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PRAN GROUP at a glance:
Since its inception in 1980, PRAN GROUP has grown up and became the largest fruit
and vegetable processor in Bangladesh. PRAN foods, which is a subsidiary of PRAN-RFL
group of companies, currently is the most well known household name among the millions of
people in Bangladesh and abroad. For maintaining high quality in PRANs production,
packaging and distribution, PRAN has earned 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 82 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 their
several factories into hygienically packed food and drinks products. The brand PRAN has
established itself in every category of food and beverage industry. Today, PRANs consumers
not only value PRAN for its authentic refreshing foods and beverages, but also for its mouth
watering quality confectionary products with high visual appeal and exciting texture. The
company intends to expand their presence to every corner of the world and strives to make
PRAN a truly international brand to be recognized globally.
PRAN has a wide range of product line which they are offering to their consumers.
PRAN is currently producing more than 200 food products under 10 different categories: (1)
Juices, (2) Drinks, (3) Mineral Water, (4) Bakery, (5) Carbonated beverages, (6) Snacks, (7)
Culinary, (8) Confectionary, (9) Biscuits & (10) Dairy.
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SWOT Analysis
Strength Opportunity
Weakness Threat
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SWOT ANALYSIS of PRAN GROUP:
The SWOT analysis comprises of the PRANs internal strength and weakness and
external opportunities and threats. SWOT analysis gives PRAN an insight of what they can do
in future and how they can compete with their existing competitors. This tool is very important
to identify the current position of the PRAN as a company relative to others, who are playing in
the same field and also used in the strategic analysis of the organization.
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Product quality variations: Sometimes product qualities & services
are not up to customer expectation.
Turnover and long term people issues: The biggest problem that
PRAN is facing these days is employee turnover, due to high work
pressure and less job satisfaction.
Large business size: Large size of business and workforce makes it
difficult to manage.
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High competition from other foreign and local companies: Due to
existence of many local and foreign imported foods and beverages in
local market, marketing of some products has become a bit difficult for
PRAN e.g. like why would people bother to buy PRAN juice as they
can buy SHEZAN or SLICE juice instead, while paying same price.
Increase competition for market share in the industry: Foods and
beverage industries are becoming more and more complex and
competitive day by day thus putting PRAN in a bit concern for their
market share.
Competitor can produce same products: One of the most common
ethical dilemmas in our local food and beverage market these days is
that people are less innovative and busy on producing same products by
copying from their competitors and then selling those products in a
cheaper price than those of their competitors on local market. Which is
indeed a big threat for PRAN as Bangladesh is full of price oriented
customer rather than quality oriented.
National and global political unrest: Hostile national and global
political environment has become unfavourable for businesses like
PRAN to expand and compete.
After analyzing the SWOT data, PRAN has to come up with best suitable and seasonally
variable hybrid mixture of business strategy, which they can use to maintain the same standard of
being a leader in food and beverage industries.
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Managerial Functions
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PLANNING:
A companys success comes with its way of planning its business. The most important things in
business planning are Mission, Vision and Long-term goals.
Mission: To generate employment and earn dignity & self respect for our
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ORGANIZING STRATEGY:
They try to design flexible authority to their company as it helps to create a friendly
environment. They follow the operational approach as they are production oriented and
dedicated to improving efficiency as well as cutting waste. They develop performance standard
on the basis of systematic observation and experimentation. They set a standard mark for the
employees and evaluate their performance. They follow the time and task duty, systematic
selection and training and also pay incentives for their better production. Sometimes they have to
go through the contingency approach for some specific situations. A responsibility network is
maintained by them for fulfilling their goals and objectives.
Organization styles and management principle that followed by PRAN are as follows:
PRAN obeys traditional hierarchy system with chain of commands that one person
reporting to his or her superior in line of authority with one person at top of the organization.
PRAN follows bureaucratic principle with equity in management.
PRAN maintains clear communication channel to have uniformity of flow of data and
information among managements and employees to avoid any distortions.
Large organizations like PRAN, decision-making power in minor or sometimes in major
issues vested on lower level management. Although they are under extreme supervision of
top management, thus follow decentralize authority principle. Although decisions that are
made by lower management need approval of top management to make it work in practical.
Flat organization structure with Broad span of control.
PRAN Departmentalize the organization into following departments:
I. Marketing.
II. Project management.
III. Manufacturing & Production unit.
IV. Finance.
V. Engineering & Product research.
VI. Customer relationship development.
With external Staff personnel for legal and other advice and assistance.
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PRANS UNIFIED MANAGEMENT SYSTEM
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LEADERSHIP STYLE:
PRAN follows a hybrid leadership style, which is a mixture of participative and free
rein leadership style, where top managers set objectives and employees being relatively free to
do whatever it takes to accomplish those objectives but most of the time they follow
democratically decision making procedure, thus participative. They give their employees the
authority to use their skills and talent to grow PRAN. They enable workers by giving them
education and tools they need to take decisions. Top managers of PRAN always set short term
objectives to their employees to fulfill and try to have a good communication among the workers
so that they evaluate the performances of the employees. The top managers of PRAN try to
become a role model to his subordinates and peers.
CONTROLLING FUNCTIONS:
MOTIVATION:
They always try to motivate individuals to pursue collective objectives through satisfying
needs and expectations, participation and influence processes. They treat employees as their core
asset. Since employee retention and increased productivity are important to us, they try to make
the employees satisfied through following ways:
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Incentive scheme for all employees.
Medical support.
PRAN scholarship scheme.
Transportation and Canteen facilities.
Recognition and Career growth.
Employee training and development.
Work environment.
They encourage their employees to take part in opportunities and programs that will add
to their aptitude to bring value and ensure further augmentation and the company.
They offer:
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Promotional Strategies
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Promotional strategy:
PRAN uses different sources to communicate their target market. PRAN products use
those sources to attract more customers, sources like Local Cable, Newspapers, and Billboard
and when they launch any scheme in products, they use pamphlets to aware their customers.
PRAN products use the Electronic Media to attract the customer and give full information
about their products through this. PRAN also uses vehicle writing method and posturing for
their product advertisements.
They also promote their product with the help of their packaging system. In packaging,
they mainly follow a strategy that the product will be packaged in an attractive form, that will
make consumers interest on their product. Its products are packaged in different levels in
variation of quantity. So people can afford it easily.
PRAN follows combination of both Push and pull strategies in their promotional
strategy.
Other type of promotion strategies those are used by PRAN are as follow:
1. Personal selling: Personal selling creates a good relationship to the dealers, distributors,
wholesalers, retailers and with customers. The company's sales people also play a vital
role in personal selling but trends these days is PRAN hires representatives for their
personal selling purpose. This way of promotion is not used by PRAN very frequently
other than when some new products have been introduced to the market.
2. Sales promotion: Sales promotion is another essential ingredient in marketing
campaigns. Such promotion consists of diverse collection of incentive tools, mostly short
term, designed to stimulate quicker and for greater purchase of particular products of
PRAN by customer. Some types of sales promotion are stated as under:
Coupons: This is the oldest, most widely used and most effective sales
promotion. It encourages repurchase. It is effective for consumers who are very
price sensitive. Newspapers are widely used to distribute coupons. FSI (Free
Standing Insert) through newspaper is also widely used. Coupons help company
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to achieve sale through PULL strategy and reduces the dependability on
retailers which is authentically followed by the PRAN Company.
Contest: This is a promotional tool where consumers compete for prizes or money
on the basis of skills or ability. Consumers have to fill up some forms for entry
into the competition and needs to show some proof of purchasing the product. It is
widely practiced in Bangladesh by newspaper companies. For example, during
World Cup Football and in the time of various traditional festivities of
Bangladesh we got to see such contests like this.
Sweepstakes: Here winners are determined purely by chance. It is a kind of game.
For example: Scratch card in PRAN mango juice. Like the following bullets:
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PRAN hopes that through their Promotional strategy plan they will increase the
competitive market share in foods and beverages industry. PRAN food products provided
superior value to its customer whom they promised through advertising. So the customers
are loyal to the brand and build long term relationships.
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CONCLUSION
From 1980 till now PRAN has maintained their accurate standards through improving quality,
customer satisfaction and developing product according to everyday market needs. Due to this
constant quality standard PRAN-RFL group of industries is now one of the most successful
industries in our country with wide variety of products. Their success is not only saturated within
country as they have started exporting their products abroad and gained a very good reputation
for high quality.
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References
Websites
Google (PRAN logo, sample reports, SWOT Analysis strategies etc.) n.d.
< http://www.google.com>
Business plans How to write a business report? 2009
< http://www.bplan.com>
PRAN food products (Our Company, Products) n.d.
< http://www.pranfoods.net>
PRAN ACML (About us) n.d.
<http://www.acmlpran.com>
Software
1. Business Plan Pro Software.
2. Business-in-a-Box.
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