MGT368.

4
Business Plan:
Rainbow Paints Ltd.
Submitted by:
Sakibul Huq
Kaniz Fahmida
Nadeem Ahmed Khan
Tasnim Mahbuba Rahman

ID:
ID:
ID:
ID:

111 0073 030

111 0075 030
111 0232 030
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 business
markets.
Looking for opportunities provided by decorative, industrial
and marine sectors in the paint industry of Bangladesh.

Head office & Factory

The head office of Rainbow Paints is situated at Motijheel C/A and
the factory is located at Manikganj.
As it is shown on the Google Map, our factory is located at the Dhaka Aricha
Highway, 60 kilometer away from the capital city.

Vision, Mission & Goal

Vision: Our vision is to become a world class paint manufacturer and

lead the paint industry by establishing itself as a producer with the finest
manufacturing practices, through outstanding product quality with
diversification in different areas, innovative and eco- friendly
approaches in all the functions that are necessary to keep its customers
satisfied.

Mission: Our mission is to capture at least 10% market share within the
5th year through producing quality products and ensuring good customer
service.

Goal: The primary goal is to minimize the losses and gain maximum
market share without expecting any profit during the first year. Then its
target is to become one of the leaders of paint industry in Bangladesh
and 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 from
payment of VAT subject to existing conditions.
The stated policy of the government of Bangladesh(BDG) is to
pursue foreign investment actively
There are no distinctions between foreign and domestic private
investors regarding investment incentives or export and import
policies

ECONOMIC
Stability of the current economy: In todays 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: Exchange
rate 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 for
our company.
The main customer group for our company is 25-54 age group
which has the highest growth rate is 37.6%
Generational shift also has a positive impact on our product. Newer
generation is more likely to experiment unlike previous generation
who stick to traditional brand.
Attitude of the people of our country are changing i.e. Now a day
parents want their childrens 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 the
workplace according to Civil Right Act of 1964 by omitting any
kind of discrimination from the workstation
Patent: every companys intellectual properties such as- brand
name, logo, brand value is protected from piracy through patent
(Patent Act 2012)
Consumer protection: Consumer protection act 2009 protects
consumer rights by giving them the right to know about the
product, to complaint against it. It also held company liable for
any 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: Bangladeshs 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 demandsupply 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 for
almost 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 Plan
We 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 the
machineries 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.)

The following table shows our estimated production during the 1st
year of production (2015).
Month

Number of Units Produced

March

50000

April

50000

May

40000

June

40000

July

30000

Aug

30000

Sept

60000

Oct

60000

Nov

80000

Dec

80000

Production Layout

Operational Plan

Phase 3
Make Operational

Phase 2
Finalize & Setup

Phase 1
Initial Groundwork

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 among
four entrepreneurs.

Four of its members have decided on some

agreements and will divide the firms 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 with
a 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 their
salary 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 Yu!