TEAM 360 DEGREE

2nd Runner Up

Brandwitz 2015

Organized by: IBA Communications Club &

Access to Information (A2I)-Prime Minster’s Office

BRANDWITZ’15: GRAND FINALE (Part-1 Weightage 25%)

Brandwitz '15

Team 360 degree

Azizul Hasan

Asif Ahmed Tonmoy

Sabiha Sultana

Safwat Ahmed

Rural E-Commerce business model

Situation analysis

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47.5% of the total population is

directly employed in agriculture.

4547 UDCs are working actively in

Bangladesh.

Uses 3rd party e-commerce sites.

Do not have a centralized e-

commerce system & monitoring board.

Signed MoU with 3rd

party payment method and courier

services.

Idea of e-commerce is getting more

popularity in urban area than rural

area.

Value proposition

Use of a well-defined e-commerce system with personal control

and monitoring will ensure better management of the system with

improved delivery to the customers from both ends.

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Digital baazar

aazar

www.digitalbaazar.gov.bd *2021#

Market

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Market Type

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Market

B2B

B2C

Market

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Market

Local Producers of perishable and non perishable goods within the

union

Consumers from any part of the country and abroad

Business description

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Nature

Nature

Product Sales and Service based business

UDC acts as intermediary between producers and consumers

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Market plan

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service

Provides buyers with required products, available price, product description, freight service, UDC location.

Provides sellers with online marketplace, security of reasonable price, connection to potential buyers

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industry

Service industry

Creating opportunity for fair trade

Ensuring right price for producers and consumers

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customer

Producers from rural areas

Consumers from rural, sub-urban, urban areas

and abroad

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competition

Local wholesaler Private e-commerce Other Intermediaries

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Position in the marketplace

Comparatively New Entrant

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image

A local body reducing the deprivation of root level farmers from getting right price of the product, also providing a convenient platform for both producers and buyers to get their desired products.

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pricing

Fixed transaction rates for all UDC around the country depending on each product category. The pricing will be decided by elected governing body.

Different transaction fees for perishable and non perishable items.

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Market goals

Long term

Be the market leader in e-commerce

Ensure reasonable price

Short term

Acquire producer and consumer market share through creating

awareness

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Marketing strategy

Producer End &

Customer End

Door to Door Campaign

Monthly Producer Meeting with UDC

Monthly Consumer Meeting through video/audio conferencing

Feedback over phone/mobile from consumers

Newspaper

Radio

TVC

Promotion through Service Portal (services.portal.gov.bd)

Promotion through Facebook page and YouTube channel of A2I/Service Portal/Bangladesh.gov.bd

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Operating plan

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USSD SERVICE

২০২১

SendClose

১। চিচিৎসা ও স্বাস্থ্য বস া ২। তথ্য ও প্রচতব দন৩। চনব াগ৪। প্রচিক্ষণ৫। বেনিন৬। a2i৭। চ চনব াগ৮। েূ ব তবী৯। ের তবী০ । বসচ িংস

Website (In Bangla & English)

aazar

Agriculture

DIGITAL BAzAR

(Operations Flow Chart)

Process (producer End)

UDC Agents

Aware & Get Details from Producers

Prepare Mass Production Schedule

Regularly Update the Schedule

Process (Consumer End)

Go to digitalbazar.gov.b

d or *2021#

Select Your Product Type

Select UDC See Price List

Check AvailabilityConfirm Your

OrderSelect Delivery

SystemPay Through M-

Banking

Process Completion

Message Received

Human resource

Per Union Parishad

Existing UDC entrepreneurs 2 Persons

Chairman of Union Parishad 1 Person

Local Monitoring Body ( Can be District Judge, Magistrate) 2 Persons

UDC Agents (will be chosen from respective Union Parishad) 5 Persons

ICT Unit 1 Persons

Central Operational Unit

Central Monitoring Board 6 Persons

ICT Unit (For maintenance of website, database, etc) 10 Persons

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Key Resource & planning

4547 UDCs and its electronic gadgets

Infrastructure of UDC

Growing demand of rural products

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Record keeping

UDC ICT Unit

Central ICT Unit

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Inventory: Just-in-time approach

Payment Terms

In consumer end

Mobile Banking

Only in producer end under special circumstance

Cash

Every monetary transaction will be done

with an E-Receipt

E-Receipt

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Hours open

Orders can be placed 24/7 online

Order Placement

Response will be given within 8:30 AM to 6 PM

Response

Delivery time will depend on the 3rd party affiliated

delivery system

Delivery

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Financial plan

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Revenue model

Transaction Fee Revenue Model

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Why? : Because subscription model will not be able to attract both producers and

customers as they will not be interested to pay a pre-determined fee.

Start up expense (central cost)

Database Management System 50,00,000 tk

Website 2,00,000 tk

USSD Installation 1,00,000 tk

Total 53,00,000 tk

Total Cost Per UDC (4547 UDC) 1165 tk

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Sales (1 Year Per UDC)

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Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Perish

able

80,000 80,000 50,000 70,000 80,000 120,00

0

120,00

0

80,000 90,000 110,00

0

130,00

0

120,00

0

Non

Perish

able

20,000 20,000 20,000 35,000 35,000 40,000 35,000 35,000 25,000 35,000 30,000 20,000

Transaction Fee

Perishable Goods 5% of total sale

Non Perishable Goods 10% of total sale

Perishable 11,30,000 tk

Non Perishable 3,50,000 tk

Cash out for goods (1Year Per UDC)

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Total: 74,500 tk

Type Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Packaging 2,000 2,000 2,500 3,000 3,000 3,500 3,500 4,000 4,000 4,500 5,500 5,500

Miscellaneous 2,000 2,000 2,500 2,500 2,000 2,000 2,500 2,500 2,500 3,000 4,000 4,000

Cash out for operating (1 Year)

Per UDC

Type Amount

Yearly Salary (10,000X 6 personsX 12

Months)=720,000

Yearly Salary 2 PersonsX12

monthsX18,000 tk=

432,000

Utility Bills 12 monthsX15,000=180,000

Total 13,32,000

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Central Cost

Marketing Cost 100,00,000 tk

Maintenance Cost 10,00,000 tk

Total Cost Per Union

Parishad (4547 Union

Parishad)

2221 tk

Net income (per UDC)

Total Sales 14,80,000 tk

Cash Out For Goods (74,500)

Cash Out for Operating (13,32,000)

Start Up Expense (1,165)

Earning Before Tax 72,335

VAT( 0%)* 0

Net Income 72,335 tk

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* On June 30,2015 Government decided not to impose 4% tax on e-commerce as proposed in the budget of FY2015-16

Why are we different?

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After

Sales

Service

FeedbackProblem

DiscussionSuggestion

Re-investment strategy

A portion of total revenue will be used for business expansion to:

• Maximize service quality

• Incorporate more services as par requirement of each UDC

• Expand the infrastructure facility and expand human resources if needed

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Monitoring and Evaluation

Monitoring & Evaluation

47.5% of the total population is

directly employed in agriculture.

4547 UDCs are working actively in

Bangladesh.

Uses 3rd party e-commerce sites.

Do not have a centralized e-

commerce system & monitoring board.

Signed MoU with 3rd

party payment method and courier

services.

Idea of e-commerce is getting more

popularity in urban area than rural

area.

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Challenges & feasibility

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Financial Challenges

The business targets the mass population of Bangladesh and the number of transactions are huge.

Recommendation

• All the transactions should be updated in the E-Ledger.

• E-Receipts will be given so that authority can observe every monetary transaction.

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Marketing Challenges

Diverse Target Group

Recommendation •Target group has been segmented as per service and need of awareness

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Administrative & Management Challenges

Difficulty of collaboration among different partners.

Recommendation • Monitoring and coordination from the central unit

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Synergy

Takeaways

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Thank You

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