Course Title: Business Case Analysis

Assignment On:

Case Development

Submitted To:

Ms. Nilufar Sultana

Assistant Professor

Finance Discipline

Premier University, Chattogram.

Submitted By:

Group - “G”

Name Student ID
Md. Emran Hossain 0222320004083016
Anik Das 0222320004083025
Sheik Arfat 0222320004083031
Mohammed Sartaj Uddin 0222320004083042
Prantan Chowdhury 0222320004083038

Date of Submission: 5th October, 2023.

When Abrar Hossain returned home to Chattogram from the UK a few years ago after finishing his
studies, he missed nothing but England's cakes and pastries. He could get something equally delicious
only when he visited Dhaka, or when someone brought him something from the capital. Tasting his
favorite items so infrequently did not satisfy his cravings, and he knew there were many others with a
sweet tooth like him in the port city, so he and his friends decided to set up "Le Bakehouse" – a world-

class bakery in Chattogram. They started setting up a factory in 2018, importing bakery machines and
equipment from abroad and looking for the manpower needed, but the Covid-19 pandemic hit the country

and disrupted their plans. As the pandemic subsided, the young entrepreneurs resumed their project and
finished setting up a 6,000 sqft factory in the city's Kalurghat BSCIC Industrial Area for making over 40
bakery items a day. They started with small scale initial production at the factory in August 2021 and
opened an outlet to market test their products at the end of that year. This initial site was near the petrol
pump at the Wasa junction in the city. They only officially launched the shop on 24 th March this year. So

far, they have invested Tk4 crore. Even before the official launch, some of the company's products gained
a lot of popularity with customers and among their most sought items are butter croissants. Le
BakeHouse's chocolate éclair, salted caramel éclair, strawberry éclair, chocolate tart, red velvet cheese
brownie, and strawberry mousse domes also attract a lot of customers. Customers also like their cookies,
like strawberry shortbread, golden raisin cookies, and pistachio cookies which have gained recognition

within a short time. Most of these delicious baked goods were not available in Chattogram before. They
have focused on two issues here – fresh products, varied flavours. They are trying to strike a balance
among these two things. Officials and employees have been given six months of training to maintain a
healthy environment in the factory. Premium quality chocolate is imported from Belgium, fresh cream
from Australia, butter from New Zealand, and oil from Italy. They are trying to introduce new products in
bakery industry and hence most of their raw materials are imported. Therefore most of their products
price are comparatively high. They plan to launch four outlets this year and have set up the factory so
they can readily deliver products. They have already launched two new outlets in Khulshi Mart and in
Bayazid Bostami Road, near Badsha meah patrol pump considering their target customers.

As there is intense competition in bakery industry in Chattogram they have to compete with some giant
bakery company like Well food, Banoful, Fulkoli, Kbakery etc. to be stable in this industry. Taking this
on the consideration they are differentiating in their products line. They are introducing some savory
items like Beef Mushroom Pie, Chicken pepperoni sandwich etc. They are planning to hold corporate
clients to provide launch and snacks. They have already gotten Chattogram Grammar School, PHP,
BSRM and KSRM. This companies officials are quite satisfied with “Le BakeHouse” services. Their
outlets are well decorated and have the facilities to taste their products in the outlets. They also serve
foods in small occasion.

As new in this industry “Le BakeHouse” is still struggling to increase their sells and covering up their
fixed cost. Realizing the need to boost their products they are using the online platform like Foodpanda
and Pathao. They are using social media to promote their product by creating video adds. Whether the
other companies in this industry are focused on direct marketing and selling their product with their own
apps. They are doing their business with their own outlets and through franchising based. However “Le
BakeHouse” are now establishing a dedicated marketing department, tasked with reaching their target
customers effectively. They are investing in R&D sites.

“Le BakeHouse” is mostly focused on their product qualities than price. Competitors are coping its
product design from its catalogue and then offering similar products at lower prices. This is hampering in
increasing their sells as they are losing their customers who are price sensitive. Now they are trying to
collect their raw materials from local suppliers and customizing their product price considering
chattogram environment. This strategic change gives them a remarkable change in their business. Besides
this the company also started performing by focusing on the products that local customers preferred. The
company also focused on mass production and trimming supply chain costs to reduce prices. They are
also providing discount and combo packages to increase their sells.

Through the journey the company has learnt that doing business as a new entrants in a competitive market
is a different ball game. “Le BakeHouse need to adapt the Chattogram market place and have to focus on
more promotional activities to become profitable and stable.