Frozen food marketing plan


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Business Plan for Frozen Beef

Business Plan for Frozen Beef Products





































O" O" 

Mr. Saif Rahman (Sfr) Mr. Saif Rahman (Sfr) Course Instructor  Course Instructor  MGT368.6 MGT368.6












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Tu-a *han !I"# $%'11'3$

 Date of Submission:  Date of Submission: 5 5thth April, 2010 April, 2010 School of Business School of Business  North South University  North South University































O" O" 

Mr. Saif Rahman (Sfr) Mr. Saif Rahman (Sfr) Course Instructor  Course Instructor  MGT368.6 MGT368.6












M Ashad Uz aman !I"#

M Ashad Uz aman !I"# $%&'6$'$3$$%&'6$'$3$ M. *amru+ ,asan (I"#

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Tu-a *han !I"# $%'11'3$

 Date of Submission:  Date of Submission: 5 5thth April, 2010 April, 2010 School of Business School of Business  North South University  North South University














E$ecuti%e Summar& E$ecuti%e Summar& 'e O((ortunit& 'e O((ortunit& 'e Product 'e Product )ar*et Anal&sis )ar*et Anal&sis   Methodo+o2/   Methodo+o2/ Maret Size Maret Size Maret

Maret 4+a/ers4+a/ers Maret

Maret 4otentia+ 4otentia+ 5 5 4enetration4enetration Industr& Anal&sis Industr& Anal&sis 4ST 4ST Ana+/sisAna+/sis +om(etition Anal&sis +om(etition Anal&sis "irect

"irect Com7etitorsCom7etitors Indirect

Indirect Com7etitorsCom7etitors )ar*etin, )i$

)ar*etin, )i$ 4roduct

4roduct 5 5 4ricin24ricin2


  4rroommoottiioonn )ana,ement eam )ana,ement eam

)anufacturin, - Deli%er& Process )anufacturin, - Deli%er& Process Financial

Financial Pro.ectionPro.ectionss Ris

Ris Ana+/sisAna+/sis E$(ansion Plan E$(ansion Plan Bi/lio,ra('& Bi/lio,ra('& A((endi$ A((endi$ && 33 33   66 88 88 11 $ $ & & 3 3       6 6 % % % % 8 8 & & &8 &8 &1 &1 3$ 3$ 33 33








The A2ro'9ased Industr/ in 9an2+adesh es7ecia++/ the frozen food sector The A2ro'9ased Industr/ in 9an2+adesh es7ecia++/ the frozen food sector is

is curcurrenrent+/ t+/ en0en0o/o/in2 in2 a a +uc+ucratrati:e i:e and and e;7e;7oneonentintia+ a+ 2ro2ro<th <th <it<ith h &8=&8= industr/ 2ro<th. Im7ro:ed catt+e -reedin2> 2ro<in2 consumer demand industr/ 2ro<th. Im7ro:ed catt+e -reedin2> 2ro<in2 consumer demand due

due to to im7im7ro:ro:emement ent in in +if+ifestest/+/+e> e> stastandandard rd of of +i:+i:in2 in2 and and incincreareasinsin22  7urchasin2 7o<er has +ead

 7urchasin2 7o<er has +ead to a to a hu2e 0um7 in hu2e 0um7 in sa+es in the sa+es in the recent /ears. Inrecent /ears. In add

additiition> on> ta; ta; e;e;c+uc+usiosion n and and -an-an  +oa+oan n intintereerest st anand d 7ri7rincnci7ai7a+ + amamounountt  7a/ment e;em7tion for ne;t 8

 7a/ment e;em7tion for ne;t 8 /ears -/ the 2o:ernment 7o+ic/ maes it /ears -/ the 2o:ernment 7o+ic/ maes it aa  7ros7ecti:e m

 7ros7ecti:e maret and toet and to in:est. Am

Amon2 on2 its its comcom7et7etitoitors> rs> 4re4remiumium m ?ro?rozen zen 9ee9eef f 4ro4roducducts ts facface e +it+itt+et+e com

com7etiti7etition on in in the +oca+ the +oca+ scescenarionario. . @oca@oca+ + direcdirect t com7com7etitoretitors s inc+uinc+ude de on+/on+/ Rich (86= maret share) <hi+e forei2n -rands are A+'*a-eer> "ou;> Rich (86= maret share) <hi+e forei2n -rands are A+'*a-eer> "ou;> *ha+ee0> Sran2osun and A/amas. Amon2 its indirect com7etitors> *ha+ee0> Sran2osun and A/amas. Amon2 its indirect com7etitors> Afta-and Saus+e/ are dominatin2 esta-+ished -rAfta-ands in the maret <ith one and Saus+e/ are dominatin2 esta-+ished -rands in the maret <ith one s7ecia+izin2 on+/ in chicen and the +atter caterin2 on+/ fresh 7roducts. s7ecia+izin2 on+/ in chicen and the +atter caterin2 on+/ fresh 7roducts. Sur:e/ <ith mana2ers at different 7oint'of'sa+es (A2ora) a+so sho<ed Sur:e/ <ith mana2ers at different 7oint'of'sa+es (A2ora) a+so sho<ed their 7reference to she+f +oca+ -rands and enthusiasm in 7romotin2 them their 7reference to she+f +oca+ -rands and enthusiasm in 7romotin2 them amon2 consumers.

amon2 consumers.

4remium ?rozen 9eef 4roduct ran2e <i++ inc+ude Sausa2es> Meat-a++s> 4remium ?rozen 9eef 4roduct ran2e <i++ inc+ude Sausa2es> Meat-a++s> Sa+

Sa+amami i and *e-a-and *e-a-s> s> the the +at+atter ter a a comcom7+e7+ete+/ ne< te+/ ne< intintrodroducuctiotion n in in thethe maret -/ an/ +oca+ firm. It is 7ositionin2 as

maret -/ an/ +oca+ firm. It is 7ositionin2 as momore for re for mormore,e, offerin2 aofferin2 a :a+

:a+ueue'ad'added ded 7ri7rice ce to to its its uaua+it/ +it/ coconscnsciouious s conconsumsumersers. . Its Its -u-usinsinessess in

inc+c+ududes es -o-oth th 9&9&C C anand d 9&9&9 9 cucuststomomerers s <h<ho o arare e <i<i++++inin2 2 to to 7a7a// com7arati:e+/ hi2her 7rice for more nutrition> assurance of ha+a+> taste com7arati:e+/ hi2her 7rice for more nutrition> assurance of ha+a+> taste and ua+it/. The maret sur:e/ sho<s that around 1$= <ant the current and ua+it/. The maret sur:e/ sho<s that around 1$= <ant the current  7roducts

 7roducts in in the the maret maret to to im7ro:e im7ro:e in in ua+it/ ua+it/ and and taste. taste. ?urthermore> ?urthermore> toto create 7roduct and -rand a<areness and esta-+ish its -rand ima2e in the create 7roduct and -rand a<areness and esta-+ish its -rand ima2e in the minds of the consumers> 4remium <i++ inc+ude 7romotiona+ too+s +ie minds of the consumers> 4remium <i++ inc+ude 7romotiona+ too+s +ie ne<s7a7ers> +eaf+ets> sam7+in2> ma2azines and -i++-oard <ith a tota+ cost ne<s7a7ers> +eaf+ets> sam7+in2> ma2azines and -i++-oard <ith a tota+ cost of

of TT. . &&>$>$$>$>$$$$$ $ in in ththe e fifirsrst t /e/ear. ar. ThThe e fafacici+i+it/ t/ <i<i++ ++ -e -e +o+ocacateted d inin Busu

Busuf2anf2an0> 0> ara/ara/an2aan2an0 n0 costcostin2 in2 T.3T.3$>$$$>$$>$$$>$$$. . A+on2 A+on2 the the distridistri-utio-utionn


channe+> se+ecti:e Chand7ur su77+iers <i++ recei:e $= share <hi+e distri-utors +ie A2ora <i++ recei:e additiona+ $= on 7rofit.

4remium <i++ reuire an in:estment of T. &$>$$$>$$$ <hich <i++ inc+ude euit/ financin2 of = and de-t financin2 of 1=. 4a/-ac 7eriod for 4remium in:estors <i++ -e 22  /ears from the start of -usiness. A+so

9reae:en for sa+es <i++ amount to T. 3454367 in 266  /ears. ;it

 7+an in case of <orse case scenario <i++ -e mer2er <ith a 7otentia+ com7etitor. En the otherhand> a -est case scenario <i++ a++o< further e;7ansion of -usiness -/ 2oin2 for e;7ort after the fifth /ear of -usiness after sufficient increase in retained earnin2s.





The further ha+a+ meat 7rocessin2 under A2ro'9ased industr/ of 9an2+adesh is recent+/ e;7eriencin2 a renaissance <ith d/namic and far' si2hted entre7reneuria+ -usiness creations that ser:es a di:ersified ran2e of meat 7roducts to its +oca+ consumers as <e++ as contri-utin2 to the countr/Fs e;7ort earnin2s. Amon2 them are 7ou+tr/> shrim7 and catt+e.

A+thou2h> recent /ears ha:e 2i:en beef a +ot of -ad 7ress. Man/ ha:e

c+aimed that the consum7tion of red meat (es7ecia++/ -eef) endan2er oneFs hea+th and +ead to heart diseases and o-esit/. 9ut this can -e said a-out an/thin2 consumed in e;cess. Therefore it is no< im7ortant to refocus on the nutritiona+ -enefits of -eef in our dai+/ diet and the :ita+ ro+e it 7+a/s in a <e++'-a+anced diet of chi+dren> /oun2 7eo7+e and those in their midd+e'a2es and has ta22ed -eef as ta-oo. hat the/ need to no< is H9eef in our diet he+7s to nourish and fue+ our -od/ and is the  um-er Ene source of 4rotein. Considered a natura+ mu+ti:itamin  -ecause of its e;ce++ent source of 7rotein and :itamin 9& it ee7s us ener2ized and su77orts man/ of our -od/Fs dai+/ functions -/ he+7in2  7roduce hormones and enz/mes.

4remium ?rozen 9eef 4roducts understands it consumersF hea+th

reuirements and ser:es a ran2e of halal, tasty, healthy an safe frozen

 -eef 7roducts that inc+udes sausa2e> sa+ami> meat-a++s> and a :ariet/ of e-a-s at a :a+ue'added 7rice. It a+so taes into account the need for eas/


to 7re7are> hass+e'free uic mea+s in our fast'7aced and time'constraint +ife. A+so the demand for -rands +ie Rich and Afta- sho<s consumer  7reference for +oca+ 7roducts o:er forei2n as there are consistent+/

a:ai+a-+e and a+so ha:e a nationa+ :a+ue.

In addition> fast food sho7s and restaurants ha:e a hi2h demand for these frozen -eef 7roducts to cater the ne:er endin2 demand of their customers for :arious -eef menu items +ie nood+es> hotdo2s> sou7> sand<iches> e-a-s etc.

Ether factors +ie im7ro:ed catt+e -reedin2> 2ro<in2 e;7ortin2 o77ortunities in Midd+e'ast> South'ast Asia and e:en uro7e in future> e;tensi:e trainin2 7ro2rams for meat 7rocessin2 <orers -/ @IC> stricter 2o:ernment contro+ acts (&$$8) <i++ acce+erate the 2ro<in2  7ros7ects of further meat 7rocessin2 -usinesses.





4remium ?rozen 9eef 4roducts 7+ans to introduce four 4remium  7roducts. The 7ortfo+io inc+udes 4remium ?rozen 9eef 4roducts Sausa2e> 4remium ?rozen 9eef 4roducts Meat-a++> 4remium ?rozen 9eef 4roducts Sa+ami and 4remium ?rozen *e-a- (Shish> *athi and Shami).

Product Portfolio



 utrition 5




SAUSA#E ?resh> su7erior ua+it/ 5

ha+a+ meat <i++ -e used for 7rocessin2.

@o< cho+estero+

Internationa+ standard  7aca2in2# Re2u+ar size

'3$2 (& 7ieces 7er  7ac) and -reafast

size'&$2 (8 7cJ7ac). 9eef> de;trose> <hite

 7e77er> smoed f+a:or>  7ermitted food conditioner> sodium nitrate> monosodium 2+utamane (GSM). It doesnFt contain additiona+  -readcrum-s> fi++ers or e;cess fat and on+/ trace amount of sodium sa+t

/e'catchin2> air'ti2ht 5 h/2ienic 7aca2es.


8= +ean 2round -eef (hea+th/) ?at . 2m> cho+estero+ $.$6 2m> sodium $.3 2m> car-oh/drate 66.6 2m> dietar/ fi-er . 2m ;7ir/ 7eriodJShe+f +ife# 8months a77ro;imate+/

Contains no e22s or dair/

4rocessed in h/2ienic and strict+/ su7er:ised en:ironment

 atura++/ smoed 4re7aration time# & minutes


9eef> <ater> modified  7otato starch> 7otassium

+actate> sa+t> s7ices>

sodium 7hos7hate> su2ar> sodium nitrite> 2ar+ic> de;trose> sodium

ascor-ate> smoe f+a:or 

Cho+estero+ $.$6 2m> sodium $.3 2m> car-oh/drate 66.6 2m> dietar/ fi-er . 2m Internationa+ standard  7aca2in2# 9reafast

size# &6 7c J&$$2m and Re2u+ar size# &7c J $$2m

 atura++/ smoed

Trimmed to $K ?at ;7ir/ 4eriodJShe+f +ife# 8 months a77ro;imate+/  8= +ean 2round -eef


4re7aration time# & minutes


9eef> sa+t> :e2eta-+e

 7rotein> s7ices @o< cho+estero+ a+nut size meat -a++s ?resh and su7erior ua+it/

meat <i++ -e used for  7rocessin2.

Internationa+ standard  7aca2in2# Re2u+ar

size# $ 7cJ3$$2m Contains no e22s or dair/ She+f @ife#8 months




9eef> sa+t> e-a- s7ices> sodium nitrite> 2ar+ic> de;trose> sodium ascor-ate

Cho+estero+ $.$6 2m> sodium 8$m2> car-oh/drate 66.6 2m> dietar/ fi-er & 2m> 4rotein &2

 Internationa+ standard  7aca2in2# 9reafast

size# 7cJ3$$2m 5 Re2u+ar# 87cJ$2m ?resh and su7erior ua+it/

meat <i++ -e used for

 7rocessin2. She+f @ife#8 monthsa77ro;imate+/ Coo time#  minutes



9eef> sa+t> e-a- s7ices> sodium nitrite> 2ar+ic> de;trose> sodium ascor-ate

Cho+estero+ $.$6 2m> sodium 8$m2> car-oh/drate 66.6 2m> dietar/ fi-er & 2m> Iron => 4rotein &2 Internationa+ standard  7aca2in2# 9reafast size# 7cJ3$$2m 5 Re2u+ar# 87cJ$2m 9eef cut into Kinch thic


She+f @ife#8 months a77ro;imate+/


?resh and su7erior ua+it/ meat <i++ -e used for  7rocessin2.

Coo time# $ minutes



9eef> sa+t> e-a- s7ices> sodium nitrite> 2ar+ic> de;trose> sodium

ascor-ate> +emon 2rind>  7e77er 

Cho+estero+ $.$ 2m> sodium 8$m2> car-oh/drate .6 2m> dietar/ fi-er & 2m>Iron => 4rotein 32  Internationa+ standard  7aca2in2# 9reafast size# 7cJ3$$2m 5 Re2u+ar# 87cJ$2m

?resh and su7erior ua+it/ meat <i++ -e used for

 7rocessin2. She+f @ife#8 months a77ro;imate+/ 9eef cut into Kinch






In order to understand the maret of frozen -eef 7roducts> an e;tensi:e maret research <as carried out. The se2mentation of the tar2et> maret size> 2ro<th rate and 7rofita-i+it/ <ere then ana+/zed accordin2+/.


It is :ita+ to remem-er that a thorou2h maret> industr/ and com7etitor research reuires a com-ination of -oth 7rimar/ and secondar/ data. The data co++ection methodo+o2/ is discussed -e+o<.

Primar& Data;

 Sample !uestionnaire: In order to identif/ some e/ factors a-out the consumer -eha:ior and maret direction> sam7+e uestionnaires of 3 uestions each (-oth o-0ecti:e and su-0ecti:e) <ere a+so used.

 Sam7+e size and se+ection 7rocess# 3$'$ res7ondents

<ere random+/ se+ected to fi++ u7 the uestionnaire

 "ocus #roup Discussion: Unstructured> free'f+o<in2 inter:ie<s <ith 2rou7s of 7eo7+e <ere taen in order to -etter understand their attitude to<ards 7roduct t/7e and demand. The focus 2rou7s> consistin2 of '8 7eo7+e each> he+7ed to find out the criteria or


 7arameters that identified the needs of our consumers and ho< to reach the

 $ntervie%: 7ersona+ inter:ie<s <ere taen of com7etitors +ie Saus+e/> Afta- and others for c+earer understandin2 of maret trend> 2ro<th or +ucrati:eness and sustaina-i+it/. A+so for maret ana+/sis> inter:ie<s <ith mana2ers and staff of A2ora> 4LS> andan> Sho7no> Meena 9azar <ere carried out.

Secondar& Data;

These inc+uded e;tensi:e research on#

 e-sites

 Ma2azines

  e<s7a7ers for maret size> 2ro<th> 2o:ernment 7o+icies> +a-or maret etc.

 En+ine 0ourna+s and artic+es

A++ these co++ection of data <ere com7i+ed to2ether to ana+/ze the frozen meat maret of 9an2+adesh and see ho< +ucrati:e it is for start u7  -usiness in this sector.

Three ma0or factors of the maret are discussed -e+o<.

)A"8E SI<E

#eo,ra('ic Se,mentation; The maret size for ?rozen 9eef 4roducts <i++ initia++/ -e confined to on+/ "haa Cit/ (ca7ita+) of 9an2+adesh. ?irst for Geo2ra7hic Se2mentation> the cit/ can -e di:ided accordin2 to its cit/ districts Maret sur:e/ sho<ed 3%= of the res7ondents +i:e near Uttara fo++o<ed -/ &3= +i:in2 in Gu+shan and &$= in "hanmondi and on+/ 3= from other areas +ie Mir7ur (A77endi;). The hi2hest demand for the 7roducts is e;7ected from Gu+shan> Uttara and "hanmondi re2ion> <hi+e Mir7ur and Mohammed7ur areas are e;7ected to sho< the +o<est demand due to the difference in income> taste and +ifest/+e.


Demo,ra('ic Se,mentation; Random maret sur:e/ at the su7erstores resu+ted in on+/ $= fa++in2 -e+o< &$ /ears (Chi+drenJTeena2ers) <hi+e ma0orit/ <ith 3= -e+on2ed to the a2e se2ment -et<een &$'3$ /ears. 9oth of these se2ments a+so sho<ed a stron2 tendenc/ to -eef 7reference es7ecia++/ frozen -eef 7roducts <ith a dominatin2 %$= out of <hich &% = -e+on2 to the a2e 2rou7 -e+o< 3$ /ears. Amon2 the %= -e+on2in2 to the a2e se2ment -et<een 3'$ /ears> more than ha+f are direct consumers.

The &$$ "haa cit/ income distri-ution amon2 the househo+d has -een used in the ta-+e -e+o<. It sho<s the num-er of househo+d <ith e;treme hi2h income (U77er U77er C+ass)> moderate+/ hi2h income (@o<er U77er C+ass) and hi2her midd+e income (,i2her Midd+e C+ass). In addition> the 7o7u+ation in "haa Metro has a+so -een ca+cu+ated.

Accordin2 to the maret research> &%= of the res7ondents ha:e an a:era2e month+/ income of T. %>$$$ and a-o:e and can -e c+assified as the U77er U77er c+ass. Simi+ar+/> &3= -e+on2s to @o<er U77er c+ass <ith an a:era2e income ran2e of T. $'%>$$$ month+/ (A77endi;). ?urthermore> amon2 those -e+on2in2 to the U77er U77er c+ass> $= s7ends T. $$$ to 3$$$ month+/ on -eef <hi+e on+/ &$= s7end +ess than T. $$$ and 3$= s7end more than T. 3$$$. This means that around 3.= are ardent and re2u+ar -eef consumers <ith &= of the res7ondents s7endin2 more than &3= of their tota+ e;7enditure of -eef on frozen 7roducts <hi+e another &= s7ends more than J3 of their e;7enditure of -eef on frozen 7roducts.

The @o<er U77er C+ass and U77er Midd+e C+ass to2ether contained 3= of the res7ondents. Around .= s7end either ha+f or one'si;th of their tota+ e;7enditure of -eef on frozen -eef. hi+e around &3= res7ondentsF  7ro7ortion of e;7enditure of frozen -eef to tota+ -eef s7endin2 ran2es

from $'%$=. (A77endi;).

Ot'er Basis of Se,mentation; @ast+/> 7s/cho2ra7hic and -eha:iora+ tar2et maret has -een identified to narro< do<n the maret size and ta7 the rea+ consumers of the 7roduct.


Maret research has a+so sho<n that 6.3= 7rofessiona+s and a-out 3= of the house<i:es sho<ed hi2h 7reference for -eef 7roducts -ecause of ur-anization> decreasin2 fami+/ size> the s7read of education and em7+o/ment amon2 <omen> risin2 in standard of +i:in2> inf+uenced -/ chi+drenFs 7reference> <hich in turn +ead to a ma0or shift in food ha-its in u77er'midd+e c+ass and a-o:e. Amon2 students a+most 1%= are -eef consumers and therefore our ma0or tar2et se2ment. (A77endi;).


Maret research at 7oint'of'sa+es ha:e sho<n a <ee+/ maret demand for frozen -eef 7roducts of a-out &'3= of tota+ demand of su7erstore  7roducts due to the maret 7reference 7ercenta2es sho<n a-o:e. hi+e demand for frozen -eef 7roducts in ua+it/ and u7-eat fast food sho7s and e+ite hote+s ha:e sho<n a <ee+/ demand of T. &$>$$$.

stimated tota+ maret <orth is a-out T. .% crore (A77endi;)

)A"8E PLA!E"S

Current+/ the ma0or 7+a/ers for frozen food 7roducts in the maret are

(+oca+ com7anies) "ic' Food (roducts =it' >? mar*et s'are  and

 7roducts ran2in2 from chicen> -eef and fish and forei2n -rands inc+ude A+ *a-eer' the +eadin2 com7etitor in -eef 7roducts> "ou;> A/amas and Sran2osun <ho most+/ s7ecia+ize in chicen 7roducts and sometimes in  -eef.

Indirect maret shareho+ders inc+ude Saus+e/Fs and Afta- ?ood 7roducts <ho dominatin2 in 7ou+tr/ 7roducts.> the former s7ecia+izin2 in non' frozen> fresh sausa2e 7roducts.


Accordin2 to the maret research> %$= sho<ed inc+ination to<ards sausa2e frozen food 7roduct> <ith meat-a++s ho+din2 $= of the share and 33= for e-a-s and 3$= for sa+ami. Amon2 them> %= of the sausa2e +o:ers> a++ of sa+ami> a-out 33= of meat-a++ +o:ers and a+most


3$= of the e-a- enthusiasts fa:ors -eef either <ith or o:er chicen> fish and sea food (A77endi;).

• Ma0or ad:anta2e of the current maret scenario is +ac of 9eef

*e-a- 7roducts -oth +oca+ and forei2n 7roduced. This minimizes com7etition for 4remium ?rozen 9eef 4roducts to on+/ +oca+ 7roducers Rich> and ?orei2n im7orts +ie A+'*a-eer.

• The 7roduct +ine for 9eef *e-a- are com7+ete+/ ne< and unri:a+ed in

the +oca+ maret> therefore 7ro:idin2 it a hu2e o77ortunit/ to ca7ture the unta77ed maret se2ment. ItFs on+/ ma0or com7etitor is A+'*a-eer> <hich is im7orted> :er/ e;7ensi:e and is not a+<a/s a:ai+a-+e due to  7oor distri-ution channe+. A+so it suffers from constant 7rice

f+uctuations -ut as it 7+a/s a mono7o+/ ro+e in the maret> it en0o/s an unfa+terin2 demand.

• The de:e+o7ment of customerFs taste> hea+th a<areness and

e;7erimentin2 ne< 7roducts are e/ success indicators for 4remium ?rozen 9eef 4roducts

• A+so 2o:ernment acts to ensure strict re2u+ations to maintain ua+it/ of

meat and increased catt+e 7roduction offers the o77ortunit/ to e;7and throu2h e;7ort to countries in the Midd+e'ast> South Asia +ie Ma+a/sia> Indonesia and e:en to uro7e.

• In addition> some or2anizations are co++a-oratin2 <ith meat 7roducin2

com7anies to 7ro:ide standard and ua+it/ trainin2 to <orers and therefore de:e+o7in2 their si++ and ensurin2 more ua+it/ contro+.





Some of the e/ hi2h+i2hts of success are#

 9an2+adesh current+/ has a 7o7u+ation 2ro<th rate of .&1&= (&$$1 est.) and a +iterac/ rate of %.1= and increasin2 standard of +i:in2. The G"4 at current 7rice is US  81.$ mi++ion ("S In:estorFs Guide).


 Thou2h -ein2 a de:e+o7in2 countr/> it is current+/ e;7eriencin2 an increase in its de:e+o7ment in si++ and no<+ed2e. 4eo7+e are 2radua++/ shiftin2 to more conscious -u/in2 ha-its (es7ecia++/ for food) due to e;7osure to the 2+o-a+ trends and recent e:ents from the food court fiasco


 ?rozen foods is the second +ar2est e;7ort sector of the econom/ <ith

a recent average aual gr!"t# rate !$ %' (9an2+adesh 9oard of

In:estment) <ith some com7anies +ie Afta- and Rich en0o/in2 an un-e+ie:a-+e $$= 2ro<th in sa+es in most /ears (Com7etitor inter:ie<). The massi:e natura+ resources a:ai+a-+e in 9an2+adesh mae this sector 7articu+ar+/ 7romisin2 for in:estors +ooin2 to su77+/ in internationa+ as <e++ as in domestic marets.

 This 7ro:ides a +ucrati:e o77ortunit/ to understand and ca7ture the

2ro<in2 demand for ua+it/ contro++ed and hea+th/ food 7roducts and ser:e this e;7andin2 niche maret.

 A+so fo++o<in2 a 7eriod of stron2 in:estment in techno+o2/> 7rocesses

and re2u+ation the frozen foods sector has f+ourished and earned itse+f an e;ce++ent re7utation <ith tradin2 7artners.

  Also e&emption from payin' interest an proportion of principal amount for the ne&t ( years for ban) loans for A'ro*Base inustry an ta& holiays ma)e it lucrative+

 Continuin2 in:estment in techno+o2/> maretin2 and ua+it/ remain

at the forefront of the industriesN strate2/ to meet the cha++en2es of internationa+ trade in 7rice> ua+it/> time and ser:ice.

 Cases of 9ird ?+u in our countr/ <i++ act as a stren2th for the

com7an/ as consumers of chicen <i++ shift to -eef 7roducts due to hea+th issues.

The 4ST ana+/sis <i++ 7resent a c+earer 7icture of the industr/ for frozen  -eef 7roducts.



9an2+adesh had o:er the 7ast fe< /ears ha:e e;7erienced its fair share of  7o+itica+ unrest and economic do<nturn. 9ut recent /ears ha:e sho<n the 2o:ernmentFs ea2erness to de:e+o7 its industria+ manufacturin2 sector and encoura2e ne< in:estments -oth +oca+ and forei2n -oth on +ar2e and sma++ sca+e. A+on2 <ith the RMG sector> the Go:ernment has de:e+o7ed initiati:es of ua+it/ assurance for frozen foods in co'o7eration <ith e;7orters. This has initiated an increase in e;7orts of frozen foods +ie shrim7 and meat. Acts or Erdinances to ensure ua+it/ contro+ ha:e he+7ed de:e+o7 this industr/ to -e more com7etiti:e and 7otentia+ -oth at home and a-road.


conomic factors +ie the +e:e+ of dis7osa-+e income> -u/erNs confidence to s7end on +u;ur/ 2oods are some crucia+ :aria-+e re+ated to this ind of  -usiness es7ecia++/ as 4remium ?rozen 9eef 4roducts are 7ro:idin2 a :a+ue'added 7rice. As discussed a-o:e the G"4 2ro<th rate is a re+ia-+e indicator that the countr/ is e;7eriencin2 a -oomin2 2ro<th com7ared to most <estern countries. This in turn is attractin2 forei2n in:estments and  7romotin2 ne< com7anies to enter the maret more easi+/ as <e++ as ensurin2 their +on2 term sustaina-i+it/. A:ai+a-i+it/ of ca7ita+> de:e+o7ment of the 9anin2 s/stem as <e++ as the financia+ institutions and the ease of +oan 7ro:isions are im7ortant factors attractin2 sma++ entre7reneurs to the maret -aset.


The Asian frozen food maret> es7ecia++/ 9an2+adesh is e;7eriencin2 an increased demand for ha+a+ frozen meat 7roducts. ?our factors inf+uencin2 the current consum7tion shift are#

 Increase in dis7osa-+e income that +ed to the increase in consumersF

food e;7enditure.

 Increase in a<areness of frozen foodFs time sa:in2 -enefits.

 Increase in the use of refri2eration amon2 househo+ds.


 Gro<th in the estern st/+e fast food industr/ that encoura2es the  7urchasin2 of frozen

 Chi++ed food <ith the same taste. (,a+a+ ?ood Maret)

 Increase in num-er of <orin2 7arents (-oth father and mother)

therefore need for hass+e free> eas/ to 7re7are mea+s or snacs.

 Gro<in2 trend for e;7erimentin2 <ith different foods and tr/in2 out

fusion reci7es that are nutritious> tast/ and es7ecia++/ a77ea+in2 to chi+dren.

 Maretin2 7ro2rams to educate and inform consumers a-out the

ad:anta2es of chi++ed and frozen foods

 4romotiona+ acti:ities> es7ecia++/ media ad:ertisin2 and

demonstrations are effecti:e in communicatin2 the :a+ue of chi++ed and frozen 7roducts> i.e. as <e++ as fresh food> if not -etter> more h/2ienic> and tast/. Studies sho< that sa+es of chi++ed and frozen foods are more 7romotion' res7onsi:e than those of other 7roducts. Accordin2 to maret research ma0orit/ <ith 63= 7refers +eaf+ets and  -anners for 7romotion <hi+e 6$= associate <ith ne<s7a7er <hi+e

another most +ucrati:e medium of ad:ertisement to -ui+d a<areness is throu2h <ord of mouth <ith 33= res7ondent 7reference (A77endi;). Consumers 7refer trans7arent 7aca2in2 for read/'to' ser:e mea+s> so the/ can see the contents.


In:estment in the frozen food sector <ith ne< techno+o2/ and eui7ment has :ast 7otentia+ for 2ro<th <ith incredi-+e o77ortunities in 9an2+adesh itse+f as <e++ as e;7ortin2 in Midd+e ast> U> orth America and the far eastern countries. 9ecause of 2+o-a+ization the +atest techno+o2ies are  -ecomin2 a:ai+a-+e due to chea7er 7rices and ua+it/ maintenance <hich has made the 7roduction 7rocedure eas/> enhanced the 7roducti:it/ and stream+ined 2reat ua+it/. ase of chea7er -ut ua+it/ im7orts of Chinese machineries a+so he+7 to reduce in:est costs and therefore ena-+e to  7roduce at +o<er costs and so there-/ reducin2 7rice -ut ensurin2 ua+it/


contro+. Assem-+/ +ine automated 7roduction 7rocess a+so induce mass  7roduction> minimize human errors and tam7erin2 <ith food ua+it/ and maintains uniformit/ in taste> su7eriorit/ and in2redients. Im7ro:ement in the co+d'chain> i.e.> -etter eui7ment> 7ro7er food hand+in2 7ractices> adeuate trans7ortation> and stora2e ha:e encoura2ed hi2her out7ut and minimized incidences of s7oi+a2e. ?eed mea+s 7+ants and 7rocessin2 unit for :a+ue'added 7roducts are at 7resent the -uzz <ords in 9an2+adeshi frozen meat industr/. ui:a+ent+/> <orers are a+so recei:in2 trainin2 for si++ de:e+o7ment in o7eratin2 these ad:anced techno+o2ies therefore com7+ementin2 each others 2ro<th simu+taneous+/.





Maret research at :arious 7oint'of'sa+es in "haa 2a:e a c+ear understandin2 of the different com7etin2 7roducts in the maret> their  7aca2in2 and 7ricin2. The ta-+e -e+o< sho<s its summar/.

DI"E+ +O)PEIO"S OF F"O<EN BEEF P"ODU+S Product

&(e +om(etitor Name @uantit&, PieceCPac Price*


@oca+ Rich &$ $ $

3$ & $ ?orei2n *ha+ee0 3$ & 83 A+'*a-eer $$ $ &&$ "ou; 3$ & % A/amas &$ 8 $ Sran2osun 3$ $ 3$

Sa+ami @oca+ Rich

$$ & 1$ &$$ &6 $ ?orei2n A/amas $$ $ 1$ Meat 9a++s @oca+ Rich 3$$ $ %$ ?orei2n A+'*a-eer  3$$ 8 3$$ Sran2osan 3$$ 8 %$ A/amas 3$$ $ %$

*e-a- ?orei2n A+'*a-eer $ 6 3&$

Inter:ie<s <ith the mana2ers and staffs of different su7erstores sho<ed that different 7oint'of'sa+es 7romotes different -rands> -ut the/ a++ 7refer


to encoura2e and she+f +oca+ -rands (Rich and Afta-) most+/ due to man/ ad:anta2es. These inc+ude more fami+iar and c+ose re+ationshi7 <ith their dea+ersJdistri-utors of the 7roducts> consistent su77+/ of the 7roducts> and easierJuic to res7ond to the chan2es in maret demand. This maes in:entor/ mana2ement more cost'effecti:e and efficient.

DI"E+ +O)PEIO"S;

There are se:era+ direct com7etitors in the frozen -eef maret as

re7resented -/ the ta-+e a-o:e. ,o<e:er> our e/ com7etitors are Rich (+oca+) and A+'*a-eer (forei2n).


Rich A2ro Industries @td. is a su-sidiar/ com7an/ of ,ar:est Rich Grou7> a 7ioneer in te;ti+e and a2ro industr/ in 9an2+adesh. NRichN is the maret +eader in 9an2+adesh for further 7rocessed meat 7roducts <hich dominates 86= of the maret share.

NRichN 7roduct 7ortfo+io has o:er &$ t/7es of further 7rocessed 5 :a+ue added 7roduct ran2e in Chicen> 9eef> ?ish> Mutton 5 Tu-e ice. The/ are cate2orized into Co+d meatsJcuts> Smoed 5 Gourmet S7ecia+ties> Sausa2es> 9ur2ers and 9readin2 +ine u22ets> and *ie:s. Their 7roduct ran2e cate2ories are -een distri-uted to a++  Star hote+s> Internationa+ restaurants> Chain Stores to the Corner sho7s in their o<n f+eet of co+d refer trucs.

?rom the consumer sur:e/ it <as found that 83= of the consumers  7referred Rich (33= on+/ Rich a+one). Its dominance <as more e:ident

u7on asin2 A2oraO the/ said that Rich is the hi2hest se++in2 frozen -eef from their stores.


A+'*a-eerFs o-session <ith ua+it/ in 7rocurement> manufacturin2 and distri-ution of ?rozen ?oods has he+7ed esta-+ish them as a +eader in the Midd+e ast ?rozen ?ood Industr/. The A+'*a-eer caterin2 ran2e

inc+udes meat> 7ou+tr/> seafood> :e2etarian 7roducts> and read/'to'eat


 7roducts. A+ *a-eer has -een in the -usiness for Mutton> Chicen and 9eef for o:er three decades no<.

9rand 7reference for A+'*a-eer <as found to -e %=> <hich is the second hi2hest> des7ite its much hi2her 7rice (around .% times more) than Rich of simi+ar 7aca2in2. A2ora confirmed its 7reference throu2h informin2 us that itFs the second most se++in2 frozen -eef from their stores after Rich. A+'*a-eer is our on+/ com7etitor in terms of frozen  -eef *e-a-.

A&amas3 Dou$3 and Sran,osun

The/ are some of our forei2n direct com7etitors -ut the/ do not 7ose much of a threat to us -ecause of their ne2+i2i-+e -rand 7reference and maret share. Accordin2 to our sur:e/> a++ of them com-ined too u7 on+/ 6= of the -rand 7reference. ,o<e:er> des7ite -ein2 forei2n> their  7ricin2 are 7rett/ com7etiti:e and simi+ar to +oca+ 7roducers +ie Rich.

This cou+d -e the on+/ 7otentia+ threat to us.


There are fe< indirect com7etitors of our frozen -eef 7roducts. The/ are

main+/ the +oca+ 7roducers Afta- and Saus+e/. Afta/ se++ on+/ frozen

chicen 7roducts of more or +ess same cate2ories +ie sausa2e> meat-a++> and sa+ami. 9ut their -rand 7reference <as found to -e si2nificant+/ hi2h amon2 the consumers <ith 3$=. So if Afta- enters the maret <ith -eef> this cou+d 7ose a nota-+e threat.

hereas Sausle& do se++ -eef -ut the/ are not 7aca2ed in the <a/ other

 -rands are. The/ offer their 7roducts fresh and not frozen at their  7ersona+ out+ets and a+so at the +oca+ su7erstores in a se7arate counter. So

customers can actua++/ -u/ the amount accordin2 to their needs.

Considerin2 this scenario> Premium frozen -eef 7roducts <i++ -e

 7ro:idin2 su7erior ua+it/ and taste than that of Rich at a hi2her 7rice. This <ou+d 7ut us into a com7etiti:e ad:anta2e -ecause> 8%= of the consumers considered ua+it/ taste as an im7ortant feature of frozen -eef  7roducts and on+/ &$= <ent for 7rice. :en thou2h -rand 7reference for Rich <as found to -e 83=> 1$= <anted an im7ro:ement on ua+it/ taste


(A77endi;). A+so> the forei2n -rand A+'*a-eer <as found to -e second most 7referred after Rich des7ite its much hi2her 7rice (A77endi;).. A++ of these facts and fi2ures indicate that <e ha:e an immense 7otentia+ to 2ra- a 2ood maret share from the first /ear.





P"ODU+ - P"I+IN#

A successfu+ -usiness strate2/ reuires considerin2 se:era+ dimensions to esta-+ish its com7etiti:e ad:anta2e. The ma0or success factor is hea:i+/ de7endent on its 7roduct and 7ricin2.

4remium ?rozen 9eef 4roducts is 7ositionin2 as more for more, offerin2

a :a+ue'added 7rice to its ua+it/ conscious consumers. Its -usiness inc+udes -oth 9&C and 9&9 customers <ho are <i++in2 to 7a/ com7arati:e+/ hi2her 7rice for more nutrition> assurance of ha+a+> taste and ua+it/. The maret sur:e/ sho<s that around 1$= <ant the current  7roducts in the maret to im7ro:e in ua+it/ and taste (A77endi;). A+so

mana2ers in 7oint'of'sa+es (A2ora> "esai> 4LS) a2reed that most consumers no< a da/s are <i++in2 to 7a/ more for ua+it/ 7roducts and therefore -ands +ie A+'*a-eer are in hu2e demand. 9ut the su7er stores fai+ to she+f these 7roducts at a++ times due to +ac of su77+/ for im7ort discre7ancies and therefore are ea2er+/ +ooin2 for +oca+ su-stitutes.

Most hote+s> fast food sho7s and u7to<n restaurants are stri:in2 to com7ete in this cutthroat maret -/ 7ro:idin2 menus that sometimes 7ut the taste'-uds to test.

Ta-+e -e+o< sho<s the 7roducts ran2e and 7ricin2 structure of 4remium ?rozen 9eef 4roducts.

Premium Product3 Pac*a,in, - Pricin, Product &(e @uantit&

, PieceC Pac 'olesale Price* "etail Price* addin, 10?G

S7ic/ Sausa2e &$3$ &8 8 3$6$

4e77er/ Sa+ami &$$ &6  %$


$$ & $$ $

?ier/ Meat 9a++s 3$$ $ %3 1$

Ara-ian "e+i2ht '*athi *e-a-3$$  $$ $ $ 8 63 8$ Ara-ian "e+i2ht 'Shami *e-a-3$$  $$ $ $ 8 63 8$ Ara-ian "e+i2ht 'Shish *e-a-3$$  $$ $ $ 8 63 8$ P"O)OION

The second most :ita+ dimension of success and sustaina-i+it/ in a com7etiti:e maret is a -usinessFs 7romotiona+ strate2/ as itFs the so+e medium to reach the customers and mae them a<are of the 7roduct> en2ra:e the -rand ima2e on their minds and 7osition itse+f in the maret. 4remium ?rozen 9eef 4roducts ha:e identified the fo++o<in2 too+s for  7romotion and their costin2.

Name Placement FreHuenc& +ostC 7

mont's * otal +ost * Ne=s(a(er 4rothom A+o ?ront 4a2e P  9ottom 7art 6 ; 8 3da/s a <ee. ?rida/> Saturda/ and Tuesda/. 8>6>$$$ "iscount &$= >%&>8$$

The "ai+/ Star 

?ront 4a2e P  9ottom 7art 6 ; 8 3da/s a <ee. ?rida/> Saturda/ and Tuesda/. 8>6>$$$ "iscount &$= >%&>8$$

Qanaanta ?ront 4a2e P  

9ottom 7art 6 ; &da/s a <ee. ?rida/> &8>8$$ "iscount % D 4 a 2 e


8 Tuesda/. &$= >>&$$ 4303>00 Leaflets 3>$$>$$$ units

3 taa 7er +eaf+et 3003000

)a,azines 9ac Co:er ee+/ 13503000

Sam(lin, At 7oint'of Sa+es>

Schoo+s> Uni:ersities> ?airs 353200 Bill/oard Gu+shan  73703000 e/ Site 7000 Source: eiai& -t+ 253003000

The 7romotiona+ costin2 initia++/ <i++ -e hi2h in order to intense+/  7romote 4remiumFs 9rand ima2e in the minds of the consumers and

create a<areness. Com7etitor inter:ie< sho<ed that the most effecti:e too+ is sam7+in2 and +eaf+ets and therefore consists of a ma0or 7art of the tota+ costin2. A+so> as it is a niche 7roduct so on+/ se+ecti:e ne<s7a7ers and ma2azines <i++ -e used for ad:ertisement.

The tota+ 7romotiona+ costin2 <i++ decrease in the fo++o<in2 /ears> as 4remium <i++ 2radua++/ esta-+ish its -rand and ima2e and <i++ continue further 7romotion to create a sustaina-+e a<areness amon2 its consumers.





The chosen form of o<nershi7 for the -usiness is 4artnershi7 <ith si; mem-ers> each <ith eua+ contri-ution to ca7ita+. The terms and conditions for the 4artnershi7 A2reement are discussed in the (A77endi;).

In 9an2+adesh> 4artnershi7 form of -usiness is most +ucrati:e and eas/ to esta-+ish due to minima+ 2o:ernmenta+ re2u+ations> f+e;i-i+it/ in terms and conditions and e;em7tion from cor7orate ta;ation.

4rocedure for 4artnershi7 9usiness set'u7 in the countr/ are as fo++o<s#

• Re2istration of 4artnershi7 on Stam7 4a7er for .


• Reuirement of Trade @icense from Cit/ Cor7oration -ased on

+ocation of -usiness.

• Certification from 9STI as ?ood Manufacturin2 -usiness <i++ not -e

reuired as 4remium <i++ not -e e;7ortin2 to forei2n countries as /et.  The 9usiness or2ano2ram sho<s a summar/ of the hierarch/ structure and the different de7artments in:o+:ed.

The resumes (A77endi;) sho< the ua+ifications of the administrati:e or mana2ement team in:o+:ed.








4remium ?rozen 9eef @td <i++ -e endo<ed <ith a state of the art infrastructure. The com7an/ <i++ inc+ude a modern and ad:anced

<arehousin2 faci+it/> inc+udin2 dee7 freezers> etc. <hich are as 7er +atest techno+o2/. This <i++ ena-+e 4remium to store a++ the food 7roducts in fresh conditions and in -u+> there-/ faci+itatin2 time+/ de+i:er/ at a++ times. An e;ce++ent net<or of su77+ier> trans7orters and distri-utor <i++ ena-+es it to function <e++ and meet the s7ecific reuirements of


consumers. The tota+ cost of faci+it/ set u7 <i++ -e T.$>$$>$$$ (A77endi;).


After much assessment a-out the +ocation of the faci+it/> it <as conc+uded that the most con:enient> feasi-+e and cost'effecti:e choice <i++ -e in Busuf2an0 in Ru72an0> ara/n2an0. The reasons are#

• The cost of lan  in that re2ion is com7arati:e+/ the +o<est and

therefore is at 7resent a +ucrati:e 7+ace for settin2 u7 factories. Rich (competitor presence) itse+f is 7resent in ara/an2an0. @and

measurin2 & -i2ha <i++ cost T.3>$$>$$$ (A77endi;).

• The +ocation is a+so nearer to the suppliers an resources> <hich are

most+/ +ocated in Chand7ur and its nei2h-orin2 re2ion> therefore a++o<in2 eas/ su77+/ routes to and from the source to the factor/. (A77endi;).

•  ara/an2an0 is a+so at c+ose 7ro;imit/ to the capital .mar)et/, and so

ensurin2 faster> +ess cost+/ (trans7ort) and easier de+i:er/ to the 7oint' of'sa+es and other customers.

• heaper  -ut more s)ille labor  for further meat 7rocessin2 are

a:ai+a-+e due to the 7resence of Rich. (A77endi;). La&out

@eadin2 o7erations mana2ement ha:e 7ro:ed that e/ to an efficient> time and cost sa:in2 manufacturin2 7rocess +ies in the faci+it/ +a/out and

the 7roduction 7rocess. ,ence> 4remium -e+ie:es in creatin2 a value

chain <ith interre+ated series of 7rocesses to 7roduce its different  7roducts a+on2 different 7roduction +ines. arious +a/out desi2ns <ere

formu+ated and the -est in terms of :a+ue creation ha:e -een se+ected due to its feasi-i+it/> efficienc/ and cost'effecti:eness usin2 com7etitor

faci+it/ ana+/sis and com7uterized heuristics. (A77endi;)



The faci+it/ <i++ incor7orate some of the most modern semi'automated machiner/ conformin2 to internationa+ standards for h/2iene and safet/> such as Sausa2e @inin2 machine (to automate the 7ortionin2 and

han2in2 7rocess at hi2h s7eed)> 4ee+er machine> S+icer machine (hi2h s7eed)> Meat 9a++ maer> Sa+ami Cutter> Mi;er> 9atter> Grinder and acuum 4aca2in2 Machine im7orted from China. The costin2 of these eui7ments <ere fi;ed <ith different se++ers and distri-utors on+ine In addition to the semi automated 7roduction +ine for meat 7rocessin2> the  7roduction house <i++ ho+d state of the art stora2e freezers> one <ith ' o

C for ra< materia+ and in2redient stora2e> second <ith ' o to '&&o C for

short term stora2e of finished 7roducts and a-o:e '$ oC for +on2 term

stora2e. The accumu+ated cost for a++ of the a-o:e mentioned eui7ment <i++ -e around T. crore. (A77endi;)


ith the -oom in the meat 7rocessin2 industr/> 2o:ernment is current+/ encoura2in2 its de:e+o7ment throu2h :arious further meat 7rocessin2  7ro2rams. Er2anizations +ie @IC are a+so contri-utin2 to <orer si++

de:e+o7ment -/ 7ro:idin2 courses and technica+ no<'ho<. This in turn are encoura2in2 more 7eo7+e to shift to the meat 7rocessin2 industr/ that ensures 0o- securit/> hi2her sa+ar/> hea+th and safet/ in addition to other frin2e -enefits +ie 7aid +ea:e> -onuses etc. @a-or and Mana2ement Sa+ar/ cost <i++ -e around T. >8$>$$$ and <i++ 2ro< steadi+/ (A77endi;).


?ood 7roducts or 7rocessed food 7roducts reuire hi2h ua+it/ standards in 7aca2in2> 7reser:ation> trans7ortation> etc. Understandin2 the fact> due attention to food 7rocurement> 7rocessin2> 7aca2in2> hand+in2 and  7reser:ation <i++ -e 7aid. :er/ effort <i++ -e made to maintain h/2ienic

am-iance> ri2ht from the -e2innin2 to the end of the food 7aca2in2  7rocess.The ua+it/ contro+ team of 4remium (Er2ano2ram ?i2. ) <i++

chec e:er/ 7roduct +ine -efore and after 7rocessin2. LI+ENSIN# - +E"IFI+AION


4remium ?rozen 9eef 4roduct @td. <i++ -e reuired to issue trademar under the com7an/ <hich <i++ cost T. 3$$$ (A77endi;). In addition there <i++ -e no need :arious certifications under 9STI (A77endi;). ALUE +9AIN )ANA#E)EN

Su((lier +'ain )ana,ement

9ein2 a Mus+im oriented countr/> consumers 7refer +oca++/ 7rocessed meat 7roducts or im7orts from Midd+e'ast to ensure itFs ha+a+ for consum7tion. Therefore 4remium ?rozen 9eef 4roducts <i++ source its su77+ies of ra< -eef materia+s +oca++/ throu2h contract farmers <i++ <ho <i++ recei:e $= share of 7rofit as <e++ as recei:e constant su7er:ision for ua+it/ contro+ and mana2in2 standard. In 7ara++e+> or2anizations +ie @IC <i++ he+7 them <ith technica+ no<'ho<> <hi+e 2o:ernment

su77ort (9an2+adesh Institute of ?armin2) and :arious GE across the countries can he+7 them <ith financia+ su77ort and catt+e -reedin2 no<+ed2e. ,ence> the choice of these su77+iers <i++ -e se+ecti:e>

focusin2 es7ecia++/ on +oca+ rura+ <omen (di:orced or sin2+e earner) <ho recei:e s7ecia+ aid from these de:e+o7ment or2anizations for catt+e

 -reedin2 and 7ou+tr/ farmin2 to encoura2e omen m7o<erment. This in turn <i++ he+7 these <omen -oth financia++/ <ith a consistent source of income as <e++ as he+7 maintain a more sustaina-+e> committed and

 7ro2ressi:e re+ationshi7 -et<een the su77+iers and 4remium.

The su77+iers <i++ -e concentrated from Chand7ur as the/ 7roduce the  -est and ua+it/ meat in the countr/. 4remium ?rozen 9eef <i++ a+so ha:e

a ?ood ins7ector <ho <i++ chec the ua+it/ of the meat su77+ied -/ :isitin2 these +oca+ su77+iers from time to time as <e++ as at the

 7roduction 7oint. It <i++ therefore 2uarantee consistent ua+it/ and +o/a+ chain of su77+iers. && D 4 a 2 e $= $= +ontractual Su((liers Premium Frozen Beef +onsumers Point:of:SalesC Business


The reuired meat 7ieces (chuns) <i++ -e de+i:ered to the faci+it/ -ase on a da/'to'da/ -asis -/ the su77+iers ensure freshness and reduce

trans7ort costs to each different su77+iers. Su77+iers <i++ in addition en0o/ additiona+ -enefit of se++in2 the rest of the 7ortions of the catt+e to the +oca+ maret at maru7s.

Deli%er& Process )ana,ement

After 7roduction and 7aca2in2> the ne;t most :ita+ ste7 is creatin2 and maintainin2 a ua+it/ > efficient and sustaina-+e de+i:er/ s/stem from the  7roduction faci+it/ <arehouse freezer (short term# ' to '&& oC and +on2

term# a-o:e '$ oC) in ara/an2an0 to the :arious 7oint'of'sa+es (A2ora>

 andan etc) and restaurants> hote+s and fast food sho7s around "haa Cit/. As each of these su7erstores is <e++ eui77ed <ith their o<n

Stora2e ?reezer ($ to '$oC) there <i++ -e no need for settin2 u7

additiona+ <arehouses in the cit/. The estimated cost of the freezer trucs <i++ -e T. >$$>$$$. (A77endi;).

ee+/ de+i:eries <i++ -e made to the :arious stores and food

sho7sJrestaurants dotted around the cit/ accordin2 to their indi:idua+ order 7+acements> :ia 4remium ?rozen 9eef 4roductsF o<n t<o Trans7ort ?reezers ( ' o to '& oC). This <i++ 2uarantee that 4remiumFs 7roducts

<i++ a+<a/s -e a:ai+a-+e at different out+ets of the su7erstores throu2hout the /ear un+ie most im7orted 7roducts +ie A+'*a-eer> "ou; etc. This consistenc/ in the se+f de+i:er/ 7rocess a+so <ors as an encoura2ement for su7erstores as the/ are re+ie:ed from one> fai+in2 to ser:e their

customer needs and t<o> from ha:in2 to tae the hass+e themse+:es to  -rin2 the 7roduct from the 7roducerJdistri-utor to their she+f (as in the

case of Afta- and other im7orted 7roducts ( Com7etitor inter:ie<). In addition the/ <i++ recei:e a $= share of 7rofit> i.e. the retai+ 7rice of the 7roducts <i++ ha:e a $= mar'u7 on 4remiumFs <ho+esa+e 7rice therefore a+so 7ro:idin2 them an incenti:e to she+:e the 7roducts and a+so encoura2e its sa+es. (A77endi;)

Time+/ de+i:er/ and ua+it/ 7roducts> com-ined <ith customer contentment are the 2oa+s 4remium <i++ stri:e for.



To ensure smooth o7erations of Maretin2 and "istri-ution Channe+ in the cit/> a head office <i++ -e +ocated in saton Garden measurin2 &$$s ft <hich <i++ cost T. &$>$$$ as rent. (A77endi;).






 Sales( e ha:e ca+cu+ated the maret :a+ue of frozen food <hich is T. %>&$$>$$$ in a /ear> <here our on+/ domestic com7etitor in frozen -eef RIC, has 8%= of the maret share. e are assumin2 to 2ra- $= of the maret <hen <e <i++ enter. hich means our st /ears se++s forecast is

(%>&$$>$$$$.)  T. &8>6$$>$$$

CO)S( ?rom our com7etitor sur:e/ <e came to no< that cost of 2oods so+d is around 6$= of the se++in2 7rice.

 Distribut!rs Margi( Eur distri-utors (e.2. A2ora) usua++/ 7ut $= mar2in on su77+iers 7rices. So if our 7roduct 7rice is T. $$ to consumers then distri-utors mar2in <ou+d -e T. 1. for that 7roduct. Ot#er !*eratig E+*eses( The/ are usua++/ 6= of the se++in2 7rice. (for our com7etitor) -ut <e ha:e assumed it to -e around 8= for us.

Ta+( As <e are in the a2ro'-ased industr/> for the first  /ears <e <i++ ha:e a ta; ,o+ida/. So <e do not need to 2i:e ta; for the first  /ears. (A77endi;)

 terest e+*eses( ?or a2ro'-ased industr/ 9an2+adesh 9an has a scheme <here 99 <i++ fund 1= of our in:estment at $= interest rate and no re7a/ment for 8 /ears. (A77endi;)

Pro:forma Income Statement Descri(tio


Bear  Bear&

L L& L3 L L L& L3 L

Sales %$$$


%8& %6163$ %1816 8&83$ 81$ 81%3&% 1&%&6

: +osts of ,oods sold &1$$$ $ $8% 6%%83 %1$1$ 1%$6$ %$$8 3$316 $36 #ross Profit &86$$$ $ &16%&$ 3$%8&& 313166 333%$ 338$$ 36613 3%$$61 & D 4 a 2 e


otal o(eratin, e$(ense

11%6 

&$33$ &$66&18 &$&6% %%%16 86&36 86%$ 818%63

EBI 86&3 131$.

$&&& $1$$ 36 6&%%$ 8$1&8 8$1&8

a$ and interest

$ $ $ $ $ $ $ $

Net Income 86&3 131$.

$&&& $1$$ 36 6&%%$ 8$1&8 8$1&8

Pro:forma Income Statement Descri(tio n Bear 3 Bear L L& L3 L L L& L3 L otal o(eratin, e$(enses 11866 6 11866 $33&$6  $%1 % &1 8 38  1%& $ &&$%& EBI %1&$ $

1%%$ 611&31 63%$ 66%&811 61&333 %8&%$ %&$3

Interest e$(ense

38316 6

31836 3&8&6 &8%8$% 811 6&& %88$$ 168$61

otal o(eratin, e$(ense

8$66 &

8316 8183&6 1%$6 &$3$& &$68& &&$88 &%66$&

EBI &$333$

&3&$ &&3$$ &3$%1 &318 &16$ &6683& &%166

a$ and interest

$ $ $ $ $ $ $ $

Net Income &$333$

&3&$ &&3$$ &3$%1 &318 &16$ &6683& &%166


e are 7+annin2 to increase our a++ t/7e of fi;ed assets as <e++ as current assets -ut neither -/ euit/ nor de-t financin2 -ut from our retained earnin2s. As <e ha:e to -u/ ne< assets so <e ha:e cash outf+o< from our retained earnin2s for financin2 these ne< assets. As <e do not ha:e an/ de-t or ta; o-+i2ation so our cash for financin2 acti:ities is zero throu2hout the  /ears.

Pro:forma +as' Flo= Statement

Bear3 Bear

L L& L3 L L L& L3 L

+as' flo=s from o(eratin, acti%ities;

&&1&66 &3$&$6 &$6 &$& &8833 &613$ &8$&8&$ &16&38

+as' flo=s from in%estment acti%ities; . 6 . 6 . 6 . 6 36$. % 36$. % 36$. % 36$.%

+as' flo=s from financin, acti%ities;

$ $ $ $ $ $ $ $




8$$ 81$1$ 181$ &$8%3&1 &$63& &6111 &&6638 &3%1%3%

Pro:forma +as' Flo= Statement

Bear Bear&

L L& L3 L L L& L3 L

+as' flo=s from o(eratin, acti%ities;

&68$ 616 &31& 3&38 %$$1 8&11% 1$1&8 113

+as' flo=s from in%estment acti%ities; $ $ $ $ 3$16&.  3$16&.  3$16&.  3$16&.

+as' flo=s from financin, acti%ities;

$ $ $ $ $ $ $ $



&68$ 616 &31& 3&38 % 113 6$36 688$


 -a( e are 7+annin2 to -ui+d our factor/ at Busuf2an0 in ara/an2an0. There 7rice of cor7orate area is T. $>$$$ 7er shotansho. e are  7+annin2 to -u/ & acre at ($$$$6$) T. 3>$$$>$$$.

Frige Tru/0( e ha:e met a dea+er <ho su77+ies frid2e trucs. The/ to+d us that 7rice of a frid2e truc is T. >$$>$$$

Fa/t!r1( e ha:e come to no< that a factor/ esta-+ishment cost is T. >$$$>$$$ <ithout eui7ments.

 Ma/#ieries( e are 7+annin2 to -u/ machines for our 7roduction <orth around T. $>$$$>$$$. 4rices of <hich <e ha:e co++ected from internet and attached in the A77endi;.

 vestmet( e are in:estin2 a++ of the 7re:ious uarters retained earnin2 in the ne;t uarter for a++o<in2 the continuous 2ro<th of our com7an/.

Pro:forma Balance S'eet

Bear  Bear & Bear 3 Bear 

+urrent Asset 3%&$%$ 311&88 183 &8$8

Net Fi$ed Asset %88$

$ 8&6% $ &$$8%& 3 &&&33&1 In%estment from retained


$318 61$6% %6& 88

otal Asset &%$$38

 &%8861 8 &1%166  36811&

+urrent Lia/ilities %181.6 18&6. $6$$ &$6


Lon, erm Loan 18$$$$$ 18$$$$$ 18$$$$$ 18$$$$$

O=ners EHuit& $&$$$$

$ $&$$$$ $ $&$$$$ $ $&$$$$$ "etained Earnin,s 31$81$ 66%$33 8%$66 $86

otal Lia/ilities and O=ners EHuit& &%$$38  &%8861 8 &1%166  36811& B"EA8:EEN ANAL!SIS

e ha:e considered first four /earsF time s7an for -rea e:en ana+/sis. The formu+a <e ha:e used for this ana+/sis is#

9rea :en in sa+es  ?i;ed Cost J Contri-ution Mar2in Ratio ?i;ed cost  9"T 8>%6>$$$

Contri-ution Mar2in ratio Tota+ contri-ution (Sa+es P aria-+e cost)J Sa+es

 &1>%%> J &>18>$&  $.1

9rea :en in sa+es  9"T 3454367

So> <e <i++ start main2 7rofit> after <e ha:e reached our sa+es amount of 9"T3454367.

And <e are e;7ectin2 to reach our -rea e:en in 266 /ears.


e need to in:est 9"T 8>%6>$$$ in our ?i;ed asset at the -e2innin2 of the -usiness at a time. As <e are 2ettin2 9"T &$>$$$>$$$ from euit/ and de-t financin2> so the rest 9"T >&3>$$$ <i++ remain in cash in case of emer2enc/ situations.

The assets and res7ecti:e amounts to in:est are#



As <e ha:e an in:estment of 9"T &$>$$$>$$$ of <hich euit/ financin2 = and de-t financin2 is 1=. And <e are e;7ectin2 to 7a/ the fu++

amount to our euit/ ho+ders as <e++ as de-t ho+ders in 22 /ears from

the da/ <e start our -usiness. SENSIII! ANAL!SIS

As ?rozen food has a maret 2ro<th of &8= (A77endi;) -ut for most +ie+/ situations <e ha:e used 2ro<th rate  =

Best +ase Scenario

e ha:e assumed our industr/ 2ro<th rate to -e 20? 7er /ear. Then <e

can achie:e our -rea e:en sa+es in e:en 3 /ears. Eur tota+ sa+e in on+/ 3

/ears is T. 1173>063455 and our -rea e:en sa+es amount is T.

135>537>1. And our tota+ et Income for these  /ears is T. 74356344. here our initia+ in:estment is on+/ T. 1>3653000.

&8 D 4 a 2 e  itial ivestmet  Categ!r1 C!st   1 Land 9"T 3>$$$>$$$ 2 Factor& 9"T >$$$>$$$ 7 )ac'inaries 9"T $>$$>$$$ 4 Frid,e ruc*  9"T >$$>$$$ 5 Air +onditioner 9"T 1>$$$

 Office furniture and stationar& 9"T %$>$$$

6 +om(uters 9"T $$>$$$


Pro:forma Income Statement Best case

Bear  Bear & Bear 3 Bear 

Sales 3$8%31

3%8%3 

>3>3&6 336&

: +osts of ,oods sold 81$3


&&%& 

&%>38>%16 33&$66%

#ross (rofit &3&61


1831 

8>&&>3$ &&3% total o(eratin, e$(enses 8&81%3 %8863 %>183>& 188%6

EBI $%%18 %8863 %>183>& 188%6

a$ or Interest e$(ense $ $ ' $

Net Income $%%18 %8863 %183&.$% 188%6

In the -est case <here <e are assumin2 to ha:e &$= 2ro<th rate our net cash inf+o< has decreased -/ around T. 3$>$$$ from T. &%>86>%3& to T. &%>$3>% for a++  /ears. This ma/ -e due to :er/ hi2h 2ro<th in fi;ed asset in our com7an/.

Pro:forma +as' Flo= Statement Best +ase

Bear  Bear & Bear 3 Bear 

+as' flo=s from o(eratin, acti%ities; 1%8&% 3 %1$%88 & $>$>6  &1&& +as' flo=s from in%estment

acti%ities; $


$ &>1&%>$$ 3>8&%>8&$ +as' flo=s from financin,

acti%ities; $ $ ' $ NE IN+"EASECDE+"EASE IN +AS9; 1%8&% 3 %338 & %>%%> 163$&.3 ,ere a+so <e ha:e assumed our 2ro<th rate to -e &$= and for that our retained earnin2s -ecomes on+/ T. &.1 mi++ion on+/ for the +ast uarter of the th  /ear <hereas our initia+ in:estment is a+so around T. 1

mi++ion. Eur in:entor/ is T. &. mi++ion.

Pro:forma Balance S'eet Best +ase

Bear  Bear & Bear 3 Bear 

+urrent Asset 6&61%1 &3% 666&81 %111

Net Fi$ed Asset %88$

$ 136$$ $ &&&1&$ $ &611&$ In%estment from retained 3$1$&$8 336 &368616 %$1&



otal Asset &1$68

% &8338 1 33&36  3&6&3

+urrent Lia/ilities 8&%%$.1 18%.& $1636 3363

Lon, erm Loan 18$$$$$ 18$$$$$ 18$$$$$ 18$$$$$

O=ners EHuit& $&$$$$

$ $&$$$$ $ $&$$$$ $ $&$$$$$

"etained Earnin,s $%%18 %$63 $&&1$$


&18868 otal Lia/ilities and O=ners EHuit& &1$68

% &8338 1 33&36  3&6&3 3$ D 4 a 2 e


orst +ase Scenario

e ha:e used our 2ro<th rate as $=> and found that <e can achie:e our  -rea e:en sa+es at the end of the th /ear. Eur tota+ sa+e in a++  /ears is T. 17>35>30> and our -rea e:en sa+es amount is T.102377730>.

And our tota+ et Income for these  /ears is T. 253403561 <here our

initia+ in:estment is T. 1>3653000.

Pro:forma Income Statement orst +ase

Bear  Bear & Bear 3 Bear 

Sales &161$8


3&%%&% &

36>%>1% 3113$$ : +osts of ,oods sold %8&1

& 16636  &>%$>18 &318&& #ross Profit 8%61  3$1$1 % >61>11$ 1%&6& otal o(eratin, e$(enses 8% %&8&3 %>$6%>81 %6%38

EBI 3%&863 18$1%3 %>$&> 8&1%8

a$ or Interest e$(ense $ $



Net Income 3%&863 18$1%3 %$&$. 8&1%8

In the <orst case <here <e are assumin2 to ha:e $= 2ro<th rate our net cash inf+o< has increased -/ around T. 6$>$$$ from T. &%>86>%3& to T. &8>3$>6% for a++  /ears. This ma/ -e due to +ess 2ro<th in fi;ed asset in our com7an/.

Pro-forma Cash Flow Statement (Worst Case)

Bear  Bear & Bear 3 Bear 

Cash flows from operating activities:

1%&8 3


& 8>1>& 1&8116%

Cash flows from investment

activities: $ 3$$$$$ 8%>6$ 61>$6 Cash flows from financing

activities: $ $ ' $ NET INCE!SE"#ECE!SE IN C!S$: 1%&8 3 6%%%8% & %>16>6$ 811$& ,ere a+so <e ha:e assumed our 2ro<th rate to -e $= and for that our retained earnin2s -ecomes on+/ T. 8.& mi++ion on+/ for the +ast uarter of


the th /ear <hereas our initia+ in:estment is a+so around T. 1 mi++ion.

Eur in:entor/ is on+/ T. . mi++ion.

Pro-forma %alance Sheet (Worst Case)

Bear  Bear & Bear 3 Bear 

C&rrent !sset %3$&$ &%$6 &&%.$8 318& Net Fi'e !sset %88$



$ %1%6$ 86%$&

Investment( from retaine

Earnings) $ 36& 63&% 6&&% Total !sset &186&$ &6866% &8&$3.$ &1%138

C&rrent ia*ilities %611%6.8 88%3.3 >$8>&1.3 &$& ong Term oan 18$$$$$ 18$$$$$ 18$$$$$ 18$$$$$ +wners E,&it $&$$$$$ $&$$$$$ $&$$$$$ $&$$$$$ etaine Earnings 3%&863 18$1%3 %$&$.3 &1%138 Total ia*ilities an +wners

E,&it &186& $ &6866 % &8&$3.$  &1%138 "IS8 ANAL!SIS "is* Factors Maret demand

 a co% isease: It is not 7rominent in our 7art of the <or+d> -ut <e ha:e to -e 7re7ared for such an out-rea. 9esides> 9an2+adesh ha:e a+read/ e;7erienced diseases such as -ird'f+u and s<ine f+u. Threat of an/ catt+e re+ated diseases <i++ shift the demand of consumers to su-stitute  7roducts +ie chicen and fish. As 4remiumFs so+e 7roduct +ine is -eef

oriented> so it <i++ strie as a hu2e -+o< to the com7an/. Su77+/


 "all in local cattle meat suppliers: If su77+iers of 4remium shift to rearin2 of other farm anima+s +ie chicen and 2oat due to +o<er rearin2 and mana2in2 cost and hi2her mar u7s> 4reimium <i++ suffer from ra< materia+ shorta2e.

conomic factors

 $ncrease in inflation an fall in stanar of livin': ConsumersF fa++ in  7urchasin2 7o<er <i++ come as a threat as 4remium is offerin2 hi2her

:a+ue added 7rices <hich <i++ then -ecome e;7ensi:e for a si2nificant se2ment of consumers.

4otentia+ com7etitors

 Ne% entrants: Current com7etitors <ho are s7ecia+izin2 in chicen  7roducts on+/ +ie Afta- ma/ a+so introduce -eef in their 7roduct +ine and there-/ -ecome a dominant com7etitor. Ether ne< entrants due to  7otentia+ of the industr/ ma/ a+so come as a hu2e threat and +oss maret

se2ment. E$it Plan

Assessin2 a++ the different o7tions and conditions a:ai+a-+e> <e ha:e decided to 2o for Mer2er as our e;it 7+an. The com7etiti:e ad:anta2es o:er the e;istin2 com7etitors are our ne< 7roduct +ine introduction of e-a-s (+oca++/ 7roduced and mareted for the first time). In addition> the distri-ution channe+ and 7rocess are effecti:e and structured.

Throu2h mer2er the com7etitors <ou+d -e -enefitted -/#

• An a+read/ esta-+ished and fortified distri-ution channe+. The/ <i++ -e

a-+e to ca7ture a ne< se2ment in the maret.

• The/ <i++ 2ain additiona+ 7roduction faci+it/> stora2e freezers>

<arehouse> de+i:er/ trucs> etc. This <i++ aid them to 2o for e;7ansion> increase their mar2ina+ 7roduction and +o<er mar2ina+ cost.

The mer2er <ou+d -enefit us -/#

• e <i++ 2et an o<nershi7 share of the sustaina-+e com7an/.

• In case of sa+e> -u/out> or +iuidation of asset <e <i++ ha:e to

immediate+/ e;it the maret. 9ut throu2h mer2er <e <i++ remain in


the maret and o7erate under a more sustaina-+e com7an/ and en0o/in2 their 7rofits.

• These added com7etiti:e ad:anta2es <i++ a++o< them to earn hi2her

 7rofits and increase o<nershi7 :a+ue <hich <i++ a+so -e shared -/ us. :en thou2h <e <i++ not recei:e immediate cash -ut the cash inf+o< o:er the future time 7eriod <i++ he+7 us 2et our return on in:estment. @ater -/ se++in2 that o<nershi7 <e <i++ a+so earn hi2her return than other o7tions.


4remium <i++ -e a-+e to reach -rea'e:en at the end of the third /ear. Therefore futire 7+ans for e;7ansion inc+ude e;7ort at the end of the

fourth /ear or at the -e2innin2 of the fifth /ear. e ha:e 7ro0ected that at the end of the fourth /ear <e <ou+d -e a-+e to ha:e retained earnin2s of a-out T$. mi++ion. This <ou+d ena-+e us to enhance our 7roduct +ine and certif/ our 7roduct officia++/ under ,ACC4 and ISE> 9STI . 9esides> 4remium <i++ a+so tr/ to esta-+ish itse+f as an e;7ort -ased com7an/ ee7in2 in mind that it does not sacrifice the +oca+ needs. Moreo:er> 4remiumFs strate2/ <ou+d -e to thin 2+o-a++/ and act +oca++/. The main focus for e;7ort <i++ -e in the midd+e'east countries since it is a hu2e maret for frozen foods. In:estment in the frozen food sector <ith ne< techno+o2/ and eui7ment has :ast 7otentia+ for 2ro<th <ith incredi-+e o77ortunities in 9an2+adesh itse+f as <e++ as e;7ortin2 in Midd+e ast> U> orth America and the far eastern countries.



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