Buffy Handbag

You can brag, when you have a buffy bag

Vil-Noapara(Khalpar)
Thana - Tarabo, Rupgonj, Narayangonj
Factory Phone # 01738917079
Office Phone# 028402338
Email buffybags@live.com

Name and Addresses of Principals (Co-owners)

1. Md. Mahbubur Rahman
Address: House #242, Road 2, Block F, Bashundhara Residential Area, Dhaka.
Mobile # 01711343161
Email mahbubrahman2012@yahoo.com

2. Anindita Mahmud
Address: 10/C Asad Avenue, Mohammadpur, Dhaka.
Mobile # 01676523196
Email aninditamahmud@yahoo.com

3. Anzabin Hassan
Address: House # 368, Road 9, Block D, Bashundhara Residential Area, Dhaka.
Mobile # 01713083136
Email - alonem.24@gmail.com

4. Rubiya Islam Nitol

Address: House#2, Block-E, Mainroad, Banasree, Rampura, Dhaka.
Mobile # 01676668160
Email rubaiya.islam93@yahoo.com

Nature of Business
Buffy Handbags factory will be a factory which makes different kind of handbags made out
of horns of cows and bulls. This factory is located in Rupgonj, Narayangonj which is an
industrial area consisting of many other factories. We are planning to open the factory and
start the production of these exclusive bags by early 2014. This business is a partnership
consisting of four partners, with equal share of the business. The purpose of this particular
production business is to introduce authentic Vietnamese bull horn bags to Bangladesh
market where it is not available yet for the ladies who like their bags classy. The operating
cost of the business is a little expensive and our main focus is to provide good quality product
in order to get customer satisfaction.
Statement of Financing
As the operating cost of this business is a bit expensive, we will have to take bank loan and
have private investment as well. The start-up costs and financing of the first year will be
financed from the partners personal investment by their family and the loan taken from the
bank. We plan to take a 35 lac taka loan which we will take for 10 years duration. Both
private investment and bank loan is needed to finance this business.
Statement of Confidentiality
This report is confidential and is the property of the co-owners listed above. It is intended for
use only by the person to whom it is transmitted. Any kind of reproduction or divulgence of
its contents without prior legal notice is prohibited.

Executive Summary
This is a full business plan for our handmade bags, Buffy Bags. Buffy Handbags factory
will be a factory which makes different kind of handbags made out of horns of cows and
bulls. Business of medium manufacturing bags has grown successfully in Bangladesh .Buffy
handbags is intended to add more variety to this trend. This business is a partnership
consisting of four partners, with equal share of the business. The purpose of this particular
production business is to introduce authentic Vietnamese bull horn bags to Bangladesh
market where it is not available yet for the ladies who like their bags classy.
From industrial point of view, as the operating cost of this business is a bit expensive, we will
have to take bank loan and have private investment as well. The start-up costs and financing
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of the first year will be financed from the partners personal investment by their family and
the loan taken from the bank. We plan to take a 35 lac taka loan which we will take for 10
years duration. Both private investment and bank loan is needed to finance this business
The key factor in this idea; we know, at present there is no existing business or industry in
Bangladesh which are making Horn made Bags. So it can be an opportunity for us to start
such a new and innovative business in this country. The employees will be well trained to
ensure the perfect production. In the market segmentation part, our first step is to determine
who our target markets are. Just because every woman carries a handbag, so defining the
target markets for your bag business can be relatively easy. We can target customers based on
demographic and psychographic segmentation. We are intending to attract market mavens,
who will actively generate buzz about our products. Aside from this strategy, we will focus
on further promotion after 1st year of production.
There are some challenges for Buffy Handbags will be beating with niche marketing, So, we
will ensure the quality of our products and service and capture the niche market in order to
ensure the feasibility of our business and continue with our production.

Industry Analysis:
At the beginning of our Horn made bags business, we have to first conduct the industry
analysis of this business. Primarily we have to focus on environmental analysis to identify
trends and changes on national and international level and then analyze the industry trend
which can affect our marketing strategy decision making.
From the economic perspective, our Horn made bags business can be considered as
economically profitable business because although its a new business for our country but we
are adding some innovative features and materials with these bags which can attract our
target customers. Moreover horn is an available material and we can get it at a reasonable
price. So we can assume that it will be easy to raise enough profit from this business.
We can use some new technologies for making Horn made bags. All the machineries and
equipments will be imported from China and Vietnam. Moreover we are going to use these
machineries for the first time. So it will be a technology innovation in the bag industry.

As we are going to start a business so we have to be prepared for future legislation. We have
to do our business activities and operations under legal support. We also have to follow all
the restrictions and limitations related to our business activities. Moreover we have to
maintain safety regulations for our business.
After overall analyzing on the basis of economic, technological and legal trends, Horn Made
Bags business will be considered a great opportunity and new innovation in the bag
industry. At present there is no such existing business in Bangladesh where Horn made
bags is made. So based on the existing environmental trends, we can anticipate that this
industry will go only in positive direction, not in negative.
When we are considering about the future outlook and trends of this industry, bags
made with cow horns will no doubt follow closely with the latest trends. It will help to create
a complete new attraction in industry sector. Moreover it will carry out a new trend in bags
industry. Here we are going to present our customers with new designed horn made
bags that will be manufactured using quality materials which ensure durability. We will
design our bags keeping in mind the recent trends. These horn-made bags can be availed in
various designs, sizes and shapes to suit the demands of the buyer and we will manufacture
those according to customers own designs & specifications.
As fashion conscious shoppers look for functional and stylish handbags, our horn-made bags
can have a great demand among them because of its new innovative style.. Even this industry
is being created thinking about customers needs and demands for having a new innovation
and trend in bags which is one of their important accessories.
Main Competitors:
As we are trying to break into the fashion accessory industry, we should know that the
competition is fierce. That's especially true for us because we are going to make handbags, a
fashion item that serves as both a status symbol and an accessory. Although we are launching
a new bag business where bags will be completely made of horns, there are some other
popular or non-popular bags manufacturing companies in Bangladesh such asBata

Apex Ltd

Fortuna

ZAC

CEL

Bag

Panache

Ltd

Leather

Unicon

Packers

International

Solution

Ltd

Ltd

These companies are successfully doing business in this country. Some of these companies
like Bata, Apex Ltd, Fortuna Ltd sell bags in their own stores or outlets and some
companies like ZAC Leather, CEL Unicon Solution Ltd, Bag Packers, Panache
International Ltd supply in different shopping malls, high-end departmental stores or small

and large boutiques. These companies also export their bags in other foreign countries. Thats
why the competition for our new bag industry will be severe but the new trend or innovation
of our horn made bags can provide us the chance to create a strong image in Bangladeshi
bags manufacturing industry.
Besides our own countrys bags manufacturing, other than there are some industries in
foreign countries especially in China and Vietnam, which are involved with horn-made bags
business.
Some of these companies areArtexim Hanoi Co. Ltd:
It is a manufacturer, trading Company and wholesaler. It is located in Vietnam and
established in 2000. Some of its main products are Bags, Purses, Jewellery, Home Decorative
Accessories etc made of Natural and Eco-friendly materials such as Bamboo, Buffalo Horn,
Sea-grass, Taffeta Silk, Mother of Pearl etc. Its main markets are North America, South
America, Eastern Europe, Southeast Asia, Africa and annual revenue is US$1 Million US$2.5 Million.
Yiwu Nuofei Bag & Pack Factory:
It is a manufacturing & trading company and located in Zhejiang, China (Mainland).It has
established in 2007. Its main markets are North America, South America, Eastern Europe,
Southeast Asia, and Africa. It specializes in designing, producing and exporting different
kinds of bags. Its total sales revenue is US$10 Million - US$50 Million.

Htvncrafts Co. Ltd:

It is a Vietnam traditional handmade handbag manufacture company which is located in

Vietnam. It was established in 2004. Their office & store are in Hanoi and workshops are in
traditional craft villages. Its main markets are North America, South America, Eastern
Europe, Southeast Asia, and Africa. Here buffalo horn handbags, bamboo handbags, fashion
handbags, taffeta bags etc are manufactured. Its total revenue is Below US$1 Million.
HUNG NAM JSC:
HUNG NAM JSC is a manufacturing company. It was officially established in 1998.It is loca
ted in Ha Noi, Vietnam and its main markets are North America, Southeast Asia, Mid East, E
astern Asia, and Western Europe. Its main products are buffalo horn bags/purse, lacquer-ware
, stone-carving and bamboo products. Its total annual revenue is US$1 Million - US$2.5 Milli
on.
KIMSON Handicraft Co. LTD:
It is a manufacturing, trading and wholesaling company. It is established in 1993. It has
specialized in producing handicrafts. Its products are bags and other accessories made of
horns, bones, leather, stones and other materials. Its main markets are North America, South
America, Eastern Europe, Southeast Asia, and Africa. Its total revenue is Below US$1 Million.

Market segmentation:
In the market segmentation part, our first step is to determine who our target markets are. Just
because every woman carries a handbag, so defining the target markets for your bag business
can be relatively easy. We can target customers based on demographic and psychographic
segmentation.
As making a bag quite costly, so our bags will be slight expensive then a normal materialused bag. Generally our target customers will be from middle class to high class. Besides we
are thinking to target our market based on customers liking to expense in buying a
fashionable trendy bag and preferring to try a new innovative one. We will mainly produce
our bags based on customer preferences.
We will make casual hand bags or purse for teenage girls who like to use easy moving bags
and want to try a new trendy look bag for her regular use.

Bags which are created from not only with horn but also with leather and finished with
expensive materials will have a different target customer like rich or working women who
normally prefer to use expensive bag accessories.
We will also produce horn-made mens wallet for those who are bored with their traditional
leather wallet and are thinking to use different typed or designed wallets.
Overall we will keep customer choice in our mind when you will design and create our bags
and our main focus will be on it.

Description of Venture
Products
Buffy Horn Bag is 100% made by buffalo horn, it is very fashionable. These bags are easy to
carry. We have many designs to meet requirements of all customers. Offering following
products:Tote Bags
Wallets
Purses
Messenger Bags
Satchel Bags
Service
We offer home delivery service for those customer who order our product by online.
Size of business
This is production base business firm. Our factory will be operated in the (5 katha, plot), at
Naranyangonj at the rate of 15 lac taka per month. Raw materials and general purpose
equipments will be stored within the factory warehouse.
Office equipment and personal

There will be two non woven fabric machines for the processing of the horns which are the
main raw materials for making the bags. We will appoint 10 labors who will be trained to
hand stitch the bags. 3 labors among them will carry the raw materials and inventories to the
warehouse. For their training, we will get a trainer from Vietnam who will give training about
how to make the bags. 5 senior executive officers shall be appointed and their offices will be
above the factory. 5 office furniture sets will be ordered for them. Each set will include a
table, 3 chairs, and a sofa. Apart from that, we will have 5 shelves for files, 5 air conditioners
and 5 laptops for official use. We will provide a car for CEO of the company. A manager for
procurement shall be appointed. A peon will be hired. 6 security guards will be appointed for
the security of the factory.
Background of Entrepreneurs
a) Anzabin Hassan: Currently studying BBA in North South University. This is her first
business venture. She will be an active partner and part of the management.
b) Md.Mahbubur Rahman: Currently studying BBA in North South University. This is
his first business as well. He will be an active partner and a part of the management.
c) Anindita Manmud : Currently studying BBA in North South University. This is her
first business venture. She will be an active partner and part of the management.
d) Rubaiya Islam: Currently studying BBA in North South University. This is her first
business venture. She will be an active partner and bag designer.

Production Plan
Manufacturing Process:
The bags that are produced in our factory are formed with modern, high tech, flexible
machineries which can produce quality and classy handbags. The machines will be imported
from China. The process includes:
Ensuring safety of horns, raw materials and machineries
Processing the horns
Stitching the handbags
Packaging
Store in warehouse
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Machinery and Equipments:

The following machineries are necessary for the bags production:
Floor type Ultrasonic Welding Machine
Ultrasonic Welding Horn, Used on Non Woven Machinery
Names of supplier of raw materials:
Mr. Razzak, Hazaribagh slaughterhouse: For supply of horns of cows and buffalos in
wholesale. We will buy the horns for 45 taka per kg.
Shameem Brothers: For supply of clothing materials. We will mainly buy 1 type of
material from them which is silk. Silk cost around 300 taka per meter.
YKK BANGLADESH PTE.LTD: For supply of zippers and buttons. We will buy
zippers for 25 taka per piece and buttons for 20 taka.
We are guessing the manufacturing cost for producing per bag should be around 200 to 300
taka. As far as the machines are concerned, the equipments we will purchase are enough for
this type of bag production and do not need any other equipment.
Physical Plant:
Our factory is located in Narayangonj where our production will take place. The plot is of 5
katha. It is a 3 storied building with factory on the ground level and the above 2 floors are
used for office. All types of utilities are there like electricity connection, water and gas
connection etc. There will be mainly two types of machineries for production of the bags.

Operational Plan
Description of Companys Operation:
The production is planned to be operated in the rented factory in Narayangonj. Machineries
for the production and other works related to production will be set in such a way so that the
efficiency of the operation is increased and the labors will be given foreign training so that
they could be more productive as well. Some steps of the operation are mentioned below:
Getting the raw materials: Get the raw materials (horns) from Hazaribagh
slaughterhouse, clothes from Islampur and zippers and buttons from YKK. The raw

materials will be brought back to the factory and stored in the warehouse for further
processing.
Processing of raw materials:
The clothes will be cut according to the size of the bags. And the horns will be
processed and flattened in the horn machine. Then, they will go to the labors for
further production.
Hand stitching of the bags:
After all the raw materials have been aligned, they will go to the trained labors who
will hand stitch the bags. Then they will attach the zippers or buttons, depending on
the design of the bag.
Maintenance of machineries:

Every once in a month, an engineer will come to check the machines to see if there is
any problem or hazard for labors are involved.

Technology Utilization:
Handling all the machineries with expertise and prevent time lag.
Make sure all the machineries in the factory are working fine so the production is not
hampered.

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Factory Layout:

Inventorie
s

Packaging
Attach zips and
buttons

Labors stitch the bags

Gate
Unload Raw
materials

Process
Horns

Cut clothes

Warehouse of raw
materials

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Marketing Plan:
Pricing:
Tote bags

1500-2000taka

Wallets800-1000taka
Purses.700-1200taka
Messenger Bags.1200-1500taka
Satchel Bags..1500-2500taka
Distribution:
A distribution strategy describes how the factorys products will move from the production
place to the customers hands in the most cost effective way possible. Reducing cost of your
business is a very important factor for business sustainability. The effectiveness of
distribution coverage is very important because if distribution is not properly done, then the
whole business could go upside down. Huge losses can be incurred if customers are out of
reach of the products. Our product will be sold at our own shop which will be located in
Jamuna Future Park. The capacity of providing the products to customers may depend on the
supply of the products.
Promotion: For promotion, following activities will be done within 5 years period of time
(January 2014- January 2018)

Months:
Jan 2014
July 2014
Sep 2014
Jan 2015
Apr 2015
Jun 2015
July 2015
Nov 2015
Jan 2016
Mar 2016

Medium

Estimated Cost

Market research
Market research, hanging poster & scratch cards
Ad in Naksha,Prothom Alo & wall paint
Market research Ad in Projonmo.com,Prothom Alo
Fair of Pohela Boishak and Leaflet
Ad in Lifestyle, The Daily Star
Market research
Radio ads on Radio Foorti & Radio Today
Market research
TVC at Machranga TV

12000 tk
51995 tk
63200 tk
22000 tk
60000 tk
16000 tk
12000 tk
73500 tk
12000 tk
1120000 tk

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Apr 2016

TVC at Machranga TV
Fair of Pohela Boishak and Leaflet

Jun 2016

840000 tk
60000 tk

scratch cards

Months:

Medium

July 2016

scratch card & market research

Oct 2016

Radio ads on Radio Foorti

Jan 2017

Research, Radio Foorti ad & trade fair stall

Apr 2017
July 2017

Fair of Pohela Boishak and Leaflet

Market research

7998 tk
Estimated Cost
14666 tk
46000 tk
538500 tk
60000 tk
14000 tk

Jan 2018

Trade Fair stall and research cost

514000 tk

Apr 2018

Fair of Pohela Boishak and Leaflet

60000 tk

Jun 2018
July 2017
Oct 2018
Dec 2018

scratch card
Market research
Ad in Naksha,Prothom Alo
Radio ads on Radio Foorti & Radio Today

70000 tk
14000 tk
91200 tk
49000 tk

Product Forecasts
The product-line will be two types of bags in the first two years which are tote bags and
wallets. In the second year, we will increase our product line and introduce 2 more types of
bags which are purse and messenger bags. After third year we will introduce satchel bags.
Basically, these 5 types of bags will be our product line.
Controls
The change in demand of market will be studied every 6 months. For controlling the
marketing activities, the partners will focus on relationship building with the suppliers who
supply raw materials. Customer satisfaction is something which is not in the hands of the
producers, so what we can do is ensure bags quality for customer retention and good word of
mouth. Ultimately, goodwill of customers can be earned, and that will help in consumer
generated marketing.

Organizational Plan:
Form of Ownership

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The business will be a partnership business, each partner carrying 25% ownership of the
company.. Anzabin Hassan and Rubaiya Islam will act as dormant investors and will take
part in investment of money only. Md Mahbubur Rahman and Anindita Mahmud will invest
capital as well as actively take part in the business.
Identification of partners (Principal Shareholders)
1. Anzabin Hassan
2. Md Mahbubur Rahman
3. Anindita Mahmud
4. Rubaiya Islam
Authority of Principals
1. Anzabin Hassan and Rubaiya Islam will act as dormant investors; therefore will only
have the authority to provide their opinion in case of Dissolution of partnership,
Addition of new partners and share of money to be invested. Other than that, thhe will
get steady return on investment.
2. Md Mahbubur Rahman and Anindita Mahmud will invest equal amount of capital and
take part actively in business. They both have the authority to propose dissolution of
partnership or addition of new partners, but decision will be taken after mutual
discussion. They have the authority to decide distribution of money in various sectors
during reinvestment. All the partners may authorize which suppliers to choose.

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This is the shareholders share (After deduction of expense and money for
reinvestment)

Partnership
30
25
20
15
10
5
0
Anzabin

Mahbub

Anindita

Rubaiya

Management Team Background

All the partners are students currently studying at North South University. The CEO hired for
the company is Mr. Mahmud Hassan, who has worked as a CEO of Fawn International for
the last 12 years so he has all the experience. The CFO appointed is Mr. Habibur Rahman
who is a financial advisor at Shimu Handicrafts which is a handicraft business in Sylhet. The
CMO is Mr. Mahmud Parvez, who had worked as a marketing manager for Tabani Beverages
for 5 years. And CHO is Ms Afroza Tabassum who has experience in this field for 4 years.
Roles & Responsibilities of member of organization
Owners (investors): Their primary roles are to invest after proper market research in-order to
maintain feasibility and increase shareholders equity as well as business profit.
CEO: He has the responsibility as a director, decision maker, leader, manager and executor.
CHO: Responsible for recruiting employees and later look after their interest.
CFO: He will look after all the financial data and related concern.
CMO: Responsible for all the marketing and promotion related decisions.
Employees: Their job is to make the bags and deliver good products.
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Peon: Do all the petty, odd jobs.

Receptionist: Take appointments etc for the executive officers and owners and receive calls.
Security guards: Look after the factory and guard it.

Assessment of Risk
Weakness of Business
Buffy Bags have following weaknesses:

Depended on niche target to earn enough money to break even

Competitive analysis is based on forecasts only ( local competitors are yet to start
their business )
Lack of operating area
Lack of experience of owners in this business line
Cash are limited
High rate of interest
Income tax high

In order to get leverage over the weaknesses, following steps can be taken:

Decreasing operating costs more by reducing wastage

Maintaining quality to capture higher percentage of target market
Investment on promotional activities
Complete competitive analysis once competitors have opened their shops

New Technologies
The equipments to be used in this business are General purpose equipments. Thus, there
is no need of excess investment on new technologies. However, once share for
reinvestment starts rising, following equipments can be upgraded:Name of equipment

Next Version

Contingency Plan
Although market research and present trend of business speaks for the possible success of
Buffy Bags, failure to get expected outcome from the business can happen too.
Considering that possibility, the business can be can be diversified to an exporting
business because even if these bags do not do good business here in Bangladesh, they
have high demand abroad. So we can export these bags abroad.

Financial Plan
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Assumptions:
Income tax

25%

Sales tax

15%

High demand season

During Eid and other festivals

Sources and Application of Funds

Funds will come from both the owners and bank loan. Funds obtained from the owners and
the loan amount will be used for purchasing fixed assets, initial wages, trade license, furniture
fixation costs, rents and vehicle costs. However, specific proportion of yearly profits will be
used for investment on equipments.

APPENDIX

Reference

Mr. Mahamud Hassan, Owner of Fawn International

Mr. .Sultan Mahmud, Owner of Onuvob handcrafts
http://xmjinrong.en.alibaba.com/

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