INTRODUCTION TO BUSINESS – BUS201

BUSINESS PLAN REPORT

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GROUP NAME: TALON

GROUP MEMBERS:

MD. ZIAUR RAHMAN [1710187]

NUSRAT ZAHAN TANJI [1720116]
RUHIYAT TASNIM [1710444]
SHEIKH SHAHRIAR AZIZ [1710257]
RUBINA ALAM [1720563]
NAHIAN SAYEED [1820117]

COURSE TITLE: INTRODUCTION TO BUSINESS

COURSE ID: BUS201 SECTION: 07

SEMESTER: SUMMER’18

INDEPENDENT UNIVERSITY, BANGLADESH.

DATE OF SUBMISSION: 14 T H JULY, 2018.

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NAME OF BUSINESS PLAN: MUNCHKIT COOKING – SIMPLIFIED!

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LETTER OF TRANSMITTAL

To: Mr. Arifur Rahman Khan

Lecturer
Independent University, Bangladesh
Bashundhara R/A
Dhaka, Bangladesh

Date: 20 July, 2017.

Subject: Submission of Business Plan on Munchkit.

Dear Sir,
It is our pleasure to have this opportunity to present you with our business plan of Munchkit. We have
all given our best effort throughout this entire report and we have provided all the relevant information
that is necessary regarding this business. We believe that our plan will provide a clear concept of our
business.
We all gave our best to accumulate required information and we will be more than happy to answer any
question to clarify it fully to your understanding. Thank you for all your help and support throughout this
entire semester which helped us immensely while preparing the business plan.

Sincerely yours,
Talon.

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ACKNOWLEDGEMENT

First and foremost, we would like to express our sincere gratitude to our instructor Mr. Arifur Rahman
Khan for his continuous support, patience, motivation, enthusiasm, and immense knowledge. His
guidance has helped us in all the time of planning and writing of this report. We could not have
completed this report without his constant support throughout the entire business plan.

Besides my advisor I thank my fellow mates for accumulating all the data necessary and contributing in
every other way possible.

Last but not the least; we would like to thank our family for supporting us spiritually throughout this
Business plan.

Thank you.

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TABLE OF CONTENTS

NAME OF BUSINESS PLAN 3

LETTER OF TRANSMITTAL 4
ACKNOWLEDGEMENT 5
EXECUTIVE SUMMARY 7
COMPANY OVERVIEW 8
ABOUT OUR COMPANY 9
INDUSTRY ANALYSIS 9
MARKET ANALYSIS 11
MARKETING STRATEGIES 13
OPERATING PLAN 14
JOB DESCRIPTION 15
FINANCIAL PLAN 17
CONCLUSION 19
REFERENCES 20

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EXECUTIVE SUMMARY:

Munchkit is an online meal-kit delivery service that aims to deliver individuals, couples and families the
joy of restaurant quality meals made at home. Munchkit will achieve this by offering meal packs
containing all the necessary ingredients, packed according to the consumers preferred portions.

The website will contain various chef-curated traditional recipes along with instructions on how to
prepare them, making meal preparation fun and easy. In addition to traditional Bengali recipes Munchkit
will also offer exotic recipes from all around the globe. Meal-kit delivery services eliminates the daily
problems associated with home cooking, which includes scavenging for a particular ingredient physically
in various stores.

Our targeted consumers include consumers above 18 years of age, who share a keen interest in cooking
or consumers such as bachelors and new housewives who are interested in learning how to cook, and
our targeted area is Dhaka- which is one of the most populated city in Bangladesh with population count
over 7 million. We plan on aggressive marketing strategies to reach the maximum amount of people
through social-media advertising, billboards, discounts and etc.

Munchkit’s goals include creating a strong relationship with local farmers and producers in order to
ensure our ingredients are local, fresh and which will give us with the opportunity to provide
competitive prices in the online grocery shopping market. The initial startup investment will be BDT 4
lacs from each of our six partners, and an additional 20 lacs will be borrowed in the form of bank loans
to fund for a warehouse with storage solutions.

Furthermore Munchkit will act as an online grocery shop from where consumers can order products
individually apart from meal-kits. This will act as a contingency plan in the event of Munchkit failing to
appeal to the consumers of Bangladesh.

COMPANY OVERVIEW

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MISSION STATEMENT

Our mission is to help deliver our customers with the freshest ingredients and the joy of home cooking.

BUSINESS TYPE

Munchkit is a company in the Food Industry Sector of Bangladesh. We will be providing our meal-kit
services directly to our consumers; therefore making Munchkit a Business-to-Consumers (B2C) business.
We plan on buying fresh ingredients in bulk from local producers and then distributing them to our
customers in necessary portions.

LEGAL FORM OF OWNERSHIP: PARTNERSHIP

Munchkit will primarily have 6 partners to begin with. Our responsibilities, profits and losses will be
distributed equally among the partners. Each partner will contribute to the business with their distinct
set of skills in their particular field of operation and will be actively involved in decision making and
management.
Funds for the capital will be split among the partners equally as well.

OBJECTIVES/GOALS

 Maintain a strong relationship with local farmers and other suppliers

 Gain consumers loyalty by providing the freshest ingredients at competitive prices
 Increase customer base by 50% in two years
 Gradually expand our services throughout Bangladesh
 Create a strong brand image in Dhaka through advertisements and promotional offers

BUSINESS PHILOSOPHY AND COMPETITIVE ADVANTAGE

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Our main business philosophy is to maintain consistent quality of the ingredients we provide and our
services. Munchkit will be the only company to provide meal-kit delivery service at a reasonable price
along with special instructional videos on how to prepare the meal. Our product’s price will be
comparatively lower than our competitors which will in turn provide us with a competitive edge in the
industry. This is due to Munchkit providing ingredients in quantities that the consumers require,
eliminating the need for buying in bulk and thus making meal-kits a much cheaper alternative.

ABOUT OUR COMPANY

Munchkit is an online meal-kit delivery service ready to enter the market with the intention to create a
sustaining business. We will be offering meal-kits containing all the necessary ingredients required to
prepare a meal, making home cooking an easy alternative to ordering unhealthy food from restaurants.

With various chef-curated recipes available at our app and website from all over the world, we plan to
eliminate the barriers associated with home cooking.

INDUSTRY ANALYSIS

Meal-kit delivery is a new service in Bangladesh thus it is yet to flourish in the coming years with proper
awareness rising and promotion. Entering into the market is simple, but there barriers to entry. With
popular online grocery shop competitors like Direct Fresh BD and Chaldal, Munchkit has to adopt an
aggressive marketing strategy. The already established online grocery shops may start offering similar
services which will pose as a threat to Munchkit.

Economic Environment: The economic environment consists of external factors in a business market
and the broader economy that can influence our business.

The economic forces that have an impact include inflation, taxes, exchange rates (FX), interest rates,
GDP growth rates, conditions in the capital markets (ability to access capital) etc. Some of them are
explained bellow.

 Taxes: The taxation rate for business in Bangladesh is currently 30%for companies making a
yearly net profit of Tk 3,000,000 or above. High taxes will hinder Munchkit’s growth and also
directly have an impact on the company’s net profit.

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  Inflation: The average inflation rate is considered to be 2%. In Bangladesh the inflation rate in
2017 was 5.68% and in 2018 is 5.96%. The inflation rate has only increased by 0.28% meaning
the change in prices will be minimal and business will not face any major impacts. The rate of
inflation will have an impact on the purchasing power the consumers.

 Consumer discretionary income: If consumer discretionary income is high they will be able to
afford more products which will benefit our company.

 Currency exchange rates: Some of the ingredients may have to be primarily be imported from
abroad which may have impact on our business. An increase in the currency rates will certainly
help our business, but a depreciation in the exchange rates may drive the prices of some of the
ingredients to rise.

 Interest rates: Our business will be taking a SMEi loan with an interest rate of only 5%.

 Savings rates: Ordinarily saving rates in Bangladesh is 7.5%. This indicates that consumers have
less reward and they will spend more on consumer products.

Our target market will consider adults, people of middle age as well as teenagers who struggles with
preparing meals at home, therefore our market would be mass market targeting a broad range of
customers.

Demographic Environment: Bangladesh is one of the most populated countries in the world. Having a
population of about 140.6 million and growing, within a total surface area of 147,570 sq. km. The
density of population is 97.9 per sq. km, which is one of the highest in the world. Thus having a vast
demand in general, plus buying groceries is considered to be a necessity product. We will be targeting
certain age groups for our business both male and female.

Technological Environment: The technological environment of Bangladesh is advancing everyday as

the government itself is playing a vital role in digitalizing Bangladesh. We will develop websites apps
software to assist people to be more connected with us. The demand for online services has increased
since 2015 as consumers are getting more accustomed to internet and smartphones, as a result we are
expecting the meal-kit delivery to be a success.

Natural/Geographic Environment: We want to locate our main office within Dhaka city where we
can attract people. We also will send representatives to universities, schools -colleges and organizations
to inform them about our service and fill up the demand. As Bangladesh is full of natural resources so
we will not going to be hesitate to serve our products.

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Legal and Political Environment: As we are objecting a social cause we will take necessary
permissions from Government starting from trade licensing to all the paperwork needed and also seek
help to merge with different organizations for funding. All process of starting a business would be
completed by seven days in place of 19.5 days now as government agencies promised to remove red-
tapes to facilitate investment in the country. In line with the reform, the agency like RAJUK would give
construction permits within 60 days instead of current 278 days and processes of getting electricity
connection would be completed by 28 working days in place of 404 days.

We will have privacy policies to ensure every consumer has their information safe in our hands.

Competitive Environment: In Bangladesh, the only competitors we consider are other online grocery
shops such as Chaldal.com and Directfreshbd.com. One of our primary objectives will be to differentiate
Munchkit from standard online grocery shops as much as possible by hiring chefs to prepare accurate
recipes and by providing exotic ingredients that our competitors lack.

MARKET ANALYSIS

MARKET SEGMENTATION:

Our customer base will be segmented according to geographic and demographic factors. We will be
mainly selling our services to the upper and middle class people of Dhaka aged from 18-50 years old.
Our Target Market includes:
 Urban Population
 Adults
 Teenagers
 Middle-aged people

TOTAL MARKET SIZE AND OUR MARKET SIZE:

The Market Size of food service in Bangladesh is about $700 million per year. Out of this $700 million;
we are planning to target only Dhaka. Some of the factors which will help us to achieve greater market
share is through:

 High quality service

 Special offers for members

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  Better customer care
 Suitable location

MAJOR, CURRENT AND FUTURE TRENDS IDENTIFICATION

According to current trends on food services we can say that among 530800 people aged ≥20, 60%
people are inexperienced in terms of cooking, and since there is no other company that can provide
them with proper instruction and knowledge, it can be said that there is high demand for food service
but not enough supply in the country. Therefore, it can be assumed that there will be a good number of
people who will avail our service now and in the future due to less competition.

MAJOR COMPETITORS IDENTIFICATION

Our major competitors include online grocery shopping companies such as Chaldal.com and
Directfreshbd.com who are providing groceries as well. If the meal-kit service proves to be a success
then our competitors may not hesitate offering the same service as well.

MARKET POSITIONING
Our company is the first ever in the industry. This will certainly create a unique image in the consumers’
mind. In addition to the high quality services that we aim to provide, the unique image would be
reinforced even further.

SWOT ANALYSIS

Strengths: The first ever meal-kit delivery in Bangladesh, and also very useful and a cheaper alternative
for novice home cooks.

Weaknesses: A majority of people living in Bangladesh have difficulty operating technology, which is
websites and mobile applications.

Opportunity: Few competitors in the online grocery shopping market, but no direct competitors since
meal-kit delivery system is completely new in Bangladesh.

Threats: The existing online grocery shops in Bangladesh has already established a strong brand image,
and if Munchkit succeeds then it may motivate these companies to start offering meal-kits as well.

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MARKETING STRATEGIES:

PRODUCT/SERVICE DESCRIPTION

Munchkit will try to provide all the necessary ingredients possible that is required to prepare a meal. The
types of items that will be provided (if they are required in producing the particular meal) in the box are:
 Spices
 Meat & Fish
 Dairy Ingredients (Milk, Cheese, Butter & etc.)
 Rice
 Fresh Herbs
 Fresh Vegetables
 Processed foods (Pasta, Noodles and etc.)
 Fresh Fruits

PLACE
Since our company sells product in an online platform that delivers directly to consumers for their
convenience, the only forms of physical stores we will have is an office and a warehouse for storing the
ingredients.

PRICE
Our prices will be extremely competitive compared to existing online grocery shops, this is due to
Munchkit providing only the amount that is necessary to prepare the meal for the portion selected by
the customer. Apart from that, we will be maintaining a strong relationship with local farmers to source
fresh ingredients at cheaper prices. The price of a meal-kit will start from as low as BDT 500, depending
on the portion size.

PROMOTION
Our marketing strategy will be heavily based on online promotions. Advertising on Facebook, YouTube
and other social media platforms. Advertising on YouTube will be highly prioritized, especially on videos
of cooking. Apart from this Munchkit will use billboards, television commercials, and special referral
discounts to our customers for referring a friend that will attract more customers.

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OPERATING PLAN
The founding Director will manage the company. One of our owners Mr. Sheikh Shahriar Aziz and Ms.
Ruhiyat Tasnim will act as sole employees of Munchkit for the first two years of operation. When
additional human resources are needed Munchkit will hire employees who are qualified and are able to
assist on a contract based system.

Another owner of ours, Nahian Sayeed will have the responsibility of a targeted area to determine
public demands which is very important for our company. Through the research our company will
acquire the best methods to fulfil public demands.

An advisory management group, consisting of the company’s staff, will meet on a regular basis to review
the Munchkit’s financial structure, identify customer relations issues, and develop future goals for
growth, marketing and sales. This group will be assigned the task of developing a plan to implement and
integrate a continuous quality improvement. A customer relations committee will be formed to
brainstorm, formulate ideas, plan and implement activities to enhance levels of satisfaction among all
the clients.

A technician will be sub-contracted to complete work as needed. He or she will be hired full time by
Munchkit once demand warrants growth. People holding a masters in Marketing will also be sub-
contracted to perform tasks for the company. Eventually, Munchkit intends to hire a person full time.

Once the business reaches 60% of its operational capacity Munchkit will offer the professionals full time
positions. Also at this time, an administrative assistant will be sought.

An app developer will be sought in the early stages in order to develop and maintain the app on a
regular basis. Job advertisements will be put in the local papers and organizations to attract a good pool
of respondents.

JOB DESCRIPTION

ORANOGRAM

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 CEO

CFO CMO COO CBDO CTO CCO

CEO:

Md. Ziaur Rahman, MBA in Management (Duke University, USA).

 Expanding the company with excellent business strategies and plans, making sure the alignment
with the short term and long term objectives within and outside the company.
 Leading the sub-ordinates with extreme motivation to improve their engagements in work.

CFO:

Ruhiyat Tasnim, CIMA (UK), MBA in finance (University of Salford, UK)

 Advancing financial strategies and programs for proper allocation of available resources in order
to prepare the company’s total finance.

CMO :

Nusrat Zahan Tanji, MBA in Marketing (York University, Canada)

 Providing leadership to the marketing and communications of the business.

COO:

Sheikh Shahriar Aziz, MBA in HRM (University of British Columbia, Canada)

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  Daily operations of the company and the activities involved with the executives.

CBDO:

Nahian Sayeed, MBA in Management (York University, Canada)

 Facilitating business growth by working together with clients as well as business partners
(suppliers, subcontractors, JV partners, technology providers, etc.).

CTO:

Rubina Alam, MBA in Information Technology (IT) (Saint John’s University, New York)

 Developing the company's strategy for using technological resources.

Workers: will be responsible for keeping the business running and also maintaining, packaging and
delivering the ingredients to the customer’s doorstep.

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FINANCIAL PLAN

The initial investment made by each of the six partners will be BDT 400,000 each, amounting to a total
of BDT 24 lacs. An additional loan of 20 lacs will be taken from a Bank. Of our choice.

INCOME STATEMENT FOR YEAR 1

REVENUE/SALES

TOTAL 14400000

COST OF GOODS SOLD (COGS) 3600000

GROSS PROFIT 10800000

OPERATING EXPENSE

SALES & ADMINISTRATION 1800000

MACHINERIES 20000

DELIVERY & TRANSPORTATION 150000

WEB DEVELOPMENT &

100000
ADVERTISING

DEPRECIATION OF GOODS 20000

UTILITY & BILLS 50000

WAREHOUSE RENT 350000

BANK INTEREST 220000

TOTAL OPERATING EXPENSE (2710000)

NET INCOME

NET INCOME BEFORE TAX 8090000

TAX (25%) 2022500

NET INCOME AFTER TAX 6067500

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TYPES OF LICENSES:
As we plan to operate our service in Dhaka initially, we will be registering for a single commercial trade
license under the business type ‘partnership’ issued by DCC (Dhaka City Corporation). Additionally, we
will also be registering for a fire license issued by Fire Service and Civil Defense (FSCD) authority
operating under the Ministry of Home Affairs, Bangladesh.

At the end of our first year, we will be applying for a Certification Mark (CM) License to gain BSTI
(Bangladesh Standards and Testing Institution) approval.

As our partnership is formed by 6 members, each of us has agreed to invest BDT 4 Lac, bringing the total
amount to BDT 24 Lacs. Additionally, with the necessary requirements such as Executive Summary and
Forecasted Income Statement as well as security, we will be obtaining a long term loan of BDT 20 Lacs
from Standard Chartered Bank at an interest rate of 11% each year.

RISK MANAGEMENT:
We will be getting “Employer’s Liability” as well as “Business Interruption” Insurance from Continental
Insurance Limited to protect our team, including the owners, in the event of immediate suspension or
termination of our entity.

Moreover, if we do not get the start we want in the market, we plan to pivot our entity towards the
traditional restaurant type business with food delivery services.

LOAN PROPOSAL PLAN:

Our initial investment budget will be BDT 24 lacs from each of our founding partners, and with the help
of The Standard Chartered Bank a loan of BDT 20 lacs will be accumulated. We plan on applying for the
start-up investment loan to The Standard Chartered Bank with Business Plan, the Executive Summary
and the forecasted financial plan that we have prepared.

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 CONCLUSION

In conclusion, Munchkit will utilize its advantageous supply chain, fresh and quality local ingredients,
promotion plans and other strategies to enter the Bangladeshi market. With a willing target market and
competitive pricing, Munchkit can hope on consumers finding the service attractive by appealing to the
busy life of bachelors and novice home cooks. Munchkit offers a convenient solution to not having time
to shop, scavenge for ingredients and pick a recipe.

REFERENCES

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https://en.wikipedia.org/wiki/Food_industry_in_Bangladesh
https://guides.library.pdx.edu/c.php?g=271164&p=1811707
https://dsm4b.files.wordpress.com/2015/08/lect-2.pdf
https://en.wikipedia.org/wiki/Market_segmentation

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