Grand Finale of Brandwitz 2015 had two parts, designing a business model & creating a marketing campaign. Team 360 Degree designed a business model of a rural e-commerce of Bangladesh. This is the slide of the business model part of brandwitz 2015 Grand Finale. The business model carried 25% of the total marks. The brief of the business model has been attached in the slide.

1. TEAM 360 DEGREE
2nd Runner Up
Brandwitz 2015
Organized by: IBA Communications Club &
Access to Information (A2I)-Prime Minster’s Office

2. BRANDWITZ’15: GRAND FINALE (Part-1 Weightage25%)
Brandwitz '15

3. Team 360 degree
Azizul Hasan
Asif Ahmed Tonmoy
Sabiha Sultana
Safwat Ahmed

4. Rural E-Commerce business model

5. Situation analysis
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47.5% of the total
population is
directly employed in
agriculture.
4547 UDCs are
working actively in
Bangladesh.
Uses 3rd party e-
commerce sites.
Do not have a
centralized e-
commerce system
& monitoring board.
Signed MoU with 3rd
party payment
method and courier
services.
Idea of e-commerce
is getting more
popularity in urban
area than rural
area.

6. Value proposition
Use of a well-defined e-commerce system with personal control
and monitoring will ensure better management of the system with
improved delivery to the customers from both ends.
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7. Digital baazar
aazar
www.digitalbaazar.gov.bd *2021#

8. Market
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9. Market Type
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Market
B2B
B2C

10. Market
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Market
Local Producers of perishable and
non perishable goods within the
union
Consumers from any part of the
country and abroad

11. Business description
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12. Nature
Nature
Product Sales and Service based business
UDC acts as intermediary between
producers and consumers
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13. Market plan
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14. service
Provides buyers with required products, available price, product
description, freight service, UDC location.
Provides sellers with online marketplace, security of reasonable price,
connection to potential buyers
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15. industry
Service industry
Creating opportunity for fair trade
Ensuring right price for producers and consumers
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16. customer
Producers from rural
areas
Consumers from rural,
sub-urban, urban areas
and abroad
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17. competition
Local wholesaler Private e-commerce Other Intermediaries
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18. Position in the marketplace
Comparatively New Entrant
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19. image
A local body reducing the deprivation of root level farmers
from getting right price of the product, also providing a
convenient platform for both producers and buyers to get
their desired products.
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20. pricing
Fixed transaction rates for all UDC around the country depending on each
product category. The pricing will be decided by elected governing body.
Different transaction fees for perishable and non perishable items.
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21. Market goals
Long term
Be the market leader in e-
commerce
Ensure reasonable price
Short term
Acquire producer and consumer
market share through creating
awareness
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22. Marketing strategy
Producer
End &
Customer
End
Door to Door Campaign
Monthly Producer Meeting with UDC
Monthly Consumer Meeting through video/audio conferencing
Feedback over phone/mobile from consumers
Newspaper
Radio
TVC
Promotion through Service Portal (services.portal.gov.bd)
Promotion through Facebook page and YouTube channel of A2I/Service
Portal/Bangladesh.gov.bd
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23. Operating plan
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24. USSD SERVICE
২০২১
SendClose
১। চিচিৎসা ও স্বাস্থ্য বস া
২। তথ্য ও প্রচতব দন
৩। চনব াগ
৪। প্রচিক্ষণ
৫। বেনিন
৬। a2i
৭। চ চনব াগ
৮। েূ ব তবী
৯। ের তবী
০ । বসচ িংস

25. Website (In Bangla & English)
aazar
Agriculture

26. DIGITAL BAzAR
(Operations Flow Chart)

27. Process (producer End)
UDC Agents
Aware & Get
Details from
Producers
Prepare Mass
Production
Schedule
Regularly Update
the Schedule

28. Process (Consumer End)
Go to
digitalbazar.gov.b
d or *2021#
Select Your
Product Type
Select UDC See Price List
Check Availability
Confirm Your
Order
Select Delivery
System
Pay Through M-
Banking
Process
Completion
Message
Received

29. Human resource
Per Union Parishad
Existing UDC entrepreneurs 2 Persons
Chairman of Union Parishad 1 Person
Local Monitoring Body ( Can be District Judge, Magistrate) 2 Persons
UDC Agents (will be chosen from respective Union Parishad) 5 Persons
ICT Unit 1 Persons
Central Operational
Unit
Central Monitoring Board 6 Persons
ICT Unit (For maintenance of website, database, etc) 10 Persons
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30. Key Resource & planning
4547 UDCs and its electronic gadgets
Infrastructure of UDC
Growing demand of rural products
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31. Record keeping
UDC
ICT Unit
Central
ICT Unit
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32. Brandwitz '15
Inventory:Just-in-time
approach

33. Payment Terms
In consumer end
Mobile Banking
Only in producer end
under special
circumstance
Cash
Every monetary
transaction will be done
with an E-Receipt
E-Receipt
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34. Hours open
Orders can be placed 24/7
online
Order Placement
Response will be given
within 8:30 AM to 6 PM
Response
Delivery time will depend
on the 3rd party affiliated
delivery system
Delivery
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35. Financial plan
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36. Revenue model
Transaction Fee Revenue Model
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Why? : Because subscription model will not be able to attract both producers and
customers as they will not be interested to pay a pre-determined fee.

37. Start up expense (central cost)
Database Management System 50,00,000 tk
Website 2,00,000 tk
USSD Installation 1,00,000 tk
Total 53,00,000 tk
Total Cost Per UDC (4547 UDC) 1165 tk
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38. Sales (1 Year Per UDC)
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Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Perish
able
80,000 80,000 50,000 70,000 80,000 120,00
0
120,00
0
80,000 90,000 110,00
0
130,00
0
120,00
0
Non
Perish
able
20,000 20,000 20,000 35,000 35,000 40,000 35,000 35,000 25,000 35,000 30,000 20,000
Transaction Fee
Perishable Goods 5% of total sale
Non Perishable Goods 10% of total sale
Perishable 11,30,000 tk
Non Perishable 3,50,000 tk

39. Cash out for goods (1Year Per UDC)
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Total: 74,500 tk
Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Packaging 2,000 2,000 2,500 3,000 3,000 3,500 3,500 4,000 4,000 4,500 5,500 5,500
Miscellaneous 2,000 2,000 2,500 2,500 2,000 2,000 2,500 2,500 2,500 3,000 4,000 4,000

40. Cash out for operating (1 Year)
Per UDC
Type Amount
Yearly Salary (10,000X 6 personsX 12
Months)=720,000
Yearly Salary 2 PersonsX12
monthsX18,000 tk=
432,000
Utility Bills 12 monthsX15,000=180,000
Total 13,32,000
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Central Cost
Marketing Cost 100,00,000 tk
Maintenance Cost 10,00,000 tk
Total Cost Per Union
Parishad (4547 Union
Parishad)
2221 tk

41. Net income (per UDC)
Total Sales 14,80,000 tk
Cash Out For Goods (74,500)
Cash Out for Operating (13,32,000)
Start Up Expense (1,165)
Earning Before Tax 72,335
VAT( 0%)* 0
Net Income 72,335 tk
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* On June 30,2015 Government decided not to impose 4% tax on e-commerce as proposed in the budget of FY2015-16

42. Why are we different?
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After
Sales
Service
Feedback
Problem
Discussion
Suggestion

43. Re-investment strategy
A portion of total revenue will be used for business expansion to:
• Maximize service quality
• Incorporate more services as par requirement of each UDC
• Expand the infrastructure facility and expand human resources if needed
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44. brandwitz '15
Monitoringand Evaluation

45. Monitoring & Evaluation
47.5% of the total
population is
directly employed in
agriculture.
4547 UDCs are
working actively in
Bangladesh.
Uses 3rd party e-
commerce sites.
Do not have a
centralized e-
commerce system
& monitoring board.
Signed MoU with 3rd
party payment
method and courier
services.
Idea of e-commerce
is getting more
popularity in urban
area than rural
area.
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46. brandwitz '15
Challenges & feasibility

47. brandwitz '15
Financial Challenges
The business targets the mass population of
Bangladesh and the number of transactions are
huge.
Recommendation
• All the transactions should be updated in the E-
Ledger.
• E-Receipts will be given so that authority can observe
every monetary transaction.

48. brandwitz '15
Marketing Challenges
Diverse Target Group
Recommendation •Target group has been segmented as per service and need of awareness

49. brandwitz '15
Administrative & ManagementChallenges
Difficulty of collaboration among different partners.
Recommendation • Monitoring and coordination from the central unit

50. brandwitz '15
Synergy

51. Takeaways
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52. Thank You
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