Independent University, Bangladesh

Report
On
Export Plan

Prepared For:

Mr.K.M.Nasiruddin
Department of International Business
School of business
Independent University, Bangladesh (IUB)

Prepared By:

Name ID
Emu Saha 1521901
Rahul Saha 1310925
Nazmul Hossain 1310878
Sanjida Arefin 1522311
Md.Noyan Bhuiyan 1430944

Course Title: International Business

Course ID: INB301
Section: 07

Date of Report Submission: 29-03-2017

 RFL Plastic

Letter of Transmittal
To:

K.M.Nasiruddin,
Lecturer
Independent University, Bangladesh
Bashundhara R/A, Dhaka.

Date: 29thMarch, 2017

Subject: Submission of a report on export plan.

Dear Sir,

With due respect, it is our pleasure and honor to be your students and have this opportunity to
present the export plan. While preparing the export plan, we have given our all the best focus
thoroughly on the topic regarding this business. We provided all relevant information regarding
this business and we believe and hope that our export plan will provide a clear conception about
our business.

While preparing the export plan, we all have given our best to accumulate needed information
and we will be more than happy to answer any question and clarify it fully to your
understanding. Thank you for all your help and support which helped us significantly in
preparing this export plan.

Sincerely yours,

Emu Saha

Rahul Saha

Sanjida Arefin

Nazmul Hossain

Md.Noyan Bhuiyan
 RFL Plastic
Acknowledgement

In performing our assignment, we had to take the help and guideline of our respected faculty,
who deserve our greatest gratitude. The completion of this assignment gives us much pleasure.
We would like to show our gratitude Mr.K.M.Nasiruddin, Lecturer, Independent University,
Bangladesh, for giving us a solid guideline for the assignment throughout numerous
consultations. We would also like to expand our deepest gratitude to all those who have directly
and indirectly guided us in writing this assignment.

Many people, especially our team members themselves, have made valuable comments and
suggestions on this proposal which gave us an inspiration to improve our assignment by a large
margin. We thank all the people for their help directly and indirectly to complete our assignment.

Thank You.
 RFL Plastic

Table of content
Topic name Page Number

1. Introduction 1
2. Company Description 2-4

3. Product Description 4-13

4. Foreign Marketplace Analysis 13-18

5. Market Entry Strategy 18-22

6. International law 23-24

7. Financial Analysis 24-26

8. Risk management 26-27

9. External Assistance 28-30

10. Implementation Schedule 31

11.Conclusion 32

12. Reference 33
 RFL Plastic

Executive Summary
Bangladesh is the emerging country for global economy with reputation of some industry
growth. We already have drawn attention of foreign markets for export quality product like
Plastic product. The main purpose of our export plan is to expand our business in a country
where our business has not entered yet. Through the entrance of that new country will help our
business to become more stable. Moreover through the entrance we will capture more revenue
from that particular region and that will help us in future to become leader on exporting plastics.
Our country patronizing this type of product with subsidy, monitoring and favorable policy
Making. Bangladesh earns more foreign money from exporting Plastic product. To get back the
market position. We are seeking and identify opportunity market by competing with our
Competitors. We draw attention in the domestic and foreign market focus using excellent
promotional activity. In immunes, to select new market we consider cultural, political, economic
condition and sustainability of the countries. We analyze trade friendliness, diplomatic
relationship statue, export imports policy, regulation and future market potentiality.
At first we selected three countries. The countries are Srilanka, Mayanmar and Pakistan. But we
choose Srilanka. Because of Sri Lanka’s economy has grown by focusing more on market-
oriented policies, export-oriented trade, and encouragement of foreign investment. We don’t
choose Pakistan and Mayanmar because of countries political situation is not stables.
 RFL Plastic

1. INTRODUCTION
Exporting can be a profitable way of expanding business, spreading risks and reducing
dependence on the local market. Austrade research shows that, on average, exporting companies
are more profitable than their non-exporting counterparts.

Exporting exposes new ideas, management practices, marketing techniques, and ways of
competing that any company wouldn’t have experienced by staying at home. All this
considerably improves company ability to compete in the domestic market as well.

By going overseas, a company can become more efficient and increase productivity. Exporting
companies have better growth prospects, highly skilled, highly productive staff and tend to adapt
technology and best practice techniques faster.

For this assignment we have choose RFL plastic company for exporting their selective

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2. Company Description:
RFL is one of the largest plastic manufacturers around the world (3rd largest in Asia). RFL is a
sister concern of PRAN-RFL group. The group has a turnover in the vicinity of USD $0.5 billion
annually. Primarily Rangpur Foundry Ltd (RFL) was founded by Maj. Gen. Amjad Khan
Chowdhury (Retd) in 1981 with a vision to leveraging the farmer in irrigation through cast iron
products like centrifugal pump as well as ensuring drinking water through Tube well.

It commenced its operation in plastics business in 2003. The factory sites are in company owned
industrial parks of 300,000 sq meters, which is fully equipped with state of the art injection
molding machines with a conversation capacity of over 10,000 tons per month. RFL Plastics
currently utilizes 3500 molds through 420 machines having own tooling facilities. The company
makes molded household products and furniture made of plastics of decorative design at an
affordable price. The company’s product ranges include household items like table ware, kitchen
ware, cleaning accessories, storage container, multipurpose ware, baby ware, hangers and
furniture item like Arm chair, Table, Stool etc. Due to its perceived superior quality, innovation
design and varying ranges, RFL has already been established as most preferred branding plastic
category in Bangladesh. With the expansion of its product line and capacity, the RFL products
are now being exported in various countries around the world.

Goals and objectives

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Mission & Vision

POVERTY & HUNGER ARE CURSES

AIM

To Generate Employment and Earn Dignity & Self Respect for Our Compatriots through

Profitable Enterprise

Our Vision: Improving Livelihood

Values

 Discipline

 Commitment to Work

 Fair Judgment

 Service Orientation

 Continuous Improvement

Core competencies of RFL

Core competencies are the main strengths or strategic advantages of a business. Core
competencies are the combination of pooled knowledge and technical capacities that allow a
business to be competitive in the marketplace. Theoretically, a core competency should allow a
company to expand into new end markets as well as provide a significant benefit to customers.
RFL company’s core competencies are……

Provides potential access to a wide variety of markets.

Make a significant contribution to the to the perceived customer benefits of the end
products.
Global Recognition

Quality & Durability products

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Products are low priced
Their strategies are well planned
Eco-friendly Manufacturing Process

3. Product description:
The industry is well equipped with China, Taiwanese and Thai Technology to produce high quality flexible plastic
products such as Hanger & Garments Accessories (Moving Shirt Hanger, wall Hanger), Food Storage Products
(Food Storage Box), Household Utilities (Mug, Super Bucket), Washroom Accessories (Square Soap Case),
Beverage Products (Glass Stand, Design Glass), Utility & Cleaning Products (Laundry Basket), Furniture (Arm
Chair, Table, Stool) etc. Covering the wide range of packaging, pouches, tubes, garment and films of HDPE
(High-density Polyethylene), LDPE (Low Density Polyethylene), PP (Polypropylene), LLDPE (Linear Low
Density Polyethylene) and their mixes based packing materials round the clock and satisfies almost all sort of the
industry. It can produce up to 8 (Eight) colors and deliver its products within a very short span of time with a total
installed production capacity of 3,000 MT perineum. The capacity utilization of the industry is over 95%.The
industry has the started with an installed capacity to produce 3,300 tons of plastic flexible of different sizes, colors
and thickness and now increasing their capacity to meet the growing demand.

Chair:

Our Chair is a folding chair, easily stackable, and available in different color. Design to suit
every type of home or work space. Great for both home and office use: Living rooms, dining
rooms, bedrooms, nurseries, offices, waiting areas, parties, banquets, and many more. Armless
chair with different colors finish for commercial use.

 Holds up to 880 pounds

 Stacks 25 chairs high on a dolly for easy storage

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 RFL Plastic

Basket:

Our Baskets are made of durable plastic and features side handles for easy carrying. It provides
attractive, lightweight solution to many storage needs. Perfect for your bathroom, home or office,
these baskets are great for your storage needs and to organize.

Table:
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 RFL Plastic
Our table is folding dining table by Courtesy Home is made of high-density 90-percent recycled
plastic that is stain-resistant and weather-proof. The low maintenance rectangle table is the
perfect complement to your outdoor needs with its sleek and modern design. Offering the look of
without the upkeep, no need to re-stain, waterproof, or paint ever again.

 Large portable tray top

 Plastic caps to protect floors from being scratched
 Set includes: One folding table
 Materials: Metal, plastic
 Finish options: Powder-coated red or white
 Dimensions: 27.95 inches high x 23.63 inches

Drawer:

Our drawer is a durable, flexible and easily stackable. We have available in different color and
size. Design to suit every type of home or work space and great for both home and office use.

 Color: Black, Red, Yellow, white, Blue, Sky

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 RFL Plastic
 Size: Six fabric drawers
 Model: U-Dh55B
 Materials: Plastic
 Dimensions: 25.5 inches high x 13.25 inches wide x 14.5 inches long

Export Opportunity:

Objective and Benefit of export in Sri Lanka

RFL plastic products are popular in Bangladesh and have a very strong brand image. No other
plastic company ever served high quality and large product category in market. RFL’s domestic
sales are very strong and their market share is high. For RFL Company going global was
required to be successful internationally. In recent RFL company has many distribution networks
in many countries. For doing export in Sri Lanka mainly household product category will a good
business opportunities for RFL.

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There are many good reasons (or benefits) for exporting RFL plastic in Sri Lanka. These include
the following:

Increasing Sales: Exporting is one way of increasing sales potential; it expands the "pie" that a
company earns money from, otherwise companies trying to make money only out of the local
market. RFL Company is a big company and has a very strong market image and RFL is doing
very good business in domestic market. For RFL doing export in Sri Lanka presumably would
increase the demand by extending the market base to overseas country and thus the profitability
of the firm.
Increasing profits: RFL Company will not enter the export market in order to make loss. For
RFL have to find that some markets generate higher profit margins, while in other markets RFL
profit margins are considerably lower. So choosing Sri Lankan market for exporting will be
opens a area to increasing profits.

Reducing risk: It is risky being bound to the domestic market alone. Export sales to a variety of
diverse foreign markets can help reduce the risk that the company may be exposed to because of
fluctuations in local (and foreign) business cycles. If RFL company export their products in Sri
Lanka it will be a change to reducing risk because Sri Lankan growth rate is high.

Economies of scale: Exporting is an excellent way to enjoy pure economies of scale with
products that are more "global" in scope and have a wider range of acceptance around the world.
If RFL increase export production and sales, they can achieve economies of scale and spread
costs over a larger volume of revenue, reduce average unit costs and increase overall profitability
and competitiveness.

Cultural sensitivity

Bangladesh – Sri Lanka relations refers to the bilateral relations between the People's Republic
of Bangladesh and the Democratic Socialist Republic of Sri Lanka. Relations have been
generally friendly due to trade and investments. Bangladesh also hosts a number of Sri Lankan
medical students and cricket as a form of friendly communications between their people.

The two South Asian nations have been historically tied since before the sub-continent's
colonization by the British. Sri Lanka's first King, to be mentioned in the ancient Pali chronicles,

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was alleged to have ancestors from the Vanga Kingdom located in modern Bangladesh. In Sri
Lanka, several strands of hair gifted by the Buddhists of Bangladesh, identified as originated
from Buddha, are venerated on Poya Day, a Buddhist public holiday in Sri Lanka

Sri Lankan Culture and Society

Language in Sri Lanka

 Sinhala (also called Sinhalese or Singhalese) is the mother tongue of the Sinhalese ethnic
group which is the largest in Sri Lanka. It belongs to the Indo-Aryan branch of the Indo-
European languages.
Religion

 The main religions of Sri Lanka are Buddhism and Hinduism which both have large
influences on political, cultural, and social life.
 Generally speaking Buddhists believe people are reincarnated and have several lives. In
each they learn lessons and should try to better their conduct in each life until they reach.
 Religion has both a direct and indirect impact on business. Most predominant is the
shared acceptance of fatalism, i.e. that a higher force is in control. As a result people will
turn to religion when making decisions, etc.

Why Export in Sri Lanka?

The economy statistic of Sri Lanka

GDP US$ 80.591 Billion( World bank)

GDP growth rate 4.5% (2015)

GDP per capita US$3,818.161 (2016 est.)

GDP by sector Agriculture12.8%,industry 29.2%,

services

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Inflation (CPI) 6.9% (2015 est.)

Population Below poverty line 4.3% (2013 est.)

Ginny coefficient 36.4 %

Labor force 8,319,680

Labor force by occupation Agriculture 32%, industry 26.3%,

services 41%
Unemployment rate 4.3%

GDP (purchasing power parity): $134.5 billion (2013 est.)

$126.6 billion (2012 est.)

$119 billion (2011 est.)

Note: data are in 2013 US dollars

GDP

Source: https://www.google.com

With an economy worth $80.591 billion (2015) and per capita about $11,068,996, Sri Lanka has
mostly had strong growth rates in recent years. The Sri Lankan economy has seen robust annual
growth at 6.4 percent over course of 2003 to 2012, well above its regional peers. In GDP per

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capita terms, it is ahead of others countries in south Asian region. Since the end of the three
decade civil conflict, Sri Lanka is now focusing on long term strategic and structural
development challenges as it strives to transition to an upper middle country. For the company of
Pran- RFL it is the good opportunity for export their products in Sri Lanka. In recent RFL has
distribution network such countries like India, Nepal, UAE, Africa and Malaysia. Considering
Sri Lankan economy strategy in detailed if RFL can enter the Sri Lankan market with proper
execution of operation it will be a good chance to doing business.

Why not export in Myanmar and Pakistan?

In recent RFL have many distribution networks in worldwide. Under SAARC country almost in
every country RFL has distribution network without Sri Lanka, Myanmar and Pakistan. For
exporting RFL plastic products we have selected to export in Sri Lanka and we are not interested
to export RFL products in Myanmar and Pakistan.

Myanmar

Political risks: Political instability and ongoing religious conflicts can fundamentally impact
foreign businesses’ operations in Myanmar. There are two camps in the current government:
those who want to encourage investment and open up the country, and those who want to protect
local businesses against foreign dominance. The main driver of the former camp is the
President’s office, while the main driver of the latter is the parliament. The risk for foreign
investors is that the protectionist camp eventually wins out and foreign investors are put at a
disadvantage.

Cost of poor infrastructural support: Those operating on the ground in Myanmar frequently
experience power outages, unstable telecoms services and limited transport coverage. Foreign
businesses may find that they have to make their own capital and technological investments, just
in order to ensure smooth daily operations.

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Lack of Skilled labor: As much as 70% to 80% of Myanmar’s workforce is employed in the
agriculture sector, which still engages in traditional farming techniques.
Rule of Law: While there has been some improvement in this area recently, it must still lags
behind its neighbors in terms of rule of law and law enforcement. Foreign investors should be
aware that in case of a dispute in Myanmar, their rights are not guaranteed to be respected. A key
step that the new government has taken in this area is to sign the New York convention, which
means that international arbitration decisions must be upheld in Myanmar. Foreign investors in
industries that may result in lawsuits or litigation should be careful.

Human rights issues: In the relatively recent past, international companies faced pressure from
activist groups through ‘name and shame’ campaigns to divest their investments in Myanmar.
More worryingly, at least one US Company was involved in litigation with respect to allegations
that it was complicit in human rights abuses that were reportedly carried out by government
forces near one of its facilities in Myanmar. Foreign investors need to monitor human rights
abuses and avoid doing business in conjunction with the military or military-controlled
companies in Myanmar.

Pakistan

Cultural differences: Time used related to cultural differences. When you have two cultures,
you have business being conducted in different manners. While in Pakistan not many are direct
with answers, in the west we require direct answers. We have found it rare in doing business
with Pakistan to hear a direct “no”. Many manufacturers in Pakistan will often say they can do
things that they can’t and things change last minute.

Money transaction: Money is difficult to move. As with many things in Pakistan, moving
money is not as smooth of a task as we are used to. Bank wires take time and sometimes do not
reach the manufacturer’s account. Not many manufacturers are able to process credit cards.
Online payment services will not operate in Pakistan for the most part and Western Union
provides no real recourse to recover your money.

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Communication difficulties: Communication often deteriorates. What are considered rude in
Pakistan may be normal here and the opposite. More companies than you would think develop a
toxic relationship with their manufacturer because they unknowingly disrespect each other
during communications. While you would think many businesses would research appropriate
etiquette, many don’t because they quite frankly don’t care to do so. Communication can turn to
nothing and it doesn’t work out well for anyone.

Terrorism: There is a high threat from terrorism throughout Pakistan. The threat is complex,
multi-faceted and changes frequently. We refer you to the FCO Travel Advice for further and up
to date information.

Product Strategy:

RFL Company’s Product strategies are:

 Provides potential access to a wide variety of markets.

 Quality & Durability products.
 Products are low priced.
 Their strategies are well planned.
 Eco-friendly Manufacturing Process.

4. Foreign Marketplace Analysis:

Country Profile:

Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, is country in South Asia.
Known until 1972 as Ceylon, Sri Lanka is an island surrounded by the Indian Ocean. As a result
of its location in the path of major sea routes, Sri Lanka is a strategic naval link between West

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Asia and South East Asia and was colonized by Portuguese, Dutch and English and the latter
ruled the country till 1948 and thesis Lanka was given Independence.

Economic Growth: Sri Lanka’s economy has grown by focusing more on market-oriented
policies, export-oriented trade, and encouragement of foreign investment. Its new economy also
wants to reduce the amount of poverty by using its investments in areas that are more in need. Sri
Lanka’s overall economic growth is slowly becoming better seeing a 7% growth in 2006 but a
drop of 1% in 2007. Textile and apparel are two of the major sectors when in comes to importing
and exporting. Exchange Rates: The current exchange rate, although it changes frequently, is 1
US Dollar = 107.994 Sri Lanka Rupees and 1 Sri Lanka Rupee = 0.009260 US Dollars. The
effect a country’s exchange rate has on the demand by overseas customers such as the United
States is it makes it higher. Having products imported into the United States from where the
dollar has more power allows us to import more. Transportation: The major forms of
transportation that are used in Sri Lanka are highways, airports, and Colombo which is one of the
world’s greatest artificial seaports. Geographic Location: Being located in Southern Asia and
being its own island in the Indian Ocean does make transport by sea accessible as well. Just like
Thailand, since it is located so far away from the United States trade can be expensive and take
longer. Financial System: Sri Lanka’s financial system is operated by the Central Bank of Sri
Lanka. The central bank is then in charge of smaller institutions which include licensed
commercial banks, licensed specialized banks, registered finance companies, specialized leasing
companies, primary dealers, and employee funds. Policy towards Unemployment:
Unemployment insurance is trying to be introduced to developing countries such as Sri Lanka.
This program would include insurance, severance pay, and unemployment insurance savings
accounts. Inflation: According to the CIA World Fact Book, from the years of 2003 to 2004 Sri
Lanka’s inflation rate went down from 9.6% to 6.3% resulting in a -34.38% change. It continued
to drop into 2005 but had a 100% change going into 2006 and slowly went up 4.31% in 2007. In
the years where inflation rates dropped, the cost of good and selling prices also dropped.

Political Stability: Officially known as the “Democratic Socialist Republic of Sri Lanka,” Sri
Lanka goes by executive presidency based on the French model. The president is the head of

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state with executive powers and is elected for a period of six years. Environmental Regulation
and Protection: A National Environment Policy (NEP) is now being established in Sri Lanka to
maintain and improve the natural resources and living environment of Sri Lanka. Its current
environmental issues include wildlife populations being threatened by poachers and
urbanization, coastal degradation caused by mining and pollution, and the nation’s freshwater
being polluted by waste and sewage run-offs. Taxation: Sri Lanka’s corporate taxation ranges
from 20% to 35% and its personal income tax rate is 35%. International Trade: When it comes to
foreign trade Sri Lanka’s main export trading partners include the United States, UK, India,
Belgium, and Germany specializing in exporting textiles, tea and spices, diamonds, rubber, and
fish. In terms of importing, Sri Lanka does most of its business with India, Singapore, China,
Hong Kong, Japan and Malaysia. The major products being imported are minerals, textile
fabrics, petroleum, machinery, and transportation. Corruption: When compared to other
Southeast Asian countries the level of corruption in Sri Lanka is not very high. Some examples
of the types of corruption going on are the giving of gifts to acquire licenses to the point where
they are expected and also the act of bribery is common among businesses and officials..

Technological: Sri Lanka contains 6,198 Internet hosts and 428,000 Internet users. The country
relies on broadband connection. ASDSL was introduced to Sri Lanka in 2003 and is available in
the Greater Colombo area. Energy: In Sri Lanka the total production of energy is 8.411 billion
kWh and a total consumption of 7.072 billion kWh. Government Spending: Sri Lanka’s high
budget deficit and high government spending only leads to a higher inflation rate. The volume of
money is being expanded just to reduce the budget deficit in Sri Lanka.

Income Distribution: According to the CIA World Fact Book, Sri Lanka has a Gini Index rank
of 50 which means that its income distribution is equal. Demographics: Sri Lanka’s population is
a growing number around 20,926,315 with its age structure being 0 to 14 years old at 24.3%, 15
to 64 years old at 67.9%, and 65 and older at 7.8%. Considering gender distribution it can be
expressed through the sex ratio of the total population: 0.971 male(s)/female. Education: The
average years of schooling for adults in Sri Lanka is 6.9 years with 90.7% of its population being
literate. Fashion: In relation to the fashion industry, Sri Lanka is one of the main exporters of
garments in the world today. Although when it comes to fashion and trends, Sri Lankan
designers are starting to team up with Indian designers to create a trend that is unique to their

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culture. The sari is one of the trends that we are all familiar with which is a few yards of
unstitched cloth that can be wrapped around the body in various ways. Attitude towards Work
and Leisure: Sri Lanka’s attitude in similar to that of Thailand’s in the sense that they are both
developing countries that need work to help maintain their economy and also help it expand..

Sri Lanka’s per capita

Source: https://www.google.com

Legal System: The Legal system of Sri Lanka is a highly complex mixture of several laws. In
fact, it exemplifies the absolute possibility for the coexistence of diverse elements of several
legal systems for it gather together with a common framework, laws as diverse in their origin as
those of Rome and England, Holland and South Africa, Arabia, South India and old Ceylon .

The ethnic and religious diversity of the nation and the colonial history, which traced back
to1505 – 1948 are the major factors which had contributed to this complexity. Sri Lankan Legal
system is influenced by English common law and Roman-Dutch owing to its colonial history. In
addition, same is influenced by the ancient local system of laws of Sri Lanka - customary and
personal laws such Kandyan, Thesawalamai law and Muslim law due to the varied character of
the nation.

Environmental Factors:Sri Lanka enjoys a tropical climate with varying temperatures

according to location. Coastal or upland areas benefit from Cool Mountain or sea breezes all year

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round. Monsoon season is between May to September in the South & West and October to April
in the North & East of the country. These monsoons give Sri Lanka its only seasons as it is
located so near to the Equator. Temperatures average 27°C (80°F) in Colombo and 16°C (61°F)
in NuwaraEliya, which is on higher ground, all year round.However, with the increased number
of development projects, there are many issues that have taken the attention. Deforestation,
pollution, filling the marshy lands and in fact the unauthorized buildings have caused numerous
environmental problems in Sri Lanka.

Industry Profile:

The Plastic sector has long been a significant role in the national economy of Bangladesh by
exporting Plastic product. A large number of people are involved directly or indirectly.

Bangladesh Plastic Goods Manufacturers Association (BPGMA) is a private sector association

and also representing our country total plastic goods industries with more than 700 members.
Today, we have around 3000 small, medium and large size plastic goods manufacturing units
with around 1 million workforces directly or indirectly employed in this sector.

Competitors analysis in Sri Lanka :

Plastic manufactures who are successful in Sri Lanka and worldwide:

 Snackings (PVT) Limited.

 Zahra international impex (PVT) .
 Shanthi Plastics.
 Mona Plastics.
 DK plastic industries.
 Thermo plastic Limited.

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This plastic company in Sri Lanka is very successful in Sri Lanka and expert in Export products
in worldwide. For RFL plastic company there is a competitive advantage which is given below…

Competitive advantage: The top plastics manufacturer in Sri Lanka they mainly manufacture
polythene, PET bottles, decorative plastic products, plastic pipe, cosmetic plastic tube etc. For
RFL this is a competitive advantage for exporting their products in Sri Lanka because Sri Lankan
plastic manufacturer company does not make plastic household products, furniture, kids products
with variety item which RFL makes. If RFL successfully export products and operate their
business they will make good profit.

5. Market Entry Strategies

RFL is one of the best plastic manufacturing company in Bangladesh. In Bangladeshi market
RFL doing there business successfully. They start their business in 1999 year and till now they
doing there business with great success. Now they exporting there product in different countries
in the world. Now they are thinking of exporting there product in Sri Lanka. They decide how
they will export there product in Sri Lanka .They thinking of exporting there product in Sri
Lanka throw making an agreement with a domestic company of Sri Lanka .They going to sign
the agreement with Kiran Mody & Co. Pvt. Ltd. Kiran Mody & Co. Pvt. Ltd. is one of the best
company in Sri Lanka .It is established in 1948. And there Main Products is Import & Distribute
Pvc Doors,Locks, Bikes,Plastic products Other. It is a distributors/Wholesalers type of business.

As they import plastic goods from different countries of the world so they do have a good
distribution channel in Sri Lanka. Sign an agreement with Kiran Mody & Co. Pvt. Ltd will be
profitable for RFL.

How RFL will be benefited:

For the agreement with the Kiran Mody & Co. Pvt. Ltd RFL will be benefited several ways. As
Sri Lanka is a new market for RFL they do not need any distribution channels logistic support

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marketing effort or any offices in Sri Lanka for the agreement. So here RFL can save its huge
expenses.

In that agreement the following promises will be there.

 The agreement will be sign for five years.

 The distribution company will find 15% of the profit.
 RFL product will be distributed all the showrooms of that company.
 For future plan RFL and Kiran Mody & Co. Pvt. Ltd will work together.

Market Entry moods

Direct Exporting: RFL Plastic Limited will choose direct exporting in Sri Lanka. Direct exports
represent the most basic mode of exporting made by a (holding) company, capitalizing on
economies of scale in production concentrated in the home country and affording better control
over distribution. Direct export works the best if the volumes are small. Large volumes of export
may trigger protectionism. The main characteristic of direct exports entry model is that there are
no intermediaries. Passive exports represent the treating and filling overseas orders like domestic
orders. The reason behind choosing direct exporting is that it is very much profitable. The
company doesn’t need to establish operation plant in Sri Lanka. The investment will be safe and
profitable.

Target Market (segmentation)

The preparatory point for discussing market segmentation is mass-marketing. The market for any
product is normally made up of several segments. A ‘market’ after all is the aggregate of
consumers of a given product. And, consumer (the end user), who makes a market, are of
varying characteristics and buying behaviour. There are different factors contributing for varying
mind set of consumers. It is thus natural that many differing segments occur within a market.

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In order to capture this heterogeneous market for any product, marketers usually divide or
disintegrate the market into a number of sub-markets/segments and the process is known as
market segmentation

Demographic

Demographic segmentation is the division of the market based on an individual's sex, age,
income and life style. In demographic we will discuss about target customer income.

Income: At the bingeing to till RFL set their price of household products, furniture, household
cleaning products, and kid’s products are low so that, middle income people can afford. For
exporting products in Sri Lanka they will set price as low in Bangladesh so that middle income
and higher income people can buy RFL plastic available products.

Psychographic
Social Class: In Sri Lanka RFL will target people who are part of the lower middle class, middle
class, upper middle class and upper class of the society.

Geographic
Geographic segmentation is the process of dividing the total market according to geographic
location, for instance region (urban, suburban, rural, city size), climate and land type. In
Bangladesh RFL targeted urban, rural, city area people. When RFL will export their products in
Sri Lanka they will also targeted those people who live in city area or non city area.

Sales and Promotion Strategies

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Integrated marketing communication (IMC) is the concept under which a company integrated
and coordinates its many communication channels to deliver a clear, consistent and compelling
message about the organization and products. For exporting products in Sri Lanka RFL must
plan an IMC plan or market communication strategy to communicating with their target audience
by using these promotional tools…

Web site for

Sales Public
Advertising export E-
Promotion Relation Marketing

Advertising: Advertising is known as any paid form of non-personal presentation and promotion
of goods. While a small business RFL might not get involved in advertising internationally at the
beginning, the opportunity to do so is increasing with new media and lower costs in specific
targeted markets. If the proper opportunity to advertise does occur, it should be considered. In
many cases advertising can be used to find potential distributors. Some targeted magazines are
distributed overseas by federal government agencies for the purpose of bringing exported
products to a market.

Sales promotion: Short-term incentives to encourage the purchase or sale of a product or

service. RFL will make many promotions are designed to stimulate immediate sales in Sri Lanka.

Public relation: Public Relations are based on obtaining favorable publicity and building up a
good image as a “corporate citizen.” Public relations often make more of an impact than
advertising. This is in part because they are true and believable. They are also an effective and
economical way to create awareness about your products. Many small and medium-sized

Sales representative

First of all RFL Plastics will select some local sales representatives. The representatives will be
able to distribute the product. Sales representatives represent foreign suppliers/manufacturers in
their local markets for an established commission on sales. Provide support services to a
manufacturer regarding local advertising, local sales presentations, customs clearance
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 RFL Plastic
formalities, legal requirements. Manufacturers of highly technical services or products such as
production machinery, benefit the most from sales representation.

Importing distributors

For more emphasis the company will import major distributor all over the Sri Lanka. Importing
distributors purchase product in their own right and resell it in their local markets to wholesalers,
retailers, or both. Importing distributors are a good market entry strategy for products that are
carried in inventory, such as toys, appliances, prepared food.

companies have effective public relations in place, even if that is not how they refer to them.

E-commerce options

Web site for export E-Marketing: Internet advancements have given small and medium-sized
firms a boost and have allowed many to expand their business internationally. RFL will do for
the promotional concepts presented in this section can be achieved through a carefully designed
website. E-Marketing will provide them a low cost implementation of an export strategy.

Pricing Strategy

Preemptive Pricing
In Sri Lanka RFL will follow preemptive pricing strategy. Setting prices so low as to discourage
competition is the objective of preemptive pricing. The price will be close to total unit costs for
this reason. As lower costs result from increased volume, still lower prices will be quoted to
buyers. If necessary to discourage potential competition prices may even be set temporarily
below total cost. The assumption is that profits will be made in the long run through market
dominance. In Sri Lanka RFL will set their pricing strategy on customer demand, competitor
substitute. In Bangladesh RFL products price are low so in Sri Lanka they will follow their
current pricing strategy so that they will compete the market in global.

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 RFL Plastic

6. International Law:

Free trade agreements:

SriLanka has Free Trade Agreements (FTA) with Myanmar, Bangladesh and Pakistan which can
reduce import tariffs into those countries.
For RFL it is a good opportunity to export plastic products in Sri Lanka because Sri Lankan
economy has economic freedom to doing business and with Sri Lanka and Bangladesh has free
trade agreements.

Dispute resolution:

Bilateral agreement is our primary dispute resolution method and WTO works for dispute
resolution if any disagreements arise among the traded and tradable country.
Language consideration:

We consider English language to foreign trade as an international language that highly recognize
for business purpose.
Contract terms and condition:

Samples are available at pre-paid through credit card or Bankers cheque.

Special developments are undertaken and estimates are provided in advance based on the
drawings / specifications supplied by our clients.

As per our Company Policy we can accept payment in US Dollars.

Our delivery conditions are FOB Chittagong Port or as per requirement and specification of the
customers. Chittagong port provides vessels on a weekly basis connecting all major ports.

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 RFL Plastic

Sales agent / distribution agreement:

Distribution channel of our product: Whole seller

Plastic product exports their product directly and indirectly. We offer different option for
treading like direct buyer, vendor, supplier and agents.
<> Performa Invoice Valid for 30 Days
<> Production Lead Time Depends on order quantity
<> Payment: 60% Advance with 100% Irrevocable L/C.

Export/import regulations:

Import regulation:

<> Sample lead time: Usually within 3~7day

<> Our highly creative R&D team releases around 50-100 new bags designs every week to
satisfy market demands.

Research and development also known as R&D is the most important part of our company if a
company’s R&D is a weak it will fall in the long run. So we give our best in this sector

7. Financial Analysis:

Pro forma financial statements

Based on assumption, events and transactions that have not yet occurred. These financial
statements focus on the future and are used to raise investment capital.

A cash-flow statement

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 RFL Plastic
How much money do you need for the business now and over the forecast period? Where will
the cash come from? What milestones will you achieve with the funding?

An income statement

This will include your sales forecast, margins, and fixed and variable expenses (e.g., research
and development, sales and marketing, administrative costs, interest).

Facility and equipment requirement:

Plastic product has a great potentiality the government gives Incentive and training to develop the plastic
industry after that we need more technology support to make our product unique then other countries of
the world.

Sales forecast:

We have a huge market demand of jute product in future .Recently plastic product demands are increasing
day by day. In future the demand of plastic product will be more then now and it will create a marker for
us.

Cost of goods sold

Costing

→ Making Charged

→ Trimmings/Accessories (i.e. Cane Handle)

→ Profit

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 RFL Plastic
This is a record of your company’s assets and liabilities.

Cost
(BDT)
Our Product cost 27,000,000
Transport expenses(f) 2,000,000
Trade licenses(f) 200,000
Consultant fees(f) 1,500,000
Market research expense(f) 1,000,000
Travel expense(v) 1,500,000
Salaries expense(f) 7,000,000
Legal expenses(f) 1,000,000
Export advertising Expenses(f) 900,000
Office supplies(v) 2,000,000
Sales representative expense (v) 5,000,000
Insurance expense(f) 1,000,000
Others expenses(f) 3,000,000
Income taxes expenses 15,150,513
Total cost 68,250,513

8. Risk Management:
As every business incurs risk like compliance risk, financial risk, default risk, foreign exchange
risk, interest rate risk, political ricks and ricks occurred by natural disasters like earthquake or
uncertain fire in industry therefore our company is insured (insurance of goods) by Bangladesh
Insurance Company. As a subscription fee we yearly pay 1,000,000tk from the profit we make.
As a result Bangladesh Insurance Company is liable if any damages occur of our product, they
will cover the damages.

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 RFL Plastic

Threats of new entrant

The threats for new entrant for RFL Plastic Limited are high because any plastic company can
enter the market any time with low investment.

Threats of substitutes

In the business of the RFL Plastic Limited threats of substitutes are high. Recently Tanin,
Talukder Group is doing plastic business well. So if the company does any fault then the
customers are easily moving in the other company product.

Bargaining power of the buyers

If there are too many sellers in the industry and too few many buyers in the same industry, the
profitability will be low because the buyers dictate the price. So here the bargaining power of
buyer is high.

Bargaining power of the supplier

Too many buyers and few sellers. So the sellers dictate and set the price. However, the
bargaining power of the supplier is very high.

Current Rivalry

Rivalry means competition. The level of completion among the competitors is one factor that
determines the industry’s profitability. The profitability will be low as too many competitors and
all of them are equal in size. RFL Plastic Limited’s main competitors are Bengal Group, Tanin
Plastic, Napoli and many other local competitors.

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 RFL Plastic

9. External Assistance:
External assistance is taken from various sources of sri lanka which ar listed bellow:

 Sri Lanka Export Development Board (SLEDB)

www.srilankabusiness.com/edb

Sri Lanka Export Development Board (SLEDB) commonly known as the EDB is the
apex state organization responsible for the development and promotion of exports. The SLEDB
is recognized and commended for its invaluable service rendered for the export community to
drive the growth of the country’s exports.

 Department of commerce of srilanka

To develop and promote Sri Lanka's foreign trade relations at bilateral, regional and multilateral
levels by the effective implementation of government trade policy, with a view to raising the
standards of living and realizing a higher quality of life through the increase of total production,
income and employment levels, thereby actively contributing to the overall economic growth of
Sri Lanka

 Department of Census and Statistics bureau of Sri Lanka

The company was born out of our recognition that in managing complex international aid
programs and developing effective national economic development policies, the lack of
available, quality data frequently impeded progress and shared understanding.

 Customs and border protection of srilanka includes

http://www.customs.gov.lk/import/home

Collection of revenue

Prevention of revenue leakages and other frauds

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 RFL Plastic
Facilitation of legitimate trade

Collection of import and export data to provide statistics.

Cooperation and coordination with other Government Departments and stakeholders in respect
of imports and exports.

In Addition to the charges mentioned in the Tariff Guide, Rs. 250/- is charged for each and every
customs declaration as computer Charges and Rs. 100/- per containerized cargo as seal charges
and Rs. 1600/- as overtime charges are applicable only for full container load(FCL) cargo

 International trade administration of srilanka

This department helps and accelerates foreign trade in srilanka. This department also provides all
the information relatade to international trade including export and import of srilanka.

 Central bank of srilanka

CBS help all sort of foreign transections made to aptitude export and import for srilanka. It
controls all the international transections centrally.

WTO (World Trade Organization)

According to a WTO Secretariat report on Sri Lanka's trade policies and practices, reforms have
gradually shifted towards broader-based economic liberalization. During the past decade, market
opening to manufactured imports has been accompanied by internal deregulation and
privatization, affecting a large number of state-owned companies. Foreign direct investment is
welcomed and has played an important rôle in developing the clothing and tourism industries.
Equity shares of up to 40 per cent are generally given automatic approval; investors receive
national treatment. New initiatives aim at exposing long-protected service sectors to competition
and reducing and harmonizing tariff protection.

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 RFL Plastic
The recent WTO Agreements have secured and are likely to widen the institutional framework
for continued international market integration. While Sri Lanka has bound all tariffs on
agricultural products, like other WTO members, the scope of tariff bindings for industrial
products is small; the ceiling rates are at the same level as for agricultural products (50 per cent).
Sri Lanka's commitments under the General Agreement on Trade in Services (GATS) are limited
to tourism, although market access conditions have also been improved for banking and other
service sectors. Amendments are now underway to align domestic legislation with the WTO
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) and new laws are
being considered to conform with the WTO Agreements on Safeguards, Anti-Dumping and
Subsidies and Countervailing Measures.

Sri Lanka in World Trade

International obligations

Sri Lanka has been a contracting party to the General Agreement on Tariffs and Trade (GATT)
since 1948. It ratified the Marrakesh Agreement in June 1994 to become a founding member of
the World Trade Organization (WTO)

Trading arrangements and trade relations

Sri Lanka continued to promote international trade and economic cooperation through active
participation in several international and regional organizations. With a view to achieving the
benefits of global trade expansion facilitated by lowering tariff and non-tariff barriers and
strengthening rules and disciplines in international trade,

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10. Implementation Schedule:

Operational timeline:

Unlike Bangladesh, Sri Lanka also celebrates their festival in a good and energetic manner. In
Sri Lanka Esala Perahera (A-suh-luh peh-ruh-ha-ruh) is the grand festival of Esala held in Sri
Lanka. It is very grand with elegant costumes. Happening in July or August in Kandy, it has
become a unique symbol of Sri Lanka. It is a Buddhist festival consisting of dances and richly
decorated elephants.

So we are planning to enter in the market of Sri Lanka 3 months before the festival. As a result
we will get enough time to promote our product. And if we can arrange some campaign and give
some discount we will be able to gain some market share as Sri Lanka’s people likes to shop
stuffs before the festival and that will help our sales.

By analyzing the past data of Sri Lanka’s we found that in the festival time they have a tendency
to shop more than regular time. So if we can run some campaign and also promotion we will be
able to gain market share and also earn profit.

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 RFL Plastic

11. Conclusion
RFL is the number 1 export company in plastic industry of Bangladesh. There are other
companies like Bengal Group, Partex Group, Talukder Group also export plastic products. But
their product and service line is very narrow than RFL. By installing robotic & automation
system RFL introduce a different age in production history of Bangladesh. Our next year project
of developing mold and master batch (color) locally in Bangladesh will help RFL to fly in the
sky. Making decision of outsourcing design makes RFL more competitive for its rival in the
international market. We believe, we will be the largest plastic manufacturer in the world within
2025 and they will export their products worldwide without less number of business risk in
future and operate their export strategy and planning successfully.

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12. Reference

 www.doc.gov.lk/web/index.php?lang=en (Accessed on 23th March, 2017)

 https://www.google.com/search?q=sri+lanka%27s+gdp+2016&espv=2&source=lnms&t
bm=isch&sa=X&ved=0ahUKEwiR_t-
7y_nSAhVBK48KHcPaBTEQ_AUIBygC&biw=758&bih=622#tbm=isch&q=sri+lanka'
s+gdp+2016+chart&*&imgdii=TErG6n7l7J4Z2M:&imgrc=0uerfQhTUgAiyM:
 https://knoema.com/atlas/sources/Department-of-Census-and-Statistics-Sri-Lanka
(Accessed on 26th March, 2017)
 http://www.mfa.gov.lk/ (Accessed on 21th March, 2017)

 http://opentoexport.com/article/overseas-business-risk-sri-lanka/ (Accessed on 27th

March, 2017)
 http://www.preservearticles.com/2012022923907/what-are-the-objectives-purpose-and-
functions-of-export-trade.html (Accessed on 26th March, 2017)
 http://www.rflbd.com/ (Accessed on 27th March, 2017)
 https://www.scribd.com/doc/95885574/Operations-Method-of-RFL-Plastic-Limited
(Accessed on 25th March, 2017)
 Internet report and data base
 Daniels, Jhon: & , D et all, International business book environments and operation,
23th edition. New Jersey, Pearson.

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