Agricultural Marketing Company Ltd.

CHAPTER 01: COMPA ! O"ER"#E$

1.1 #ntroduction:
Agricultural Marketing Company Limited is a member of PRAN (Program for Rural Advancement Nationally) group in Banglades ! "t is a #$ year old company and is in t e business since %&'(! "ts s are )as listed in C*+ in %&&,! AMCL is considered one of t e largest processing companies in -ruits and .egetables! "t procured ra) material directly from t e farmers and used t em in t eir ultra modern plants! /oday AMCL is t e largest Contract Manufacturer in ) ic it teac es t e farmers to produce good 0uality crop )it ig yields! "t also purc ases t e farm produces from t em at fair prices! Company is situated at capital city of 1 aka and as production facilities around Banglades ! "t is t e largest Agro -ood +2porter from Banglades and it e2ports its products to almost 33 countries! "ts strong team of #(4((( employees as elped to boost agricultural sector in Banglades immensely! AMCL al)ays elps farmer in form of training4 and financial aid to produce more so as to enric t eir lives! PRAN5 stands for Program for Rural Advancement Nationally! PRAN 6R78P )as born in %&'(! *ince t en4 over t e years4 )e ave diversified our activities! /oday )e are t e largest processors of fruits vegetables in Banglades ! 9e ave s o)n t e )ay of contract farming in Banglades for t e first time and procure ra) material directly from t e farmers and processes t roug ig :tec mac inery at our several factories into ygienically packed food and drink products! As )e are t e largest contract manufacturer4 )e promote contract farmers and elp t em produce 0uality crops )it increased yields and to obtain fair prices!

PRAN stands for Program for Rural Advancement Nationally!/ e largest fruit and vegetable processing industry in Banglades )it country)ide distribution net)ork AMCL5s PRAN is an establis ed brand of Banglades )it an e2tensive sales force all over t e country! PRAN ave a )ell:developed infrastructure for production4 sales and distribution! PRAN as proven itself as ; Local product but of international standard. AMCL )as launc ed in %&'< as an agri:business venture to=

*erve small farmers )it inputs! Marketing farm produce for profits! 7rgani>ing contract gro)ers to gro) specific crops! +2ports of agricultural products!

1 | Page

Agricultural Marketing Company Ltd.

*oon it )as apparent t at a processing facility )as imperative for a sustainable venture! AMCL t erefore set up a factory on ' acres in 6 orasal )it mac inery for bottling and canning in May %&&%! / e factory as e2panded substantially over t e last & years in all sp eres of food processing e!g! bottling4 canning4 pulping4 pickling4 concentrating as )ell as installation of Banglades 5s first /etra:Pack facility and a modern +2trusion plant for snack food! Mac inery for all t ese lines are being installed4 e2panded4 modified and fabricated continuously! AMCL are very keen to adopt a ne) tec nology as it is discovered because of being in suc a competitive market! PRA %& R ? 1 are al)ays )orking ard for a better tec nology of production! All departments5 administrative )orks are done t roug connected computers using t e best soft)are and ard)are! Being a ma@or e2porter PRA as to communicate a lot )it outside suppliers4 retailers or consumers! / erefore t is section is very important for AMCL! PRA as taken t is communication issue very seriously! / ey often ave to do meetings by doing teleconferences4 internet s opping4 video conference etc! AMCL provides )it good 0uality products conforming to local tastes4 ealt and ygienic standards ) ic are of affordable price and )it in t e reac of target consumers! / is is t e first and largest #'O (001 certified food processing industry in Banglades !

1.) Corporate O**ice:

Head O**ice: PR7P+R/A B"+6B/*4 %$ R!C! Mission Road4 Moti@ eel4 1 aka:%$(#4 Banglades ! +actory: 6 orasal4 Palas 4 Nars ingdi4 Banglades !

1., "i&ion: "mproving liveli ood! 1.- Mi&&ion: D/o generate employment and dignity and self respect for t eir compatriots t roug profitable enterprises!E 1.. /uality policy:

"t is t e policy of agricultural marketing co! ltd! to market products of consistent 0uality at ome and abroad as per )orld standards produced ygienically in accordance )it good manufacturing% practices in state: of: t e: art plants and processes 4 packed in appropriate packaging and remain committed to t ese ob@ectives at all times!

2 | Page

Agricultural Marketing Company Ltd.

AMCL ave adopted "*7 ;&((% as t e model for t eir 0uality mgt! system! Accordingly a documented system of procedures and instructions as been establis ed t roug out t e organi>ation defining business processes4 responsibilities and aut orities! Nature of the company : PRAN in Banglades are blessed )it a climate ideally suited to agriculture 4 specially fruits and vegetables ; ric is taste and flavor 4 s)eet 4 mello) and @uicy!
%!, Consumer benefit=

F "nternational 0uality Products F Competitive price F 9ide rage of products t at meet t e re0uirement of t e consumers of all ages ? groups

1. 0 Quality certification:

Agricultural Marketing Co Ltd: PRAN is t e first food processing company in Banglades to ac ieve t e prestigious distinction "*7 &((%certification for t eir 0uality management system! / is supreme certification ensures t at PRAN Products reac t e consumers table maintaining t e ig est level of 0uality! " addition to "*74 PRAN as got international certifications like BALAL ? BACCP Sales and distribution network: /o make t e 6roup5s products available at t e every knock ? corner of t e country PRAN as developed t e best sales ? distribution net)ork all over t e country! /o ensure fast ? smoot distribution companies as set up & distribution depots ? ave appointed more t an %((( dealers all over t e country!
%!& 7b@ectives=

AMCL and it& 1rand name 2PRA 3 4a5e t6in o78ecti5e& 9 achieving social values with sustainable pecuniary advantage for all our stakeholders. 1.0 Corporate +ocu&
Poverty and unger are curses!

3 | Page

Agricultural Marketing Company Ltd.

1.10 "AL:E':
Customer:Partners ip

Customer satisfaction is t e benc mark for success! 9e delig t our customers t roug a )ide range of products and services t at are personali>ed4 fast4 reliable4 convenient4 0uality:driven4 yet cost:effective!
"ntegrity

Business integrity is a )ay of life for us! 9e strongly stand by integrity in all our dealings and ensure strict ad erence to t e ig est standards of business et ics!
Respect:for:People

9e believe t at people are our most valuable assets4 and )e re)ard e2cellence and initiative! 9e provide our people )it t e best possible )ork environment and treat t em like family members!
Professional:+ntrepreneurs ip

9it over t ree decades of e2perience4 )e offer in:dept kno)ledge of t e engineering business in "ndia! 7ur spirit of entrepreneurs ip enables us to overcome obstacles and comple2ities )it professional e2pertise!

%!%%6oals=

Guality maintenance and improvement! *atisfied customers! Bold on to t e current customers and again gain customer loyalty! 6ain competitive advantage over all t e competitors! /o double sales and e2pand production capacity every 3:' years! /o become one of t e biggest names in international fruit and vegetable processing industry

%!%$*cope=

/ e market of soft drinks and beverage is very competitive! 9e may say t at as a strong market! / is pro@ect paper is prepared as a marketing plan of a product of AMCL ) ic brand name is PRAN!

4 | Page

Agricultural Marketing Company Ltd.

1.1,;Met4odology:

/o prepare t is report4 standard met ods of report )riting ave been used! -or )riting t is report different types of data )ere needed to complete4 tabulate and analy>e! / e re0uired data )ere collected by using secondary sources! -or collecting data from secondary sources4 go t roug various )eb sites! After completion of t e data4 t ese )ere sorted into different categories!
1.1- Limitation:

/ e study suffered a number of limitations= %! Lack of t e part of e2perience of t e researc ers! $! 8nconfirmed accuracy of certain information ac0uired! #! Lack of information from t e primary source! H! / e comparisons may not be effective enoug ! <! Lack of time for preparing t e report!

CHAPTER 0): # <:'TR! A AL!'#'

5 | Page

Agricultural Marketing Company Ltd.

/ualitati5e Analy&i&: A. #ndu&try Analy&i&:

a. O5erall economy analy&i& or macro economy analy&i&:

<emograp4ic:
Bot urban and rural people use some of PRAN5* product ) et er it may be a pickle or @elly! But most of it is used in urban area!

Age:
9e can divide t e age group bet)een < to <( or above t ose ) o uses product of PRAN!

#ncome:
Prices of PRAN5* products and lifestyle! are reasonable any one can afford it! 1ue to c anges in recent life style and current market trend4 in t e market t ere are varieties of products similar to t at of PRAN5*! And if )e see t an4 people still prefer PRAN5* product!

Tec4nology:
9it t e aim to continuously en ance its product and a turnover for sustaining business gro)t particularly in t e face of increasing competition in t e local market mentionable t e cola plant and t e second fully automated Reverse 7smosis tec nology! A7C" tec nology based P+/ blo)ing mac ines ave been installed! At t e same time for developing B1P+ drinking )ater bottles suitable for t e e2port market a B1P+ blo) molding mac ine as also been installed during t is period ! A ne) administration building as been constructed toget er )it a )ell e0uipped modern laboratory to improve production and product 0uality management at t e factory! Politics= "n every industry t ere is a trade union! 9 en some demands of t e )orker are not met t ey are going t roug t e grievance procedure ) ic sometime turn to strike and lock out situation ) ic adversely effect on company5s overall performance and production!

6 | Page

Agricultural Marketing Company Ltd.

7. #ndu&try li*e cycle:

"ndustry life cycle analysis can vary based on o) muc detail )e )ant! A five stage model )ould include: %! Pioneering development! $! Rapid accelerating gro)t !! #! Mature gro)t ! H! *tabili>ation and market maturity! <! 1eclaration of gro)t and decline! / e figure s o)s t e gro)t pat of sales during eac stage! /o estimate industry5s sales t ey muc predict t e lengt of time for eac stage! / is re0uires ans)er to suc 0uestion as ; a! Bo) long )ill an industry gro) at an accelerating rateI b! Bo) long )ill it be in t e mature gro)t p ase before it sales4 gro)t 4 stabili>es and t en declinesI *o to determine t e sales estimate )e briefly describe t ese stages= %! Pioneering development= 1uring t is start up stage t e industry e2periences modest sales gro)t and very small on negative profit margin and profits! Bere time period is small and firms incur ma@or development cost! $! Rapid accelerating gro)t = 1uring t is stage a market develops for t e product or service and demand become substantial! / e profit margins are very ig 4 sales4 gro)t rate are moving at an increasing rate to meet e2cess demand! 1uring t is p ase profit can gro) at over %((J a year! #! Mature gro)t = "n t is stage4 future sales gro)t may be above normal but it no longer accelerate! Bere t e rapid gro)t of sales and a ig profit margin attract competitors to t e industry ) ic causes an increasing in supply and lo)er prices ) ic mean t e profit margin begin to decline to normal levels! H! *tabili>ation and market maturity= 1uring t is stage investor can estimate gro)t easily because sales correlate ig ly )it an economic series! Bere competition produces tig t profit margins and t e rates of return on capital eventually become e0ual to or slig tly belo) t e competitive level! <! 1eclaration of gro)t and decline= "n t is stage t e industry sales gro)t decline because of s ifts in demand or gro)t of substitutes! Profit margin continues to be s0uee>ed and some firms e2perience lo) profits or even!

7 | Page

Agricultural Marketing Company Ltd.

PRA and it& po&ition in t4e indu&try li*e cycle:

Analy>ing t eir market situation4 sales estimate and future plan t is industry are currently stayed in t e mature gro)t stage! "n t is stage future sales gro)t may be above normal but it no longer accelerate! Besides4 t e rapid gro)t of sales and t e ig profit margins attracts competitors to t e industry ) ic causes an increase in supply and lo)er prices ) ic means t at t e profit margins began to decline to normal stage!

C. Competiti5e &trategy analy&i&:

Porter& . generic model:
/o grab t e empty market or keep t e current market place t e company can take several strategies! / e pro@ect analysis may informally talk to customer4 competitors4 middleman or ot ers of t e industry or e may look at t e competitors of t e company to learn about t e performance and t eir purc asing po)er of t e customer action and strategy! 7r t ey may simply go along )it t e porters five factor model=

1. T4reat o* ne6 = potential entrant&:

A ne) entrant in an industry represents a competitive t reat to t e stabili>ed firm! *o managers of t e stabili>ed firms usually go for barriers to entry! *o t e company may apply t e policy include= : +conomi>e to scale! Product diversification! *)itc ing cost! Access to distribution c annel!
2. Bargaining po)er of suppliers= 3. "n many industries t e cost of purc ased supplies accounts ,(:'(J at total

production cost! *uppliers potentials!

ave an important effect on industries pro@ect out t e

Considering unfavorable conditions of t e supplier company must )atc factors t at make t e suppliers group po)erful=: 6reater concentration among suppliers t an buyers! 1ominance by a fe) suppliers and lack of substitute product!

8 | Page

Agricultural Marketing Company Ltd.

Big differentiation among suppliers! Big differentiation by suppliers and ig s)itc ing cost for t e buyer!

,. 1argaining po6er o* t4e cu&tomer:

Buyers are t e conse0uential part of t e organi>ation! Buyers can e2ert bargaining over a supplier industry by forcing its prices do)n by reducing t e amount of goods t ey purc ased from t e industry or by demanding better 0uality for t e same price! / e manager of t e organi>ation must )atc out t e follo)ing factors t at lead to greater buyer po)er=: Credible t reat of back)ard integration by buyers! Price sensitivity of t e buyers! Relatively large volume purc ase! 6reater concentration in t e buyers industry t an in suppliers industry!

-. T4reat o* &u7&titute product:

9 en t e availability of substitute product is upper and prices are above t e follo)ing industry5s product prices4 customer tends to s)itc to substitute! Conse0uently manager must closely monitor substitute product t at are s o)ing improvement in performance or and decline in prices!

.. Ri5alry o* t4e e>i&ting *irm&:

"n t e current free market economy! Company as to face ig level of competition! / at is usually c aracteri>ed by in terms of price competition4 product differentiation and product innovation! *uc rivalry usually results from t e follo)ing factors= +0ually balanced competitors! Lack of differentiation! Lack of s)itc ing cost! Large increasing manufacturing capacity! ! Big e2ist barriers!

9 | Page

Agricultural Marketing Company Ltd.

Considering t e above factors t e management of t e company s ould set up t eir market strategy! 7n t e vie) to grab t e ne) market place and keep in and t e old one!

d. #ndu&try gro6&:
Financial performance of Pran ompany:

et A&&et et Pro*it Price Earning per A <i5idend "alue Per A*ter Ta> Earning A <i5idend &4are !ield '4are ?mn@ Ratio $((( H$!$( $<'!#& ##!3, &!'3 $( H!'( $((% <$!H' $'H!,( H%!&& 3!(< $( <!H% $(($ <H!$, #%$!'$ H#!H% ,!&% $< ,!,3 $((# <<!H' #H#!#& HH!#& 3!,3 $H <!,H $((H <(!#& #,$!$3 H(!#% %#!#% $H!(( #!'3 $((< <(!&, #',!<< H(!33 3!', $,!(( ,!H& $((, #,!%' #&,!%% $'!&< %(!,3 $,!(( 3!(( No) )e compare t e financial performance of Pran Company )it t e ape2 foods company! *o )e present t e financial performance of ape2 -oods Company! !ear

Ape> +ood:
et A&&et Earning per "alue Per &4are '4are %,!(< ,#$!3% %,!<' ,#&!$& %H!&$ ,#H!,' $$!3< ,H,!H' $,!$& ,<&!33 $$!33 ,3&!,% $%!3, ,',!#3 et Pro*it A*ter Ta> ?mn@ &!%< &!H, '!<% %$!&3 %H!&& %$!&' %$!H% Price Earning Ratio ( %<!'$ %'!'' %<!%( %3!H% %<!$% ,!((

!ear $((( $((% $(($ $((# $((H $((< $((,

A <i5idend %( %( %$ %$ %#!(( %<!(( %,!((

A <i5idend !ield $!<3 #!'% H!$, #!H& $!'H H!#, H!((

+inancial Per*ormance:
According to t e follo)ing grap s and financial performance of bot of t e companies )e can anticipate t eir industry gro)t of t e said companies! +2cept net

10 | P a g e

Agricultural Marketing Company Ltd.

asset value per s are in $((# to $((, of Ape2Ks is ig er t an t at of Pran!7t er t an t at overall performance 7- Pran is ig er t an rest of t e agro based companies in t e industry

e. Company Analy&i&: '$OT Analy&i&:

*97/ analysis involves an e2amination of a firm5s strengt 4 )eakness opportunities4 and t reats! "t elps to evaluate firm5s strategies to e2ploit its competitive advantages or defend against its )eakness! *trengt and )eakness involve identifying t e firm5s internal abilities or lack t ereof! 7pportunities and t reat includes e2ternal situation suc as competitive forces discovery and development of ne) tec nologies4 government regulations and domestic and international economic trends! / e strengt s of a company give t e firm a comparative advantage in t e market place! Perceived strengt can include good customer service or strong financial resources! /o remain strengt t ey must continue to be developed4 maintained and defended t roug prudent capital investment polices! 9eakness result ) en competitors ave potentially e2ploitable advantages over t e firm! 7nce )eaknesses are identified4 t e firm can select strategies to mitigate or correct t e )eakness! 7pportunities or environmental factors t at favor t e firm can include a gro)ing market for t e firm5s products4 s rinking competition favorable e2c ange rate s ifts a financial community t at as confidence in t e outlook for t e industry or firm or identification of a ne) market or product segment! / reats are environmental factors t at can inder t e firm in ac ieving its goals! "t )ould include a slo)ing domestic economy 4 additional government regulation an increase in industry competition4 t reat of entry 4 buyers or suppliers4 seeking to increase t eir bargaining po)er or ne) tec nology t at can absolute t e industry5 s product! No) )e discussed t e *97/ analysis

'trengt4: 1rand image:

-irstly4 PRAN as stayed in t e local market in Banglades for many years! *o t ey are so e2perienced and stationed in people5s mind deeply! +veryone in Banglades is a)are of PRAN! PRAN portrays different kinds of products ) ic are already e2ist
11 | P a g e

Agricultural Marketing Company Ltd.

in t e market and people like it! *o t ere is strong brand preference for PRAN over ot er substitutes in t e mind of a number of consumers!

'uperior Buality control mea&ure&:

PRAN maintain and control t e superior 0uality of t e product! "t is t e policy of agricultural marketing company limited to market products of consistent 0uality at ome and abroad as per )ould standards produced by in accordance )it good manufacturing practices!

#ntegrity:

PRAN believes success depends upon t e 0uality and value of t eir products by providing a safe4 ) olesome economically efficient and a ealt y environment for t eir customers and by providing a fair return to t eir investors ) ile maintaining t e ig est standards of integrity!

C Market &4are:

Because of t e variety of t e product PRAN leads in t e s are market and increasing t e market s are!

C Cu&tomer &ati&*action:

9 enever PRAN e2ist in t e market4 t at time customer consumed t eir product! / ey launc different kinds of product and t e price of t e product is measurable! *o t e customer satisfied )it t e PRAN product!

$eakne&&e&:

Limited decision taking capacity= / e PRAN Company is e2isting under t e rules and regulation of agricultural marketing company limited! *o PRAN can not take any instant decision to ad@ust t e sudden market c anges! Price disadvantage= *ometime price of t e product may be varying because of ra) material! Because t e price of t e ra) material ) ic is also t e key ingredient of t eir product line4 is comparatively e2pensive t an t at of t eir competitors in Banglades especially t e emerging ones! *o t is makes t em sell t eir products at a ig er cost t an most of t eir competitors! Lo)est per capita consumption= Banglades as t e lo)est per capita consumption in t e entire )orld! *o upper class and middle class can bear t e PRAN product but t e lo)er class people can not bear it!

12 | P a g e

Agricultural Marketing Company Ltd.

Lack of geograp ical coverage= *ometime t e PRAN product can not reac in t e definite geograp ical area because of lack of communication!

Opportunitie&:

L / e agriculture sector is t e largest contributor to 61P! *o PRAN produced canned fruit and vegetables4 mus rooms etc and it is t e part of agriculture! *o it5s an opportunity to contribute to 61P! L / e crop production system is ig ly labor intensive and t ere is an abundance of labor in t e country! L / roug t e production of t e PRAN product t e employment opportunity are increased in Banglades ! L / roug t e production of t e good product t ere is a great opportunity to attract t e foreign investors! L Company can develop t e effective distribution system! L PRAN Company can make survey to make effective product! !hreats: L 8ncertainty in receiving fair prices L PRAN mainly produced t e agro: based product and most of t e products are peris able! *o it as to be preserved system! L "nade0uacy of appropriate tec nology! L Lack of re0uired capital! L 1ecreasing market s are! L Ma@or prolonged economic depression! L Reduces t e customer due to lo) 0uality of t e product! Opportunitie& T4reat& 'trengt4& $eakne&&e& overage:

13 | P a g e

Agricultural Marketing Company Ltd.

6enerally speaking4 at t e time to cover t e follo)ing aspects4 )e s ould look into t e follo)ing matter

-inancial Aspects P ysical Resources

M Capital of o)ner M Buildings M Cas flo) M Plant ? mac inery M Access to additional resources M /ec nology N incubator parks M "nvestment re0uirement M Location M Profitability M /ransport facilities M Risk M "nfrastructure ? utilities M "ndustrial flatsNestates

Management4 *upervisory And 7perator Capabilities Market

M Management competence M Profile of target market M AgeNe2perience M Competitors5 marketing strategy M *kills availability M Market s are M /ec nological kno): o) M Product featuresN0uality M Management contactsNnet)ork M +2pandingNcontractingNstagnant market M *alesmans ip of o)nerNstaff M Market nic e for ne)Ne2isting product M Personnel management M 1emand Nsupply situations (past4 pre sent4 future) / e first is measuring a company5s business as an investment portfolio! / e second involves assessing eac businesses strengt by considering t e markets gro)t rate and t e company5s position and fit in t e market! / e t ird is establis ing a strategy!

14 | P a g e

Agricultural Marketing Company Ltd.

Corporate and di5i&ion &trategic planning:

All corporate Bead0uarters undertake four planning activities= 1efining t e corporate mission +stablis ing strategic business unit(*B8) Assigning resource to eac Planning ne) business4 do)nsi>ing or terminating older business! As )e kno) Banglades is an industry arena! RAN is also not different from t ese vie)s! 9e ave already learned about t eir corporate mission! Mission statement is at t eir best ) en t ey are guided by a vision! !he " # $atri% &valuation of P'(N: 'tar PRA D /ue&tion '/:ARE Ca&4 Co6 ACME <og 1<

-actors underlying market attractiveness and competitive position of PRAN=

Market attracti5ene&&:
7verall market si>e Large Annual market gro)t ness Better Bistorical profit margin $((, /ec nological re0uirement Modern +nvironmental impact friendly

1u&ine&& &trengt4:
Market s are -airly large Product 0uality Best Brand reputation .ery good 1istribution net)ork *trong 8nit costs minimum
15 | P a g e

Agricultural Marketing Company Ltd.

1u&ine&& &trategy o* PRA :

still no) )e can generally say t at PRAN is olding first position in t e agro based industry! / oug it ave different types of food product! / is firm as fairly large market s are in t e relevant product market and usually leads t e ot er firms in price c anges4 ne) product introductions4 distribution coverage and promotional intensity But pran ave to be alert on # founds to stay n t e industry! / e firm must find )ays to e2pand total market demand t at is si>e of t e market! / e firm must protect its current market s are t roug good defensive and offensive actions! / ird t e firm can try to increase its market s are even if t e market si>e remains constant! / roug above discussion )e came to kno) inspite of aving different product still it needs to be e2ercise t e leaders ip strategy because if )e considered PRAN to be as number one t en ACM+4 *G8AR+ food products4 B1 food t e firm5s kno)n as c allengers follo)ers soon )ell catc up t e first position! P('!)*

/uantitati5e analy&i& a. Ratio analy&i&:

Ratio analysis involves met ods of calculating and interpreting financial ratios to analy>e and monitor t e firm5s performance! / e basic inputs to ratio analysis are firm5s income statement and balance s eet!

"nterested parties=
Ratio analysis of a firm5s financial statement is of interest to s are olders4 creditors and t e firms o)n management! Bot present and prospective s are olders are interested in t e firm5s current and future level of risk and return4 ) ic directly affects s are price! / e firm5s creditors are interested primarily in t e s irt term li0uidity of t e company and its ability to make interest and principal payments! A secondary concern of creditors is t e firm5s profitabilityO t ey )ant assurance t at t e business is ealt y! Management4 like stock olders is concerned )it all aspect of t e firm5s financial situation4 and it attempts to produce financial ratios t at )ill be considered favorable by bot o)ners and creditors! "n addition4 Management uses ratios to monitor t e firm5s performance from period to period!

16 | P a g e

Agricultural Marketing Company Ltd.

LiBuidity Ratio:
For the year +,,*: urrent ratio: E 1.25098 -uick ratio: E E E E %!$$' For the year +,,.: urrent ratio: E %!$#,< -uick ratio: E %!$HH For the year +,,/: urrent ratio: E %!#$$% -uick ratio: E %!$&<< For the year +,,0: urrent ratio: E %!#H,< -uick ratio:
17 | P a g e

Agricultural Marketing Company Ltd.

E %!#$%

#nterpretation:
/ e standard rate of current ratio is %!$<=%!According to t e company in every year ($((#:$((,) t e current ratio is bet)een %!$<=%!so t ese values are acceptable! And t e standard rate of 0uick ratio is %=%!according to t e company4 t e rate is bet)een %!$# to %!#$!so t ese are acceptable!

Le5erage ratio:
For the year +,,*: !otal debt ratio: E 3<J 1ebt e2uity ratio: E ,#!$3J 3nterest coverage ratio: E %!,& For the year +,,.: !otal debt ratio: E 3H!,'J 1ebt e2uity ratio: E <(!<#J 3nterest coverage ratio: 4 17.95 For the year +,,/: !otal debt ratio: E 3$!3,J

18 | P a g e

Agricultural Marketing Company Ltd.

1ebt e2uity ratio: E <(!$3J 3nterest coverage ratio: E %!3H For the year +,,0: !otal debt ratio: E 3%!H(J 1ebt e2uity ratio: E H<!%'J 3nterest coverage ratio: E %!#'' 3nterpretation: "n t e total debt ratio4 )e assume t at t e amount of total debt ratio and debt e0uity ratio ) ic are identified is e0ual )it %! (ctivity ratio: 5n the year +,,*: 3nventory turnover: E %$!,% times (verage collection period: E 3!#' !otal asset turnover: E !3&3H For the year +,,.: 3nventory turnover:

19 | P a g e

Agricultural Marketing Company Ltd.

E %$!(% times (verage collection period: E %H!%( !otal asset turnover: E !'((H< For the year +,,/: 3nventory turnover: E %#!'< times (verage collection period: E %&!HH !otal asset turnover: E !'(%$( For the year +,,0: 3nventory turnover: E %'!&# times (verage collection period: E %&!%< !otal asset turnover: E !'3<% #'(P6S

#nterpretation:
ere t e standard rate of inventory turnover is 3 times4 average collection period is #, days and total asset turnover is %!< times! According to t e company t e rate of inventory turnover is greater t an t e standard rate so it is acceptable! / en

20 | P a g e

Agricultural Marketing Company Ltd.

according to t e company4 t e rate of average collection period is less t an t e standard rate so it is not acceptable! and t e rate of total asset turnover is less t an t e standard rate so it is not acceptable!

Pro*ita7ility ratio:
For the year +,,*: #ross profit margin: E $,!(HJ Net profit margin: E .(H3($H E H!3J For year +,,.: #ross profit margin: E $<!&(J Net profit margin: E H!%,J For the year +,,/: #ross profit margin: E <!,3J Net profit margin: E H!(& For the year +,,0 #ross profit margin: E $$!&3J Net profit margin:

21 | P a g e

Agricultural Marketing Company Ltd.

E $!&$J

#nterpretation:
t e standard rate of gross profit margin is $(J:#(J and net profit margin is <J: %(J!according to t e company profile t e gross profit margin is acceptable but t e net profit margin is not acceptable! b. 1upont analysis: / e 1upont system analysis is used to dissect t e firm5s financial statements and to assess its financial condition! "t merges t e income statement and balance s eet into t)o summary measures of profitabilityO R7A and R7+!

ROE *or t4e PRA Company:

+,,*: R7+ P X P<!'& P %<J +,,.: R7+ P X P<!$ P%#J +,,/: R7+ P X P%$J +,,0: R7+ P X P&J '53 for total industry=

22 | P a g e

Agricultural Marketing Company Ltd.

+,,*: R7+ P X P%'J +,,.: R7+ P X P%$J '53 for the P'(N R7" P P<J +,,. R7" P PHJ +,,/ R7" P P PHJ +,,0 R7" P P P#J '53 of total industry: +,,*: R7" P ompany

23 | P a g e

Agricultural Marketing Company Ltd.

P P#!<J +,,.: RO ! !2."# For the ($ 7 8pran9: Aear R7A R7+ $((# <!'& !3&3 H!,& #!$% %< $((H <!$ !'((H H!%, #!%# %# $((< <!%% !'(%$ H!(& #!(% %$ $((, #!## !'3<% $!&% $!&# & For the overall industry: Aear R7A R7+ $((# H!$H !'# #!< <!%$ $((H $!H< !&& $!H H!33

<eci&ion:
1upont e0uation4 ) ic s o)s o) t e profit margin4 t e assets turnover ratio4 and t e e0uity multiplier combined to determine t e R7+4 and t e use of debt interact to determine t e return on e0uity!Pran5s management4 can use t e 1upont system to analy>e )ays of improving performance! As a result of suc an analysis PRAN may ave to develop ne) product and s ift capital into ne) areas!PRAN5s R7+ is %<Qoverall industry R7+%3!&$ t oug PRAN5s R7A is H!,& Foverall industry R7A #!<! PRAN is seeking a ig er return on e0uity and overall agro based industry recogni>es t at if competition drives profit margin too lo) in a particular market4 it )ill be impossible to earn ig returns on t e capital investor to serve t e market!

C: 'en&iti5ity analy&i&:
F5' !6& :&(' +,,* *ales (:) Cost of goods sold '$3&'%$<( (<<,,,'H&&)

24 | P a g e

Agricultural Marketing Company Ltd.

6ross profit $3%#%$3<$ (:) e2pense = Administrative and selling ('%(H'HH3) -inancial +2pense (,,H%H%<&) operating profit %$#'<(%H< Contribution to )orkers participation ? )elfare fund ($H$'&<,) Net profit before ta2 %$%H$%%'& (%3,#$#<) Provision for income ta2 Net profit after ta2 %%&,<3&<H 1ue to t e %(J increase in sales t e profit after ta2 c ange (increase) by %H!H<J! *o it is ig ly sensitive! F5' !6& :&(' +,,. *ales '<$,HH&<% R<3H#<$('() (:)cost of goods sold 6ross profit $3'$&$'3& (e2pense) Administrative and selling ('%#<,<$& -inancial e2pense (3<<33&3H) %$%#<'#,' 7perating profit Contribution to )orkers participation ? )elfare fund ($%&$$,() Net profit before ta2 %%&%,,%(' (%#H#3&<) Provision for income ta2 Net profit after ta2 %%3'$$#%# 1ue to t e %(J increase in sales t e profit after ta2 c ange (increase) by %#!'%J!*o it is ig ly sensitive! F5' !6& :&(' +,,/ *ales (:)Cost of goods sold 6ross profit (:)e2pense Administrative and selling -inancial e2pense '33H<3,3, (<&$'3($,H) $'H<'%H%$ ('$H'<<H() (33<<#&%H)

25 | P a g e

Agricultural Marketing Company Ltd.

7perating profit %$H<H%&<' Contribution to )orkers participation ? )elfare fund ($$#','%) Net profit before ta2 %$$#(#$33 Provision for income ta2 (%3,#%',) %$(<H((&% Net profit after ta2 1ue to t e %(J increase in sales4 t e profit after ta2 c ange (increase) by %#!3#J!*o it is ig ly sensitive! F5' !6& :&(' +,,0 *ales &<#3((&(' (,,33,''<<) Cost of goods sold 6ross profit $'<&#$(<# (:)+2pense Administrative and selling (',#<&(,#) ('(((%%<#) -inancial e2pense 7perating profit %%&<3%'#3 Contribution to )orkers participation ? )elfare fund (%,H#<'') Net profit before ta2 %%3&$'$H& Provision for income ta2 ($$'(H<#) %%<,H33&, Net profit after ta2 1ue to t e %(J increase in sales4 t e profit after ta2 c ange (increase) by %$!%$J!so it is ig ly sensitive d. ;aluation alculation of sustainable growth: year R7+ RatioP %: *ustainable gro)t rate $((# %<J %: P !<,3 '!< $((H %#J %:P!<$# ,!3& $((< %$J %:P!H'& <!', $((, &J %:P!$'% $!<$ P (%Sg) P $,(%S!($<$)

26 | P a g e

Agricultural Marketing Company Ltd.

P$,!,< Cost of common stock P Sg P S!($<$ P &!HJ! P #'3

<eci&ion:
if intrinsic value is F t an Market price! / en )e can old t e s are! 9 en intrinsic value Q t en market price )e ave to sell t e s ares! / oug 4 ere t e c ange is partial (increase) so4 )e old or purc ase of ne) s are!

e. Ri&k analy&i&: FFFF..not need

"usiness risk: t e risk to t e firm of being unable to cover operating cost: is assumed to be unc anged !t ese assumptions means t at t e firm5s acceptance of a given pro@ects does not effect its ability to meet operating costs! sales $((# $((H $((< $((, 3<$3!%($$3 33<%!#%33H 3&3,!'##H$ ',3(!(('$< P3&'%!#%<H$ Standard deviation P'<,!H< ;: P!%( F5' industry: *ales $((# $((H %##<'3 %#H,#$

27 | P a g e

Agricultural Marketing Company Ltd.

P%#H%(&!< Standard deviation= P3#'!&$ ;: PP P!((<< Financial 'isk: / e risk to t e firm of being unable to cover re0uired financial obligations (interest4 lease payments4 preferred stock dividends):is assumed to be unc anged! / is assumptions means t at pro@ects are financed in suc a )ay t at t e firm5s ability to meet re0uired financing cost is unc anged! $((# /otal debt ratio 3<J $((H $((< $((, 1ebt /otal debt 1ebt /otal debt 1ebt /otal debt 1ebt e0uity ratio ratio e0uity ratio ratio e0uity ratio ratio e0uity ratio ,#!$3J 3H!,'J <(!<#J 3$!3,J <(!$3J 3%!H(J H<!%'J

1ecision: if t e value is more t an !< t en t e value is good and if t e value is less t an !< t en t e value is bad! Bere all t e value is more t an !< so t at )e can say t at t e firms ave t e ability to meet t e re0uired financing!

5$$5N S3<& 5F "(7(N S!(!&$&N!

S6&&! (N1 3N 5$&

common si>e of balance s eet Net asset $((# $((H $((< $((, /angible fi2ed asset #3J #HJ #$J #(J At cost less depriciation investment(at cost) %&J $J $J $J Current Asset stock trade debtors advances and deposits cas and cas e0uivalants /otal liabilities and s are older e0uity

H'J %!,(J &!,(J %!&(J %((J

<%J #J 'J $J %((J

H&J HJ %(J #J %((J

<(J <J &J HJ %((J

28 | P a g e

Agricultural Marketing Company Ltd.

current liability current position of long term loan and debtor H!'#J s ort term loan for bank H(!&3J liabilities for goods (!''J liabilities for e2penses %!3$J liabilities for ot er finance (!%3J income ta2 payable (!H3J unclaimed dividend (!%%J

HJ <J <J H#J H$J H#!((J %J %!#(J %!#(J $!((J (!&(J (!,#J (!(%J (!3,J (!%3J (!#,J (!<$J (!H<J (!<$J (!H'J (!H(J (!%#J (!$3J (!%<J

* are older e0uity s are capital s are premium reserve and surplus proposed dividend Long term debt /otal Common si>e of income statement

'!H'J H!$#J %,!#&J $!(#J

'J <J %'J $J

'J HJ %&J $J

'J HJ $(J $J

%&!3(J %,J %3J %,J %((J %((J %((J %((J

)00, )00- )00. )00G sales cost of goods sold administrative and selling finanacial e2pense contribution to )orkers participation and )elfare funds provision for income ta2 +i5e !ear& +inancial 'tati&tic& Part). %((J 3HJ %%J &J %((J 3HJ %(J &J %((J 3HJ %(J &J %((J 33J &!&(J &!$$J

(!#$J (!$'J (!$'J (!%'J (!$#J (!%3J (!$$J (!$,J

Conclu&ionH

29 | P a g e

Agricultural Marketing Company Ltd.

Pran is t e largest gro)er and processors of fruits and vegetables in t e country! At t e time of preparing t is term paper )e discover various )ays of doing financial and business calculations! *uc as )e did calculation of different ratios and analysis like $%&O'() *+'* ( , (-) ,.L%.( O') and R */ .'.L-* *. 9e also ad an idea of forecasting different business risks associated )it t e firm5s overall financial performance! After analy>ing t e financial statement of PRAN )e find out t at overall position of t e company in an agro based industry is in top position in Banglades !

CHAPTER 0,: COMPA ! A AL!'#'

'ource o* data:
7ur source of data is internet4 ot er company profile4 publis ed maga>ine by ot er company etc! )e also collect information from our e2perience!

Current market analy&i&:

According to t e information from different sources DPranE is no) t e market leader in t e @uice sector of soft drinks market! After Pran4 frutika4 fruto are in t e position! Most market s ares are no) olding by AMCL (Pran)4 ne2t frutika and t en fruto!

Product Re5ie6:
Among many of t eir products PRA %& main product is t eir fruit @uice and fruit drinks4 ) ic is very popular among t e e2isting market! / e product line is=

-ruit @uice in glass bottle (returnable)=

30 | P a g e

Agricultural Marketing Company Ltd.

"t is ygienically produced by state:of:t e:art mac inery! Available in mango flavor4 made from fres local ripe mangoes!

-ruit @uice in glass bottle (non:returnable)=

/ is category of @uice is found in non:returnable glass bottle in flavors of mango= guava and orange.

-ruit @uice in aseptic pack=

Available flavors in t is category are= mango= lemon= orange= pineapple= guava and mango)pine.

-ruit @uice in can=

/ e fruit @uices in cans are ygienically produced by state:of:t e:art mac ine from flavors of mango= orange and guava.

Revie) of competitors=

Currently t ere are so many @uice companies in our country! Among t em pran is t e leader of @uice sector in Banglades ! +2cept pran4 Lemu4 Mo@o4 RC cola4 Pepsi4 8R7 Cola4 .irgin4 -ruti4 Coca cola4 3up4 /iger! * e>an Tuice4 Rasna!

Review of distribution:

Pran primarily use e2isting distributors for distributing t eir product Pran Iuice t enO t ey make some ne) c annels and assign some distributors to promote t eir product to all over t e country! *o pran deal )it t is c ain= Manu*acturer J $4ole&alerJ RetailerJ Cu&tomer +igure: <i&tri7ution C4annel Company using mobile s op in t e s opping malls4 offices and cro)ded areas so t at people can purc ase t e product easily ) en t ey like to consume! 9e )ill make our consumer by "alue <eli5ery et6ork.

'$OT Analy&i&: 'trengt4&:

Ko5ernment &upport:

31 | P a g e

Agricultural Marketing Company Ltd.

Being t e biggest local force in t e industry AMCL al)ays ad government by its side! 6overnment as been supporting PRA in many )ays like subsidies4 e2port subsidies4 tariffs on foreign competitors etc.

+ir&t mo5er%& ad5antage:

PRA entered t e market ) en t e product )as still very ne) to t e consumers and t ere )as little or no presence of any ot er local companies )it suc investment! / erefore PRA ad t e first mover5s advantage ) ic t ey are still en@oying till no)!

#nternal &trengt4:
AMCL as a very po)erful management team to guide a strong gigantic )orkforce! 1espite its uge si>e PRA as been able to maintain labor productivity and increasing sales! "ts labor productivity is t)ice as muc as any ot er local company in t e market (Not foreign companies)!

Market &4are:
PRA AMCL as a great competitive advantage over t e ot er competitors! As mentioned earlier it is t e largest fruit and vegetable processing industry in Banglades and olds t e biggest s are in markets in Banglades among t e local companies! PRA as t e largest sales in fruit drinks after Coca:Cola and PepsiCo!

$eakne&&e&:

+2ternal t reats=
/oo muc competition from international organi>ations4 for e2ample Coca: Cola4 PepsiCo4 RC:Cola4 .irgin Cola4 Rasna ("ndia)4 * e>an (Pakistan) etc!

"nternal )eaknesses=
Large si>e of t e business and )orkforce makes it difficult to manage perfectly! As a result it often causes internal conflict!

Opportunitie&

+2isting competitor of t e current market is not t at muc strong ) ic t e pran company as! Pran can be e2port to ot er countries! +2isting distribution c annel is being used!
32 | P a g e

Agricultural Marketing Company Ltd.

Big gro)t rate in t is industry!

/ reats

Competitor can produce t e same product! 1o)n)ard pressure on pricing! Political instability4 economy etc! Ne) innovation from ot er competitors could be a t reat!

Marketing 'trategy Po&itioning

Pran al)ays try to position t eir product t roug image differentiation4 because related marketing4 and product differentiation! Pran )ill use logo and s ort advertisement so t at people can consistently see t e advertisement so t e product )ill occupy a clear4 distinctive4 and desirable place in t e mind of t e consumer relative to competitors5 product! Pran )ill use 8*P (8ni0ue *elling Proposition) for t eir product! /o do brand differences t at make a better differentiation or t at as t e potential to create company costs as )ell as customer benefits! A difference is )ort establis ing to t e e2tent t at it satisfies t e follo)ing criteria!

U "mportant U 1istinctive U *uperior U Communicable U Affordable and Profitable

Marketing Mi>:
7ur marketing mi2es for t e product Pran are

Product Marketing:
-or launc ing a product in t e market4 t ere is some procedure t at s ould be follo)ed by every marketer to move in t e long run! 7ur product )ill enable our customers to ave a different e2perience to try our @uice! / ey )ill be able to differentiate our product in 0uality ) ic is uni0ue in t e soft drinks market! / ey )ill not be able to feel t e same )ay for t e ot er soft drinks in t e market!

Pricing 'trategie&:
33 | P a g e

Agricultural Marketing Company Ltd.

9e s all c arge based on D7ver ead +2pensesE and DCost PlusE! 7ver ead +2penses include rent4 gas and electricity4 business telep one calls4 packing and s ipping supplies4 delivery and freig t c arges4 cleaning4 insurance4 office supplies4 postage4 payroll ta2es4 repairs4 and maintenance! / e accuracy of our costing )ill depend on estimating logical amounts for all categories of e2penses! 9e ave to list all over ead e2pense items and total t ey divide t e total over ead figure by t e number of items per mont (or time period )e used above)! / e ans)er is our over ead per item= O5er4ead L Material& L La7or E Total Co&t=#tem -rom t e market researc 4 )e received t e follo)ing: Company +ruti?).0ml@ Mo8o ?).0ml@ Pran?).0 ml@ ame Price 1. 1. 1.

Ta7le: Price o* di**erent 7rand&. 9e )ant to c arge $<( ml Pran soft drinks at t e selling price of /k!%H! 7n t e ot er and4 t e prices for Pran soft drinks are to be c arged for <(( ml /k!#$4 for %((( ml /k! ,(!

Place or <i&tri7ution:
9e )ill primarily use our e2isting distributors for distributing our ne) product Pran Iuice t enO )e )ill make some ne) c annels and assign some distributors to promote our product to all over t e country! 9e are using mobile s op in t e s opping malls4 offices and cro)ded areas so t at people can purc ase t e product easily ) en t ey like to consume! 9e )ill make our consumer by "alue <eli5ery et6ork.

Ad5erti&ing and Promotion:

/ e most successful advertising )ill be t roug 1T"M T"M C4annel #M AT 1angla and RT" ) ic are t e most popular television c annels in t e country! 9e )ill also use some bill:boards and leaflets and )e )ill old a sport event to promote t e product! 9e )ill also use our e2perience so t at )e can create attention to t e customers!
34 | P a g e

Agricultural Marketing Company Ltd.

Target market
7ur main target market people are t e young ages people ) o like to drink @uice very muc ! Mostly t e sc ool going students and t e c ildren! Beside t at )e also focus t e young generation people! Alt oug our main target market is young people but )e also prefer t e people of adult and old ages people!

+oreca&t and +inancial analy&i&:

it @ust a ypot etical forecasting and financial analysis: / e brands of DPran IuiceE )ill be introduced in *eptember! 9e make an action program for t e ne2t four mont s! And )e believe t at4 if our four mont action programs )ill run )ell4 t en )e )ill ac ieve our goals easily!

Iune:
"n Tune )e )ill arrange meeting )it our suppliers4 dealers! And talk about our ne) product5s 0uality4 product development etc! 7ur product is lo) involvement and buyers s o) abitual buying be avior! / en )e )ill start production ne) Pran Tuice!

Iuly:
After meeting )it t e dealers )e )ill provide sample Pran Tuice to our customers for getting publicity! 7n t e ot er and )e )ill give advertise of our ne) product in t e /elevision4 Radio4 Bill Board4 Banners4 and in t e Poster! / en )e )ill launc our product in to t e market! "n t e primary stage )e )ill produce $<(ml and <((ml can!

Augu&t:
After doing our successful operations of t)o mont 4 at t e t ird mont )e give e2tra benefits to t e dealers and sellers to improve our sales! 9e )ill give small toysO arrange game! 7bserving t e situations4 at t is stage )e )ill produce $<(ml can4 and <((ml can for t e consumers! "n t is mont )e )ill start to produce %(((ml can! And t is mont our product )ill be available in almost every s op of t e country!

'eptem7er:
"n our last mont of action program4 if situation )ill favorable t en )e go for 1ivisional dealers to distribute to t e ) ole country! 7bserving and analy>ing )e take necessary actions to develop product sales and increase our profit! "n t is )ay )e )ill continue our production and give a particular image to t e mind of every customer!

35 | P a g e

Agricultural Marketing Company Ltd.

1udget:
/ is section )ill offer a financial overvie) four company as it relates to our marketing activities! 9e ave s o)n break:even information!

'ale& +oreca&t:
/ e sales forecast is broken do)n into t e t ree main revenue streamsO direct sales4 9eb sales4 consignment sales! / e sale forecast for t e upcoming year is based on #(J gro)t rate! 6ro)t rate for year $((, to $(%( are based on percentage increases as follo)s=

1irect sales $(J gro)t rate per year 9eb sales <(J gro)t rate per year! Consignment sales $(J gro)t rate year!

: *ee more at= ttp=NN)))!assignmentpoint!comNbusinessNmarketing: businessNmarketing:plan:in:pran! tmlVst as !M+1PN('u!dpuf

Pro*it=lo&&:

36 | P a g e

Agricultural Marketing Company Ltd.

Tanuary #%4$(%%4 AMCL(PRAN) As per un:audited alf yearly accounts as on #%!%$!%( (Tuly5%( to 1ec5%()4 t e company as reported net profit after ta2 of /k! %&!HH million )it +P* of /k! $H!$& as against /k! %3!(< million and /k! $%!#% respectively for t e same period of t e previous year!

Control:
7ur control depends on t e customer satisfaction! "f customer demand different t ings )it ) ic t ey feel comfortable4 t en )e simply c ange our controlling tec ni0ues!

Conclu&ion:
9e all kno) t at4 today5s fast moving )orld respect t e ne)4 innovative ideas! /o keep t e same pace )it t is situation our company ad decided to launc a Tuice and it as a brig t future in its market! As t e product is innovative4 t e consumers are going product )ill be a strong product mi2 for our company! And once our Iuice )ill reac to t e and of our targeted customers4 )e )ill be able to capture t e most market s ares! : *ee more at= ttp=NN)))!assignmentpoint!comNbusinessNmarketing: businessNmarketing:plan:in:pran! tmlVst as !T,nmnLCd!dpuf

37 | P a g e