PROYOJON SUPER STORE

PREPARED FOR: MR. FAISAL WALI

GROUP MEMBERS: SUMMAIYA BARKAT NISHATH QUAMRUL S.M. SIFAT JAMIL KASEMA SADEQUE

ID: 101 0008 030 093 0483 030 101 0338 530 101 0154 030

BUS 401.4 NORTH SOUTH UNIVERSITY BBA DEPARTMENT

PROYOJON SUPER STORE

THE BIG IDEA:

Establish a Superstore
Provide discount coupons to the BOP people (50% discount on

basic essential food items)

BOP people can shop from Sunday-Tuesday

Mid & High Income people shop from Wednesday-Saturday

PROYOJON SUPER STORE

Vision:

Serve the underprivileged people of the community by providing them discount to purchase their daily essentials and establish the brand Mission: Facilitate as a shopping destination where there exists no boundary of social class. Thrive to become a trustworthy food supplier of the nation and thus spread our social dimension in all spheres of Bangladesh.

PROYOJON SUPER STORE

Applying the triumvirate framework of Social Business, 3Ps:

PEOPLE-poor people in Mirpur Area

PLATFORM- improving the quality of life: health & hygiene

PROCESS- convince the poor to shop from Proyojon

INDUSTRY ANALYSIS- SWOT

STRENGTH
Social Dimension Well trained Employees Just-in-time Inventory

WEAKNESS
Promotional Budget Insufficient Funds

OPPORTUNITIE S
Untapped Market Store Brand

THREAT
Competition Political Unrest

INDUSTRY ANALYSISCOMPETITORS
AGORA NANDAN MEENA BAZAAR SHOPNO PRINCE BAZAAR

Market Share of Competitors

Prince Bazaar 4% Shopno 11% Untap Market 15% Agora 37%

OTHERS

Meena Bazaar 22%

Nandan 11%

INDUSTRY ANALYSISPORTERS 5 FORCES

Threat of Substitutes-LOW Social dimension

Intensity of Rivalry-HIGH High Exit Barriers

Threat of New Entrants-LOW High entry cost

Bargaining power of Suppliers-HIGH Other Customers

Bargaining Power of CustomersMODERATE Other suppliers

COMPANY LOCATION

PRODUCTION PLAN

sustainable as well as effective, serving rightfully to the

Needs to be

vision of the business.

Strategy: Reduce intermediaries as much as possible.

PRODUCT STOCK FLOWS FROM SUPPLIERS TO CUSTOMERS

SUPPLY CHAIN MANAGEMENT IN DETAIL

WHO ARE OUR SUPPLIERS?

Offer to customers assorted types of products starting from basic home necessities like salt and rice to high end premium brand luxury goods.
Strategy:

Diversify and provide more choices for the regular customers to

make up for discounts provided on necessities to the poor.

WHO ARE OUR SUPPLIERS? CONTD

1. Remote village markets 2. Whole sale markets 3. Manufacturing companies 4. Proyojons product Offerings

ULTIMATE SUPPLY CHAIN MANAGEMENT PICTURE

HOW WILL THE RETAIL STORES LOOK?

COLOR INDICATORS

MACHINERIES AND EQUIPMENTS

OPERATIONAL PLAN 2013

FLOW ORDER OF SERVICES

MARKETING PLANCUSTOMERS

CUSTOMERS

2 segments

POOR AND UNDERPREVILEGED

Serving the social dimension of our business

MID LEVEL & HIGH LEVEL CUTOMERS

Shop at market price with VAT to provide profitability

MARKETING PLAN- STP

Segmentation

Targeting

Positioning

STP- SEGMENTATION
People of Mirpur area and nearby

Geographic Demographic (Income)

Discount coupon users (BOP) 20,000+/month

Psychographic Bottom of Pyramid Middle to upper class (Social Class)

STP- TARGETING

HIGH INCOME PEOPLE

MID INCOME PEOPLE

BOTTOM OF THE PYRAMID -MAIN TARGET GROUP

STP- POSITIONING

A shopping destination where there exists no boundary of social class. Our slogan: Apnar proyojone amra

MARKETING MIX- 4PS

Product
Extensive variety & value added services

Price

Middle to upper class- Value added pricing strategy

Special discount combo pack

Poor & underprivilegedflat 50% discount on certain items

Items

Pricing Tk. 15.00 Tk. 15.39

SPECIAL DISCOUNT COMBO PACK

Milk (regular), 0.25 liter Loaf of Fresh White Bread (130.00 g)

Rice (0.13 kg) Eggs (3.60)

Tk. 6.50 Tk. 32.71 Tk. 118.40 Skinless), Tk. 59.20

Balanced diet (2000 kcal)

Market price: 11,326.50 Tk. Discounted price: 5665 Tk.

Local Cheese (0.15 kg) Chicken (0.25 kg) Apples (0.34 kg) Oranges (0.34 kg) Tomato (0.21 kg) Potato (0.25 kg) Lettuce (0.15 head) Breasts (Boneless,

Tk. 45.90 Tk. 49.33 Tk. 12.60 Tk. 5.84 Tk. 4.50

Daily recommended minimum amount of Tk. 365.37 money for food per person

Weekly recommended minimum amount of Tk. 2557.59 money for food per person Discounted Rate: Tk. 1280 Monthly recommended minimum amount Tk. 11,326.50 of money for food per person (Assuming 31 days per month) Flat Discount of 50% applied: Tk. 5665

MARKETING MIX- 4PS

Place
Push & Pull Strategy Push: poor & underprivilege d Pull: middle to upper class

Mirpur

Promotion
Advertising Flyers Website Sales Promotion Discount Membership Coupon Public Relation Promote social cause Ensure successful promotional campaign

FLYERS

COUPON

FACEBOOK FAN PAGE

GROWTH STRATEGIES

ORGANIZATIONAL PLANHIERARCY
Organizational Hierarchy

CEO

CFO

CMO

COO

Recruitment Manager Accountant Sales Representativ e Sales Person Accountant

Cashier Accountant

Sales Person

Sales Representativ e Cleaner Cashier

ORGANIZATIONAL PLAN ( CONTD.)

Human Resource Strategy

Staffing Plan & Requirements

Selection & Recruitment Process

Leave & Holidays

ASSESSMENTS OF RISK
Credit risk

Natural or Incontrolable risk

Political risk Risk as a New Entrant Lack of Customers Risk

Market Risk Unfore seeabl e risk

FINANCIAL PLAN

GENERAL ASSUMPTIONS:
To initiate PROYOJON Superstore, well require a total of BDT 2

Crore.
Rent a 5000sq.ft. store for BDT.50,000 monthly rent with a

advance of BDT. 12 Lakhs.

FINANCIAL PLAN (CONTD.)

COST & REVENUE ASSUMPTIONS:
Cost of Equity = 11.50% Cost of Debt = 17% VAT = 15% Cost of Sales = 55% Margin = 35% No TAX

Straight-line Depreciation Method

FINANCIAL PLAN (CONTD.)

FINANCIAL STRUCTURE:

FINANCIAL STRUCTURE
Equity Angel Investors Bank Loan CSR TOTAL EQUITY COST COST OF DEBT 8000000 4500000 2500000 5000000 20000000 11.50% 17%

FINANCIAL PLAN (CONTD.)

FINANCIAL STATEMENT FOR FURTHER ANALYSIS:

Loan Amortization Schedule Income Statements

Owners Equity
Balance Sheet Cash Flow Projection Break-even Analysis

SUSTAINABILITY ANALYSIS
RATIO ANALYSIS BASED ON PREVIOUS PROJECTIONS:

Inventory Turnover Ratio Debt-Equity Ratio Net Profit Margin ROA ROE

2014 0.44 0.18 -0.04 -0.02 -0.03

2015 0.39 0.14 0.01 0.00 0.01

2016 0.39 0.10 0.03 0.02 0.03

2017 0.41 0.05 0.12 0.08 0.11

2018 0.46 0.00 0.10 0.07 0.10

SUSTAINABILITY ANALYSIS (CONT.)

Inventory Turnover Ratio: Cost of goods sold/Inventory
Inventory Turnover Ratio
0.48 0.46 0.44

0.42
0.40 0.38 0.36 2014 2015 2016 2017 2018

Inventory Turnover Ratio

SUSTAINABILITY ANALYSIS (CONT.)

Debt-to-Equity ratio = Total Debt / (Total Debt + Total Equity)
Debt-Equity Ratio
0.20 0.18 0.16 0.14 0.12 0.10 0.08 0.06 0.04 0.02 0.00 -0.02 2014 2015 2016 2017 2018 Debt-Equity Ratio

SUSTAINABILITY ANALYSIS (CONT.)

Net Profit Margin = Net Profit / Sales
Net Profit Margin
0.14 0.12 0.10 0.08 0.06 0.04 0.02 0.00 -0.02 2014 2015 2016 2017 2018 Net Profit Margin

-0.04
-0.06

SUSTAINABILITY ANALYSIS (CONT.)

RETURN
ON ASSETS = (Net Income / Total Assets) RETURN ON ASSETS (ROA)
0.10 0.08 0.06 0.04 ROA 0.02 0.00

2014
-0.02 -0.04

2015

2016

2017

2018

SUSTAINABILITY ANALYSIS (CONT.)

RETURN ON EQUITY = (Net Income / Total Equity) * 100

RETURN ON EQUITY (ROE)

0.14 0.12 0.10 0.08 0.06 0.04 0.02 0.00 -0.02 -0.04 2014 2015 2016 2017 2018 ROE

SUSTAINABILITY ANALYSIS (CONT.)

PAYBACK PERIOD = Initial Investment/Avg. Cash Inflows

PAYBACK PERIOD
Initial Investment Avg. Cash Inflows Payback Period 15528500 4769377 3.26

CONCLUSION

Sustainable Purpose Served

THANK YOU

ANY QUESTIONS?