Report on PRAN FOODS Ltd. Marketing Strategy

Report on PRAN FOODS Ltd. Marketing StrategyPrinciples of Marketing BBA 5th BatchJagannath University1/15/2013

JAGANNATH UNIVERSITY Department of Accounting & Information Systems

Submitted to:Md. BaborLecturerDepartment of AISJagannath University, Dhaka.

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

BBA 5th Batch, Session 2009-10Department of Accounting & Information Systems Jagannath University, Dhaka.Table of ContentSL NO. ChaptersPage

1Company Overview04

2List of Market Offerings06

3Competitive Review08

4Practice of Marketing Concepts09

5Distribution Review10

4List of Strategic Business Units (SBU s)11

5Evaluation of SBU s by BCG Matrix11

6Implementation of Product-Market Expansion Grid Strategies13

7Companys Strategies for Strategic Formulation15

8Strategic Alliances of the Organization16

9Product Positioning Strategies18

10Pricing Strategy18

11Social Activities 19

12SWOT Analysis20

13Objectives22

13Conclusion

22

Company Overview

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.

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 OfferingsListProductsSizeAmountPrice/TK

01PRAN Orange Jellymedium1 pcs180.00

02PRAN Chili Pickle300g1 jar170.00

03PRAN Frooto Orange Juice1000ml1 bottle115.00

04PRAN Frooto Mango Juice 250ml1 dozen450.00

05PRAN Spice Powder Chili 250g1 jar145.00

06PRAN Spice Powder Turmeric 250g1 jar155.00

07PRAN Tomato Sauce 900g1 bottle210.00

08PRAN Mango Jam350g1 bottle190.00

09PRAN Chinigura Automatic Rice1 kgVacuum Pac180.00

10PRAN Minikate Rice5 kg1 packet450.00

11PRAN Nazirshail Rice5 kg1 packet450.00

12PRAN Olive Pickle400g1 bottle170.00

13PRAN White Vinegar300ml1 bottle85.00

14PRAN Kataribhog Rice5 kg1 packet890.00

15PRAN Chanachur350g1 packet85.00

16PRAN Mixed Fruits Jam350g1 bottle140.00

17PRAN Tomato Ketchup1000ml1 bottle245.00

18PRAN Spice Powder Turmeric250g1 jar150.00

19PRAN Hot Tomato Sauce 1000ml1 bottle295.00

20PRAN Garlic Pickle300g1 jar180.00

21PRANHYPERLINK "http://www.muktobazaar.com/index.php?s=8&category_id=28&item_id=1447" Spice Powder Coriander200g1 jar85.00

22PRAN Mango Pickle300g1 jar190.00

23PRAN Milk Wafer----12 pcs120.00

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.

*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 ConceptsThere are five marketing concepts

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. 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 growExample; PRAN Juice, PRAN Candy etcCash Cows: Low growth, high share Established, successful SBUs Produce cashExample; PRAN Spice Powder Turmeric, Question Marks: High growth, low share Build into Stars or phase out Require cash to hold market shareExample: Maggie Noodles

Dogs: Low growth & share Low profit potentialExample; Maxx Cola (PET Bottle).

Implementation of Product-Market Expansion Grid Strategies

There are four Product-Market Expansion Grid Strategies. i. Market penetrationii. Market developmentiii. Product developmentiv. DiversificationMarket 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.

Companys Strategies for Strategic Formulation

There are three Strategic Formulations.i. Overall cost leadership.ii. Differentiationiii. FocusOverall 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.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

There are four Strategic Alliance of the organization.i. Product or Service Alliancesii. Promotional Alliancesiii. Logistics Alliancesiv. 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.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

Social ActivitiesThe 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.PRANhas a bifocal objective of making profits through the fulfillment of corporate social responsibilities.

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

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

SWOT AnalysisStrength: 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 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 facilityThreats: Direct competitor (Arong, Bd food) Stricter health and technical standards MNC company. Government regulation. Selective Low price from competitor. Wide Varity (BD FOOD).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 2 of 22