Independent University, Bangladesh

REPORT
ON

NEW PRODUCT DEVELOPING PLAN

A STUDY ON NEW LUDU INTRODUCING
MBA 506: Marketing Management Spring 2012

Submitted to Mr. Tarafder Rafiqul Islam Course Instructor Submitted by Mohammad Nazmul Hossen Student ID: 1221580 On behalf of the Group Diesel

Date of Submission: April 04, 2012

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REPORT
ON

NEW PRODUCT DEVELOPING PLAN

A STUDY ON NEW LUDU INTRODUCING

Detail of Group Members

Sl.

Name
3

Student ID

Signature

1 2 3 4 5

Mohammad Nazmul Hossen Ashraful Hoque Nizami Md. Sazzad Hossain Mohammad Ariful Islam Asma Ul Husna

1221580 1221537 1221538 1221517 0410092

Letter of Transmittal

Date: February 20, 2012

Dr. Tanvir A. Khan

Registrar & Professor Independent University, Bangladesh

Subject: Submission of Report on Income Tax in Bangladesh.

Dear Sir,

Here we are submitting report on Income Tax in Bangladesh prescribed by you in advising for our report in your course MBA 515, Legal and Ethical Issues in Business. For this purpose, we have gone through Internet, Different books, articles, and journal, interview of related persons for collecting necessary information of the assigned topic.

Please accept our report and call us for any further information at your convenient time and place.

Yours truly,

Mohammad Nazmul Hossen ID: 1221580

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Executive Summary

The paper explores the introducing the position of Income tax in Bangladesh that has been collected less amount for the meet up the public. The main objective of the report is to find out the situation of tax collection from the TIN holders in Bangladesh.

National Board of Revenue (NBR) is the responsible organization to collect Income Tax. Though NBR is trying for increasing the revenue collection but they can not success for the aversion and corruption of Tax Administration. We have assumed a hypothesis that the collection of tax is low. For testing this hypothesis we have broadly discussed on the last 10 years income and public expenditures of the country and discussed the expenditures on the basis of sector wise. We also have taken interview from 10 non-taxpayer TIN holders to get practical knowledge about the less collection of tax. After the short discussion on the interview we have identified some indicative findings. The report has also been mentioned the actual findings from the study

From the discussion about various perspectives there are some suggestions for developing the collection of tax revenue in Bangladesh. With reference to research evidence, that has been studied from the nontaxpayer TIN holder on the basis of some specific questions about the tax collection. Now that can be turned to the role of the study and analyze the topic with efficiently and effectively.

Table of contents

Particulars 1. Introduction 2. Literature Review 2.1 Tax in Bangladesh 2.2. Introducing Online Income Tax Calculator 2.3. Income Tax at a Glance in Bangladesh 2.4. Income Tax Authorities 2.5. Sources of Income 3. Methodology

3.1. Selection of the topic

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Page No. 01 01 01 02 02 02 03 03 03

3.2. Sources of Data

3.4.3. Target Population

3.4.4. Sample Size

3.4.5. Sampling Techniques 3.4.6. Method of Data Collection 3.4.7. Tools used

4. Hypothesis of the study

4.1. Testing the hypothesis 4.1.1. Tax payers in Bangladesh at a glance 4.1.2. Government Income and expenditure

4.1.3. Overall Expenditure Structure

4.1.4. Questions for Non-taxpayers TIN Holders

5. Indicative Findings 6. Actual findings

7. Conclusion

04 04 04 04 04 04 05 05 05 06 08 09 12 13 15 16 17 18

8. Recommendations
9. Bibliography 10. Appendices

Development of PDAware Project Management Software began in July of 2000 and the first version was released for beta testing in January 2001. It was developed to significantly improve the way todays workforce manages projects. With the rapid growth of PDA (Personal Digital Assistant) use, the product offers tremendous advantages to professional project managers, as well as the thousands of other workers assigned the responsibility of managing projects every day.

PDAware will be positioned as a high-end software package that enables project managers to review, maintain and synchronize their project data via wireless technology. There is currently no other company that produces this type of software with the management features weve developed.

It will be packaged and sold in retail markets where PDAs are sold, sold through traditional online software vendors, sold via the PDAware company website, sold via targeted direct mail campaigns, and also sold through cooperative agreements with leading PDA manufacturers.

The potential market for the product is very promising. Palm Computing had sold over 8 million units as of August of 2000 with an estimated 12 million total units in the market from all manufacturers.

Our financial projection for Year 1 is a net loss after taxes of $174,000. Year 2 is projected at a net profit after taxes of $1,019,031. Year 3 is projected at a net profit after taxes of $1,165,987.

The Management Team members have strong backgrounds in both computer hardware and software development. The CEO was the former Business Development Officer for XYZ Company, the VP of Product Development was formerly the Chief Software Engineer with ABC Company, the VP of Finance was previously Controller for CDE Widgets, and the VP of Marketing was formerly the Sr. Marketing Director for EFG Software.

The $1.2 million we are seeking will be used to begin production, packaging, and marketing, and for short term capital and overhead needs. An additional $125,000 is being provided by the owner.

1. Introduction
Game is one of the most important elements for our entertainment. We are enjoying the game in our leisure time. Ludu is one of the interesting games that can play between or among all ages people even youngest and oldest one of a family. We want to introduce the Ludu by a lengthy modified that will be interesting and learning one for literate persons. We are five members to start this new product business by manufacturing and marketing in whole country. The name of the business organization will be Diesel Learning and Entertaining Ludu. All initial financing will be collected from the five partners of the business. We will emphasize the marketing operation for growing the organization within a short time. We will also discuss on the Situation analysis in where there will be explained on the Target market, Segmentation, Positioning as well as the SWOT analysis on our new business.

1. Situation Analysis
Diesel Learning and Entertaining Ludu is the new organization in manufacturing and marketing in the country. Though Ludu is familiar product for everyone but our product is different and

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learning product than the traditional one in which it is prepared on the basis of map of Bangladesh and 64 Districts are used with historical place, renowned persons and reputed foods. It is one of the learning games for the school students; the product was taken for our business on the basis of various situations which are following below.

1.1.
}}

Target Market

A target market is a group of potential customers that the business has decided to aim its marketing efforts and serve its offerings. They (the target customers) are usually chosen because they have unique wants and needs. The market of the product is countrywide in where the people of rural and semi-urban are playing Ludu. The people of rural in where there is scratch of entertainment for passing the free time of people may play Ludu. As this is the modified and modern version of Ludu so some of the people will play this game in the city. So our target market will be following.

1.1.1. Rural region people:

As rural people are playing the traditional game more and there has less sources of entertainment they will be our main target customers for introducing the product and sales this.

1.1.2. Country (District) City/Semi Urban:

In the semi-urban area, some of the people are interested to play traditional Ludu. If we develop the product then the number Ludu players will increase by getting this interesting game.

1.1.3. Least Developed area of Divisional City

Some of the people hailing in least developed area have a few sources of entertainment. They are utilizing their extra time in various irrelevant activities. Some of the slum of Dhaka City, Chittagong City and other mega city are the target of us.

1.2.

Segmentation:

Segmentation is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand. Its objective is to design a
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marketing mix that precisely matches the expectations of customers in the targeted segment. Some major bases/variables of segmentation for our business are following below-

1.2.1. Geographical Regional factor in geographical term will be used for the market segmentation. Rural, Semi-rural and urban are the three regions for the easily marketing and distribution for our business. In the rural and semi-urban area, the people will play this game for passing their time and the students will encourage this game for the updated and interesting one.

1.2.2. Demographic segmentation This is a segmentation strategy based on sex, age, gender, income, occupation, and education. All aged people may play the game but from 9-18 years boys and girls and all households women people are the main target people because they have some leisure times and use that by playing this. Single and Combined family can use this product because most of the family members want to enjoy within the family as the entertainment for which the product is suitable. Lower income, Lower Middle income people are the main target people for the product because there has lack of sources of entertainment and traditional Ludu is playing this type of people. Literate workers, students, some other lower professional persons are the targeted occupational persons.

1.2.3. Psychographic segmentation This is a segmentation strategy based on especially personality and attitude measurement. For instance, consumers can be segmented in their lifestyle because most of the poor and lower people are playing the traditional Ludu and they will play with the encouragement. The situation of socio-economic of the people is not so good are also one of the segment of our market.

1.2.4. Behavioral segmentation This segmentation strategy focuses on the variables like occasions, benefits, user status, usage rate, loyalty status, readiness stage, and attitude toward the product. Some of the rural and semi-

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urban people will play the game regularly and occasionally as the people are playing the traditional Ludu. Some of the other non-users are another segmented group for the business who are not playing the traditional Ludu. As the product is the different from the traditional one so we can encourage the existing users and potential users for playing the game.

1.3.

Positioning

This is the introducing of new products; new product plan needs to be focused on differentiation and positioning strategies and tactics. Effective product positioning is necessary to success; even more so when marketing a new product. For the positioning we will survey in different 10 Upazilas from different districts about the traditional Ludu and our product initiatives. We will want to know about the branding of our product considering as new marketers as well as the potential product quality. We will understand from them about the benefit of the product and focus on our pricing strategy as an important part of our positioning. As this is the distinctive product and knowledgeable one so we will want their perception about the product.

1.4.
Strengths

SWOT analysis

One of the major strength of our company is the innovative idea for our product. We are offering not only a means of entertainment but also a creative way of learning and accessing knowledge. By playing our Ludu, students can generate or have idea of the different districts of Bangladesh, and also the important features of the districts. This would be a good and helpful way of learning, and have a great potentiality to be recommended and accepted by the parents. The innovative and totally new way of designing our product ensures a core competency for us. Positive image as a customer oriented and public confidence Well Educated, enthusiastic and innovative Entrepreneurs Technical and financial supports of the Development Business by own selves. Weaknesses
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 A major weakness of the company is that as a new entrant in the market, it lacks experience. Improper workload distribution resulting in dependency on few experienced staffs. Insufficient fund for advertisement and promotion Choosing the exact and appropriate market/customers, deciding the proper and cost effective supply and distribution channels, control on the production and operational level can be a challenge for our company. Opportunities As there is no similar Ludu as like ours in the market now, there is a huge probability to be accepted and successful. Innovation of new instruments and expansion of new Ideas in the business Can encourage to retailers to take and sell this new innovative product

Threats Competitors may imitate our idea or product and negatively affect our business. If any economic recession or inflation occurs in the country, then it might have harmful affect the sales of the product.

1.5.

Product Offering

The product which we are going to launch for doing the partnership business is Ludu for which there will be used a board, gutee. In the board there will be the map of Bangladesh in where 64 districts will be used. There will be also used the historical places and renowned foods of different districts for creating more interesting to the users. The retail price of the product will be Tk 50 and whole sale price will Tk 45 per board.

1.6.

Financing

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The budget for launching product in the whole Bnagladesh is TK 20,00,000.00 for which every partner of the business will contribute Tk 4,00,000.00. From the beginning of our business we will collect the whole fund from each after preparing a partnership deed. We will open a bank account in the title of our business name for which two partners signature will require for any important financial factor.

2. Marketing Strategy 2.1. Mission:

Our mission is to provide our customers a good source of entertainment by serving them our Ludu, and hold a major position in terms of success and profitability.

2.2.

Marketing objectives

To achieve an annual growth rate of at least 10%. To inform target audience about features and benefits of our product and its competitive advantage, the aim is to achieve 75% customer awareness of our product in our target markets within one year. To promote our product through alliance with the schools, social clubs, and retailers in our target markets. To broaden and expand the business with new potential markets and customers.

2.3.

Marketing Mix

Marketing is the nerve for every business organization. The performance of marketing measures the performance of a business organization. So, for creating effective and efficient marketing operation we will use marketing mix i.e. 4Ps that stands for product, price, place, promotion and
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packages. If we emphasize these factors to ensure customer oriented marketing that we can get a better position than we expect. 2.3.1. Product: As we are manufacturer of the innovative and knowledgeable product in Bashundhara so the quality of the product will be ensured by directly us and we will monitor this for maintaining the quality of the paper that is used for preparing board will be better than the existing traditional Ludu.

2.3.2. Price As this is the new product and unfamiliar so first of all we should introduce the product by very acceptable way for which price is one of the important elements. The people are poor and lower middle income class who are playing the traditional Ludu and are the main target customers. The price is the important factor to purchase this. We will fix the price by retaining small portion profit after adjusting of all costs. If the demand of the product gradually increases we may increase the price after 3-6 months.

2.3.3. Place In the target market we have mentioned that the rural and semi-urban areas are the main place for the marketing of the product. We will also want to introduce and promote to sell the product in the least developed are of mega city. 2.3.4. Promotion As there has not enough funds for the business so we can use a small portion of total fund for the promotion in the beginning of our business. We will used banners, stickers, poster for our target market. We will promote our distributors to sell more by giving a percentage after selling the targeted amount/product. After 4-6 months when the introducing of the product will be reached to customers, we will give attractive gifts by the token in the packet. As this the knowledgeable product so we will encourage the students to play this by campaigning in different primary and secondary schools. In this campaigning we will distribute some boards among the 3 brilliant
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students of each class and some others students who involve with different cultural and aspiration groups. 2.4. Sales and Distribution

Without smooth and efficient distributions the business of manufacturing and marketing can not be successful. For each district we will select a distributor hailing in central position which is the distributor of stationary items or foods and Beverage items (eg. Pran, Ruchi, BD Foods, Bashundhara paper etc.). The distributors will sell the products by their sales representatives who are working for their existing products for which we will contribute a small portion of their salary and benefits. Some of our employed marketing representatives for the market will encourage them to sell more and providing tips for that. 2.5. Human resources

For every business organization there is necessary for skilled and efficient human resources. As our organization is new and we are not enough experienced about that so we will hire some of the experienced persons for the relevant sector. We will employ 20-25 persons for monitoring the marketing, sales and distributions and promote retailers for selling more by introducing this innovative and knowledgeable product.

3. Financial Projections:
In every business organization the target of entrepreneurs is to get a large portion of market share to achieve its objectives. As the product is new and traditional Ludu producers are the main competitors so we need increase the sales volume in every day, week, month and year.

3.1.

Sales Forecasting

Whole sale Price : Tk 45 Retail Price Increase Sales Increase Price : Tk 50 : 15% in 2013 and 20% in 2014 : 10% increase in Sales price and 5% increase in Production for the inflation

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Year 2012 2013 2014

Sales 180000 207000 248000

Amount 81,00,000.00 1,02,46,500.00 1,36,40,000.00

Cost of production 54,00,000.00 65,20,500.00 82,08,800.00

Gross Profit 27,00,000.00 37,26,000.00 54,31,200.00

16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 2012 2013 2014 8100000 6520500 5400000 10246500 8208800 Sales COGS 13640000

3.2.

Expense Forecasting
Amount 14,00,000.00 2,50,000.00 2,50,000.00 Break Even position : Tk 45.00 : Tk 25.00 : Tk 10.00 : Tk 14,00,000.00 : 1,40,000 units
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Particulars All fixed Asset Raw materials Promotion 3.3.

1. Revenue per unit 2. Variable Cost 3. Contribution Cost 4. Fixed Asset 5. Break -even (4/3)

4. Implementation Control
4.1. Control form Monitoring and adjusting of implementation of the marketing plan

The market will be monitored by the employed representatives. Whenever the partners of the business are free from work they will utilize their time for monitoring the market position. For ensuring the product quality information will be collected after every 6 months from market by observation and talking with wholesalers, retailers and ultimate customers. We will also emphasize to work on the basis of our mission and objectives. 4.2. Contingency plan

Contingency plan of the product is a statement of some actions that will be taken if a specific contingency occurs. Action choices are made contingent on information about the future state of the world. If there is a created new competitor to imitate our product in the market, the contingency plan is to lower prices/ensuring better quality of our products and increase the R&D budget 10%. Introduction of a new product by a competitor is therefore the contingency event. A contingency plan is a flexible, low-commitment plan that provides for follow-on information gathering and situation monitoring.

5. Conclusion
New product development should start with an insight based on consumer needs. Throughout the New Product Development process, market research is a valuable tool for our business to check viability and minimize the risk of the product launches. Being a new business organization, it is essential that we have to develop new products using the insights of consumers across markets and cultures. This ensures the products are relevant to a large number of consumers and will deliver the maximum return when launched. As the product is distinct and different from other traditional product so the maximization of return on investment for us is possible and results will be positive, satisfied and loyal consumers.

6. References:

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