Company profile of PRAN

Type of Company: Private Industry Food processing

Founded
: 17 March 1981
Founder
: Maj Gen (Retd.) Amjad Khan Chowdhury
Address
: Headquarters PRAN-RFL Center, 105, Progoti Sarani, Middle Badda, Dhaka
1212, Bangladesh.
Area served : South Asia, Africa, North America, Europe, and Middle East.
Key people : Maj Gen (Retd.) Amjad Khan Chowdhury (CEO)
Products
: Juice, drink, beverage, confectionery, culinary, snacks, biscuits, bakery, dairy
Revenue
: 123.3 billion (2012)
Employees
: 30,000
Website
: http://www.pranfoods.net

Company Background
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 70
countries from Bangladesh.

Executive Summary
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 introduce a new juice PRAN Apple Juice. As a
market manager I would like to introduce this product with a vision of achieving the top
position in the local market in future. Keeping the perspective mind the product will be
production in Bangladesh but raw material will be collective from some European countries
customer satisfaction. We collect raw material in European countries because Bangladeshi
farmers dont cultivate apple. We will set up a new production plant within our existing
logistic capacity to produce the final product. Our major competitors are 7 rings, Fontana,
Dewlands because they spend heavily in electronic & print media, merchandising and
distribution.
Our marketing strategy will be the reasonable price and the availability of products in all the
convenience stores and intensive promotional measure to expand the market which will
facilitate the marketing of future products to a considerable extent. Many comparative brands
were very aggressive are spent huge amount in an advertising during the last few year.

Tasks- 1
1.1 Market Strategy
PRAN Marketing strategies are primarily aimed at increasing market share and establish the
brand more dynamically. To implement the strategy we considered a unique product strategy
and an extensive promotional strategy. Proper packaging, positioning, pricing and distribution
strategy will also assist us to execute our strategy.
Target customers of PRAN Apple Juice are men, women and children. They take decision to
buy it. People of Bangladesh are not conscious about their health. So we help to the
customers to buying a best quality apple juice.
1.1.1 Target Market and Customer Profile of PRAN Apple Juice:
Demographic Profile:
Market
Age
Number of customer
Gander

: Bangladesh-Urban, Semi-urban & rural market

: 2+above
: 10 million
: Men, Women & Children

Behavioral Profile:
Occasion
Benefits
Customer status

: Regular
: Keep and strong health
: Regular

1.1.2 Positioning Strategy

Drink PRAN Apple juice and enjoy real apple flavor.
1.1.3 Product Strategy
Our product strategy includes development in product and also in packaging
A. Product decision Quality: high quality
Feature: different weight
B. Branding Brand will be positioned on Product Attribute Healthy Juice
C. Packaging 250ml, 500ml, 1000ml
1.1.4 Ingredients
Apple, Water, Refined Sugar, Citric Acid (E-330), Vitamin C, Vitamin A, Natural Identical
Apple Flavors.

1.1.5 Pricing Strategy

Competitive pricing scenario of PRAN Apple Juice expose that almost all the competitive
brands are parallel. 7 rings, Fontana, Dewland apple juice are offered at high price. However,
we like to follow the normal market practice this regard.

Product Type

Price

PRAN Apple Juice 250ml

Tk. 20

PRAN Apple Juice 500ml

Tk. 35

PRAN Apple Juice 1000ml

Tk. 60

1.2 Current Situation of the Present Market:

The estimated market size is approximately Tk. 150 million. Nearly 20% (Tk. 30 million) is
occupied by unbranded/loose sector. Major competitors are 7 rings, Fontana, Juiceka,
Dewlands. Category penetration is almost universal across big cities. 7 rings, Juiceka,
Dewlands brands have a strong image and popularity and this is due to considerable amount
of expenditure on promotion. Between these 7 rings and Dewlands brand are prevail in the
market since a long period. Recently a new brand named Fontana came up with a very
strong media campaign and has succeeded to shake the already established branded market.
1.2.1 Analysis of Market Size, Segment, Share & Growth:
Market Size:
Market size is approximately Tk. 150 million. Juices market is growing at the rate of 20% per
year. Market of this product is urban, semi-urban and also rural oriented. It is relatively a high
moving product. So every year it production and demand increase.
Market Segment:

Product

Market

PRAN Apple Juice

250ml

Urban & Semi urban market and same portion of rural market.

PRAN Apple Juice

500ml

Urban & Semi urban market and same portion of rural market.

PRAN Apple Juice

1000ml

Urban & Semi urban market and same portion of rural market.

Market Share:
A comparative analysis of the major competitors market share (Source: Super Shop- Agora,
Minna Bazar, Shopna, Fruit Shop) is given below:

Task- 2

Competitor

Market Share

7 rings

45.00%

Fontana

10.00%

Dewland

30.00%

Juiceka

5.00%

Others

10.00%

2.1 Main Advantage of PRAN Apple Juice:

It has no artificial color.

Raw materials are best quality.
Free from unhealthy chemicals.
Reasonable Price.
Local brand.

2.2 Market Situation

PRAN Apple Juice is expecting market share 15%. It is expected to increase sales
over the next few years because the market is expanding. The primary buyers are middle and
low class people, aged 3 to 60. Besides the foreign branded apple juices, here is no available
local branded apple juices in the market. Customers also want to buy 100% pure apple juice
product by a name they can trust. For this they seek help from different sources like different
media, relative, friends and other sources so that they can take decision in buying right
product.
Market size of apple juice in 2012-13
Market growth rate (per annual)
PRAN Apple juice expected turn over
PRAN Apple juice expected share
Expected Market size

: 250 million
: 20%
: Tk. 60 million
: 40%
: Tk. 150 million

2.3 Analysis of competition

2.3.1 Competition
Current market of apple juice is calories, protein and carbohydrate based and it is very
competitive. Few numbers of foreign companies are operating in this market. Besides those
companies, many new companies are also to enter into the market. Among those companies
only a few holding the majority of the market share.
2.3.2 Strength, Weakness, Opportunity and Threats (SWOT Analysis of PRAN Apple Juice)2.3.2.1 Strength of the Product:
Brand loyalty and brand image.
Company reputation.
Acceptable price.
Dont use unhealthy chemicals.
First Bangladeshi branded apple juice.
2.3.2.2 Weakness of the Product:
This product is a late entrant in the market.
Lack of availability of raw material.
Low promotional budget.
Imported raw material.
2.3.2.3 Opportunity in the Market:

Ability to make a more convenient or efficient buying process.

To collect the more information and advice from customers.
Large market size.
Opportunity to increase can market coverage and retail penetration.
First Bangladeshi branded apple juice so every people interested buying it.

2.3.2.4 Threats of the product:

As we have some opportunities, we also have to consider some threats that may affect our
plan and operations as like as follows

New entrants to come into the market.

Foreign apple juices cover all market.
Well-built brand image of the competitions.
Extensive promotion and campaign by the competitions.

2.4 Objectives
2.4.1 Market Objective
Our objectives are divided into three categories as like following:
At the first year we will not earn any profit.
To increase sales next three year volume over by 50%.
To establish the PRAN Apple Juice expected in the market with 40% shares.
2.4.2 Financial Objective
To achieve no Net Sales Income (NSI) in first year.
To achieve Gross Margin of Tk. 10 million in second year.
To achieve EBIT of Tk. 2 million in second year.
2.4.3 Campaign Objective
To create high quality, positive and permanent brand image.
To get the maximum demand from the customers.
Our campaign will also force on the quality of the product.
We also increase customer awareness.

2.5 Promotional Strategy

Our advertising and promotions will pivot around four strategies. TV Advertisement, Radio
Advertisement, Outdoor Advertisement and press advertising.
TV Advertisement:
Television is the most effective to create brand assurance. All the premium brands of
apple juice dont advertising there product. But PRAN Apple Juice is a Bangladeshi brand so,
we advertising our product more impotently. BTV, RTV, NTV, CHANNEL I, ATN
BANGLA, CHANNEL-24, GTV are the most popular TV channel in Bangladesh. So, it is
obvious for us to choose the TV advertisement as the prime options according to the budget
and the promotional expenditure available for the quarter. We will prepare our media
planning. PRAN media planning will also include the selection of right program, at the right
time for time for afternoon and night group of viewers.

Radio Advertisement:
A huge number of our targeted Customers are rural based where radio coverage and
listeners are large in number. Some of the special sponsored programs will be developed
focusing the stories of our brand.
Outdoor Advertisement:
We plan to have an exciting, informative and actively managed outdoor
advertisement. There will painting all around the country.
Press Advertising:
We will undertake a considerable amount of press advertise our special promotion like
Customer offer and to enhance our brand image activity. More often our targeted potential
Customers go through daily newspapers; the more likely they are inspired to our brand when
they have a need for our type of new offer.
Trade Promotion:
A general phenomenon of the competitor activity is trade promotion. So to ensure the
width and depth of our products stock and also occupy more space the retail outlets all over
the country, we should adept some trade promotion.
Customer Promotion:
It is important to increase instant volume and make the customer loyal to the product.
Our running customer promotion is as following 500ml+1 PRAN candy and 1000ml+ 2
PRAN candy free.
Internet Promotion:
It is important to increase instant volume and make the customer loyal to the product.
Our target customer through internet promotion as give advertisement on facebook page, BD
jobs page, and sour me most popular daily & weekly online newspapers. A few conceptual
papers have offered frameworks to assess the compatibility of a product to online marketing
and sales. These frameworks that are based on product characteristics could help explain the
differences in the asymmetrical success of online retailing.
Information technology:
In modern technological innovation we also try to use IT formula. Which can make
directly and indirectly contribution in our production process. The use of information
technology (IT) as a competitive weapon has become a popular cliche; but there is still a
marked lack of understanding of the issues that determine the influence of information
technology on a particular organization and the processes that will allow a smooth
coordination of technology and corporate strategy. This article surveys the major efforts to
arrive at a relevant framework, and attempts to integrate them in a more comprehensive

viewpoint. The focus then turns to the major research issues in understanding the impact of
information technology on competitive strategy.

2.6 Distribution Strategy

The target and potential customer of PRAN Apple Juice live all parts of the country. So to
reach our product to each and every customer even at the rural level we will ensure the
following activities:
I.
Make the product available to maximum possible outlets
II.
Delivery the product at the right time
III.
Increase the depth of stock of each outlet

2.7 Action Program

January-March(2013)
The company will launch its product into the market. It will follow pull strategy. Urban this
strategy it will spend Tk. 15 lacs in advertising and customer promotion to build up customer
demand. The company will follow selective distribution to major divisional market in large
department stores (Dhaka, Chittagong, Rajshahi, Khulna, Barisal, Shylat).
April-June(2013)
The company will continue advertising and stop customer promotion. It will start to give
trade promotion that will influence the middlemen to carry this product.
July-September(2013)
It will continue advertising and trade promotion and start to arrange some events and
campaign program in divisional area like big well known outlets like art competition.
October-December(2013)
It will continue advertising and the company will take depending on the situation of sales and
competitor action.

2.8 Implementation & Control

For Control Purposes the plan also allows for month by month comparison of actual
versus projected sales and expenses. A contingency plan, attached has been developed for
implementation in the case of severs downward pricing pressure. Advertisements are vital in
our types of marketing. Salespeople will also be a fully trained in sale. Additional, every
quarter we will try to monitor all the problematic areas by performing customer satisfaction
surveys in limited areas. We also prefer to purchase retail store audit report, which would be
the key to our strategies advantage in having superior data on market share and prospects.

Conclusion:
We all know that, todays fast moving world respect the new, innovative ideas. To
keep the same pace with this situation our company had decided to launch an Apple Juice and
it has a bright future in its market. As the product is innovative, the consumers are going
product will be a strong product mix for our company. And once our Apple Juice will reach to
the hand of our targeted customers, we will be able to capture the most market shares.