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01 02 03 04 05 06 07 08 09 10 11. 12. 13. 14. 15. LIMITATIONS : METHODOLOGY : MISSION STATEMENT : PRODUCTS & RELATED SERVICES : TARGET MARKET MARKETING PLAN & SALES STRATEGY : COMPETITOR ANALYSIS : MANAGEMENT AND ORGANIZATION OPERATIONS MAKING PROCESS DISTRIBUTION OF THE SOAPS : FINANCIAL STATEMENT : CONCLUSION: Introduction

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EXECUTIVE SUMMARY
In Bangladesh soap manufacturing business is now in maturity stage. At present time many companies have produced soap. That is why we have so many competitors. We have learnt about various weakness and limitations from data that we have collected from many companies. So we decided to set up a soap industry by overcoming these limitations and 1

weaknesses. We have selected our product name Silk. Throughout the business plan we described every aspect elaborately. Every woman wants to be looking beautiful. In Bangladesh and sub-continent every woman wants to be fair. It is a psychological advantage of this product. Now in the market just two types of fairness soaps are available. But those entire products prices are very high. Our product will available in standard price. So it can use all class. But our main target is High middle and High-class family. We are looking for good quality not high profit. We hope this soap will be the best soap for beauty seeking women.

INTRODUCTION:
In Bangladesh soap manufacturing business is now in maturity stage. At present time many companies have produced soap. That is why we have so many competitors. We have learnt about various weakness and limitations from data that we have collected from many companies. So we decided to set up a soap industry by overcoming these limitations and weaknesses. We have selected our product name Silk. Throughout the business plan we described every aspect elaborately.

ORIGIN :
We, the students of Principles of Entrepreneurship course have prepared the business plan as we were assigned to do so. We started working on this business plan on the 6th of august 2010. While working on this business plan we have found many crucial things that we needed to learn in this course. We are going to submit the business plan to our course instructor Rubina Afrose on the 21st of august 2009.

OBJECTIVE:
The major objective of this business plan is to match our academic knowledge with the real life situation and to build our skills one-step forward. In addition to that, through working on this business plan we can enhance our entrepreneurial knowledge effectively.

SCOPE:
The scope of this business plan is wide. This will bring significant opportunities to us to know about the entrepreneurial skills, which will help us build our career as successful small bossiness. Moreover, we can apply this experience in our upcoming courses as well.

LIMITATIONS:
We found many obstacles while preparing this business plan. The first and main limitation that we faced was collecting data. The persons who provided us with information were very busy. As a result, we faced problem to match our time with them. Besides, we were too much loaded with our studies, as we had to prepare other reports/projects at the same time. In spite of these obstacles we have completed our business plan successfully.

METHODOLOGY:
We have collected our data from both the primary and secondary sources. We had to make an appointment with the different employees of different organization. We went to the 3

Unilever Bangladesh office during preparing our business plan. We collected some papers from him as well. In addition to that, we also collected data from Internet and annual reports of soap industry.

MISSION STATEMENT:
Mission: The mission of our company is to achieve our vision. Our mission is to identify the target market and perform according to the identifying needs and consumers satisfaction. Vision: Silk soap industry Ltd. is a soap manufacturing company. Our companys main philosophy is to ensure the whole society fair, beauty and health safety. And create goodwill in the society. Goal: Our companys goal is consumers satisfaction earning Goodwill to the consumers and we will spread our market internationally within 2 years. Objectives: To achieve the goal we will produce yearly 19,75,000 fairness soaps and yearly 18,50,000 health soaps. The objectives of our soap industry are as follows: Ensuring better quality.

Ensuring proper compensation to the employees. Ensuring good working condition. Ensuring interpersonal relations.

To accomplish our objectives as we have mentioned above, we will correct the opinion from the customers, wholesalers and retailers by providing an opinion book.

PRODUCTS & RELATED SERVICES:

General Concepts: first we have to know what is product. A product consists of all the tangible and intangible (goods, service or idea) characteristics provided in an exchange between a seller and a buyer. People buy product for the benefits and satisfaction it gives. There are four kinds of products, which used by organizations in producing goods and services or in carrying out their operations are industrial products. Specific items: Our product is soap and we are manufacturing two types of soap. Fairness and Beauty these two types of soap we are manufacturing. Both the soap weighs differently. The fairness soap is 120 gm and the beauty soap is 100 gm both the soap will be manufactured in the usual methods. Production methods: The production methods include what would be the cost of an individual soap. The cost includes labor cost, machinery cost, raw materials and some other related costs. Stages of development of the products: New products are vital for a firms long-term success. Developing new products with high growth potential is no simple task. Around 1,000 new products are brought to the marketplace each year in our country, but many of them fail. So our products will be developing from the beginning stage. Products comparison to competitors:

Business that fails to develop new products may limit their potential for growth and eventually become vulnerable to competitors. We consider a new product to be one that a particular firm offers for the first time, whether or not similar products exist in the marketplace. So our products will compare will the competitors from the beginning and we will emphasize specially in quality. We will also emphasize on pricing.

TARGET MARKET:
MARKET SEGMENTS Silk Soap Industry expects large number of target markets. So, we have segmented our total market into different segments. We divided our target markets two different segments. First, Geographic and second is Demographic segmentation strategy. Geographic segmentation: In the first time we will introduce our soap in Bangladesh. We reached our products every cities and district of the country. As we produce international standard soap we will export our products in different countries. Demographic segmentation: From the segmentation strategy we have segmented the market as following.

LOREN Fairness soap Age: Especially made for female. From 15-30 years. Gender: Specially made for female skin; also male can use. Income range: Our soap is for the high middle class and high-class people. But our rate is not high from the other. Occupation: Generally College and Universities womens will use our soap widely. EXIT Anti-Bacterial Soap

Age: For all Gender: Male and Female Use: our EXIT soap is content anti-bacterial formula. So home and office everywhere people can use this soap for protection. TARGET MARKET Eastern Wind Soap Company has different types of target market. As we are produce two types of soap, our target markets are also different. FAIRNESS SOAP: Every woman wants to be looking beautiful. In Bangladesh and sub-continent every woman wants to be fair. It is a psychological advantage of this product. Now in the market just two types of fairness soaps are available. But those entire products prices are very high. Our product will available in standard price. So it can use all class. But our main target is High middle and High-class family. We are looking for good quality not high profit. We hope this soap will be the best soap for beauty seeking women. ANTI-BACTERIAL SOAP: EXIT anti-bacterial makes for all person of any age. So, its market is larger than Fairness soap. Every person is our target. Male, female and children can use this soap. It is an international standard soap. People who are conscious for their health, our anti-bacterial soap are for them. So our main target is the cities of the country.

MARKETING PLAN & SALES STRATEGY:

Company image: Silk Soap Industry provides two types of soap. The soaps are LOREN fairness soap and EXIT anti-bacterial soap. Our Product Evaluation is given bellow:

Our Product Evaluation

Fairness Soap Name: LOREN fairness soap. Net Weight: 120 gm Price: TK 17.00 Element: Aqua, Plamitie Acid, Stearie Acid, Potassium hydroxide, Lauric Acid, PEG-7 glyceryl Cocoate, PEG-150-Distearate, Methyl Paraben, Licorice Extract, Aloe Vera Gel, Vitamin B3, Vitamin C150, and Fragrance. EXIT Anti-bacterial Soap Name: EXIT anti-bacterial soap. Net-Weight: 100 gm Price: TK 14.00 Element: Active B Protection, Sodium Cocoyl Isenthionate, Stearic Acid, Sodium Tallowate, Aqua, Sodium Stearate, Perfume, Sodium Plam, Tri-sodium EDTA, Zinc Stearate, Aloe Vera Gel, and TFM 63%.

Price of our products:

Eastern Wind International setting a price for its products two ways. Price skimming Penetration pricing

Our company changes the highest price possible during the introduction stage for our LOREN fairness soap. And, for EXIT anti-bacterial soap our company change low price when offering this product for the first time to gain substantial market.

Marketing Vehicles:
Advertising: According to us, advertising is the best way of communication. We will choose most effective media with reasonable cost for advertisement. We will preferI. Banner: It will be effective for informing people about our soap. We will set banners in front of markets and other public places, where a large number of people will be able to know about our soap. II. Newspaper/ Magazine: We will publish our advertisement regularly to the newspaper, and four days in a month to the magazine. Before any occasion we use expensive portion of newspaper for advertising purpose.

III. Broadcast Media: We will broadcast about our product in radio, and television. We provide our information in the Internet. We also give add on the LCD display. IV. Signs: We will give our product information on the store of the towns and cities. We will use billboards on the side of the road, and through ad on the cabs of the cities. We will give sponsors of the Charity programs, Cricket matches, and fashion shows. We will also take part in the Trade shows, like Dhaka International Trade Fair, Chittagong International Trade Fair, and Khulna International Trade Fair. That will be very helpful to reach our product to the consumers. And these way consumers will be able to know about our products quality.

COMPETITOR ANALYSIS:
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Now a day the business strategy is changed. There are lots of competitors in the market for the same product. Our Silk Soap Industry will produce two types of soaps, Fairness soap and Anti-bacterial soap. To survive in the market each company have to face a challenging competition between each other. So that knowing about the competitors is very important developing business strategies.

Competitor Evaluation
Fairness Soap Name: Fair & Lovely fairness soap Net Weight: 150 gm Price: 35 TK. Main Element: Vitamin B3, TFM 73%, GR 2. Name: Lily Soap [Made by Lily Cosmetics Limited] Net Weight: 90 gm Price: TK. 15.00 Main Element: Vegetable fat 100%, milk cream with vitamin E, Herbal Extract, Glycerin. Name: Keya [Made by Keya Cosmetics Limited] Net Weight: 90 gm Price: TK. 14.00 Main Element: Vitamin E, Moisture Rich Nutrients, Jojoba Oil, Jasmine Fragrance and TFM 80% Name: Lux [Made by Unilever Bangladesh Limited] Net Weight: 135 gm Price: TK. 20.00 Main Element: Herbal Extracts, Rose Extracts with milk cream, TFM 76%, Grade I. Anti-Bacterial Soap Name: Lifebuoy Gold Net Weight: 100 gm

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Price: TK 15.00 Evaluation: Rate is high as weight. Name: Dettol Soap Net Weight: 95 gm Price: Tk 14.00 Evaluation: Does not contain well flavor. Name: Savlon Soap Net Weight: 100 gm Price: TK 15.00 Evaluation: Rate is high but does not contain well flavor.

MANAGEMENT AND ORGANIZATION:

In our soap company there will be several types of employee will work in there such as The Chairman, C.E.O. (Chief Executive Officer), Director of Finance, Marketing Director, Director of Business procurement, Director Operation, Accountant, Managers and Labors etc. The Chairman is the chief of the administration. He has authorized power. The C.E.O. will be the boss/head of all employees in the business. He/she will make the business policies, objectives and goals and developing the business plan. The C.E.O. and all

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board of directors will have to organize the total business. The C.E.O. must have an MBA/Masters degree and must have five years experience in a business properly. Marketing Director will have initiative and analytical ability and decision-making ability. He must have a Bachelor degree or BBA degree major in marketing. The Director of Finance will have to operate and control the finance section in this business responsible for industrys economics, sponsorship, funding, and investment site. He must have a BBA degree major in finance or honors in finance and two years experience in financial management in a business. Director of Business Procurement must be qualified and challenging personnel. He will work in commerce, trade, industry, dealing, and production and fabrication area. He helps to increase demand of our product in the foreign market. He must have a Bachelor degree. Director Operation will have clear concept of business act, Industrial rules and regulations. He handles the industrys act, procedure, maneuver, action, process, and function side. He must have a Bachelor degree. Managers will have to control the whole operation, co-ordinate among the subordinates. Look after whether the progress of the business is being made and every thing is going on according to the plan and customers are getting quality service. He must be a Bachelor degree and must have some experience. Accountant must have a graduation degree in accounting and must at least one experience he/she must determine with his accounted part. The employees must be skilled and innovated with their work. He/she must follow the rules and regulations of the company.

Officials:
Dhaka office: Name Manjurul Alam Shayama Prasad Chowdhury Jayasis Das Kazi Shamsul Haque N.M.Alamgir Hossain A.K.Azad Masudur Rahman Mrs.Shahanaz Begum Ruma Position General Manager (Finance & Accounts) General Manager (Operation) AGM (Accounts) Manager (Business Procurement) Manager (Marketing) Asstt. Manager (Operation) Asstt. Manager (Marketing) Customer Service Phone

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Operation Marketing Others

5 Executive 3 Executive 8 Executive Chittagong Office:

Mahbubur Rahman Giasuddin Ahmed Nazrul Islam Mrs. Shahina Akhter Marketing Others

General Manager (Finance) Manager (Marketing) Manager (Accounts) Customer Service 6 Executive 2 Executive

Sylhet office: Jamal Uddin Ahmed Delwar Hossain Marketing Operation Others General Manager (Operation) Manager (Marketing) 2 Executive 2 Executive 1 Executive

The managerial chart Board of director

Chairman Saba Naz Chief Executive Officer Tamima Aktar

Director of Business Procurement

Director Of Operation

Director of Finance & Accounts

Director Of Marketing

General Manager

General Manager

General Manager

Deputy Controller

General Manager

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Manager

Manager

Manager

Accountant

Manager

Executive

Executive

Executive

Executive

Executive

OPERATIONS
Silk Soap Industries Limited is registered as a private limited company and we run this business following the act 1994. We already got the membership of (LSRI) London Soap Research Institute, (WHO) World Health Organization and (SDA) the soap and Detergent Association. We got permission to sell and marketing our soap in all the district of the country. In future we try to involve in the international markets.

Location:
Our Silk Soap Industries Limited will be located in the Savar. So it will be very easy to import our machineries and vehicles from other countries and export our products in foreign countries. Savar is an industrial area of Bangladesh, so we got more facilities from this place. Labor cost, transportation, storage facilities and land cost is very low in savar.

Floor plan & funding:

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We will build a large factory building for our soap industries. It will be two-stored building. Ground floor will be used for making soap and laboratory tasting and 1st floor will be used for packaging and labeling. Totally we will invest 1, 16, 25,000 Taka (one core sixteen lack twenty five thousand) for this project, and we hope we get return our money within three years. When we get able to involve in the international markets we move our business to other products and we developed our factory stage.

Insurance & Legal:

We must make insurance for our Silk Soap Industries Limited. And the amount will be 1,50,00,000 TK. (one core fifty lack). Silk soap promises all the labors and staffs. We will provide the insurance for all labors and staffs, and health insurance for machine workers. We will also provide good working condition and environment. We will motivate our workers by bonus, production bonus, and pension scheme. Our all activities will be legal. We are free from all kinds of illegal activities. We will follow all law and order to establish our industries. Eastern Wind International Soap Industries always believe in the good service and quality.

Consumer Safety:
Our main goal is earning consumer satisfaction. For this our large working team is ready. Silk industry will provide products, which is maintained by international standard and approved by Bangladesh Standard Testing Institute (BSTI) and London Soap Research Institute (LSRI). We shall use automatic machineries to produce soap, so there is no way to cheat.

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There are two laboratories in the factory. Three soap specialists will work there to produce standard soap. Our all soap is situated for all types of skin. Three-laboratory in charge Dr. A.K.M. Hasan Dr. Mir Habibur Rahman Dr. Syed Hasan Reza

We produce soap for fair & beauty. We mainly produce two types of soap. One is fairness soap another is healthy soap for sensitive skin.

MAKING PROCESS:
We made from fats and oils or their fatty acids, which are reacted with inorganic watersoluble bases. The main sources of fats are while palm, coconut and palm kernel oils are the principal oils used in soap making. The raw materials may be pretreated to remove impurities and to achieve the color, odor and performance features desired in the finished bar. Continuous processes produce soap in liquid form, called meat soap and a valuable byproduct, glycerin. The glycerin is recovered by chemical treatment followed by evaporation and refining. Refined glycerin is an important industrial materials used in foods cosmetics drugs and many other products. The next processing step after specification or neutralization is drying. Vacuum spray drying is used to convert the neat soap into dry soap pellets. The moisture content of the pellets will vary depending in the desired properties of the soap bar. In the final processing step, the dry soap finishing line. The first unit in the line is a mixer, called an amalgamator, in which the soap pellets are blended together with fragrance colorants and all other ingredients. The mixture is then homogenized and refined through rolling mills and refining plodders to achieve through blending and a uniform

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texture. Finally, the mixture is continuously extruded from the plodder, cut into bar size units and stamped in to its final shape in a soap press. In our fairness soap we add VAS formula. So it will be different from other soap. We are committed to make something different. Our laboratory directors made some formula to make better fairness soap & health soap. Our fairness soap is very helpful for beauty seeking women. Our laboratory issue is given below The exclusive VAS blend of beneficial ingredient (Vitamins, Aloe Vera and sunscreen protection) feature: o Botanical extracts to aid cell renewal and Aloe Vera to condition your skin, leaving its soft and supple o A combination of natural whitening agents and UV white double sunscreen to filter harmful UVB and UVA radiation from the sun thus inhibiting the development of Melanin, which causes skin darkening. We use these things to make LOREN fairness soap. Palmate Acid,Stearie Acid, Potassium Hydroxide, Lauric Acid, PEG-7 Glycerin Cocoate, PEG-150- Destearate, Methyl Paraben, Licorice Extract, Aloe Vera Gel, Vitamin B3, Fragrance. Our soap does not contain harmful chemicals. We will make different types of health soap. EXIT Anti-bacterial soap for sensitive skin. Which is contents anti-bacterial formula We will make 90 gm health soap. We will make health soap for the people those are conscious for there health. So our main target will be the cities of the country. If we are success to introduce this soap in the whole country, we hope this soap will be the best health soap in the country.

DISTRIBUTION OF THE SOAPS:

At first we will appoint distributor for Dhaka city, Chittagong, Sylhet and Khulna. And then we will appoint distributor for the whole country. We must monitor the market and take effective steps to make available our soaps in the market. We will offer huge advantages for distributors. In case of distribution we will follow the intensive distribution strategy to distribute our product.

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FINANCIAL STATEMENT: SILK SOAP INDUSTRY

INCOME & COST STATEMENT

For the year ended December31, 2009 Description Revenues: Gross Revenues Less (-) Sales Return and Allowance Handling Loss 1% Net Revenue Cost of Sales: Cost of raw materials Gross Profit Operation Expenses: Sales Expenses/Cost of labor wages Advertising expenses Total selling expenses General and Administrative Expenses: Director's remuneration Staff salary Insurance Taka 5,56,18,750.00 5,56,187.50 5,50,62,562.50 Taka

3,00,00,000.00 2,50,62,562.50

30,00,000.00 21,00,000.00 1,99,62,562.50 36,00,000.00 69,00,000.00 1,50,000.00 18

Cost of Power (Gas, Electricity, Water) Total General Expenses Depreciation: On machinery 10% On Furniture 15% On Building 5% On Vehicles 10% Total operation expenses Interest on bank loan Income before tax Income tax expenses 15% Net Income

15,00,000.00 78,12,562.50

1,60,000.00 52,500.00 1,02,500.00 1,00,000.00 73,97,562.50 4,35,937.00 69,61,625.50 10,44,243.825 59,17,381.67

SILK SOAP INDUSTRY

BALANCE SHEET
For the year ended December31, 2009 Description ASSETS Fixed assets: Land Factory building (-) Depreciation 5% Office building (-) Depreciation 5% Machineries (-) Depreciation 10% Vehicles (-) Depreciation 10% Furniture & Computer (-) Depreciation 15% Total Fixed Assets Taka Taka

30,00,000.00 15,00,000.00 75,000.00 14,25,000.00 5,50,000.00 27,500.00 5,22,500.00 16,00,000.00 1,60,000.00 14,40,000.00 100,00,000.00 1,00,000.00 9,00,000.00 3,50,000.00 52,500.00 2,97,500.00 75,85,000.00

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Current Assets: Cash Account receivable Inventory Total Current Assets Total Assets LIABILITIES Long-term Bank Loan: Long-term Bank Loan Total Long-tern Bank Loan

50,57,000.00 14,00,381.67 35,00,000.00 99,57,381.67 1,75,42,381.67

29,06,250.00 29,06,250.00

Description OWNER'S EQUITY Capital Stock Net Income Total Owner's Equity Total Liabilities & Owner's Equity

Taka

Taka

87,18,750.00 59,17,381.67 1,46,36,131.67 1,75,42,381.67

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CONCLUSION:
Bangladesh has a potential market for quality soap. As the standard of living is increasing day by day, so people are demanding more quality and unique products. So we have came up with a new soap, which is of good quality and got a sweet smell, which goes with our culture. The USP of our soap will be it has got aroma therapy on it, which is provided in soaps for the first time in Bangladesh. We hope that we will be successful with our plan as we are introducing two types of soaps with this new attraction and our customers cover both male and female of all ages.

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