Group Assignment – Bus201

Project Paper – Business Plan

Submitter to
Md Nazmus Sakib
Course Instructor
Department of Business
Independent University, Bangladesh

Submitted by
Group: Cash Cows

Name ID Remarks
Sadman Sakib Khan 2131022
Md Shafqat Shamim 2221172
Shakib Ahamed Sefat 2221655
S M Kaiyum Zaman 2222215
Nabeel Rahman 2222903

Section – 9
Independent University, Bangladesh
 Date of Submission – 31st March, 2022

Contents
Section 1: Executive Summary................................................................................................................3
The Problem with normal Butter.............................................................................................................3
The Solution is Organic Milk....................................................................................................................3
Section 2: Company Background............................................................................................................4
Main Operation...................................................................................................................................4
Mission................................................................................................................................................5
Vision...................................................................................................................................................5
Section 3: The Management Team.........................................................................................................6
Business Organogram..........................................................................................................................6
Educational Background......................................................................................................................6
Job description:...................................................................................................................................7
Section 4: Product description....................................................................................................................8
Unique features of our products:........................................................................................................9
Section-5: Marketing Plan....................................................................................................................10
Target Market………………………………………………………………………………………………………………………………10

Promotional tools…………………………………………………………………………………………………………………………11

Pricing strategy:.................................................................................................................................11
Section 6: Finance................................................................................................................................12
Our budget and source of Funds:......................................................................................................12
Allocation of funds………………………………………………………………………………………………………………………….12

Sustainable development goals……………………………………………………………………………………………………………

Section 7: Conclusion...............................................................................................................................
Section 8: References...............................................................................................................................
Section 9: Appendix ...............................................................................................................................

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Section 1: Executive Summary
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PureOrg Dairy is an organic butter manufacturing dairy company that produces butter from
organic cow milk which has a nutritional edge over ordinary butter. We aim to provide the most
pure and organic butter by producing it in the most natural way possible. (The Organic Center,
2019)

PureOrg Dairy ensures the best for their consumers and therefore, are dedicated to promoting a
healthy life with the consumption of organic food that has more nutritional benefits. With more
and more people now being health conscious, we see this as a perfect opportunity to give them
the life that they desire.

Currently, PureOrg Dairy is the only organic butter manufacturing company in Bangladesh.
Unlike other butter producers, PureOrg Dairy chooses the most healthy and hygienic
environment for production.

The Problem with normal Butter

The milk of normal butter is collected from cows that are chemically enhanced for faster growth
and more milk production. Thus, the milk that is extracted from these cows tend to contain less
nutrition such as fewer fatty acids. Moreover, the grass that these cows are fed usually contain
pesticides to prevent pests from eating the grass away and this may cause the cow’s milk to
contain residues of the pesticides which may result in harmful effects on those that consume the
milk.

The Solution is Organic Milk

The milk used to produce organic milk on the other hand are collected from cows that are
brought up naturally with the right amount of food and time. They are also fed grass that does
not contain any sorts of pesticides, therefore resulting in the milk being healthier with more
nutrition and safe for everyone to drink and enjoy.

Section 2: Company Background

Main Operation

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Purchase Milk from only Produce Butter with the Sell it to Retail stores at
Organic Cow Farms milk purchased as purely the most affordable price
as possible possible

PureOrg Dairy’s main operation is to buy fresh milk from organic milk farms, produce organic
butter as naturally as possible, and supply it to retail stores in mostly residential areas for
customers to conveniently buy them. Our farms for purchasing organic cow milk include
Organic Dairy & Agrovat, Salam Organic Dairy Farm and Sonali Organic Dairy Limited.

Initially, PureOrg dairy will rent a small factory in Narayanganj. We will purchase equipment
such as machinery needed to produce butter, air conditioners to maintain the temperature and
refrigerators with proper cooling and airtight doors to store the butter for prolonged periods of
time. (Jones, 2017)

Then the organic butter will be supplied to the retail stores, starting with a few selected areas in
Dhaka City and then all over Bangladesh in the near future.

Mission
PureOrg Dairy’s mission is to provide fresh, organic and pure butter without any chemical
substances that will influence long term health to the people of Bangladesh at the best price. We
want to ensure that the health-conscious consumers get what they want thus they can achieve
their diet goals with better ease.

Vision
PureOrg Dairy visualizes itself as one of the top leading Dairy brands of Bangladesh in the
upcoming future. We plan to build our own organic cow farm where we can ensure that cows are
brought up and milked as naturally as possible without any chemicals, enhancers or pesticide-fed
grasses so that we can improve the quality of our products even further and also reduce our costs

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which we can then pass on to our customers in the form of economies of scale. We also plan on
expanding our business operations to multiple other dairy products such as:
 Other variations of Butter
 Yogurts
 Fresh organic cow milk

Section 3: The Management Team

Business Organogram

Partner
Director (business) Head of Marketing
Nabeel Rahman S M Kaiyum
Zaman

Director Head of accounts

(operations) and finance
Md. Shafqat Sadman Sakib
Shamim & Shakib Khan
Ahamad Sefat

Educational Background
Name
Sadman Sakib Khan
Nabeel Rahman
S M Kaiyum Zaman
Md. Shafqat Shamim
Shakib Ahamad Sefat
Position
Head of finance & Accounts
Director of business
Head of Marketing
Director of operations
Director of operations
Background
BBA in Finance
BBA in general management
BBA in international business
BBA in marketing
BBA in Accounting

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Job description:
PureOrg Dairy is a partnership business dedicated to the manufacturing of organic dairy butter
products. PureOrg Dairy will start its journey with 5 partners. The partners include Sadman
Sakib Khan, Nabeel Rahman, S M Kaiyum Zaman, Md. Shafqat Shamim and Shakib Ahamad
Sefat. All 5 share-holders are currently students of Independent University, Bangladesh (IUB)
and are part of IUB’s school of business and entrepreneurship. All 5 individuals have the
expertise to run a business smoothly and are capable individuals who are also able to operate in
synchrony as a team.

Director of Business: Nabeel Rahman will be our business director, who will be monitoring
our day to day operations. His major in business management and past business experience as
result of his family’s business makes him the perfect candidate for this role.

Director of Operations: Shakib Ahamad Sefat and Md. Shafqat Shamim will be in charge of
purchasing all the raw materials required to make PureOrg Dairy’s organic butter products and
then negotiating with retail stores which will then sell our products. Their experience in the retail
business is the reason why they have been chosen.

Director of Accounts and Finance: Sadman Sakib Khan will be in charge of overlooking
PureOrg Dairy’s finances and overall financial growth. His educational background in finance
and past business experience as an accountant makes him a capable candidate for this job.

Director of Marketing: S M Kaiyum Zaman has been chosen for this role as he already has
experience as a freelance marketer for a few social media-based businesses.

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Section 4: Product description
As an organic butter manufacturing and production company, PureOrg Dairy’s main focus will
be centered around the production of three different variations of butter. The three kinds of
organic butter that we will produce are:

1) Organic unsalted butter: This is

basically normal butter without any addition
of salt. This form of butter is known to be the
purest form of butter. PureOrg Dairy however
has a way of making this butter even more
pure and healthy by producing it with organic
milk.

Source: Google images

2) Compound butter: To make compound

butter, we will be adding different herbs and
spices to our everyday organic unsalted
butter. The thought process behind compound
butter is to give regular butter an unlimited
number of flavor profiles. Examples of some
of the herbs and spices we will be using to
produce this are as follows: pepper, salt,
paprika, rosemary.

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Source: Google images

3) Clarified butter: Commonly known as

ghee in Bangladesh, clarified butter is just
butter from which, water and milk solids are
removed and only the pure butter fat remains.
Ghee is a staple in Bangladeshi cooking.
PureOrg Dairy’s promise of producing
organic clarified butter will definitely entice
the Bangali population, who already love
ghee.

Source: Google images

Unique features of our products:

a) The milk we purchase to produce our butter is pure and organic. The cattle, from which the
milk is extracted from, are only fed pure green grass. The grass they are fed is pesticide free. The
cows are also steroid free. These measures are what makes our butter fresh and organic, less
likely to cause health issues.

b) The material we will use to package our products will be 100% recyclable and eco-friendly.

c) It is a well-known fact that factory emissions are huge factor of pollution. In a factory such as
ours, where there are multiple AC units running all day to preserve our butter production, we will
use industrial air purifiers to lessen the emissions that might be caused by our factory.

d) Our butter, being organic has numerous health benefits such higher levels of omega 3 fatty
acids, more Vitamin A, higher levels of unsaturated fatty acids. (Meixner, n.d.)

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Section-5: Marketing Plan
Target Market:
As PureOrg Dairy’s main product is pure and organic butter, our primary focus is to improve the
overall health and lifestyle of Bangladeshi people. We want to ensure that people eat healthy so
that they can live their lives happily. More than 65% of the population of Bangladesh are
between the ages of 15-64. (O'Neill, 2022). This part of the population are our preferable
customers as they are in the stages of life where remaining healthy and eating nutritious meals
are necessary. Our products are mainly intended for health-conscious individuals from middle
class households and above. These customers will be more attracted to buy our products.
From our research, we have concluded that people living in the following areas: Uttara, Gulshan,
Budda, Bashundhara and Dhanmondi fit our criteria and thus we will be marketing our products
in these areas first.

Source: https://tradingeconomics.com/bangladesh/population-ages-15-64-percent-of-total-wb-
data.html

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Pricing strategy:
Even though PureOrg Dairy is a new venture, we do not have much competition domestically,
when it comes to manufacturing organic butter. Our only true competitors are the organic butter
products which are imported from other countries. This is why our pricing will be competition
based. The similarities in the manufacturing process our competitors will share with us are the
cost of raw materials and machinery. However, the edge we have over them is due to our lower
labor costs and no import costs or import taxes. Thus, our prices will be fair and cheaper and our
eco-friendly packaging will attract eco-conscious people to our products.

Price of our products

Product name Price (TK)

Organic unsalted butter (per 200 grams) 310
Organic compound butter (per 200 grams) 340
Organic clarified butter/ghee (per 500g) 1250

Promotional Tools:
Promotional tools are a set of marketing tools which work together to satisfy customer needs and
build a producer-consumer relationship. The methods PureOrg Dairy will be utilizing to promote
our product are advertising through social media posts on our page, creating our own unique
website, paid promotions by social media influencers on sites such as Instagram and Facebook,
sending products to popular food vloggers and reviewers so that they can review and promote
them. We will also be sending our compound butter to chefs and restaurants so that they
implement it in their dishes and give us feedback on it. Side by side with boosting Facebook and
Instagram posts, we will also be welcoming the traditional method of fliers and leaflets. We will
print them in substantial numbers and hand them to people in our targeted areas. We believe
these methods of product promotion will increase our reach and make us visible as a capable
company in the eyes of the general public.

Marketing costs for the 1st year

Type Cost
Boosting Facebook posts for a year 60000
Influencers/food Vloggers/food reviewers 80000
Website creation 20000
Leaflets/pamphlets 70000
Total 230000

Section 6: Finance

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Our budget and source of Funds:
The 5 partners involved in the inception of PureOrg Dairy have decided that the total starting
budget of the business will be 15000000 BDT (50 lacs tk ). The entirety of this budget will be
provided by the 5 partners, dividing the amount to 30 lacs each for 20% ownership of the
business. Down the road we will be accepting offers from angel investors or venture capitalists
for a percentage of our stocks.

Partners Investment (TK)

Nabeel Rahman 3000000
S M Kaiyum Zaman 3000000
Sadman Sakib Khan 3000000
Shakib Ahamad Sefat 3000000
Md. Shafqat Shamim 3000000
Total 3000000

Allocation of funds:
PureOrg Dairy’s total funds will be divided accordingly to the priorities of the company.
PureOrg Dairy is a production and manufacturing business so it should be quite obvious our list
of priorities will start with the 3 factors of production. They are land, labor and capital. At first,
we have decided to rent a factory or production plant in an area of Narayanganj. Our next course
of action is to buy all the machinery required for the production of organic butter and then air
conditioning and air purifying units for the factory and storage of the butter. Industrial butter
churners and milk separating machines for pure clarified butter, cost around 75000-100000 per
machine. We are planning to start with 4 machines per product, the total coming to 12(8 butter
churners and 4 milk fat separators) We will then negotiate milk prices with local organic farms
and purchase it from them in bulk amounts. Our research concludes that the normal asking price
for pure organic milk is 50tk per litre of milk, excluding delivery charges. Furthermore, we will
have to buy the proper vehicles necessary to transport the butter and milk to and from the
factory. Last but not least, we will hire workers for the factory and drivers for the vehicles.
Atleast one experienced worker per machine is required. 2 to 3 people are required for cleaning
up after a day’s production and to keep the environment as clean and safe as possible. A manager
is required to make sure the workers are more efficient and diligent at their jobs. Money will also
have to spend on the packaging process and the eco-friendly packaging material that we will be
using to package our products. The marketing processes such as adverting through social media,
influencers, our website and leaflets will also be funded.

Type Investment (TK)

Factory Machinery 1000000
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 Transportation 1500000
Office Computers 120000
Office Furniture 50000
Marketing for the 1st year 230000
Factory Equipment 750000
Trade License and legal costs 50000
Total 3700000

Sustainable Development Goals

The Sustainable Development Goals are a set of 17 goals which are known to be the blueprint to
achieve a better and more sustainable future for all. They address the global challenges we face,
including poverty, inequality, climate change, environmental degradation, peace and justice.
Learn more and take action (UN, n.d.).

PureOrg Dairy’s main focus is to improve and maintain the health and well-being of our
customers through the use of organic grass-fed cow’s milk and the reduction of pollution and
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waste through the use of recyclable eco-friendly packaging. PureOrg Dairy’s business strategy
fits into the criteria of 4 out of the 17 sustainable development goals. They are as follows:-
Goal 3- Good health and well-being: Our products are made through natural processes which
will enhance the health of our customers.
Goal 8- Decent work and economic growth: As we are going to be running a factory and an
office space, we will need to hire to hire employees and pay them a salary, which will cause
economic growth.
Goal 12- Responsible consumption and production: As we are going to be using recyclable
materials for our packaging process, we will be ensuring less wastage.
Goal 13- Climate action: We will be ensuring low CFC and greenhouse gas emissions from our
factories through the use of industrial level air purifiers, which will result in positive effects
towards the climate and environment.

Section 7: Conclusion

In conclusion, PureOrg dairy is a unique, innovative, eco-friendly

company that will provide the best, organic and healthy products in
the current market to health-conscious citizens. Our main focus is the
health of our clientele and we will try our best to provide the products
that are suitable to keep them healthy. An investment is this venture
will really help us reach our goals faster and ensure that our product
reaches all corners of Bangladesh.

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8: Referencing

References
(n.d.). Retrieved from https://tradingeconomics.com/bangladesh/population-ages-15-64-percent-of-
total-wb-data.html

Jones, T. (2017, May 30th ). healthline. Retrieved from healthline:

https://www.healthline.com/nutrition/does-butter-go-bad#TOC_TITLE_HDR_2

Meixner, M. (n.d.). Retrieved from https://www.healthline.com/nutrition/grass-fed-butter

O'Neill, A. (2022, March 29). Retrieved from https://www.statista.com/statistics/438190/age-structure-

in-bangladesh/

The Organic Center. (2019). The Organic Center. Retrieved from The Benefits of Organic Dairy:
https://www2.organic-center.org/what-are-benefits-organic-milk-and-dairy-
products#:~:text=By%20choosing%20organic%20milk%2C%20you,antioxidants%20than%20non
%2Dorganic%20milk

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UN. (n.d.). Retrieved from https://www.un.org/sustainabledevelopment/sustainable-development-
goals/

Section 9: Appendix

Population Age Groups in Specific Locations

Ages (Years) Gulshan Uttara Dhanmondi Budda

(%) (%) (%) (%)
0-9 14 14 12 18
10-19 19 20 20 19
20-29 28 24 26 28
30-39 17 18 16 18
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 40-49 11 12 12 9
50+ 4 12 14 8

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