Introduction

JSFI Plastics

House 11, Road 3, Sector 4, Uttara Dhaka

02-9855302 www.jsfipbd.org info@jsfipbd.org

Co-owners: Towfiq Hasan, M. Imran Kamal, Selim Imtiaz, Fayez Uddin Ahmed

Description of Business:

The Business will supply the Transcom Beverage industry with the plastic bottles in

different sizes where presently it is buying their bottles in BDT 2-8 but we will be able to

reduce the cost up to 50%. Also it will act as a social responsible activity for that

organization. The first one is, as the plastic is harmful for the environment, we are

removing the plastics from the environment daily by a huge quantity of street children.

Second it will facilitate the street children with evening educational system.

Financing:

Initial finance requested is a BDT 10,000,000 from the organization to run the project.

This will cover the project’s office space, office equipments and supplies, project

inventories and education providing spaces.

This report is confidential and is the property of the co-owners listed above. It is
intended for use only the persons to whom it is transmitted, and any reproduction or

1
divulgence of any of its contents without the prior written consent of the company is
prohibited.

Executive Summary

We will supply the Transcom the plastic bottles in different sizes where presently it is
buying their bottles in BDT 2-8 but we will be able to reduce the cost up to 50%. The
first one is, as the plastic is harmful for the environment, we are removing the plastics
from the environment daily by a huge quantity of street children.

The customers of the plastic industry are scattered due to lack well known brand
names. So for us households whom we are selling plastic goods and companies who
are getting raw materials for packaging are direct customers (PET bottles).

In plastic manufacturing market there is no specific brand name is existing so the

market is flooded by small companies which are in this business.

The owners of JSFI plastics are Mr Imran Kamal ( expert in International business ans
HRM), Mr Towfiq Hasan ( expert in HRM) , Mr Fayez Uddin Ahmed ( expert in
Marketing) and Mr Selim Imtiaz ( expert in Marketing, have a little inner dream to take
big part in this industry in Bangladesh.

Facility is divided in two parts

• Recycling and Production unit

• Warehouse

The raw material contains post consumer beverage bottles and other plastic materials.
On unit will recycle and produce PVC plastic and other will perform the same for the
PET plastic.

2
The recycled PVC is then moved for the plastic injection molding unit in the various
shapes. The recycled PET flake is then heated and made the viscous solution of it.
Those products which further need for processing like buckets, the handle will be
inserted after the bucket is dried.

Stages of Recycling and Production

The process of recycling of waste plastics into products of varying usefulness involves
the following essential steps:

• Sizing / Chipping

• Cleaning

• Segregation.

• Agglomerating / Coloring

• Extrusion / Palletisation

• Fabrication into end Product.

Marketing plan

It’s a B2B service and the company will maintain a formal agreement with the
customers.

The communication department will contact and will maintain liaison with the customers

We will have a distribution center in the Dhaka city which continuously maintains the
supply of goods. So the products will be sold through the company warehouse.

The strategy of sales effort will be to convert potential and first time customers into long
term customers. To market the products, the Company will use a number of sales

3
agents/brokers. Of course, they will expand that to new customers when product is
available.

If the Company grows faster than its prime customer base, additional capacity may be
developed. There is a continuing strong demand for flake and extruded products made
from recycled PET.

Our future development strategy will focus on to chart out a careful plan for the future
expansion and growth of our business. We have a development strategy to expand our
facility size in order to meet the production size.

Industry Analysis

In a research it is seen that the usage of plastic bottles per day in Bangladesh is over
1.5 million. Twenty percent of those bottles are used for the house hold purposes and
rests eighty percent of the plastics are recycled for use again. Therefore we can say
that, the recycled plastic industry can be a very prospective business in the modern
business world. As, the beverage industry is making a milestone in Bangladesh and
holding a significant field in the corporate world in this country so we the JSFI firm
offering the Transcom such a business plan where this company can perform the
Corporate Social Responsibility and also reduce their production cost.

We the JSFI are the firm who are working as an outsourcing firm for the beverage
industry. Our main business is to supply plastic items to different beverage industries
but we are coming up with an idea where the both CSR and cost reduction activities can
be performed. We will supply the Transcom the plastic bottles in different sizes where
presently it is buying their bottles in BDT 2-8 but we will be able to reduce the cost up to
50%. We will organize the street children who collect the wastes and would ask them to
collect them the all plastic bottles that is thrown by the public and supply those to us.
For every thousand bottles that they are supplying us they will be able to be a student in
our educational project that will be run in every evening in their own area. To attract
them towards the evening school we will provide them Tiffin’s with a PEPSI costs eight
taka for the company and a biscuits packet that costs one taka for the company. By
doing so, the bottle price will come down to twenty five percent of the previous cost as

4
the raw materials are already available and also the company will be able to purchase
the bottles up to a fifty percent of the previous cost. Also two of the company’s CSR
activities will be performed by doing so. The first one is, as the plastic is harmful for the
environment, we are removing the plastics from the environment daily by a huge
quantity of street children. Second, as most of the street children are illiterate and can
not effort to study so we are offering them a huge scope to develop themselves.

Bangladesh Plastic Sector at a Glance

5
Domestic Market Size Approx. USD 714 million

Per Capita Plastic Consumption Around 2 4 kg / year

Export Earnings USD 30 million direct export & USD 110

export
million deemed

Deemed Export: RMG Plastic industry earns more than 10% of

Accessories its earnings from RMG export

Manufacturing Units At present about 3,000 small, medium

and
large plastic manufacturing units
operate across the country

Recycling 300 small units are there around Dhaka

city which recycle about 138 tons/day

Growth The industry expanded its fixed assets,

employment, and output by over 20%
per annum during the 1990s.

Employment About ½milion workers are directly and

indirectly employed in the sector. A
total of about 2 million people depend
on the industry.

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PEST Analysis

Political Analysis: As we are offering a sound social responsibility activity; no political

factor will be an obstacle for our company operation.

Economic Analysis: We are helping the organization to avail a good economic

advantage and also due to the country’s economy are not that much good, so the street

7
children will be a good source to collect the raw materials, as they are always thirst for
the cold beverage.

Societal Analysis: We are fully committed towards the society and helping the society
itself. Therefore, we expect a great support from the society.

Technology Analysis: We are going to utilize the new technologies totally.

8
Porters Analysis

The new
entranc
e

Bargainin
Bargaining g power of
power of Rivalry the
the buyers
suppliers

Substitut
e

9
There is a scope for the buyers to bargain with us but that is small in amount as we are
already offering them a huge idea and service and also offering them the bottles at a
cheaper price.

Bargaining power of the suppliers will be next to zero as mainly the street children are
our supplier and we are offering them already a huge facility.

Currently there is no rival in this industry

The substitute option for the company is to go for the previous supplier but there the
cost will be double.

We are aware about the new entry but always ready to face them by changing the
strategy as we have alternative strategies.

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Abell’s Framework

Any beverage company that needs plastic bottles for their beverage is our customers.

Cost reduction and profit maximization is their ultimate need.

By providing them plastic bottles in a cheaper price and services that help them to
perform the CSR activities we can fulfill their needs to some extent.

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SWOT Analysis

Strengths:

Good workforce

Strong communication with the suppliers

Already established plastic bottle factory

Weakness:

Insufficient network to operate in the all 68 districts in initial stage

Lack of transport system to collect raw materials from all over the country

Opportunity:

First in the market

No rivals in the industry

Expecting support form the society

Expecting support from the beverage industry

A huge market with full of opportunity.

Absence of standard product and service

Well connected with other rural areas

Having good transportation facility

Threats:

No knowledge about the feedback from the street children

Possibilities of new entries

Organizations may not be supportive

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Structure of the Plastic Industry

The following pattern is likely to be general but there will be some variation from country
to country.

Raw Material Producers

These are chemical and petroleum companies who produce "virgin" plastic (sometimes
called resin or polymer) in huge quantities. The main influence they have on the recycler
is to fix prices and availability of virgin materials. Virgin material is delivered in powder
or pellet form, in plastic or paper sacks of around 20 kilos weight, in large cardboard
drums that hold many times that quantity or even by road tanker.

Compounders

These specialist companies, usually small, stock various polymers and provide the
manufacturers of plastic goods with technical advice and the most suitable materials or
mixtures for each individual need. The compounder is often the best market for the
recycler because he possesses superior technical knowledge and has a large volume
throughput of virgin material, in which small percentages of reclaim will reduce cost
without seriously affecting the quality required by the molder.

Stockiest

These warehouses stock polymers and compounds but neither manufacture

themselves, nor provide a compounding service. They may be agents or subsidiaries of
the producer companies or departments of companies concerned with the supply of
other materials such as chemical, rubber or paper. They may be willing to stock reclaim
alongside virgin materials, especially if these are in short supply.

Specialist Manufacturers or Molders

These buy their raw materials from compounders. If they do their own compounding, or
if the material is used as produced and does not need compounding, they may buy
direct from stockiest or producers. They are specialists in plastics and do not perform
other types of manufacturing. They may be an attractive market to the recycler because

13
they operate at high volume, but rarely have as much flexibility to vary product quality
as molders who know, accurately, the final market for the product.

Other Manufacturers

Many companies are not plastics specialists but employ molding operations in the
manufacture of some other product. For example shoe and boot makers use plastics
extensively and may carry out the various plastics molding operations in the same
production sequence as the work in leather, canvas, rubber etc. Many manufacturers
use plastic packaging machinery at the end of a production operation.

Fabricators

These firms cut and join sheet, rod or extrusion to manufacture a variety of products.
They have no opportunity to use reclaim. Machinery and Tool Makers one other sector
of the plastics industry justifies mention although not customers for reclaim. The makers
and suppliers of plastics manufacturing machinery, tools, moulds and dies are well
informed about who does what, who makes what and who uses what within the local
plastics industry. They may advise who is likely to buy material.

Marketplace analysis

Various overseas players wish to explore the Indian market and invest in opportunities
thrown open by the country, projected to be world number 3 in plastics consumption by
2010.As shown above the north region of India is specialized in recycling of PVC. So
there is a great scope of PET recycling. Apart from this the other scopes are

• A huge market with full of opportunity.

• Absence of standard product and service

• Well connected with other rural areas

• Having good transportation facility

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Customer analysis

Since we are new player in the market so we need to make some stringent strategies to
penetrate market and grab customers. The customers of the plastic industry are
scattered due to lack well known brand names. So our first priority will be to accumulate
the defused customers.

The direct customers are the customers whom we are selling our product regularly. So
for us households whom we are selling plastic goods and companies who are getting
raw materials for packaging are direct customers (PET bottles). So only in Allahabad
around 20,000 families are our direct prospective customers and in terms of business to
business market around 20 small and medium scale companies are our direct
customers

Apart from them there are few small companies which are giving compounding services.
They use to collect various types of plastics flakes along with the virgin plastic and
suggest customer (companies) in choosing appropriate plastic. An Asha enterprise is
one compounder whom we will sell our plastics.

Competitor analysis

In plastic manufacturing market there is no specific brand name is existing so the

market is flooded by small companies which are in this business. So they are our
biggest direct competitors.

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Venture Description

JSFI Plastics provide a wide range of plastic solutions for plastic beverage bottles to the
various companies. Tongi is the place where the facility is established and other
operations are commenced. We will collect the plastic garbage like consumer beverage
bottles, plastic bags from various garbage stores and then our recycle unit will process it
which eventually be used for the production of finished goods. The plastic garbage we
are getting as raw material has two components one is PVC (Polyvinyl chloride) and
other is PET (Polyethylene terephthylene ). Firstly the whole garbage is melted and then
PVC and PET are separated from each other by froth flotation technique. We will create
a plant (actual facilities to be shared with the recycling unit) to manufacture extruded
plastic flakes (purified plastic). The extruded plastic is then molded in the various
products.

We will produce two types of replay plastics

• PVC (Polyvinyl chloride)

• PET (Polyethylene terephthylene )

Mission Statement

JSFI Plastics

• Strive to provide the excellent plastic solution to the customers at competitive

prices.

• Continually expands our range of products.

• Is poised to service both large and small customers.

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Markets and Products

The plastic products usually do not carry a brand name so intruding in the business like
plastic will not be too hard with low price strategy. The country has a large population
the beverage industry is blooming now a day. Plastic bottles are more hygienic than the
other types of carriers. So, they focus on plastic products rather than others since it is
also cheaper. Hence it is huge market to exploit. We will set up our factory near Tongi
where most of the consumer companies at least some infrastructure. The supply of raw
material will be continuous as the country produces huge amount of plastics everyday.

There are two folds of products that we are providing one is industrial and other is
households.

Objectives

Develop a business that survives on its own cash.

Create a company which exceeds customer satisfaction level.

Expand the service to whole country in first five years.

Extending the services to electronic component manufacturing companies for

production of capacitors printed circuit boards etc.

Key to success

The main keys to the success of the Company are:

• Secure Supply- Contract for supply of post-consumer bottles and post- industrial
manufacturing waste for PET raw material feed stock.

• Satisfy our customer so that we can retain them

• Maintain low overhead and operating costs

• Provide better prices than all our competitors

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Product and services

We will provide a wide range of plastic products for and raw material for organizations.
The recycled plastic is processed to Polyethylene Terephthalate (PET). PET is a
thermoplastic polymer viscous of polyester family. PET have good strength, ductility,
stiffness and hardness. After the recycling process completed an extruded plastic is
generated. Plastics extrusion is a high volume manufacturing process in which raw
plastic material is melted and formed into a continuous profile.

The products we are producing are

• Cleaned and recycled plastic flakes of PET and bottles, recovered from post-consumer
beverage bottles. (this PET will work as raw material for packaging to various firms, not
for the end user)

• Household finished plastic goods. We are manufacturing plastic tubes of various

diameters, plastic kitchen ware. (For the end user)

PET flake will be sold to thermo formers (those who mold plastic sheets into usable
products) primarily to be used to produce high-visibility packaging and also to the
beverage companies for packaging. Recycled plastic is widely used in mainstream
construction products such as damp proof membrane, drainage pipes, ducting and
flooring. Bins, street signs and planters are frequently made from plastic. They are cost
competitive and resistant to damage. Local authorities and schools are able to
demonstrate recycling in action by specifying recycled products High strength PET is
used in the clothing, furnishings and technical textiles. Apart from PET the household
plastic will be directly sold to the end customers. In day to day life plastic items like
water bottles, shop case scrubber etc is frequently used. So there is a big demand of
these in local market.

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Organizational Plan

JSFI is a partnership business where four partners are running the whole business. The
owners of JSFI plastics are Mr Imran Kamal ( expert in International business ans
HRM), Mr Towfiq Hasan ( expert in HRM) , Mr Fayez Uddin Ahmed ( expert in
Marketing) and Mr Selim Imtiaz ( expert in Marketing, have a little inner dream to take
big part in this industry in Bangladesh. There is a Board of Governance (BOG) for JSFI
and every owner is a member of the Governing Body. The owners have equal share in
the investment of “JSFI” and equal right to take part in decision making. As each
member of the BOG is collectively expert in different areas like Marketing and Human
Resource Management; each individual can be in charge of different departments. Each
member will get a chance to be elected as the Chairman of the board for two years.
After two years another member will elected as the Chairman, in this way every member
will get chance to be the Chairman in next ten years time. A meeting of the Board of
Governors will be held twice a month. Emergency meetings can be held on demand.

The company will be run by four different managers from them one will be a general
manager selected for two years. The admin department will be under Mr. Towfiq who
will look after the administrative factors and also the Human Resource Management.
Under the Human Resource Department, the company’s recruitment, selection,
appointment and performance appraisal processes will be done. The employee
incentive systems will be also a part of this department. The production department will
be under MR. Imran Kamal. He will collect the bottles from the Street children, make
them into raw material, produce the bottles, store them and finally supply them to the
customers as per order. The project manager is Mr. Selim Imtiaz and this department
will be comprised with different project teams. These teams’ duty is to gather more
street children and ask them to collect the bottles. When they are with the bottles, then
enlisted them in the education system and providing them the evening education along
with the Tiffin’s. This department will also deliver the bottles that it collected, to the

19
production department. Mr. Fayez Uddin through his Communication department will
promote the activities to the beverage industries, will receive orders and deliver the
products as per the order.

20
Company Hierarchy

21
Operational/Production Plan

The operations are defined as the process used to deliver our products and service to
the customer and also include manufacturing transportation logistics travel and after
sales services.

The facility is located at outside the city. Facility is divided in two parts

• Recycling and Production unit

• Warehouse

The facility is located in an area of 3000 sft. .Apart from these two units there will be an
office which will look for the perpetual supply of required raw material and also take care
about the outbound logistics. The production capacity is 80kg/hr.

The operations will be based upon JIT i.e. just in time. We will have contracted with the
suppliers who can supply the raw material as quickly as we want. The raw material
contains post consumer beverage bottles and other plastic materials. The bottles and
other plastic material that can be recycled have a specific sign from which it can be
identified that it can be recycled or not.

The plastic is then transferred to respective unit to be recycled because PET and PVC
cannot be recycled simultaneously due to their different properties. There will be two
units running parallel to each other. On unit will recycle and produce PVC plastic and
other will perform the same for the PET plastic.

The recycled PVC is then moved for the plastic injection molding unit in the various
shapes. Since there are a variety of product is being produced so the preference will be
given to that product whose demand is high. All the products will not be produced each
and every day. There will be different products which will be produced on different day
according to the demand in market.

22
After the recycling process is completed one part of PET flake is moved to the
warehouse according to the demand of raw material which different companies need
and other part will move for the molding in bottles. The recycled PET flake is then
heated and made the viscous solution of it. The PET resin is then feeded to the molder
and molder will give it various shape bottles. And then it left for drying. Those products
which further need for processing like buckets, the handle will be inserted after the
bucket is dried.

Stages of Recycling and Production

The process of recycling of waste plastics into products of varying usefulness involves
the following essential steps:

• Sizing / Chipping

• Cleaning

• Segregation.

• Agglomerating / Coloring

• Extrusion / Palletisation

• Fabrication into end Product.

Chipping:

The plastics waste is then required to be properly sized so that those may be fed into
the extruders for processing and palletizing. The sizing operation depends on the type
and shape of the waste plastics.

During this process, attention is required to separate any powdery material from the
sized / chipped plastics.

Segregation:

Certain polymeric materials are compatible with each other at all proportions. For
example LDPE and Lldpe are generally compatible to each other at all proportions.

23
The advanced technology of separating / segregating different types of waste plastics
involves ‘Floatation Process’. In this process the property of the varying densities of
different plastics is made use of for segregating different types of plastics.

However in the Indian Context, this separation or segregation process, in many cases,
are done by manual process utilizing the availability of cheap and expert labor force. In
case the waste is contaminated with embedded metals, proper method of separating
the metals / other contaminants is required.

Cleaning:

The scale of cleaning depends on the type of waste. Whenever a cleaning operation is
involved, it is to be ensured that the water or any other cleaning material used should be
discharged after ascertaining that the discharge does not contain any objectionable
substance. A proper Treatment Device may have to be deployed – like a water
treatment plant / effluent treatment plant. For drying, a suitably designed drier is used.

Many industries situated outside the metropolises, use open space for natural drying of
the cleaned waste.

Agglomerating / Coloring

In the next operation the sized plastics waste is mixed with color master batch in high-
speed mixers / agglomerators and the output is ready for extrusion into pellets.

Extrusion / Palletisation

This is the most important part of the process wherein the sized / chipped plastics are
plasticized and granulated to make the plastics material ready for fabrication next.

The type and size of the Extruder depend on the type and volume of the plastics waste.

24
Fabrication into end Product

Finally the reprocessed plastics granules are used as raw material for producing end
products using similar fabrication machines like Injection Molding / Extrusion etc.,
depending upon specific requirement.

Scope of operations

Now presently our production capacity is 10,000 kg/day from which in initial stages we
are utilizing around 50% of it. As the business expands we will reach to optimum
capacity utilization. We are expecting that we will start producing more advance plastics
in the fourth year of our operations and accordingly the sales will increase and the
facility will have to be expanded.

25
Distribution strategy

As we described before that firstly we will target Dhaka city and villages close to it. We
will have a distribution center in the Dhaka city which continuously maintains the supply
of goods. So the products will be sold through the company warehouse. PET bottles will
be stored in warehouse which is close to the facility itself. The sales people will directly
contact to the companies which require these bottles for packaging and look for the
contracts. In city as stated above that we will have a distribution center, from that center
we will distribute to whole sellers.

Sales strategy

The strategy of sales effort will be to convert potential and first time customers into long
term customers. Our sales strategy is totally based upon the distribution channel and
the pricing strategies. We will give the industrial customers a facility to order the
products through our website which will help them in reducing the delivery time.

To market the products, the Company will use a number of sales agents/brokers. They
have a customer base of their own, having developed successful relationships with their
client over the years. Their customer base is currently demanding product so they can
expand upon their current base. Of course, they will expand that to new customers
when product is available.

If the Company grows faster than its prime customer base, additional capacity may be
developed. We will identify additional prospective customers who can be attracted for
our products.

The first month prior to the opening will be used to get the new office in order, set up
appointment and begin marketing activities. In the first month we will focus on the
generating public visibility. The sales forecast is based on the assumption that we will
sell all of the highest volume PET bottles that we can produce. This flake will be sold to
other manufacturing companies. Recycling industry is growing with 15-20% each year.

26
So we can assume that we will grow with at least 20%. There is a continuing strong
demand for flake and extruded products made from recycled PET.

The development of JSFI plastics required to accomplish a series of action and

formalities. Since we are new in the market we kept our production is low initially, as
demand will increase the production will be enhanced respectively. Now we are
recycling and producing only two types of plastics i.e. PVC and PET, as we grow we will
produce a wide the range of plastics and its finished product. .

The development process involves following steps:

• Legal formalities

• Office/business setup

• Future offerings and expansion plan

Development strategy

In future we are looking for the production of a variety of plastic. These plastics will be

• LDPE (Low density polyethylene)

• HDPE (High density polyethylene)

LDPE plastic is used in the production carry bags and other plastic sheets as well as
cling wrap, car covers, squeeze bottles, liners for tanks and ponds, moisture barriers in
construction. And HDPE plastics are used in production of freezer bags, water pipes,
wire and cable insulation, extrusion coating.

Our development strategy will base on timely completion of the establishment of the
business centre with low execution cost. Our strategy will focus not only the current
uninterrupted production of PVC and PET and acquisition of customer as fast as we
can, but we will also look for the future expansion plan and execution strategy.

27
Our future development strategy will focus on to chart out a careful plan for the future
expansion and growth of our business. The development strategy will address following
issue:

• How will we expand our services?

• Which are the new areas we will include to provide our services?

• What will be the format of the business?

Our development strategy will address all those above mentioned point. As we will grow
and our earning will increase, we will produce more of PVC and PET as well as expand
in new area. We have a development strategy to expand our facility size in order to
meet the production size.

28
How it is possible to be
responsible towards the
society

29
Integrated Marketing Communication

IMC is the process of managing all sources of information about a product/service to

which a customer or prospect is exposed which behaviorally moves the consumer
toward a sale and maintains customer loyalty.

IMC is the strategic coordination of all messages and media used by an organization to
collectively influence its perceived brand value.

IMC is a strategic business process used to plan, develop, execute, and evaluate
coordinated, measurable, persuasive brand communication programs over time with
consumers, customers, prospects, and other targeted, relevant external and internal
audiences. (Klitchko, Jerry. 2005)

Kliatchko’s definition states:

• IMC is the concept and process of strategically managing audience-focused,

channel-centered, and results-driven brand communication programs over time.

• This definition is made up of four basic elements:

– (1) IMC is both a concept and a process;
– (2) IMC requires the knowledge and skills of strategic thinking and
business management;
– (3) IMC is hinged on and distinguished by three essential elements or
pillars – audience-focused, channel-centered, and results-driven;
– (4) IMC involves an expanded view of brand communications.

30
IMC Tools:

Transcom Chips uses all the promotional mixes except internet marketing. They use:

Communicatio
nal Marketing
Tools

Advertis Sales Direct Public Personal Event &

ig Promoti Marketin Relation Selling Sponsorsh
on g ip

Advertisement:

Advertisement is the most important factors of promotional mixes. The company spends
most of the money allocated for marketing communication for advertisement.

Transcom spends a huge amount of money for Television advertisements given

focusing on the promotion of this product accompanied by its communication objectives,
positioning and reach to target audience along with its functional, clinical and emotional
benefits. Transcom also advertise their product by setting balloons in different schools
and publishing their advertisement in the school magazine of different schools.

31
Balloons:

Transcom also use balloons for the advertising of their chips. Transcom will choose 500
spots like schools, collages, and universities all over the country and set big balloons in
those spots. This will increase their publicity.

Public Relation:

Building good relations with the company’s various public by obtaining favorable
publicity, building up a good “corporate” image and handling or heading off unfavorable
rumors, stories, and events Public relation has following functions.

1. Press relation
2. Product publicity
3. Public affairs
4. Lobbying
5. Investor relation
6. development (Kotler, Armstrong, 2005, pg 475)
For public relation, Transcom use press relation only. When they promote new
products, they arranged a press conference. During this year, they will arrange a press
conference for their CSR. They try to build a school for street children. We try to
develop an interesting story; it could be picked up by several different media. It aware
the people and has a positive brand image toward and increase total revenue.

Sales Promotion:

Short-term incentives to encourage the purchase or sale of product or service. There

are some tools for sales promotion. They are- 1.Consumer promotion tool: sample,
coupon, cash refund offer, price pack, premium, advertising specialty, patronage
reward, POP promotions, contest, and sweepstakes. 2. Trade promotion tools:
Discount, allowance. 3. Business promotion tools. (Kotler, Armstrong, 2005)

Transcom will promote coupon variable under consumer promotional tools. We promote
LEGO in the packets firstly in Bangladesh. It attracts mainly the children because Lego

32
is only targeted the children. As children are the influencer to buy this product, so it
influences them. It helps to increase total sales directly to10%.

Event & Sponsorship:

Transcom advertise their product through sponsoring different programs like concert in
the amusement parks like Nandan Park, Fantasy Kingdom, Wonder Land, Shishu Mela,
Shishu Park. Transcom also sponsored the food court of these amusement parks. In
those amusement park outside foods are not allowed. As Pepsi sponsored the food
courts of the amusement Park, they can easily communicate with their customer and
get response directly. For these sponsoring purposes, Transcom allocated the budget
as following:

Personal Selling & Direct Response or Direct Marketing:

Personal selling is defined as two way communication in which a seller interprets brand
feature in terms of buyer’s benefits (Duncan, 2001, p. 617). Also called the face to face
function, it involves one to one marketing using face to face communication. Few years
back, personal selling was focused primarily on sales, but now has to focus on solving
consumer’s problems and adding values. This means customizing a product according
to consumers needs and wants.

Direct communications with carefully targeted individual consumers-the use of

telephone, mail, fax, e-mail, the internet and other tools to communicate directly with
specific consumers is called direct response. Direct Response or Direct marketing
combines a sales message with demand creation and fulfillment. Telemarketing and
direct mailing are two examples of direct marketing. In this process consumers are
given certain period of time to consume the product so that they can gain some value
from the consumption. The major strength of this tool is, it is highly target oriented.

We will organize a campaign in the school, college and university. Like in Dhaka
division we will take a small place in the canteen of school, college and university. In
that place our sales representative will provide the information about the special
features that it provides. It will help to increase brand awareness. It will also make a

33
good attitude about the product and customer will have a desire to buy the product. Our
sales representative will also collect the feedback from the existing and potential
customer to know our competitors strength.

Responsibility towards society:

Kid’s section of Lifeboy floating hospital:

The history behind this hospital is to provide free medical treatment for the lower class
people who lived near the rivers, sea. The poorest people in our country mainly living
near by river and they are mostly effected by flood, cyclone and other disasters. So, to
fulfill their basic need, Transcom can provide a steamer. In this steamer, Transcom
supports the kid health section. Every year, they will hire child specialists for one or two
months for medical check up for the poor children. To run this, company has to maintain
1,500,000 taka per year. It will be the only steamer hospital in Bangladesh. So, through
this, we can motivate our customers and indirectly we influence them to buy this
product.

School for Street Children:

Another program is to establish a school for the street children. Most of the street
children do not get the opportunity to study in the school. So, we think that it is effective
for our society and customer. We do our social responsibility and influence our
customer through emotionally by this program. We promote an advertisement on the
basis of this program which affects our customer extremely. So, we get a positive
impression towards customer which helps us to increase brand loyalty.

34
Storyboard

Scene 1

Some street children are picking

up used and discarded things

Scene 2

One of them is only picking up

Plastic wastes

Scene 2
35
 Scene3

He is taking the packets he

gathered to Transcom Adarsha
School

36
 Scene 4

After seeing the packets in the

boy’s hand the school teacher
puts his name in the register
book

Scene 5

Ultimately the boy is able to

break the curse of illiteracy

37
Justification of traditional media plan

The perfect blend of IMC tools for a proper Marketing Mix is consist of advertising, sales
promotion, public relation, event and sponsorship.

Advertising is one of the strongest IMC tools that add value to a brand or company by
creating awareness significantly. It is a planed way of spreading the information about
the features of the product that directly hit the target and attract toward the product or
try to attract.

Media Selection:

There are three types of media that can be used for any kinds of product to promote.

These are:

• Broadcast media

• Print media

• support media

As Transcom produces beverages and chips, the communication media has to be

credible, attractive, and powerful so that the consumer could be attracted towards the
product easily. The richness and the reach of print media and web media are very low
for this product because the target market of this product do not usually browse web for
product or for any other purpose. On the other hand, print media promotion for this
particular demographic segment is about ineffective because consumer from this
demographic segment has a little connection newspapers, magazine and other sources.
In this case broadcast media is the perfect solution for Transcom.

There are two types of broadcast media:

• Audiovisual broadcast media

38
 • Audio broadcast media

Problems with audio broadcast media: (why Transcom is not using it)

It is true that audio broadcast media is cost efficient and flexible than audiovisual
broadcast media. But this media has less reach and richness to the target market, it is
unattractive and lack of visuals, it can create clutter to pass fleeting message (Burnett,
Moriarty & Wells, 1998, pg 355) and has limited communication (Belch & Belch, 2003).

Selecting the visual media:

On the other hand, audiovisual broadcast media has creativity and greater influence
towards consumer; it has large reach to audience; it creatively use light and sound to
convey a mood or image using emotion or entertainment appeals that help make a dull
product appear interesting. And can demonstrate of a product or services (Belch &
Belch, 2003, pg 351-352). That is why the promotional campaign of Transcom is based
on audiovisual broadcast media.

Transcom always produces new products in the market from Transcom group. That is
why the advertisement should be informative that tells the market about the product
(Kotler, Armstrong, 2005, pg 456)

It includes participation and spot announcement to advertisement. The advertisement

time slot for this product is 4-6.30 and 8-9 pm when kids (the target market of
Transcom) basically watches TV.

Big balloons:

Though Transcom is advertising their product through the national audiovisual

broadcast media, they also use big balloons in the hot spots. This type of advertising is
exceptional in our country. If we promote this idea, it will increase our brand awareness

39
and a unique promotion tool in this product segment. We know that balloon attracts the
children. If these big balloons are floating in the air, children will influence to buy this
product.

Support media:

Our target audiences are students, children, and young generation. Their favorite topics
are sports, games, story books, knowledge books etc. if we promote printed
advertisements in the sports magazines and others magazines which are knowledge,
geography, story, novel writing related our consumers and customers will be influenced
to buy this product.

40
Financial Analysis

Income statement

Income Statement 1 Years

Period Starting: Q1 Q2 Q3 Q4 Year

Sales

Sale 1,000,000 1,000,000 1,100,000 1,210,000 4,310,000

COST OF GOOD
600,000 600,000 660,000 726,000
SOLD 2,586,000

Total Sales Revenue 400,000 400,000 440,000 484,000 1,724,000

Gross Profit 400,000 400,000 440,000 484,000 1,724,000

Operating Expenses
Salaries and wages 300,000 300,000 300,000 300,000 1,200,000
Generator 30,000 30,000 30,000 30,000 120,000
Utilities+Electicity 50,000 50,000 50,000 50,000 200,000
Repairs and
5,000 5,000 5,000 5,000 20,000
maintenance
Transportation 10,000 10,000 10,000 10,000 40,000
Cell Phone 10,000 10,000 10,000 10,000 40,000
Advertising 15,000 15,000 15,000 15,000 60,000
Miscellaneous 20,000 20,000 20,000 20,000 80,000
Depreciation 25,000 25,000 25,000 25,000 100,000
Total Operating
Expenses 465,000 465,000 465,000 465,000 1,860,000

EBIT (65,000) (65,000) (25,000) 19,000 (136,000)

Income (Loss) Before
(65,000) (65,000) (25,000) 19,000 (136,000)
Taxes

41
 Taxable income(after
165000)
Income Taxes(10%) (6,500) (6,500) (2,500) 1,900 0

Net Income (Loss) (58,500) (58,500) (22,500) 17,100 (136,000)

Income Statement 2 Years

Period Starting: Q1 Q2 Q3 Q4 Year

Sales
Sale 1,800,000 1,800,000 1,980,000 2,178,000 7,758,000

COST OF GOOD
1,080,000 1,080,000 1,188,000 1,306,800 4,654,800
SOLD

Total Sales Revenue 720,000 720,000 792,000 871,200 3,103,200

Gross Profit 720,000 720,000 792,000 871,200 3,103,200

Operating Expenses
Salaries and wages 350,000 350,000 350,000 350,000 1,400,000
Generator 50,000 50,000 50,000 50,000 200,000
Utilities+Electicity 50,000 50,000 50,000 50,000 200,000
Repairs and
10,000 10,000 10,000 10,000 40,000
maintenance
Transportation 15,000 15,000 15,000 15,000 60,000
Cell Phone 10,000 10,000 10,000 10,000 40,000
Advertising 20,000 20,000 20,000 20,000 80,000
Miscellaneous 30,000 30,000 30,000 30,000 120,000
Depreciation 25,000 25,000 25,000 25,000 100,000
Total Operating
560,000 560,000 560,000 560,000 2,240,000
Expenses

EBIT 160,000 160,000 232,000 311,200 863,200

Income (Loss) Before
160,000 160,000 232,000 311,200 863,200
Taxes

Taxable income(after
165000)
Income Taxes(10%) 24,000 24,000 34,800 46,680 129,480

Net Income (Loss) 136,000 136,000 197,200 264,520 733,720

Income Statement 3 Years

42
 Period Starting: Q1 Q2 Q3 Q4 Year

Sales

Sale 2,500,000 2,500,000 2,750,000 3,025,000 10,775,000

COST OF GOOD
1,500,000 1,500,000 1,650,000 1,815,000
SOLD 6,465,000

Total Sales Revenue

1,000,000 1,000,000 1,100,000 1,210,000 4,310,000
from jaming pad

Gross Profit 1,000,000 1,000,000 1,100,000 1,210,000 4,310,000

Operating Expenses
Salaries and wages 400,000 400,000 400,000 400,000 1,600,000
Generator 60,000 60,000 60,000 60,000 240,000
Utilities+Electicity 70,000 70,000 70,000 70,000 280,000
Repairs and
15,000 15,000 15,000 15,000 60,000
maintenance
Transportation 10,000 10,000 10,000 10,000 40,000
Cell Phone 20,000 20,000 20,000 20,000 80,000
Advertising 25,000 25,000 25,000 25,000 100,000
Miscellaneous 20,000 20,000 20,000 20,000 80,000
Depreciation 25,000 25,000 25,000 25,000 100,000
Total Operating
Expenses 645,000 645,000 645,000 645,000 2,580,000

EBIT 355,000 355,000 455,000 565,000 1,730,000

Income (Loss) Before
355,000 355,000 455,000 565,000 1,730,000
Taxes

Taxable income(after
165000)
Income Taxes(10%) 35,500 35,500 45,500 56,500 0

Net Income (Loss) 319,500 319,500 409,500 508,500 1,730,000

43
Balance Sheet

Balance Sheet (Projected)

JSFI Plastics

1st Year 2nd year 3rd year

Assets

Current Assets
Cash 1,000,000 1,200,000 1,450,000
Accounts receivable - 300,000 500,000
Inventory 800,000 960,000 1,160,000
Prepaid expenses 60,000 72,000 87,000
Other current assets 20,000 24,000 29,000
Total Current Assets 1,880,000 2,556,000 3,226,000

Fixed Assets
Machinery & equipment 3,000,000 3,000,000 3,000,000
Furniture & fixtures 500,000 500,000 500,000
Land & buildings 1,500,000 1,500,000 1,500,000
Other fixed assets 100,000 25,000 15,000
(LESS accumulated
depreciation on all fixed
assets) (250,000) (250,000) (250,000)
Total Fixed Assets (net of
depreciation) 4,850,000 4,775,000 4,765,000

TOTAL Assets 6,730,000 7,331,000 7,991,000

Liabilities and Equity

Total Liabilities 0 0 0

Owners' Equity
Invested capital 6,200,000 6,200,000 6,200,000
Retained earnings - beginning 300,000 - -
Retained earnings - current 230,000 1,131,000 1,791,000
Total Owners' Equity 6,730,000 7,331,000 7,991,000

44
Total Liabilities & Equity 6,730,000 7,331,000 7,991,000

Balance Sheet for Three Years

Year 1 2 3
Assets
Cash 207,414 602,204 1,183,104
Furnitures &
Equipments 1,575,000 1,575,000 1,575,000
Prepaid rent
expenses -
Trade license 10,000 10,000 10,000
Accumulated
Depreciation -271,333 -271,333 -271,333

Total assets 1,521,081 1,915,871 2,496,771

Liability & Owners'

Equity
Long-term debt 1,018,462 811,508 575,581

Owners' equity 502,619 1,104,363 1,921,190

45
Conclusion:

• In Bangladesh more than eighty percent children suffers from anemia (Shortage
of Blood Cells in the Human Body). As Transcom produces different beverages,
it will be an opportunity for Transcom if they could re-configure the product and
can modify it which can improve Blood Cell.
• At present Transcom is manufactured targeting all Lower class, Middle Class,
Higher Class Consumer, that is why, it also could be an opportunity for Transcom
for if they can reduce the price of the product by re-configure there product
manufacturing line or distribution channels.
• Though Transcom is a famous company in Bangladesh and doing there business
from very early years, still today most of the people in Bangladesh do not know
about all the product of Transcom Group. This refers the absence or lacking of
brand awareness. To increase the sales volume of sales it is the right time for
Transcom to inform or aware the people about the brand.
• Environment pollution from polymer bag or plastic products is common
phenomenon in Bangladesh. In this situation Transcom can do their Corporate
Social Responsibility in such way that will do the social responsibility and sales
promotion at the same time. Here, they can offer that if a consumer return back
an empty bottle and purchase at least two more, they will be discounted taka one
in each bottle. And this will not negatively affect the company’s revenue because
of reduction in price; moreover it will increase the revenue because of increase in
sales volume.
• Moreover, to boost up the communication channel and to make them more loyal
towards the company, pull strategy could be used. To make this happen in
reality, one percent of the selling price of the product will be spend for the
scholarship of sales representative and retailers children.

46
 Bibliography

Hisrich, R D (2010). Entrepreneurship. 7th ed. New York: McGraw Hill.

Crane, A (2004). Business Ethics. New York: Oxford University Press.

Bangladesh Government. (2009). The Consumer Rights Protection Act. Available:

http://www.mincom.gov.bd/acts.php. Last accessed 20th

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