pus ti block

8/6/2019 Pus Ti Block

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PustiBlock

Team Name: Trinity

Team Members

Nasim Ul Haque

Omaer AhmadSabina Khan


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Our product

PustiBlock


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Our Product-PustiBlock

PustiBlock Increases

Body weight gain by 20 percent.

Nutritive value of hard feed by 15 percent. Milk yield of cattle by 26 percent.

Chances of strong and healthy calves birth if

supplied to the pregnant animals.


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Our Product-PustiBlock

PustiBlock Reduces

Calving interval of cow.

Methane gas emission by bovine animals byalmost half.


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Current Products in the Market

International Products

Monensin Based Medicines

Increase the production of propionic acid andprevent bloat

Mootral

Reduces cows' methane emissions by at least 25percent through the use of garlic based extracts.


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Current Products in the Market

National Products

ACI Feed

Sales concentrated in Daulatpur and Manikganj

CP feed

Sales Concentrated in the Rangpur area.


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Target Customers


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Marketing Mix

Product

PustiBlock, is a food supplement that reduces the

feeding cost for cattle farmers, helps bovines to

gain weight and increase milk yield.

About 500gm per day per cow is required.

The product would be available in 20kg packs


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MARKETING MIX

Price

A price of tk. 360 per 20 kg pack or about tk. 18 per

serving per cow.

The retailers will have a profit of 30tk per pack and

Our profit margin will be 30%.

Place

Cattle feed outlets

Mostly concentrated in the Rajshahi Division, specially

in Sirajganj District.


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Marketing Mix: Promotion

Portraying PustiBlock as a product

which is helping the society and

environment as a whole.

Concentrating on the feeling that

by using our product they are not

only helping themselves but are

also serving the community.

Stage 04

Performance


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Marketing Mix: Packaging


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Marketing Mix: Packaging


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Organizational Plan

CEO

MarketingManager

Sales Manager

Field Officers

HR Manager

OfficeAssistant

AccountsManager

AccountsOfficer

ProductionManager

ProcurementOfficers

Production

Officer

Quality ControlOfficer


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Resource Requirement

Capital Need Estimation

Long term capital needsTaka

Land purchase 2,400,000

Building 6,000,000Equipment 300,000

Deep tube well 50,000

Office furniture 300,000

Trade license 1,500

Total Long-term capital need 9,051,500

Total Working Capital Needs(6 months) 11,740,500

Total 20,792,000


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Debt-Equity Ratio

30% Equity(6,237,600 tk) from 3 shareholders

equally

70% loan(14,544,400) from bank with 5years long term loan

1year rest period.

Bank interest 12%


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Financial Feasibility

Scenarios Assumptions IRR (%) NPV (Taka)

Base caseSale growth: 10%

Cost growth: 10%

66 14,893,551

Best case

Sales growth:

10%

Cost growth: 5%

90 28,618,396

Worst caseSales growth: 5%

Cost growth: 10%25.41 3,529,862


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PAYBACK PERIOD

YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

(9,051,500) 5,581,900 5,313,131 7,788,149 10,755,416 14,705,651


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T

hank You

Question Please


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Appendix


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Nutrition Composition

NutrientsProximate Analysis (In

Percentage)

Crude Protein 23.0

Crude Fiber 6.0

Ash 24.0

Calcium 4.5

Phosphorus 2.0

Zinc 195 ppm

Copper 175 ppm

Iodine Trace

Moisture NMT 13%


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Raw Material Composition

Ingredient

Dry Season

(December to May)

Wet Season

(June to November)

Part Per 100 Kilogram Mixture

Molasses 40 40

Rice Bran 37.3 38.3

Urea 8 6

Cement 9 10

Salt (NaCl) 5 5

Trace Minerals 0.5 0.5

Tricalcium phosphate 0.2 0.2

Zinc sulfate 75 g 75 g

Potassium iodide 50 g 50 g

Copper sulfate 75 g 75 g


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Detailed Marketing Plan-Segmentation

Geographic

Dairy Farmers of the Greater Rajshahi Division

Dairy Farmers of rest of the Bangladesh.

Behavioral

Based on Gender Based on Importance ofDairy Farm

in the Family Income

Maintained by Men Considers as Primary Profession

Maintained by Woman Considers as Secondary Profession


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Detailed Marketing Plan - Demographics

02 Cow

Farm

A family farm

with .4 hector

(ha) of irrigated

land located in

the rural upland.

Keeps two indigenous cows.

Feeding system consists of three to four hours per day of grazing

on communal land and stall feeding with some concentrates.

About 63 percent of milk produced is sold to the local milkmen.

10 Cow

Farm

A farm with 1.5

hectors of

irrigated land (no

land rented).

Keeps Two Indigenous And Two Cross-breed Cows.

The Feed Basis Is Provided By Crop Residues And Fodder.

Delivers 90 Percent OfThe Milk Produced In The Nearest

Collection Point.

25 Cow

Farm

A farm in the

rural area with

1.8 hectors of

irrigated land.

Keeps 25 cross-bred cows.

The feed ration consists of cereal straw, green fodder,

concentrated by-product such as oil seeds wheat bran, molasses

and urea.

Over 97 percent of its milk is sold at the nearest milk collection

point.


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Detailed Marketing Plan - COMPETITIVE STRATEGY (PORTERS FIVE FORCES)

Type ofCompetitive Forces Intensity

Threat of intense segment

rivalry

Low

Threat of new entrants HighThreat of substitute products Moderate

Bargaining power of buyers Low

Bargaining power of suppliers Low


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Detailed Marketing Plan - COMPETITIVE STRATEGY

CAPTURING THE LARGEST POTENTIAL

MARKET

Exert extensive promotional efforts to

create maximum awareness in the target

market and capture as much market

share as possible.

EXPANDINGT

HET

OT

AL MARKET Put in continuous effort to expand our

market. First area of operation will be the

north Bengal but will gradually expand

the market to cover the whole country.

POSITION DEFENSE Positioning based on A strong value that isto substantially increase the milk

production of cows for an affordable

price.

PREEMPTIVE DEFENSE Our low price will act as A preemptivedefense strategy against this host of

competitors. This low price wont allow

them to make significant price cuts


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Income Statement

Year 01 02 03 04 05

Sales Revenue 29,700,000 35,937,000 43,483,770 52,615,326 63,664,588

Expenditure

Raw Material 19277100 23325291 27,672,568 32,877,670 39,115,230

Wage 696000 818400 958,320 1,118,040 1,300,121

Packaging 45000 54450 65,885 79,720 96,461

Electricity 240000 264000 290,400 319,440 351,384

Depreciation of

Eqp

60000 60000 60,000 60,000 60,000

COGS 20318100 24,522,141 29,047,173 34,454,870 40,923,196

GROSS

PROFIT(sales-

cogs)

9381900 11,414,859 14,436,597 18,160,456 22,741,392


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Income StatementYear 01 02 03 04 05

Operating Expense

Salary 1572000 1729200 1,902,120 2,092,332 2,301,565

Ads & Promotion 328000 498000 621,000 911,500 1,029,500

Transportation 1800000 1980000 2,178,000 2,395,800 2,635,380

Office Rent 420000 462000 508,200 559,020 614,922

Utilities 48000 52800 58,080 63,888 70,277

Maintenance 12000 13200 14,520 15,972 17,569

Depreciation Building 240000 240000 240,000 240,000 240,000

Depreciation Tubewell 1999.92 2000 2,000 2,000 2,000

Depreciation Equipment 60000 60000 60,000 60,000 60,000

Depreciation Office Furniture 60000 60000 60,000 60,000

60,000

Total Operating Expense 4541999.9 5,097,200 5,643,920 6,400,512 7,031,213


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Income Statement

Year 01 02 03 04 05

Interest

expense

1746528 1,746,528 1,746,528 1,746,528

Net income

before tax

4839900.1 4571131 7,046,149 10,013,416 13,963,651

Tax(0%) 0 0

-

-

-

Net income

after tax

4839900.1 4571131 7,046,149 10,013,416 13,963,651


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Preparation of Cash Flow and Calculation of IRR and NPV

Year 0 Year 1 Year2 Year3 Year4 Year5

Cash

inflow

Cash

outflo

w

Cash

inflow

Cash

outflo

w

Cash

inflow

Cash

outflo

w

Cash

inflow

Cash

outflo

w

Cash

inflow

Cash

outflo

w

Cash

inflow

Cash

outflo

w

Sales

29,70

0,000

35,93

7,000

43,48

3,770

52,61

5,326

63,66

4,588

Cogs

20,31

8,100

24,52

2,141

29,04

7,173

34,45

4,870

40,92

3,196

Opera

ting

Expen

se

4,542

,000

5,097

,200

5,643

,920

6,400

,512

7,031

,213


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Infl

ow

Outfl

ow

Inflo

w

Outfl

ow

Inflo

w

Outflo

w

Inflo

w

Outfl

ow

Inflo

w

Outfl

ow

Outfl

ow

Outfl

ow

Tax -

Interest - 1,746,528

1,746,528

1,746,52

8

1,746,52

8

Capital

Investm

ent

9,05

1,50

0

Total

-

9,051

,500

29,70

0,000

24,86

0,100

35,93

7,000

31,365

,869

43,4

83,7

70

36,437

,621

52,61

5,326

42,60

1,910

63,66

4,588

49,70

0,937


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Inflo

w

Outfl

ow

Inflo

w

Outfl

ow

Inflo

w

Outfl

ow

Inflo

w

Outfl

ow

Inflo

w

Outfl

ow

Outfl

ow

Outfl

ow

Cash

Flow

(9,0

51,500)

4,83

9,900

4,57

1,131

7,04

6,149

10,0

13,416

13,9

63,651

Add

Back

Dep

362,

000

362,

000

362,

000

362,

000

362,

000

NetCash

Flow

(9,051,500) 5,201,900 4,933,131 7,408,149 10,375,416 14,325,651


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Net Present Value = 14,893,551 taka,

Internal Rate of Return = 66%


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Balance Sheet

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Asset

Fixed Asset

Land 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000 2,400,000

Building 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000 6,000,000

Acc.

Depreciation

240,000 480,000 720,000 960,000 1,200,000

5,760,000 5,520,000 5,280,000 5,040,000 4,800,000

Equipment 300,000 300,000 300,000 300,000 300,000 300,000

Acc.

Depreciation

- 60,000 120,000 180,000 240,000 300,000

240,000 180,000 120,000 60,000 -


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Balance Sheet


Furniture 300,000 300,000 300,000 300,000 300,000 300,000

Acc. Dep - 60,000 120,000 180,000 240,000 300,000

240,000 180,000 120,000 60,000 -

Deep Tube

well

50,000 50,000 50,000 50,000 50,000 50,000

Acc. Dep - 2,000 4,000 6,000 8,000 10,000

48,000 46,000 44,000 42,000 40,000

Total Fixed

Asset

8,688,000 14,326,000 13,964,000 13,602,000 13,240,000


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Balance Sheet


Current

Asset

Cash 11,740,500 5,581,900 5,626,199 8,101,217 11,068,484 15,018,719

Intangible

Asset

1,500 1,500 1,500 1,500 1,500 1,500

Total Asset 20,792,000 29,971,400 35,653,699 37,766,717 40,371,984 43,960,219

Liability

Bank Loan 14,554,400 14,554,400 11,643,520 8,732,640 5,821,760 2,910,880

Total

Liability

14,554,400 14,554,400 11,643,520 8,732,640 5,821,760 2,910,880


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Balance Sheet


Owner's

Equity

Capital 6,237,600 6,237,600 6,237,600 6,237,600 6,237,600 6,237,600

Retained

Earnings

9,179,400 17,772,579 22,796,477 28,312,624 34,811,739

Total

Owner's

Equity

6,237,600 15,417,000 24,010,179 29,034,077 34,550,224 41,049,339

Total

Liability And

Owner's

Equity

20,792,000 29,971,400 35,653,699 37,766,717 40,371,984 43,960,219


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Sales Revenue

Description unit year 1 year 2 year 3 year 4 year 5

Weight of

PustiBlock per

packet(kg)

kg 20 20 20 20 20

Sales quantity per

month(no. Of

packets)

number

7500 8250 9075 9983 10981

Weight per

month(ton)ton 150 165 182 200 220

Selling price per

packet(wholesale

price)

taka 330 363 399 439 483

Total annual sales

revenue29,700,000 35,937,000 43,483,770 52,615,362 63,664,588

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