PustiBlock

Team Name: Trinity

Team Members
Nasim Ul Haque
Omaer Ahmad
Sabina Khan
Our product

PustiBlock
Our Product-PustiBlock
• PustiBlock Increases
• Body weight gain by 20 percent.
• Nutritive value of hard feed by 15 percent.
• Milk yield of cattle by 26 percent.
• Chances of strong and healthy calves’ birth if
supplied to the pregnant animals.
Our Product-PustiBlock
• PustiBlock Reduces
– Calving interval of cow.
– Methane gas emission by bovine animals by
almost half.
Current Products in the Market
• International Products
• Monensin Based Medicines
– Increase the production of propionic acid and
prevent bloat
• Mootral
– Reduces cows' methane emissions by at least 25
percent through the use of garlic based extracts.
Current Products in the Market
• National Products

• ACI Feed
– Sales concentrated in Daulatpur and Manikganj
• CP feed
– Sales Concentrated in the Rangpur area.
Target Customers
Marketing Mix
• Product
– PustiBlock, is a food supplement that reduces the
feeding cost for cattle farmers, helps bovines to
gain weight and increase milk yield.
– About 500gm per day per cow is required.
– The product would be available in 20kg packs
MARKETING MIX
• Price –
– A price of tk. 360 per 20 kg pack or about tk. 18
per serving per cow.
– The retailers will have a profit of 30tk per pack and
– Our profit margin will be 30%.
• Place
– Cattle feed outlets
– Mostly concentrated in the Rajshahi Division,
specially in Sirajganj District.
 Marketing Mix: Promotion
Stage – 04
Performance
Portraying PustiBlock as a product
which is helping the society and
environment as a whole.
Concentrating on the feeling that
by using our product they are not
only helping themselves but are
also serving the community.
Marketing Mix: Packaging
Marketing Mix: Packaging
Organizational Plan
CEO

Marketing Accounts Production

Sales Manager HR Manager
Manager Manager Manager
Resource Requirement
Capital Need Estimation
Long –term capital needs Taka

Land purchase 2,400,000

Building 6,000,000
Equipment 300,000
Deep tube well 50,000
Office furniture 300,000
Trade license 1,500
Total Long-term capital need 9,051,500
Total Working Capital Needs(6 months) 11,740,500
Total 20,792,000
Debt-Equity Ratio
• 30% Equity(6,237,600 tk) from 3 shareholders
equally
• 70% loan(14,544,400) from bank with
– 5years long term loan
– 1year rest period.
– Bank interest 12%
Financial Feasibility
Scenarios Assumptions IRR (%) NPV (Taka)

Sale growth: 10%

Base case Cost growth: 10% 66 14,893,551

Sales growth:
Best case 10% 90 28,618,396
Cost growth: 5%

Worst case Sales growth: 5% 25.41

Cost growth: 10% 3,529,862
PAYBACK PERIOD

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

(9,051,500) 5,581,900 5,313,131 7,788,149 10,755,416 14,705,651

Thank You

Question Please
Appendix
Nutrition Composition
Proximate Analysis (In
Nutrients
Percentage)
Crude Protein 23.0
Crude Fiber 6.0
Ash 24.0
Calcium 4.5
Phosphorus 2.0
Zinc 195 ppm
Copper 175 ppm
Iodine Trace
Moisture NMT 13%
Raw Material Composition
Dry Season Wet Season
Ingredient (December to May) (June to November)
Part Per 100 Kilogram Mixture
Molasses 40 40
Rice Bran 37.3 38.3
Urea 8 6
Cement 9 10
Salt (NaCl) 5 5
Trace Minerals 0.5 0.5
Tricalcium phosphate 0.2 0.2
Zinc sulfate 75 g 75 g
Potassium iodide 50 g 50 g
Copper sulfate 75 g 75 g
 Detailed Marketing Plan-
Segmentation
• Geographic
– Dairy Farmers of the Greater Rajshahi Division
– Dairy Farmers of rest of the Bangladesh.
• Behavioral
Based on Gender Based on Importance of Dairy Farm
in the Family Income
Maintained by Men Considers as Primary Profession

Maintained by Woman Considers as Secondary Profession

 Detailed Marketing Plan - Demographics

02 Cow A family farm •Keeps two indigenous cows.

Farm with .4 hector •Feeding system consists of three to four hours per day of grazing
(ha) of irrigated on communal land and stall feeding with some concentrates.
land located in •About 63 percent of milk produced is sold to the local milkmen.
the rural upland.

10 Cow A farm with 1.5 •Keeps Two Indigenous And Two Cross-breed Cows.
Farm hectors of •The Feed Basis Is Provided By Crop Residues And Fodder.
irrigated land (no •Delivers 90 Percent Of The Milk Produced In The Nearest
land rented). Collection Point.

25 Cow A farm in the •Keeps 25 cross-bred cows.

Farm rural area with •The feed ration consists of cereal straw, green fodder,
1.8 hectors of concentrated by-product such as oil seeds wheat bran, molasses
irrigated land. and urea.
•Over 97 percent of its milk is sold at the nearest milk collection
point.
Detailed Marketing Plan - COMPETITIVE STRATEGY (PORTER’S FIVE
FORCES)

Type of Competitive Forces Intensity

Threat of intense segment Low
rivalry
Threat of new entrants High
Threat of substitute products Moderate
Bargaining power of buyers Low
Bargaining power of suppliers Low
Detailed Marketing Plan - COMPETITIVE
STRATEGY
CAPTURING THE LARGEST Exert extensive promotional efforts to
create maximum awareness in the target
POTENTIAL MARKET market and capture as much market
share as possible.
EXPANDING THE TOTAL Put in continuous effort to expand our
market. First area of operation will be the
MARKET north Bengal but will gradually expand the
market to cover the whole country.
POSITION DEFENSE Positioning based on A strong value that is
to substantially increase the milk
production of cows for an affordable
price.
PREEMPTIVE DEFENSE Our low price will act as A preemptive
defense strategy against this host of
competitors. This low price won’t allow
them to make significant price cuts
Income Statement
Year 01 02 03 04 05
Sales Revenue 29,700,000 35,937,000 43,483,770 52,615,326 63,664,588
Expenditure
Raw Material 19277100 23325291 27,672,568 32,877,670 39,115,230
Wage 696000 818400 958,320 1,118,040 1,300,121
Packaging 45000 54450 65,885 79,720 96,461
Electricity 240000 264000 290,400 319,440 351,384
Depreciation of 60000 60000 60,000 60,000 60,000
Eqp
COGS 20318100 24,522,141 29,047,173 34,454,870 40,923,196
GROSS 9381900 11,414,859 14,436,597 18,160,456 22,741,392
PROFIT(sales-
cogs)
Income Statement
Year 01 02 03 04 05
Operating Expense
Salary 1572000 1729200 1,902,120 2,092,332 2,301,565
Ads & Promotion 328000 498000 621,000 911,500 1,029,500
Transportation 1800000 1980000 2,178,000 2,395,800 2,635,380
Office Rent 420000 462000 508,200 559,020 614,922
Utilities 48000 52800 58,080 63,888 70,277
Maintenance 12000 13200 14,520 15,972 17,569
Depreciation Building 240000 240000 240,000 240,000 240,000
Depreciation Tubewell 1999.92 2000 2,000 2,000 2,000
Depreciation Equipment 60000 60000 60,000 60,000 60,000
Depreciation Office Furniture 60000 60000 60,000 60,000
60,000
Total Operating Expense 4541999.9 5,097,200 5,643,920 6,400,512 7,031,213
Income Statement
Year 01 02 03 04 05
Interest 1746528 1,746,528 1,746,528 1,746,528
expense
Net income 4839900.1 4571131 7,046,149 10,013,416 13,963,651
before tax
Tax(0%) 0 0 -
- -
Net income 4839900.1 4571131 7,046,149 10,013,416 13,963,651
after tax
 Preparation of Cash Flow and Calculation of IRR and NPV

Year 0 Year 1 Year2 Year3 Year4 Year5

Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash Cash
inflow outflo inflow outflo inflow outflo inflow outflo inflow outflo inflow outflo
w w w w w w
Sales
29,70 35,93 43,48 52,61 63,66
0,000 7,000 3,770 5,326 4,588
Cogs
20,31 24,52 29,04 34,45 40,92
8,100 2,141 7,173 4,870 3,196
Opera
ting 4,542, 5,097, 5,643, 6,400, 7,031,
Expen 000 200 920 512 213
se
 Preparation of Cash Flow and Calculation of IRR and NPV

Year 0 Year 1 Year2 Year3 Year4 Year5

Infl Outfl Inflo Outfl Inflo Outflo Inflo Outflo Inflo Outfl Outfl Outfl
ow ow w ow w w w w w ow ow ow
Tax -
Interest - 1,746 1,746 1,74 1,74
,528 ,528 6,52 6,52
8 8
Capital 9,05
Investm 1,50
ent 0
Total 9,051 29,70 24,86 35,93 31,365, 43,4 36,437 52,61 42,60 63,66 49,70
,500 0,000 0,100 7,000 869 83,7 ,621 5,326 1,910 4,588 0,937
70

-
 Preparation of Cash Flow and Calculation of IRR and NPV

Year 0 Year 1 Year2 Year3 Year4 Year5

Inflo Outfl Inflo Outfl Inflo Outfl Inflo Outfl Inflo Outfl Outfl Outfl
w ow w ow w ow w ow w ow ow ow
Cash (9,0 4,83 4,57 7,04 10,0 13,9
Flow 51,5 9,90 1,13 6,14 13,4 63,6
00) 0 1 9 16 51
Add
Back 362, 362, 362,
Dep 000 000 000 362, 362,
000 000
Net
Cash (9,051,500) 5,201,900 4,933,131 7,408,149 10,375,416 14,325,651
Flow
Preparation of Cash Flow and Calculation of IRR and NPV

• Net Present Value = 14,893,551 taka,

• Internal Rate of Return = 66%
 Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Asset
Fixed Asset
Land 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000
Building 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000
Acc. 240,000 480,000 720,000 960,000 1,200,000
Depreciation
5,760,000 5,520,000 5,280,000 5,040,000 4,800,000
Equipment 300,000 300,000 300,000 300,000 300,000 300,000
Acc. - 60,000 120,000 180,000 240,000 300,000
Depreciation
240,000 180,000 120,000 60,000 -
Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Furniture 300,000 300,000 300,000 300,000 300,000 300,000
Acc. Dep - 60,000 120,000 180,000 240,000 300,000
240,000 180,000 120,000 60,000 -
Deep Tube 50,000 50,000 50,000 50,000 50,000 50,000
well
Acc. Dep - 2,000 4,000 6,000 8,000 10,000
48,000 46,000 44,000 42,000 40,000
Total Fixed 8,688,000 14,326,000 13,964,000 13,602,000 13,240,000
Asset
Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Current
Asset
Cash 11,740,500 5,581,900 5,626,199 8,101,217 11,068,484 15,018,719
Intangible 1,500 1,500 1,500 1,500 1,500 1,500
Asset
Total Asset 20,792,000 29,971,400 35,653,699 37,766,717 40,371,984 43,960,219
Liability
Bank Loan 14,554,400 14,554,400 11,643,520 8,732,640 5,821,760 2,910,880
Total 14,554,400 14,554,400 11,643,520 8,732,640 5,821,760 2,910,880
Liability
Balance Sheet
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Owner's
Equity
Capital 6,237,600 6,237,600 6,237,600 6,237,600 6,237,600 6,237,600
Retained 9,179,400 17,772,579 22,796,477 28,312,624 34,811,739
Earnings
Total 6,237,600 15,417,000 24,010,179 29,034,077 34,550,224 41,049,339
Owner's
Equity
Total
Liability And 20,792,000 29,971,400 35,653,699 37,766,717 40,371,984 43,960,219
Owner's
Equity
 Sales Revenue
Description unit year 1 year 2 year 3 year 4 year 5
Weight of
PustiBlock per kg 20 20 20 20 20
packet(kg)
Sales quantity per
numb
month(no. Of 7500 8250 9075 9983 10981
er
packets)
Weight per
ton 150 165 182 200 220
month(ton)
Selling price per
packet(wholesale taka 330 363 399 439 483
price)
Total annual sales
29,700,000 35,937,000 43,483,770 52,615,362 63,664,588
revenue