An Assignment

On
Business plan of “Seen Chemical Industry Ltd.”

Course Title:Entrepreneurship

Course Code:MGT3135

Section:01

Submitted to
Sazzadul Hoq Farin

Senior Lecturer

Dept of BBA

Submited by
NAME ID

Raju Mia 2015110000113

Submission Date:30 May 2020

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Executive summary :

Seen Chemical Industry Ltd is partnership type business in which all partners invest equal share of capital in the

organization. Seen Chemical Industry Ltd is a growing chemical industry in Bangladesh and it has made the status

of growing detergent chemical market of Bangladesh. It is relentless in detection of business revolution and

development. Seen Chemical Industry Ltd first entered the Bangladeshi market back in 2018. In this very few time it

has cemented its place as one of the leading chemical industry in Bangladesh. It has created job opportunities for

many fresh graduates. Seen Chemical Industry Ltd also uses university going students as their agent and pay them

based on commission.

Business Description Segment :

Name of business: Seen Chemical Industry Ltd

Type of business: Partnership

Number of owner:03

Number of Employee:17

Phone Number:01311478880

Address:Ashkona,Dakshin Khan-1230,Dhaka,Bangladesh

Slogan: "Shine like Star"

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Sole Proprietorship
● A sole proprietorship is an unincorporated business with only one owner who pays personal
income tax on profits earned.
● Sole proprietorships are easy to establish and dismantle, due to a lack of government
involvement, making them popular with small business owners and contractors.
● Many sole proprietorships end up getting restructured into an LLC, in sync with the company's
expansion.

Partnership
● A partnership is an arrangement between two or more people to oversee business operations
and share its profits and liabilities.
● In a general partnership company, all members share both profits and liabilities.
● Professionals like doctors and lawyers often form a limited partnership.
● There may be tax benefits to a partnership compared to a corporation

Corporation
● A corporation is a legal entity that is separate and distinct from its owners. Corporations enjoy
most of the rights and responsibilities that individuals possess.
● An important element of a corporation is limited liability, which means that shareholders may
take part in the profits through dividends and stock appreciation but are not personally liable for
the company's debts.
● Corporations are not always for profit.

I choose Partnership because Two heads are better than one (mostly).Example-The Coen Brothers. Frank
and Orville Wright. Dave Packard and Bill Hewlett. Larry and Sergey. Rocky and Bullwinkle—well maybe
not them. But in most cases, having a great partner can multiply the amount of ideas, intelligence,
background, and experience your business can draw upon. We all need a good wingman or -woman.

INDUSTRIAL ANALYSIS

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 ⮚ Laundry Detergent market in Bangladesh is estimated to be worth TK.
1,20 crore (Powder, Conventional & Liquid combined)
Segment Market Share

Powder 60%

Conventional 10%

Liquid 30%

INDUSTRIAL ANALYSIS
⮚ Liquid market has grown at a 20% to 25% rate.
⮚ Of this, Powder segment has grown at rate of
40% this year. It accounted for only 15% of the detergent 3
years back.
⮚ In–home consumption of detergent has gone up from 30%, three
years back to 80% today.
⮚ Powder based drinks account for two thirds of detergent
Industry.
⮚ More than 80 % of sales happen through the unorganized
route – super shop, street corner shops and so on

⮚ SEEN Chemical Industries Ltd will produce Detergent Powder & Liquid.
⮚ SEEN Chemical Industries Ltd is going to make unique position in terms of
corporate presence with its advanced technology and the instrumentation
required to manufacture a detergent that is much better for utmost
customer satisfaction.
⮚ SEEN Chemical Industries Ltd will be an environment-friendly company
dedicated on sustainable development and corporate social responsibility, as
a service to society and preservation of nature.
⮚ SEEN Chemical Industries Ltd headquarter will be situated in Dhaka and it
would be having Satellite branches in major Metros

Why this Product?

⮚ Bangladesh currently produces about 10 million tons of Detergent, which is

about 9% of the world’s production of detergent.
⮚ Only about 17 percent of the chemical in Bangladesh are processed, which is
much lower when compared to countries like USA (65 %), Philippines (78%)
and China (23)%

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Factors Driving Demand for Our Product

⮚ 1) Changing age profile- A relatively larger share of mature population

which has the ability to spend on detergent
⮚ 2) Increase in income- The middle and upper middle income groups
growing at a faster rate than in developed countries resulting in higher
spending on detergent.
⮚ 3) Social changes- Increasing number of working women.
⮚ 4) Life style factors- Increasing fashion consciousness.
⮚ 5) Availability of Organized Retail outlets- These provide the much needed
forward linkages.

TARGET MARKET

Primary Market

⮚ Teens – More experimental

⮚ Youth – Experimental and more buying power
⮚ Working People
⮚ Housewives
⮚ Elderly people
⮚
Secondary Market

⮚ Travel Industry
⮚ Airlines, Railways and Local Transport Systems
⮚ Recreational
⮚ School, Colleges
⮚ Hotels, Restaurants, Bars etc.

Market Segmentation
⮚ Market segmentation is the process in marketing of
dividing a market into distinct subsets (segments) that
behave in the same way or have similar needs

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Variables Used for Segmentation
1) Geographic variables
2) Demographic variables
3) Psychographic variables
4) Behavioral variables

Market Segmentation Variables

Geographic
⮚ By leveraging the benefits of liberalization and integration of the markets of
the world, SEEN Chemical Industries Ltd will seek to serve both domestic
and international customers.
⮚ Metropolitan Cities, major cities/towns of the states.
⮚ Density of Area: Urban, Semi-urban, Rural.
⮚ Climate: Tropical

Demographic
⮚ Age – all age group
⮚ Gender – Both Male and Female
⮚ Family size - doesn’t matter
⮚ Education - doesn’t matter
⮚ Income – middle & high end consumer
⮚ Occupation – student, working and retired people
⮚ nationality/race – doesn’t matter
⮚ language - doesn’t matter

Behavioral
⮚ benefit sought
⮚ product usage rate
⮚ brand loyalty
⮚ profitability
⮚ income status

Psychographic

Personality Yes

Lifestyle Yes

Value Yes

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Attitude No
Major Competitor Analysis
⮚ Surf Excel flagship brand
detergent is a market leader in the
packaged detergent category.
⮚ Surf Excel with a market share of
57% offers to its consumers the
largest range of 3 detergent that
comprise Powder, Conventional
& Liquid.
⮚ Surf Excel Lemon Detergent,
Bangladesh's first packaged
detergent.
⮚ Spread over 11 acres and geared
to process 150 tons of chemical
per day, it has the capacity to
produce 192 tons of chemical.
⮚ Rin is a product of vast Unilever
family and has a market share of
25%
⮚ The company sources chemical
concentrates from China.
⮚ They come in RIN White of one
liter and PET bottles of 500 ml
and one liter.
⮚ Unilever also markets Wheel a
special detergent for the Industry
which is lower cost.
⮚ RIN, in association with Unilever
have launched Rapid Wash
Powder.
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 ⮚ Keya from Keya Group is the
largest distributed detergent
Chemical with 85% market share
(The Daily Star)
⮚ It reaches more than 10 lakh retail
outlets in up to class C towns
⮚ Keya Group Ltd, in 1996 had a
market share of 5% in the
Detergent Chemical.
⮚ In 2003 its new variant-‘2 Minute
Please’ was launched which was a
hit.
⮚ Wheel was launched in 1976.
⮚ In 1993, Wheel was acquired by
Square Group Bangladesh.
⮚ Over the years, Wheel has
become synonymous with
Lemon Detergent.
⮚ The chemical became a hit with
successful advertisement
campaigns like "No Shine, No
gain,'
⮚ It is available in 200 ml , 250 ml ,
125 ml Liquid and 200 ml
Powder.

Strengths & Weakness of Competitors

Name Strengths Weakness

Rin Chemical Pvt Ltd Acquired Hanif Chemical Pvt Entering in a new
Ltd Distribution network
Segment

Unilever Ltd Global leader in chemical New Entry

Growing Fast

kohinoor chemical Ltd Global Brand in chemical Less Product Line

Squire Chemical Ltd Market share Less Product Line

Surf Excel Market leader Less cost effective

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Wheel Innovation New entry

Fast Wash Chemical Ltd Innovatoin New Entry

SWOT ANALYSIS

STRENGTH WEAKNESS

INTERNA
• Adequate availability of raw • Seasonal availability of
L
chemical
materials
• Brand
• Price, a competitive advantage acknowledgement

• Natural Product. • Late entry into the

market.

• Dependence on Khan
Chemical Ltd.

OPPORTUNITY THREATS

• Participation with a growing Industry. • Cut throat competition

• Competitive advantage over detergent • Unstable government

chemical companies. policies
EXTERNA • Success of incredible Bangladesh • Rising Global Warming
L
campaign

• Possible deal with Bangladesh Cricket

Board (BCB).

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PESTEL Analysis:
A PESTEL analysis is a framework or tool used by marketers to analyses and
monitor the macroenvironmental (external marketing environment) factors that
have an impact on an organization.

PESTEL stands for:

P – Political

E – Economic

S – Social

T – Technological

E – Environmental

L – Legal

Political Factors
These are about how and to what degree a legislature mediates in the economy.
This can incorporate – government strategy, political security or instability in
abroad markets, foreign trade policy, charge arrangement, labor law,
environmental law, trade restrictions and so on. It is clear from the rundown over
that political variables frequently affect associations and how they work together.
Associations should have the capacity to react to the present and expected future
enactment, and modify their promoting arrangement as needs be.Rawvaly.com is
an internet based company and they depend on people ordering through internet.

Economic Factors
Economic factors have a noteworthy impact on how an organization does business
and also how profitable they are. Factors include – economic growth, interest rates,
exchange rates, inflation, disposable income of customers and businesses and so
on.

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These factors can be further broken down into macro-economic and micro-
economic factors. Macro-economic factors deal with the management of demand
in any given economy. Governments use interest rate control, taxation policy and
government expenditure as their main mechanisms they use for this.

Micro-economic factors are all about the way people spend their incomes. This has
a large impact on B2C organizations in particular.

Bangladesh is a developing country, here the per capita earning is low. So SEEN
Chemical Industries Ltd’s pricing should be done accordingly

Social Factors
Social Factors are the areas that involve the common belief and attitudes of the
population. These factors include – population growth, age distribution, career
attitudes, and social belief and so on. These factors are of particular interest as they
have a direct effect on how marketers understand customers and what drives them.

People in our country has this belief that online business isn’t trustworthy. If this
belief can be changed, then SEEN Chemical Industries Ltd would capture more
market share from new customers.

Technological Factors
We all know how fast the technological landscape changes and how this impacts
the way we market our products.

This is the age of smartphone, and most of SEEN Chemical Industries Ltd’s target
market uses one. So SEEN Chemical Industries Ltd is focusing on Detergent
advertising to capture the market.

Environmental Factors
Environmental factors include ecological and environmental aspects such as
weather, climate, and climate change, which may especially affect industries such
as tourism, farming, and insurance.

Legal Factors
Legal factors include discrimination law, consumer law, antitrust law, employment
law, and health and safety law. These factors can affect how a company operates, its
costs, and the demand for its products.

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 Marketing Mix

Product

⮚ Rapid Wash is a 100 percent Detergent Chemical which will be

produced and marketed by the SEEN Chemical Industries Ltd.
⮚ BRAND NAME: Rapid Wash

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Product Life Cycle

Our product lie in Introduction Period of PLC

⮚ Low sales
⮚ High costs per customer
⮚ Negative profits
⮚ Innovator customers
⮚ Few competitors
Objective: To create awareness of product
⮚ Offer a basic product
⮚ Price at cost-plus
⮚ Selective distribution
⮚ Awareness – dealers and early adopters
⮚ Induce trial via heavy sales promotion

Place

⮚ In the initial phase we would be outsourcing chemical processing and

packaging of Rapid Wash under SEEN Chemical Industries Ltd.
⮚ Some Chemical would be purchased from Gazipur and Chittagong.
Detergent Processing & Packaging would be outsourced to local producer.
⮚ Mode of Transport: Road Transport

Pricing

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 ⮚ As a new comer our pricing strategy is to introduce our products in the
market at lower prices so as to create huge demand in the market and then
compete with other competitors.
⮚ As we come up in the demand, we will increase our prices and will provide
more efficient and affordable Detergent.

Pricing Strategy

Penetration Pricing

⮚ Our product will be lie on penetration strategy with high quality & low price
⮚ For introducing new product
⮚ Price low to capture market share
⮚ Expect to make profit in volume

Promotion

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 ⮚ As we are in the Introduction phase, our objective is to create brand
awareness through Informative Advertising.
⮚ Use of Print Media, Radio Advertisement, Hoardings in Public Spots,
Sample Distribution, Organizing Events, TV Commercial etc.
⮚ Tie Up with major Cinema halls to promote our products during Intervals.
⮚ In-film advertising, in its most effective form, is about a brand being a part
of the cinema's content.

Web Marketing

Social Networking: In order to reach out to the TA and ensure that they feel more
connected with the brand it is necessary to start making conversation.

facebook
⮚ Creating a community on facebook
⮚ Creating a Fan page on facebook
⮚ This will enable the brand to keep its TA engaged and updated on the
introduction of new product and events

twitter
⮚ Creating an active account on a micro-blogging site such as twitter, where
regular tweets on product and event updates will ensure interactivity
⮚ Followers will be encouraged to tweet their suggestions on new product.

Financial Statement

Balance Sheet

Current ASSETS
Cash 100000
A/C Receivable 150,000 -
Inventory 50000
Prepaid expenses 20000
Total current assets 170000

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Fixed assets

Equipment 70,000
Less:accumulated depreciation 2,500 67500
Property and equipment at cost 500000
Total fixed assets 567500
Intangibles(goodwill) 5000
Total assets 572500

liabilities
Current Liabilities
a/c payable 40000
Notes Payable 30000
salaries payables 35000
Accrued interest payable 10000
Total Current Liabiltirs 115000

Long term liabilities

mortgage 50000
Note payable 20000
Total Long term liabilities 70000

OWNERS' EQUITY

Capital 250,000
Total Liabilities 115,000
365000

Ratio Analysis
Current ratio 1.48

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Quick ratio 0.71
Debt Ratio 4.93

Income Statement

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Revenue
Gross Sales 500000
Less: Sales Returns and
Allowances 65000
Net Sales 435000

Cost of Goods Sold

Beginning Inventory 50000
Add: Purchases 35000
Direct Labor 7500
Indirect Expenses 80500
Inventory Available 173000
Less: Ending Inventory
Cost of Goods Sold 173000

Gross Profit (Loss) 262000

Expenses
Advertising 15000
Contract Labor 25000
Depreciation 5500
Dues and Subscriptions 25000
Insurance 45000
Office Expense 17500
Supplies 20000
Telephone 18500
Utilities 5000
Wages 30000
Total Expenses 206500

Net Operating Income 55500

Other Income
Gain (Loss) on Sale of Assets 55500
Interest Income
Total Other Income 55500

Net Income (Loss) 111000

Sales
Sales price per unit 1,000.00
Sales volume per 10

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 period (units)
Total Sales 10,000.00

Variable
Costs
Direct material
per unit 20.00
Shipping per unit 10.00
Supplies per unit 50.00
Other variable
costs per unit 60.00
Variable costs
per unit 140.00
Total Variable
Costs 1,400.00

Unit contribution
margin 860.00
Gross Margin 8,600.00

Fixed
Costs Per
Period
Administrative
costs 12,000.00
Insurance 1,000.00
Other fixed
costs 5,000.00
Total Fixed
Costs per
period 18,000.00

Net Profit
(Loss) (9,400.00)

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Results:
Break even point (per units) sale volume analysis: (10 units)

Sales volume per period (units)

Sales price per unit

Fixed costs per period

Variable costs

Total costs

Total sales

Net profit (loss)

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0 1 2 3 4 5 6 7 8 9 10
1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
18,000.0
18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 18,000.00 0 18,000.00 18,000.00 18,000.00
0.00 140.00 280.00 420.00 560.00 700.00 840.00 980.00 1,120.00 1,260.00 1,400.00
18,980.0
18,000.00 18,140.00 18,280.00 18,420.00 18,560.00 18,700.00 18,840.00 0 19,120.00 19,260.00 19,400.00
0.00 1,000.00 2,000.00 3,000.00 4,000.00 5,000.00 6,000.00 7,000.00 8,000.00 9,000.00 10,000.00
(18,000.00 (17,140.00 (16,280.0 (15,420.00 (14,560.0 (13,700.0 (11,980.0 (11,120.00 (10,260.0
) ) 0) ) 0) 0) (12,840.00) 0) ) 0) (9,400.00)

CONCLUSION

SEEN Chemical Industries Ltd is one of the detergent chemical industry in Bangladesh
and it has made the status of growing detergent marketplace of Bangladesh. It is relentless in
detection of business revolution and development. SEEN Chemical Industries Ltd first
entered the Bangladeshi market back in 2018. In this very few time it has cemented its place as
one of the leading chemical industry in Bangladesh. It has created job opportunities for many
fresh graduates. SEEN Chemical Industries Ltd also uses university going students as their
agent and pay them based on commission. It gives them a great experience which they can use
in real life. They always maintain good relation with both their vendors and customers. The
customer care is always there to help customer with any problem. After all these it still hasn’t
stopped progressing, it continues to bring to something new to the mixture. While working with
the Content Team, SEEN Chemical Industries Ltd, I experienced the work process of
multinational company, which is a big achievement for me. My job responsibilities along with
other activities has developed my practical knowledge and provided me an amazing experience.
SEEN Chemical Industries Ltd has a very bright future.

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