rainbow final

8/10/2019 Rainbow Final

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MGT368.4

Business Plan:

Rainbow Paints Ltd

Submitted by: Sakibul Huq

– ID: 111 0073 030

Kaniz Fahmida – ID: 111 0075 030

Nadeem Ahmed Khan – ID: 111 0232 030

Tasnim Mahbuba Rahman – ID: 111 0231 030

Submitted to:Faisal Wali (FsW)

Senior Lecturer, North South University



Introduction• We are preparing to launch a new product line in the

painting industry of Bangladesh, Rainbow Paints.

• Targeting specific segments in the consumer and businessmarkets.

• Looking for opportunities provided by decorative, industrial

and marine sectors in the paint industry of Bangladesh.



Head office & FactoryThe head office of Rainbow Paints is situated at Motijheel C/A and

the factory is located at Manikganj.

As it is show n on the Goog le Map, our factory is loc ated at the Dhaka – Ar icha

Highway, 60 ki lom eter away from the capita l ci ty.



Vision, Mission & Goal

• Vis ion: Our vision is to become a world class paint manufacturer and

lead the paint industry by establishing itself as a producer with the finestmanufacturing practices, through outstanding product quality withdiversification in different areas, innovative and eco- friendlyapproaches in all the functions that are necessary to keep its customerssatisfied.

• Miss ion: Our mission is to capture at least 10% market share within the5th year through producing quality products and ensuring good customerservice.

• Goal: The primary goal is to minimize the losses and gain maximum

market share without expecting any profit during the first year. Then itstarget is to become one of the leaders of paint industry in Bangladeshand become a familiar and trustworthy brand name to consumers.



PESTEL Analysis



POLITICAL

Policies Taken by Government to ease industry:

• Take assistance from extended administrative-judicial system.

• Ensure the availability of the working capital from financial

institutions• Imported machinery and spare parts will be exempt frompayment of VAT subject to existing conditions.

• The stated policy of the government of Bangladesh(BDG) is topursue foreign investment actively

• There are no distinctions between foreign and domestic privateinvestors regarding investment incentives or export and importpolicies



ECONOMIC

• Stability of the current economy: In today’s economic scenario

in Bangladesh we are experiencing a pretty stable. The country

has experienced an economic growth of 5.6% in the last couple of

years.

• Exchange rate stability and Accessibility of Credit: Exchangerate in remained in between 85-75 taka per $1 in the last decade.

Currently the exchange rate is at 78 taka per $1.

• Amount of Disposable Income and Unemployment rate:

Disposable income has increased to 31079.56 BDT in 2014 from

29606.81 BDT in 2013. So, purchasing power has also increased.



SOCIAL• The annual population growth rate of Bangladesh is 1.2%. So,

every year this increase in population opens newer opportunity forour company.

• The main customer group for our company is 25-54 age groupwhich has the highest growth rate is 37.6%

• Generational shift also has a positive impact on our product. Newergeneration is more likely to experiment unlike previous generationwho stick to traditional brand.

• Attitude of the people of our country are changing i.e. Now a dayparents want their children’s room decorated in a different way.Our rainbow paints will fulfill such demand.



TECHNOLOGICAL• Cool roof- We have used cool roof or zero VOC energy efficient

roof covering to keep interior cool

• Three Wet Paint- it ensures easy application of paint with this

process one can use the second layer of paint on the first wet layer.

It consumes time by 20%.

• New Technology in Horizon: The new technology in line is called

self-cleaning Paints which has the ability to purify itself and resist

counter attack against the harsh chemical used in pints.

• Competitors’ Unique Technology: One of the biggest competitive

technological tool Of Berger is their interactive website. Berger has

a very user friendly and high interactive website.



ENVIRONMENTAL

• Bangladesh ranks higher as the nation most vulnerable to weather

• In the last few decades, we have extensive floods, cyclones, tidal

surges, tsunamis etc.,

• Corporation Agency (JICA) and UNICEF has stepped forward to better

handling of solid waste management

• Bangladesh is adopting “green” or ecological products and in

supporting renewable energy



LEGAL

• Discrimination Law: It ensures equal opportunity in theworkplace according to Civil Right Act of 1964 by omitting anykind of discrimination from the workstation

• Patent: every company’s intellectual properties such as- brandname, logo, brand value is protected from piracy through patent(Patent Act 2012)

• Consumer protection: Consumer protection act 2009 protectsconsumer rights by giving them the right to know about theproduct, to complaint against it. It also held company liable forany harm to customers



LEGAL (Cont.)

• Health and Safety Law- Health and safety law includes both the

customers and the workers. So, a company must ensure the

safety of consumers and workers in terms of harmless product

and working environment

• Data Protection-In absence of such right any company would

loose their competitive advantage. So, A company can protect its

confidential data from the outsiders. Law punishes any individual

who is involved in leaking such news



Industry Analysis

• An overview of the painting industry of Bangladesh:

Already too many competitors in the market. The encouraging factor: Bangladesh’s paint industry has been growing at a

double- digit rate for the past several years.

A recent study reveals its market size based on demand is estimated at BDT

1,000 crore and domestic production capacity BDT. 920 crore. The demand-

supply gap, according to the study, is BDT. 80 crore.

This study was conducted by leading private

commercial bank - Prime Bank.

• Competitive Review: So many companies including gigantic competitors like

Berger and Asian Paints are already serving the customers of Bangladesh. So

understanding the present condition of major competitors is very important.



BERGER

• One of the oldest names in the paint industry.

• One of the most technologically advanced companies in

the country.

• Has heavily invested in technology and research &

development (R&D) compared to any other manufacturer

in paint market.

• The absolute market leader in Bangladesh paint industry

with 51% market share.



ASIAN PAINTS• Operating in Bangladesh since 2002 with its world class

manufacturing facility which is located at Gazipur.

• Has a capacity to manufacture over 8500kl of paints annually

• They have 14% market share in Bangladesh paint industry.

• Has set up over 75 Color World outlets in the country to offer wide

range of shades to the consumers.• The 1st company in Bangladesh to introduce the “Fixed Credit”

strategy for the dealers.



Other Leading Companies

• Elite Paint: Operating in this particular industry foralmost 57 years.

• Roxy Paint: Manufacturing quality paints since 1953.

• Aqua Paints: Joined the paint industry of Bangladesh in

2001



SWOT Analysis of RAINBOW PAINTS



Product Review

• Decorative Paints:

Main targets: Household segment.

Will be delivered through dealer networks.

Major revenue earning area.

Total 11 types of products in this category.

Premium Synthetic Enamel, Glaze Enamel, Weather King Exterior

Emulsion, Elegant Silk Emulsion and Harmony Distemper.



Product Review

• Industrial Paints:

Main target: Industrial users.

Main customer groups: Garments factories, Chemical

plants, Fertilizer manufacturing plants and Consumer

durable manufacturing plants.

Main products: Industrial Enamel and Industrial

Aluminium.



Product Review

• Marine Paints:

Main User Groups: Dock yard, BD Navy and Passenger

ships.

Main products: Marine Enamel, Red Led Primer and Red

Oxide Primer.



• Size of the business:

Delivering products to 12 districts, including Dhaka, Chittagong

and Sylhet.

Targeting to increase the production by 2nd year and reach every

corner of the country.

• Office Equipment: Central air conditioning system

Transportation facility for office employees



Production PlanWe have subdivided our production plan into certain

categories. Each category describes each task.



Production Plan (Cont.)

Ordering Automatic Paint Canning machine worth BDT. 30000000

from China during November 2014. Hopefully we will receive themachineries by January 2015 and start our production by March 2015.

We will start ordering raw materials by Feb 2015 from some reputed

suppliers. Chemico Trade, Radiant Energy Ltd., M/s Papon Trade and

Mostafa Enterprise will be our main suppliers.

We are going to train our workers so that they can use the machines

efficiently. We will also inspect half-finished goods and finished goods

to make sure we deliver high quality products.



Production Plan (Cont.)

Month Number of Units Produced

March 50000

April 50000

May 40000

June 40000

July 30000

Aug 30000

Sept 60000Oct 60000

Nov 80000

Dec 80000

The following table shows our estimated production during the 1st

year of production (2015).



Production Layout



Phase 1

Phase 2

Phase 3

Initial Groundwork

Finalize & Setup

Make Operational

Operational Plan



Operational Plan Flow Chart



Marketing Plan

The marketing plan of Rainbow Paints Limited is consisted of several phases.

We have tried to breakdown each phase and show the detailed breakdown of

tasks.



Organization and HR Planning

• This organization is a result of partnership amongfour entrepreneurs.

• Four of its members have decided on someagreements and will divide the firm’s profit

according to the ration of capital invested by them



Organogram



Organization and HR Planning (Cont.)

• Recruitment process will start with CEO and CFO in April witha salary of 300000 BDT and 150000 BDT respectively. May and

April will be occupied for this whole process.

• On the same month we will also hire staff, Driver, Peon and

Assistant for CEO.

• Technical expert will be hired on July for machine

specification with a salary of 1Lac. He will also recruit his own

technical Assistant



Organization and HR Planning (Cont.)

• On July we will also hire Financial manager, CPO and CMO• Then we will hire Production manager, Marketing Manager

according to the need of our company. Everyone will have a

salary consistent with their work

• On every Two Eid our employees will receive 50% of theirsalary as festival Bonus.

• After every one year On January every employee will receive

5% of their salary as increment



Assessment of Risk

• The main weakness for our firm is that we are newcomer in this

industry.

• we have to spend a large amount of money in promotion. Initially

we may face some problem here.

• Technology is updated in every bit of time. It may happen that

new technology comes into market and our competitor gained

that extra privilege and we may lack behind.



Assessment of Risk (Cont.)

• Like every other company, we are going to have a

contingency plan.

• For example: if we cannot survive in the market, we will try

to merge with another company.

• We are going to take the necessary steps to minimize the

risk associated with our business.



Sustainability• To be sustainable and carry our business to future generation we have

to be competitive. To become more competitive we are following the

below steps:

Taking Customer Feedback Survey

Introducing color customization system

Importing automated color mixing machine

Improving employee training process

Conduct idea generation competition

Introducing “Experts help” and “paint calculator” option for our

customers

Hiring experts to analyzing weak spots

Improving the paint canning process

Introducing “Product and service bundles”



Eco Friendly & Ethical Issues

• Try to keep RM & Manufacturing process eco friendly

• Ensure production scrap is not dumped in near areas.

• Try to follow business ethics



Thank Y

u!

rainbow final

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