BUS 101

Section 9

UPREPARED BY: U

TASLIMA AKTER LIZA ID#1020447 030

RAYESA NOOR ID#1020123 030

NAFEEES IMTIAZ ID#1020009 030 NAFEEZ MAHMUD

ID#1020106 030 ADIL-AL-NAHIAN ID#1020902 030 SYED SAZIDUL HAQUE ID#0930674 030 MAKSUDUL ALAM RANA

ID#1020197 030 SWAPAN KUMAR SARKAR

ID#1020358 030

Prepared For

Mr. Niaz Morshed Patwary

Lecturer, School of Business

North South University

Date: 7th August 2010

To,

Niaz Morshed Patwary

Lecturer, School of Business

North South University

Subject: Project Submission

Dear Sir,

We are the students of the course Bus 101. Our group number is 5 and has completed our project on a Sports Brand. We are pleased to submit the project for your kind checking and comments, if any, for our guidance to follow up accordingly.

Sincerely yours,

UPREPARED BY: U

TASLIMA AKTER LIZA ID#1020447 030

RAYESA NOOR ID#1020123 030

NAFEEES IMTIAZ ID#1020009 030 NAFEEZ MAHMUD

ID#1020106 030 ADIL-AL-NAHIAN ID#1020902 030

SYED SAZIDUL HAQUE ID#0930674 030 MAKSUDUL ALAM RANA

ID#1020197 030 SWAPAN KUMAR SARKAR

ID#1020358 030

Table of Contents

I. Executive Summary……………………………………………………. 1

II. Business Description and Vision…………………………………. 2

III. Business Goals…………………………………………………………… 3

IV. Modes of Operations………………………………………………….. 3

V. Marketing and sales strategy………..…………………………… 4

VI. Current Market Position……………………………….………….. 6

VII. SWOT Analysis……………………………….…………………………. 7

VIII. Income statement………………………………………………………9

I. Executive Summary

Bongo is the first exclusive sports brand from Bangladesh, which aims to serve the needs of sporting items in the domestic market of Bangladesh, as well as penetrate the international market and compete with major incumbent sports brands. One of Bongo’s targets is to make sports items available to the sports loving youngsters of Bangladesh, irrespective of their economic conditions. That is what has motivated Bongo to provide Sports apparels, shoes and accessories at unbelievably competitive prices in the local market.

We, at Bongo, understand that the market is a highly competitive one with high levels of brand loyalty seeping through it, but it is our enduring vision to make accessible,

affordable products and eventually establish ourselves as a leading brand. If you look around, little boys playing with a football made completely out of paper is a common spectacle. Such scenarios clearly exemplify the need of a low-cost sports item manufacturer and unlike other global brands who cater to exclusive sections of the society, at Bongo, we truly intend to reach out to the masses.

Bongo has received substantial assistance from the Bangladesh government in the form of tax grants and we plan to build on this relationship in future thus enabling ourselves to not only be competitive in terms of prices but also set a new global standard.

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II. Business Description and Vision

Bongo is the first “deshi” sports brand, whose products are exclusively and entirely manufactured in Bangladesh. Bongo provides orders for its products to local Bangladeshi manufacturers, whose prime concern is on maintaining international standards.

Bongo’s vision is to satisfy the domestic market, compete with sports brands in the international market and become the market dominator. Our outputs are available at our own retails outlets, together with stores selling sporting products in all major cities of the world.

MISSION STATEMENT:

To become the best sports brand in the world by providing comfortable, durable, stylish sports items to our valued consumers both in the domestic and international market at competitive prices.

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III. Business Goals

Our short term goal is to penetrate the international market and increase market share, together with increasing the value and rate of turnover. Also, we are aiming to establish our brand at the international stage and earn brand recognition from consumers all over the world. Hence, we have many marketing and promotional activities on hand.

Among the long term goals, Bongo targets to become the leading brand in the sporting product market. We also have plans of issuing shares in both the domestic and international stock markets and emerge as a public limited company in the near future.

IV. Modes of Operations

Bongo’s products are entirely manufactured in Bangladesh. We provide orders to local manufacturing factories mainly located in Gazipur, Narayanganj, Ashulia and Chittagong. Bongo encourages the use of local raw materials

Bongo has a strong distribution channel that makes its outputs available at all major cities throughout the world. Once the manufacturer completes our order and provides us with the finished product, Bongo distributes its output to the final consumers all over the world through own retail outlets, internet selling, foreign agents and dealers.

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V. Marketing and Sales Strategy

Bongo has a strong and experienced marketing research team, which investigates the market, collecting valuable information about the desires and expectations of the consumers, which helps us to design our product to meet consumer demands precisely and remain competitive. Since the sports product market consists of high level of completion, learning about our competitors’ strategies is also a major task that our marketing research team carries out efficiently. Bongo allocates a good proportion of its total budget for R&D.

Product

The products we are offering include:

Shoes: Tennis, Basketball, Running, Soccer.

Apparel: Shirts, Trousers, Shorts, Jackets.

Accessories: Caps, Bags, Back-packs

Price

Since one of Bongo’s prime objectives is to allow sports lovers from all income groups to get access to sports items of superior quality, our prices are extremely competitive. Bongo implements a price discrimination strategy- its outputs are cheaper in the domestic market compared to the international. This allows local youngsters who love sports yet come from a low income group to buy their desired sporting items.

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Promotion

Frequent promotional campaigns are held in schools, colleges and universities for brand establishment, since a large proportion of our target market consists of school going people. Bongo offers discounts on closing inventory. Free gifts are also offered as a sales promotional method. Students are offered 25% discount on demonstration of their ID cards in some specific outlets of Bongo. Bongo also has a facebook group, whose members are allowed a 5% discount. Advertisements on televisions are shown regularly using various persuasive techniques and famous personalities. Bill boards and illuminated signs are also used as advertisement media.

Place

We want to make life easier for our valued consumers. Hence, our outputs are available within our consumers’ reach at Bongo’s own retail outlets and other stores selling sports items in all major cities throughout the world. To make shopping more comfortable, consumers can order online. Bongo promises to deliver the product at the doorstep of the consumer within 24 hours of ordering.

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VI. Current market position

Bongo is an emerging international sports brand and has completed one year of operations. It has achieved unbelievable success and has met the desired target regarding market share for the first financial year of its operations. Bongo currently has 2% share in the sporting items market (sports, apparels, shoes and accessories ).

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VII. SWOT ANALYSIS

STRENGH OPPORTUNIT

WEAKNE

Strengths: Bongo’s main strength is its low cost structure. Since our products are manufactured in Bangladesh where labor and overhead costs are comparatively cheaper, we have a competitive advantage over our major rivals. One of our key strengths is our quality. Bongo ensures quality of the international standards along with competitive prices. Our strong marketing and R&D team allows us to stand one step ahead of our rivals. Our online presence is very strong and noticeable.

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Weakness: The main weakness of our company lies in the limited product line that we offer to our consumers. Moreover, rising wage rates of domestic labor associated with cost push inflation are exerting pressure on our costs of production.

Opportunities: Bongo’s products are capable of motivating consumer life style. Entering new markets and increasing market share are vital opportunities for our company. Diversifying in to new markets and producing entirely new products also lie within the opportunities available to our company. Technological innovation, we believe, will allow our company to operate more smoothly and successfully.

Threats: Competition from incumbent rivals sometimes take fierce forms, such as predatory pricing and limit pricing. Moreover, new entrants to the market are also a noticeable threat to our company, together with switch in consumer preference and change in consumer tastes. Most importantly, the global economic slowdown acts as a major threat to Bongo.

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VIII. Income statement

Bongo ltd.

Income Statement

For the year ended 31st December, 2009

Sales $ 10,381

Cost of goods sold (3,669)

Gross profit 6,712

Selling/ general/admin.

expense $1,729

Re-search & development 810

Depreciation 194

Interest expense 234

Unusual expense 0

Other operating expense 928

Total operating expense (3895)

Operating income 2,817

Gain(loss)on sales of assets 380

Income before tax 2,437

Income tax total 113

Net income 2324

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