Business plan for "Kenakata

Assignment on Business plan
for “Kenakata”
-A retail superstore
3/31/2014 A study under the Principles of management
To introduce a new era of business module in Bangladesh, we are people of
two members are going to establish a superstore named “Kenakata”, A
unique, universal, and versatile sales floor.

A Business plan for “Kenakata” - A retail super store
Page 1
ASSIGNMENT ON PRINCIPLES OF MANAGEMENT
Course: MGT – 101
Topic: Business plan for “Kenakata” a retail super store
Prepared for:
Prof. Nargis Akhter, Ph.D
Department of Business administration
East West University Prepared By:
Abdulla Md. Masum Chowdhury
ID: 2008-3-13-028
Fatima Imrose
ID: 2013-3-10-025
Group: 13
Section: 02
Date of Submission: 31st
March, 2014

Page 2
Letter of Transmittal
31st
March, 2014
Prof. Nargis akhter, Ph.D
Department of Business Administration
East West University
Plot A/2, Aftabnagar, Dhaka-1212
Subject: Submission on assignment about a Business plan
Dear Madam,
It is of great honor and delight to us to present you our assignment prepared as a part of the MGT
(101). We tried to gather information to make our assignment fruitful and unique. Our study of
preparing a complete business plan helped us know about a lot of information regarding business
start up and its planning.
We came to learn various plants of organizational structure, planning, situational analysis,
marketing strategies, financial analysis etc. that would help us further.
If you need additional research or assistance in the overview of our plan, please ask us.
Thanking you,
……………………………
Abdulla Md. Masum Chowdhury
2008-3-13-028
……………………………
Fatima Imrose
ID: 2013-3-10-025

Page 3
1.1BUSINESS PLAN FOR “KENAKATA”:
To introduce a new era of business module in Bangladesh, we are people of four members are going
to establish a superstore named “Kenakata”, a unique, universal, and versatile sales floor. It generally
provides almost every kind of consumer goods. To make it successful we have chosen both
developed and developing region of Dhaka city to inaugurate one outlet initially. Our form of
organization will be general partnership.
Companies Address:
Kenakata, Masum Centre
107, Gulshan Avanue, Gulshan – 2, Dhaka 1212
Phone: [+8802435678], Fax: [+88024578932]
Mail: Kenakata@kenakata.com
Web: www.kenakata.com

Page 4
1.2 EXECUTIVE SUMMARY:
To introduce a new era of business module in Bangladesh, we are people of two members are going
to establish a superstore named “Kenakata”, a unique, universal, and versatile sales floor. It generally
provides almost every kind of consumer goods. To make it successful we have chosen both
developed and developing region of Dhaka city to inaugurate one outlet initially. Our form of
organization will be general partnership.
Since we will general partnership we ourselves will serve every kind of management functions.
Besides we are highly experienced and linked with various financial organizations which will help us
getting loan and monetary backup. We have a few other strengths which are more enough to drive
our weakness. Moreover, we have corporate lobbing so that we can acquire strategic and competitive
advantage.
On the other hand we have a value proposition a shops where “Everything at your side”. So that
customers can purchase products in friendly environment at a lower price, never be come in mind I
am in shopping. We will not only sell quality products and services but also values and trust. Thus
we would like to capture 25% market share within 2 years.
We consider some of our basic characteristics as a criterion of becoming successful in the market
environment.
 We are the first store where almost all kinds of variety goods are available.
 E-marketing systems
 Competent, developed, friendly, devoted, and committed employees.
 Strategies partner with various institutions, society, club, Banks and insurance companies.
 Offer smart card and home delivery.
We shall require 90 crore taka as our total cost of business set up.

Page 5
TABLE OF CONTENT:
Part 1 | Introduction
1.1 Introduction business plan for “Kenakata” 3
1.2 Executive summary 4
Part 2 | the operational and organizational plan
2.1 Summary, mission, Vision 7
2.2 Business model and strategy 8
2.3 SWOT analysis 9-10
2.4 Product and services 11-12
2.5 Intellectual property, location and legal structure 13
2.6 Management process and list of owner and management 14
2.7 performance management of “kenakata” 15
Part 3| the marketing plan 16-19
3.1 BCG matrix 16
3.2 Marketing analysis, Strategy 16-17
3.3 Method of sales and distribution and advertising strategy 18-19
Part 4|start up expense and capitalization 20
Part 5| the financial plan 21-28

Page 6
Part 6| conclusion and bibliography: 29

Page 7
PART TWO: THE OPERATIONAL AND ORGANIZATIONAL PLAN
2.1 A summary of description of business:
Our business is established mainly to provide consumer goods and services to people in more
comfortable way where they will be able to collect their any kinds of necessities with the assurance
of quality and standard in an environment friendly manner.
We are following partnership business module which will be started officially from 1st
January,
2014.
Mission: (Short term goal)
We sell goods with minimum cost in friendly environment.
Vision: (Long term goal)
To establish a market environment where customer will get quality products and services at a
reasonable price in an environment friendly manner

Page 8
Business model:
Suppliers Production house
Via representative after processing
Super store Super store
Online and offline sales personnel off and online sales
Customers
Strategy:
 Short terms objectives: within two years we want to capture 25% customer purchasing from
our superstore providing product at competitively cheaper price.
 Long term objectives: We want to establish our own agro based firm, agro based product,
from our own manufacturing firm so that we can meet our commitment at reasonable price
and high quality which all can move forward to the ultimate objective to be market leader in
this sectors.

Page 9
Strategic relationships:
 We have current strategic relationship with standard chartered Bank, HSBC, Brac Bank, AB
bank, Prime bank, DBBL (Including 3% discount of credit card holder). Recently we extend
our strategic relationship with Icon privileged card holder.
 Star customer of Grameen phone can enjoy of 2% discount rate in any product or service.
 Tazan agro firms supplies at low cost as we regularly receiving supply from them.
2.3 SWOT analysis:
Strengths:
 We offer multiple category of product line and wide range of variety.
 We have enough source to supply
 We offer at friendly environment
 Children corner are available with multiple amusement items.
 E- marketing and home delivery
 Skilled and committed employee
 Every kinds of consumer items in a floor

Page 10
Weakness:
 Unfamiliar concept in our country
 Many alternatives are exists
 Comparatively high cost
Opportunities:
 Unavailability of super shop.
 New generation habituated to purchase anything from super shop rather from usual bazaar.
 Change in life style
 Increase number of outlets in potential areas
 Good profit professionals
Threats:
 Political Instability
 Financial instability
 Transportation problem
 Power shortage that increase our cost
 Established local market

Page 11
2.4 Product or services:
Sources:
 Suppliers
 Own firms
 Farmers
Types of product or services:
Our store feature wide, clean, brightly-lit, and shelves stocked with a variety of quality, value price
general merchandise, including:
1. Family apparel
2. Healthy and beauty aids
3. Electronics
4. Toys
5. Lawn and garden items
6. Jewelry
7. Automotive products
8. Home furnishing
9. Hardware
10. Sporting goods
11. Pet supplies
12. House ware

Page 12
13. Groceries:
a. Bakery goods
b. Meat and dairy products
c. Beverage
d. Frozen foods
e. Canned and packed foods
f. Condiments and spices
g. Household supplies
14. Service items:
a. Branded fast food
b. Photo centre
c. Sports and fitness
d. Pharmacy
15. Market side offerings:
a. Daily delivers of fresh procedure, meats and flower for “ Guaranteed freshness”
b. More than “300 natural and organic products” throughout entire floor
c. An assortment of “Hot foods” like pizzas, roasted chicken, soups and bread that are
fresh out of our oven.

Page 13
2.5 Intellectual property:
 We have our logo of “Kenakata” which is our special
trademark and it will differentiate us from others. Our strategies
and intellectual designs are also important that would not copy. In this regard, we will have
copyrights on these facts. We have introduced unique ideas which also cannot be copied by
others.
 We will make registrations according to the rules of law with supporting documents for the
above mentioned intellectual properties.
2.6 Location:
Location and projected costs of our organization are given as following:
S.L Particulars Address Projected cost
1 Corporate office Kenakata, Masum Centre 107, Gulshan
Avanue, Gulshan – 2, Dhaka 1212
20,00,000
2 Outlet 1 103 Banani, Road-11, Dhaka-1213 28,00,000
2.7 Legal structure:
We have formed our business as a partnership in accordance with the “partnership act 1932”. We
have selected general partnership criteria as our under partnership certification. Because it has
following advantages:
Advantages of General partnership business:
1. Shared financial commitment
2. Resources, expertise and strength can be pooled
3. There are limited started up cost
4. There are few formalities in such kind of partnership and simple inexpensive to operate.

Page 14
List of owners and corporate officers:
S.L Name Designation
1 Abdulla Md. Masum Chowdhury Owner (BOD)
2 Fatima Imrose Owner (BOD)
3 Sakib hossain Head of the operation (BOD)
4 Anwar kabir HR manager
5 S.M. Raian alam Head of procurement
6 Antu Paul Head of Marketing
7 Rossy Khan Store manager
Management Process of “Kenakata”:
Fig: Management process in Kenakata retail super shop

Page 15
PERFORMANCE MANAGEMENT OF “KENAKATA”:
Employees and branches:
In an outlets there are 35-40 employees working together. Operational manager, supervisor, sales
persons are mainly operated in our business. The Kenakata’s outlets will be launch in over the Dhaka
cities.
Reward system:
Two types of reward system are exists in our Kenakata’s. We selected employee of the month and
employee of the year. The person who is selected “employee of the month” he or she got 2000tk and
a certificate and persons who will be selected for “employee of the year” he or she got 10,000tk and
a certificate.
A sales person can be able to this reward if he or she has some quality and activities of
o Maintenance
o Cleanness
o Hospitality
o Accuracy
o Product knowledge
o Speed of services
Periodical training, motivation and evaluation:
We arranging weekly monthly and yearly training program for motivating their employees so that
employee know each other for solving conflict and build better understanding. If any employee
breaks their rules they have taken action according to their code of action.
We are going to establish a brand image where a consumer can purchase lots of things in a suitable
environment. Product quality, cleanness, speed of service and product availability is their first
priority. This quality can differentiate us from other competitors.

Page 16
PART THREE: THE MARKETING PLAN
3.1 Overview of goals of marketing strategy:
We want to provide product to customers at reasonable price so that we can reach goal to establish a
market environment where consumers will enjoy low cost product without sacrificing quality so that
we can reach our ultimate goals of becoming market leader.
Portfolio analysis:
1. Star: We have identified our Banani branch as star with high growth and high market share.
In this year upcoming Gulshan , Bashundhara, Uttara branches will be counted as star
position.
2. Cash cow: Our Khilgoan and Nikunja upcoming branches will be counted as cash cow with
low growth and high share.
3. Question mark: Our Dhanmondi, Maghbazar upcoming branches will be considered as
question mark with low market share and high market growth.
4. Dog: Our Sylhet and Chittagonj upcoming branches will be considered as Dog because of
low growth as well as low market share.
3.2 Market analysis:
Target market:
1. Age: Under 6, 6-11, 12-19, 20-34, 35-49, 50-64 and 65+
2. Occupation: Professional, officials, proprietors, students, service holder, homemakers,
unemployed.
3. Social class: lower –Upper, Uppers- uppers, working class, middle class, upper middle class.

Page 17
Competition:
Competitor: Agora, Meena bazaar, PQS, Nondan, Shwapno,
Strength and weakness:
One of above competitors Agora’s strength and weakness are given below:
Agora:
 Strength: Brand image, efficient website
 Weakness: Shortage of branch, lack of varieties, inefficient of collection booth.
Market trends:
1. Western
2. Expecting quality product with less price
3. Tendency to save time
4. Hassle free shopping
3.3 Marketing strategy:
General description:
We want to invest 30% money in this year and 25% of money in the 2nd
year for promotional
activities.
Year particulars Amount (Millions of taka) percentage %
1st
Online 40.5 Millions 15%
Offline 229.5M 85%
2nd
Online 27M 12%
Offline 198M 88%

Page 18
Method of sales and distribution:
We want to sell our products by storing our own retail which is located in different divisional areas.
We would like to store imported and finished product in our warehouse. We will distribute our
product by mobile, internet and website.
Packaging:
We will introduce four types of packages for our different levels of customers which are
environment friendly:
Children: We will introduce new shopping bag for children with cartoony and colorful design.
Women: For women we have introduced special bags with some tips of cooking
Men: some beauty tips for men included in the bag for men
Pricing:
We are following cost leadership strategy for capture 25% share from Agora and Nondan. We want
to create competitive advantages by reducing cost of supply, distribution.
Branding:
Today branding has become so important that there is hardly anything that has no brand identity. We
believe the name of our business “Kenakata” is a unique identity, people can easily recall our brand
name so that potential customer will attract as well as turn in to our loyal customer.
Data base marketing:
Each and every marketing transaction will be recorded in our automatic database system. From this
system we can easily understand our customers purchasing trends in different products.

Page 19
Advertising strategy:
Various types of advertising can be given in order to promote our product to both potential
customers:
Traditional media: TV, Newspaper, article, Billboard, journal etc.
Modern media: Blogs, Facebook, Cell bazaars
Public relation:
Events: Sponsorship social awareness program like cleaning volunteer program, antidrug, ant dowry
program
Smart card: Offer smart card to the loyal customers.
3.4 Customer service:
1. Arranging products in a discipline way
2. Offering huge number of trolley
3. Giving tag which involved price, date of purchasing
4. Opening more than four of collection booth to minimize queue line
5. Opening complaining box
6. Automated direction system
7. Providing after sales services in special cases

Page 20
PART FOUR: START UP EXPENSES AND CAPITALIZATION
Before introducing our business plan there must be cost incurred, these amounts considered as start
up expense. These are:
Particulars Value
Legal 0.80 Crore
Brochure, logo, leaflet 0.05 Crore
Consultant Interior design 5 Crore
Deal with suppliers 1 Crore
Bank deposit 7 Crore
Insurance 4 Crore
Advance 7 Crore
Facility Improvement 3 crore
Electronic machinery 2 crore
Total 29.85 Crore

Page 21
PART FIVE: FINACIAL PLAN
Summary of Financial Needs:
There are various financial needs related and summary of which is given below:
1. We will take loan for initial casts like opening branches, improving our marketing database
system, implementing distributing activities, making promotional activates, improving
customer services, and operating activities and most importantly for investment for our
business.
2. We need 900 million tk. For the initial year. We will from this amount from phoenix finance,
IDLC, Lanka bangle finance.
Loan fund dispersal statement:
 For opening outlet: 435 million Tk
 Improving our marketing database system: 21 Million Tk
 Improving promotional activities: 150 Million Tk.
 Investment for various activities: 150 Million Tk

Page 22
Pro forma cash flow statement:
Projected cash flow statement for three years is given below:
Particulars Year 1 Year 2 Year 3
Cash receive
Cash from operation
Cash sales 1304 135 1428
Subtotal cash from
operation
1304 1357 1428
Additional cash receive
Sales tax, vat, 0 0 0
New current borrowing 5 0 0
New other liabilities 0 0 0
New long term liabilities 50 0 0
Sales of other current
assets
0 0 0
Sales of long term assets 0 0 0
New investment receive 54 0 0
Subtotal cash receive 1413 1357 1428
Expenditure Year 1 Year 2 Year 3

Page 23
Expenditure from
operation
Cash spending 111 125 130
Bill payments 1156 1190 1233
Subtotal Spends on
operation
1267 1361 1363
Additional cash spend
Sales, tax, vat 0 0 0
Principal payment 0 7 15
Other liabilities and
payment
0 0 0
Long term principal
repayment
0 5 10
Purchase other current
assets
0 0 0
Purchase other long term
asset
0 0 0
Dividends 0 0 0
Subtotal cash payments 1267 1328 1388
Net Cash flow
Cash Balance
145
179
29
208
40
248

Page 24
Pro forma Income statement:
Income projection for three years is given below:
Sales 1304 1357 1428
Direct cost of sales 1004 1031 1071
Other cost of goods 0 0 0
Gross margin 299 325 357
Gross margin % 23% 24% 25%
Expenses
Payroll 111 125 130
Sales and other
marketing expenses
36 15 15
Depreciation 0 0 0
Leased equipment 0 0 0
Rent 60 65 68
Utilities 3 4 4
Insurance 7 7 7
Payroll taxes 17 18 19
Other 15 10 10
Total operating
Expenses
249 245 254

Page 25
Profit before interest
and taxes
50 80 102
EBITDA 50 80 102
Interest expenses 13 13 12
Taxes Incurred 10 19 27
Net Profit 25 46 63
Net profit / sales 1.95% 3.42% 4.43%

Page 26
Pro forma Balance sheet statement:
Projected balance sheet for three years
Assets
Current assets
Cash 179 208 248
Inventory 122 97 102
Other current asset 8 8 8
Total current asset 309 313 358
Long term asset
Long term asset 8 8 8
Accumulated
Depreciation
0 0 0
Total Long Term Asset 8 8 8
Total asset 325 329 374
Liabilities and capital Year 1 Year 2 Year 3
Accounts payable 96 25 101
Current liabilities 20 13 (2)
Other current liabilities 10 10 10
Subtotal current liabilities 126 118 109

Page 27
Long term Liabilities 125 20 10
Total liabilities 251 186 228
Paidin Capital 37 124 24
Retain earning (112) (86) (40)
Total capital 124 83 146
Total liabilities and
capital
325 329 374
Net worth 37 83 146

Page 28
Break even analysis:
Break even analysis is a management control device that approximates how much you must sell in
order to convert your costs with no profit and no loss. Profit comes after break even.
Profit depends on sales volume selling price and costs. Break even analysis helps you estimate what
a change in on more of those factors will do to your profits.
To figure it out, fixed cost like rent must be separated from the variable cost by the cost of goods
sold.
Break even analysis:
We will have average monthly sales of 4 crore taka which intern will give a profit 30%. On the sales
deducting COGS, taxes and other cost that is 2 crore taka monthly.
So the breakeven point will be: fixed cost / (sales – variable cost)
= 535700000 / (480000000 – 321000000)
= 14 months that means 1 year 2 months

Page 29
PART SIX:
CONCLUSION:
“Kenakata retail store” offer to sell different kind of product at a time. When customers are in our
outlet s/he never feels he or she in the shopping because of unique environment. This concept is
totally new. By proactively purchasing Quality & Safe Current's products, customers are able to
protect against loss and damage. Our strategy will be like as the Wal-marts, Always low price; but
we also add quality. We will use several forms of communication for marketing.
BIBLIOGRAPHY:
www.Google com
www.walmart.com
www.yahoo.com
Introduction to business by skinner
Principle of marketing by phillip kotler
Principle of accounting by Kieso and kimmel

Business plan for "Kenakata

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