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Table of contain

S.N Title Pagenumber01 Introduction

02

03 LIMITATIONS :

04 METHODOLOGY :

05 MISSION STATEMENT :

06 PRODUCTS & RELATED SERVICES :

07 TARGET MARKET

08 MARKETING PLAN & SALES STRATEGY :

09 COMPETITOR ANALYSIS :

10 MANAGEMENT AND ORGANIZATION

11. OPERATIONS

12. MAKING PROCESS

13. DISTRIBUTION OF THE SOAPS :

14. FINANCIAL STATEMENT :

15. CONCLUSION:

EXECUTIVE SUMMARYIn 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

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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.

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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 6 th 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 makean appointment with the different employees of different organization. We went to the

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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.

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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:

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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

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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

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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, forEXIT anti-bacterial soap our company change low price

when offering this product for the first time to gain substantial market.

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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 prefer-

I. 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 soapNet 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 Position Phone

Manjurul Alam General Manager (Finance &

Accounts)

Shayama Prasad Chowdhury General Manager (Operation)

Jayasis Das AGM (Accounts)

Kazi Shamsul Haque Manager (Business

Procurement)

N.M.Alamgir Hossain Manager (Marketing)

A.K.Azad Asstt. Manager (Operation)

Masudur Rahman Asstt. Manager (Marketing)Mrs.Shahanaz Begum Ruma Customer Service

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Operation

Marketing

Others

5 Executive

3 Executive

8 Executive

Chittagong Office:Mahbubur Rahman General Manager (Finance)

Giasuddin Ahmed Manager (Marketing)

Nazrul Islam Manager (Accounts)

Mrs. Shahina Akhter Customer Service

Marketing 6 Executive

Others 2 Executive

Sylhet office:Jamal Uddin Ahmed General Manager (Operation)

Delwar Hossain Manager (Marketing)

Marketing 2 Executive

Operation 2 Executive

Others 1 Executive

The managerial chartBoard of director

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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

General

Manager

Deputy

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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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Manager Manager Manager Manager Accountant

Executive Executive Executive ExecutiveExecutive

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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 water-

soluble 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 by-

product, 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 INDUSTRYINCOME & COST STATEMENTFor the year ended December31, 2009

Description Taka Taka

Revenues: -

Gross Revenues 5,56,18,750.00

Less (-) Sales Return and Allowance

Handling Loss 1% 5,56,187.50

Net Revenue 5,50,62,562.50

Cost of Sales: -

Cost of raw materials 3,00,00,000.00

Gross Profit 2,50,62,562.50

Operation Expenses: -

Sales Expenses/Cost of labor wages 30,00,000.00

Advertising expenses 21,00,000.00

Total selling expenses 1,99,62,562.50

General and AdministrativeExpenses:

Director's remuneration 36,00,000.00

Staff salary 69,00,000.00

Insurance 1,50,000.00

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Cost of Power (Gas, Electricity, Water) 15,00,000.00

Total General Expenses 78,12,562.50

Depreciation:

On machinery 10% 1,60,000.00

On Furniture 15% 52,500.00

On Building 5% 1,02,500.00

On Vehicles 10% 1,00,000.00

Total operation expenses 73,97,562.50

Interest on bank loan 4,35,937.00

Income before tax 69,61,625.50

Income tax expenses 15% 10,44,243.825

Net Income 59,17,381.67

SILK SOAP INDUSTRY

BALANCE SHEET

For the year ended December31, 2009

Description Tak a Taka

ASSETS

Fixed assets: -

Land 30,00,000.00

Factory building 15,00,000.00

(-) Depreciation 5% 75,000.00

14,25,000.00

Office building 5,50,000.00

(-) Depreciation 5% 27,500.005,22,500.00

Machineries 16,00,000.00

(-) Depreciation 10% 1,60,000.00

14,40,000.00

Vehicles 100,00,000.00

(-) Depreciation 10% 1,00,000.00

9,00,000.00

Furniture & Computer 3,50,000.00

(-) Depreciation 15% 52,500.00

2,97,500.00Total Fixed Assets 75,85,000.00

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Current Assets: -

Cash 50,57,000.00

Account receivable 14,00,381.67

Inventory 35,00,000.00

Total Current Assets 99,57,381.67

Total Assets 1,75,42,381.67

LIABILITIES

Long-term Bank Loan: -

Long-term Bank Loan 29,06,250.00

Total Long-tern Bank Loan 29,06,250.00

Description Taka Taka

OWNER'S EQUITY

Capital Stock 87,18,750.00Net Income 59,17,381.67

Total Owner's Equity 1,46,36,131.67

Total Liabilities & Owner's Equity 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 ourculture. 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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