. Formerly, a business’s main motive was
profit. Since business world is developing, there are many other intentions or goals of an
organization. One of the most important goals is survival which requires growth. So, to stay in
the business, any company should highlight on introducing new products or services which can
create competition in the market and can make consumer’s life easier as high competition
decreases price. Producing and introducing a new product or service is not that simple.
Launching a new product or service is not only uncertain but also a little bit complicated. But, to
keep up with the latest business world, any company should think about introducing new
products or services. If we need to enjoy profit we need to introduce a new product which needs
a marketing plan to start with.
The term paper we worked on shows up a new marketing plan of a new service which idea is
created by our group. So, in this paper we have come up with a new and stimulating idea and
also tried to do a theoretical analysis of the market. The company and brand name was made-up.
Although it has been based on totally hypothetical analysis, we have tried our level best to
explain the situation in the light of real life.
1.1 The Industry
We want to enter into the Confectionery industry which is very big and profitable industry with
lots of competitions. We are talking about chocolate industry which is dominated by domestic
and multinational companies but still there are some opportunities or segment that was not served
by those companies. We come to the industry with an innovative idea and with new test or
experience for different segment which has not been explore yet by the exiting company. But we
have to compete with company like Nestle, Cadbury Pran and many more.
Domestic producers hold strong positions in nearly all consumer goods categories due to lower
prices, making it difficult for multinational companies to compete. As a result foreign companies
in Bangladesh are mainly targeting the growing urban middle class population. Additionally,
multinationals are capitalizing on Bangladeshi consumers’ perception that foreign brands provide
better quality.
Multinationals also benefit from growing demand for higher quality processed food.
Bangladeshis mostly consume basic staple foods, but with urbanization, rising income and
increasingly busy lifestyles, consumer preferences are shifting dramatically. Bangladeshis are
increasingly consuming quality processed foods such as sauces, jams, noodles, soft drinks, juices
and dairy products.
All consumer categories performed strongly in Bangladesh over 2009-2013. Packaged food was
valued at US$9.8 billion in 2013 after registering a CAGR of 20% from 2009. Dairy (CAGR
37%), baby food (CAGR 31%), noodles and pasta (CAGR 28%) and confectionery (CAGR
25%) performed exceptionally well. Overall packaged food sales are anticipated to grow at a
CAGR of 17% over 2013-2018, reaching a value of US$21.2 billion in the latter year.
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Soft drinks market value amounted to US$235 million in 2013 after registering a CAGR of 18%
in value terms since 2009. Juice (CAGR 23%), bottled water and sports and energy drinks (19%
CAGR each) and carbonates (16% CAGR) were the most dynamic soft drinks categories. It is
forecast that soft drinks will see a value CAGR of 15% over 2013-2018.
Retail trade is a traditional business in Bangladesh, although modern retail constitutes only
around 10% of total sales. However, the situation is changing, and the revenue of modern
retailers increased by 15% annually over the review period, twice exceeding the growth rate of
the overall retail environment. It is also anticipated that the turnover of modern retailing will
increase 4-fold by 2020, reaching US$37 billion.
1.2 The Company
Tag Line: “Think chocolaty. Live Chocolate”
The company will start its’ journey in Bangladesh in 2016 with the name of “Nummy chocolate
Limited. Nummy chocolate is always concerned about the quality of service. And also values the
necessities and desires of the customers. In Bangladesh chocolate industry are candy bases and
children centric. Not segmented but different segment have their individual test and demand. By
research Nummy chocolate Limited feels the demand. Nummy chocolate Limited come up with
a chocolate for elder. For young generation specially, age above 15. First, we come up with 5 or
6 product lines for different segmented people and operate our business in Dhaka, Chittagong
and Sylhte, Khulna. After create market positioning, we will reach every corner in Bangladesh.
Company’s Vision: “Build a Strong Place in Market as a Market specialist”
Company’s Mission: “To Share Happiest Experience.”
Company’s Objective: “To Capture Different market as a Specialist”
Company’s Goals: “Eat Healthy, Keep Yourselves Nutrients”
Beside our chocolate we also open retail Chocolate shop in Dhaka, Chittagong and Sylhte to
reach end customers and build profitable relationship with them. In our Nummy chocolate shop
we will sale raw chocolate where customer can choose their ingredients as they like.
Nummy chocolate has a massive team of active workforce and creative researchers always
sacrifice themselves in company’s development by adding up new types of ideas for service.
Because of their generous attempt, today this company has started the first service Nummy
chocolate which get good response and popular within a very short time in Dhaka when we
conduct some test marketing and research work.
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1.3 Experience
“Nummy chocolate” We do not sales products, we share experience. As a marketer, our principle
is to influence elder and young consumers to experience our product. As it is a brand new
experience for new segment in our country, we need to attract customers by promoting and build
strong brand. We have an active research team working hard on determining the market demand
and on the root of this market research we launched this service. To reach and know our
customer we divided our market into small segment. We start with a six experience for different
segment. Now we describe our experience.
All of these products are created based on research work. According to these and hundreds of
other scientific studies, by eating dark cocoa you may experience these benefits:
Diabetic Chocolate:
The total number of diabetic patients in Bangladesh is now around 1 crore. There are millions of
peoples who have chances of diabetics. So we want to introduce chocolate experience for them
because research shows that dark chocolate help the body utilize sugars better thus reducing
diabetes as well as decreasing the complications of diabetes – vision problems, amputations and
kidney problems. They will be our target customer.
Heart Beat:
Prevent the formation of blood clots, which can lead to heart attacks and strokes
Increase the flexibility of blood vessels in order to lower blood pressures and decrease the stress.
People who suffer for high blood pressure and involve with stressful job are our target customer.
Smooth:
Dark chocolate improve the quality of your skin Cacao: Nature’s Supreme Antioxidant Source.
Nut is also good for smooth skin. So we use the combination of Dark coco and Nut.
Love CoCo:
Now, researchers have found that eating dark chocolate causes the brain to release same
endorphins, chemicals when people feel love. So we introduce “Love CoCo” as a token of love.
We will use strong flavor in that types of chocolate.
O Degree:
Dark chocolate Help with weight loss by decreasing appetite. A person’s who concerned about
fatness or can’t eat chocolate for extra fat. They will be our target customer.
Joy:
The ingredients might make the texture, smell and flavor of chocolate more enjoyable and
combine with other ingredients like caffeine to make a person feel good, researcher Daniele
Piomelli speculated. Everyone can enjoy this product for any kind of calibration.
By segmenting chocolate market into different segment we can reach to every customer and
fulfill their demand and know their want. Existing company follow mass marketing, one product
for one. So they miss the different segment and customer demand. That’s why we grab the
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opportunity to serve different segment. We create different market in chocolate industry with
new tested experience for different segment.
1.4 Gallery
“Life is like a box of chocolates, you never know what
you're gonna get”
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1.5 Experience (Product) levels
We know every product and service has five different levels. Like every service “Nummy
chocolate” also has some levels.
Core benefit: The most important reason behind buying anything is the core benefit of
the product or service. When a consumer buy anything at first he/she looks for the core
benefit of the product. Nummy chocolate limited is very alert about the core benefit of
the service. “Nummy chocolate” providing experience and happiness to our customer
which is not tested yet.
Basic/Actual product: Actual / basic product are that product which requires getting the
core benefit. Here the basic or actual product is the convenience in transport that can
meet the customer demand. We have brand name, quality level, and Chocolate present in
Box, Which has different design and feature.
Expected product: Expected product is the customer’s expectation about the actual
product. Now a day’s Customers are very aware of health, as our company goal, we
deliver healthy experience and keep them nutrients.
Augmented product: Augmented product is the additional benefits that are getting by
buying actual product or service. Every chocolate wrapped with a foil paper and every
chocolate would carry some massage like which is minimizing the post purchase conflict.
We should give more importance on augmented product. So, we are trying to give more
improved features with the service.
Potential product: Potential product is those that are naturally not available and the
customers have no idea about that product. After creating brand positioning we will focus
on potential product to delight our customer.
1.6 Market Segmentation and Targeting:
Now we will describe market segmentation under the umbrella of age, gender, occupation,
income, location, social class, lifestyle, personality and behavioural variables:
Nummy Chocolate Company offers best quality chocolate with different packages to customers
at a very competitive price. Depending on the market researcher’s information and considering
each segment have their own test and preference
Age: We divided into two part under15 and above 15. Primary target was only the adult
generation.
Gender: Both man and women are the target market for the market. But now we have product
category for women, soon we will launch a chocolate for man, “smoky”.
Occupation: we have a product that can minimize pressure and stress. Also we will charge high
price so the occupation play a big role.
Income: We maintain quality and produce healthy experience. So priced our chocolate little bit
higher which can afford by the middle and higher class income people.
Location: As the research shows Dhaka, Chittagong and Sylhte people consume more chocolate
then other deistic. So we operate our operation on that part first. The company has emphasized
on Dhaka where more than half of total sales (52%) comes from only Dhaka.
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Lifestyle: Diabetic patient are very much concern about their health and avoid sweets from their
daily food. We have a chocolate for them.
Social class: We will build a strong brand image on customer mind. So our chocolate will carry
some social class
1.6 Positioning
As we all know that transport service is a very competitive market. So we cannot
avoid the competition. Though now it is a unique service but in future there will be competitor.
To avoid competition from the future competitors, we have to give more emphasis on creating
the brand value. There are many brands that are so strongly positioned in customer mind that it is
a protection. For example, we can say about Nestle, though it’s a brand name but many of us
usually use this word to buy any kind of chocolate. Another example is Cadbury. It itself a
famous brand name. So, we‘ll give more emphasis on creating brand value. So that if people
think about chocolate, the first word that should arise in his mind “Nummy Chocolate”. And to
do this we have to give more emphasis on different promotional activities.
Point of Difference (POD): Point of difference is the attributes or benefits that consumers
strongly associate with a brand. For Mimi chocolate the points of difference are:
Most people of the target group is aware of the product
An emotional attachment exists towards the product
Unique Flavor (dark Chocolate)
Point of Parity (POP): Points of Parity are the characteristics that are not unique to brands but
may be shared with other brands. For Mimi chocolate the points of parity are
Taste: As we say we provide bark chocolate experience to our customer. In Bangladesh,
we are the first company to introduce our market to the dark chocolate. So taste wise it
very good, new to the market and moreover it’s very good for health
Quality: As we promise earlier, we will provide best quality in Bangladesh. We want to
be a market leader based on our quality. We import cacao beans from Mexico. Which is
world best coco beans producer and we follow Belgium chocolate style. So quality wise
we are the best company in Bangladesh.
Packaging: We present our chocolate in different shape of box, as we see in the gallery.
Every chocolate wrapped with a foil paper. Wrapping paper will be in different color on
feature of chocolate. So package wise we are the best in market.
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2. THE MARKET ENVIRONMENT & STRATEGY
The chocolate market is full of computation. There are some Domestic companies and
Multinational Companies who already create brand positioning and control the market. But these
companies has diversify product. Neither of them are specialist on chocolate industry. But our
company has only one types of product Chocolate. So we have a chance to prove our self as a
chocolate specialist in consumer mind. Today there is no market without competition. If we have
to create a brand position, we should have quality product and come up with innovative idea and
new test for customer. We think we have both qualities to success. Now we use some tools to
evaluate the market condition.
2.1 Porter's Five Forces Model
I. Bargaining Power of Buyers: Low
Bargaining power of the Buyers is very low as they have not much option. There are pricing
issues, competitor issues and others as well. So buyers can’t switch whenever want. So the
bargaining of the buyers is low
II. Bargaining Power of Suppliers: Moderate
As a new comer the distribution channel is not so strong. We import cacao beans from Mexico.
Price of the raw material is not fully in our control. So here, bargaining power of the suppliers is
moderate.
III. Threat of Substitutes: Low
The product type itself is unique. There may be different competitors but no substitute. So the
threat of substitute is low.
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IV. Threat of New Entrants: Moderate
New company can come into the picture but the possibility of coming is not high. There are
already foreign brands which are having strong hold in the market. Nummy Chocolate limited
will create some entry barrier such as switching cost are high.
V. Industry Rivalry: Very High
Industry rivalries are very high because we have to compete with established and large
companies. Some of them are domestic and multinational companies who have vast experience
in this sector and brand positioning in market.
But there are some competitive strategy is to find a position where the company can defend itself
against these forces or influence them in its favor.
Generic strategies
Industry Force
Entry Barrier
Buyer Power
Supplier Power
Threat of substitutes
Rivalry
Cost Leadership
Differentiation
Focus
Ability to cut price in
retaliation deters
potential entrants.
Ability to offer lower
price to powerful
buyers.
Customer loyalty can
discourage potential
entrants.
Large buyer have less
power to negotiate
because of few close
alternatives
Focusing developing
core competencies
Large buyers have
less power to
negotiate because of
few alternatives
Supplier have power
because of low
Better able to pass on volumes, but a
Better insulated from supplier price increase differentiation
powerful suppliers
to customers
focused firm is better
able to pass on
suppliers price
increase
Customer’s become
Specialized products
Can use low price to
attached to
& core competency
defend against
differentiating
product against
substitutes
attitudes, reducing
substitutes
threat of substitutes
Rivals can’t meet
Better able to compete Brand loyalty to keep differentiation
on price
customer from rivals
focused customer
needs
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2.2 SWOT Analysis
SWOT analysis is very impotent for a new comer. As a new comer in chocolate industry, we
have to know our internal and external environment of market. According to this we will set our
strategy.
Strength
Core competencies in key area
Well-conceived functional area strategies
Proven Management.
Good research team
Cost advantage
Better advertising
Selling products directly to the customers
Higher responsiveness to customer demands
Quality and Healthy chocolate.
Weakness
Moderate supplier bargaining power
No partnerships or strong relationships with computer retailers
Week market image
Too narrow product line
Lacking of fund
Week brand value
Opportunities
Ability to serve additional customer
Expand product line
Ability to transfer skill/technology to new product
Ability to serve foreign market
Complacency among rival firms
Ability to serve niche market
Ability to grow market demand
Threats
Entry of lower cost foreign competitor
Raising sales of substitute product
Slow market growth
Costly regulatory requirement
Vulnerability to recession and business cycle
Political instability
Industry Rivalry: Very High
Strong relationship of competitors with retailers
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2.3 Ansoff’s Product-Market Grid
Reaching our break event point we will launch some new product for new market. Some time we
can follow our competitor product to satisfy our customer demand or to attack competitor. That’s
the strategy:
Market/Product
Existing Product
New Product
Expansion Grid
Market Penetration
Product Development
Joy
Diabetic Chocolate
Existing Market
Candy (in future)
HeartBeat
Smooth
Love CoCo
O Degree
Market Development (In future)
Diversification (In future).
Nummy Chocolate
CoCo Coffee
New Market
Children
CoCo cold drink
Smokey (boys)
Coco cookies
Coco Bread
2.4 Our Company Orientations
Competitor-Centered: NO
Competitor-Centered: YES
Customer-Centered
NO
Product orientation
Competitor Orientation
Customer-Centered
YES
Customer Orientation
Market Orientation
Customer and competitor both are very important in setting marketing strategies. If we follow
product orientation we will miss customer demand and competitor strategy. If we follow
customer orientation we will lose to our cogitator. If we follow competitor we will lost our
customer. So market orientation is the best police for new comer. For that we will track both
customer and competitor.
2.5 Strategic Positions (Market Nicher Strategies)
First few years we will follow Market Nicher Strategies to avoid the strong competitor in market.
For that strategy Market leader will not track us or not think us as a potential treat. In the
meantime we will build brand positioning, brand equity and brand awareness into the customer
mind .In considering competitive position from a strategic point of view we will follow three
main directions:
Developing and Building;
Maintaining and Holding;
Defending,
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3. PRICING
For marketing strategy we will sustain the market skimming. Our target is to grab the highest
revenue. And the target market is already set. Mostly upper and middle class will buy our
chocolate and will pay any price to have a supreme experience. So, we will still make a huge
profit. As our market is also very large and they are very much price sensitive so if we enter into
the market with fair rate compare to other competitors than definitely we will have competitive
advantages. We have 6 types of chocolate which has their own feature and quality. So our price
will start with 100 to 300 tk. After see the market response will launch family pack and mini
pack.
4. PLACE
4.1 Distribution Channel Option
Several distributing or marketing channel systems are seen in today’s market. These could be
Conventional marketing system: This is also known as Traditional Marketing System.
This is more appropriate for the conventional product. In this case, distributors are not
controlled by the organization but they have the independent ownership. For exampledifferent retail shop.
Vertical marketing system: This is opposite of conventional marketing system. When
manufacturer, wholesalers, retailer work under unified system or under sole ownership
system is called the vertical marketing system. For example- Transcom is the authorized
distributor of Philips. Transcom has no right to sell Sony or Samsung product.
Horizontal marketing system: When two or more unrelated companies work together to
sell the product is called the horizontal marketing system. For example-Brac Bank and
Brac University work as a Horizontal marketing system. That’s our backup plan.
Hybrid marketing system: Using more than one distribution system is called hybrid
marketing system. For example- Sony Company’s authorized distributor is Rangs. As
well as Sony product is also available in stadium market. So in this case Sony uses two
system is a same time. If our plan does not work we will co-brand with Belgium
chocolate company.
Beside our chocolate we also open retail Chocolate shop in Dhaka, Chittagong and Sylhet
to reach end customers and build profitable relationship with them. In our Nummy
chocolate shop we will sale raw chocolate where customer can choose their ingredients
as they like.
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5. PROMOTION
5.1 Choosing Media
For our young generation media is very important. We have to select our media very carefully
since we are spending huge amount of money for research and development. Moreover as it is a
complete new product, we must set up a huge budget. So we have to spend a huge amount of
money for market promotion as well. We will use all three promotional activities; ATL, TTL and
BTL Any failure of any of the Medias may lead to a drastic and unrecoverable loss. So we have
selected our media of market promotion at the points below:
I. Printed Ads:
Printed Medias like- Newspapers and Magazines which are very important Medias that can reach
our target customers. It is less costly as well. Most of our target consumers are involved in
reading newspapers and magazines
II. Television:
As we all know Television is very popular among people of all stages and levels, especially the
household consumers. But most of our target customers do not get information via television.
Still, we will allocate some amount in television commercials. We will use humor and musical
appeal
III. Radio:
Now-a-days Radio is a very common media among the youth and also among the others in our
country. Radio stations like Radio Foorti, Radio Today, and Radio Amar have gained much
popularity in Bangladesh. Radio is cost effective and less costly than television. We will contact
the most famous radio stations and will consider the most popular show
IV. Internet:
Now-a-days youth are getting addicted to internet. And it is also used in every workplace. If we
give advertisement on different internet site like Msn, Yahoo, Google, Facebook, Bd-jobs and
other social networks, then our promotion will run very fast.
V. TTL (Through the line):
In case of outdoor advertisement we can use billboard which is a very popular media now-adays. Moreover we will use point of selling branding, shop sign, hording and trading incentive.
VI. BTL (Below the line):
Beside promotion we will arrange some Chocolates fair, road show, indoor out-door events,
concert, fashion show, cultural show, exhibition and reality show as well. For this customer will
associate with our brand.
VII. Games Sponsor:
Firstly, we will sponsor some indoor games and promote our own national games.
We will also give Liflate to the hospital, fitness centre and also promote our chocolate in movies
or drama
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6. BRANDING
Such advertising campaigns can help to create name recognition, brand knowledge and may be
even some brand preference. However, the fact is that brands are not maintained by advertising
but by the brand exercise.
6.1 Brand Equity
To build brand equity, there are several kinds of marketing processes:
Personalizing Marketing strategy: We will combine of experimental marketing,
permission marketing and on to one marketing by arrange event and by store branding.
Brand spokesperson strategy: As a brand ambassador we try to contract with “Pro
Abdullah Abu Sayeed” or “Anisul Haque” or “Muhammad Zafar Iqbal”.
Green marketing: We devolved and promotion of product that are environment friendly.
Social Marketing: We will arrange anti-smoking campaign and social work for street
children.
Sponsorship Marketing: Firstly, we will sponsor some indoor games and promote our
own national games.
Buzz Marketing: Marketing our chocolate through word of mouth process by the
marketers to customer and to customer to customer.
6.2 Brand Management:
Brand management is the process to identify and establish brand position, to plan and
implementation marketing program in order to apply brand performance
Step-1 Identifying and Establishing Brand Positioning and Values:
We have a goal, will create image. For positioning we will consider mental map, competitive
advantages, POD and brand Mantra.
Step-2 Plan and implement Brand Marketing Program:
To design brand marketing program we will us Brand element, marketing mix and Brand
association.
Step-3 Measuring and Interpreting Brand performance:
Effectiveness and performance of marketing program will evaluated by Brand value chain,
Brand awareness, Brand attitude, brand attachment and Brand Audit.
Step-4 Managing Brand Equity:
Managing brand within the context of others brands.
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7. FINANCIAL PART
7.1 Variable and Fixed cost
Total Fixed costs of Nummy Chocolate
Fixed Costs
Chocolate Coating Machine
Chocolate Tempering Machine
Melters
Others Chocolate Equipment
Administrative Cost
AC
Generator
Furniture
Computers
Other Fixed costs (Rent, Car, Salary etc.)
Total Fixed Costs
Variable costs of Nummy Chocolate
Variable costs
Cost of good sold
Production Supplies
Labor salary
Fright Out
Advertising Expense
Total Variable Expense
Amount(Tk.)
800,000
800,000
300,000
100,000
200,000
50,000
50,000
100,000
100,000
500,000
30,00,000
Amount(Tk.)
10,00,000
300,000
100,000
50,000
50,000
15,00,000
7.2 Break Even Analysis
The break-even point in any business is that point at which the volume of sales or revenues
exactly equals total expenses -- the point at which there is neither a profit nor loss -- under
varying levels of activity. The break-even point tells the manager what level of output or activity
is required before the firm can make a profit; reflects the relationship between costs, volume and
profits.
We consider our business life time 5 years (average).
The Fixed Expense = 3000000 Tk.
The Selling Price per unit = 200 Tk. (Approximately)
The Variable Cost per unit = 75Tk. (Approximately)
Break Even Quantity = Fixed Cost/ Sales per unit – Variable Cost per Unit
=3000000/ (200-75)
=24000 units
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Break Even Sales = Break even unit × selling price per unit
= 24000*200
=4800000
This means, we need to sell 24000 units of products or TK.4800000 sales to have a break even
situation. The Break Even Chart is given below:
Fig: Break Even Chart
7.3 Income Statement
Nummy Chocolate
Income Statement
For the year ended December 31, 2016
Particulars
Sales
Sales returns and allowances
Net Sales
Cost of goods sold
Gross Profit
Operating Expenses:
Selling Expenses
Administrative Expenses
Total operating Expenses
Income before Interest & Tax
Others Expenses
Income before Income Tax
Income Tax Expense
Net Income
2016
40,00,000
(100,000)
3900,000.00
(16,00,000)
23,00,000.00
6,00,000
3,00,000
( 900,000)
140,000.00
(400,000)
(1,000,000.00)
(150,000)
850,000.00
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7.4. Balance sheet
Nummy Chocolate
Balance sheet
December 31, 2016
Particulars
Amount(Tk.)
Assets
Current assets:
Cash & Investment
Supplies
Receivables
Total Current Assets
Property, Plant & Equipment:
Chocolate Coating Machine
Chocolate Tempering Machine
Melters
Computers
AC
Generator
Furniture
Others Chocolate Equipment
Total Property, Plant & Equipment
2000000
50000
200000
2250000
800,000
800,000
300,000
100,000
50,000
500,000
100,000
100,000
50,000
2800000
Total Assets
5050000.00
Liabilities & Owner’s Equity
Current Liabilities:
Accounts Payable
Notes Payable
Total current Liabilities
Long Term Liabilities:
Bank Loan
Total Long Term Liabilities
Owner’s Equity
Owner’s Capital
Add: Net Income
Less: Owner’s Drawings
Total Equity
Total Liabilities & Owner’s Equity
100000
100000
200000
2000000
2000000
2200000
850000
200000
2850000
5050000
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7.5 Cash Flows
Nummy Chocolate
Statement of Cash Flows
For The Year Ended December 31, 2016
Particulars
Amount (Tk.)
Cash Flows from Operating Activities
Net Income
Adjustment to Reconcile Net Income to Net Cash by
Operating Activities
Increase in Inventory
Increase in Prepaid Expense
Depreciation Expense
Decrease in Accrued Expense Payable
Decrease in Prepaid Expense
Loss on Sale of Plant Assets
Net Cash Provided By Operating Activities
Cash Flows from Investing Activities
Sale of Plant Assets
Purchase of Investments
Net Cash Provided By Investing Activities
Net Increase in Cash During The Period
Cash at the Beginning at the Period
Cash at the end of the Period
Amount (Tk.)
850000
(100000)
(50000)
400000
500000
300000
200000
1250000
2100000
700000
(900000)
(200000)
1900000
100000
2000000
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8. RECOMMENDATION
We have some backup solution to make our position strong in the market. But now we are
talking about the solution of the identified problems.
Social survey
As we have already surveyed about the market and found that our target market is not that much
concern about the pricing of the service. They want the quality service by which they can go or
return from the airport without any trouble.
Pricing policies:
It is true that customer quantity is limited. But to give them quality service we need a lot of
money. Bangladesh growing first but distribution of income is not high. We set higher price for
our chocolate. After reaching our break event we should minimize our price.
Competition:
As we all know that chocolate industry is a very competitive market. So we cannot avoid the
competition. Though now it is a unique service but in future there will be competitor. To avoid
competition from the future competitors, we have to give more emphasis on creating the brand
value. There are many brands that are so strongly positioned in customer mind that it is a
protection. For example, we can say about Nestle, Cadbury and Pran. They can easily follow our
product to downsizing us. So we have kept tracking our competitors and more emphasis on
different promotional activities.
Technology:
Use as much as new technology for production that’s keep us update.
Innovation: We have keep come with innovative products all the time and explore new market
or identify the customer demand.
9. CONCLUSION
In this whole project we have tried to give a plan to establish the NUMMY Chocolate for which
we have heavily emphasized quality, then on promotion, activation and product line extension.
We hope that after implementing this whole idea we will be able to make “Nummy Chocolate”
the top most brands in our playground, capture a place on customer mind. Our vision is to “Build
a strong place in Market as a Market specialist”. We are new incumbent in this industry .We
hope our project is a profitable one and expect the public demand for our product and service.
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The business is changing globally in today’s world. Formerly, a business’s main motive was
profit. Since business world is developing, there are many other intentions or goals of an
organization. One of the most important goals is survival which requires growth. So, to stay in
the business, any company should highlight on introducing new products or services which can
create competition in the market and can make consumer’s life easier as high competition
decreases price. Producing and introducing a new product or service is not that simple.
Launching a new product or service is not only uncertain but also a little bit complicated. But, to
keep up with the latest business world, any company should think about introducing new
products or services. If we need to enjoy profit we need to introduce a new product which needs
a marketing plan to start with.
The term paper we worked on shows up a new marketing plan of a new service which idea is
created by our group. So, in this paper we have come up with a new and stimulating idea and
also tried to do a theoretical analysis of the market. The company and brand name was made-up.
Although it has been based on totally hypothetical analysis, we have tried our level best to
explain the situation in the light of real life.
1.1 The Industry
We want to enter into the Confectionery industry which is very big and profitable industry with
lots of competitions. We are talking about chocolate industry which is dominated by domestic
and multinational companies but still there are some opportunities or segment that was not served
by those companies. We come to the industry with an innovative idea and with new test or
experience for different segment which has not been explore yet by the exiting company. But we
have to compete with company like Nestle, Cadbury Pran and many more.
Domestic producers hold strong positions in nearly all consumer goods categories due to lower
prices, making it difficult for multinational companies to compete. As a result foreign companies
in Bangladesh are mainly targeting the growing urban middle class population. Additionally,
multinationals are capitalizing on Bangladeshi consumers’ perception that foreign brands provide
better quality.
Multinationals also benefit from growing demand for higher quality processed food.
Bangladeshis mostly consume basic staple foods, but with urbanization, rising income and
increasingly busy lifestyles, consumer preferences are shifting dramatically. Bangladeshis are
increasingly consuming quality processed foods such as sauces, jams, noodles, soft drinks, juices
and dairy products.
All consumer categories performed strongly in Bangladesh over 2009-2013. Packaged food was
valued at US$9.8 billion in 2013 after registering a CAGR of 20% from 2009. Dairy (CAGR
37%), baby food (CAGR 31%), noodles and pasta (CAGR 28%) and confectionery (CAGR
25%) performed exceptionally well. Overall packaged food sales are anticipated to grow at a
CAGR of 17% over 2013-2018, reaching a value of US$21.2 billion in the latter year.
1
Soft drinks market value amounted to US$235 million in 2013 after registering a CAGR of 18%
in value terms since 2009. Juice (CAGR 23%), bottled water and sports and energy drinks (19%
CAGR each) and carbonates (16% CAGR) were the most dynamic soft drinks categories. It is
forecast that soft drinks will see a value CAGR of 15% over 2013-2018.
Retail trade is a traditional business in Bangladesh, although modern retail constitutes only
around 10% of total sales. However, the situation is changing, and the revenue of modern
retailers increased by 15% annually over the review period, twice exceeding the growth rate of
the overall retail environment. It is also anticipated that the turnover of modern retailing will
increase 4-fold by 2020, reaching US$37 billion.
1.2 The Company
Tag Line: “Think chocolaty. Live Chocolate”
The company will start its’ journey in Bangladesh in 2016 with the name of “Nummy chocolate
Limited. Nummy chocolate is always concerned about the quality of service. And also values the
necessities and desires of the customers. In Bangladesh chocolate industry are candy bases and
children centric. Not segmented but different segment have their individual test and demand. By
research Nummy chocolate Limited feels the demand. Nummy chocolate Limited come up with
a chocolate for elder. For young generation specially, age above 15. First, we come up with 5 or
6 product lines for different segmented people and operate our business in Dhaka, Chittagong
and Sylhte, Khulna. After create market positioning, we will reach every corner in Bangladesh.
Company’s Vision: “Build a Strong Place in Market as a Market specialist”
Company’s Mission: “To Share Happiest Experience.”
Company’s Objective: “To Capture Different market as a Specialist”
Company’s Goals: “Eat Healthy, Keep Yourselves Nutrients”
Beside our chocolate we also open retail Chocolate shop in Dhaka, Chittagong and Sylhte to
reach end customers and build profitable relationship with them. In our Nummy chocolate shop
we will sale raw chocolate where customer can choose their ingredients as they like.
Nummy chocolate has a massive team of active workforce and creative researchers always
sacrifice themselves in company’s development by adding up new types of ideas for service.
Because of their generous attempt, today this company has started the first service Nummy
chocolate which get good response and popular within a very short time in Dhaka when we
conduct some test marketing and research work.
2
1.3 Experience
“Nummy chocolate” We do not sales products, we share experience. As a marketer, our principle
is to influence elder and young consumers to experience our product. As it is a brand new
experience for new segment in our country, we need to attract customers by promoting and build
strong brand. We have an active research team working hard on determining the market demand
and on the root of this market research we launched this service. To reach and know our
customer we divided our market into small segment. We start with a six experience for different
segment. Now we describe our experience.
All of these products are created based on research work. According to these and hundreds of
other scientific studies, by eating dark cocoa you may experience these benefits:
Diabetic Chocolate:
The total number of diabetic patients in Bangladesh is now around 1 crore. There are millions of
peoples who have chances of diabetics. So we want to introduce chocolate experience for them
because research shows that dark chocolate help the body utilize sugars better thus reducing
diabetes as well as decreasing the complications of diabetes – vision problems, amputations and
kidney problems. They will be our target customer.
Heart Beat:
Prevent the formation of blood clots, which can lead to heart attacks and strokes
Increase the flexibility of blood vessels in order to lower blood pressures and decrease the stress.
People who suffer for high blood pressure and involve with stressful job are our target customer.
Smooth:
Dark chocolate improve the quality of your skin Cacao: Nature’s Supreme Antioxidant Source.
Nut is also good for smooth skin. So we use the combination of Dark coco and Nut.
Love CoCo:
Now, researchers have found that eating dark chocolate causes the brain to release same
endorphins, chemicals when people feel love. So we introduce “Love CoCo” as a token of love.
We will use strong flavor in that types of chocolate.
O Degree:
Dark chocolate Help with weight loss by decreasing appetite. A person’s who concerned about
fatness or can’t eat chocolate for extra fat. They will be our target customer.
Joy:
The ingredients might make the texture, smell and flavor of chocolate more enjoyable and
combine with other ingredients like caffeine to make a person feel good, researcher Daniele
Piomelli speculated. Everyone can enjoy this product for any kind of calibration.
By segmenting chocolate market into different segment we can reach to every customer and
fulfill their demand and know their want. Existing company follow mass marketing, one product
for one. So they miss the different segment and customer demand. That’s why we grab the
3
opportunity to serve different segment. We create different market in chocolate industry with
new tested experience for different segment.
1.4 Gallery
“Life is like a box of chocolates, you never know what
you're gonna get”
4
1.5 Experience (Product) levels
We know every product and service has five different levels. Like every service “Nummy
chocolate” also has some levels.
Core benefit: The most important reason behind buying anything is the core benefit of
the product or service. When a consumer buy anything at first he/she looks for the core
benefit of the product. Nummy chocolate limited is very alert about the core benefit of
the service. “Nummy chocolate” providing experience and happiness to our customer
which is not tested yet.
Basic/Actual product: Actual / basic product are that product which requires getting the
core benefit. Here the basic or actual product is the convenience in transport that can
meet the customer demand. We have brand name, quality level, and Chocolate present in
Box, Which has different design and feature.
Expected product: Expected product is the customer’s expectation about the actual
product. Now a day’s Customers are very aware of health, as our company goal, we
deliver healthy experience and keep them nutrients.
Augmented product: Augmented product is the additional benefits that are getting by
buying actual product or service. Every chocolate wrapped with a foil paper and every
chocolate would carry some massage like which is minimizing the post purchase conflict.
We should give more importance on augmented product. So, we are trying to give more
improved features with the service.
Potential product: Potential product is those that are naturally not available and the
customers have no idea about that product. After creating brand positioning we will focus
on potential product to delight our customer.
1.6 Market Segmentation and Targeting:
Now we will describe market segmentation under the umbrella of age, gender, occupation,
income, location, social class, lifestyle, personality and behavioural variables:
Nummy Chocolate Company offers best quality chocolate with different packages to customers
at a very competitive price. Depending on the market researcher’s information and considering
each segment have their own test and preference
Age: We divided into two part under15 and above 15. Primary target was only the adult
generation.
Gender: Both man and women are the target market for the market. But now we have product
category for women, soon we will launch a chocolate for man, “smoky”.
Occupation: we have a product that can minimize pressure and stress. Also we will charge high
price so the occupation play a big role.
Income: We maintain quality and produce healthy experience. So priced our chocolate little bit
higher which can afford by the middle and higher class income people.
Location: As the research shows Dhaka, Chittagong and Sylhte people consume more chocolate
then other deistic. So we operate our operation on that part first. The company has emphasized
on Dhaka where more than half of total sales (52%) comes from only Dhaka.
5
Lifestyle: Diabetic patient are very much concern about their health and avoid sweets from their
daily food. We have a chocolate for them.
Social class: We will build a strong brand image on customer mind. So our chocolate will carry
some social class
1.6 Positioning
As we all know that transport service is a very competitive market. So we cannot
avoid the competition. Though now it is a unique service but in future there will be competitor.
To avoid competition from the future competitors, we have to give more emphasis on creating
the brand value. There are many brands that are so strongly positioned in customer mind that it is
a protection. For example, we can say about Nestle, though it’s a brand name but many of us
usually use this word to buy any kind of chocolate. Another example is Cadbury. It itself a
famous brand name. So, we‘ll give more emphasis on creating brand value. So that if people
think about chocolate, the first word that should arise in his mind “Nummy Chocolate”. And to
do this we have to give more emphasis on different promotional activities.
Point of Difference (POD): Point of difference is the attributes or benefits that consumers
strongly associate with a brand. For Mimi chocolate the points of difference are:
Most people of the target group is aware of the product
An emotional attachment exists towards the product
Unique Flavor (dark Chocolate)
Point of Parity (POP): Points of Parity are the characteristics that are not unique to brands but
may be shared with other brands. For Mimi chocolate the points of parity are
Taste: As we say we provide bark chocolate experience to our customer. In Bangladesh,
we are the first company to introduce our market to the dark chocolate. So taste wise it
very good, new to the market and moreover it’s very good for health
Quality: As we promise earlier, we will provide best quality in Bangladesh. We want to
be a market leader based on our quality. We import cacao beans from Mexico. Which is
world best coco beans producer and we follow Belgium chocolate style. So quality wise
we are the best company in Bangladesh.
Packaging: We present our chocolate in different shape of box, as we see in the gallery.
Every chocolate wrapped with a foil paper. Wrapping paper will be in different color on
feature of chocolate. So package wise we are the best in market.
6
2. THE MARKET ENVIRONMENT & STRATEGY
The chocolate market is full of computation. There are some Domestic companies and
Multinational Companies who already create brand positioning and control the market. But these
companies has diversify product. Neither of them are specialist on chocolate industry. But our
company has only one types of product Chocolate. So we have a chance to prove our self as a
chocolate specialist in consumer mind. Today there is no market without competition. If we have
to create a brand position, we should have quality product and come up with innovative idea and
new test for customer. We think we have both qualities to success. Now we use some tools to
evaluate the market condition.
2.1 Porter's Five Forces Model
I. Bargaining Power of Buyers: Low
Bargaining power of the Buyers is very low as they have not much option. There are pricing
issues, competitor issues and others as well. So buyers can’t switch whenever want. So the
bargaining of the buyers is low
II. Bargaining Power of Suppliers: Moderate
As a new comer the distribution channel is not so strong. We import cacao beans from Mexico.
Price of the raw material is not fully in our control. So here, bargaining power of the suppliers is
moderate.
III. Threat of Substitutes: Low
The product type itself is unique. There may be different competitors but no substitute. So the
threat of substitute is low.
7
IV. Threat of New Entrants: Moderate
New company can come into the picture but the possibility of coming is not high. There are
already foreign brands which are having strong hold in the market. Nummy Chocolate limited
will create some entry barrier such as switching cost are high.
V. Industry Rivalry: Very High
Industry rivalries are very high because we have to compete with established and large
companies. Some of them are domestic and multinational companies who have vast experience
in this sector and brand positioning in market.
But there are some competitive strategy is to find a position where the company can defend itself
against these forces or influence them in its favor.
Generic strategies
Industry Force
Entry Barrier
Buyer Power
Supplier Power
Threat of substitutes
Rivalry
Cost Leadership
Differentiation
Focus
Ability to cut price in
retaliation deters
potential entrants.
Ability to offer lower
price to powerful
buyers.
Customer loyalty can
discourage potential
entrants.
Large buyer have less
power to negotiate
because of few close
alternatives
Focusing developing
core competencies
Large buyers have
less power to
negotiate because of
few alternatives
Supplier have power
because of low
Better able to pass on volumes, but a
Better insulated from supplier price increase differentiation
powerful suppliers
to customers
focused firm is better
able to pass on
suppliers price
increase
Customer’s become
Specialized products
Can use low price to
attached to
& core competency
defend against
differentiating
product against
substitutes
attitudes, reducing
substitutes
threat of substitutes
Rivals can’t meet
Better able to compete Brand loyalty to keep differentiation
on price
customer from rivals
focused customer
needs
8
2.2 SWOT Analysis
SWOT analysis is very impotent for a new comer. As a new comer in chocolate industry, we
have to know our internal and external environment of market. According to this we will set our
strategy.
Strength
Core competencies in key area
Well-conceived functional area strategies
Proven Management.
Good research team
Cost advantage
Better advertising
Selling products directly to the customers
Higher responsiveness to customer demands
Quality and Healthy chocolate.
Weakness
Moderate supplier bargaining power
No partnerships or strong relationships with computer retailers
Week market image
Too narrow product line
Lacking of fund
Week brand value
Opportunities
Ability to serve additional customer
Expand product line
Ability to transfer skill/technology to new product
Ability to serve foreign market
Complacency among rival firms
Ability to serve niche market
Ability to grow market demand
Threats
Entry of lower cost foreign competitor
Raising sales of substitute product
Slow market growth
Costly regulatory requirement
Vulnerability to recession and business cycle
Political instability
Industry Rivalry: Very High
Strong relationship of competitors with retailers
9
2.3 Ansoff’s Product-Market Grid
Reaching our break event point we will launch some new product for new market. Some time we
can follow our competitor product to satisfy our customer demand or to attack competitor. That’s
the strategy:
Market/Product
Existing Product
New Product
Expansion Grid
Market Penetration
Product Development
Joy
Diabetic Chocolate
Existing Market
Candy (in future)
HeartBeat
Smooth
Love CoCo
O Degree
Market Development (In future)
Diversification (In future).
Nummy Chocolate
CoCo Coffee
New Market
Children
CoCo cold drink
Smokey (boys)
Coco cookies
Coco Bread
2.4 Our Company Orientations
Competitor-Centered: NO
Competitor-Centered: YES
Customer-Centered
NO
Product orientation
Competitor Orientation
Customer-Centered
YES
Customer Orientation
Market Orientation
Customer and competitor both are very important in setting marketing strategies. If we follow
product orientation we will miss customer demand and competitor strategy. If we follow
customer orientation we will lose to our cogitator. If we follow competitor we will lost our
customer. So market orientation is the best police for new comer. For that we will track both
customer and competitor.
2.5 Strategic Positions (Market Nicher Strategies)
First few years we will follow Market Nicher Strategies to avoid the strong competitor in market.
For that strategy Market leader will not track us or not think us as a potential treat. In the
meantime we will build brand positioning, brand equity and brand awareness into the customer
mind .In considering competitive position from a strategic point of view we will follow three
main directions:
Developing and Building;
Maintaining and Holding;
Defending,
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3. PRICING
For marketing strategy we will sustain the market skimming. Our target is to grab the highest
revenue. And the target market is already set. Mostly upper and middle class will buy our
chocolate and will pay any price to have a supreme experience. So, we will still make a huge
profit. As our market is also very large and they are very much price sensitive so if we enter into
the market with fair rate compare to other competitors than definitely we will have competitive
advantages. We have 6 types of chocolate which has their own feature and quality. So our price
will start with 100 to 300 tk. After see the market response will launch family pack and mini
pack.
4. PLACE
4.1 Distribution Channel Option
Several distributing or marketing channel systems are seen in today’s market. These could be
Conventional marketing system: This is also known as Traditional Marketing System.
This is more appropriate for the conventional product. In this case, distributors are not
controlled by the organization but they have the independent ownership. For exampledifferent retail shop.
Vertical marketing system: This is opposite of conventional marketing system. When
manufacturer, wholesalers, retailer work under unified system or under sole ownership
system is called the vertical marketing system. For example- Transcom is the authorized
distributor of Philips. Transcom has no right to sell Sony or Samsung product.
Horizontal marketing system: When two or more unrelated companies work together to
sell the product is called the horizontal marketing system. For example-Brac Bank and
Brac University work as a Horizontal marketing system. That’s our backup plan.
Hybrid marketing system: Using more than one distribution system is called hybrid
marketing system. For example- Sony Company’s authorized distributor is Rangs. As
well as Sony product is also available in stadium market. So in this case Sony uses two
system is a same time. If our plan does not work we will co-brand with Belgium
chocolate company.
Beside our chocolate we also open retail Chocolate shop in Dhaka, Chittagong and Sylhet
to reach end customers and build profitable relationship with them. In our Nummy
chocolate shop we will sale raw chocolate where customer can choose their ingredients
as they like.
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5. PROMOTION
5.1 Choosing Media
For our young generation media is very important. We have to select our media very carefully
since we are spending huge amount of money for research and development. Moreover as it is a
complete new product, we must set up a huge budget. So we have to spend a huge amount of
money for market promotion as well. We will use all three promotional activities; ATL, TTL and
BTL Any failure of any of the Medias may lead to a drastic and unrecoverable loss. So we have
selected our media of market promotion at the points below:
I. Printed Ads:
Printed Medias like- Newspapers and Magazines which are very important Medias that can reach
our target customers. It is less costly as well. Most of our target consumers are involved in
reading newspapers and magazines
II. Television:
As we all know Television is very popular among people of all stages and levels, especially the
household consumers. But most of our target customers do not get information via television.
Still, we will allocate some amount in television commercials. We will use humor and musical
appeal
III. Radio:
Now-a-days Radio is a very common media among the youth and also among the others in our
country. Radio stations like Radio Foorti, Radio Today, and Radio Amar have gained much
popularity in Bangladesh. Radio is cost effective and less costly than television. We will contact
the most famous radio stations and will consider the most popular show
IV. Internet:
Now-a-days youth are getting addicted to internet. And it is also used in every workplace. If we
give advertisement on different internet site like Msn, Yahoo, Google, Facebook, Bd-jobs and
other social networks, then our promotion will run very fast.
V. TTL (Through the line):
In case of outdoor advertisement we can use billboard which is a very popular media now-adays. Moreover we will use point of selling branding, shop sign, hording and trading incentive.
VI. BTL (Below the line):
Beside promotion we will arrange some Chocolates fair, road show, indoor out-door events,
concert, fashion show, cultural show, exhibition and reality show as well. For this customer will
associate with our brand.
VII. Games Sponsor:
Firstly, we will sponsor some indoor games and promote our own national games.
We will also give Liflate to the hospital, fitness centre and also promote our chocolate in movies
or drama
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6. BRANDING
Such advertising campaigns can help to create name recognition, brand knowledge and may be
even some brand preference. However, the fact is that brands are not maintained by advertising
but by the brand exercise.
6.1 Brand Equity
To build brand equity, there are several kinds of marketing processes:
Personalizing Marketing strategy: We will combine of experimental marketing,
permission marketing and on to one marketing by arrange event and by store branding.
Brand spokesperson strategy: As a brand ambassador we try to contract with “Pro
Abdullah Abu Sayeed” or “Anisul Haque” or “Muhammad Zafar Iqbal”.
Green marketing: We devolved and promotion of product that are environment friendly.
Social Marketing: We will arrange anti-smoking campaign and social work for street
children.
Sponsorship Marketing: Firstly, we will sponsor some indoor games and promote our
own national games.
Buzz Marketing: Marketing our chocolate through word of mouth process by the
marketers to customer and to customer to customer.
6.2 Brand Management:
Brand management is the process to identify and establish brand position, to plan and
implementation marketing program in order to apply brand performance
Step-1 Identifying and Establishing Brand Positioning and Values:
We have a goal, will create image. For positioning we will consider mental map, competitive
advantages, POD and brand Mantra.
Step-2 Plan and implement Brand Marketing Program:
To design brand marketing program we will us Brand element, marketing mix and Brand
association.
Step-3 Measuring and Interpreting Brand performance:
Effectiveness and performance of marketing program will evaluated by Brand value chain,
Brand awareness, Brand attitude, brand attachment and Brand Audit.
Step-4 Managing Brand Equity:
Managing brand within the context of others brands.
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7. FINANCIAL PART
7.1 Variable and Fixed cost
Total Fixed costs of Nummy Chocolate
Fixed Costs
Chocolate Coating Machine
Chocolate Tempering Machine
Melters
Others Chocolate Equipment
Administrative Cost
AC
Generator
Furniture
Computers
Other Fixed costs (Rent, Car, Salary etc.)
Total Fixed Costs
Variable costs of Nummy Chocolate
Variable costs
Cost of good sold
Production Supplies
Labor salary
Fright Out
Advertising Expense
Total Variable Expense
Amount(Tk.)
800,000
800,000
300,000
100,000
200,000
50,000
50,000
100,000
100,000
500,000
30,00,000
Amount(Tk.)
10,00,000
300,000
100,000
50,000
50,000
15,00,000
7.2 Break Even Analysis
The break-even point in any business is that point at which the volume of sales or revenues
exactly equals total expenses -- the point at which there is neither a profit nor loss -- under
varying levels of activity. The break-even point tells the manager what level of output or activity
is required before the firm can make a profit; reflects the relationship between costs, volume and
profits.
We consider our business life time 5 years (average).
The Fixed Expense = 3000000 Tk.
The Selling Price per unit = 200 Tk. (Approximately)
The Variable Cost per unit = 75Tk. (Approximately)
Break Even Quantity = Fixed Cost/ Sales per unit – Variable Cost per Unit
=3000000/ (200-75)
=24000 units
14
Break Even Sales = Break even unit × selling price per unit
= 24000*200
=4800000
This means, we need to sell 24000 units of products or TK.4800000 sales to have a break even
situation. The Break Even Chart is given below:
Fig: Break Even Chart
7.3 Income Statement
Nummy Chocolate
Income Statement
For the year ended December 31, 2016
Particulars
Sales
Sales returns and allowances
Net Sales
Cost of goods sold
Gross Profit
Operating Expenses:
Selling Expenses
Administrative Expenses
Total operating Expenses
Income before Interest & Tax
Others Expenses
Income before Income Tax
Income Tax Expense
Net Income
2016
40,00,000
(100,000)
3900,000.00
(16,00,000)
23,00,000.00
6,00,000
3,00,000
( 900,000)
140,000.00
(400,000)
(1,000,000.00)
(150,000)
850,000.00
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7.4. Balance sheet
Nummy Chocolate
Balance sheet
December 31, 2016
Particulars
Amount(Tk.)
Assets
Current assets:
Cash & Investment
Supplies
Receivables
Total Current Assets
Property, Plant & Equipment:
Chocolate Coating Machine
Chocolate Tempering Machine
Melters
Computers
AC
Generator
Furniture
Others Chocolate Equipment
Total Property, Plant & Equipment
2000000
50000
200000
2250000
800,000
800,000
300,000
100,000
50,000
500,000
100,000
100,000
50,000
2800000
Total Assets
5050000.00
Liabilities & Owner’s Equity
Current Liabilities:
Accounts Payable
Notes Payable
Total current Liabilities
Long Term Liabilities:
Bank Loan
Total Long Term Liabilities
Owner’s Equity
Owner’s Capital
Add: Net Income
Less: Owner’s Drawings
Total Equity
Total Liabilities & Owner’s Equity
100000
100000
200000
2000000
2000000
2200000
850000
200000
2850000
5050000
16
7.5 Cash Flows
Nummy Chocolate
Statement of Cash Flows
For The Year Ended December 31, 2016
Particulars
Amount (Tk.)
Cash Flows from Operating Activities
Net Income
Adjustment to Reconcile Net Income to Net Cash by
Operating Activities
Increase in Inventory
Increase in Prepaid Expense
Depreciation Expense
Decrease in Accrued Expense Payable
Decrease in Prepaid Expense
Loss on Sale of Plant Assets
Net Cash Provided By Operating Activities
Cash Flows from Investing Activities
Sale of Plant Assets
Purchase of Investments
Net Cash Provided By Investing Activities
Net Increase in Cash During The Period
Cash at the Beginning at the Period
Cash at the end of the Period
Amount (Tk.)
850000
(100000)
(50000)
400000
500000
300000
200000
1250000
2100000
700000
(900000)
(200000)
1900000
100000
2000000
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8. RECOMMENDATION
We have some backup solution to make our position strong in the market. But now we are
talking about the solution of the identified problems.
Social survey
As we have already surveyed about the market and found that our target market is not that much
concern about the pricing of the service. They want the quality service by which they can go or
return from the airport without any trouble.
Pricing policies:
It is true that customer quantity is limited. But to give them quality service we need a lot of
money. Bangladesh growing first but distribution of income is not high. We set higher price for
our chocolate. After reaching our break event we should minimize our price.
Competition:
As we all know that chocolate industry is a very competitive market. So we cannot avoid the
competition. Though now it is a unique service but in future there will be competitor. To avoid
competition from the future competitors, we have to give more emphasis on creating the brand
value. There are many brands that are so strongly positioned in customer mind that it is a
protection. For example, we can say about Nestle, Cadbury and Pran. They can easily follow our
product to downsizing us. So we have kept tracking our competitors and more emphasis on
different promotional activities.
Technology:
Use as much as new technology for production that’s keep us update.
Innovation: We have keep come with innovative products all the time and explore new market
or identify the customer demand.
9. CONCLUSION
In this whole project we have tried to give a plan to establish the NUMMY Chocolate for which
we have heavily emphasized quality, then on promotion, activation and product line extension.
We hope that after implementing this whole idea we will be able to make “Nummy Chocolate”
the top most brands in our playground, capture a place on customer mind. Our vision is to “Build
a strong place in Market as a Market specialist”. We are new incumbent in this industry .We
hope our project is a profitable one and expect the public demand for our product and service.
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