Business plan on crocodile firm

Crocodile farming is a very valuable concept for the entrepreneurs of Bangladesh, during the last decade the international demand for crocodile skin has increased tremendously. In this paper we try to show the plan and attractiveness of skin business. We will produce skin and other things that are crocodile bones, meat, teeth, egg. We will produce it in Bangladesh and export it in different corner of the world. We will follow a niche marketing strategy. There would not have any problem in getting buyers as the skins of crocodiles are in great demand. Per inch crocodile skin price is very high. We try to how we serve our customer and how we distribute it. This paper attempts to provide a clear picture of the export opportunity of crocodile skin from Bangladesh our main target is to export crocodile’s skin. It is using for luxurious product item we will direct sell our product to our customer. it is a business to business type business. This type of business will be helpful for our economy. Export oriented products is very few in our country. So we entrepreneur are trying to involve such kind of activities.

Business description
We are new in business. We develop our marketing plan and we will try to implement it. It will be the joint venture business. It has five members and they will bear risk equally. we will export raw skin and other things.

Industry background
Now in Bangladesh one farm exists. In international market many firm are serving the market. In this industry there are less number of suppliers and more buyers. So sellers have more power.

Goals
Our aim is to maximize our sales to meet buyer demand.

Uniqueness of our product Our skin is A class and free from fangas. This is our competitive advantage.

Market ting Segment
We are following Niche Marketing strategy to serve our market. Because of our products are Very expensive and Unique and our customers are few in numbers. That’s shows Differentiation focus Strategy.

Target market
Our business type is B2B.
We will export our products are in following countries- * Europe * USA * Korea * Canada * And some Local Five Star Hotel(Meat and Egg)

Target Customer * Only few tannery in the world (12-15) * niche market : LouisVuitton, Gucci, D&G, Prada, Armani

Target to sale * Main target is raw leather * Teeth * Meat * Egg * Bone * Live fridge crocodile

Demand Analysis
Crocodile skin and other parts are very expensive and unique although it has very high demand in the international market. D&G,Prada,L0uis vuitton,Armani and other expensive brand has huge demand on crocodile skin because of they are producing Belts,shoes,boots,handbags,purse,wallets,briefcases,jacket,wristbands,guitar straps, trophy skins, etc are by the crocodile skin. Now a day’s crocodile meat has light demand. Lots of international Hotel, Resturants is servings crocodile meat. Many international perfume companies are using crocodile bone to produce special perfume. Many ornament company produce royal and unique class ornaments by using crocodile teeth.

Market size

International Trade Scenario of Crocodile Skin From 2007 to 2010, over 4 million crocodilian (includes alligator and crocodile) skins were traded worldwide (Caldwell 2010). Trade in crocodile skins can be divided by the trade in ‘classic’ crocodile skins versus other crocodile skins. Classic crocodile skins consist of all crocodile skins except for the caiman. Classic skins are recognized by the absence or presence of only a very few osteoderms (skin bones). The bones increase the difficulty of the tanning process and the risk of tearing the skins during tanning (Zajicke 2010). Global trade in crocodile skins is estimated at US$500 million/annum, with exports to Singapore, France, Italy and Japan accounting for approximately 70% of total trade (Crocodile Specialists Group 2010; Caldwell 2010). There are 23 species worldwide, with the most commonly traded skins being the American alligator and caiman. Together alligator and caiman skins accounted for 83% of world trade in 2010 (McGregor 2011) with Colombia and the United States the two major suppliers in these markets. Other important suppliers of crocodile skins include Zimbabwe, Zambia and Papua New Guinea.

Types of Crocodile Skin | Market Share (%) | Caiman | 66. 1 | American Alligator | 20.6 | Saltwater Crocodile | 1.9 | New Guinea (freshwater) | 2.5 | Crocodylus Porosus | 8.7 | Others | 0.2 |

Competition
Competition in the skin trade comes primarily from crocodiles and alligators produced in Papua New Guinea, Africa, Asia (Indonesia and Thailand) and North America. In Bangladesh there are two crocodile farm exist ( Akiz and Raptaile crocodile farm). But because of huge demand of crocodile skin in international market competition is really less intence.

Marketing segment Marketing plan We will sell our product cheap price and good quality rather than our competitor. So establish that kind of marketing plan, that’s meet our strategy.
Current Market Situation

Market situation
Crocodile leather items are exotic items which have high demand among upper end consumers around the world. Though the demand is high very few countries are responsible for supplying the crocodile leather world wide as per the demand of craftsman and final consumers. Naturally some countries historically had the privilege of being crocodile growing countries but because of huge demand the culture of commercial crocodile farming started among some countries of South East Asia, South America and Australia during the 90s. In 2010global stocks of crocodiles and alligators were estimated at 1,233,704.

[P.T.O]

From the above table it is seen that over two thirds of the world’s stock numbers of crocodiles/alligators are recorded in Colombia (62.53%) and the United States (19.4%). Other countries with large stocks of captive crocodiles/alligators include Zimbabwe, South Africa, Cambodia, Papua New Guinea and Venezuela Most of these countries are historically crocodile growing countries because of the geographic location and environmental scenarios. From the above table it is seen that countries that have undertaken commercial farming have now on accumulated only 2.05% share of the total world stock except for the commercial farms of Australia and United States.

Market Potential of Crocodile Leather
Crocodile leather is mainly used in shoes, handbags, small leather goods and watchstraps. Imports of all manufactured goods for 2003 totaled nearly 3,80,000 items, with over half of theseitems made from alligator skins.The majority of crocodile products are exported from Italy,
Germany, United States, France, Spain and United Kingdom.

A significant proportion of skin exports are re-imported in value added form by the original skin producing countries, indicating that tanning and manufacturing activities are occurring offshore. This is evidenced by the exports of alligator skin products from Italy to the United States. Similarly, there is a high flow of salted caiman skins from Colombia to Panama and a correspondingly high volume of finished caiman products being imported from Panama back to the United States (Caldwell 2009). The most significant importers of manufactured crocodile products are Japan and the United States.Domestic alligator leather consumption is high in the United States, with most popular import items being watchstraps from Sweden (as a European transit port) and shoes from Italy. The US market has been mainly focused towards the male consumer with the most popular items made from exotic skins being boots, wallets and belts. A recent study conducted by the Louisiana State University highlighted the opportunity to diversify the market into women’s apparel and accessories and interior furnishings (Belleau & Summers 2010). Japan sources the majority of manufactured leather product imports from Italy,followed by Germany, Spain and the United States, most of which are madefrom caiman or American alligator. In 2010, Japan imported over 45 000 manufactured crocodile products, with the most popular items being watchstraps and handbags (Caldwell 2010).

Product situation
The species of Crocodiles we breed in our farm is Crocodylus Porosus. Scientifically, they belong to the Animalia Kingdom, are of the Phylum Chordata, belong to the Reptilia class of the order Crocodylia from the family Crocodylidae, subfamily Crocodylinae, genus Crocodylus. An adult male saltwater crocodile's weight is 600 to 1,000 kilograms (1,300 to 2, 200 lb) and length is normally 4.1 to 5.5 metres (13 to 18 ft), although mature males can be 6 metres (20 ft) or more and weigh 1,300 kilograms (2,900 lb) or larger. This species has the greatest sexual dimorphism of any modern crocodilian, with females being much smaller than males. Typical female body lengths in the range of 2.1 to 3.5 metres (711 ft). The largest female on record measured about 4.2 metres (14 ft). The mean weight of the species as a whole is roughly 450 kilograms (1,000 lb).Farming these elegant beasts for their hides has been an effective way to conserve their species. The global demand for Porosus leather has been growing, and farms like ours help relieve the pressure on the wild population and help protect against poaching and other illegal activities surrounding these great creatures.
Competition situation
In our country local competitors are Reptiles Farm Limited (RFL) is existing in the market and Akij may introduce their operation
Distribution situation
We are the producer we directly collect skin from crocodile directly in our farm then we sale it to tanneries and then taneries process those skin and fashion industry purchase from them and they prodused finished goods and those are purched by the ultimate fashion consious consumer.

We will send our product to tannaeries by air or ship.

Macro Economic situation
We are analyzing macro economic situation and we found that political instability, foreign exchange fluctuation, Inflations, competitors, bureaucratic problem, natural calamity etc.
SWOT analysis
We have already analysis local and global market as well as many crocodile firm and we also analysis our external and internal environment and we found our strength, weakness, opuurcunity threat.
Here we discuss about our SWOT analysis in below.
Strength:
* We entrepreneurs are evolving in top level management. * We have own land for our farm * We have skill labor * Managing cost low * Huge investment by entrepreneur * Less number of staff * High quality * Cheap price * Labor wages comparative low than global competitor * Nurturing cost is low * Crocodiles life span time is very long * Crocodiles are less affected by diseases * During the lay of eggs time crocodiles do not have any food

Weakness * Return on investment is very slow. * Switching cost is very high * Long term investment * Nurturing process is risky * 20% eggs are rotten or damage * Training cost labor is high * If little spot is in found on skin then price will be half than original price * For producing a class skin, one crocodile needs one pond. * Feeding cost is high
Opportunity
* Crocodile skin has high demand in global market. * Premium brand store needed a class skin * Now in good demand in crocodile bones meat,teeth,claw ,egg in global market. * Fewer competitors in local market * We will get back high volume of return on investment.
Threat
* Government rules and regulation * International rules regulation * We can’t sell any item of crocodile raw product in local market * We producer are under paid rather than tannery owner * Technological improvement is low

Objective
Our aim is to be increase sales 50% within 5 years.

Marketing Strategy
The farm’s managing director, Rahim,Md.Abdur, the chairman of the company, Amin-Al and Dr .Shamsul abedin have to visit countries that import crocodile skins and need to learn those markets to find the market price. Once they get an idea about those markets, they will inform those companies about RFL in Bangladesh and will provide their price quotation.
Action program
We will join many international seminars and we will advertise trough e-mail, webs add directories and international business magazine.
Control
Now a day’s crocodile skin has huge demand so we skin supplier have more control than our buyer.
Research and development
We have own lab for skin testing activities. We also try to improve crocodile skin by using proper technology. And we found that one crocodile needs one pond for improving skin.
Technical Research
If we needed any kind of technical research we will consult with foreign university’s biology unit. also we will receive Technical assistance from South Asian Enterprise Development Facility (SEDF).
Research assistance
We already make a contract with a Australian Researcher. Who have lots of knowledge about the crocodile skin and nurturing activities?

Cost structure Cost name | rate | quantity | Total TK | Female crocodile | 400000 | 65 | 26000000 | Male crocdile | 300000 | 15 | 4500000 | Setup cost | | | 5000000 | Hatcher and incubator | | | 1200000 | Total cost | | | 36700000 |

Manufacturing Segment
Location analysis
We have own lands that situated in Narayangonj. So we will set up our farm in that place. It will be better for us. weather The wet weather has put a dampener on the crocodiles mood for reproduction. But crocodiles react to the rainfall for their sexual activity, it's thrown them out of kilter. Crocodile some time need water for cooling them and sometimes nee hot sun shine to survibe.
Bangladesh have monson rain so, bangladeshi weathert is pretty good for crocodile farming.
Production needs facilities, utilities and equipment
We will make pond for crocodile, we will also create fence for protection, we will use fresh water for crocodile.

Source of raw materials
We will import Australian female and male crocodile for our crocodile production. We will collect meat for feeding the crocodile from local businessmen.
Labor supply
We will need 10- 15 skill labor for our operation.
Manufacturing cost
Here we shows our manufacturing cost per month Cost name | rate | quantity | Total tk | Feed | 120 | 1000kg | 120000 | Electricity (approx) | | | 4500 | Labor | 5000 | 15 | 75000 | Employee | 12000 | 3 | 36000 | Total | | | 235500 |

Management segment Organization structure

Ownership
We have 5 member and investment, profit; loss will be divided equally between 4 members.
Consultant
* Farm follows the Australian standard and fulfills the criteria of IUCN (International Union for the Conservation of Nature) and CITES (Convention on International Trade in Endangered Species) in breeding crocodiles. * An Australian crocodile-farming expert has been hired at the farm for a month to train the project staff on the latest technology of crocodile farming.

Critical risk segment
Potential problems Flood and natural calamity may affect the farm
Obstacle and risk Unfortunately labor may victim by the crocodile attack
Alternative course of action If we fall under great pressure we can sell the crocodile to our competitor because we do not want to fall great losses. And we will use our land for various purposes.