BUSINESS PLAN

FOR FROZEN’S
KITCHEN
Table of Contents
Executive Summary...................................................................................................................................3
Company Description................................................................................................................................4
The Product...............................................................................................................................................5
SWOT Analysis..........................................................................................................................................8
Market Analysis.........................................................................................................................................9
Industry Analysis.....................................................................................................................................12
Competitive Analysis...............................................................................................................................16
Marketing Mix.........................................................................................................................................19
FINANCIAL PROJECTIONS...............................................................................................................23
Exit Plan...................................................................................................................................................28
Best Case Scenario (Expansion Plan).....................................................................................................29

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 Letter of Transmittal

Sub: Letter of Transmittal.

Dear Sir,
we are submitting the report on ‘Business plan of Frozen’s Kitchen. which you authorized. In the
preparation of this report I strictly followed all your instructions and requirements.
We enjoyed completing this assignment and I hope you would appreciate my work as well.

Sincerely,

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Executive Summary

The Agro-Based Industry in Bangladesh especially the frozen food sector is currently enjoying a
lucrative and exponential growth with 28% industry growth. Improved cattle breeding, growing
consumer demand due to improvement in lifestyle, standard of living and increasing purchasing
power has led to a huge jump in sales in the recent years. In addition, tax exclusion and bank
loan interest and principal amount payment exemption for next 8 years by the government policy
makes it a prospective market and to invest.

Among its competitors, Premium Frozen Beef Products face little competition in the local
scenario. Local direct competitors include only Golden Harvest (26% market share) while
Among its indirect competitors, Aftab and Brac Chicken are dominating established brands in
the market with one specializing only in chicken and the latter catering only fresh products.
Survey with managers at different point-of-sales (Agora) also showed their preference to shelf
local brands and enthusiasm in promoting them among consumers.

Frozen’s Kitchen Product range will include Chicken Hot pie moon, Beef Kathi Kebab, Chicken
Cheese Finger, khichuri , tehari the latter a completely new introduction in the market by any
local firm. It is positioning as more for more, offering a value-added price to its quality
conscious consumers. Its business includes both B2C and B2B customers who are willing to pay
comparatively higher price for more nutrition, assurance of halal, taste and quality. The market
survey shows that around 90% want the current products in the market to improve in quality and
taste. Furthermore, to create product and brand awareness and establish its brand image in the
minds of the consumers,

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Company Description

As days goes by fast food is becoming more and unhealthier. Many of these food are made with
materials which are rotten. Sometimes the oil they use is not healthy of fresh at all. People who
are eating these foods are getting sick as the days go on. To counter this the best thing is to eat
homemade foods. But many of the people would say that from home the food are not that tasty
or one cannot create those dishes from home.

Frozen’s Kitchen understands its consumers’ health requirements and serves a range of halal,
tasty, healthy and safe frozen food products that includes Chicken Fry’s, Meatballs, Samosa and
a variety of different foods at a value-added price. It also takes into account the need for easy to
prepare, hassle-free quick meals in our fast-paced and time-constraint life. By this business we
aim to reduce health issue people get from eating restaurant foods, while keeping the flavor
intact. Although we are not the first one to come we the idea, we do have slight advantage over
them. Many of the frozen foods which are found in the market are usually made in factories.
Some of those factories don’t even follow the health rule. Due to this the food in those factories
are also a type of health hazards.

Mission

The mission of Frozen’s Kitchen is to provide hassle free, ready to cook restaurant like food to
people while keep the food safety high.

Vision

The vision of Frozen’s Kitchen is to be the most trusted and preferred brand to every household
in Bangladesh

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The Product

Frozen’s kitchen plans to enter the frozen food market by introducing 8 new products in the
market. These products are Chicken Breast fillet, Half-moon pie, Chicken Roll, Chicken Strips,
Beef Kathi kebab, Chicken Cheese fingers etc. The portfolio of these products are given below:

Product Portfolio
Nutrition & Price
Description Ingredients Packaging
Health
Chicken International
Breast standard
Fillet packaging:
Fresh, superior
Regular size
quality & halal
Low -340g (8 250 taka
meat will be
cholesterol pieces per
used for
pack) and
processing.
breakfast size-
250g (5
pc/pack).
It doesn’t
Chicken, contain Eye-catching,
Breadcrumbs, additional Fat air-tight &
Salt, and Chili or additional hygienic
powder, Eggs, coloring of any packages.
tempura powder. sort.
½ of a chickens Expiry
breast period/Shelf
life: 5-6 weeks
at -6 to -8
degrees
apporx.

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 Contains fresh
Processed in
eggs
hygienic and
Made with
strictly
natural products.
supervised
Preparation
environment
time: 7-8 min.
International
It doesn’t standard
Chicken, water,
contain packaging:
bread, Eggs,
additional Fat Breakfast size:
Breadcrumbs,
or additional 15 pc /200gm 15pc= 210 taka
tomato sauce.
coloring of any and Regular
10 pc = 150 taka
Half-Moon sort. size: 10pc
Pie /100gm
Natural Expiry
preserved Period/Shelf
Healthy fresh life: 5-6 weeks
chicken at -6 to -8
Preparation degrees
time: 5 minutes. apporx.
Beef Meet Beef, salt,
Low Walnut size
Balls vegetable
cholesterol meat balls
protein, spices
Fresh and It doesn’t use International
superior quality any type of standard
200taka
meat will be health packaging:
used for damaging Regular size:
processing. preservatives. 10 pc/300gm
Contains no Shelf Life: 5-6
eggs or dairy weeks at -6 to

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 -8 degrees
apporx.
International
It doesn’t use standard
Beef, salt, kebab any type of packaging:
spices, garlic, health Breakfast size: 1 pc = 99 tk

coriander damaging 5pc/300gm &

preservatives. Regular:
Beef Kathi 8pc/450gm
Kebab Fresh and
superior quality
Shelf Life: 5-6
meat will be
weeks at -6 to
used for
-8 degrees
processing.
apporx.
Cook time: 15
minutes
Chicken International
It doesn’t
Roll standard
Chicken, contain 150 taka
packaging:
breadcrumbs, additional Fat
Breakfast size:
onions, cabbage, or additional
10pc/300gm &
green chili, eggs coloring of any
Regular:
sort.
20pc/450gm
An overall Low Shelf Life: 5-6
health conscious cholesterol weeks at -6 to
food -8 degrees
Fresh and apporx.
superior quality
products will be
used for

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 processing.
Cook time: 10
minutes
International
Chicken, standard
Cheese, packaging:
Breadcrumbs, Low Fat Breakfast size: 10 pc = 250 taka

Egg, Chili 10pc/300gm & 15 pc = 325 taka

powder. Regular:
Chicken
15pc/450gm
Cheese
Fresh and
Fingers It doesn’t
superior quality
contain Shelf Life: 5-6
meat will be
additional Fat weeks at -6 to
used for
or additional -8 degrees
processing.
coloring of any apporx.
Beef cut into
sort.
1"inch cubes

Rice , beef ,
Beef khichuri daal, Low Fat 150 gm 150 taka
Special masala

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 Rice , chicken Itdoesn’t
Chicken tehari contain 150 gm 120 taka
additional Fat

By introducing these products frozen’s Kitchen wishes to enter the market and if the demand
increases to increase their number of provided food as well. One key advantage we have over
the competitor of the market is that the product introduced by frozen’s Kitchen are not found at
this price level. We are providing naturally preserved food to the people.

SWOT Analysis:

Strengths- Strengths of frozen’s Kitchen is below-

1. Launched array of new product to the market.

2. Constantly looking create newer and newer dishes.

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 3. Offers wide range of products to its consumers.
4. Preserving food natural way without using any kind of preservatives.
5. Able to buy premium quality foods at low price.
6. The products of frozen’s Kitchen is hassle free to cook and eat.
7. The preparation of these foods take minimum time.

Weakness- Weakness of frozen’s Kitchen is given below

1. Reports about frozen food being unhealthy

2. Due to being a new company having issues in selling
3. Limited distribution in the beginning
4. The packaging is not of very high standards.

Opportunity- The opportunities for frozen’s Kitchen are given below-

1. Being a new business we can give the people products which our competitors don’t have.
2. Frozen food market is a niche market. There are not many player in this market currently.
3. People are becoming more and more time conscious, due to this they want hassle free less
time consuming foods.

Threat- The threats for frozen’s Kitchen are given below-

1. Different disease in animals.

2. Increase in the price of raw materials.
3. Increase competition.

Market Analysis

In order to understand the market of frozen foods, an extensive market research was carried out.
The segmentation of the target, market size, growth rate and profitability were then analyzed
accordingly.

METHODOLOGY

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It is vital to remember that a thorough market, industry and competitor research requires a
combination of both primary and secondary data. The data collection methodology is discussed
below.

Primary Data:

Sample Questionnaire: In order to identify some key factors about the consumer behavior and
market direction, sample questionnaires of 10 questions each (both objective and subjective)
were also used.

 Sample size and selection process: 30-40 respondents were randomly selected to fill up
the questionnaire
 From those question we got to know about the consumers take on the frozen food
business
 We also go to know where to sell our product more.

The link of the sample Questionnaire is given- https://forms.gle/JT2C7Z9YPV6t9Q7d8

Secondary Data:

These included extensive research on:

 Websites
 Magazines
 Newspapers for market size, growth, government policies, labor market etc.
 Online journals and articles

All these collection of data were compiled together to analyze the frozen meat market of
Bangladesh and see how lucrative it is for startup business in this sector.

Three major factors of the market are discussed below:

Geographic Segmentation: The market size for frozen’s Kitchens frozen food products will
initially be confined to only Dhaka City (capital) of Bangladesh. First for Geographic

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Segmentation we see that the highest demand for the products is expected from Mohammadpur
and Dhanmondi, Mirpur region, while and Gulshan, Uttera areas are expected to show the lowest
demand due to the difference in income, taste and lifestyle. Due to students and working people
and students staying more in Mohammadpur, Dhanmondi and Mirpur it is safe to say that the
demand in those area are going to be high.

Demographic Segmentation- By demographic segmentation we can get to know about The

Age, gender and group of people we wish to target. We also get an idea about the income and
spending of a certain person in this stage.

From market research we were able see that majority of our consumers belong to the age group
of 20-25. Which means most of the consumers are students. In them we are able to see that many
of them prefer chicken over beef.

With our product we want to attract attention of people of both genders. We design the product
in a way that working mothers would have their tension eased. We also kept in mid of the
thousands of bachelors in Dhaka alone. By the help of this product they will be easily able to
cook these items.

From out market research we also got to know about the spending amount of people. Most of the
people spend about 1001-2000 taka in restaurants. It is a vital information for us. As from this
information we will able to price our product accordingly.

Other Basis of Segmentation: Lastly, psychographic and behavioral target market has been
identified to narrow down the market size and tap the real consumers of the product.

As our product is designed we are able to know that most of our products buyers would be
working housewives and bachelors. As most of them want good healthy food being able to make
at a very small amount of time. As our product is designed it does that.

Form the market research we can now tell that we have focus more on chicken related products
also we have to make promote the business more using coupon codes at social media platforms.

MARKET PLAYERS

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Currently the major players for frozen food products in the market are (local companies) Golden
Harvest products with 26% total market share and products ranging from chicken, beef and fish.
After Golden Harvest Kazi farms are becoming a reliable frozen food solution to Bangladesh.
Also Rich is still leading in certain parts of the Dhaka city as they have the 2 nd most market share
after Golden harvest sitting at 16 % market share.

Then if we talk about the foreign brands the first one that comes to the mind is McCain’s. They
are the leading competitor in frozen food products in the world.

Indirect market shareholders include CP chicken and Aftab Food products. In recent years they
have ventured into frozen food business and it has proven to be successful for them. Before they
use to only sell non-frozen food and bakery related stuff.

MARKET POTENTIAL AND PENETRATION

According to the market research, Most of the people showed interest towards chicken related
products more. While beef related products were 2nd. According to that we can probably say that
we need to focus on chicken 1st and then the then product line.

1. Major advantage of the current market scenario is lack of verity in chicken related
products both local and foreign produced. This minimizes competition for frozen’s
Kitchen food products to only local producers Rich, Golden Harvest and Foreign imports
like McCain’s.
2. Many product for the chicken related foods are completely new and unrivaled in the
local market, therefore providing it a huge opportunity to capture the untapped market
segment. It’s only major competitor is McCain’s, which is imported, very expensive and
is not always available due to poor distribution channel. Also it suffers from constant
price fluctuations but as it plays a monopoly role in the market, it enjoys an unfaltering
demand.
3. The development of customer’s taste, health awareness and experimenting new products
are key success indicators for frozen’s Kitchen

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 4. Also government acts to ensure strict regulations to maintain quality of meat and
increased chicken production offers the opportunity to expand through export to
countries in the Middle-East, South Asia like Malaysia, Indonesia and even to Europe.
5. In addition, some organizations are collaborating with meat producing companies to
provide standard and quality training to workers and therefore developing their skill and
ensuring more quality control.

Industry Analysis
PESTEL Analysis- the PESTAL analysis for frozen’s Kitchen is given below:

POLITICAL

Bangladesh had over the past few years have experienced its fair share of political unrest and
economic downturn. But recent years have shown the government’s eagerness to develop its
industrial manufacturing sector and encourage new investments both local and foreign both on
large and small scale. Along with the RMG sector, the Government has developed initiatives of
quality assurance for frozen foods in co-operation with exporters. This has initiated an increase
in exports of frozen foods like shrimp and meat. Acts or Ordinances to ensure quality control
have helped develop this industry to be more competitive and potential both at home and abroad.

ECONOMIC

Economic factors like the level of disposable income, buyer's confidence to spend on luxury
goods are some crucial variable related to this kind of business especially as frozen’s Kitchen
Frozen food Products are providing a value-added price. The GDP growth rate is a reliable
indicator that the country is experiencing a booming growth compared to most western countries.
This in turn is attracting foreign investments and promoting new companies to enter the market
more easily as well as ensuring their long term sustainability. Availability of capital,
development of the Banking system as well as the financial institutions and the ease of loan
provisions are important factors attracting small entrepreneurs to the market basket..

Environmental

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A green approach is needed to improve in the future. The whole world is becoming more and
more environmentally cautious. Doing anything which might cause problem to the may cause
problem for the business. The meat industry are cutting down trees to create farms. It might not
be related to the frozen food business but it will surely cause problem for it. As
environmentalists will blame the frozen food business for this problem. Companies should keep
that in mind while moving forward.

Competitive Analysis
Market research at various point-of-sales in Dhaka gave a clear understanding of the different
competing products in the market, their packaging and pricing. The table below shows its
summary.

DIRECT COMPETITORS OF FROZEN BEEF PRODUCTS

Product
Competitor Name Quantity(g) Piece/Pac Price(Tk.)
Type
Local Rich 250 10 200
Brands 340 18 300
Chicken Golden 300 15 250
Strips Harvest
Kazi 250 10 210
Farms
Local Rich 250 12 135
Brands

Chicken Golden 300 15 180

Nugget Harvest

Kazi
250 15 160
Farms
Meat Balls Local 300 135
Brands
Rich 15

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 Golden
Harvest
450 20 250
Kazi
Farms 300 15 180

Talking with the managers and staffs of different superstores showed that different point-of-sales
promotes different brands, but they all prefer to encourage and shelf local brands (Golden
Harvest and Kazi Farms) mostly due to many advantages. These include more familiar and close
relationship with their dealers/distributors of the products, consistent supply of the products, and
easier/quick to respond to the changes in market demand. This makes inventory management
more cost-effective and efficient.

DIRECT COMPETITORS:

There are several direct competitors in the frozen beef market as represented by the table above.
However, our key competitors are Golden Harvest and Rich.

Rich

Rich Agro Industries Ltd. is a subsidiary company of Harvest Rich Group, a pioneer in textile
and agro industry in Bangladesh. 'Rich' has been in the market of frozen food before anyone.
Due to this they have a very good customer base.

'Rich' product portfolio has over 120 types of further processed & value added product range in
Chicken, Beef, Fish, Mutton & Tube ice. They are categorized into Cold meats/cuts, Smoked &
Gourmet Specialties, Sausages, Burgers and Breading line Nuggets, Strips, Meat Balls and
Kievs. Their product range categories are been distributed to all 5 Star hotels, International
restaurants, Chain Stores to the Corner shops in their own fleet of cold refer trucks.

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Golden Harvest

Golden Harvest Agro Industries Ltd. is a publicly listed company which is one of the pioneers in
Frozen Food manufacturing in Bangladesh. The brand is known, both locally and abroad, for its
wide range of ready to cook frozen products.

Golden Harvest is one of the most famous frozen food providing company in Bangladesh right
now. From our market research we were able to know that people while buying frozen food
consider Golden Harvest more. While taking with supermarket store managers we were also got
the idea that golden Harvest product go off the shelf faster than any other brands. It was expected
from the company which has the most market share among all the frozen food providing
companies at a 26% market share.

INDIRECT COMPETITORS:

There are few indirect competitors of our frozen beef products. They are mainly the local
producers Aftab and Brac Chicken. Aftab sell only frozen chicken products of more or less same
categories like sausage, meatball, and salami. But being a well-known company it might prove
dangerous if we be little them. So if Aftab enters the market with Frozen food market with a
verity of products, this could pose a notable threat.

Whereas Brac Chicken, they also provide chicken only products. They don’t offer verity of
products currently.

Competitive Advantage

Considering the scenario above frozen’s Kitchen is going to have a competitive advantage over
brands like Golden Harvest and Rich. As Adnan’s kitchen provides superior quality of products
at a low price then the competitors. As the main target audience of frozen’s Kitchen showed they

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only spend 99-300 taka in food related items. Due to this Our prices will fit perfectly with their
requirement.

Marketing Mix
The marketing mix of frozen’s Kitchen is given below:

Product

The product that frozen’s Kitchen is going to provide is Frozen food. The main objective the
products of frozen’s Kitchen is to provide world class quality of foods to the home for people.
The packaging of frozen’s Kitchen will be attractive. Due to this consumers will be more into
buying the product. As packaging of the product is the first thing consumers see.

Place

It refers to the place the product is going to be sold. It also provides info about where the product
is going to be placed in the market. From the market research we were able to know that most of
the people do there grocery shopping from supermarkets like Agora, Meena Bazar etc. from this
information we can probably say the best place to try and sell out products are the super markets.

Also we will try to sell our product through retailers and directly to the consumers. By selling it
through the retailers we will be able to attract more consumers as if we try to directly sell our
product to the consumers then the consumers might not buy the product. So, by selling it through
the retailers we will be able to sell the product first.

Price

The pricing strategy we are going to use is value added pricing. The Manu of the product that we
wish to sell are given below-

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Description Quantity Price

Chicken Strips 15 Piece 150

Chicken Nugget 10 Piece 120

Half Moon Pie 10 Piece 120

Chicken Breast fillet 5 piece 250

Chicken Fry (leg) 5 Piece 250

Beef Kathi Kebab 5 Piece 200

Chicken Roll 10 Piece 110

Promotional

Paid-media advertisement

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Paid-media advertisement is one of the most famous method of promoting a service. We will
make a TVC which we will post in YouTube and also promote it in Facebook. It will also be
showed in different TV – channels. We will make an ad especially for the newspaper and
magazines. We will also use pay-per-click method to advertise our service. By using this method
ads will be showed in different websites. By using paid media advertising, we would be able to
reach more than 90% of the people.

Social media-based marketing

More than 70% of the population use some sort of social media in their everyday life. We will
have a YouTube profile. In that profile we will give our customers an inside look into the process
of how their cloths are washed. It will also have videos of all CSR activity done by the company.
We will also have a Facebook and Instagram page where different offers will be posted. People
will also be able to give review and also share their personal stories using our service. It will also
increase our position in SEO. By our market research we also found out that most of the people

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pay attention to online. From this information we have to provide more attention social media
based marketing more.

Content marketing

By using content market we will make people aware of the service itself and what type of
problems it might create if not used. We will show people how frozen food save time of people
every day. By doing this the product will market for itself.

Referral Program

WOM (word of mouth) is the most effective way to market a service. But as we are a new
service it would be hard to do. But creating a Referral program will make it easy for us to cheat
the system and do this type of marketing. By creating this we will reward people with 10-20%
discount is there next purchase if they post a review or share their experience to other people. By
doing this more people will know about the service.

MANAGEMENT TEAM

The chosen form of ownership for the business is Partnership with six members, each with equal
contribution to capital.

In Bangladesh, Partnership form of business is most lucrative and easy to establish due to
minimal governmental regulations, flexibility in terms and conditions and exemption from
corporate taxation.

Procedure for Partnership Business set-up in the country are as follows:

1. Registration of Partnership on Stamp Paper

2. Requirement of Trade License from City Corporation based on location of business.
3. Certification from BSTI as Food Manufacturing business will not be required as Premium
will not be exporting to foreign countries as yet.

The Business organogram shows a summary of the hierarchy structure and the different
departments involved.

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FINANCIAL PROJECTIONS
Pro Forma Income Statements

Sales: We have calculated the market value of frozen food which is Tk. 57,200,000 in a year,
where our only domestic competitor in frozen food Golden Harvest has 26% of the market share.
We are assuming to grab 50% of the market when we will enter. Which means our 1 st years sells
forecast is (57,200,000*0.5) = Tk. 28,600,000

COGS: From our competitor survey we came to know that cost of goods sold is around 60% of
the selling price.

Distributors Margin: Our distributors (e.g. Agora) usually put 10% margin on supplier’s prices.
So if our product price is Tk. 100 to consumers then distributor’s margin would be Tk. 9.1 for
that product.

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Other operating Expenses: They are usually 6% of the selling price. (For our competitor) but we
have assumed it to be around 8% for us.

Tax: As we are in the agro-based industry, for the first 5 years we will have a tax Holiday. So we
do not need to give tax for the first 5 years. (Appendix)

Interest expenses: For agro-based industry Bangladesh Bank has a scheme where BB will fund
49% of our investment at 0% interest rate and no repayment for 8 years. (Appendix)

Pro-Forma Income    
Statement
Description
Years Year 1 Year 2 Year 3
Sales 7984916 9251726 10719517
(-) Costs of goods sold 4790950 5551036 6431710
Gross Profit 3193966 3700691 4287807
Total operating expense 2102567 1898763 1947016
EBIT 1091400 1801928 2340791
Tax and interest 0 0 0
Net Income 1091400 1801928 2340791

Pro Forma Cash Flow Statements

We are planning to increase our all type of fixed assets as well as current assets but neither by
equity nor debt financing but from our retained earnings. As we have to buy new assets so we
have cash outflow from our retained earnings for financing these new assets. As we do not have
any debt or tax obligation so our cash for financing activities is zero throughout the 3 years.

Pro-forma Cash Flow Statement

  Year 1 Tear 2 Year 3
Cash flows from operating activities: 1312358 1995413 2502444
Cash flows from investment activities: 0 309562.5 415115.6
Cash flows from financing activities: 0 0 0
NET INCREASE/DECREASE IN CASH: 1312358 1685850 2087329

Pro Forma Balance Sheets

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Flat: We are planning to Lessee out a flat in Mohammadpur for 5 years for Tk. 1,500,000.

Fridge Truck: We have met a dealer who supplies fridge trucks. They told us that price of a
fridge truck is Tk. 50,0000

Machineries: We are planning to buy machines for our production worth around Tk. 5,00,000.

Investment: We are investing all of the previous quarters retained earnings in the next quarter for
allowing the continuous growth of our company.

Pro Forma Balance sheet

Year 1 Year 2 Year 3
Current Asset 3472070 3992881 4591813
Net Fixed Asset 17188500 1842675 20087213
0
Investment(from retained 4039811 5169067 5117625
Earnings)
Total Asset 24700381 2758869 29796651
8
Current Liabilities 798491.6 918265.4 1056005
Long Term Loan 9800000 9800000 9800000
Owners’ Equity 10200000 1020000 10200000
0
Retained Earnings 3901890 6670433 8740646
Total Liabilities and 24700381 2758869 29796651
Owners Equity 8

Break-Even Analysis

We have considered first four years’ time span for breakeven analysis. The formula we have
used for this analysis is:

Break Even in sales = Fixed Cost / Contribution Margin Ratio

Fixed cost = BDT 965,000

Contribution Margin ratio= Total contribution (Sales – Variable cost)/ Sales

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= 29,757,555 / 152,958,102 = 0.1945

Break Even in sales = BDT 4,961,440.

So, we will start making profit, after we have reached our sales amount of BDT. 4,961,440

And we are expecting to reach our break even in 2.77 years.

Required Investment

We need to invest BDT 965,000 in our fixed asset at the beginning of the business at a time. As
we are getting BDT 10,00000 from equity and debt financing, so the rest BDT 35,000 will
remain in cash in case of emergency situations.

The assets and respective amounts to invest are:

Initial investment
Category Cost
1. Flat(lease 5 years) BDT 1,500,000
2. Machinaries BDT 5,00,000
3. Fridge Truck BDT 50,000
4. Air Conditioner BDT 95,000
5. Office furniture and stationary BDT 70,000
6. Computers BDT 100,000
Total Investment Required BDT 965,000

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Pay-Back Period

As we have an investment of BDT 10,00,000 of which equity financing 51% and debt financing
is 49%. And we are expecting to pay the full amount to our equity holders as well as debt holders
in 2.92 years from the day we start our business.

Sensitivity Analysis

As Frozen food has a market growth of 28% (Appendix) but for most likely situations we have
used growth rate = 15%

Most Likely Scenario

By the analysis I can probable say the most likely scenario would be struggles in the first few
years. After that by marketing my product enough I hope to gain even customers and sell
increase in later years.

Exit Plan
Assessing all the different options and conditions available, we have decided to go for Merger as
our exit plan. The competitive advantages over the existing competitors are our new product line
products. In addition, the distribution channel and process are effective and structured.

Through merger the competitors would be benefitted by:

1. An already established and fortified distribution channel. They will be able to capture a
new segment in the market.

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 2. They will gain additional production facility, storage freezers, warehouse, delivery
trucks, etc. This will aid them to go for expansion, increase their marginal production and
lower marginal cost.

The merger would benefit us by:

1. We will get an ownership share of the sustainable company.

2. In case of sale, buyout, or liquidation of asset we will have to immediately exit the
market. But through merger we will remain in the market and operate under a more
sustainable company and enjoying their profits.
3. These added competitive advantages will allow them to earn higher profits and increase
ownership value which will also be shared by us. Even though we will not receive
immediate cash but the cash inflow over the future time period will help us get our return
on investment. Later by selling that ownership we will also earn higher return than other
options.

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