6. Company Overview
Name of the Business Mushroom Chips
Type of Business Partnership
Product Chips
Factory and Office Gasterbine Area, Rupatali, Barisal.
Area Served Barisal Division
Target People Rural Area’s people
7. Vision
“We want to be Bangladesh Number
One Chips Company.”
“We want to be number one chips
company in Bangladesh and create
strong relationship with our
supplier and ensure our customers’
health security by providing more
nutrition.”
Mission
8. Objectives
We want to be no # 1 Chips Company in Bangladesh.
After one month, we are collecting our sales review and
satisfaction level of our customers.
Diversification in our product line.
We want to create social value for position in customers mind.
9. Our Product Nutrition Facts of Our Product
Our Mushroom Chips contains high level of
Protein-15.53%, Fat-20%,Saturated fat-1.42%,
Carbohidrated-2.45%, Sugar-2.40%, Energy-
100gm, Colastrol-0%, Sodiam-.64%, which is
very much essential for specially kids and young
age people. Each and every process of the
production is done by home-made.
12. Segmentation
Demographic:
Age-5-12, 12-18, 18-24, 24 to others
and higher class, middle class and
mostly lower class people.
Product related:
1. Regular Customers
2. Irregular Customers
3. Negative Customers
13. MARKETING STRATEGY
Behavior Factors
User enjoys the food not only for health but as a taste
enjoyment.
User also spends money on food for different unique taste.
Market Trend
The policy makers has decide to offer different types of popular
cartoon and super hero characters stickers and tatus with per packet
of Mushroom chips for Children and purchase intensive to the
wholesale and retail for sell promotion.
14. MARKETING STRATEGY
Target Market
We have decided that children’s, teenagers and young people will be the target customers for our
product “Mushroom Chips”. Because, most of them prefer to consume this type of snacks in their
home, schools, theatres and so many places. As our product is a blend of taste and quality with proper
nutrition, we are hoping that we will be able to capture our target audience.
Positioning Strategy
We have decided to build strong customer relationships by providing better
quality products and we are hoping this will help us to create a positive image
in customers mind with unique potentialities.
17. Marketing Mix
• Mushroom flavor
• Potato flavor
• Hot & Spicy flavor
• Tomato flavor
Product
• 15 taka each packet for the salespersons.Price
• As we are new to the market, we want to make available our
products for rural area in Barisal customers through several
distribution channels. We will use different retail stores.
Place
• For the promotion of our products, we will use attractive
print ads, leaflets in the newspapers. Free sample of our
product will also be provided to the students of school,
college, and universities as a promotional campaign. Later on
we will think for TVC.
Promotion
23. Financial Plan and Budget
Item Amount
Plant and Machineries 5,00,000
Operative expense 4,00,000
Property 2,50,000
Miscellaneous Assets 1,70,000
Other expense 9,02,000
Contingency on Machinery 5% 25,000
Total Cost 22,47,000
Mushroom Chips
Cost of project
24. Item Amount
Member’s contribution 6,00,000
Bank loan 2,50,000
Long term debt 11,00,000
Other source 2,97,000
Total 22,47,000
Mushroom Chips
Source of Fund
25. Mushroom chips
Income statement
2017-18 2018-19 2019-20
Sales 15,00,000 16,00,000 17,50,000
Cost of goods sold 7,50,000 8,00,000 8,25,000
Gross operating income 7,50,000 8,00,000 9,25,000
Selling expense 1,50,000 1,65,000 1,80,000
General & Admin expenses 85,000 91,000 95,000
Depreciation 25,000 25,000 25,000
Other expenses 32,000 54,000 60,000
Earnings before interest and taxes 4,58,000 4,65,000 5,65,000
Interest expense 5% 12,500 12,500 12,500
Earning before taxes 4,45,500 4,52,500 5,52,500
Tax 35% 1,55,925 1,58,375 1,93,375
Net Income 2,89,575 2,94,125 3,59,125
26. Mushroom Chips
Balance sheet
2017-18 2018-19 2019-20
Assets
Cash in hand 2,50,000 2,70,000 2,60,000
Account receivable 4,30,000 5,60,000 5,10,000
Inventories 3,90,000 4,10,000 4,15,500
Others current asset 2,22,000 2,45,000 2,40,000
Total current asset 12,92,000 14,85,000 14,25,500
Property, plant & equipment 7,50,000 7,75,000 7,95,000
Accumulated depreciation 45,000 90,000 1,35,000
Other non-current asset 1,60,000 1,85,000 2,10,000
Total Asset 22,47,000 25,35,000 25,65,500
Liability & shareholders equity
Account payable 2,20,000 2,50,000 2,55,000
Short-term debt 60,000 65,000 75,000
Other current liabilities 2,65,000 2,95,500 3,00,000
Total current liabilities 5,45,000 6,10,500 6,30,000
Long-term debt 11,00,000 11,25,000 12,00,000
Bank Loan 2,50,000 3,00,000 3,20,000
Deferred Income Taxes 37,500 40,000 45,000
Other non-current liabilities 64,500 1,59,500 20,500
Total Liabilities 19,97,000 22,35,000 22,15,500
Shareholders equity 2,50,000 3,00,000 3,50,000
Total shareholders equity & liabilities 22,47,000 25,35,000 25,65,500
27. BREAK-EVEN ANALYSIS
Break even unit sales
Per unit sales 15
Per unit variable cost 7.615385
Per unit contribution 7.384615
Break even sales in unit 67,708.33
28. Evaluation of Possibilities and Pitfalls
Possibilities
There are many possibilities for our business. Such as
1. We have developed special packaging using compostable
materials.
2. It should help maintain the crispness and appeal to consumers
looking for healthier snacks with a smaller environmental
footprint.
3. Consumer can purchase this chips at a very low price than the
others.
4. We will develop promotional campaign so that consumers can get
proper information about our product.
29. Pitfalls:
It is a new product so we have some pitfalls
about this business. These pitfalls are
1. Our promotional cost is very high to
develop our business.
2. As we have borrowed a huge amount of
loan from bank and other sources so have
to provide high amount to repay the
interest.
3. Consumers may have lower sense of taste
and smell about the product.
Editor's Notes
Political Analysis:
In the political analysis, we feel that we have a great opportunity in the mushroom chips industry. As people are more aware of their health issue and government are encouraging local mushroom chips industries to produce healthy and different taste chips, we are very confident that our business will do extraordinary well in this sector. Also, government has lowered down their tax rates of mushroom chips industry which will help us to reduce costs. As we will produce our product in Barisal, we also hope that we will not have problem in exporting products other city in the future.
Economic Analysis:
In the economic analysis, Bangladesh has a lending interest rate for agriculture loan in between 4-9% in Govt. owned bank and around 9% in another bank, according to Bangladesh Bank. The inflation rate is around 7.5% according to World Bank group. Bangladesh government also encourage new healthy mushroom chips businesses by providing tax holidays for 5 years.
Social Analysis:
In the social analysis, people loves getting new taste chips in the grocery shops. To increase social awareness, we will make advertisement of our products. People standard of living is also increasing. And now we can see increase number of children buyers with their parent in grocery shops. So, mushroom chips products have a great future. Hence, our business will definitely succeed because of the demand in the local market.
Technological Analysis:
In the technological analysis, we will use digital machineries to produce our product without unhygienic tools to make it possible to check information on personal computers or cell phones for our product quality. We also use digital preheat oven, giant caps, cutting chips machineries, quality checker machine.
Strengths:
Without any touch of hand the product is made because of development of technological skills.
There are another strength of the company is distribution channels. Our distribution channel is very strong; relation of the supplier and resellers is very strong.
The product quality is more high comparative to the other competitors, because our main ingredients is Mushroom which is totally new flavor and taste and also work against for the cancer.
Because of our good relationship with supplier, reseller and for the good transportation facility our sale will be definitely increases. Our value delivery network is in strong position. We are having good relationships with our suppliers for a longer period of time.
Weaknesses:
Although the company is new, it has not established a brand or images in the market place this is the weakness for the product popularity.
Because of the new product and company importer skills are absence here that’s why we can’t includes any internal facilities.
For the first time the mushroom is exit in the market that’s why people can’t properly reliable to the product quality.
Financial problem is another weakness of the company like what will be the price Cost and investment.
Opportunities:
It’s an available product but of the new version of taste and quality create a new change of the customer taste.
For the technological changes and advances it’s easier to give any information and promotional activities to know the product popularity to the people.
If the government changes policies then it will be easy to access the product to the market.
Availability of the raw materials is increasing day by day which is help to produce more products.
Threats:
If government is increase the taxes and the political issues are not favor then it will be the threats for the company.
The product may not be accepted to the people then it will be the great threats for the company.
The product competitor rate is very high that’s why sometimes we are facing many competing problem, which can be a threats of the company.
Company establishment rules and regulation is strict that’s why sometimes to take any easy decisions are create complicated situations.
