Report on Jaago Tea Industries Limited

EXECUTIVE SUMMARY
For completing the subject Project Management we are engaged for almost two and half months for preparing project feasibility study report on set up a Tea industry. The fundamental focus on the study is from the primary description of the venture to the Management, Technology, Marketing, Financial and also the social responsibility activities.
In preparing this report we showed here the legal procedure and the terms, condition, finance etc for the venture. There are so many help we took from the internal and external sources of the Bangladesh Tea Industry sector. Here we present a new category of tea that will make the people more refreshed and give them a proper value of money.
We try to focus the real scenario of the tea industry of our country and the demand and preparing of the tea products. We also showed here the strengths and weakness of the producing tea products and tea sector of our country.
We have taken so many instructions and supports from different organization and also the particular person and we are really grateful for their co operations.
After having an eyed on this report one can understood about our tea production process and the associated activities.

OBJECTIVES OF THE REPORT

To complete every task there have specific objectives because by affording the objectives the whole will be conducted. The main objective of making this project report is to make a business plan on “Superior Tea Product”. Followings are the other objectives guided us to accomplish our task of preparing the report on the “Feasibility Study on JAAGO TEA INDUSTRIES LTD.”:

01. To develop our practical knowledge regarding the course named “Project Management”.
02. To gain the practical knowledge of undertaking a new project and making estimation of different cost and benefits of the project.
03. To learn how to do the tasks regarding a feasibility study.
04. If we ourselves want to develop any kind of project then making this report will help us.
06. Through this report we may serve our academic purpose to complete the stated course.
07. We may undertake the project we studied through this report easily in future.
08. The learning of feasibility study will help us in future when entered into the job sector.
11. To obtain the skill of report writing.
12. We try to implement our theoretical knowledge in this report, so it helps us to become more realistic.

13. We have gained the actual as well as practical knowledge about different topics that we have studied in our stated course ledge vast.

Business selection:
At first we selected three businesses to choose from. After market research and SWOT analysis of those businesses we have decided to make tea industry thinking of its good features and bright future. Together we selected our company name that is “JAAGO TEA INDUSTRIES LIMITED”. In the “Business Introduction” part this feature is described in details.

METHODOLOGIES OF THE REPORT

Methodology means how a specific subjective data and other resources we managed for the information. Our course Instructor Engr. M.A Ghulam Dastagir has assigned a job of preparing report on Feasibility Study of a project. The concept & details have been taken consulting with Engr. M.A Ghulam Dastagir & from different books; journals, Internet and people have practical knowledge & relented with the project of Plastic Industry and plastic products. Standard methods of report writing have been used. To prepare this report different types of date are needed for tabulation & analyze information regarding tea Industry and tea products have been accumulated from primary & secondary sources.
The methodology of our report is stated below: –
1. Data Selection:
At first it has been tried to identify required data for study in order to select the relevant data to follow the advice of our Course Instructor.
2. Data Collection:
To collect the data both primary sources (given case) and secondary sources have been used.
a. Primary sources:
• Face to face interview of Mr. Dev Prosad, Manager Shomonbagh Tea Factory, who has practical knowledge about tea products and also the tea industry.
• Face to face interview of different Officers & Senior Officers, executives, salesman, different outlets and so on.

b. Secondary sources:
• Different documents.
• Official reports.
• Internet.
• Books.
• Journals.

LIMITATIONS OF THE REPORT
In every sector or tasks there has some limitation that we cannot cross or overcome. Sometimes those limitations arise as obstacle for the task. The main limitations of our report regarding the “Feasibility Study of JAAGO TEA INDUSTRIES LTD” are given below:
01. Lack of practical applications in the different fields.
02. The practical implication is still unknown to us regarding our feasibility study.
03. We did not have lickings about the tea Industry and the tea products.
04. We are overloaded with the information from Internet regarding tea industry and the tea products. But maximum portion of the information is irrelevant for us and for the perspective of Bangladesh.
05. We face many problems when we deal with the financial aspect of our project as we do not have any practical knowledge about the set up of vast area of operation of industry.
06. Collection of information from different persons who has practical knowledge regarding tea industry and the tea products but sometimes they are unavailable for us to connect.
SCOPE OF THE REPORT

The sufficient scope or sector will provide a better strategy for a project or report. The report will be a concentrating on a distinct business plan on the basis of the concept we have got from our study of Introduction to business. We also take help from other soured. It will not contain in-depth study from any other sources accept some books and website. The modern life is now used to tea and in every sphere of food habits tea is inevitable. We cannot think our life cycle without having a cup of tea in the morning. As an agriculture based country we are concerning about to create a environment friendly product, so we have chosen tea. We thought for our country as well as for the farmers whose are running our economy. From that we are concerning about to implement this project feasibility study on the tea industry.

Topics Include:

– Business Selection.
– SWOT Analysis of Tea Company.
– General Description of the Venture.
– Industry Background
– Company Background.
– Goal/ Potential of the Venture and Milestone.
– Uniqueness of the Products.

Business selection:

We are starting our business with the slogan “YOU CAN WIN”. This is not only for inspiring our spirits, but also denotes the motivation of the youth.

Firstly we chose three businesses to start with our career. Those are:
1) Tea Industry
2) Coaching Centre
3) Chain Shop

By analyzing all the aspects of these businesses, we chose to go for the tea industry. In case of the business of Coaching Centre, there arise many problems. All the large cities of Bangladesh are fully covered with these. We can see some of them wherever we look in cities. Lack of quality of education provided and the tendency of commercialization makes this business risky and people don’t find the coaching centre trustworthy now-a-days. On the other hand the business of Chain Shop is a new concept and trends of business. But people like a third world country like Bangladesh are yet not prepared to adopt with this new system. They would rather like the traditional market and not accustomed with the chain shop concept. Hesitation and misbelieve about the goods of this shops makes this business unstable. But tea has a bright prospect in our country and thus the condition has influenced us to go for this business. Together we select our company name that is “JAAGO TEA INDUSTRIES LTD”.

The reason for choosing this business is the SWOT analysis. It is described in details below:
SWOT Analysis of Tea Company:

We know that SWOT refers to-

– Strengths of the company.
– Weakness of the company
– Opportunity of the Company and
– Threats of the company.
A brief discussion about our company’s SWOT analysis is given below:

# Strengths of the Company:

A. Tea is a product that is familiar to all of us and we have thorough knowledge about tea garden.
B. There are some tea gardens known to us who will help and supply us every possible and required thing.
C. We are self confident and are also ready to leave no stone unturned to materialize this project.
D. We have some known dealers who will help us to distribute the products all over Bangladesh.
E. Tea is a product of all seasons and it has demand to all categories of people.
F. Quality of the products because if the consumer could able to understand the benefits of using this products we expects that we may able to grab the market.
G. Providing district based sales outlets.
H. The basic characteristic of the products is its environment friendly.
I. The products price will be capable for the consumer than the others tea companies products.

# Weakness of the Company:

A. We have no practical experience about this sector.
B. We are entering now a high competitions market.
C. Cannot produce all categories of tea products.

# Opportunity of the Company:

A. We have our own transportation system to distribute products.
B. Continue R & D program for producing all categories tea products.
C. Grab the market showing the important feature of the products.
D. To export tea and expand the business all over the world.

# Threats of the Company:

A. A huge number of competitors are waiting for us.
B. In the concern of Bangladeshi people if they are not understand about the benefits of use of our product, it may also a threat for us.
C. Unable to produce all categories of products.

General description of the venture:

Our goal is a tea products manufacturing business. From the concern of the rapid increasing of the tea products in our country we are set here to produce a quality and standards measures products for the consumer. We the three people stood here for producing a high quality and new concepts of tea. It’s an innovation and we hope that we will be succeeding about it.

Our business is venture is a partnership firm holding with a high qualified of three people equal concept and trends. The business will be directed by us with the position of Management body and member of the board. There are appointed qualified employees for running the venture smoothly.

The business will be conducted from the factory office as well as the site office. The factory is Sreemangal near from the Moulavibazar city. The site office is situated in commercial area of Motijheel with a 50000 square feet floor. The land is purchased as a property of the venture and the office space is rented in an annual basis. The venture will be operated both the interconnection of the factory office and also the site office.

The owner of the venture will be the management body of the business. But we provide the effective and qualified employees as required and also the factory worker and so on. There may be ten people will be office worker and almost thirty people will be need for factory worker. We have the capacity to expand our business line and also the workers line.

Industry Background:

The industrial growth in tea sector in Bangladesh began just before the liberation of Bangladesh. Prior to that tea sector industry was on such a small that it is not wroth mentioning. A gradual growth in the tea industry was noticeable from the year 1980 to the year 1990. A large number of high quality tea industries were set up during this period and this sector started to play a significant role in the national economy. Since then the tea industries started to move faster than the other sectors.
The processing technology and the equipment initially came from abroad.
Today, we have a large number of small, medium and large size plastic goods manufacturing units with around 1 million workforces directly or indirectly employed in this sector.

We are developing nation and are yet to achieve world-class standard in many items of tea products. We lack in modern technology, our capital resources are limited compared to many developed countries. But we are yet to attain the world standard knowledge on the tea sector and also participate in various kinds of international tea fair.
Company Background:

The company is incorporated as a private limited company on 25th July, 2010 under the partnership obtains it registration on 10th June, 2009. The authorized capital of the firm is 100 million (Taka). The ratio of total capital is 60:40. 40% equity capital it means 40000000 taka will be provided by the owner of the firm and rest 60% capital will be provided by the term loam from the banks. With this financial position the company can settle large claims form its own sources and which contributes in generating public confidence towards the company.

Tea industry is a common and highly running business I perspective of our country but it has also some risks. If the management board is dependable and the financial condition is high then it is possible for the company to recover the risks and running in a sound way that generate a huge amount of profit and contribute to the economy of our country.

Important dates:
Registration date: 10th June, 2009.
Incorporation of Business: 25th July, 2010.

Company’s Vision:

To be the leader among the enterprises in the Bangladesh, both in terms of turnover and profit with 5 years ending 2015 by providing quality product and services excellence for total customer satisfaction.

We are committed to providing genuine value to the company’s stakeholders, including our customers, dealers, employees and communities.

Company’s Mission:

Our mission is to strive continuously to exceed customer’s expectations for achieving unlimited excellence by providing greater value to our customers than our competitors. Achieve the highest quality of products and services for the betterment of the society. Our aim is providing the society, significant new capabilities for successful careers to all.

Company’s Goal:

Our goal is to be the best company in our industry and it is our policy to deliver total quality goods and services to all of our customers. We accomplish this by adopting a set of quality policy throughout the organization.

Goal/ Potentials of the venture and milestone:

As a goal we have consider that the company will go a long way. The flagship our company that we established by our self. Driven with the goal statement the company gradually increased its activities over the years. During its journey the company will face a lot of difficulties but with the strong management approach we try to manage for surviving. Generating more revenue was not the only concern of our venture. The motto will be to build a dream without any doubt. To achieve the end destination we diversified our venture activities and these diversified activities allowed the company to come close to the people and involved in many development activities.
As a potential of the venture and the milestone we will consider some activities. They are presents below:

01. Contribution at Nation Building:

We will contribute a lot in nation building since its incorporation. These includes
Construction Contractors for the Roads & Highways, Bridges & Culverts, High-rise Buildings, Factory Buildings, Flood Embankment, Hydraulic Structures, Operation Maintenance & Toll collection, establishment of educational institutions, religious infrastructure and micro credit operation. Most of these activities directly contributed in building the nation and some of these indirectly helped the country by developing the education level, poverty elevation, capacity building and infrastructure development. Development of roads and highways, bridges & culverts, flood embankment helped the country in building the infrastructure and communication system while high rise buildings and factories helped people of this country in generating employment. Those in the end contributed a lot in developing the nation. It’s not possible for us to make at a time but it’s on our aim for the building of our nation.

02. Contribution to GDP:

By the growing of our company we will also contribute to our GDP. According to the World Bank report last year GDP was (US$ billions) 62. Developed infrastructure is playing a significant role in Bangladesh economy. As communication became easy people from rural places can get the modern facility of easily. With the help of modern machine and technology our GDP has increased significantly over the years.

03. Employment opportunity:

We established a new company where so many people to run our organization and these need make a huge amount of employment opportunity. We will expand our business as required as possible. We will motivate under privileged people in developing various labor oriented projects, small & medium enterprises and cottage industry which can generate more employment opportunity in the rural areas.

04. Contribution to national calamity:

We try to having our expanding hands in facing the national calamity. When ever the nation faced any natural disaster, flood or any other calamity we intentionally go there and involved in the relief activity. We will provide Relief among the flood affected people.

05. Disaster removal activities:

We have not kept us far away from participation in national emergency as it has participated in rescue operation. We will help the natural calamities affected people and arrange rehabilitation program for them.

Uniqueness of the Products:

There is some uniqueness of our products. This uniqueness is the basic power of our company. We can reach to the people by adopting the uniqueness of our products. Some of our products uniqueness is presents bellow:

01. The basic thing is that the produced tea makes people energetic.
02. It refreshes human brain.
03. It offers a reasonable price for quality products.
04. We shall produce new style and modern tea concept in our country.

OF
JAAGO TEA INDUSTRIES LIMITED

Topics Include:
– The Promoters.
– Share Holding of the Owner.
– Qualification.
– Legal form of Business.
– Organization Structure.
– Management Team.
– Consultants and Advisors.
– Banks.
– Auditors.
– Human Resource Management.

The Promoters:

We, the promoters of JAAGO TEA INDUSTRIES LIMITED, are the new generations with a new and acceptable concept. Though we had not a vast knowledge about constructing a business but since we made the plan of presenting new type tea product and we are truly interested to do such kind of business from that time we started tour fieldwork to implement our dream project. Since then we are trying to involve with different related projects of the country. We started our business in 2010. Actually we, the promoters, constructed our plan in 2009 and our operation begins in 2010. From the very beginning we involved ourselves into the operation in the limited units. Though we are new to the large scale of this business but some of us are experienced in small scale.
We are the promoters:

Figure: Lists of Promoters.

Share holding of the Owner:

It was a dream to produce the customer friendly tea for the society of the promoters. It’s almost needed ten (10) crore taka to establish our dream. There is 40% of the total capital provided by the promoters as equity and rest of the capital will covered as debt taking loan from the banks. Partners of the firm have the right to originate the policies & maintain the current operations. The whole management of the project is maintained by the partners of the firm. As an owner of the firm every partner will perform their own duties and their liabilities according to the partnership deed. The managers look after the business affairs and provide other logistic support to the firm. The supervisors and operational employees assist them.

Share holder and their position of the firm with share percentage is presents bellow:

Figure: Shareholder and their Share Percentage.

Qualification:

Figure: A table of the Qualification of the Promoters.

Legal form of Business:

Our project regarding tea named Jaago Tea Industries Limited is owned and managed by ourselves. Our firm will be a limited partnership, registered under Section 56-71. Here all promoters will bear liabilities up to their investment. As all of our owners are contributing different amount of capital, so they will share loss and profit in according to the percentage of share. The partnership of the firm is based on a written contract and which all partners of the firm duly sign. According to Sections 12 of the Act, our business will be conducted and right and liabilities of the partners will be conducted according to Sections 12 and 25 respectively. So by law the firm is operated and managed by Article of Partnership. The DEED OF PARTNERSHIP AGREMENT is given as follows:

ARTICLES OF PARTNERSHIP

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JAAGO TEA INDUSTRIES LIMITED

Today 10^th December, 2009 An Article of Partnership is created and signed by the particular partners with a view to establish a partnership firm named JAAGO TEA INDUSTRIES LIMITED. All concerned parties of the article are mature enough, capable to perform their responsibilities and maintain the restrictions of the article. All of them are Bangladeshi by born.

Figure: Articles of the Jaago Tea Industries Limited.

Name and Signatures of the partners:

1. ——————————————-      2. —————————————

3. ——————————————-     

Organization structure:

Jaago Tea Industries Limited is a Partnership Business and its promoters will directly manage its management and operation process. All of the promoters are well qualified and have some experience in business fields. Our workers are well trained and skilled and will work under direct supervision of the promoter. Under the head of organizational structure firm’s organ gram is demonstrate and a brief explanation is also given for of the authority and responsibility. Basically the promoters are the Managers of the organization. There has Chairman, Director, Production manager, Operation Manager, HR and Administrative Manager and Marketing Manager. All are qualified and well experienced and they are following their duty as equal basis. They also employed some high qualified and energetic worker and stuff and labor for running the business organization well and effectively. An organization structure of Jaago Tea Industries Limited is present below:

Figure: Organizational Structure of Jaago Tea Industries Limited

Management Team:

Chairman:

The Chairman of the firm is responsible for controlling the overall business, at the same time must consider the opinion of other owners (working as Managers in different division) in case of policymaking and management of the organization. Mahmud Iqbal, one of the owner and promoter of the project, will be the Chairman of our business firm. He will also act as the Manager of finance and will be responsible for making all the financial decisions & arrange various sources of financing both short term & long term.

Director (Operation):

Director of Operation will be responsible for controlling the overall production and supply chain management. Under his supervision we expect that, our firm will soon achieved high level of production output with an efficient system ensuring an effective supply chain relationship. Another owner as well as promoter Dipon Kumar will be our Director (Operation).

Director (Planning and Organization):

Chinmoy Saha will be our Director (Planning and Organization). From him qualification and the experience he can be able make new policy and plan that will be better for the organization. The company will be benefited from him both in the implementation and operational stages.

Consultants and Advisors:

We the new generations are the base of our business. Its include concept, thought, consultants, advisors. We have some qualified and experienced partners those are working our business management team and also the consultants and advisors. They will provide us with required consultancy for the accomplishment & regular operation of the firm. Therefore, we think their experience, and our knowledge and hard labor will work together to reach our target destination. Moreover we have some others consultants and as well as advisors. They are the persons that we are grateful for their contribution for our business. Some of them are:

01. Md. Awlad Hossain,

Deputy General Manager,

Janata Bank Limited.

02. Mr. Dev Prosad,

Manager,

Shomonbagh Tea Factory.

Banks:

As a Partnership firm and as the owners/promoters of the firm are solvent enough, the initial capital is supplied by the promoters (existing partners). But we are mainly dealing with such a sector where frequent purchase of material is a must. So we do need some long term and short term financing to run our business. We like to choose a 40%-60% equity-debt ratio. Here on 60% of the debt will be long term (employed in infrastructure and machinery) and to meet up monthly working capital need short-term loan will be taken as form of cash credit. The management of the firm has selected a bank for submitting the proposal of business and the feasibility study for their kind perusal:

1. Dutch-Bangla Bank Limited.

Corporate Head Office,

Motijheel C/A, Dhaka.

As we select the Dutch-Bangla Bank limited for supporting our debt amount for our business. But we also select some other banks for future support and backup of debt on long term and short term basis, when we are liked to expand our business area and also the production area. These banks are:

01. Janata Bank Limited

      Head office (Janata Bhabon)

Motijheel C/A, Dhaka.

02. Arab Bangladesh Bank Limited

      Principal Branch

Motijheel C/A, Dhaka.

Auditors:

To know the firms accuracy and effectiveness every firms should have auditors and audit plan. Our firm believes in accuracy and transparency. So we will maintain a well-designed auditing system. Under this system auditing activities are dividing into two parts, i.e. Internal and External.

Internal Auditing activities will be conducted by the Finance and Accounts division under the supervision of divisional Managers. They will prepare monthly statement and other supplementary statements as required and make necessary correction.

External Auditing activity will be conducted once a year by a renowned audit firm.

Human Resource Management:

Human Resources Management is the base of a firm because how will the firm run and what type of employees are need there are selected by the department of Human Resources Management. The firm Excellency and the efficiency is depends on the correct recruitment and selection of the employees and managed them. Our firm believes on employee motivation and try to ensure an atmosphere i.e., the working area and as well as in the organization where employee and owner can work together. Moreover we try to employee skilled and trained staff and labor to ensure maximum utilization of our capacity. Manager of Human Resource handles our Human Resource department and he tried to accumulate the information from down level of the organization to the top level. And conducted required step to develop a safe and sound workplace along will satisfied worker.

Generally Human Resources Management refers as:

–          Staffing Budget and

–          Staffing Planning.

So our strategy about our Human Resource Management is present below:

Staffing :

Staffing Budget:

Staffing Budget of our organization is presented below:                                      (In Taka)

Figure: Salary structure of our business.

Salary Structure of Labor:

                                                                                                                                             (In Taka)

Others

01

2500 (per person)

30,000

22,000

Total

11,32,0 00 Tk.

Figure: Salary structure of Labor.

Staff Assigned to Roles:

The following is a detailed breakdown of the actual staff assigned to the project role and we will follow this form for the staff assign in our firm:

–          Role of the staff and it assign by the respective authority.

–          Name of the staff and position description.

–          Assign the time table of the staff for example the employee’s full Time Equivalent and the Actual Full Time Equivalent.

–          Rate of the worker per day and year and the per person salary assign.

–          Assign the staff from the specific scope and utilize them etc.

–    The labor rate and unit of the labor rate for the resource and the source of labor.

Training Needs:

The following are the detailed training needs to bring staff to a level of skill required for the business that we will follow and for the execution of the business:

–          Role of the staff and the resource of the staff and utilize them.

–          Arranging different training methods for increasing the efficiency of the employees.

–          Performance evaluation of the training and take necessary measures.

–          The anticipated cost of the training program and assessment of the total duration of the training.

–          Using different methods for the betterment of the organization etc.

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JAAGO TEA INDUSTRIES LIMITED

Topics Include:

–         Steps of Production.

–         Steps of Packaging.

 Steps of Production:

The following machines are used to prepare raw tea material from tea leaves:

1. Roderman,

2. Cutting, Tearing, Curing (C.T.C.),

3. C.F.M.,

4. Dryer,

5. Suprex.

Steps of Packaging:

The following machines are used to categorize and packaging tea:

1. Fiber Crashing Machine:

By this machine, the dirt and wastage of processes raw tea are removed. It is the basic step of making superior quality tea.

2. Bibo Sorter:

Bibo sorter is used to categorize teas. It selects the grades of the produced tea. The grades are:

1. i.                    Broken Orange Piko
2. ii.                  Golden Broken Orange Piko
3. iii.                 Golden Orange Foing
4. iv.                Orange Foing
5. v.                  Foing Orange Foing
6. vi.                Piko Foing
7. vii.              Dust
8. viii.            Clone Dust.

The first three categories are of high quality. The second three are of medium quality and the rest two are of low quality.

3. Clean Sorter:

This machine is used for the final selection to differentiate between the teas and their packets.

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JAAGO TEA INDUSTRIES LIMITED

Topics Include:

–         Current Scenario in Bangladesh.

–         Situation Analysis.

–         Marketing Mix Analysis.

–         STP Analysis.

–         Corporate Social Responsibility.

Current scenario in Bangladesh:

Globalization of manufacturing and strong demand both for raw materials and processed parts continue to sustain the vigor of the tea industry in Bangladesh. The introduction of tea industry is begun in our country a long ago. But that time this sector was not so growth full. It was just an ignored sector of industry.

The tea industry reintroduced after 1980 with a good as well as bad news and scenario. The good news is that demand for plastics continues strong. The bad news is that supply of some popular companies is limited, global competition continues to present challenges for domestic tea processors, and profit margins are still being squeezed.

When the country’s major export earning sectors are showing downward trend owing to the impact of the current global financial crisis, tea sector shows a significant export potential.

Today tea industry sector is one the most advanced industrial sector in our country. Our government also keep an eye on this sector that’s why it is possible to be reintroduced this sector. In our country there are many companies who produce tea products and also export these products in the international market. From the concern about most advancement we are eagerly introduce our project on the tea sector of our country.

Situation Analysis:

Situation analysis refers to the assessment of:

– Market summary and

– Competitor analysis.

I. Market Summary:

The demand of tea products is increasing day by day. With the increasing of demand the company also brought different types of products in the market to attract the consumer. The consumer also suggest the recognized company what types of plastic products they want. There are several tea industries operating the tea market. They produce a huge category of tea products and every company makes a vast amount profit. Good news is that some tea company recently exports tea products in abroad. The basic reason of upgrading of tea industry is easy getting of cheap labor, government help and the rapid increasing of tea products demand.

At a new concern of products industry we are analyze the current market situation. We analyze the others companies product criteria, outlook, marketing channel etc. we attract the customer by understanding them the benefits of our tea products.

II. Competitors Analysis:

Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats. Competitor profiling coalesces all of the relevant sources of competitor analysis into one framework in the support of efficient and effective strategy formulation, implementation, monitoring and adjustment.

Given that competitor analysis is an essential component of corporate strategy, it is argued that most firms do not conduct this type of analysis systematically enough. Instead, many enterprises operate on what is called “informal impressions, conjectures, and intuition gained through the tidbits of information about competitors every manager continually receives.” As a result, traditional environmental scanning places man firms at risk of dangerous competitive blind spots due to a lack of robust competitor analysis.

There are some strategies about to measurement of the competitor’s analysis. They are:

1. Competitor’s objectives
2. Competitor’s assumptions
3. Competitor’s strategy
4. Competitor’s capabilities

Objectives and assumptions are what drive the competitor, and strategy and capabilities are what the competitor is doing or is capable of doing. These components can be depicted as shown in the following diagram:

A competitor analysis should include the more important existing competitors as well as potential competitors such as those firms that might enter the industry, for example, by extending their present strategy or by vertically integrating.

According to the above summary our main competitors are the household products producer companies because primarily we will produce only the house hold products. After the market analysis we realize and find our main competitors are:

Competitor 1: HRC Tea.

Competitor 2: Ispahani Mirzapore Tea.

Competitor 3: Lipton Tazza Tea.

Competitor 4: Kazi Tea.

Competitor 5: Tetly Tea.

In bellow there present a graphical analysis of competitor’s analysis in the current market situation:

In a scale of bellow 2 out of 5 = the market condition of the company is bad.

In a scale of up 2 but bellow 4 = the market condition of the company is moderate.

In a scale of 4 & above 4 = the market condition of the company is good.

Marketing mix analysis:

Marketing mix analysis refers to the following terms. They are present bellow—-

I. Product Identification:

In marketing, a product is anything that can be offered to a market that might satisfy a want or need. In retailing, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Commodities are usually raw materials such as metals and agricultural products, but a commodity can also be anything widely available in the open market. In project management, products are the formal definition of the project deliverables that make up or contribute to delivering the objectives of the project.

In general usage, product may refer to a single item or unit, a group of equivalent products, a grouping of goods or services, or an industrial classification for the goods or services. There are some criteria of the identification of a product. For our product the identification criteria is—

1. Tangible or intangible products.
2. Color and size.
3. Quality and the standard of the product.
4. Features of the products etc.

II. Types of Distribution Channel:

Channel level is a layer of intermediaries that performs some work in bringing the product and its ownership closer to the final buyers. There are 2 types of marketing channel. These are as follows-

OUR CONSUMER MARKETING CHANEL:

 In the above given channel we will use the channel number 4. Because by using this channel we will be able to reach to ends level of consumer and also the every corner of the country. This channel makes us to maintain with the customer.

OUR INDUSTRIAL MARKETING CHANNEL:

 In terms of industrial marketing channel we will choose channel number 3. Because by using this channel we will able to make strong industrial market channel over the market that will help us to maintain the market.

III. Pricing Policies:

Companies usually adjust their basic prices to account for various customer differences & changing situation. We also follow this type of pricing policies. These are discussed below:

01. Discount Allowance Pricing:

Discount is a straight reduction in price on purchase during a stated period of time. Sellers provide buyer different types of discount advantage-

a)      Cash discount

b)      Quality discount

c)      Functional discount

d)     Seasonal discount

Allowance is promotional money paid by manufacturers to retailers.

02) Segmented Pricing:

It is selling a product or services at two or more prices where the difference in prices is not based on differences in costs. Segmented pricing takes several forms-

a)      Customer segment pricing

b)      Product form pricing

c)      Location pricing

d)     Time pricing

03) Psychological Pricing:

It is a pricing approach that considers the psychology of prices & not simply the economies.

04) Promotional Pricing:

It is temporary pricing products below the list price & sometimes even below costs to increase short run sales. It also takes several forms-

a)      Loss leaders

b)      Special event pricing

c)      Cash rebates

d)      Benefit pricing

05) Geographic Pricing:

It is a form of pricing that involves reduction for transportation & other costs associated with the psychological distances between the buyer & seller. There are several forms –

•  FOB-Origin Pricing
• Uniform-delivered Pricing
• Zone Pricing
• Basing  Point Pricing
• Freight-absorption pricing

06. International Pricing:

Companies that make the product internationally must decide what prices to charges in different countries in which they operate. In some cases, a company can set a uniform worldwide price.

OUR PRICING POLICIES:

There are different pricing formula is present here. But we should easy and most attractive one. Because the term of success and grab the consumer society is depends on the fair and moderate pricing policies. After analysis the market condition we decide that we will use the discount allowance pricing policies. Because it the time making discounting basis pricing. Every company chooses it now so we will also choose it. We will change our pricing policies according to the market and consumer behavior basis.

IV. Store Location:

Store Location means the outlets and shops where the products are sold. Store Location must be a well organized system where everything can be availed easily. At first we shall locate the stores in upazilla wise so that the consumer can easily avail those products. Then we will take initiative to supply our product in various Supermarkets. If we ensure a good store location, we will easily attract & satisfy the consumer needs.

V. Promotion:

We can use many tools to accomplish sales promotion. Here are given some sales promotion Tools that we will follow:

1) Consumer promotion tools

The main consumer promotion tools include samples:

Coupon

Cash refunds

Price packs

Premiums

Advertising specialties

Patronage rewards

Point of purchase

Contests

Sweepstakes

Games

2) Trade promotion tools:

It includes:

v  Discount

v  Allowance

3) Business promotion tools.

It includes many of the same tools include in the Consumer & Trade promotion.

So our different promotion tools are presented above and we will use this promotion tools for our products.

STP analysis:

STP analysis refers to the Market Segmentation, Target Market and Market Positioning. After analysis of STP we would able to know the current market and also the different market situation that we will follow to marketed our products. A detail discussion about the STP is—

Market Segmentation:

Market segmentation means dividing the market into smaller groups with distinct needs, characteristics or behavior who might require separate products or marketing mixes. A market consists of buyers and buyers differ in one or more way. They may differ in their wants, resources, location, buying attitude and buying practices. Through the market segmentation organization divide the market into different segment so that they can reach to the consumer more effectively and more efficiently. There is different market segmentation in a market. They are Consumer market segmentation, Business market segmentation and International market segmentation etc.

As a new product concept we are primarily divide market only consumer and business market segmentation. In future by the expansion of the market area we also expand our market segmentation.

Consumer market segmentation refers only the consumer related tasks and the analysis pf the market. Here the consumers different attitude, want, needs, desire, demand, and buying practice is more applicable. There are different parts of consumer market segmentation. They are given by a chart:

Target Market:

Target market refers to the process of evaluating each market segments and select one or two to enter the market. From the market segments analysis and according to our product capacity we choose Demographic and Behavioral market segment to enter the market. There is some logic about to choose these. They are given bellow:

Reason for choosing demographic Segmentation of consumer market segmentation:

–          We produce our products according to the age based and gender based also.

–          Our products are according to the family size.

–          The products price will be fixed up according to the income level of our country’s people.

–          Our products are according to the generations based.

–          We are not interesting to divide our consumer society according to the religion and race etc.

Reason for choosing Behavioral segmentation of consumer market segmentation:

–          Our products will be according to the consumer knowledge.

–          We try to serve the products according to the consumer attitude.

–          The research and the development of the products will be dependent on the consumer.

–          The quality and standard of the products will be depends on the response on the basis of consumers etc.

Segmenting business market refers to the same as the segment of the consumer market because the business and the products sell to the consumer are same concept. Doing business with our products we are eagerly take some strategy that help our most to reach to the consumer. Business market also categorized according to the business status, attitude, usage rate, and loyalty status etc. business marketing segment sometimes depends on the factorial approaches, situational factor, customer operating characteristics, and the personal characteristics etc. So the business segmenting we totally depends on after the segmenting the consumer market segmenting that describe to capture the whole market and dividing the whole market into small categories and delivery the value position to the consumer and get a return more than the serve. We also run our business segmentation according to the segment of consumer market segmentations.

There are three categories of consumer are present in our market. They are-

– Conscious Consumer.

– Subconscious Consumer and

– Unconscious Consumer.

Conscious consumers are the customer that they are really conscious about a product. They are educated, well knowledge, quality and standard conscious.

Subconscious consumers are not so care about the product feature, quality, standard and category. They just use the products. They are quite familiar with the products.

Unconscious consumer are the totally ignore about the products. They just buy the product because they need the products. They are totally unconscious about the products standard, quality, feature and durability etc.

So this is the Bangladesh business market consumer condition. So we should reach to the customer on the basis and analysis of the consumer status, standard, category and need, want, demand and desires etc.

Market Positioning:

For doing a better business and keep stable the consumer loyalty level one should be care about the market positioning. Market positioning refers to the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target customer. To acquire the market positioning we have some strategy. They are—-

–          Important: To give the precise to the highly valued benefited targeted customer.

–          Distinctive: To look at the difference of the competitors and our company can offer something in more effective way.

–          Superior: We will show our superiority to our customer that they might some benefits.

–          Preemptive: The competitors cannot easily copy the difference.

–          Affordable: Buyer can pay for the difference products and price category system.

–          Profitable: The Company can introduce some profitability to get some advantages.

Corporate social responsibility:

Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its adherence to law, ethical standards, and international norms. Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, business would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: People, Planet and Profit.

The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; others yet argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. Corporate Social Responsibility has been redefined throughout the years. However, it essentially is titled to aid to an organization’s mission as well as a guide to what the company stands for and will uphold to its consumers.

We are not far away from people. Through out its journey it has engaged itself in many activities that helped people. As a part of these activities we are committed to do some better for the society because we know that society is our base and the society’s people are our power. We are truly stood for providing the society, significant new capabilities successful careers to all. There are some programs for maintaining our corporate social responsibility. A short list is noticed bellow about our programs—-

–          To recruit and select human resource and provide them fair salary and others facilities.

–          Providing foods and education facilities to the poor.

–          Stand behind the natural hazards affected people in the time of natural calamities.

–          Make donation to some organization like School, College, Orphanage, Madrasa and Charity hospitals etc.

–          Contribute to the social cultural programs and activities and also the development activities.

–          Offer job to the qualified but poor people.

–          Providing sufficient facilities to our job holder ensure their safety and security etc.

Topics Include:

–         Means of Financing.

–         Cost of the Project.

–         Loan Repayment Schedule.

–         Risk and Insurance.

Means of financing:

The total cost of the project will be 10 crore taka. From which the partners will invest in the project 4 crore and the rest of the amount that is 6 crore will be taken from the Dutch-Bangla Bank Ltd, Motijheel branch. Our means of finance at a glance:

Figure-5.2.1: Capital Structure of Green Bangla Plastic Industry.

Equity:

As per mentioned 4 crore taka will be arranged by the contribution of the partners. The contribution amount is:

Loan Repayment Schedule:

Dutch-Bangla Bank Ltd:

From this bank we will collect 6 crore taka as capital,  We will take the loan for 10 years and an effective interest rate is 12% .The loan amortization schedule is as follows:

Pm

Cost of the project:

Our project planning is targeted for three (03) years. But we are considering 1^st year as the base year.

EXPENDITURE:

Organizational expenditure:

Production expenditure:

Marketing expenditure:

Principal expenditure:

Note: Including Tax, vat, and import duty.

* (Budget for first one year)

** Therefore we need tk. 10 crore for implementing the project. We have 4 crore of our own and we are taking tk. 6 crore loan from the bank.

Cost of first 3 months:

* Marketing Cost:

**Fixed Cost:

***Other Expenses:

Revenue:

Profit:

Percentage of Profit: 5.54%

Cost of NEXT 3 months:

* Marketing Cost:

**Other Expenses:

Revenue:

Profit:

Percentage of Profit: 14.78%

Cost of NEXT 6 months:

* Marketing Cost:

Other Expenses:

Revenue:

Profit:

Percentage of Profit: 20.88%

Cost of 2^nd year:

Revenue:

Profit:

Percentage of Profit: 41.67%

Cost of 3^nd year:

Revenue:

Profit:

Percentage of Profit: 63.87%

Profitability Projection:

Figure: Calculation of Percentage of profit

Risk and Insurance:

In every business or any organization there have some risks as well as they provide or ensure the insurance policy for make the risks situation. As a new establish organization we ere not out of the risks. Because it is a position of competition and we are in a new concept of tea products. We have already chosen an insurance organization that will provide us the security after facing any risks. The reference organization is:

Standard Insurance Limited.

23/C, Mohakhali C/A,

Dhaka.

We are assigning some risk that may be affects our business growth in future. They are:

01. There may be some financial problem in future. It we can say loss or any other incident.

02. Problem to grab the market.

03. Decrease the ratio sale of the products.

04. Fire, dead or accident of any worker or loose of any machines capacity.

05. Poor performance of the marketing.

06. Sales revenue is low than the production etc.

Topics Include:

–         Introduction.

–         Objectives.

–         Production Process.

Liquid tea in poly bag is unique business in Bangladesh. But it is very probable business. We provide our service in a reasonable price within short time. A person can easily get our service with law cost. We collect the raw material from our local market because here produce lot of sugar, tea leaves, and milk. So to utilize this raw material we can produce liquid tea within very low cost. We produce different types of liquid tea in different size for different people. The location of the company is Konabari, Gajipur-Dhaka (Factory & Office). The source of our capital is own fund and bank loan. We established our organization with the help of National tea, Milk vita, North Bengal sugar Mill.

Our objectives for making liquid tea in poly bags not only mega city but also at rural area where people are so busy with their work. Our main objectives is time saving other wise some people are not interested or do not know how to make a tasty liquid tea. So we are very conscious about them and try to distribute them a testy liquid tea with short time and Reasonable price. we make those kinds of tea can easily used by children, Diabetics patients, the people who have caught cold etc. we also collect response about liquid tea in poly bag.. We also make it so that a person can get it when he wants with out any hazard. It is easily carry on one place to another place. So a person can get easily this service where is no possible to make a cup of tea. It also reduces or protects the problem of heart means heart attack. It also helps to solve the problem of unemployment.

Regression analysis has been used to determine the different quantity and price of same product in to different market. Data has been collected from the secondary sources but where necessary primary data used to clarify the data and make it as information

­­     The Company produces liquid tea according to the demand of consumer. The people in the tea market like to take tea in different taste and flavor according to consumer behavior. That is why “Liquid Tea” company produces liquid tea with different taste and flavor. And for the advantage of the consumers the company build up different quantity of package. The company will package these products in ½ litter, 1 litter, 1 ½ litters and 2 litters.

Our one of the main objectives for making liquid tea in poly bags not only for mega city but also at rural area where people are so busy with their work. Our main objectives is time saving other wise some people are not interested or do not know how to make a tasty liquid tea. So we are very conscious about them and try to distribute them a tasty liquid tea with short time and Reasonable price. The company is going to market liquid tea in poly bag which can make easier for the consumer to take tea, so it has more possibility to the consumer prefer liquid tea than powder tea

Most of the capital is collect by our own fund and rest of the money is collect from Bank. So we can not establish a large organization in this small investment. Most of the capital is used to organize the company and producing goods and other is marketing.

Every kind and status people love to take tea. Taking tea help people make mentally and physically fresh. So our target market is lower level to upper level people. The price is set so that all kind of people can enjoy the liquid tea. We take some step to rises our product sells. For this at the beginning we offered to retailers more profit than the powder tea company offers so that the retaliates inspire to accept liquid tea then powder tea. We also give them a heavy gift like color car, motorcycle, T.V. or V.C.D. player may be given yearly to the retailers who sell the highest quantity of product per month. We also offered to the consumer like discount, lottery, coupon etc.

We face some advantage and disadvantage to start a new business like the company is going to produce and market totally a new product in the market so it contains lack of knowledge about market demand. But the company is going to produce and market new product in the market so it does not have any competitor in the market and it also have a big opportunity  to become market leader in future.

In our country, it is very difficult to establish a new organization because the investor are face many problem like corruption, terrorism  but the rules and regulation of the government is very helpful to establish a new business. In this stage we establish a new business } liquid tea in poly bag~. In the business we face some problem like temperature, supply of raw material, interest of the people, and the capacity of purchase, transportation. But we become success with the help of the people and our hard work.

Source of raw materials:

Main Raw materials of our product is milk, sugar, leakier. We collect milk from Milk vita and local market. We collect sugar from north Bengal sugar mill. Leakier is collect from National tea co. ltd. and local market. For this we contract with this company to supply the Raw materials.

Making process:

There are different kinds of flavor to making liquid tea in poly bag. Different persons need different flavor. So we want to make such types of tea

– Water + milk + sugar (deep) + leakier.

– Water + milk + sugar (light) +leakier.

– Water + milk + sugar (diabetics) +leakier.

– Water + milk + sugar +leakier (deep).

– Water + milk + sugar +leakier (light).

– Water + ginger + sugar +leakier.

– Water + lemon+ sugar +leakier.

– Water + lemon+ sugar +leakier (deep).

– Water + lemon +leakier.

– Water + lemon+ sugar +leakier + ginger.

We also make different size of bag for easy to carry. Those are

¯500 Milliliters

¯1000 Milliliters

¯1500 Milliliters

¯2000 Milliliters

­­The company produces liquid tea according to the demand of consumer. The people in the tea market like to take tea in different taste and flavor according to consumer behavior. That is why “Liquid Tea” company produces liquid tea with different taste and flavor. And for the advantage of the consumes the company build up different quantity of package. In the following we show the chart of different taste and flavor of the liquid tea:

1)      Liquid tea with strong milk, sugar and leakier.

2)      Liquid tea with weak milk, sugar and leakier.

3)      Liquid tea without milk but with strong sugar, leakier.

4)      Liquid tea without milk but weak sugar and leakier.

5)      Liquid tea with lemon flavor and strong sugar.

6)      Liquid tea with lemon flavor and weak sugar.

We also take a special look at the diva tic patients. Above all those products will be made for the diva tic patients who contain without any sugar. The company will package these products in ½ litter, 1 litter, 1 ½ litters and 2 litters.

Topics Include:

–         Social Responsibility.

–         Business Ethics.

–         Environmental Impact of the Project.

–         Contribution Towards to the Economy.

Social Responsibility:

During the last hundred years, business thinking and action has changed dramatically. Business practices of a century ago would not be accepted even by a backward firm today. It is academic whether business initiated these changes or whether society pushed business into them. In actuality, progress was mutual; each initiated changes on the other, assisted by other institutions in the total social system. Business could not have come as far as it has without the help of society, nor could society have developed to its present state without corresponding business progress. Now the business gradually turned into the society most beyond its own gates into the general community, power of economic growth, social stability, community improvements, education and a host of the public needs.

Social responsibility is concerned with the public interests. An explained earlier, social responsibility is the obligation of decision makers to take actions which protects and improve the welfare of society as a whole along with their own interests. It’s built a better quality of life and also improves the society.

PHILOSOPHY

SOCIAL RESPONSIBILITY

 Figure: A philosophy of Social Responsibility will provide by our business.

As a new comer in to the market we always concerned about the society and the societies people because they are the main power to grow our business. We should make a positive impact on the consumer mind about our product. We maintain a huge size of factory so we should have the responsibility about the worker because if we maintain their desires it refers to maintain of the social responsibility. There are some terms that we will consider as the social responsibility of a society. They are noticed bellow–

I. Protecting the consumer as possible.

II. Paying fair wages to the employees.

III. Maintaining fair hiring practices and safe working condition.

IV. Supporting education and health.

V. Careful about the environmental issues like fresh air and clean water.

VI. Take parts some social welfare and development activities.

VII. Making easy communication system.

VIII. Make moral in the worker that male and female are same and should get the              same facilities etc

Business Ethics:

Business Ethics refers as “standards of conduct or moral behavior”. Business ethics can be thought of as a company’s attitude and conduct towards its employees, customer, community and stockholder. Our firm’s commitment to business ethics can be measured by the tendency of the firm and its employees to adhere to laws and regulations relating to such factor as product safety and quality, fair employment pricing, fair marketing and selling practice, the use of confidential information for personal gain, community involvement, bribery and illegal payments to obtain business. Our most executives believe that there is a positive correlation between ethics and long run profitability. Our firms has some highlights of business ethics like—-

1. Our firm’s motto will be the quality comes first, profit is a logical sequence.
2. Maintain strictly the laws and regulations of business ethics.
3. Ensure the standards of products safety and quality.
4. Fair product pricing and the fair employment pricing.
5. Fair marketing and selling pricing.
6. Community involvement and the use of confidential information.
7. Committed to prevent any type of illegal affairs and the unethical work for the society.
8. Our trends will be make positive correlation with the customer and community with ethics and long run profitability.
9. Never break the community rules and regulations.
10. Never make any impact on the society that goes opposite of the community people and they make a negative impact on our business.

Environmental Impact on the Project:

Environmental impact is an important factor for a project task. Before going to the final production we will consider the environmental factor. In a tea industry there are more or less categories of waste, trash, dust and disposable items are created which may be cause of harm to the society and the environment. We are conscious about this type of factor of wastage. In this case we shall take proper steps to burn this trash, dust and waste in safe and effective way. So that we able to create a free and fresh environment in the factory area and also the environment impact.

We have also some strategy about to keep environment green and clean. The tree plantation campaign and the mass general conscious will developed for the betterment of the environment. In the factory site there also a shade of tree to keep the factory neat and green.

Contribution Towards to Economy:

As our motto is to serve the community and the society, we are also care about the contribution to the society. We are always caring about the society and the development of the society. We also keep some contribution towards the economy of our country. A consider explanation about our contribution towards economy is given bellow—–

1. We create employment sector and thus we are able to reduce the unemployment problem from the society.
2. The development of the entrepreneurships in the country.
3. Create concept about the cost consciousness in the mass people of the society.
4. Dispersal of economic activities.
5. Contribution in the GDP of our country.
6. Way to develop the technology.
7. Make some plan to develop the economy and society standards.
8. Create concept of “use homemade products only” to save our currency in our country.
9. Create more and more job line and ensure the satisfactory level of the consumer trust on our products.
10. Create new industry line to provide more and more employment opportunity.
11. Making some society development program like education, health and food and provide support in the time of any natural calamities.
12. Ensure the consumer rights and the benefits of the use of our products etc.

CONCLUSION

The rapid growth of tea industry has opened a new door of the bright economy of our country. Now a days many of our tea industry exporting tea product in abroad and earn foreign currency as well brought the development of the country’s economy. From the concern about this we are inherently to do this project with a new concept of the tea industry and tea products.

Tea products are very important to secure long-term access to raw materials before starting operation. Contracts with suppliers should be draw up. The objective should be to utilize all of the tea products produced. Local & regional markets for tea products should be carefully investigated before starting operation.

Upgrading tea producing industry is quality relatively large investments. On the other hand, the demand for upgraded tea products is continually increasing, so that such investment can be profitable in the long-term.

When the country’s major export earning sectors are showing downward trend owing to the impact of the current global financial crisis, tea sector shows a significant export potential.

A strong commitment and broad political support from local authorities, for example by encouraging the purchase of tea furniture, promotes the wider development of tea industry. Close collaboration between various partner organizations and individuals is required to ensure that the entire system functions properly, from the supply of substrate to the distribution of tea products.

There is a great deal of international interest in tea industry. Strong support to develop the domestic market would help Bangladesh tea companies expand and become successful on the international market.