June 23, 2013

Assignment On Doing Business in Bangladesh with new product



Introduction

Caning food and business history

Caning food is a new product for Bangladeshi people . Canning is a method of preserving food in which the food contents are processed and sealed in an airtight container. Canning provides a typical shelf life ranging from one to five years, although under specific circumstances a freeze-dried canned product, such as canned, dried lentils. Caning food business is a world rewound business. there is a deep effect of can food in develop countries people ,so when caning food business start? During the first years of the Napoleonic Wars, the French government offered a hefty cash award of 12,000 francs to any inventor who could devise a cheap and effective method of preserving large amounts of food. The larger armies of the period required increased and regular supplies of quality food. Limited food availability was among the factors limiting military campaigns to the summer and autumn months. In 1809, a French confectioner and brewer, Nicolas Appert, observed that food cooked inside a jar did not spoil unless the seals leaked, and developed a method of sealing food in glass jars.



About the company

The Company “SMART Beverage Limited” established at 20rd March, 2012 by sk ahetesham ashamed ,  MD mainuddin shrif ,Ms. Samia Jannat. with a view to make the busy life easy and comfortable ensuring the best quality food products available in convenient form. In this regard our first concern will be can vegetable and can fish. Then we will be introduce other can food item . Now at this time to BRAND MAKING we have tried to assess the customers’ health conscious attitudes & their demand for various food for all the year.  Can food  is very much effective to maintain sound health. After conducting extensive research we are now going to introduce our new multi-purpose food product “SMART CAN” in the market.


COMPANY OVER VIEW

Name    SMART Beverage Food Limited.

Head office: 27 bijoy nagare suite c-1 phone 02-9612999,915632,fax 08344412
Factory: Chandra circle, union-atadah, kaliakair, gazipur
Capital 18 care
Employee 25
Worker 200
Our Mission

TO BUILD EVERLASTING RELATIONSHIPS WITH ALL CLIENTS THROUGH THE PROVISION OF CONSISTANT SUPERIOR QUALITY PRODUCTS AND THE FINEST SERVICE.




Goals
·         To set up and continue a high quality image in the beverage food industry.
·         To acquire the whole domestic market within three years.
·         To capture the international market at the end of the eight year.
·         We have an aim to reach break-even by third year.

Our Values

·         Quality Service
·         Integrity
·         Teamwork
·         Reliability
·         Loyalty
·         Social Responsibility
·         Transparency


Why Can Foods

Modern life is very much busy and people in the society are involved in their daily activities. Proper health is very much important to maintain daily activities perfectly. Now customers are looking for healthy food products which are easy to consume and also at reasonable price. For those people we introduce our new products can food as name ‘SMART CAN’. Our new product “SMART CAN” will give extra support in digestion process of human body. This is our primary reason to develop this new product.

Customer can consume our product for three purposes:
  • As a Healthy food
  • Easy to cook
  • Proper nutrition
  • They can direct eat

We will produce our product according to consumer’s purposes. This kind of beverage food product is not available in the market. So we think people will prefer our product. Customer preference is the secondary reason to develop our new product named “SMART CAN”.


At the last in our beverage food industry there is no food in can. For the first time we are introducing this kind of product. From this point of view we will get extra support to introduce this product.                    






Outline
“SMART Beverage Food Limited” is going to launch its new product 1st JUNERY 2014. Here is the outline of our total project:

Date
Task Name
Duration
Task done By
04.08.12
Documentation

01 month
founder, commercial

04.07.13.
Factory buildup

15month

developer company

04.10.13
Machinery import

03 month
commercial

13.10.13
Machinery setup, row collation

1 week
operation management

27.10.13
Ready  for production
 2 week
HR, operation,
28.10.13
Identify the launch team
1 Day
Administration
29.10.13
Determine sales objectives, Define launch goals
1 Day
Product Manager
31.10.12
Establish Launch Budget
2 Days
Product Manager
1.11.13
Define press release requirements
1 Day
Marketing Manager
2.11.13
Align product release timing with marketing plan
1 Day
Engineering Department
3.11.13
Testing new product concept
-----------
Research Team
4.11.13
Set target market, price

Product manager & Marketing Dep.
5.11.13

Production process start
--------------------------
Manufacturing Department
6.11.13
Establish sales channels
1 Day
Marketing Dep.
12.11.13
Hire and train sales staff
1 WEEK
HR Department
18.11.13
Hire and train product support personnel
1 WEEK

HR Department
24.11.13
Advertisement start through press conferences
4Day
Marketing Department
28.11.13
Meeting with channel members
2 Day
Product Manager & Marketing Dep.

Distribution Start
Till 31.12.13
Marketing Department

Launching “SMART CAN” into the market
--------------------------

Business development stage.

SMART Beverage Limited is a new company that just wants to start their business in Bangladesh with their new concept of product cans food.

 To establish this business we build our business development department and this department is control by our top level management .So what our activities to develop our business are? Those are:


Finance:

To establish our project we need 15core taka. The initial investment we made by our own fund to buy land, build plant and production. However, for future sustainability we need more financial support. In that case we ask investor to invest in our organization.  We also concern for bank loan and bond.

At the beginning of every financial year we do make a budget for our organization, we believe it will be supportive as well as show us path to meet the budget on that particular year. Our finance team is integrated with others sub department, for example human resource, business support and ICT.

In that scenario the human resource manager inform to finance manager about the total cost for recruiting people, addition staff, and training, promote staff. Secondly to support our business we will integrate our business with MIS (Management Information System). Where every individual are able get service from our organization about the matter related to our business. It could be industry news, events, job availability, CSR, think green and so on. We believe it is a strong business support from inside and outside organization perspective. Finally ICT (Information Communication Technology)  




Organ gram




Critical Risk Factors (SWOT)

SWOT is a very important tool for every business. As a business origination like SMART Beverage Limited we do our SWOT analysis As there are no other strong competitors in the market so it will be our Strength as well as the Opportunity to expand our business and capture as much as customers possible. Our weakness will be if our quality is not as good as the other can food manufacturing companies. Threat will be like any other company can join the market and provide better products.

Being a new company in the market it will be difficult for us to do the forecasting such as: economic forecasting, customer forecasting, market environment forecasting, cost forecasting etc. To be a leading company in the market we have to overcome all the risk factors in our way to do the business.

The SWOT analysis is given below:

Strength

Ø  Only company in the market.
Ø  First local company in this business.
Ø  Available resources.
Ø  New technology.
Ø  100% transparent to customers.
Ø  Protect the environment.

Weakness
Ø  New setup.
Ø  Unavailability
Ø  Insufficient production.
Ø  Unskilled employees.
Ø  Only Dhaka region based market at present time.
Opportunities
Ø  No other strong competitors.
Ø  Achieve huge target market in other country.
Ø  Dynamic change of food culture in our society.
Ø  Low quality of other available foods.
Threats
Ø  New for existing customer.
Ø  Anyone can enter into the market.
Ø  Not meeting quality product as desired.
Ø  Harvest Rich Group packing food product.
Ø  Previous food taking habit of people.
Ø  High switching cost for consumer.
Ø  Traditional food concept.



Organization life cycle

The organizational life cycle is the life cycle of an organization from its creation to its termination. And our business life cycle like. But our future plan is in decline stage we will be able to enter new business or set new product line.




Operation management department

Main target of operation management team of  SMART Beverage Limited is to produce quality full products for its customer .For that we need  machineries  and many kinds of raw materials also needed.


Machines:

For production we need to three types of heavy machines .we going to import that machine from CHINA and GERMAN our total cost will be $25000 and 30 types of supporting tolls and those cost total $10000 for production. But for future with demand of production and technology change may be we need more machine to import. Here are some picture of those machines and tools   :                  
.                                                                                                          
             
         






Raw Material Suppliers
Our main suppliers are different firms who provide raw materials, products & services to produce final product for the industry that we have chosen. Unlike other our organization also should limit the bargaining power of suppliers to have a competitive advantage.

We have the total control on our suppliers. Our primary raw material comes from rural areas whereby farmers are producing fruit, vegetables, fish commercially. Our supply chain department will maintain the liaison with them. After predicting our yearly/monthly demand we will support them financially to produce raw material for us. This competitive advantage is ensuring us for the fluent supply of raw material which helping us in our continuous production process without any back log.


Production process

Production process is a very important for every manufacturing industry. Now we will discuss about the procedures to produce our product. As a new industry in Bangladesh how or which method we will follow to produce our product it is very important to identify first.

The method that we have chosen have it own history and it is very simple. To prevent the food from being spoiled before and during containment, a number of methods are used:

Pasteurization, boiling (and other applications of high temperature over a period of time), refrigeration, freezing, drying, vacuum treatment, antimicrobial agents that are natural to the recipe of the foods being preserved, a sufficient dose of ionizing radiation, submersion in a strong saline solution, acid, base, osmotic ally extreme (for example very sugary) or other microbial-challenging environments.
Other than sterilization, no method is perfectly dependable as a preservative. For example, the microorganism Clostridium botulinum (which causes botulism), can only be eliminated at temperatures above the boiling point.
From a public safety point of view, foods with low acidity (a pH more than 4.6) need sterilization under high temperature (116-130 °C). To achieve temperatures above the boiling point requires the use of a pressure canner. Foods that must be pressure canned include most vegetables, meat, seafood, poultry, and dairy products. The only foods that may be safely canned in an ordinary boiling water bath are highly acidic ones with a pH below 4.6,[1] such as fruits, pickled vegetables, or other foods to which acidic additives have been added .

 The possibility of production Canned Fruit in Bangladesh

Bangladesh is a country of many seasonal fruits. In six seasons we get a lot of variety fruits. Like pineapple, orange, water melon, mango, litchi, guava etc. But it is a matter of sorrow that just for the transport facility a lots of fruits are rotten in the production district or in the road. Also in the season though the production is very high farmers are not getting  proper price. During the season a lot of fruits are available and cheap in the production district, so I want to built some canned fruit industries in those districts. Like one mango canned industry in Rajshahi district. In this way I want to built some canned fruit industries in our country. For better understand some design of production process of fruit canning are below. 


Fruit canning






The possibility of production Canned Fish in Bangladesh
Bangladesh is a country of many rivers abounds with natural resources most commonly with fishes. We have got a huge sea area for fishing at southern side of our country. It has around 200 nautical miles from Chittagong, Cox’s Bazar or Kuakata. Every year about 1.6 million Metric Ton fish has been caught and sold in local market. Most of them are dried to preserve for a long time. But to get the proper food value we want a modern fish processing and preservation system. As the fishermen and the poor people who are involved in fishing profession could not preserve and process their fishes in modern way, they had to sell them immediately. As a result they do not get proper amount of money by selling them. On the other hand if they can process and preserve their fishes in cane like developed country those can be exported in many countries and thus Bangladesh can earn a lot of foreign remittance. Also in our local market there is a huge demand of this canned fish. In this respect, for processing those fishes we can establish fish processing industries near the sea shore which will not only use for caning fishes, but also remove unemployment problem greatly. Besides these fish processing industries we should develop transportation system too, so that the processed/canned fish can be transported to the rest part of the country easily.
As we have a huge fishing area in the Bay of Bangle fishing could be a sport and a hobby with delicious prizes. But if fishing is not one’s avenue of feeling peace and serenity or thrill and excitement, s/he probably buys fish at the supermarket every now and then.
In this sense, we want to develop 3 to 5 cane processing industries in or near the coastal areas of our country where I can directly buy fishes from the fishermen and process them within a short period of time. It is also my big concern that the fishermen will be paid with a standard rate of their labour, which they would not gain before. My industries’ machine and equipment would be brought from China. These machines are not as heavy as used in big industries.
At the first stage I want to start with three types of cane fish. Firstly canned fish in Sunflower oil, secondly canned fish in Brain water and thirdly canned fish with Tomato sauce. These ingredients are available and also cheap in our country. I just want to give an example that how canned fish in sunflower oil can be processed. Naturally, it would be prepared with the ingredients in a proportion of; Fresh fish fillet 75%, cold pressed sunflower oil 24% and sea salt 1%.
If we can established that fresh sea fish is excellent for our health, the same attribute can apply in the ground of canned fish. If someone thinks canned foods are less nutritious than fresh one, actually they are not far from the truth. But caning may not be as bad as they think.
Caning foods is a very effective method of preservation. The process protects against the growth of micro-organisms and kills harmful bacteria, but the high heats used for canning rob foods of vast amounts of nutrients, especially vitamin C, Thiamine and Riboflavin which are sensitive to light. We can still benefit from the mineral supply of the canned foods, and the macro-nutrient nourishment may even be better than what we may find in fresh products. . For better understand some design of production process of fish canning are below. 




FOR Fish canning







Marketing and commutation

Today marketing is not only of selling or buying to produce. Marketing is a huge thing .For smart beverage ltd .Marketing is everything for us we want make our marketing department so strong and all time our top level management will observed our holy marketing department. At first time in Bangladeshi market we only introduce these types of product. So we deeply analysis the tool of 4p (Price, promotion, place, product).

Target market


The underlying purpose of any company’s placing activities is to make the product available to targeted consumers. In terms of launching new product a marketer needs to deals with following terms:


Our product is a mass product and our target is mass market. But we like to start our business with only DHAKA people and people from other country those come to  Bangladesh  So we will use undifferentiated marketing strategy. Market segment is out of our concern. With our new product we are now in at beginner stage. According to our market analysts we will follow “VERTICAL MARKETING CHANNEL STRATEGY”. According to expectation we will capture the whole domestic market within third year and in the mean time, our new product will reach to the growth stage. After crossing the break-even point we have a plan to establish our own distribution channel.

Storehouse & Transportations
Until reaching to the break-even point initially we will use our channel member’s storehouse. When we will able to set up our own distribution channel, we have a plan to build up own distribution centers. 
“SMART Beverage Limited” Will a strong transportation system, which is helping us to reduce our variable cost per unit.

Price

Price is the amount of money charged for a product or service or the sum of the values that consumers exchange for the benefits of having or using the product or service.

We are a new comer in the market, but our product is very much unique in the market and the market has a high perception about our product. So we don’t go for the cost base pricing which is mostly used for new product. We are going to use the value based pricing. We will consider our consumers perception of the product value at first.


Figure  Cost Based Pricing
Cost based pricing is product driven. The company designs what it considers being a good product, totals the costs of marketing the product, and sets a price that covers costs plus a target profit.


Figure Value Based Pricing
As we are using value based pricing, we will analyze consumers need and value perception and set price which match consumers. Under this pricing method we will charge 50 taka for 500 gm MIX vegetables can.


Price Related Some Financial Data:
At this price level our goal is to achieve break-even within three years.
Fixed Cost = 35,000,000
Selling Price Per Unit = 50 TK.
Variable Cost Per Unit = 43 TK.
                                              





                                                           35,000,000
50 - 43
 
Break – Even in Unit = ----------------------------------
 
                                  = 50, 00,000 Units





Promotion
Promotion means activities that communicate the merits of the product and persuade target customers to buy it. When designing promotional activities a marketer needs to concentrate on:




We are going to launch huge promotional campaign as we choose value base pricing method. The reason behind using this pricing strategy is that we are the pioneer of making SMART CAN (Health & SMART) so we can easily charge value base pricing. In our promotion strategy our main focus is extensive amount of TV advertisements which are informative. In our advertisements we will focus specially on the benefit of our new product to maintain proper health. As our product is in development stage, our budget is also very high for building awareness and gaining consumer trial. Beside this we will also highlight the use of newspaper and billboard advertising. As an effective promotional strategy we can also provoke the customers through in-store advertisement. We will use both PUSH-PULL strategies for the first six months.
Our product is effective for keeping good health. We will design our sales promotion activities by considering different health organization and hospital. We will try to persuade doctors to give suggestion to their patients that food “SMART CAN” in related case of health problem. We will provide handouts to consumers which will contain the information about the effectiveness of Can food as well as our product.

Research and development:

The task of our R& D department is to come up with the goods and services that meet the needs of tomorrow’s customer. However, today market it is very hard think without R&D. Our R & D team will continuously monitor market whether any new demand is creating in market. They also evaluate the performance of existing product whether to make any changes or remain same. Moreover, our R&D team has some back up strategy to launch new product also can create value by applying different method.

Future aspect of SMART BEVERAGE LTD:

To sustain our organization for long term we also need to implement more strategy in more competitive market. Therefore for future market we have fixed some plan. Such as
Ø  Build up strong supply chain management by own
Ø  Raise capital through stock market
Ø  Open a training department  for our farmers, where they shall provided free tips and suggestion
Ø  Open a campaign call “Live Smart”. The main purpose will be free health check up.


Recommendation:
It will not be so difficult to reach the targeted market and to make the profit if we can properly maintain the business process in a chain. At first we need to focus on proper set up. After getting ready with the business we need to promote and make the people aware of our product. We need to advertise our company with local newspapers, online message boards and throughout the community.
And also we need to main the quality during the production and serving the customer.

We also have a plan for future to expand our business globally as in Bangladesh there are plenty of resources related to our products. After getting a successful market here we will export our products to some selected countries.






Conclusion:

As a new business in our country there will be a lot of opportunity for us to make a permanent place in the local market. But in some cases difficulties are also be there. But if we can analyze the whole business process as mentioned above we can come with a wide range of hope for this business initiative.
If we can see the life style of Bangladeshi people, it has got a lot of changes in past few years. And most of them are strongly dominated by the satellite impression. Housewives are also getting smarter in many ways, so they preferred to buy simple processed food rather than to buy rational food available in the market. Students and service holder people are also get benefitted by this kind of simple and smart canned food. It will cut their time as well as reducing the food processing hours. So in a word it helps them to reduce the tension regarding their food.

By keeping the above things in our mind we have been started SMART Beverage Food Limited. We strongly believe that we can make the market for our business with our potential services to our customers. Also we hope our customers are ready there to welcome such a new product line to their daily food consumption.



References

  1. “Principles of Marketing” 11th Edition by Philip Kotler and Gary Armstrong
  2. “MANAGEMENY’’13TH by Stephen.Robbins and Mary Coulter
  3.  “Beverage Food Industry in Bangladesh” By BSTI (Published in 25th March 2006)
  4. Website of different company
  5. www.google.com


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