Report on PRAN FOODS

Ltd. Marketing Strategy

Principles of Marketing




A I S

BBA 5th Batch
Jagannath University
1/15/2013

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JAGANNATH UNIVERSITY
Department of Accounting & Information Systems

Submitted to:
Md. Babor
Lecturer
Department of AIS
Jagannath University, Dhaka.

Submitted By:
TANVIR AHMED -------------------------------- 104570
MD. AZMAL HUSSAIN ----------------------- 104642
MD. MESBAH UDDIN ------------------------- 104416
JOY CHOWDHURY----------------------------- 104434
MD. SAZZAD HOSSAIN---------------------- 104462
RAJU AHMMED----------------------------------- 104558
ASHIK GHOSH------------------------------------- 104620
SHOEBA AFROZ --------------------------------- 104590
IMTAHINA HAQUE ---------------------------- 104630
ASMA SIDDIQUE -------------------------------- 104586

BBA 5
th
Batch, Session 2009-10
Department of Accounting & Information Systems
Jagannath University, Dhaka.
Table of Content

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SL NO. CHAPTERS PAGE
1 COMPANY OVERVIEW 04
2 LIST OF MARKET OFFERINGS 06
3 COMPETITIVE REVIEW 08
4 PRACTICE OF MARKETING CONCEPTS 09
5 DISTRIBUTION REVIEW 10
4 LIST OF STRATEGIC BUSINESS UNITS (SBU S) 11
5 EVALUATION OF SBU S BY BCG MATRIX 11
6 IMPLEMENTATION OF PRODUCT-MARKET EXPANSION GRID STRATEGIES 13
7 COMPANYS STRATEGIES FOR STRATEGIC FORMULATION 15
8 STRATEGIC ALLIANCES OF THE ORGANIZATION 16
9 PRODUCT POSITIONING STRATEGIES 18
10 PRICING STRATEGY 18
11 SOCIAL ACTIVITIES 19
12 SWOT ANALYSIS 20
13 OBJECTIVES 22
13 CONCLUSION

22

Company Overview

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Page 5 of 22




PRAN is currently the most well known household name among the millions
of people in Bangladesh and abroad also. Since its inception in 1980, PRAN
Group has grown up in stature and became the largest fruit and vegetable
processor in Bangladesh. It also has the distinction of achieving prestigious
certificate like ISO 9001:2000, and being the largest exporter of processed agro
products with compliance of HALAL & HACCP to more than 80 countries from
Bangladesh.


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PRAN is the pioneer in Bangladesh to be involved in contract farming and
procures raw material directly from the farmers and processes through state of
the art machinery at our several factories into hygienically packed food and
drinks products. The brand PRAN has established itself in every category of
food and beverage industry and can boost a product range from Juices,
Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy products.
Now, PRAN consumers not only value PRAN for its authentic refreshing
juice drinks products , but also for its mouth watering quality confectionery
products with high visual appeal and exciting texture. We intend to expand
our presence to every corner of the world and strive to make PRAN a truly
international brand to be recognized globally.
PRAN are business market because they purchase raw materials and produce
products and Sale that in the market.

LIST OF MARKET OFFERINGS
List Products Size Amount Price/TK
01 PRAN Orange Jelly medium
1 pcs
180.00
02 PRAN Chili Pickle 300g
1 jar
170.00
03 PRAN Frooto Orange
Juice
1000ml
1 bottle
115.00
04 PRAN Frooto Mango
Juice
250ml
1 dozen
450.00
05 PRAN Spice Powder
Chili
250g
1 jar
145.00
06 PRAN Spice Powder
Turmeric
250g
1 jar
155.00

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07 PRAN Tomato Sauce 900g
1 bottle
210.00
08 PRAN Mango Jam 350g
1 bottle
190.00
09 PRAN Chinigura
Automatic Rice
1 kg Vacuum Pac 180.00
10 PRAN Minikate Rice 5 kg
1 packet
450.00
11 PRAN Nazirshail Rice 5 kg
1 packet
450.00
12 PRAN Olive Pickle 400g
1 bottle
170.00
13 PRAN White Vinegar 300ml
1 bottle
85.00
14 PRAN Kataribhog
Rice
5 kg
1 packet
890.00
15 PRAN Chanachur 350g
1 packet
85.00
16 PRAN Mixed Fruits
Jam
350g
1 bottle
140.00
17 PRAN Tomato
Ketchup
1000ml
1 bottle
245.00
18 PRAN Spice Powder
Turmeric
250g
1 jar
150.00
19
PRAN Hot Tomato
Sauce
1000ml
1 bottle
295.00
20
PRAN Garlic Pickle
300g
1 jar
180.00
21
PRAN Spice Powder
Coriander
200g
1 jar
85.00
22
PRAN Mango Pickle
300g
1 jar
190.00
23
PRAN Milk Wafer
----
12 pcs
120.00


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COMPETITIVE REVIEW:

The Emergence of new product, marked by PRAN group, manufactures and
carriers has pressured industry participants to continually add features and
cut prices. Within a very short time PRAN would start exporting to Papua
New Guinea, East Timor, Brunei, Mauritius Reunion, and Algeria, among
other countries. At present it is exporting to 82 countries all over the world
and it has been conferred the most prestigious export trophy for the last six
consecutive years for its export activities. Due to gradual development of the
quantity of PRAN products and because of better marketing and distribution
initiatives, it is creating hype among other countries. Competition from
specialized products for drinks such ac Acme, 7up, are major factors as well.
Key competitions include:

*COCA-COLA: Coca cola is a famous brand. It is a high growth brand that is
spread everywhere. It tastes good. Its producing or making processing is very
sharp. Everyone choose coca cola.
*SEJAN MANGO JUICE: Students and younger persons choose this one. Its taste is
good like pure mango juice. Its price is less. It is also very famous to all.
*FIRM FRESH MILK: Collected directly from their own Milk Collection Centers
around the country from selected cows. Firm fresh milk is Ultra High
Temperature (UHT) processed to maintain long life and retain all the qualities
and richness of cows fresh milk.

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*RADHUNI: Radhuni pure mustard oil is manufactured from the finest grade of
indigenous mustard seeds and purified in fully automated plant. Mustard seeds
are needed to produce it. It is a famous brand.
*MUM DRINKING WATER: Mum natural drinking water conforms to WHO and
BSTI guidelines. It is rich in minerals, well balanced and ideal for people of all
ages. It contains valuable minerals our body needs every day. This water is
packed in pet bottle, which is approved by FDA USA for food packaging.
Despite this strong competition, PRAN can carve out a definite image and
gain recognition among the targeted segments. There are also many products
that build their attraction to people. Chocolate, hot tomato sauce, ketchup, jam,
jelly, borhani, orange juice, chanachur, rice, vinegar, biscuits, etc are much
known to all.
PRACTICE OF MARKETING CONCEPTS
There are five marketing concepts

Marketing Concepts
production product selling marketing
social
marketing

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PRAN Group uses two of this concept for their marketing.
PRODUCTION CONCEPT: They are follow production concept. Because their
products are widely available and highly affordable .They got large production
and effective distribution Channel. Their Price of the products remains
relatively low and they are available almost everywhere. PRAN candy, PRAN
juice, PRAN chanachur, etc are highly available and affordable in Bangladesh.
MARKETING CONCEPT: They first identify needs and wants of the target markets
and delivering the desired satisfactions better than competitors do. PRAN
group identify Bangladeshi people needs and wants and produce PRAN Gura
masala, PRAN Juice, PRAN candy etc.

DISTRIBUTION REVIEW:
In this section marketers list the most important channels provide an overview
of each channel arrangement and mention any new developments or trends.
PRAN products will be distributed through a network of retailers in the top
high sellable markets. Among the most important channel partners being
contracted are:

Firstly if the product is made, than it is shown in the wave page. This is like
other countries. Its price like all information will include. For in this countries
sellable product means main packing product are divided into some group.
Each group has five or six members and it has only one boss. The boss
maintains all things. He or she then observes and declares that what place the
products will go. It there is lack of product boss will serve.

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LIST OF STRATEGIC BUSINESS UNITS (SBUS)

STARS: Stars are high-growth, high-share businesses or products requiring heavy
investment to finance rapid growth. They will eventually turn into cash cows.
CASH COWS: Cash cows are low-growth, high-share businesses or products that
are established and successful SBUs requiring less investment to maintain
market share.
QUESTION MARKS: Question marks are low-share business units in high-growth
markets requiring a lot of cash to hold their share.
DOGS: Dogs are low-growth; low-share businesses and products that may
generate enough cash to maintain themselves but do not promise to be large
sources of profit for the organization.

EVALUATION OF SBUS BY BCG MATRIX

STARS:
Profit potential
May need heavy investment to grow
Example;
PRAN Juice, PRAN Candy etc

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CASH COWS:
Low growth, high share
Established, successful SBUs
Produce cash
Example;
PRAN Spice Powder Turmeric,
QUESTION MARKS:
High growth, low share
Build into Stars or phase out
Require cash to hold market share
Example: Maggie Noodles

DOGS:
Low growth & share
Low profit potential
Example;
Maxx Cola (PET Bottle).


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IMPLEMENTATION OF PRODUCT-MARKET EXPANSION
GRID STRATEGIES



There are four Product-Market Expansion Grid Strategies.
i. Market penetration
ii. Market development
iii. Product development
iv. Diversification
Market
Expansion
Grid
Strategies
Market
Penetration
Product
Developoment
Market
Development
Diversification

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MARKET PENETRATION: A strategy for company growth by increasing sales of
current products to current market segments without changing the product.
PRAN Group follows this product market expansion grid. They produce
products and sale in same market segmentation. They produce PRAN Milk and
sale it inside the Dhaka city.
PRODUCT DEVELOPMENT: A strategy for company growth by offering new or
modified products to current market segments.
PRAN Group does not follow this product market expansion grid.
MARKET DEVELOPMENT: A strategy for company growth by identifying and
developing new market segments for current company products.
PRAN Group follows this products market expansion grid. PRAN group starts
business in the country. Now they are exporting their products outside the
country.
DIVERSIFICATION: A strategy for company growth through starting up or
acquiring businesses outside the companys current products and current
markets.
PRAN Group follows this products market expansion grid. When they start
business then they produce few products such as Juice, candy etc and sold it in
the country. Now they are producing many products and selling in the country
and exporting outside the country.



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COMPANYS STRATEGIES FOR STRATEGIC FORMULATION

There are three Strategic Formulations.
i. Overall cost leadership.
ii. Differentiation
iii. Focus
OVERALL COST LEADERSHIP: When the business works hard to achieve the lowest
production and distribution costs so that it can price the products lower than
the competitors and win large market share.
PRAN Group follows this Strategic Formulation. They always tray to reduce
production and distribution cost thus they can offer product in lowest price
then their competitor. They win large market share for lowest price and good
quality products.
Strategic
Formulation
Overall cost
leadership
Differentiation Focus

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DIFFERENTIATION: When the business concentrate on getting superior
performance in an important customer benefit area valued by a large part of
the market. The firm seeks for quality leadership.
PRAN Group does not follow Differentiation Strategic Formulation.
FOCUS: When a business focuses on one or more narrow market segments. And
for attracting the customers it may use either cost leadership or differentiation.
PRAN Group does not follow Focus Strategic Formulation.

STRATEGIC ALLIANCES OF THE ORGANIZATION


Strategic Alliances of the Organization
Product or
service Alliances
Promotional
Alliances

Logistics
Alliances
Pricing
collaborations

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There are four Strategic Alliance of the organization.
i. Product or Service Alliances
ii. Promotional Alliances
iii. Logistics Alliances
iv. Pricing collaborations

PRODUCT OR SERVICE ALLIANCES: When one company licenses another to produce
and sale its products under some specific terms and conditions, or two
companies jointly market their complementary products or a new product.
PRAN Group does not follow this Strategic Alliances.
PROMOTIONAL ALLIANCES: When one company agrees to carry a promotion for
another companys goods or services. And under this situation both companies
are benefited; manufacturer for better promotion and promoter for special
price.
PRAN Group does not follow this Strategic Alliances.
LOGISTIC ALLIANCES: When one company offers logistical services for another
companys product for a long-term basis under mutual agreement.
PRAN Group does not follow this Strategic Alliances.
PRICING ALLIANCES: When two or more companies join in a special collaboration
to fixed price and in this situation not only the business houses, but the
ultimate customers are also benefited.
PRAN Group does follow this Strategic Alliances. They join with BD Food to
fixed their product price thus business house and customer benefited.

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PRODUCT POSITIONING STRATEGIES

The product is a mango fruit juice, which we would like to position as a
healthy alternative to carbonated beverages and other artificial sodas and
drinks & foods. The mango juice will add variety to the diet for the people of
UAE. That is why we want to position PRAN foods a fast moving consumer
good in UAE. To huge Bangladeshi expatriates living in UAE, PRAN will also
serve a national symbol and be a source of pride. Though PRANs quality is ISO
9001 certified it may have to increase its quality farther since it will have to
compete against some of the world leaders in mango drink &foods
manufacturers.


PRICING STRATEGY

We think that since there is a number of competing brands in the mango juice
market, PRAN should follow the market pricing strategy. The penetrative
pricing policy should be used in PRANs case because BANGLADESH is
country with low per capita income ($ 1000) money is a factor to the consumers
in BANGLADESH. Also the fact that there are a lot of high profiled brands,
which are already quite competitively priced, makes penetration pricing less
appropriate





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SOCIAL ACTIVITIES
The idea of corporate social responsibility is being widely promoted all over
and rightly so. Here is a corporate whose corporate mission embodies in itself
corporate social responsibilities with the additional compulsion to make profits
in order to thrive and grow which it must to fulfill its corporate social
responsibilities in greater measure as time passes. PRAN has a bifocal
objective of making profits through the fulfillment of corporate social
responsibilities.

PRAN-RFL is a concept: away to fight poverty & hunger in Bangladesh in the
shortest possible time through employment generation.

PRAN Signifies investment in agro processing: creating demands for farm
produce which create jobs in rural areas also preventing urban migration.
PRANs aim is to add value to agricultural harvest.

Bangladeshs comparative advantage lies in creating a competitive edge in
value added agricultural products. This is what PRAN Stands for.

The Groups major achievement has been to try to consolidate fragmented land
holdings and to organize farmers into contract growers of specific crops for
consumption in PRANs major processed products. With the elimination of the
middlemen, farmers receive fair prices for their produce & due to technical
assistance from the agro-processing industry; yields, quality and income have
risen considerably. Poverty alleviation through profitable enterprises is now a
reachable goal for many farmers. This resolution is perhaps PRANs greatest
achievement.

PRAN is the pioneer in Bangladesh to be involved in contract farming and
procures raw material directly from the farmers and processes through
state of the art
machinery at our several factories into hygienically packed food and
drinks products. The brand PRAN has established itself in every
category of food and beverage industry and can boost a product range
from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to even
Dairy products. Now, PRAN consumers not only value PRAN for its
authentic refreshing juice drinks products, but also for its mouth
watering quality confectionery products with high visual appeal and
exciting texture. We intend to expand our presence to every corner of
the world and strive to make PRAN a truly international brand to be

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recognized globally. PRAN are business market because they purchase
raw materials and produce products and Sale that in the market.


SWOT ANALYSIS
STRENGTH:
Huge food & drinks Varity.
Food & drinks quality is good.
Mainly Bangladeshi customer based.
Product availability is more.
Retailer gets more profit then MNC.
Huge distribution network
Risk pooling
Greater control over sources of raw materials
Experience
Greater sources of finance

WEAKNESS:
Low advertisement.
Confusing add.
Common add for all type of food or drinks.
Market size is small.
Distribution is time consuming.
Control

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Perishable item
Disproportionate promotions strategy

OPPORTUNITY:
Potential customer.
Converting non user.
Production cost is low then others.
Offer different packages.
Add should be meaningful.
Huge demand
Overseas expansion
Cheap labor
Ethnocentrism
Government incentives
Cash incentives
Duty drawback facility
THREATS:
Direct competitor (Arong, Bd food)
Stricter health and technical standards
MNC company.
Government regulation.
Selective Low price from competitor.
Wide Varity (BD FOOD).

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OBJECTIVES
MARKETING OBJECTIVES:

Maintain positive steady growth each month.
Increase market penetration every quarter.
Generate increased brand awareness quantified by reactions/feedback of
customers at the trade shows.

FINANCIAL OBJECTIVES:

Decrease customer acquisition costs by 1% a quarter.
Continue to decrease variable costs through efficiencies gained from
experience.
Increase profit margins by 0.5% per quarter.
Conclusion:

PRAN group of industries are now one of the most successful industries in our
country. They are trying to increase their business line and their own brand.
PRAN group also trying to beat the competitive market by doing different
types of businesses . In our study we found that they will go far way in
business and they will be no. 1 business group in our country.