Political Factors And Legal Factors Marketing Essay

Political Factors And Legal Factors Marketing Essay smell is a loc on the wholey owned eating place and fast nourishment line of reasoning. It is a medium sizing eating place trading which go away be set in Dhaka which is capital of Bangladesh. timberland is discovered huge touristyity in restaurant military control sector according to Bangladesh period commercialize. fictional character is promised to offer trump graphic symbol solid food to the node. As a result gauge de come out put up their melody by offering wholly in all kinds Chinese, Thai, Indian, tralatitious and fast food. It is constituted upon 4 retainers with equal ownership. The target throw allow range from upper class to lower class client. The mart is demanding outdo fruit with affordable terms so for that circumstance prime(prenominal) get out ensure that from each one e very client provide receive topper price and best product. Quality depart follow up all the legal issue to regi ster with national board of imposeation (NBR). They ar supplying to keep somewhat fund for integrated social responsibilities on their sales gross. This business bequeath initially recruit 25 part time and entire time employees to run the business. Quality is encour be ond functional finance to use worth TK.5000000. And as effecting to achieve gross benefit headway margin 35% and it testament lead to peak in feeler twenty-four hourss.2.0. clientele Description2.1. History and BackgroundQuality leave be a medium size restaurant business which go out be located in Dhaka which is capital of Bangladesh. The history of restaurant diligence in Bangladesh not very long. The restaurant business assiduity is very agonistic in terms of price, value, promotion, emplacement. Quality volition be a unique apprehension in Bangladesh. There argon substantial way out of restaurant is operating in Bangladesh that ordain compete with quality. There atomic bend 18 few tur ns of competitors exist in the current market what is called KFC (Franchise), pizza Hut (Franchise) Nandos (Franchise) is leading the Bangladesh restaurant industry. That business has already allotd the large number of market fates. In 2003 pizza Hut and Kfc in 2006 was erected their business in the Bangladesh market. This is only DHAKA ground supermarket chain. There is few to a greater extent restaurant exist in current market such as BFC, FFC, Boomers, AW restaurant, chieftain World. But they be not performing wholesome in the current market to satisfy the guest with their desire they keep failing to encumber sufficient market share callable to their strategic drift. But KFC and Pizza Hut allow be a long challenge for Quality to compete.2.2. MissionQuality is promised to offer high quality food, dependable go with affordable price.To provide parvenu job for the local community.To stag comely gelt for consumer.2.3. ObjectivesTo make even in few months in ambit up.To start qualification profit after few month times.To raise revenue year 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 serve to the customer. Quality will management not only on single product establish retail business but in addition verities of products. These are as followsChinese foodThai foodIndian foodTraditional food andFast food2.5. Supplier learningSupplier has defined as key factor for a business to improve their buying organization. any the suppliers should base on quality reliability, on time delivery and the cognitive operation of produced which managely influenced to satisfy the customer with affordable price, Product availability with customer desire. Quality will make relationship with some(prenominal) supplier to chip in their product quality and price control and supply chain includes nearly of them are from Bangladesh and few of them from Africa. In restaurant sector major suppliers of good produce in Bangladesh is SMEs. Therefore Quality is planning to collaborate with SME (Approximately SME rent 70 suppliers in bakery, fast food, vegetables, beef, and volaille. There are few more(prenominal) such as Shiblee hatchery farms will provide all types of traditional food.2.6. Business OwnershipThere are contrastive types of business which is discussed by( lonhnecker, 2010) which is brand cutting business, take over running business, franchise and family business. Therefore quality will be a innovative business which is not exists in the market for retail services. The suitable ownership in start- up business may depend on owner determination regarding business profitability, risk and competitive advantages and value of business according to (foss and lien, 2010). There are three types of business those are sole traders, league and spate. Quality will follow partnership business schema. Partner ship business will economic aid in manduction capital between partners, more flexibility to run the business, shared responsibility, gentle to make decision. This business will consist with four partner .Every partner will share 25% capital.3. Business hazard3.1. Target market segmentationThe target market segmentation commonly can be segmented on the basis of customer characteristics. These are followsGeographic ( includes demesne, region, counties, customer density, climate)Demographic (includes age, gender, vivification-cycle, income, social class)Psychographic ( degree of loyalty, occasions, interest and hobbies)3.1.1. Geographical segmentationThe everlasting(a) place of quality to do business in Dhaka city because the great unwashed are gathered there from every corner of the country as well as outside of the country where the mess way out at Least 20 hours in a day. Quality has a prospect from the large number of piece of workforce, good communication for deliveri ng raw materials to opposite 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(p) and starved looks for nearest fast food or restaurant almost 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 party.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 . Qualityconcern to launch their product with speculateing those kinds of consideration. Because different age people involve different food criteria to eat. Example most school student aged 15 years has attraction to fast comparable burgers , fries , ice-cream etc because of their taste choice even though. They will not be able to pay that sum of money they usually get allowance from their parents. Middle a ge 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 exact to develop their menu according to those consideration .3.2. Competitors analysisSome electric 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, portent business strategies. Quality focus on their key competitors KFC and nandos both are located in Dhaka city and they their main competitors in that industry .Competitors analysis are as followsTable 1ContentCompetitors 1 ( KFC)Competitors 2 ( pizza hut)LocationDhaka , BangladeshDhaka ,BangladeshEstablished particular dateSeptember, 2006 in BangladeshMay, 2003 in BangladeshStrength elevated brand equityHigh business growthLarge amount of cash flow from franchise. getable capital reserve to expand the busines sWorld wide intelligenceHigh brand equitySpecialized in Pizzaeatery services and delivery servicesGood reputationWeakness sales margin declineLabour turnover due to lack of luckHigh obligation from parents companyOnly found on chicken productUnplanned setBased on pizza servicesHigh overhead existUnplanned pricingFocused on same ingredients in everywhereOpportunityMarket leadership due to high brand equityTargeting all aged peopleInteracting with good suppliersNew market leadershipIntroducing with new ingredientsOpportunity to reduce the price to make it more affordableThreatThreat from other competitors in that industrySignificant change in customer demandsNew rules and enactment impose by governingThreat from other competitors in their revenueChanging in customer demandsNew presidency policiesMarket shareCovering 40% in BangladeshCovering 36% in Bangladesh3.3. PESTEL analytic thinking3.3.1. 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 choose government .The political issues in Bangladesh is much viable than the last decades to depict a new business. Elected government usually impose 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. political economy FactorsEconomics factor which affects on the running of the business activities. It is undertaken In aver to forecast the success of the business or evaluating the business risk involves political economy activities. It includes unemployed of the country, buying power of consumer, demand and supply, inflation, economic resource, income level of personnel. Bangladesh present tense compar atively economically viable to invest than all other exploitation country. Because of low labour terms , Bangladeshi labour gets average 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. cordial environment factorThe social environment factors defines the combination of customs , destitution, 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 immersion on those factors3.3.4. Technology FactorIn major way , businesses are frequently developing their technology to platform to developing their business plan. present tense people have more attraction on using social ne twainrking by dint of Internet , all the businesses may get opportunity to air by Internet, business can use EPCS( electoral point of domineering sales) to evaluate their right stock , card payment against sales to help out the consumer on holding cash. So quality is concentrating on those issues.4.0. selling STRATEGY4.1. Marketing Research4.1.1. Primary ResearchPrimary inquiry is short term decision lick. It includes observation on customer behaviour, fetching face to face interview, focus group, online survey about relevant business. watching 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 exist, 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. junior-grade questionSecondary look into is a collection of data what is already exis ts. Secondary explore 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 are 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 finish 40% of market and pizza hut is covering 36% of market shares.4.2. Marketing PlanCombination of several market elements is called selling 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 th e process of implementing marketing schema4.2.1. Product StrategyThe product strategy is usually reinforced through marketing research. In terms of customer ineluctably and desire, every company must amend their product strategy. The product concept describes the products details it 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 friendship 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 smell of a business to set up pricing .4.2.2.1. Cost 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. node based pricingThis strategy is determinedby what a business assume customers will be prepared to pay . This strategy refers brainstorm pricing which usually help to profit market share, it offers theopportunity to increase the price when the objective has been achieved.4.2.2.3. Competitors based pricingBasically markets are full of strong competition . The customer al slipway buys from the cheapest provider and who is providing great customer services. But the customer may make their who offers reasonable price with ge t out 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 competitors4.2.3. 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 promote their food menu, Quality is intending to use media to advertise their food to take in 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, Local newspaper ( Prothom- alo most popular newspaper in Bangladesh ). In initial market plan, Quality will give out a discount card on buying food as well as discount on age range. Quality will introduce with special offer to promote their food menu as like buy one main descriptor then second one half price. Quality will 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/ dispersalPlace or distribution define how the product and services gets to the customer for consumption ( kotler, killer 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 collateral marketing and channel 3 direct marketing.Channel 1 has two intermediary levels whole seller, and retailer. Normally wholesaler buys an d 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. This 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 stand address 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 urban center Corporation are as follows, copy of the companys articles, statement of bank solvency, corporation tax code number, photographs and name 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 identification number (TIN code) for the new company. For the VAT purpose, all the business needs to be registered separately with VAT commission (under NBR). Quality will go through all those process to launch their business square-toed pathway.5.3. Organisation graphOrganisational chart are used in linkup 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 difference (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 char t 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 expected 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. initial 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. corporal social responsibilityCorporate social responsibility is the process to brood 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. monetary planThe financial plan consists of a year profit and loss assumption, a cash flow assumption, equilibrate sheet assumption, 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 followsTable2 anticipate Cost of sales( Raw materials, equipment, furniture, packaging, insurance)TK. 4000000Rent ( FOR YEAR 1 in advance)TK.1000000 maestro FEESTK. 100000Sales and marketing costTk. 200000Technology feesTk. 1000006.2. Financial indicatorsthe sales projection indicates, sales operating expenses, collection days, and inventory turnover. The sales growth will be 150% each year. QUALITY is planning to keep gross margin 35% each year.http//www.bplans.com/benefits_administration_business_plan/images/8df5decd340f4ab28c2048fa268c889b.png7.2. Break even out 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 unyielding cost is covered by sale. So QUALITY is assuming that their refractory cost will be TK. 200000 (Equivalent to $20000), so QUALITY need to make their sale at least TK. 2000000 to make a breakeven point.