Report on PRAN FOODS Ltd. Marketing Strategy Principles of Marketing
A
I
S
BBA 5th Batch Jagannath University 1/15/2013
JAGANNATH JAGA NNATH UNIVERSITY
Md. Babor Lecturer Department of AIS Jagannath University, University, Dhaka. Dhaka.
TANVIR AHMED -------------------------------- 104570 MD. AZMAL HUSSAIN ----------------------- 104642 MD. MESBAH UDDIN ------------------------- 104416 JOY CHOWDHURY----------------------------CHOWDHURY----------------------------- 104434 MD. SAZZAD HOSSAIN---------------------- 104462 RAJU AHMMED----------------------------------- 104558 ASHIK GHOSH------------------------------------- 104620 SHOEBA AFROZ --------------------------------- 104590 IMTAHINA HAQUE ---------------------------- 104630 ASMA SIDDIQUE -------------------------------- 104586 BBA 5 th Batch, Session 2009-10 –
Department of Accounting & Information Systems Jagannath University, University, Dhaka. Dhaka.
Table of Content
Page 2 of 22
SL NO.
C HAPTERS
P AGE
1
C OMPANY OVERVIEW
04
2
LIST OF M ARKET OFFERINGS
06
3
C OMPETITIVE REVIEW
08
4
P RACTICE OF M ARKETIN G C ONCEPTS
09
5
DISTRIBUTION REVIEW
10
4
LIST OF S TRATEGIC B USINESS U NITS (SBU S )
11
5
E VALUATION OF SBU S BY BCG M ATRIX
11
6
I MPLEMENTATION OF P RODUCT -M ARKET E XPAN SION G RID S TRATEGIES
13
7
C OMPANY S S TRATEGIES FOR S TRATEGIC F ORMULATION
15
8
S TRATEGIC ALLIANCES OF THE ORGANIZATION
16
9
P RODUCT P OSITIONING S TRATEGIES
18
10
P RICING S TRATEGY
18
11
S OCIAL ACTIVITIES
19
12
SWOT ANALYSIS
20
13
OBJECTIVES
22
13
C ONCLUSION
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
250ml
1 dozen
450.00
250g
1 jar
145.00
250g
1 jar
155.00
Juice 04
PRAN Frooto Mango Juice
05
PRAN Spice Powder Chili
06
PRAN Spice Powder 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
1000ml
1 bottle
245.00
250g
1 jar
150.00
Jam 17
PRAN Tomato Ketchup
18
PRAN Spice Powder Turmeric
19
PRAN Hot Tomato Sauce
1000ml
1 bottle
295.00
20
PRAN Garlic Pickle
300g
1 jar
180.00
21
PRAN Spice Powder Coriander
200g
1 jar
85.00
22
PRAN Mango Pickle
300g
1 jar
190.00
23
PRAN Milk Wafer
----
12 pcs
120.00
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COMPETITIVE REVIEW:
The Emergence of new product, marked by PRAN group, manufactures and carriers has pressured industry participants to continually add features and cut prices. Within a very short time PRAN would start exporting to Papua New Guinea, East Timor, Brunei, Mauritius Reunion, and Algeria, among other countries. At present it is exporting to 82 countries all over the world and it has been conferred the most prestigious export trophy for the last six consecutive years for its export activities. Due to gradual development of the quantity of PRAN products and because of better marketing and distribution initiatives, it is creating hype among other countries. Competition from specialized products for drinks such ac Acme, 7up, are major factors as well. Key competitions include:
*C OCA -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. *S EJAN
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. *F IRM
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 cow‟s 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
marketing concepts
Marketing Concepts
production
product
selling
marketing
social marketing
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PRAN Group uses two of this concept for their marketing. PRODUCTION CONCEPT: They are follow production concept. Because their
products are widely available and highly affordable .They got large production and effective distribution Channel. Their Price of the products remains relatively low and they are available almost everywhere. PRAN candy, PRAN juice, PRAN chanachur, etc are highly available and affordable in Bangladesh. MARKETING CONCEPT: They first identify needs and wants of the target markets
and delivering the desired satisfactions better than competitors do. PRAN group identify Bangladeshi people needs and wants and produce PRAN Gura masala, PRAN Juice, PRAN candy etc.
DISTRIBUTION REVIEW: In this section marketers list the most important channels provide an overview of each channel arrangement and mention any new developments or trends. PRAN products will be distributed through a network of retailers in the top high sellable markets. Among the most important channel partners being contracted are:
Firstly if the product is made, than it is shown in the wave page. This is like other countries. Its price like all information will include. For in this countries sellable product means main packing product are divided into some group. Each group has five or six members and it has only one boss. The boss maintains all things. He or she then observes and declares that what place the products will go. It there is lack of product boss will serve. 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 success ful SBUs requiring less investment to maintain market share. Q UESTION
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 SBU‟s
Produce cash
Example; PRAN Spice Powder Turmeric, Q UESTION MARKS:
High growth, low share
Build into Stars or phase out
Require cash to hold market share
Example: Maggie Noodles
DOGS :
Low growth & share Low profit potential
Example; Maxx Cola (PET Bottle).
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IMPLEMENTATION OF PRODUCT-MARKET EXPANSION GRID STRATEGIES
Market Penetration
Diversification
Market Expansion Grid Strategies
Product Developoment
Market Development
There are
Product-Market Expansion Grid Strategies.
iv. 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 compan y‟s current products and current markets. PRAN Group follows this products market expansion grid. When they start business then they produce few products such as Juice, candy etc and sold it in the country. Now they are producing many products and selling in the country and exporting outside the country.
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COMPANY S STRATEGIES FOR STRATEGIC FORMULATION ’
Strategic Formulation
Overall cost leadership
There are
Differentiation
Focus
Strategic Formulations.
iii. 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.
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DIFFERENTIATION : When
the
business
concentrate
on
getting
superior
performance in an important customer benefit area valued by a large part of the market. The firm seeks for quality leadership. PRAN Group does not follow Differentiation Strategic Formulation. FOCUS: When a business focuses on one or more narrow market segments. And
for attracting the customers it may use either cost leadership or differentiation. PRAN Group does not follow Focus Strategic Formulation.
STRATEGIC ALLIANCES OF THE ORGANIZATION
Strategic Alliances of the Organization
Product or service Alliances
Promotional Alliances
Logistics Alliances
Pricing collaborations
Page 16 of 22
There are
Strategic Alliance of the organization.
iv.
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 company‟s 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
company‟s 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 PRAN ‟s 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 PRAN ‟s case because BANGLADESH is country with low per capita income ($ 1000) money is a factor to the consumers in BANGLADESH. Also the fact that there are a lot of high profiled brands, which are already quite competitively priced, makes penetration pricing less appropriate
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SOCIAL ACTIVITIES The idea of corporate social responsibility is being widely promoted all over and rightly so. Here is a corporate whose corporate mission embodies in itself corporate social responsibilities with the additional compulsion to make profits in order to thrive and grow which it must to fulfill its corporate social responsibilities in greater measure as time passes. PRAN has a bifocal objective of making profits through the fulfillment of corporate social responsibilities. PRAN-RFL is a concept: away to fight poverty & hunger in Bangladesh in the shortest possible time through employment generation. PRAN Signifies investment in agro processing: creating demands for farm produce which create jobs in rural areas also preventing urban migration. PRAN ‟ s aim is to add value to agricultural harvest. Bangladesh‟s comparative advantage lies in creating a competitive edge in value added agricultural products. This is what PRAN Stands for. The Group‟s major achievement has been to try to consolidate fragmented land holdings and to organize farmers into „contract growers‟ of specific crops for consumption in PRAN ‟s 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 PRAN ‟ s 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).
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OBJECTIVES MARKETING OBJECTIVES:
•Maintain positive steady growth each month . •Increase market penetration every quarter. •Generate increased brand awareness quantified by reactions/feedback of customers at the trade shows.
FINANCIAL OBJECTIVES :
•Decrease customer acquisition costs by 1% a quarter. •Continue to decrease variable costs through efficiencies gained from experience. •Increase profit margins by 0.5% per quarter.
Conclusion: PRAN group of industries are now one of the most successful industries in our country. They are trying to increase their business line and their own brand. PRAN group also trying to beat the competitive market by doing different types of businesses . In our study we found that they will go far way in business and they will be no. 1 business group in our country.
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