Group Name: Business Specialists

Introduction to Business, BUS 201, Sec 2

Spring ‘16

Date of Submission: 31st March, 2016

Submitted to: Zakia Binte Jamal, Lecturer

Group Members:
Mohammad Naveed Hussain-1411088

Arefin Payal-1411178

Marziana Sharmin-1431077

Noor Mohammad Rakib-1520731

MD. Zawadul Islam Khan Sohan-1430485

Anika Monzury-1410986

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Name of our business plan with logo

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Letter of Transmittal
To:

Zakia Binte Jamal, Lecturer Independent University, Bangladesh (IUB)

Bashundhara, Dhaka

Date: 31st March, 2016

Subject: Submission of Business Plan on SOOTHING LIGHT & PROJECTOR

Dear ma’am,

With due respect, it is our pleasure and honor to be your students and have this opportunity to
present the business plan of SOOTHING LIGHT & PROJECTOR . While preparing the
business plan, we have given our all to best focus thoroughly on the topic regarding this
business. We provided all relevant information regarding this business and we believe and hope
that our plan will provide a clear conception about our business.

While preparing the business plan, we all have given our best to accumulate needed information
and we will be more than happy to answer any question and clarify it fully to your
understanding. Thank you for all your help and support which helped us significantly in
preparing this business plan.

Sincerely yours,

Mohammad Naveed Hussain

Arefin Payal

Marziana Sharmin

Noor Mohammad Rakib

MD. Zawadul Islam Khan Sohan

Anika Monzury

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Acknowledgement

In performing our assignment, we had to take the help and guideline of our respected faculty,
who deserve our greatest gratitude. The completion of this assignment gives us much pleasure.
We would like to show our gratitude Ms. Zakia Binte Jamal, Lecturer, Independent
University, Bangladesh, for giving us a solid guideline for the assignment throughout numerous
consultations. We would also like to expand our deepest gratitude to all those who have directly
and indirectly guided us in writing this assignment.

Many people, especially our team members themselves, have made valuable comments and
suggestions on this proposal which gave us an inspiration to improve our assignment by a large
margin. We thank all the people for their help directly and indirectly to complete our assignment.

Thank You.

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Table Of Contents
1. Executive Summary

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 Executive Summary
Hello. We’re Business specialist and we are here to help you take care
of those little ones you love so much. It’s our goal to make them feel
both healthy and happy. We develop soothing light and healthy air
electronics, which help you create the best possible environment for
your baby or child to grow up in.

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Company Overview
Soothing light and projector Product can be innovative and valuable product. The business type
of the company is B2c business. Transactions will conduct directly between the company and
consumers. Consumers are the end-users of its products. This product will be at the department
store retailer, super market retailer and e-retailer. Department store retailers will offer products at
various pricing levels. After ads high level of customers to convenience enable of products to be
purchased. Supermarkets have significant buying power and therefore often retail goods at low
prices. E-retailer enables customers to shop on line via the internet and buy products which are
then delivered. This type of retailer is highly convenient and is able to supply a wider
geographic customer base.

Product Retailer Consumer

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The purpose is to sound sleep and create enjoyable life of baby by music of night light. The
company will keep good communication with consumer. Also will offer job opportunity and will
reduce the unemployment problem in Bangladesh. The business will be spread all over the
Bangladesh and mothers of rural areas also could buy the product for their child. Need to supply
the product in rural areas retail business. Need to ad in newspaper, bill board, use e-commerce,
on line business, FM radio and television. We will increase our sales by 3 percent in each quarter
of this year in each region in which we currently operate.

The target customers are mothers, consumer of our product. This product is most likely to be
of great use to those businesses that are eager to promote their activities and reach out to the
customers to help pick up their flow and compete in the spotlight.

Company will offer discount for wholesale. We will sponsor to arrange program. Thus we will
promote our product. Practically low prices have always acted as an incentive to buy more.

Consumers usually face to a broad array of our products that might satisfy their need light at
night and sweet song for baby. Satisfy customers will buy again our product and tell others about
their product experience. Our product will contain the quality to satisfy our customers.

No competitor in the business when we will be starts our business. So it has the advantage to
build up a strong relationship with consumers.

Our company is the partnership business. Every owner will invest and bear the profit or loss of
the business.

Product Description

Soothing Light & Projector create the ultimate bedtime ritual! Turn baby's room into a sky
full of stars. With the animated projector that can be chosen from 3 different color projections:
red, blue, green or all 3. The projector also features a separate nightlight using cold LEDs for
child safety. There are 4 pre-programmed family Favorite lullabies that can be controlled with

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the intuitive button on the front. It has a built-in microphone that works as a sound activator;
once your child suddenly starts crying at night, the projector will automatically activate and
start projecting to soothe baby back to sleep. The auto shut down timer makes sure the
projector won't stay on all night to reduce power consumption.

Features, benefits & full Description of the product

1. Product dimensions: 160 x 160 x 65 mm
2. Box dimensions: 190 x 190 x 190 mm
3. 3 Different Light Colors: Choose from red, blue or green, or play all three colors in sequence
4. Separate Nightlight Function: Control the nightlight with a separate button
5. Optional Sound Activation: A built-in microphone works as a sound activator, ensuring that if
your child suddenly starts crying at night the projector will automatically start projecting for 30
minutes

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 6. Pre-programmed Lullabies: Choose from 4 lullabies that can be played simultaneously with the
projector and/or nightlight, including Twinkle Twinkle Little Star, Rock bye Baby, Morning has
Broken and Au Clair de la Lune
7. Low Power Consumption: The projector uses LED lights and has an auto shut down function
which significantly reduces power consumption
8. Cold LED: The LED's produce cold light and are not dangerous to your child
9. Auto Shut Down Timer: Automatic shut down after 30 minutes reduces power consumption.
When the voice activation is set-up it will re-activate.

Industry Analysis
Baby Protector with Nightlight is a revolutionary product that will make life of working parents
easier. There is a need of such product in the market that can help working or unemployed
parent to keep his/her child entertained. There is no close substitute of this product, it is easier
for us to capture the market’s attention. The product will turn out to be a necessity rather than
a luxury, just like i-pads or tablets are for these new born generations.

Economic Environment: It is when the business has a great influence on a country’s economy,
on its GDP or other factors. The way we see this product will not have a negative impact on the
country’s economy unless there is a hyper inflation caused. Since this is a new business, it will
require high capital and skilled labors, which results in higher revenue for government through
tax and lesser unemployment.

Demographic Environment: It helps to identify the target markets for the particular product. It
classifies its market by age, gender, income, social class and etc. Here the product is for the
babies aged from 0-2 years, since they don’t have purchasing power our target consumers will
be their parents. Hence the product should be linked with common emotion they share with
their child. The most challenging thing for us might be producing the device which is affordable
for all the classes. Hence the income ratio wouldn’t matter as all the classes can afford it. This
product will be designed for infants bought by parents of all the classes, the drawback might be
gaining their trust with the product.

Technological Environment: A change in technology will affect how a business is doing, a

business might have to change their operating strategy as in their whole technology

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environment. If a factory is capital intensive then the labors will be substituted by machineries
which might result in higher unemployment rate. However to operate these machines high
skilled labor will be needed which means a person with good literacy. This might help to
increase the country’s literacy rate, also producing goods with machinery will assure better
quality of goods and output per hour will be more than a labor intensive factory. These will
have a direct positive effect on company’s turnover, and help to increase it further.

Geographic Environment: It categorizes the location of the business/product. It helps identifies

which area is in need the most. Also, it helps the manufacturer to decide which area it should
start with, for instance; a state having a high percentage of birth rate compared to other states
will be beneficial to start distributing the Baby Protector with Nightlight. If the manufacturer
decides to open his factory there, it would also save his transportation cost and it will be easier
for the entrepreneur to capture the market in that particular state.

Legal and Political Environment: Political environment is to keep in mind about political
situation in the country, whether the product will be allowed by the government or is there any
type of future instability that could harm the production process. Moreover, legal environment
is the legislation given by the host country against the product also if there is a patent issued for
the product by any foreign companies. After researching all these, a company should starting
producing its product. If there is no patent and the political situation is stable it would be
beneficial unless there isn’t and legislation imposed.

Competitive Environment: is to have a brief idea about the existing competitors or any new
firm coming up with similar idea or substitute. If there isn’t any competitors, it’ll be easier for
the firm to capture the market share and dominate it (i.e. achieve monopoly). However, if there
is a firm producing anything close to it, then the manufacture should assure fine quality of
goods in a cheap price to gain the attention of the consumers.

Market Analysis
Market Segmentation: Dividing market into smaller groups of consumers with distinct needs,
characteristics or behavior that might require separate marketing strategies. A market can be

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classified into Geographic Segmentation, Demographic Segmentation, Psychographic
Segmentation and Behavioral Segmentation. Here we will be using Geographic, Demographic
and Psychographic segmentation. Beginning with demographic segmentation, the variables that
demographic have are Age, Gender, Family Cycle and Income. Here this product is mainly
designed for 0-2 years baby, since they don’t have the purchasing power, our target consumers
will be their parents. The family cycle means the details about the family or the earner, i.e.
whether it is single mother or couple or old age people with children or working parents. Here
we are looking for such family whose annual income is between 180,000 to 400,000 BDT
(Aspirers), such family will be able to afford the product for their children. The total market size
of our product is actually uncertain since, the retailing landscape has changed into the virtual
platform and it is much easier to access malls and purchase products online, our consumers will
be able to purchase it globally. At the beginning the product will only be available nationally
after capturing the domestic market, we will try to attract foreign buyers. Hence the market size
of the product is uncertain. Then comes the Social class and Lifestyle of the market which
categorized under Psychographic Segmentation. Here we will aim for the families above middle
class, with a Strivers lifestyle. We are looking for people who are willing to try something new
and earn well to experiment the innovative product. Behavioral Segmentation is to judge
whether the consumer is loyal and is the attitude towards the product positive. Since this a one
time purchase thing, here loyalty means the word of mouth, is the consumer going to speak
well about the product to his associates/relatives. If they do it certainly means they are quite
happy with the product and have a positive reaction.

Target Market: is the process of selecting and evaluating each market segment one or more to
offer them the product. As mentioned above, here the target market are the parents, though
the product is designed for infants.

Positioning: is the product is defined to the consumer on it’s important attributes or quality.
Here we are mainly trying to prove that the performance of the product will be better, it won’t
be a luxury item but a necessity. The product will catch consumer attraction since it is very
reliable and new in the market, there are no other close substitutes. The first priority will be
communicating with consumers and aware them about the benefits. We will give them a

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bundle of benefits with competitive advantage, and a clear idea about the product. It will be a
solution for the consumer not a product. The price they pay will be the reward they buy for
themselves. Hence, we want a vivid image for our consumers, and let them know how distinct
our product is and can be beneficial to them.

SWOT Analysis:

Strengths Weaknesses

 Our product is very much innovative.

 Attractive and unique design.
 The use of a highly efficient, flexible
business model utilizing direct
consumer sales and distribution.
 We’re introducing this product for the
first time in Bangladesh.
 No competitors.
 Continuous technological development.
 Environment friendly product.
Opportunity
 The reliance of outside capital
necessary to grow the business.
 Limited source of finance.
 The difficulty to develop brand
awareness as a start-up company.
 Lack of experience.
Threats

 Creates employment for local people.

 Participation within a growing industry.
 Decreased product costs through
economies of scale.  Future/ potential competition.
 Economic development as it is a  New in the market.
domestic company.  No brand image.
 Increase product quality.  Political unrest.
 High possibility to capture maximum
market share.

MARKETING PLAN
A mother or guardian face a lot of difficulties to maintain their work and baby. They can’t
always afford to stay beside children. Most of time they complete their work when the baby is

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at sleep. In case when the kid is awaken she can’t manage to work their household’s deeds. We
want to help them.

This will also enable a better control of costs, to ensure that we won’t exceed 1499tk to
produce it. Nevertheless, by the end of year we are planning to gain at least 15% of the market.
Our monthly target is to produce 250 unites and sell 240 units.

We will follow intensive distribution strategies. We will distribute our products in as many
outlets as possible. Because customers easily buy our products. We adopts both direct and
indirect sales model rather than only using the traditional distribution model.

Online shopping is become a popular shopping method. It’s save our time, save energy, save
fuel, easy to search merchandise customer want to buy etc. our website will be used as the key
marketing tool to distribute the products. It will be a cheap and effective method of distributing
information regarding our product.

We choose must be easily accessible for customers. So we will choose a retailer or distributor
who knows the local market.

We want to get our brand in front of the public and attracting customers. There are numerous
ways to promote our services. In the first one year we are only planning simple promotional
activities, however effective which would get us our target customers. Only a select few types
of promotional activities will be done:

 Leaflets: we can distribute our leaflets among the working mother who can hardly manage
enough time for her children.
 Banners: we can hang our banners on kids section in market, child care etc.
 Social media: It’s free to sign up for an account on Facebook and other social media sites, it’s
free for my company to maintain a presence on these networks.
 Showroom display: We pay different showroom to display our product.

Promotions are used launching our new products or aggressively trying to grow our customer
base. We will be using innovative ideas for our advertisements.

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Operation Plan
The facilities management will solve the customer problem. Warranty product will be repair by
technician. Realize about the consumer want. Each projector has 6-month-warranty. Feel free to
contact us if it breaks within 6 months. Soothing light develops reliable baby electronics with a
beautiful design and maximum ease of use to make life a lot easier for parents with newborns so
they can enjoy this special time.

Raw materials will be waste plastic in our country and circuit. After process plastic will make
product body. Then technician will set circuit inside the body. Two machine will use for make
our product. One is plastic processing machine from waste plastic and another is circuit machine
to produce circuit.

Operating temperature range: 10-40 °C

Storage temperature range: -20-40 °C

Power consumption: <0.5W

Number of Cold LED’s: 5 (color – 0.06W) + 1 (white – 0.02W)
Adapter input: AC 100-240V 50/60Hz 0.3A
Adapter output 5.0V 550mA
Bluetooth®: Class 1, range: 100 meters
Bluetooth® version: 2.1
Bluetooth® searching current: 70-87mA
Bluetooth® paired current: 80mA
Bluetooth® music playing current: 60-120mA
Product material: ABS

There are three categories of retail distribution: intensive, selective and exclusive. Our company
will follow the intensive distribution policy. Our company will puts products into as many retail
outlets as possible.

The distribution process will be by retailing and sells man of our company. Order will be fulfill
daily from the head office & will fulfill weekly projection in other areas order.

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The company will maintain a research team. The research team will invent the new method,
improve quality and fulfill present customer want. Research team will work about present
marketing strategy & give information which method should apply. The amount of research
invest is………………..

Break even analysis process used to determine profitability at various levels of sales.

FC
BEP=
P−VC

Finance sector will be control by financial committee. Financial control will help us ton to
periodically compare our actual revenues, costs and expenses with our budget. By this control
producers help managers identify variances to the financial plan and allow taking corrective
action if necessary. Controls to help reveal which specific accounts, departments and people will
vary from the financial plan.

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Human Resource Management Plan

Noor Mohammad Rakib: Chief Executive Officer,

As the CEO of our service based business it is Rakib’s duty to predict the future of the business
and help it grow by the methods provided by him. He will take every measure possible to make
sure our business becomes a profitable business. He will be aided by his senior management
team which included the financial planner, Advertising Director and our Marketing Planner.

Mohammad Naveed Hussain: Financial Planner

As the financial Planner, it is Mohammad Naveed Hussain duty to make sure financially the
business runs smoothly. General Investment analysis must be provided along with cash flow of
the business and calculate the profits and loss of the business.

MD. Zawadul Islam Khan Sohan: Advertising director

Our Advertising director is the head of our promotion planning and advertisement planning. The
advertising director will come up with in MD. Zawadul Islam Khan Sohan innovative ideas
which will attract our customers and lure them into investing in our service.

Marziana Sharmin & Anika Monzury: Marketing Planner,

The marketing planner will help to brainstorm marketing campaigns, and then run campaigns
through test scenarios to identify any problem areas which our business could lack in.

Arefin Payal :Technology Experts:

Information technology experts will be hired to make sure the business runs efficiently, it is their
job to provide and connect our customers to our app via online providing them with simple steps

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 to purchasing from online. They will daily update and put in the new offers and deals provided
by us as a business to our devoted customers.

Financial Plan:
We’ll be doing partnership business, we’re six partners, each of us is a general partner. As we’re
six partners, each will contribute 5 lac, in total 30 lac. But our initial investment will be 40 lac,
for the remaining 10 lac, we’re looking for investors or loans.

The projected allocations of our initial investment are as follows:

 Machineries = 650000 taka

 Land lease = 200000 taka
 Labour = 650000 taka
 Materials = 590000 taka
 Manufacturing overhead = 174000 taka
 Marketing expense = 240000 taka
 Advertising = 186000 taka
 Office rent = 174000
 Salaries = 185000 taka
 Office expense = 50000 taka
 Office equipment = 220000 taka
 Transport cost = 140000 taka
 Insurance = 176000 taka
 Cash in hand = 115000 taka
 Cash at Bank = 250000 taka

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Projected income statement for the ending 31st march 2017
Details Taka Taka
Sales(1993×1499) 2,987,507
(-) Cost Of Goods Sold:
Materials 590,000
Labour 650,000
Manufacturing Overhead 174,000
1,414,000
(-)Closing Inventory( 500×1499) (749,500) (664500)
Gross Profit 2,323,007
Less: Operating Expenses:
Marketing Expenses 240,000
Advertising Expenses 186,000
Transportation Cost 140,000
Office Rent 174,000
Salaries 185,000
Office Expenses 50,000
Electricity 102,000
Insurance 176,000
(1,253,000)
Net Income Before Taxation 1,070,007
(-) Taxation 5% (53,500)
Net Profit After Taxation 1,016,507

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Balance Sheet as at 31 March 2017
Details Taka Taka

Fixed Assets:

Land Lease 200,000

Machineries 650,000

Office Equipment 220,000 1,070,000

Current Assets:

Closing Inventory 749,500

Cash in hand 115,000

Cash at bank 250,000 1,114,500

Total Assets 2,184,500

Liabilities:

Accounts Payable 280,000

Loan 1000,000 1,280,000

Equity & Capital

Investment 3,000,000

Net Profit 1,016,507 4,016,507

5,296,507

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Break-even-analysis:

Break-even-point= Fixed cost ÷ Contribution margin per unit

Contribution margin = Selling price per unit – Variable price per unit

Contribution margin= 1499 taka – 540 taka

= 959 taka

Break-even-point (in units)= 1253000 ÷ 959

= 1307 units

Break-even-point (in taka)= 1307 × 1499tk

= 1959193 taka

Margin of safety (in units)= Actual sales units – BEP units

= 1993 – 1307 units

= 686 units

Margin of safety (in taka)= 686 × 1499 taka

= 1028314 taka

Risk management plan:

As every business incurs risk, therefore our company is insured by Bangladesh Insurance
Company. As a subscription fee we yearly pay 176000 taka from the profit we make. As a result

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Bangladesh Insurance Company is liable if any damages occur in our company, they will pay us
some amount as a compensation. On other hand we have 250,000 taka in Bank, so that it helps
us to recover if any damages occurs in our company.

Conclusion
We are planning tight control measures to closely monitor development and subscribers service
satisfaction. This will enable us to react in correcting any problems that may occur. As shown
earlier our financial plan, with the marketing strategy we are planning to move forward we
expect to succeed in our business plan and hope to expand even further in the foreseeable future.
With the current trend of Bangladesh’s online based businesses, we plan and believe to succeed
in our plan, and if we keep increasing our profits each year, we again, hope and we can to expand
internationally with our business. We can only do that by taking one step at a time, and we do
believe that our business can make huge success. It is a realistic business as it requires a low sum
of investment which can later on become a lifetime of investment if planned and processed the
right way. Soothing light & Sound will not only help your baby to sleep but will also help you to
do your own works on proper time and make your life successful. Keep going working parents
your babies are big enough to take care of themselves.

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References
1- Idea about the product:
http://content.webcollage.net/apps/cs/mini-site/babysafetyzone/module/jpma/wcpc/
1418221759878?channel-product-id&enable-reporting=true&report-once=retailer-direct-
product-button-click&showtabs&suppress-site-prefs&wc-target&from-pp
2- Understanding Business-9th Edition. Nickels, Mc Hugh, Susan Mc Hugh
3-

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