Report on PRAN FOODS

Ltd. Marketing Strategy

Principles of Marketing

A I S

BBA 5th Batch

Jagannath University
1/15/2013
 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 5th Batch, Session 2009-10

Department of Accounting & Information Systems

Jagannath University, Dhaka.

Table of Content

Page 2 of 22
SL NO. CHAPTERS PAGE

1 COMPANY OVERVIEW 04

2 LIST OF MARKET O FFERINGS 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 COMPANY S 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
Page 3 of 22
Page 4 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.

Page 5 of 22
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 1000ml 1 bottle 115.00
Juice
04 PRAN Frooto Mango 250ml 1 dozen 450.00
Juice
05 PRAN Spice Powder 250g 1 jar 145.00
Chili
06 PRAN Spice Powder 250g 1 jar 155.00
Turmeric

Page 6 of 22
07 PRAN Tomato Sauce 900g 1 bottle 210.00
08 PRAN Mango Jam 350g 1 bottle 190.00
09 PRAN Chinigura 1 kg Vacuum Pac 180.00
Automatic Rice
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 5 kg 1 packet 890.00
Rice
15 PRAN Chanachur 350g 1 packet 85.00
16 PRAN Mixed Fruits 350g 1 bottle 140.00
Jam
17 PRAN Tomato 1000ml 1 bottle 245.00
Ketchup
18 PRAN Spice Powder 250g 1 jar 150.00
Turmeric
19 1000ml 1 bottle 295.00
PRAN Hot Tomato
Sauce
20 300g 1 jar 180.00
PRAN Garlic Pickle
21 200g 1 jar 85.00
PRAN Spice Powder
Coriander
22 300g 1 jar 190.00
PRAN Mango Pickle
23 ---- 12 pcs 120.00
PRAN Milk Wafer

Page 7 of 22
 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.

Page 8 of 22
*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

social
production product selling marketing
marketing

Page 9 of 22
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.

Page 10 of 22
 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

Page 11 of 22
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).

Page 12 of 22
 IMPLEMENTATION OF PRODUCT-MARKET EXPANSION
GRID STRATEGIES

Market
Penetration

Market
Diversification
Expansion Product
Grid Developoment

Strategies

Market
Development

There are four Product-Market Expansion Grid Strategies.

i. Market penetration

ii. Market development

iii. Product development

iv. Diversification

Page 13 of 22
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.

Page 14 of 22
COMPANYS STRATEGIES FOR STRATEGIC FORMULATION

Strategic
Formulation

Overall cost
Differentiation Focus
leadership

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.

Page 15 of 22
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

Promotional
Product or Logistics Pricing
Alliances
service Alliances Alliances collaborations

Page 16 of 22
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.

Page 17 of 22
 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

Page 18 of 22
 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

Page 19 of 22
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

Page 20 of 22
 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).

Page 21 of 22
 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.

Page 22 of 22