Political Factors And Legal Factors Marketing Essay

Political Factors And Legal Factors Marketing Essay part is a loc anyy owned eating ho routine and fast food avocation. It is a medium size eating ho example business which leave be located in Dhaka which is capital of Bangladesh. spirit is sight huge popularity in restaurant business harmonize to Bangladesh up-to-date grocery store. theatrical role is promised to offer best calibre food to the client. As a result lineament go away put up their business by offering all kinds Chinese, Thai, Indian, traditional and fast food. It is constituted upon 4 partners with equal ownership. The tar move market volition range from upper class to belittleder class customer. The market is demanding best product with affordable price so for that circumstance character allow for chequer that each every customer willing receive best price and best product. reference will follow up all the legal issuance to register with national notice of r notwithstandingue (NBR). They are planni ng to keep some fund for corporate social responsibilities on their sales revenue. This business will initially recruit 25 part time and full time employees to run the business. Quality is face liftingd available finance to uptake worth TK.5000000. And presume to exercise gross profit margin 35% and it will lead to peak in coming days.2.0. Business Description2.1. History and BackgroundQuality will be a medium size restaurant business which will be located in Dhaka which is capital of Bangladesh. The history of restaurant industry in Bangladesh not very long. The restaurant business industry is very combative in terms of price, value, promotion, repair. Quality will be a unique concept in Bangladesh. There are substantial number of restaurant is operating in Bangladesh that will compete with quality. There are hardly a(prenominal) numbers of competitors exist in the current market what is called KFC (Franchise), Pizza Hut (Franchise) Nandos (Franchise) is leading the Banglade sh restaurant industry. That business has already coped the vast number of market shares. In 2003 Pizza Hut and Kfc in 2006 was launched their business in the Bangladesh market. This is only DHAKA based supermarket chain. There is few to a greater extent than restaurant exist in current market such as BFC, FFC, Boomers, AW restaurant, Captain World. But they are not performing well in the current market to satisfy the customer with their craving they keep failing to hold sufficient market share due to their strategic drift. But KFC and Pizza Hut will be a capacious challenge for Quality to compete.2.2. MissionQuality is promised to offer high quality food, good run with affordable price.To furnish new job for the local community.To make fair profit for consumer.2.3. ObjectivesTo make even in few months in setting up.To start making profit after few month times.To raise revenue stratum by year.To reserve some percentage of revenue for the corporate social responsibility.2.4. Product and Services DescriptionQuality will provide quality product with excellent services to the customer. Quality will focusing not only on single product based retail business but excessively verities of products. These are as followsChinese foodThai foodIndian foodTraditional food andFast food2.5. provider informationSupplier has defined as key factor for a business to improve their buying organization. all(a) the suppliers should base on quality reliability, on time delivery and the performance of produced which directly influenced to satisfy the customer with affordable price, Product availability with customer desire. Quality will make relationship with several(prenominal) supplier to hold their product quality and price control and supply chain includes most of them are from Bangladesh and few of them from Africa. In restaurant sector study suppliers of fresh produce in Bangladesh is SMEs. Therefore Quality is planning to collaborate with SME (Approximately SME have 70 suppliers in bakery, fast food, vegetables, beef, and chicken. There are few more such as Shiblee hatchery farms will provide all types of traditional food.2.6. Business OwnershipThere are different types of business which is discussed by( lonhnecker, 2010) which is brand new business, lodge in over running play business, franchise and family business. Therefore quality will be a new business which is not exists in the market for retail services. The fit ownership in start- up business may depend on owner determination regarding business profitability, risk and competitive advantages and value of business fit to (foss and lien, 2010). There are three types of business those are sole traders, partnership and corporation. Quality will follow partnership business dodge. Partnership business will help in sharing capital between partners, more flexibility to run the business, shared responsibility, easy to make decision. This business will consist with foursome partner .Every part ner will share 25% capital.3. Business opportunity3.1. Target market segmentationThe target market segmentation usually understructure be segmented on the basis of customer characteristics. These are followsGeographic ( includes country, region, counties, customer density, climate)Demographic (includes age, gender, life-cycle, income, social class)Psychographic ( degree of loyalty, occasions, interest and hobbies)3.1.1. Geographical segmentationThe ideal place of quality to do business in Dhaka city because community are gathered there from every corner of the country as well as extracurricular of the country where the people passing at Least 20 hours in a day. Quality has a opportunity from the large number of workforce, good communication for delivering raw materials to other branch. The best place quality looks near the school, shopping centre and the corporate offices. Most of the student who are just finished class feels hungry and starved looks for nearest fast food or res taurant around them. And people love shoppingand go out with their family, quality will look for getting that customer. People who work in the office they may look for lunch or dinner.3.1.2. DemographicQuality is targeting people all round of the city such as all aged people (10-64) years, low income , middle Income, high income people . Quality bushel to launch their product with thinking those kinds of consideration. Because different age people have different food criteria to eat. exercise most school student aged 15 years has attraction to fast like burgers , fries , ice-cream etc because of their taste preference even though. They will not be able to pay that sum of cash they usually get allowance from their parents. Middle age people in Bangladesh are becoming hectic day by day they probably go out with their family to have lunch or dinner therefore they prefer rice and curry so quality need to develop their menu concord to those consideration .3.2. Competitors analysisSome potential business thinks to get on with their own plans. Some business think to analyse their to help management their competitive advantages and disadvantages. Also to understand competitors present, past, forecasting business strategies. Quality focus on their key competitors KFC and nandos both are located in Dhaka city and they their briny competitors in that industry .Competitors analysis are as followsTable 1ContentCompetitors 1 ( KFC)Competitors 2 ( pizza hut)LocationDhaka , BangladeshDhaka ,Bangladesh effected dateSeptember, 2006 in BangladeshMay, 2003 in BangladeshStrengthHigh brand equityHigh business growthLarge amount of cash flow from franchise. uncommitted capital reserve to expand the businessWorld wide recognitionHigh brand equitySpecialized in PizzaRestaurant services and delivery servicesGood reputationWeaknessSales margin declineLabour turnover due to lack of opportunityHigh stipulation from parents companyOnly based on chicken productUnplanned pricingBased on pizza servicesHigh overhead make upUnplanned pricingFocused on same ingredients in everywhereOpportunityMarket leadership due to high brand equityTargeting all aged peopleInteracting with good suppliersNew market leadershipIntroducing with new ingredientsOpportunity to wither the price to make it more affordable terrorThreat from other competitors in that industrySignificant change in customer demandsNew rules and regulation impose by organisationThreat from other competitors in their revenueChanging in customer demandsNew government policiesMarket shareCovering 40% in BangladeshCovering 36% in Bangladesh3.3. PESTEL epitome3.3.1. Political factors and Legal factorsPolitical factors defines as government stability, taxation policy, introducing new law and regulation by the government,(Henry , 2008) .The political is regulated by elected government .The political issues in Bangladesh is much viable than the last decades to establish a new business. Elected government usually impos e the new policy according to their election agenda. Bangladesh government is planning to launch some very effective scheme for the new investor with decreasing value added tax, business tax, income tax. There is also a legal issue which would affect quality such as new employment law, increasing minimum wages.3.3.2. Economics FactorsEconomics factor which affects on the running of the business activities. It is undertaken In order to forecast the success of the business or evaluating the business risk involves frugals activities. It includes unemployed of the country, buying power of consumer, demand and supply, inflation, economic resource, income level of personnel. Bangladesh Nowadays comparatively economically viable to invest than all other developing country. Because of low labour greet , Bangladeshi labour gets intermediate us $ .22 dollars per an hour , rapid change in buying power for consumer, in order to more investment in Bangladesh it decrease unemployment level .3. 3.3. genial environment factorThe social environment factors defines the combination of customs , poverty, literacy, life expectation, value , tradition , religion . In Bangladesh is improving in poverty level, people are being more literate, and most people are Muslim they prefer halal food. Quality has a wide concentration on those factors3.3.4. engine room FactorIn major way , businesses are frequently developing their technology to platform to developing their business plan. Nowadays people have more attraction on using Social networking through Internet , all the businesses may get opportunity to advertise through Internet, business can use EPCS( electoral point of controlling sales) to quantify their right stock , brainpower payment against sales to help out the consumer on holding cash. So quality is concentrating on those issues.4.0. MARKETING STRATEGY4.1. Marketing Research4.1.1. Primary ResearchPrimary explore is short term decision assist. It includes observation o n customer behaviour, taking face to face interview, focus group, online survey about pertinent business. Observation process was done by Quality on strategic location where intended to open up their business. Data of market activities was collected through interviewing on customer with their expectation and who involves in those industries. Online surveys, it is very popular and relatively low cost, Quality has done their online surveys through over viewing on existing customer and potential customers comments. Quality has turned up to focus group to get more information about customer tastes and preference.4.1.2. Secondary researchSecondary research is a collection of data what is already exists. Secondary research follows outside information clustered by government records, labour unions, media, newspaper commercial sources, These are usually free and provide a lot of good information. Quality has collected data from government statistics to understand about where more people ar e gathered for several purpose, their ages and their occupations and current growth in Bangladesh (6.5%). Quality also has done their research on commercial market report prepared by research experts that helps to evaluate the business risk, the size of the market, and market shares within these sectors. Example in Bangladesh food industries kfc covering 40% of market and pizza hut is covering 36% of market shares.4.2. Marketing PlanCombination of several market elements is called merchandising mix. This element refers to 4ps which are product, price, promotion, Place.http//www.marketingplan.net/wp-content/uploads/2010/11/four_principles_of_the_mark-300300.gifFigure Price, Product, Promotion, Place the process of implementing marketing strategy4.2.1. Product StrategyThe product strategy is usually strengthened through marketing research. In terms of customer needs and desire, every company moldiness amend their product strategy. The product concept describes the products details i t includes colours, flavours, objectives, and even the price. Before launching a product in the market, the product must be tested with customer. So, in that Circumstance Company may choose focus group that discuss about customers like and dislike. So, Quality will implement that making strategy on their making food with introducing right colours, right flavour, and relevant ingredients.i.e. Some of customer sometimes they turn up to the restaurant without knowing about the food description. So product information will help to evaluate what will be best for them.4.2.2. Pricing strategyThere are three aspect of a business to set up pricing .4.2.2.1. represent based pricing4.2.2.2customer based pricing4.2.2.3competitors based pricing4.2.2.1. Cost based pricingThis pricing strategy is determined by adjusting profit on top of the product making cost . It is known as cost plus pricing. It uses widely in all major business operation. An opportunity to use that strategy to understand the business costs are covered. Quality will follow that strategy to forecast their profit mark up. Quality will use 20% mark up on costSales100emailprotected%20Selling Price1204.2.2.2. Customer based pricingThis strategy is determinedby what a business assume customers will be prepared to pay . This strategy refers penetration pricing which usually help to improver market share, it offers theopportunity to increase the price when the objective has been achieved.4.2.2.3. Competitors based pricingfundamentally markets are full of strong competition . The customer always buys from the cheapest provider and who is providing great customer services. But the customer may make their who offers reasonable price with better quality. Quality will research their nearest competitors to fix up their pricing of product.Therefore quality intend to set up their pricing strategy base on 3CS where calculate all the cost with adding profit.Figure 2 Pricing strategy base on cost, customer and competitors 4.2.3. Promotion strategyPromotion strategy is part of the marketing mix elements, It uses frequently in marketing plan. The business usually uses promotion strategy to deliver information to consumer, to increase product demand, to increase, to differentiate a product. It includes personal selling, sales promotion, direct marketing, and publicity (Rajagopal, 2007). Basically Quality will follow different ways to enkindle their food menu, Quality is intending to use media to advertise their food to bring more customer such as Facebook through internet (nowadays more people are addicted on it) there is an opportunity to cope up large number of customer, topical anesthetic newspaper ( Prothom- alo most popular newspaper in Bangladesh ). In initial market plan, Quality will give out a discount card on purchasing food as well as discount on age range. Quality will introduce with special offer to promote their food menu as like buy one main course then second one half price. Quality wi ll research their competitors promotions strategy to understand what they are actually doing in promoting their product. Quality will keep their promotion campaign as long as their strategic objectives will be achieved. Promotion strategy as below4.2.4.Place/ dispersionPlace or distribution define how the product and services gets to the customer for consumption ( kotler, killer whale burton, 2009). This is the method a business to get their product through diffrent channel those are as followsCUsersTAZNUBADownloadsphoto.JPGFigure 3 There is 3 distribution channel, channel 1 and 2 indirect marketing and channel 3 direct marketing. line of products 1 has two intermediary levels whole seller, and retailer. Normally middleman buys and stock large number of quantities of goods.Channel 2 has one intermediary level which is retailer. In typically they act as retailer in a consumer market. Some big production company produce their product and sell it to large retailer and e-retailer. T his is basically happens more in supermarket business and electronic business.Channel 3 is called direct- marketing. There are no intermediary levels. In that case manufacturer sells directly to consumer. Quality is looking for direct marketing to reach to consumer. Quality will make the product and sell to customer directly. Quality is also planning to start to delivery service to customer directly to their home reference work to increase their revenue.5.0. Business Operation5.1. Legal and LicensingNormally all the business may obtain their license from city corporation. To obtain trade license Quality will provide the following to Dhaka City Corporation are as follows, copy of the companys articles, statement of bank solvency, corporation tax code number, photographs and happen upon of the business persons.5.2. Registered and Tax authorityTo make a business every business must register with tax authority under national board of revenue. Usually all the business acquires tax iden tification number (TIN code) for the new company. For the VAT purpose, all the business needs to be registered separately with VAT way (under NBR). Quality will go through all those process to launch their business proper pathway.5.3. Organisation chartOrganisational chart are used in association with job description. Organisational chart draw a map for management process. Organisational chart provides the guidelines to employees by giving lay out the official reporting usage (Ingram, 2009). Without the organisational chart employees may find difficulties to understand what responsibilities are there? So Quality will follow up the organisational chart to allocate each employee responsibilities. Qualities organisational chart as followshttp//www.myexceltemplates.com/wp-content/uploads/2011/03/Small-Business-Organizational-Chart.jpgFigure 4 Organisational chart of Quality restaurant5.4. Personnel planWe believe that the personnel plan depends on the size of the business and evalua te revenues. Quality will recruit approximately 13 full time and 7 part time employees, who will work a total of 700 hours per week.All the staff will be well trained before starting work. Because there are many opportunity can obtain by investing on staff training. First of all, staff will be very efficient doing their work, then well trained staff will help to reduce the business risk, they will be able to perform in any given task.5.5. Corporate social responsibilityCorporate social responsibility is the process to embrace responsibility for the business actions and influence for a positive impact through its actions on the environment, consumer, employees, communities. Quality will speculate that issue. Therefore Quality will introduce with CSR scheme to help environment, employees, and communities. Quality is assuming 2% of profit to invest in CSR.6.0. Financial planThe financial plan consists of a year profit and loss assumption, a cash flow assumption, balance sheet assumpti on, breakeven point, net present value of project. Quality is planning to finance TK.10000000 which will be provided by 70% of partners of the business and 30% as a bank loan.6.1. Start up expensesEvery business have varieties of start up expenses it includes cost of capital, professional fees, administration cost, sales and marketing cost, wages and benefits. Quality will spend initially Tk.5500000 and rest will keep for further business operation, expenses as followsTable2Expected Cost of sales( Raw materials, equipment, furniture, packaging, insurance)TK. 4000000Rent ( FOR YEAR 1 in advance)TK.1000000PROFESSIONAL FEESTK. 100000Sales and marketing costTk. 200000 technology feesTk. 1000006.2. Financial indicatorsthe sales projection indicates, sales operating expenses, collection days, and inventory turnover. The sales growth will be 150% each year. eccentric is planning to keep gross margin 35% each year.http//www.bplans.com/benefits_administration_business_plan/images/8df5decd3 40f4ab28c2048fa268c889b.png7.2. Break Even AnalysisAll the businesses concern to determine how much income business must need to pay off their expenses. At that stage business tries to make a breakeven point analysis. Businesses at least need to make the cost of staying in the market place. Businesses make their assumption about breakeven point when fixed cost is covered by sale. So QUALITY is assuming that their fixed cost will be TK. 200000 (Equivalent to $20000), so QUALITY need to make their sale at least TK. 2000000 to make a breakeven point.